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erastovalidia [21]
3 years ago
15

In addition to other costs, Grosha Telephone Company planned to incur $600,000 of fixed manufacturing overhead in making 500,000

telephones. Grosha actually produced 508,000 telephones, incurring actual overhead costs of $599,400. Grosha establishes its predetermined overhead rate based on the planned volume of production (expected number of telephones).RequiredA. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)B. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)C. Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)a. Predetermined overhead rate per unitb. Total fixed cost spending variance c. Total fixed cost volume variance
Business
1 answer:
Whitepunk [10]3 years ago
4 0

Answer:

Please find the detailed answer as follows:

Explanation:

a) Predetermined overhead rate = Estimated manufacturing overhead cost   / Estimated total units in the allocation based

Predetermined overhead rate = 600,000 / 500,000 = 1.2 perunit

b) Total fixed cost spending variance = Actual fixed overhead cost - Estimated overhead cost

                                                         = 599,400 - 600,000

                                                         = 600 (F) Favourable

c) Total fixed cost volume variance = Actual fixed overheads - Estimated fixed overheads

  Actual fixed overheads = Estimated fixed overhead rate * Actual units produced

                                        = 1.2 * 508,000 = $609,600

Total fixed cost volume variance =$ 609,600 - $600,000 = $9600 (F) Favourable

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Answer:

S type corporation is difficult to register as it has a particular eligibility restriction, which many businesses are unable to meet.

Explanation:

There are specific pre-requisites before a company may apply as an S corporation

  • It implies that corporation shareholders must be U.S. residents only who directly own the shares.
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The limited stock options, no foreign investment challenges and limitation of maximum shareholders create a barrier to open S type corporation. So the answer is S type corporation is difficult to register as it has a particular eligibility restriction, which many businesses are unable to meet.

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steposvetlana [31]
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5 0
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Suppose that you invest $100 today in a risk-free investment and let the 6 percent annual interest rate compound. What will be t
Kipish [7]

Solution :

It is given that :

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Time of investment , t = 6 years

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Therefore, after 6 years the investment of $ 100 will give an amount of $ 141.

3 0
3 years ago
if the interest rate on a savings account is 0.018%, approximately how much money do you need to keep in this account for 1 year
scZoUnD [109]
A = $9.99, the amount needed after 1 year 
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Let P =  required balance at the beginning of the year.
Then
P(1+ \frac{r}{n} )^{nt} = A
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Answer: $9.99

7 0
3 years ago
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