Answer:
Standard fixed overhead rate
= Budgeted fixed overhead cost
Budgeted direct labour hours
= $45,000
15,000 hours
= $3 per direct labour hour
Fixed overhead volume variance
= (Standard hours - Budgeted hours) x Standard fixed overhead rate
= (12,000 hours - 15,000 hours) x $3
= $9,000(U)
The correct answer is B
Explanation:
In this case, we need to calculate standard fixed overhead rate, which is budgeted fixed overhead cost divided by budgeted direct labour hours. Then, we will calculate fixed overhead volume variance, which is the difference between standard hours and budgeted hours multiplied by standard fixed overhead rate.
Answer:
FV= $1,259.71
Explanation:
Giving the following information:
Initial deposit (PV)= $1,000
Number of periods (n)= 3 biannual years
Interest rate (i)= 8% = 0.08
<u>To calculate the future value (FV), we need to use the following formula:</u>
FV= PV*(1+i)^n
FV= 1,000*(1.08^3)
FV= $1,259.71
Answer:
The answer is: Garnett Co.'s net income is $7,600
Explanation:
To determine the net income we must first calculate the cost of goods sold and the commissions paid:
- COGS = $50,000 x 40% = $20,000
- Commissions = $32,000 x 10% = $3,200
Now we can elaborate the following income statement for Garnett Co.
Total sales $32,000
COGS ($20,000)
Commissions ($3,200)
<u>Advertising expense ($1,200) </u>
Net income $7,600
Answer:
C) banks falsely reporting the interest rates they offered in the interbank market.
Explanation:
The LIBOR rate is used all over the world to set banking interest rates. it reflects the cost of interbank loans. The LIBOR was used as a benchmark to charge interest rates to clients around the world, e.g. LIBOR + 2%.
The scandal involved many major banks, e.g. Deutsche Bank, Barclays, UBS, Rabobank, HSBC, Bank of America, Citigroup, JPMorgan Chase, the Bank of Tokyo Mitsubishi, Credit Suisse, Lloyds, WestLB, Royal Bank of Scotland, and a long list of etc.
What the banks did was artificially manipulate the LIBOR rate by increasing or decreasing it to show artificial profits from trading activities. When the manipulation was discovered, it had been going on for at least 7 years, and some believe it started earlier.
Answer:
The credit on December 31 is to credit Treasury Stock with $15,000.
Explanation:
There are two methods for accounting for Treasury Stock. The first is the par value method. With this method, the Treasury Stock account is debited or credited with the par value for each transaction, while the difference in par value is taken to the Additional Paid-in Capital account.
Using the cost method, the Treasury Stock account is debited and credited with the value of each transaction and the Additional Paid-in Capital account is not affected.
This implies that under the cost method, the purchase and resale of treasury stock is recorded by debiting and crediting the treasury stock account by the actual cost of purchase and actual value of sale.
