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3 years ago

Early in 2016, the Excalibur Company began developing a new software package to be marketed.

Business

1 answer:

Varvara68 [4.7K]3 years ago

7 0

Answer:

Explanation:

According to IAS 38 , all expenses incurred on software or other intangible assets development is expensed until technological feasibility is attained.

This means that of the $6 million cost , $ million will be charged to the income statement as expenses and 2 million capitalized

Journal entry

Software

Dr Cr

$2 ,000,000

Development cost

Dr Cr

$2 ,000,000

2) Amortization

percentage of revenue formula = 3/10*2000000

$600,000

Straight line = 1/5*2000000= $400,000

Using percentage of revenue method

3)Jan 1 - $ 2,000,000

Amortization ( $ 600,000)

December 31 net value $1,400,000

Using the straight line method

Jan 1 $2,000,000

Amortization ($400,000)

December 31 net value $1,600,000

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A group of workers normally consists of 60 men, 30 women and 20 boys. They are paid at standard hourly rates as under:

dexar [7]

Labour cost variance = R.s 33,000 (F)
Labour rate variance = R.s 33000 (F)
Labour efficiency variance = 0

Given:

Standard Number of men = 60

Standard Number of women = 30

Standard Number of boys = 20

Standard hour rate for men = R.s 280

Standard hour rate for women = R.s 160

Standard hour rate for boys = R.s 140

Weekly working hour = 40 hours

Expected unit = 5,000 units

Number of men in march week = 70

Number of women in march week = 25

Number of boy in march week = 25

Actual wage for men = R.s 270

Actual wage for women = R.s 165

Actual wage for boys = R.s 130

Actual units = 4,500 units

Find:

Labour cost variance
Labour rate variance
Labour efficiency variance

Computation:

Labour cost variance = [SC for AO] - AC

Labour cost variance = [( 70 × 280) + (25 × 160) + (25 × 140)] - [(70 × 270) + (25 × 165) + (25 × 130)] × 40

Labour cost variance = (27,100 - 26,275 ) × 40

Labour cost variance = R.s 33,000 (F)

Labour rate variance = (SR - AR) × AH worked

Labour rate variance = [(280 - 270)70 + (160 - 165)25 + (140 - 130)25]40

Labour rate variance = [700 - 125 + 250]40

Labour rate variance = [825]40

Labour rate variance = R.s 33000 (F)

Labour efficiency variance = (SH allowed - AH worked)SR

Labour efficiency variance = (0 - 0)SR

Labour efficiency variance = 0

Learn more;

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5 0

3 years ago

The IMF has: a. helped support some weaker European countries during the recent financial crisis. b. been very helpful in monito

Ann [662]

Answer:

The correct answer is letter "A": helped support some weaker European countries during the recent financial crisis.

Explanation:

The International Monetary Fund (IMF) is a U.S. based part of the United Nations (UN) agency that promotes international economic prosperity by cooperating with least-favored nations to reduce their unemployment rates. The fund has 189 members and had a vital contribution in the Western European economic recovery after their recent financial crisis as a consequence of unemployment, drop of purchasing power and public debt.

5 0

3 years ago

Says that the quantity demanded of a good folls when the price of 1 point the good rises.

Vedmedyk [2.9K]

Answer:

B) The Law of Demand

Explanation:

The correlation between the volume demanded, and the price of a good is explained by demand law. As per this law, price and the quantity demanded have an indirect or inverse relationship. An increase or decrease in price results in quantity demanded moving in the opposite direction.

Should the prices of a product or service increase, its demand falls.

8 0

3 years ago

When the dollar "falls" compared to other currencies, which group benefits the most?

AURORKA [14]

<span>Foreign companies and investors benefit the most from a falling dollar. When the amount that a dollar can buy depreciates, it becomes more expensive, relatively, to purchase foreign goods. In addition and because of this depreciation, it also becomes relatively less expensive for foreign investors to purchase domestic goods, which means that foreign companies can buy more from US-based businesses.</span>

3 0

4 years ago

Read 2 more answers

Following is the information about Eclypso Company's two products: Product X Product Y Unit selling price $10.00 $10.00 Unit var

xz_007 [3.2K]

Answer:

50,000 units are required to break even

Explanation:

Eclypso Company

Product X Product Y

Unit selling price $10.00 $10.00

Less

Unit variable costs:

Manufacturing $ 6.00 $ 7.00

Selling 1.00 1.00

Total variable costs $ 7.00 $ 8.00

Contribution Margin per unit 3 2

Monthly fixed costs are as follows:

Manufacturing $ 90,000

Selling and administrative 50,000

Total fixed costs $140,000

Weighted Contribution Margin per unit = ($3 * 80% + $ 2 * 20%)= 2.4+ 0.4=

$ 2.8

Combined Break Even Volume = Fixed Costs/ Weighted Contribution Margin Per unit

Combined Break Even Volume = $ 140,000/ 2.8=50,000

5 0

3 years ago