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True [87]
3 years ago
10

A company had a standard sales price of $1.79 per unit and expected to sell 10,000 units. Due to a downturn in the economy, the

product was marked down to $1.59 per unit and the company only sold 9,500 units. Calculate the sales price variance.
Business
1 answer:
Sloan [31]3 years ago
4 0

Answer:

Sales price variance = $1,900.

Explanation:

We know,

Sales price variance = (Standard sales price - Actual sales price) × Actual sales quantity

Given,

Standard sales price = $1.79 per unit.

Actual sales price = $1.59 per unit.

Actual sales quantity = 9,500 units.

Putting the values into the formula, we can get

Sales price variance = (Standard sales price - Actual sales price) × Actual sales quantity

or, Sales price variance = ($1.79 -  $1.59) × 9,500

or, Sales price variance = $0.2 × 9,500

or, Sales price variance = $1,900.

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Answer:

"Choose a previous employer, and describe your greatest contribution to the company." Prepare for an Interview: This is a common question asked in interviews.

Explanation:

3 0
3 years ago
Otis Thorpe Corporation has 10,000 shares of $100 par value, 8% preferred stock and 50,000 shares of $10 par value common stock
s2008m [1.1K]

Answer:

(a) Cumulative dividend is not reported in Balance sheet.

The dividends in arrears on December 31, 2014 is $240,000

(b) Preferred Stock (Dr.) $400,000

    Common Stock (Cr.) $280,000

     Paid in capital Excess of par (Cr.) $120,000.

(c) Cash (Dr.) $1,070,000

    Preferred Stock (Cr.) $1,000,000

    Paid in capital (Cr.) $70,000

Explanation:

a. Cumulative dividends on Preferred stocks are not declared and therefore they are not reported in Balance sheet of a company.

To calculate the dividends in arrears on December 31, 2014,

10,000 shares * $100 par value * 8% preferred stock. * 3 years arrears.

= $240,000.

b. Preferred stock conversion into common stock is recorded as common stock account in balance sheet.

Preferred stock conversion amount is 4,000 shares * $100 par value = $400,000. This is presented as debit entry.

The credit entry will be common stock account with $ 280,000 (4,000 * 7 shares conversion * $10 par value).

The difference in both entries will be recorded as paid in capital as credit.

c. When preferred stock is issued cash is increased so debit account will be cash (10,000 shares * $107 per share) and credit entry will be Preferred Stock account in balance sheet at par value (10,000 shares * $100 par value). The remaining is credited in paid in capital of preferred stock account  [10,000 shares * $7 ($107 - $100) per share].

4 0
3 years ago
Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as
Dima020 [189]

Answer:

E

Explanation:

How often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

The strategy decision making about the industry and competitive conditions involve evaluating the prices, buyer sensitivity to the prices, serviceability & frequency.

6 0
2 years ago
The cost of a completed job in a job-order costing system typically consists of the actual direct materials cost of the job, the
kondaur [170]

Answer:

True

Explanation:

For computing the cost of the completed jobs in a  job-order costing system we have to consider the actual direct materials cost,  actual direct labor cost, and the manufacturing overhead cost applied.

In mathematically,  

The total cost of completed job = Direct Material cost + Direct labor cost + manufacturing overhead cost

Therefore, the given statement is true

3 0
3 years ago
Vietnamese citizens went working in Korea. They sent their income back to the families in Vietnam, worth of $678,000. Which acco
ahrayia [7]

Answer:

a. Current Account.

b. A credit to the Current Account.

Explanation:

When people go to another country for work and send the income they make back to their country of origin as remittances, this goes to the Current Account of a nation's Balance of Payments.

It would be recorded as a credit to this account because when money goes out, it goes to the credit side of the U.S. BOP as it is being exported out so is leaving the economy of the U.S.

7 0
2 years ago
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