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3 years ago

The following data relate to direct labor costs for the current period:

Business

1 answer:

mr Goodwill [35]3 years ago

3 0

Answer:$2,125 unfavorable

Explanation:

Given

Standard costs 9,000 hours at $5.50

Actual costs 8,500 hours at $5.75

we have two formulas to calculate for direct labor rate variance is:

1ST ----Direct Labor rate variance = (Actual Rate- Standard Rate ) x Actual hour

=( $5.75 -$5.50) x 8,500 = $2,125 unfavorable

2ND----Direct Labor Rate Variance=Actual Direct Labor Cost Incurred - Standard Direct Labor Cost Based on Actual Hours

=Actual Hours x Actual Rate -Actual Hours x Standard Rate

= ($5.75 x 8,500 hours)-($5.50 x 8,500 hours)

$48,875 - $46,750 = $2,125 unfavorable

when the actual rate is higher than the standard rate, the Direct Labor Rate Variance is unfavorable and if the actual rate is lower than standard rate, the variance is favorable.

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On April 1, 2021, Parks Co. purchased machinery at a cost of $42,000. The machinery is expected to last 10 years and to have a r

german

Answer:

Depreciation for 2021 is $6,300 with book value of the machinery being $35,700.
For 2022, Depreciation is $7,140 with book value of $28,560.

Explanation:

The double-declining method is otherwise known as the reducing balance method and is given by the formula below:

Double declining method = 2 X SLDP X BV

SLDP = straight-line depreciation percentage

BV = Book value

SLDP is 100%/10 years = 10%, then 10% multiplied by 2 to give 20%

At Year 2021, 20% X $42,000 = $8,400/yearly

Remember, the machinery was purchased on April 1, 2021, so 9 months depreciation would be accounted for as: 9/12 x $8,400 = $6,300.

So, the book value of the machinery is $42,000 - $6,300 = $35,700 at December 31, 2021

At Year 2022, 20% X $35,700 ($42,000 - $6,300) = $7,140

So, the book value of the machinery is $35,700 - $7,140 = $28,560 at December 31, 2022

Accumulated depreciation expense for Years 2021 to 2022, under this method, is $13,440 (addition of all the yearly depreciation).

8 0

4 years ago

Which of the following account records would have the most current

Alik [6]

Answer:All

Explanation:All would have to be the same as they are calculated by the bank with every transaction except your own register which should match if you are keeping it up to date.

4 0

3 years ago

Emery Mining Inc. recently reported $150,000 of sales, $75,500 of cost of goods sold, and $10,200 of depreciation. The company h

maria [59]

Answer:

The firm's net income was $41,017.4375

Explanation:

The company has $16,500 of outstanding bonds that carry a 7.25% interest rate.

The interest expense of the company = $16,500 x 7.25% = $1,196.25

Income before tax = Sales - cost of goods sold - depreciation expense - interest expense = $150,000 - $75,500 - $10,200 - $1,196.25 = $63,103.75

Emery Mining Inc.'s income tax rate was 35%.

Tax = Income before tax x 35% = $63,103.75 x 35% = $22,086.3125

Net income = Income before tax - Tax = $63,103.75 - $22,086.3125 = $41,017.4375

3 0

4 years ago

The Widget Company's produces several brands. Total sales for Brand "A" are forecasted to be $950,000. The portion of the compan

scoray [572]

Answer:

As the contibution of the product is positive the company shoudl continue to produce it in the short-term

If the brand is discontinued then, as the fixed csot are common they will bean additional burden for the other brands. CUrrently Brand A covers most of theri allocated fixed cost

Removing it will decrease the income by the amount of their contribution

$220,645,1

They should be continued.

Explanation:

contribution margin per widget:

310 - 238 = 72

contribution margin ratio:

72 / 310 = 0,232258064516129

Contribution at 950,000 sales:

950,000 x 0.232258 = 220645,1

6 0

3 years ago

During its first year of operations, a company has credit sales of $250,000 and cash sales of $100,000. By the end

Luba_88 [7]

Answer:

Debit : Bad Debts = $4,200

Credit : Allowance for doubtful debts = $4,200.

Explanation:

The question states that bad debts are expected to be 6% of the accounts receivables. Credit sales were $250,000 of which $180,000 was collected. Hence, accounts receivables is ($250,000 - $180,000) = $70,000.

This means that the allowance for doubtful debts is it is: $70,000 x 6% = $4,200.

An account for allowance for doubtful debts is a contra account created, predicting that certain debtors will not be able to pay for the goods and services they purchased. The 6% may be based on historical experiences. Doubtful debts aren’t officially uncollectible, it is simply an estimation made, but bad debts are, where you have officially written off a certain accounts receivable as uncollectible.

An allowance for doubtful debts is recorded in the balance sheet, directly under accounts receivables. Bad debts are recorded as an expense in the income statement.

The entry to record the above transaction is:

Debit : Bad Debts = $4,200

Credit : Allowance for doubtful debts = $4,200.

When the amount is officially declared uncollectible, the allowance for doubtful debts account will be debited and the accounts receivables account will be credited.

5 0

3 years ago