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juin [17]
3 years ago
13

Mondo Snow Removal's cost formula for its vehicle operating cost is $1,060 per month plus $429 per snow-day. For the month of Ja

nuary, the company planned for activity of 11 snow-days, but the actual level of activity was 13 snow-days. The actual vehicle operating cost for the month was $6,310. The activity variance for vehicle operating cost in January would be closest to:
Business
1 answer:
insens350 [35]3 years ago
7 0

Answer:

Activity variance = $858 unfavorable

Explanation:

The activity variance occurs as result of the difference between the actual level of work (activity) done and the budgeted level of  work as planned.

                                                                  $

Planned budget (1060 + (429× 11))   = 5,779

Flexible budget (1060 + (429 ×13)   = <u>6,637 </u>

Activity variance                               <u>     858  unfavorable</u>

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Explanation:

This question is incomplete

Kindly find the information related to the question

The following is taken from the Colaw Company balance sheet. line premisam amortization, COLAW COMPANY Balance Sheet (partial) December 31, 2017 and redemption of bonds LO 5) Current liabilities Interest payable (for 12 months from January 1 to December 31) 210,000 Long-term liabilities Bonds payable, 7% due January 1, 2028 Add: Premium on bonds payable $3,000,000 200,000 3,200,000 682 15 Long-Term Liabilities Interest is payable annually on January 1. The bonds are callable on any annual interest date. Colaw uses straight-line amortization for any bond premium or discount. From December 31, 2017, the bonds will be outstanding for an additional 10 years (120 months).

The journal entry is as follows

Bond payable $1,200,000

Premium on bond payable $72,000

              To Cash $1,212,000     ($1,200,000 × 101%)

               To Gain on redemption of bonds $60,000

(Being the redemption of the bond is recorded)

The premium on bond payable is

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