Answer:
b. 6 years.
Explanation:
The formula and the calculation of the payback period is presented below:
= Initial investment ÷ Net cash flow
where,
Initial investment is $263,000
And, the net cash flow = After-tax net income + depreciation expenses
= $2,000 + $1,500
= $3,500
Now placed these values in the formula above, so the period would be equal to
= ($21,000) ÷ ($3,500)
= 6 years
Answer:
The estimated balance uncollectible using the balance sheet method is $4,727.
Explanation:
In the balance sheet method, the Estimated balance uncollectible is calculated using the percentage of the closing accounts receivables. As account receivables are reported in the balance sheet of the company.
In the income statement method, the Estimated balance uncollectible is calculated using the percentage of sales value because the sale is reported in the income statement.
Estimated balance uncollectible = Accounts receivable x estimation percentage
Estimation percentage = 2.9%
Accounts receivable = $163,000
Placing values in the formula
Estimated balance uncollectible = $163,000 x 2.9%
Estimated balance uncollectible = $4,727
Answer:
Cutting Department:
Rate variance = 6380*(10.9-11) = -638 Favorable
Time variance = 11*(6380-25000*0.25) = 1430 Unfavorable
Total direct labor cost variance = (6380*10.9)-(25000*11*0.25) = 792 Unfavorable
Sewing Department:
Rate variance = 9875*(11.12-11) = 1185 Unfavorable
Time variance = 11*(9875-25000*0.4) = -1375 Favorable
Total direct labor cost variance =(9875*11.12)-(25000*11*0.4) = -190 Favorable
retaining i think because the act of retaining something is to retain.