What is the scope of AS-26

A company is formulating its marketing expense budget for the last quarter of the year. Sales in units for the third quarter amo

iren2701 [21]

Answer:

a. $29,496

b. $21,996

Explanation:

a. The Computation of budgeted marketing expense for the fourth quarter is shown below:-

Sales units 2,640

(2400 × 110%)

Variable marketing expenses per unit sold $0.15

Total Variable marketing expenses $396

Fixed Marketing expenses $18,000

Salaries ($6,000 × 3)

Depreciation ($2,500 × 3) $7,500

Insurance ($1,200 × 3) $3,600

Total Fixed marketing expenses $29,100

Budgeted marketing expense

for the fourth quarter $29,496

b. Estimated cash payment for marketing expenses for the fourth quarter = Budgeted marketing expense for the fourth quarter - Depreciation

= $29,496 - $$7500

= $21,996

7 0

3 years ago

Calculating the Predetermined Overhead Rate, Applying Overhead to Production, Reconciling Overhead at the End of the Year, Adjus

Usimov [2.4K]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Estimated:

Overhead $160,000

Direct labor hours 80,000

Han uses normal costing and applies overhead based on direct labor hours.

For January, direct labor hours were 8,150.

By the end of the year, Han showed the following actual amounts:

Overhead $166,000

Direct labor hours 79,600

Assume that the unadjusted Cost of Goods Sold for Han was $176,000.

1) Predetermined overhead rate= total estimated overhead for the period/ total amount of allocation base

Predetermined overhead rate=160000/80000= $2 per hour

2) Applied overhead (January)= Predetermined overhead rate*actual hours= 2*8150= $16,300

3) Applied overhead for the year= 2*79600= $159,200

Over/under applied= actual overhead - applied overhead= 166000 - 159200= 6800 underapplied

4) COGS= 176000

Underapplied overhead= 6800

COGS adjusted= $182,800

3 0

2 years ago

The worlds first modern bank opened during the 14th century in this country

Naily [24]

The worlds first and modern bank opened during the 14th century in Florence, Italy and later many branches were established in other parts of Europe. Even though the banking system became very crucial in the 14th century, the Bardi and Peruzzi families were able to start and establish several branches during this century.

6 0

3 years ago

Suppose that you read in The Wall Street Journal that a bond has a coupon rate of 9 percent, a price of 71 3/8, and pays interes

olga nikolaevna [1]

Answer:

This question is missing the options given below:

A. 11%

B.13%

C. 15%

D. 17%

E. 20%

The correct answer is option B,the bond current yield is 13%

Explanation:

Bonds Current Yield = Year one cash flow / Current Price x 100 = 9 / 71.375 x 100 = 12.60% or approximately 13%

Note that 71 3/8 is the same as 71.375% as 3/8 gives 0.375 and when added to 71% gives 71.375%

The year cash flow is calculated as :9% of bond par value($100)=$9

8 0

3 years ago

An analyst estimates the index model for a stock using regression analysis involving total returns, not the excess return. The e

Angelina_Jolie [31]

Answer:

The true β of the stock is 0%

Explanation:

6% = a + 12% (1 − 0.5); a = 0%.

7 0

3 years ago

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