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zheka24 [161]
3 years ago
5

If $15,000 is considered to be material to the income statement, but $25,000 is material to the balance sheet, the auditor shoul

d set overall materiality at which of the following dollar amounts?
a. $20,000
b. $25,000
c. $40,000
d. $15,000
Business
1 answer:
Elanso [62]3 years ago
7 0

Answer:

The correct option is d.

Explanation:

It is given that $15,000 is considered to be material to the income statement, but $25,000 is material to the balance sheet.

Material to the income statement = $15,000

Material to the balance sheet = $25000

The auditor should set overall materiality according to the income statement.

The auditor should set overall materiality at $15,000.

Therefore the correct option is d.

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Blumen Textiles Corporation began April with a budget for 22,000 hours of production in the Weaving Department. The department h
tankabanditka [31]

Answer:

A. 1300 Favorable

B. $7,200 UnFavorable

Explanation:

A. Calculation to determine the variable factory overhead controllable variance

First step is to calculate the Budgeted rate of variable overhead

Budgeted rate of variable overhead = $50,600/22,000

Budgeted rate of variable overhead= $2.3per hour

Second step is to calculate the Standard variable overhead for actual production

Standard variable overhead for actual production = 23,000 x $2.3

Standard variable overhead for actual production = $52,900

Now let calculate the Variable factory overhead controllable variance using this formula

Variable factory overhead controllable variance = Standard variable overhead - Actual variable overhead

Let plug in the formula

Variable factory overhead controllable variance= $52,900 - ($86,400 - 34,800)

Variable factory overhead controllable variance= 1300 Favorable

Therefore Variable factory overhead controllable variance is 1300 Favorable

B. Calculation to determine the fixed factory overhead volume variance.

First step is to calculate the Predetermined fixed overhead rate using this formula

Predetermined fixed overhead rate = 34,800/29,000

Predetermined fixed overhead rate = $1.20 per hour

Second step is to calculate the Fixed overhead applied

Using this formula

Fixed overhead applied = Standard hours x Standard rate

Let plug in the formula

Fixed overhead applied= 23,000 x $1.20

Fixed overhead applied= $27,600

Now let calculate the Fixed overhead volume variance using this formula

Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overhead

Let plug in the formula

Fixed overhead volume variance= $27,600 - 34,800

Fixed overhead volume variance= $7,200 UnFavorable

Therefore The Fixed overhead volume variance is $7,200 UnFavorable

5 0
2 years ago
QS 11-9 Recording warranty repairs LO P4 On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty
prisoha [69]

Answer:

<em>On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts</em>

<u>Recording of revenue:</u>

Cash $490 (debit)

Revenue $490 (credit)

<u>Recording of Warranty granted :</u>

Assurance Warranty expense $49.00 (debit)

Warranty Provision $49.00  (credit)

$490 × 10% = $49.00

<em>On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory</em>

<u>When warranty is subsequently received:</u>

Warranty Provision $ 34 (debit)

Repair Parts Inventory $ 34 (credit)

Explanation:

<em>On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts</em>

<u>Recording of revenue:</u>

Cash $490 (debit)

Revenue $490 (credit)

<em>We Recognise Revenue to depict transfer of control of mower</em>

<u>Recording of Warranty granted :</u>

Assurance Warranty expense $49.00 (debit)

Warranty Provision $49.00  (credit)

$490 × 10% = $49.00

<em>There is no option for customer to take the warranty or not, so this is a service warranty.The warranty is measured at the best estimate of expenditure required to settle the obligation that is at 10% of sales.</em>

<em>On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory</em>

<u>When warranty is subsequently received:</u>

Warranty Provision $ 34 (debit)

Repair Parts Inventory $ 34 (credit)

<em>Utilise the Warranty Provision when the warranty claim is subsequently received</em>

<em></em>

7 0
3 years ago
Paul’s will creates a General Power of Appointment Trust (GPOA) that distributes income to his wife annually for life and gives
Ivanshal [37]

Answer: D. The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul's wife has a general power of appointment over the trust's assets.

Explanation:

General Power of Appointment Trust (GPOA) refers to a power of appointment which is a legally binding provision that's contained in a trust such that the beneficiary possess the authority to alter the beneficiaries of the trust.

In this case, Paul's wife possess the power of appointment to anyone on her behalf. Therefore, The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul's wife has a general power of appointment over the trust's assets.

3 0
2 years ago
If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the sam
stich3 [128]
NOMINAL GDP but not real GDP would rise
4 0
2 years ago
Read 2 more answers
"a(n __________ accepts savings and checking account deposits and provides home mortgage loans."
zaharov [31]
The answer that will fill in the blank is savings and loan association. It is because a savings bank has the capability of providing an individual the ability acquire loans and that they could save and deposit on their bank. The loan association also provide these instances for they have the capability to do so.
7 0
3 years ago
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