Answer:
B. Purchase Price of the Old Vehicle
Explanation:
Step 1: Consider the relevant transaction from the old vehicle
The Purchase price of the old vehicle is considered a historical cost and in most situations, especially for accounting purposes, this amount has undergone depreciation from the very first year the old vehicle was bought.
Instead of concentrating on the purchase price of the old vehicle, the only transaction from that old vehicle that is worth considering is the Proceeds from its disposal which can serve as part of the payment for the new fire truck to be purchased.
Step 2: Consider the relevant transactions for the new vehicle
One of the very first transactions that are relevant for the new vehicle is the purchase price. A very expensive new fire truck can cancel out the benefits of its acquisition since the main essence of acquisition is to save cost.
Step 3: Consider the Expected Operating Expenses that can be saved by the new truck
This the main reason advanced by the CIty of San Diego to get a new fire truck. Hence, a fire truck that tends to increase maintenance and operating cos will not fit into the decision.
Based on these explanations, therefore, the only transaction that is not relevant to this decision is the purchase price of the old vehicle
What are you asking in this question I’m just confused, could you write it in the comments
Answer:
c
Explanation:
services are something intangible that you sell
Question
Monty Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Monty's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides. Monty's cost accounting team informs you that it allocates fixed overhead based on machine hours. This period production was budgeted at 35
0 slides
. Budgeted and actual production data follows:
Standard fixed overhead cost per machine hour $5.00
Standard machine hours per slide 9
Actual production 390
Actual fixed overhead cost $20,000
What is the fixed manufacturing overhead volume variance in this period?
Answer:
Fixed overhead volume variance $1800 Favorable
Explanation:
Standard fixed cost per unit = cost per hour × standard hours
= $5.00 ×9 = $45
Units
Budgeted production unit 350
Actual production unit <u>390</u>
Volume variance in (units) 40
Standard fixed over cost per unit <u>× $45</u>
Fixed overhead volume variance <u> 1800 </u>Favorable
Fixed overhead volume variance $1800 Favorable
<span>The Bureau of Labor Statistics is usually a good starting point. This website/database allows for all types of jobs and industries to be researched. Within these titles, the career advancement data, statistics on compensation, and types of jobs within the overall umbrella are given.</span>
