Supporters of the progressive system claim that higher salaries enable affluent people to pay higher taxes and that this is the fairest system because it lessens the tax burden of the poor. ... Taxes do not discourage high earners from earning more, and the low tax rate encourages the poor to strive to earn more.
Answer:
See below
Explanation:
1. Purchase price variance
Standard price per pound = $25
Actual price per pound = $28.9
Quantity of aluminium purchased = Closing inventory + Quantity used - Opening inventory
= 34 + 3,470 - 54
= 3,450 pounds
Purchase price variance = (Standard price - Actual price) × Quantity purchased
= ($25 - $28.9) × 3,450
= -$3.9 × 3,450
= $13,455 (U)
2. Usage variance
Standard quantity of Aluminium for actual production
= 935 units × 4 pounds each
= 3,740 pounds
Usage variance = (Standard quantity of material used - Actual quantity used) × Standard price per unit
= (3,740 - 3,470) × $25
= 270 × $25
= $6,750 (F)
3. Direct labor rate variance
= (Standard rate per hour - Actual rate per hour)
× Actual hours for production
= ($40 - $41.9) × 4,400
= -$1.9 × 4,400
= $8,360 (U)
4. Efficiency variance
Standard hours for actual production
= 935 units × 5 per hour
=4,675 hours
Labor efficiency variance = (Standard hours for actual production - Actual hours for actual production) × Standard rate per hour
= (4,675 - 4,400) × $40
= 275 × $40
= $11,000 (F)
Answer:
A. True
Explanation:
Account Title Debit Credit
Cash 6500
Investment in CDW Corp. 6500
Answer:
Queensland 14.7%
New South Wales is 24.0%
Explanation:
This is a case of modified return on investment since the question was specific that the return on investment should in terms margin and assets turnover.
The first task would be to compute margin and turnover whereas the return on investment would be the multiples of both performance measures.
Margin =operating income/sales
Asset turnover=sales/average operating assets
operating income/sales*sales/average operating assets=operating income/average assets
This question also require proofing the above formula as I have done.
Margin Assets turnover ROI
Queensland$82,320/$784,000=10.5%$784,000/$560,000=1.4 14.7%
South Wales$118,800/$1,485,000=8% $1,485,000/$495,000= 24.0%
R0I=margin*assets turnover
Queensland=10.5%*1.4=14.7%
New south sales=8%*3=24%