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Radda [10]
3 years ago
15

Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets a

nd performance reports. During October, the company budgeted for 6,030 units, but its actual level of activity was 5,980 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Fixed element per month Variable element per unit Revenue - $ 31.20 Direct labor $ 0 $ 6.90 Direct materials 0 9.90 Manufacturing overhead 38,300 2.60 Selling and administrative expenses 25,900 2.10 Total expenses $ 64,200 $ 21.50 Actual results for October: Revenue $ 182,595 Direct labor $ 38,010 Direct materials $ 56,300 Manufacturing overhead $ 52,275 Selling and administrative expenses $ 38,170 The activity variance for selling and administrative expenses in October would be closest to:
Business
1 answer:
damaskus [11]3 years ago
5 0

Answer:

$288 (F)

Explanation:

In order to calculate activity variance we subtract actual results from the flexible budget. Moreover, the flexible budget is determined by taken into account both fixed and variable expense of the activity. This is shown below:

Flexible Budget of Selling and Administrative Expense = 25,900 + (2.1 x 5,980) = $38,458

Variance = 38,170 - 38,458 = $288 (F)

Because the actual expense is less than the flexible budget, the variance is favorable (F).

Note: Variable flexible budget is calculated by multiplying the variable rate with the actual units produced.

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When scheduling the audit work to be performed on an engagement, the auditors should consider confirming accounts receivable bal
Dvinal [7]

Answer:

The correct answer is letter "B": Internal control over receivables is good.

Explanation:

Only in the case the internal control of an organization is well-established enough so those account receivables (AR) are paid according to the terms agreed between the organization and its debtors, auditors could consider the balance of the account receivables at a provisional date.

7 0
3 years ago
The existence of different age groups within a company's target markets is referred to as
PolarNik [594]

Answer:

multigenerationalism.

Explanation:

Multigenerationalism is the term used to describe Marketing to different generations.

Only a few products will appeal to all age groups. A company will develop a variety of products to attract diverse age groups.  A Single product firm or one with few products may differentiate its goods or services to appeal to a wider target. Multigenerationalism exists when a business has different age groups in its target market.

5 0
3 years ago
The ______ of real estate markets makes it impossible to generalize the impact events in other areas will have on real estate va
goldenfox [79]

Answer: uniqueness

Explanation:

8 0
2 years ago
Suppose that you deposit $4,500 in your bank and the required reserve ratio is 18 percent. the maximum loan your bank can make a
NNADVOKAT [17]

Suppose that you deposit $4,500 in your bank and the required reserve ratio is 18 percent. The maximum loan your bank can make as a direct result of your deposit is 3690.

<h3>What exactly is a bank loan and the required reserve ratio?</h3>
  • A loan is a quantity of money that one or more people or businesses obtain from banks or other financial organizations in order to handle their finances in connection with anticipated or unforeseen circumstances.
  • By doing this, the borrower creates a debt that must be repaid with interest within a predetermined time frame.
  • The percentage of deposits that authorities mandate a bank maintain in reserves and refrain from lending out is known as the required reserve ratio.
  • If the required reserve ratio is 1 to 10, a bank can only lend out $0.90 of every dollar it has on deposit, but it must retain $0.10 in reserves.

Hence, The maximum loan your bank can make as a direct result of your deposit is 3690.

To learn more about the loan, refer to the following link:

brainly.com/question/25599836

#SPJ4

6 0
2 years ago
At Sunland Company, events and transactions during 2020 included the following. The tax rate for all items is 20%. (1) Depreciat
e-lub [12.9K]

Answer:

B. $1673920

Explanation:

First calculate Total loss

$2000000 loss from disposal of a component of the business and loss of $92400 from strike by the employees of a supplier

$2000000 + $92400 = $2,092,400

20% of the loss =

20% × $2,092,400

= $418,480

Therefore the effect of these events and transactions on 2020 net income net of tax would = Total loss - 20% of total loss

$2,092,400 - $418,480

= $1,673,920

4 0
3 years ago
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