a. Standard labor-hours is 7920 hours.
b. Standard labor cost allowed is $42,768.
c. The labor spending variance is $1588(U).
d. The labor rate variance is $1706 and the labor efficiency variance $3294(U).
e. The variable overhead rate is $5971(U) and efficiency variances for the month $5580(U).
<u>Explanation:</u>
a)Standars hours(SH) allowed to make 19800 jogging mates
=SH per unit 
19800
=(24/60)*19800
=7920 hours
24/60 has been taken to convert minutes into hours.
b)Standard Labor Cost (SC) of 19800 jogging mates
=$42,768
c)Labour Spending Variance
=$1588(U)
d)Labor Rate Variance
=$1706
Actual Hours(AH) * Actual Rate per hour(AR)= Actual Cost(AC)
Labor Efficiency Variance
=$3294(U)
e) Variable overhead rate variance = Actual hours worked (Standard overhead rate - Actual overhead rate)
= 8530 (4.5 - 5.20)
= $5971(U)
Actual overhead rate = $44,356 / 8530 = 5.20
Variable overhead efficiency variance = Standard overhead rate (Standard hours - Actual hours)
= 4.50 (7290 - 8530)
= $5580(U).
Answer:
The amount Laramie should record the purchase of land is <u>$6.2 million</u>.
Explanation:
The costs of a fixed asset refer to the purchase price and other relevant costs which are incurred in order to the location and working condition required to operate the fixed asset in way that it is intended.
The other relevant costs that are added to the purchase price to arrive at the cost of the fixed assets include professional fees, non-refundable taxes or levies, and among others.
If any trade discount or rebate is given, this will be deducted from the purchase price to arrive at the cost.
Any interest required to be paid on the delayed payment in order to reflects the time value of money are not part of the cost of the asset but expensed in the year they are incurred.
From the question, the land acquired is a fixed asset. Based on the explanation above, the total cost of the asset is $6.2 million. The interest from the 6% interest rate on the remaining $5 million will be part of the cost of the land but it will be expensed in the year they are incurred.
Therefore, the amount Laramie should record the purchase of land is <u>$6.2 million</u>.
Answer:
Revenue - March = $160
Explanation:
The accrual principle in accounting states that the revenues for a period should match the expenses for that particular period and any revenue or expense should be recorded in the period to which it relates to. This means that the upfront fee received by Fit Co. is a liability and should not be recorded as a revenue until it is earned. So, by providing two sessions in the month of March, Fit Co. has earned revenue for 2 sessions out of the twelve. Thus, at the end of March, Fit Co. should record a revenue of,
Revenue - march = 960 * 2/12 = $160
Answer and Explanation:
The computation is shown below;
But before reaching to the final answers, first do the following calculations
Cash collected $108000
Add Services performed in 2017(not collected) $36000
less Services performed in 2016(collected in 2017) $25000
Revenue for 2017 $119,000
Cash paid in 2017 $72,000
Add Expense incurred not yet paid for 2017 $42000
Less Expense paid for 2016 -$30000
Expense for 2016 $84000
Now
a. Cash basis
Revenue $108000
Less Expenses -$72,000
Net income $36000
b. Accrual basis
Revenue for 2017 $119,000
Less Expenses for 2017 $84,000
Net income $35,000
If the company issued 1,000 shares of its 5%, $10 par value, cumulative preferred stock for $100 cash per share. the journal entry to record this event includes: is: Debit Cash $100,000 ; Credit to Preferred Stock $100,000.
<h3>How to prepare the journal entry?</h3>
Based on the given information we were told that the company issued 1,000 shares in which the cumulative preferred stock is the amount $100 cash per share. The appropriate journal entry to record the transaction is:
Journal entry
Debit Cash $100,000
Credit to Preferred Stock $100,000
( To record preferred stock)
Workings:
Preferred stock = 1,000 shares × $100 cash per shares
Preferred stock = $1000,000
Therefore the correct journal entry to record the transaction is to debit cash with the amount of $100,000 and credit Preferred stock with the amount of $100,000.
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