Inventory carrying cost means total expenses incurred while storing an unsold good.
<h3>What is
Inventory carry cost?</h3>
Basically, an Inventory carry cost means the total holding cost for holding an inventory which includes the cost of capital, warehousing, depreciation, insurance, taxation, obsolescence, opportunity cost.
In other word, the Inventory carrying cost means the total expenses incurred while storing an unsold good.
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<u>Explanation:</u>
1. Calculation of labor spending variance for the month of march
Labor spending variance = (Actual rate x actual hours)- (Standard rate x Standard hours)
=(13 x 63000) - (12 x (26000 x 3))
=-1,38,600
Labor spending variance for the month of March is $138600
2.Calculation of variable manufacturing overhead planning cost
Variable manufacturing overhead planning cost= (Planning budget units x required hours x cost per hour)
=(21000 x 3 x7)
=441,000
Variable manufacturing overhead planning cost is $441,000
3. Calculation of Variable manufacturing overhead cost
Variable manufacturing overhead cost= (Actual units x required hours x cost per hour)
=(26600 x 3 x7)
=$558,600
Variable manufacturing overhead cost is $558,600
4. Calculation of Variable overhead rate variance
Variable overhead rate variance= Actual hours ( actual rate - standard rate)
=63000((510930/63000)-8)
=63000(8.11-8)
=63000(0.11)
=6930
Variable overhead rate variance is =6930
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First find the amount of direct labor cost by subtracting the amount of indirect labor cost from the amount of factory labor cost
Direct labor cost is
600,000−140,000=460,000
The amount of overhead debited to work in process inventory should be
460,000×0.7=322,000
Answer 322000
Answer:
Cash flow from Operating Activities
Net Income $ 53,500
Adjust for Non-Cash items :
Depreciation expense 25,000
Adjust for Working Capital items :
Increase in accounts receivable ($ 5,300)
Increase in inventory ($11,300)
Decrease in prepaid rent $9,900
Increase in operating expenses payable$5,000
Decrease in accounts payable ($7,400)
Increase in income tax payable $21,900
Net Cash from Operating Activities $91,300
Explanation:
Prepare Operating activities section of the statement of cash flows for Horizon Telecom as above.