Answer:
The correct answer is option (c) the company used more labor hours than allowed by the standards.
Explanation:
The efficiency of direct labor difference tells that how efficiently direct labor has worked. If it is not favorable, it suggest that direct labor has used more labor hours than permitted by standard.
In this example given, the question direct labor difference or variance is unfavorable 17000U, it means that, direct labor was done inefficiently and has used 1000 hrs (21000-2000)more than normal standard practice or way.
Answer: $7,500
Explanation:
In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.
Starting off we will calculate the amount of savings they will make by using the new machine,
= $12,000 x 5 years
= $60,000
Calculating the Incremental income therefore we have,
= 60,000 + 60,000(from selling old machine) - 112,500 (cost of new machine)
= $7,500
The incremental income of buying the new machine is $7,500.
If you need any clarification do comment.
Answer:
People invest:
to increase future consumption.
Explanation:
Investments generate increased returns. These returns add value to the pool of an investor's money which can be used to increase future consumption. Investments are important because they increase productivity of value. The increased value will be future use. For example, if A invests his savings of $5,000 which yields an annual return of $1,000 (or 20%) ROI, and the investment is left for 5 years, by the end of 5 years, A will have $10,000. This implies that he has more money to spend than in the previous five years. A can now spend more $5,000 than he could have spent five years' ago.
Answer:
Debit Credit
1) Allowance for doubtful accounts $1,500
Accouts receivable $1,500
2) Cash $1,000
Bad debt recovery account $1,000
Explanation:
1) Since the company adopts the allowance method to account for uncollectibles, it is expected that there would still be some buffer in that account to take care of the write-off. So, that account has to be debited to extinguish the accounts receivables.
2) Now that there is a recovery from Green, cash has to be debited, first of all to recognize the receipt and then credit goes to bad debt recovery account, which reports to income statement.
1. Affordable power and water
2. Ample shovel ready sites
3. Distribution infrastructure which makes importing and exporting products effective and affordable