Answer:
See answers below
Explanation:
a. Direct materials & supplies $40,000 = $40,000 × 110%
= $44,000 × 20,000/25,000
= $35,200
Employee costs = $2,900,000 × 105%
= $3,045,000 × 20,000/25,000
= $2,346,000
Variable overhead = $600,000 × 100%
= $600,000 × 20,000/25000
= $480,000
Fixed overhead = $700,000 × 105%
= $735,000
b. Total costs per unit year 2 =
$3,596,000 / 20,000
= $179.81
Answer:
Decision tree
Explanation:
The decision tree provides the alternatives and allocated the value and weight for each and every alternative in order to become easier to take the decision that depend on the amount and weight allocated to each alternative
It helps in decision making
So as per the given situation the decision tree is the answer
Hence, the second option is correct
Answer:
Turnover index = 17 % (Approx)
Explanation:
Given:
Total number of house = 345
Number of house sold = 58
Find:
Turnover index
Computation:
Turnover index = [Number of house sold/Total number of house]100
Turnover index = [58/345]100
Turnover index = [0.168115]100
Turnover index = 16.8115
Turnover index = 17 % (Approx)
Answer:
Contingent gains will not be reported on the financial statements of year 4.
Explanation:
As the Calim amount will benefit the Smith Co. so it is classified as the gain. In year 4 there is a probability of estimated gain in the range of $75,000 to $150,000. This is an contingent gain which is not realized until the end to year 4. As $100,00 is received in year 5, so it will not be reported in the financial statement of year 4. The contingent gain are not reported on the financial statements. The Revenues / Gains are reported when they are realized and Expenses / losses are reported when they are expected to incurr.
The accounting concepts that provide guidance for recording the following business events are as follows. The business transactions are numbered from (a) to (e) below:
1) Materiality Concept is applied because the impact of the cost of the tape dispenser being "expensed" is not significant on the reader of the financial statement.
2) Entity Concept requires separation between the finances of the owner from the finances of the business. The business is a separate economic unit distinct from the sole proprietor.
3) Prudence Concept demands that expenses (like the bad debt written off) and liabilities are not underestimated and revenues and assets should not be overestimated.
4) Historical Cost Concept: Generally accepted accounting principles require the initial recognition of an asset at its purchase cost and not fair value.
5) Accrual Concept and Matching Principle: The accrual concept requires that expenses that have been incurred for a period should be accounted for in that period, whether cash payment is made or not. The matching principle states that expenses (Van Repair Expense) should be matched to the revenue that they generate.
Thus, accounting concepts are the basic assumptions, rule, and principles for recording business transactions and events and preparing accounts and financial statements.
Learn more about accounting concepts at brainly.com/question/24425761
