Answer: None of the other answers are correct, because all of these variance combinations are possible.
Explanation:
All of the above combinations are possible.
A company can have an Unfavorable labor rate variance and a favorable labor efficiency variance meaning that the actual labor rate was more than the budget rate but the budgeted labor Efficiency rate was more than the actual rate.
A company can also have an Unfavorable labor efficiency variance and a favorable material quantity variance meaning that even though labor Efficiency was not satisfactory, less materials were still used than were budgeted for.
There is also a possibility of a Favorable labor rate variance and unfavorable total labor variance and a Favorable labor efficiency variance and favorable material quantity variance can also happen together when actual direct labour and material quantity variance are both less than the budgeted amount.
Answer:
No. Date Accounts titles and explanation Debit Credit
(a) Jan. 6 Accounts receivable $7,600
Sales $7,600
Jan. 16 Cash $7,296
Sales discounts($7,600 * 4%) $304
Accounts receivable $7,600
(b) Jan. 10 Accounts receivable $13,300
Sales $13,300
Feb. 12 Cash $6,650
Accounts receivable $6,650
Mar. 10 Accounts receivable $133
Interest revenue(6,650 * 2%) $133
Answer:
The Current price of stock $35.20
Explanation:
The computation of the current share price is shown below:
Particulars Dividend PVF at 14% Present value
D1 $ 7.50 0.877 $6.58
D2 $8.25 0.769 $6.35
D3 $15.00 0.675 $10.12
D4 $1.80 0.592 $1.07
D5 $1.87
P4 $18.72 0.592 $11.08
1.87 ÷ (14% - 4%)
Current price of stock $35.20
