Answer:
Variable overhead rate variance = $ 875 favorable
Variable overhead efficiency variance = $ 4,185 favorable
Variable overhead cost variance = $5,060 Favorable
Explanation:
Standard hours = 1 hr x 2600 units = 2600 hours
Standard rate = $3.10
Actual hours = 1,250 hours
Actual rate = $2.40
Variable overhead rate variance = ( Standard Rate - Actual Rate ) x Actual Hrs
= ( $ 3.10 - $2.40 ) x 1250 Hrs
= $0.7 x 1250
=$ 875 favorable
Variable overhead efficiency variance = (Standard hours - Actual hours) x Standard Rate
= (2600 - 1250 ) x $ 3.10
= $ 4,185 favorable
Variable overhead spending variance = Variable overhead rate variance + Variable overhead efficiency variance
= $875 + $4,185
= $ 5,060 favorable
Variable overhead cost variance = Standard cost - Actual Cost
= (2600 X 3.10) - (1250 X 2.40) = 8,060 - 3000
= $5,060 Favorable
Answer:
Income tax expense $1,000,000 Dr.
Deferred tax liability $7,750,000 Dr.
To income tax payable $8,750,000 Cr.
Explanation:
Given the following :
Pretax accounting income = $66 mollion
TAXABLE INCOME = $35 million
Tax rate = 25%
Income tax payable:
Income tax rate × taxable income
25% × 35,000,000
= $8,750,000
Deferred tax liability :
(pretax income - taxable income) × tax rate
($66 - $35) million × 25%
$31,000,000 × 25%
= $7,750,000
Income tax expense :
Deferred tax + income tax payable
$(8,750,000 - 7,750,000)
= $1,000,000
Answer: Risk averse
Explanation:
A person with a diminishing marginal utility of income will derive less utility from income as income increases. A risk averse person is one who would rather avoid risk but still prefers a high income.
Such a person will have a diminishing marginal utility in income because income increases more when there is more risk. A risk averse person does not want that risk and so will go for a lower income which means that they don't want more income as it is riskier to them.
<span>A: to set interest rates</span>
Answer:
Nothing
Explanation:
Automatic premium loans provision is a benefit which is provided to the clients who already have a life insurance policy. It helps them to pay the premium from any cash value which is due. This provision is structured to help the clients and normally insurance companies charge no additional premium cost. It helps to prevent lapses in the policies.
