Answer: $5,600 Favorable
Explanation:
Total Overhead Variance is a method of measuring if the company is spending more than it is supposed to on overhead. It checks this by computing the difference between the Actual Overhead spent and the Budgeted/ Standard Overhead that it was supposed to spend.
If the Actual Overhead is more than the Standard Overhead the Variance is Negative, if the reverse is true then the Variance is Positive.
The formula for the Variance given the details in the question is,
Total Overhead Variance = Standard total Overhead - Actual Overhead
= (Standard hours * Pre-determined Overhead rate) - Actual Hours
= ( 20,600 * 6) - 118,000
= 123,600 - 118,000
= $5,600
The Standard Total Overhead is more than the Actual Total Overhead so the Variance is Positive as Pine Company spent less than it thought it would.
Answer:
The answer is e. 40,500.
Explanation:
To find out the balance for account payable in 2014, we need to recall to the Accounting equation:
Asset = Liabilities + Owner's Equity
Applying in the question, we replace the balance of asset items, liability items and equity items in 2014 to find the answer:
Account Receivable + Cash + Inventories + Net Fixed Asset = Account Payable + Accruals + Common Stock + Long term debt + Notes payable + Retained earnings
=> 44,500 + 98,000 + 60,800 + 121,500 = Account Payable + 16,200 + 81,000 + 89,100 + 37,200 + 60,800 <=> Account Payable = $40,500.
So, the answer is e. 40,500.
Answer:
The correct answer is letter "B": Is a method used to evaluate changes in financial data across time.
Explanation:
Horizontal analysis compares the balance sheet or income statement of an entity over two or more periods. It is called horizontal analysis because it arranges numbers side by side to make direct comparisons so that improvements can be seen more easily.
Answer:
Explanation:
(a) The computation of the cost of goods sold is shown below:
= Beginning inventory + Purchase of new merchandise - ending inventory
= $4,000 + $22,000 - $4,500
= $21,500
(b) In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:
