Answer:
$666 Favorable
Explanation:
The computation of Activity variance is shown below:-
For computing the activity variance first we need to compute the Planning budget and flexible budget
Planning budget = $35,900 + $11.10 × 3,650
= $76,415
Flexible budget = $35,900 + $11.10 × 3,590
= $75,749
Activity variable = Activity variance - Flexible budget
= $76,415 - $75,749
= $666 Favorable
Answer:
The correct answer is D. It is not correct that Holt and Collins will not have the chance to present their cases.
Explanation:
Arbitration is an alternative means of conflict resolution, in which an impartial third party, the arbitrator, is selected so that after hearing the cases of the parties, make a decision applying both the law and the ethics and morals. Thus, it is avoided to reach the court using an alternative and quick resolution route, which seeks to save time and money for the parties. The arbitrator's decision will be called an award, and it will be binding on the parties just as the judges' sentences are in trials.
Answer:
1. $8.25
2. $313,500
Explanation:
Given that,
Variable overhead cost per direct labor-hour = $2.00
Total fixed overhead cost per year = $250,000
Budgeted standard direct labor-hours (denominator level of activity) = 40,000
Actual direct labor-hours = 39,000
Standard direct labor-hours allowed for the actual output = 38,000
1. Total overhead cost at denominator level of activity:
= Total fixed overhead + Total variable overhead
= $250,000 + (40,000 × $2.00
)
= $250,000 + $80,000
= $330,000
Predetermined overhead rate:
= Total overhead cost at denominator level of activity ÷ Budgeted standard direct labor-hours
= $330,000 ÷ 40,000
= $8.25
2. Overhead applied:
= Standard direct labor-hours allowed for the actual output × Predetermined overhead rate
= 38,000 × $8.25
= $313,500
Answer:
By the end of Year 3, the entire $2,500,000 of revenues should be recognized.
I don´t have enough information about cost incurred p/year
Explanation:
In this contract, revenue is recognized over time based on progress toward completion. The progress toward completion is measured using the input method based on costs incurred.
The construction was completed in Year 3.
By the end of Year 3, the entire $2,500,000 of revenues should be recognized.