Answer:
The indifference point is 10,000 units.
Explanation:
Giving the following information:
Two vendors have presented proposals. The fixed costs are $ 50,000 for proposal A and $ 70,000 for proposal B. The variable cost is $ 12.00 for A and $ 10.00 for B. The revenue generated by each unit is $ 20.00.
Proposal A= 50,000 + 12*x
Proposal B= 70,000 + 10*x
70,000 + 10x= 50,000 + 12x
20000= 2x
10000= x
The indifference point is 10,000 units.
Answer:
the variable overhead rate variance is $596 favorable
Explanation:
The computation of the variable overhead rate variance is shown below:
= Standard overhead rate × actual direct labor hour - actual overhead
= $7 × 1,490 direct labor hours - $9,834
= $10,430 - $9,834
= $596 favorable
hence, the variable overhead rate variance is $596 favorable
Revenue Recognition Principle
An accounting principle that states that a company should record revenues when they provide goods and services to customers.
Bare with me here. I may be wrong but I hinkle it's true
Answer:
Dr. Depreciation Expense 40,000
Cr. Accumulated Depreciation 40,000
Explanation:
Annual depreciation charge=cost-salvage value/useful life
cost is $1,000,000
salvage value is $200,000
useful life is 20 years
annual depreciation charge=($1,000,000-$200,000)/20=$40,000
every year end the depreciation expense account would debited with $40,000 while the accumulated depreciation would be credited with same amount.
The correct option is the last option,Dr depreciation expense $40,000 and Cr accumulated depreciation $40,000.
At the point there is no point posting directly into the asset account since the accumulated depreciation account is an offsetting account against the asset account in the balance sheet
