Answer:
Net Income under absorption costing =$1,700
Explanation:
<em>Absorption costing is a method of costing where production units and inventories are value at the full cost per unit. Here, fixed overheads are charged to all units produced using an overhead absorption rate</em>
<em>The full cost per unit = D.mat cost + D.labour cost + Variable overheads+ Fixed overheads</em>
Overhead absorption rate = Overhead for the period/
Net Income = (1200 × $10) - (1200× $6.50) - 2,500
= $1,700
Net Income under absorption costing =$1,700
Answer:
$4,350
Explanation:
Based on the amortization period, the duration of the patent would be 20 years or 10 years whichever is lower. So, in this question, we consider the useful life of 10 years
The computation is shown below:
= (Legal costs associated with the patent + unamortized research expenditures) ÷ useful life in months × given months
= ($43,000 + $15,000) ÷ 120 months × 9 months
= $58,000 ÷ 120 months × 9 months
= $4,350
The nine months is calculated from April to December month. We assume that the books are closed on December month
Answer:
$59,400 favorable
Explanation:
The computation of the direct material quantity variance is shown below;
As we know that
Direct material quantity variance is
= Standard Price × (Standard Quantity - Actual Quantity)
= $9 × (16,400 pounds - 9,800 pounds)
= $9 × 6,600 pounds
= $59,400 favorable
The favorable variance indicates that the standard quantity is more than the actual quantity and the same is to be considered
Answer:
Shortage
Explanation:
Then it is a situation of shortage because when there is more demand but supply is less then the difference between the demand and supply is called the shortage. Thus, excess demand over supply creates the shortage in the market.
Explanation:
International accounting (IAS) includes accounting standards and concepts of various countries. MNC's which operates in various countries need to follow the local accounting procedure and then need to compile the data so the overall performance of the company, can be determined. This also involves different currencies making the work difficult.
Domestic accounting (DAS) - every country have their own accounting standards and methods which must be followed while preparing books of accounts and are called domestic accounting. It is followed by companies which deal in only domestic business. Domestic accounting is done in home currency and is easier than international accounting.
