Answer:
$363,500
Explanation:
Gross profit = Revenue - Cost of Goods Sold.
In the case
Revenue = $578,000.
The Cost of Goods Sold: COGS
Inventory turn over = COGS/ Average turnover
Average turnover = Opening stock + closing stock/2
In this case Opening stock + Closing stock = $110,000
Average turnover = $110,000 /2 =$55,000
Therefore:
3.9 = COGS/$55,000
COGS = $55,000 x 3.9
COGS =$214,500
Gross profit = $578,000 - $214,500
Gross profit = $363,500
Answer:
1/Oct : Cash (Dr.) $8,660
Accounts Receivable (Cr.) $8,660
10/Oct : Equipment & Supplies (Dr.) $9,660
Notes Payable (Cr.) $9,660
20/Oct : Accounts Receivable (Dr.) $2,640
Service Revenue (Cr.) $2,640
Explanation:
Debits $16,960
Cash 6,600
Accounts Receivable 1,840
Supplies 1,840
Equipment 4,660
Dividend 2,020
Credits : $16960
Accounts Payable 4,660
Notes Payable 9,660
Service Revenue 2,640
Answer and Explanation:
The preparation of the First stage allocation of overhead costs to the activity cost pools is presented below
Particulars Making awnings Job Support Other Total
Production Overhead $67,500 $60,000 $22,500 $150,000
Office Expenses $8,000 $65,000 $27,000 $100,000
The production overhead is allocated in 45% 40%, 15% and 100%
And,
The office expenses is allocated in 8%, 65%, 27% and 100%
The same is shown above
Answer:
Andover's variable-overhead efficiency variance is $-42,000 Unfavourable
Explanation:
According to the given data we have the following:
Standard overhead rate=$ 5.60 per hour
Actual Hours=110,000 hours
Standard hours=47,000 units x 2.5 hours per unit
=117,500 hours
Therefore, in order to calculate the Andover's variable-overhead efficiency variance we would have to use the following formula:
Variable Overhead efficiency variance=Standard overhead rate x (Actual hours - standard hours)
=$ 5.60 x (110,000 - 117,500)
=$-42,000 Unfavourable