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LuckyWell [14K]
2 years ago
5

The following data relate to labor cost for production of 20,000 cellular telephones: Actual: 8,450 hrs. at $22.50 Standard: 8,4

00 hrs. at $23.00.
A. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance.
B. The employees may have been less-experienced or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was___than standard.
Business
1 answer:
kirill115 [55]2 years ago
3 0

Answer:

A. $4,225 Favorable

$1,150 Unfavorable

$3,075 Favorable

B. Higher; Less

Explanation:

Calculation to determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance.

A. Calculation for Direct Labor rate variance using this formula

Direct Labor rate variance = (Standard rate - Actual rate) * Actual hours

Let plug in the formula

Direct Labor rate variance=($23 - $22.50) * Direct Labor rate variance=8,450

Direct Labor rate variance=$0.50 * $8,450

Direct Labor rate variance=$4,225 Favorable

Calculation for Direct Labor time variance using this formula

Direct Labor time variance = (Standard hours - Actual hours) * Standard rate

Let plug in the formula

Direct Labor time variance=(8,400 - 8,450) * $23

Direct Labor time variance=-50 * $23

Direct Labor time variance= $1,150 Unfavorable

Calculation for Total direct labor cost variance using this formula

Total direct labor cost variance = Labor rate variance + Labor time variance

Let plug in the formula

Total direct labor cost variance=$4,225 + (-$1,150)

Total direct labor cost variance= $3,075 Favorable

B.The employees may have been less-experienced or poorly trained, thereby resulting in a HIGHER labor rate than planned. The lower level of experience or training may have resulted in more efficient performance. Thus, the actual time required was LESS than standard.

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3 years ago
On January 1, Applied Technologies Corporation (ATC) issued $550,000 in bonds that mature in 10 years. The bonds have a stated i
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Answer:

1. $550,000

Explanation:

1. It is given in the question that the stated interest rate and the market interest rate both are having the same rate, i.e, 12%.

Hence, the bonds are issued at the face value that is $550,000.

2. The Journal entries are as follows:

(i) On January 1,

Cash A/c      Dr. $550,000

To bonds payable               $550,000

(To record the bond issuance)

(ii) On December 31,

Interest Expense A/c   Dr.   $66,000

To cash A/c                                          $66,000

(To record the first interest payment on December 31 assuming no interest has been accrued earlier in the year)

Workings:

Interest expense = $550,000 × 12%

                             = $66,000

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internal causes

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Based on the information provided within the question it can be said that this is most likely to be attributed to internal causes. This term refers to various different attributes within an individual such as their traits, abilities, or even emotional feelings from different events in their lives. These factors are what are most likely affecting Janelle in her new job.

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According to the narration given in the above statement the general manager is of the view that too much layer of manager will hamper the decision making and effective delegation of work.

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8 0
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Erica and Brett decide to form their new motorcycle business as an LLC. Each will receive an equal profits (loss) interest by co
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Answer:

$58,500

Explanation:

The outside basis is defined as the tax basis that a partner has on the partnership. To find it, the value of all the resources contributed by the partner is taken and the debt relief and any debt assigned is subtracted. To solve this exercise, we should follow these steps:

1. Determine the contributed capital.

According to the problem statement, Brett provided cash ($ 9,500) and a building (here the value of the adjusted base, $ 39,000, is taken). Therefore, the total contributions are $48,500.

2. Calculate capital increases.

The partnership obtained a loan for $59,000, which was shared equally among the partners. Therefore, Brett received 50%, that is, $29,500.

Now, we must add the contributed capital plus capital increases:

48,500+29,500=78,000

3. Calculate mortgage debt issues.

The nonresource mortgage is 44,000, a value that exceeds the basis of the contributed property. In that case, the surplus is taxed to the contributing partner. To determine it, simply subtract the nonresource mortgage less adjusted basis of the building:

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Therefore, mortgage debt issues are equivalent to:

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We add the contributed capital plus capital increases plus mortgage debt issues:

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4. Subtract debts.

The partnership assumes the nonrecourse mortgage (which is computed as a debt) for 44,000. Because this component is not covered entirely by Brett, then this amount must be deducted from his individual tax base.

Therefore:

102,500-44,000=58,500

58,500 is Brett´s outside tax basis in his LLC interest.

On a balance sheet, we can see it as follows:

Particulars                                Amount in $

Cash                                                9,500

+Adjusted basis of the                39,000

building

+50% profit sharing ratio            29,500

+Nonrecourse mortgage               5,000

less adjusted basis

+Remaining mortgage on            19,500

building

TOTAL                                             102,500

-Debt on building                          (44,000)

Outside tax basis                          58,500

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