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Talja [164]
2 years ago
6

Wade Company estimates that it will produce 6,000 units of product IOA during the current month. Budgeted variable manufacturing

costs per unit are direct materials $5, direct labor $11, and overhead $17. Monthly budgeted fixed manufacturing overhead costs are $7,500 for depreciation and $3,500 for supervision. In the current month, Wade actually produced 6,500 units and incurred the following costs: direct materials $27,500, direct labor $65,000, variable overhead $110,000, depreciation $7,500, and supervision $3,700. Prepare a static budget report. Hint: The Budget column is based on estimated production while the Actual column is the actual cost incurred during the period. (List variable costs before fixed costs.) Wade Company Static Budget Report Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $
Business
1 answer:
Elodia [21]2 years ago
8 0

Explanation:

                             STATIC  BUDGET          ACTUAL VARIANCE

Units                           6000                    6500  

variable costs    

Direct material          30000                      27500 2500 favorable

Direct labor                   66000                      65000 1000 favorable

Manufacturing overhead 102000              110000 8000 Unfavorable

Fixed costs    

Depreciation                    7500                       7500          None

supervision                    3500                        3700 200 Unfavorable

Total expenses            209000               213700 4700 unfavorable

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When is a budget considered to be balanced??
velikii [3]
<span>A budget is said to be balanced when total revenues are equal to, or greater than total expenditures; i.e when there's no budget deficit. Budget deficit, by contrast, is the result of expenses toppling revenues. Revenue is the income a business, company, or government generates from its normal or tax activities, also referred to as a turnover; while expenditures is cost incurred or required for something, say a project. When the budget has nothing to offset, or when there's a budget surplus i.e when revenues exceed expenses, then the budget is said to be balanced.</span>
7 0
2 years ago
An attempt to reduce inflation requires​ _____________ fiscal​ policy, which causes real GDP to​ _________ and the price level t
Maru [420]

Answer:

Explanation:

TO CONTRACT in order to pay more taxes and spend less money to avoid a price hike.  DECREASE, if people spend less money the GDP is affected because of the purchases and the price level obviously prives FALL.

6 0
3 years ago
g Hondae Inc. purchased equipment on January 1, 2018, at a cost of $320,000. The company estimated a $8,000 salvage value and th
klasskru [66]

Answer:

Honda Inc.

Journal

To correct the error:

Debit Retained Earnings $21,600

Credit Accumulated Depreciation $21,600

To record the correction of depreciation error.

For the current year:

Debit Depreciation Expense $31,200

Credit Accumulated Depreciation $31,200

To record the depreciation expense for the year.

Explanation:

a) Data and Calculations:

January 1, 2018 Purchase of Equipment at a cost = $320,000

Estimated salvage value = $8,000

Recorded salvage value = $80,000

Estimated useful life = 10 years

Annual depreciation expense based on recorded salvage value = ($320,000 - 80,000)/10 = $24,000

Accumulated depreciation for 3 years (2018 to 2020) = $72,000 ($24,000 * 3 years)

Correct annual depreciation expense = ($320,000 - 8,000)/10 = $31,200

This means that depreciation expense was being understated annually by $7,200 ($31,200 - $24,000).

4 0
2 years ago
Today you earn a salary of $28,500. What will be your annual salary fifteen years from
lys-0071 [83]

Answer:

$47.747.44

Explanation:

After 14 years, the salary will be equivalent to the future value of $28,500 at 3.5% compound interest.

The formula for calculating compound interest is as follows.

FV = PV × (1+r)n

where FV = Future Value

PV = Present Value... 28,500

r = annual interest rate.... 3.5%

n = number of periods...15

Fv = $28,500 x ( 1+ 3.5/100)15

Fv = $28,500  x ( 1+0.035)15

Fv =$28,500 x 1. 67534883

Fv =$47.747.44

3 0
3 years ago
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was
tatiyna

Answer:

The correct answer is Double-declining-balance.  The highest net income in year 2 is 6000.

This higher net income don´t mean the machine was used more efficiently under this depreciation method.

Explanation:

In the file attached you will find a depreciation schedule for each of the alternative methods.  

Each method need different calculus.  

Straight-line

depreciation expense=(Original Value  -Residual Value)/Useful life=

depreciation expense=4400

Units-of-production

estimated productive life  10000

Units of Production Rate=(Original Value  -Residual Value)/estimated productive life=2,2

Double-declining-balance.

Depreciation rate = 1/useful life *100= 20,00%

Download xlsx
4 0
3 years ago
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