Answer:
Results are below.
Explanation:
<u>To calculate the activities rates, we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Cutting= 360,000 / 200,000= $1.8 per machine hour
Design= 630,000 / 1,500= $420 per setup
<u>Now, we need to determine the predetermined overhead rate for the whole company based on direct labor hours:</u>
Predetermined manufacturing overhead rate= 990,000 / 450,000
Predetermined manufacturing overhead rate= $2.2 per direct labor hour
Answer:
QBI deduction = $16000
Explanation:
QBI stands for qualified business income. Qualified business income includes those income that qualify as income, all money received especially in ordinary course of business and on regular basis qualifies as income. The qualified business income of a business is subject to various limitations. One of the most important limitations is that QBI deduction shouldn't exceed 20% of what taxpayers taxable income is. Sanjay's taxable income is $80000, considering the above mentioned limitation Sanjay's QBI deduction is as follows:
QBI deduction = $80000 × 20%
QBI deduction = $16000
Answer:
From the list of options, Option A is the only correct one:
"the actual usage of materials was less than the standard allowed".
Explanation:
<em>Material usage variance</em>
A material usage variance occurs when the standard quantity required to active a particular level of production is higher or lower than than the actual actual quantity used. A favorable variance would mean than less quantity of materials were used than the standard to achieve a given output level. And an adverse variance would mean the opposite.
<em>Material price variance</em>
A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite.
From the list of options, Option A is the only correct one
Answer:
$242,800
Explanation:
Tax Base Accounting Base Temporary Difference
2021 Insurance Expense $234,000 0 $234,000
This insurance expense will result in taxable temporary difference=$234,000*20%=$46,800
The journal entry will be;
Income Tax Expense Dr.$46,800
Deferred Tax liability Cr.$46,800
Therefore Income tax expense will be=$196,000+$46,800=$242,800