Answer:
The correct answer is letter "B": franchising.
Explanation:
A Franchise is a business where one person, the <em>franchisee</em>, gains access to the proprietary knowledge, processes, and trademarks of a <em>franchisor</em>. In return for a royalty, the franchisee acquires the right to market a product or service under an existing brand name.
The customer is already familiar with the brand, so there is no need to invest additional resources to promote the product.
Answer and Explanation:
The journal entry to close the manufacturing overhead account is shown below:
Given that
There is applied overhead of $31,500
And, the budgeted overhead is
= 2,000 × $15
= $30,000
As we can see that the budgeted overhead would be lower than the applied overhead so this is an under applied overhead
Cost of goods sold Dr $1,500 ($31,500 - $30,000)
To factory overhead $1,500
(Being the closing of overhead is recorded)
Answer:
Dr Rent revenue
Cr Unearned rent revenue, $4,500
Explanation:
Preparation of XYZ Company Journal entry
Since we were told that the Company received the amount of $18,000 on April 1, 2020 for a one year's rent paid in advance in which the transaction has a credit to a nominal account, this means we have to record the transaction by Debiting Rent revenue with 4,500 and Crediting Unearned rent revenue, with the same amount of $4,500 calculated as
(3/12 x $18,000 ).
Dr Rent revenue
Cr Unearned rent revenue, $4,500
(3/12 x $18,000 )
Answer:
$76,000
Explanation:
If we are going to prepare a flexible budget we need to calculate how much Seaworthy should have spent in labor costs in order to produce 2,000 units:
labor cost = 2 hours per unit x $19 per hour x 2,000 units = $76,000
If we compare the flexible budget to Seaworthy's actual costs, we will find an unfavorable variance of $250,000 (=$326,000 - $76,000). Obviously something went wrong with Seaworthy's production.
