Answer:
Debit Delivery Expense; credit Cash.
Explanation:
The journal entry to record the freight expenses should be:
Dr Delivery (freight) expense XX
Cr Cash XX
All expenses have a debit balance, and when they increase, they must be debited.
All assets have a debit balance, and when they decrease, they must be credited.
Answer:
By using the EOQ model, ray should order 22.8 units or 23 units each time
Explanation:
Solution
Recall that:
Ray annual estimated demand for this model is = 1,050 units
The cost of one unit carry is =$105
He estimated each order costs to place = $26
Now,
The EOQ model= (2*annual demand*ordering cost/holding cost per unit per year)^.5
Thus,
EOQ = (2*1050*26/105)^.5
EOQ = 22.8 units or 23 units
Answer:
D. $ 16 comma 862.50 unfavorable
Explanation:
The computation of the direct labor efficiency variance is shown below:
Direct labor efficiency variance is
= Standard rate × (Actual hours - standard hours)
= $9.50 × (3,000 direct labor hours - 4,900 units × 0.25 hours)
= $9.50 × (3,000 direct labor hours - 1,225 direct labor hours)
= $16,862.50 unfavorable
As actual hours is more than the standard hours which reflects the unfavorable variance and if actual hours is less than the standard hours then it would leads to favorable variance