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Softa [21]
3 years ago
8

Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-d

ay. During March, the kennel budgeted for 4,700 tenant-days, but its actual level of activity was 4,780 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Fixed element per month Variable element per tenant-day Revenue - $ 35.20 Wages and salaries $ 3,600 $ 8.60 Food and supplies 1,100 15.10 Facility expenses 7,500 4.10 Administrative expenses 7,600 0.50 Total expenses $ 19,800 $ 28.30 Actual results for March: Revenue $ 144,230 Wages and salaries $ 28,660 Food and supplies $ 74,070 Facility expenses $ 27,220 Administrative expenses $ 7,106 The spending variance for food and supplies in March would be closest to:
Business
1 answer:
djverab [1.8K]3 years ago
4 0

Answer:

The spending variance for food and supplies in March would be closest to $122 U

Explanation:

In order to calculate the spending variance for food and supplies in March we would have to use the following formula:

Spending variance = Budgeted cost - Actual cost

Budgeted facility expenses for actual tenant days = $7,500 + (4780*$4.10) Budgeted facility expenses for actual tenant days =$27,098

Actual facility expenses = $27,220

Therefore, Spending variance = $27,098 - $27,220 = $122 U

Spending variance = $122 U

The spending variance for food and supplies in March would be closest to $122 U

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A firm that sells goods that it purchases for re-sale is a
MrRissso [65]
The answer to the question above is Re-sellers. not to mention the question above stating that a firm sells goods that is purchased for a re-sale automatically refers to the Re-sellers. The Re-sellers can be a retailer that sells to the end users or sells to other business firms like the whole seller. basically the term Re-seller is a firm that who buys product lesser in the market and sells it with added value.
3 0
3 years ago
A produce distributor uses 783 packing crates a month, which it purchases at a cost of $11 each. The manager has assigned an ann
jeyben [28]

Answer:

Annual Savings will be ;

Ordering Cost = $2,993.88

Holding Cost = $661.78

Explanation:

First Calculate the Economic Order Quantity (EOQ)

EOQ = √ 2 × Annual Demand × Ordering Cost per Order / Holding Cost per unit

        = √ ((2 × 783× 12 × $31) / ($11 × 32%))

        = 407

Note : Currently the firm orders at 783 crates per month

Savings in Ordering Cost will be :

Savings = Ordering Cost at Current Quantity - Ordering Cost at EOQ

             = (Total Demand / Current Quantity × Ordering Costs) - (Total Demand / Current Quantity × Ordering Costs)

             = (9396/783 × $31) - (9396/407 × $31)

             = $2,993.88

Savings in Holding Cost will be :

Savings = (Current Quantity - Economic Order Quantity) / 2 × Holding Cost per unit

             = (783 - 407) / 2 × ($11 × 32%)

             = $661.78

4 0
3 years ago
Aaron Company uses the periodic inventory cost flow method. If Aaron's ending inventory is understated due to an accounting erro
cestrela7 [59]

Answer:

a. net income= understated, retained earnings= understated

Explanation:

In accounting and auditing it is established that ending inventory and net income moves in the same direction when it comes to being overstated or understated. That implies that if <u>ending inventory is understated</u>,  then cost of goods sold will be overstated by the same amount, and when costs are overstated it finally leads to <u>net income and gross profit being understated.</u>

Furthermore, since it is the net income that will be added to retained earnings thereafter, it implies that the lesser the net income the lesser will be retained earnings. Hence, understatement of ending inventory is understatement of net income and also retained earnings.

4 0
3 years ago
A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that date indicated the following:
andrew-mc [135]

Cost of inventory destroyed in fire is $1,140,000

<u>Explanation:</u>

The loss from fire to inventory can be calculated by finding the cost of the inventory on the may 4 , 2021.

Cost of sales = Sales – profit on sales

= 9000000-1800000

=$7200000

The value of inventory on the may 4 = opening inventory on January 1 + purchases + freight in – cost of sales

=1980000+5880000+480000-7200000

=$1,140,000

Cost of sales is referred to the amount that is incurred in producing the goods. Cost of sales is included in the sale price of the product to earn a profit beyond the cost. So sales includes cost and profit which can be used to find the cost of sales.

4 0
3 years ago
Tyson Corporation bought raw materials on April 23, 2012 and also on July 2, 2012. Products produced in the months of May were s
exis [7]

Answer:

2. the inventory acquired on April 23 with the products sold

Explanation:

Tyson Corporation

<em>As the company uses FIFO it would associate the sales with the inventory bought earliest. FIFO means first in first out the materials bought first would be sold first . The materials bought later would be sold later. In this situation the April 23 inventory is the first purchase so it would be associated with the products sold first in July. </em>

So option 2 is the best option indicating the first purchase sold first.

5 0
3 years ago
Read 2 more answers
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