Answer:
$88,000
Explanation:
(1,000 units × $100 estimated warranty cost per unit) $100,000
Therefore:
($100,000 - $12,000 actual warranty costs incurred during the first year) $88,000
Liability for warranty costs is recognized when the related revenue is recognized. In a situation were the warranty covers a period longer than the period in which the product is sold, the entire liability for the expected warranty costs must be recognized on the day the product is actually sold.
Therefore in the first calendar year a warranty liability of $100,000 (1,000 units × $100 estimated warranty cost per unit) was recognized. Actual payments for warranty costs reduce the amount of warranty liability recognized. Thus, at the end of the first calendar year, the balance of the warranty liability is $88,000 ($100,000 warranty liability initially recognized - $12,000 actual warranty costs incurred during the first year).
Answer and Explanation:
The computation is given below:
a)
Direct labor rate variance = (Actual rate - Standard rate) × Actual hours
= ($22.50 - $23) × 8,450 hours
= -$4,225.00 Favorable
Direct labor time variance = (Actual hours - Standard hours) × Standard rate
= (8,450 hours - 8,400 hours) × $23
= $ 1,150.00 Unfavorable
Total direct labor cost variance is
= Direct labor rate variance + Direct labor time variance
= $4,225 Favorable + $1,150 Unfavorable
= -$3,075.00 Favorable
b. In the case when the employees are not much experienced or they are poorly trained so the less experience cause to less performance due to which the actual time needed should be more than the standard one
Answer:
If the products are sold seperately they would sell for $100,000:
Software $70,000 = 70%
Technical Support $30,000 = 30%
Sarjit Systems sold the software for $80,000
Software 70% of 80,000 = $56,000
Technical Support 30% of 80,000 = $24,000
We will record technical support as deferred revenue since the customer pays for the support upfront before receiving the service.
The journal entry would be:
Account Title Debit Credit
Cash 80,000
Sales Revenue 56,000
Deferred Revenue 24,000
Answer:
Direct material used= $383000
Explanation:
Giving the following information, we need to calculate the amount of direct material used in production:
Beginning Work-in-Process Inventory $ 25000
Ending Work-in-Process Inventory 57000
Beginning Direct Materials 80000
Ending Direct Materials 59000
Purchases Materials 362000
Direct Labor 472000
Indirect Labor 18000
Depreciation on Factory Plant and Equipment 23000
Plant Utilities and Insurance 268000
Direct material used= beginning inventory direct material + purchase direct material - ending inventory direct material
Direct material used= 80000 + 362000 - 59000= $383000
Answer: Controlling her surroundings
Explanation: The surrounding control is a technique which is used for effective communication. This is implemented from the end of receiver.In this strategy, the receiver tries to control the environment they work in so they can properly focus on the most important information.
In the given case, Katelyn ignores all other messages she had to receive so that she can give all her attention to the conference call.
Hence, we can conclude that Katelyn is using surrounding control technique.
