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3 years ago

Which of the following statements about overhead variances is false?

Business

1 answer:

o-na [289]3 years ago

5 0

Answer: c. The controllable variance pertains solely to fixed costs

Explanation:

For overhead variance, it should be noted that standard hours allowed are used in calculating the controllable variance, standard hours allowed are used in calculating the volume variance and the total overhead variance pertains to both variable and fixed costs.

Therefore, the option that is not true is that the controllable variance pertains solely to fixed costs(option C)

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f-1. Assume that no intra-entity inventory or land sales occurred between Placid Lake and Scenic. Instead, on January 1, 2020, S

Margarita [4]

Answer:

Journal 1

Debit : Other Income $34,000

Credit : Equipment $34,000

Journal 2

Debit : Accumulated depreciation $6,800

Credit : depreciation $6,800

Explanation:

Step 1 : Eliminate the Income resulting from sale and the additional value of equipment sitting in the buyer books

Income = Selling Price - Carrying Amount

where,

Carrying Amount = Cost - Accumulated depreciation

= $84,000

therefore,

Income = $118,000 - $84,000 = $34,000

Journal;

Debit : Other Income $34,000

Credit : Equipment $34,000

Step 2 : Eliminate the unrealized profit as a result of additional asset value

unrealized profit = income ÷ remaining useful life

= $34,000 ÷ 5

= $6,800

Journal;

Debit : Accumulated depreciation $6,800

Credit : depreciation $6,800

7 0

3 years ago

Consider the following information: Portfolio Expected Return Beta Risk-free 5 % 0 Market 11.2 1.0 A 9.2 1.9 a. Calculate the re

tatiyna

Answer:

The calculations are shown below:

Explanation:

The calculations are shown below:

a. The expected rate of return is

Return = Risk free return + Beta × (Market return - risk free return)

= 5% + 1.9 × (11.20% - 5%)

= 5% + 11.78%

= 16.78%

b. Now the alpha is

Alpha = Actual rate of return - Expected rate of return

= 9.2% - 16.78%

= - 7.58%

c. No , the CAPM is not valid as the expected rate of return is more than the actual rate of return

6 0

3 years ago

At the end of the year, a company has a balance in Allowance for Uncollectible Accounts of $2,200 (credit) before any year-end a

Lapatulllka [165]

Answer: Debit Bad debt expense $7,300; Credit Allowance for doubtful accounts $7,300.

Explanation: 5% of accounts receivable of $190,000 is $9,500. Remember the credit balance in Allowance for uncollectible accounts is $2,200 prior to any adjustment and this reports to the balance sheet. To reinstate this account to the required provision for uncollectible amount of $9,500, we need to adjust for the difference (that is, $9,500 minus $2,200 existing balance), which is $7,300. <u>Then, the entries above would be recorded. </u>

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3 0

3 years ago

Wechsler Company uses the aging of accounts receivable method. The company performed an aging of accounts receivable on December

snow_lady [41]

Answer:

The amount of accounts receivable Net = 512000

so correct option is b. $512,000

Explanation:

given data

Accounts receivable = $605,000

Doubtful Accounts = $84,000

Accounts Receivable = $93,000

to find out

amount of Accounts Receivable, Net that will be reported on the balance sheet

solution

we know bad debt expense is difference between 93,000 and 84,000 i.e 9000

so new balance of Allowance for doubtful debts = 93,000

so we can say The amount of accounts receivable Net is

The amount of accounts receivable Net = 605,000 - 93,000

The amount of accounts receivable Net = 512000

so correct option is b. $512,000

4 0

4 years ago

Which of the following is true of a person with a high credit score?

Nikolay [14]

They always pay their bills on time or early. They are not at risk for a loan.

6 0

4 years ago