Answer:
$150
Explanation:
The Warranty Expense account is a liability account and it must include all the estimate costs associated to the merchandise sold:
100 radios were sold and the company estimates to replace 5% or them = 100 x 5% = 5 radios
the cost of replacing 5 radios = 5 radios x $30 per radio = $150
Answer:
Answer is option d, i.e. All of the above are correct.
Explanation:
All the given statements are correct.
Markets are considered to be the best way to organize economic activity, and this can be done by studying the market trends and various demands of the customers. This would help in assessing the estimation of supply that any organization would like to deliver to its respective customers. Similarly, the intervention of government and legal aspects are also important in maintaining both, the trade between the companies of different countries, and also if any organization fails to produce and deliver the required result.
Answer: $3,875 Favorable
Explanation: We can compute direct labor efficiency variance by using following formula :-
Direct labor efficiency variance = standard rate ( actual hours - standard hours)
where,
standard hours = 5,500units * 0.5 hour = 2750 hours
actual hours = 3,000 hours
standard rate = $15.5
putting the values into equation we get :-
Direct labor efficiency variance = $15.5 ( 3,000 - 2750)
= $3,875 Favorable
