The fixed factory overhead volume variance is $400 (unfavorable)
solution
Fixed Overhead Volume Variance = Applied Fixed Overhead – Budgeted Fixed Overhead
Applied Fixed Overhead = 4,000 units ×2.5 hrs per unit×$0.80 = $8000
and
Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400
Fixed Overhead Volume Variance = $8000- $8400 = $400 (unfavorable)
Answer:
tractor 35,127,42 debit
note payable 32,172.42 credit
cash 3,000 credit
--to record issuance--
Note payale end of 2018
39,584.19
note payables at Dec 31th
Note payable at the end of 2019
39,584.19
note payables at Dec 31th
Explanation:
As the note has zero.interest we discount the note to get the present value:
Maturity $44,000.0000
time 3.00
rate 0.11
PV 32,172.42
The difference will be a discount that will acrrue interest overtime.
the truck will enter the accounting net of interest charges thus:
3,000 downpayment + 32,127.42 = 35,127.42
interest will be: 32,127.42 x 1.11 = 32,127.41
<u><em>Then, do the same for 2019</em></u>
(32,127.41 + 3,532.0162) x 1.11 = 39,584.19