Answer:
The amount of Compensation expense to Year 1 is $153,333.
Explanation:
Stock options granted 92000
X Fair value on date of grant 5
Total compensation expense 460000
Years 3
Compensation expense per year 1 53333
Therefore, The amount of Compensation expense to Year 1 is $153,333.
Answer:
b. $75.
Explanation:
The computation of the time charge per hour is shown below;
But before that the total charge is
Labour Charge = $800,000
Overhead Cost = $480,000
Target Profit = $220,000
Total Charge = $1,500,000
Now
time charge per year is
= $1,500,000 ÷ 20,000 direct labor hours
= $75 per year
Hence, the company's time charge per hour is $75 per year
Therefore the correct option is b.
Answer:
Value of addition into warranty during the current year = Total Selling price * 4%
= (100*$4000) * 4%
= $400,000 * 4%
= $16,000
Warranty liability balance Amount ($)
Opening $42,000
Add: Addition during the year $16,000
Less: Claims actually incurred <u>$11,000</u>
Closing balance <u>$47,000</u>
I think it’s A but I’m not sure