Answer:
depreciation expense = $10500
correct option is a. $10,500
Explanation:
given data
Equipment costing = $70,000
salvage value = $14,000
estimated life = 8 years
revised estimated total life = 6 years
to find out
depreciation expense
solution
we know that Depreciation expense per year is here express as
Depreciation expense = (cost - Salvage value) ÷ useful life ...................1
put here value we get
Depreciation expense = 
Depreciation expense = $7000 per year
so
book value as on beginning of year 3 is = 70000 - (7000 × 2)
book value as on beginning of year 3 is $56000
so
depreciation expense will be
depreciation expense = 
depreciation expense = $10500
correct option is a. $10,500
Answer:
For external reporting purposes US GAAP allows companies to use
The variable costing format.
Free market economies offer distribution methods for goods and services based on ''price''.
Answer: C) Price.
Answer:
1. Sales Budget
2. Selling and Administrative Budget
3. Budgeted Income Statement
4. Budgeted Balance Sheet
Explanation:
First of all the sales budget is prepared in which expected sales are shown and then the selling and administrative budget is prepared which shows expenses related to sale.
The income statement budget is prepared which shows the expected income.
Then at last Budgeted Balance Sheet is prepared in which the expected income is transferred.
The order in which they appear is as follows.
1. Sales Budget
2. Selling and Administrative Budget
3. Budgeted Income Statement
4. Budgeted Balance Sheet
Answer:
$12.50
Explanation:
Variable costs are those costs which changes with the change in activity driving the cost (Sales. production etc.). It can be direct or indirect costs.
Whereas fixed costs are those costs which remains constant and do not change with the change in activity.
All the following costs are variable costs
Average Cost per Unit
Direct materials $6.45
Direct labor $3.30
Variable manufacturing overhead $1.25
Sales commissions $1.00
Variable administrative expense <u>$0.50</u>
Total variable cost per unit <u>$12.50</u>
All the following costs are fixed costs.
Fixed manufacturing overhead $3.00
Fixed selling expense $1.05
Fixed administrative expense $0.60
