Name the form of ownership represented by SABC

The Assembly Department produced 1,000 units of product during March. Each unit required 1.25 standard direct labor hours. There

frutty [35]

Answer:

Debit Work in process for $15,625

Debit Direct labor time variance for $625

Credit Direct labor rate variance for $650

Credit Wage payable for $15,600

Explanation:

Before preparing the journal, the following calculations are done first:

Wage payable = Actual hours * Actual rate per hour = 1,300 * $12 = $15,600

Direct labor time variance = (Actual hours - Standard hours) * Standard direct labor rate = (1,300 - (1,000 * 1.25)) * $12.50 = $625 Unfavorable

Note: Direct labor time variance is Unfavorable because Actual hours is greater than Standard hours.

Direct labor rate variance = (Actual rate - Standard rate) * Actual hours = ($12 - $12.50) * 1,300 = -$650 Favorable

Note: Direct labor rate variance if Favorable because Actual rate is lower than the Standard rate.

Work in process = Wage payable + Absolute value of direct labor rate variance - Direct labor time variance = $15,600 + $650 - $625 = $15,625

The journal entries will now look as follows:

Date Particulars Debit ($) Credit ($)

Mar. 31 Work in process 15,625

Direct labor time variance 625

Direct labor rate variance 650

Wage payable 15,600

(To record the direct labor in the Assembly Department.)

4 0

3 years ago

The most important difference between for-profit businesses and nonprofit organizations is that:

kolezko [41]

The most important difference of the two or between businesses in the profit and nonprofit organizations is that in terms of nonprofit organizations, the organization owners does not make money, while the profit organizations—it makes money for the organizations’ owners.

7 0

3 years ago

You consider buying a share of stock at a price of $25. The stock is expected to pay a dividend of $1 next year, and your adviso

nikklg [1K]

Answer:

5%

Explanation:

stock's Alpha = R - Rf - beta (Rm - Rf)

R represents the stock's return = $6/$25 = 24%
Rf = 6%
Beta = 1.3
Rm = 16%

Alpha = 0.24 - 0.06 - 1.3 (0.1) = 0.24 - 0.06 - 0.13 = 0.24 - 0.19 = 0.05 = 5%

A stock's Alpha is basically the excess return that the stock yields compared to an specific benchmark, e.g. S&P 500, Dow Jones.

4 0

3 years ago

Ranch Company estimates warranty expense as 5% of sales. On January 1, warranties payable was $13,000. During the year Ranch pai

Yuki888 [10]

Answer:

$13,000

Explanation:

The computation of the december 31 liability for the warranty is shown below:

Given that

Warranty expense = 5% of sales

Warranty payable = $13,000

Paid amount = $5,000

Sales = $120,000

based on the above information

The warranty liability as on Dec 31 would be equivalent to the warranty payable i.e. $13,000

The same is to be considered

3 0

3 years ago

A company has two products: standard and deluxe. The company expects to produce 36,375 standard units and 62,240 deluxe units. I

Scrat [10]

Answer:

A1 = $12 A2 = $9.20 A3 = $1.50
Total Overhead for Standart Product $267.16
Total Overhead for Deluxe Product $163.48

Explanation:

First we will Calculate the rates:

This is done by adding the two product activity use to get the total cost driver.

Then we divide by the activity cost to get the rate:

$\left[\begin{array}{cccc}activity&cost&driver&rate\\1&93,000&7,750&12\\2&92,000&10,000&9,2\\3&8,700&5,800&1,5\\\end{array}\right]$

Next we check the overhead per unit:

units/ activity use x rate = overhead for activity

Standart Product Manufacturing Overhead

36,375units /2,500 Use Activity 1 x $12 = $174.60

36,375units /4,500 Use Activity 2 x $9.20 = $74.37

36,375units /3,000 Use Activity 3 x $1.50= $18.19

Total Overhead for Standart Product $267.16

Deluxe Product Manufacturing Overhead

62,240units /5,250 Use Activity 1 x $12 = $83,14

62,240units /5,500 Use Activity 2 x $9.20 = $60,85

62,240units /2,800 Use Activity 3 x $1.50= $19,49

Total Overhead for Deluxe Product $163.48

7 0

3 years ago