Carlson Fashions uses standard costs for Its manufacturing division. From the following data, calculate the fixed overhead volume variance.-Actual fixed overhead $40,000-Budgeted fixed overhead $21,000-Standard overhead allocation rate $6-Standard direct labor hours per unit 4 DLHr-Actual output 2,100
Answers
Answer:
Overhead volume balance= $29,400 unfavorable
Explanation:
Giving the following information:
From the following data, calculate the fixed overhead volume variance.
-Actual fixed overhead $40,000
-Budgeted fixed overhead $21,000
-Standard overhead allocation rate $6
-Standard direct labor hours per unit 4 DLHr
-Actual output 2,100.
Overhead volume variance= budgeted fixed overhead - fixed overhead applied= 21,000 - 50,400= 29,400 unfavorable
Related Questions
Franklin, Inc., has an inventory turnover of 18.9 times, a payables turnover of 11.2 times, and a receivables turnover of 9.7 times. What is the company's cash cycle
If a purchasing agent must put up a cash deposit for construction services, for security purposes, instead of giving it directly to the contractor, he or she may insist that it be placed in a(n):
Biochemical Corp. requires $720,000 in financing over the next three years. The firm can borrow the funds for three years at 10.20 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 8.50 percent interest in the first year, 12.90 percent interest in the second year, and 9.75 percent interest in the third year. Assume interest is paid in full at the end of each year.Required:a. Determine the total interest cost under each plan.b. Which plan is less costly? i. Short-tem variable-rate plan ii. Long-term fixed-rate plarn
The gross profit method is most commonly used to:_______ a. estimate the cost of inventory from incomplete records. b. determine the exact cost of inventory. c. develop a sales budget. d. replace the year-end physical inventory.
Answers
Answer:
Operating Activity
Explanation:
The Indirect method, reconciles the Operating Profit to the Operating Cash Flow by adjusting the following items (1) Non Cash flow items previously added or deducted from Operating Profit and (2) Changes in Working Capital items.
Amortization of bond premium is an item of non-cash flow that was previously deducted from Operating Profit and needs to be added back.
Answers
Answer:
Well, it depends on the product. But, I'd say, first, an idea for the product. Creating/designing and refining the product is next. Then, when finally satisfied, begin mass production
Explanation:
b. The absence of a risk factor guarantees freedom from the disease.
c. The fewer risk factors for a disease, the better the chances for good health.
d. Interventions must be targeted to each individual risk factor.
e. Risk factors tend to be short-lived, so their presence does not predict long-term risk ofdisease.
Answers
Answer:
C. The fewer the Risk Factors for a Disease the better the Chances of a Good Health
Explanation:
Understanding Risk factors in health is very important especially when trying to find ways to ensure good health. Risk factors are important in many important health decisions. For instance, it is important to know family and personal risks, risks and benefits of a treatement and even the risk factors for a disease. All these assist in making better decisions both by the individual and the medical practitoner
A disease's risk factor represent those situations, living conditions, habits, choices etc that can heighten the probability of getting a certain disease. A disease's risk factor represents those things or factors that tend to increase the chances of contracting such a disease, while it doesn't necessarily mean they will definitely occur, the higher these factors, then the higher the possiblity of contracting it and the lower the risk factors then the lower the possibility of contracting the disease.
For instance, it is known that smoking cigarette is a risk factor especially for lung cancer, however, family history, exposure to second hand smoke as well as radon gas are also factors that can contribute to lung cancer. These repesent the risk factors.
Risk factors are divided into five:
- Physiological
- Behavioural
- Demographic
- Environmental
- Genetic.
Answers
The cost to produce today = 74000
At a discount of 12%, the future value of costs in 5 years = PV*(1+r)^n where PV = 74000, r= 12% = 0.12 and n = 5 years = 5
The value of costs in 5 years = 74000*(1+0.12)^5
The value of costs in 5 years = 74000*1.12^5
The value of costs in 5 years 130,413.28
Price in 5 years = 138,000
Profit = 138,000-130,413.28 = 7,586.72
The profit the firm will make on this asset (considering time value of money) = $7,586.72
Answers
Answer:
B. 37.8%, 10.8%, 162.5%
Explanation:
1. Changes in Net Sales
We know,
Percentage changes in Net sales from previous year to current year =
Given,
= $62,000
= $45,000
Therefore,
Percentage changes in Net Sales =
Percentage changes in Net Sales = 37.8% (Rounded to 1 decimal Places)
Therefore, Net sales changes 37.8% from 2016 to 2017.
2. Changes in Cost of Goods sold
We know,
Percentage changes in Cost of goods sold from previous year to current year =
Given,
= $41,000
= $37,000
Putting the value in the above formula,
Percentage changes in COGS =
Percentage changes in COGS = 10.8%
Therefore, Cost of goods sold changes 10.8% from 2016 to 2017.
3. Changes in Gross Profit
We know,
Percentage changes in Gross Profit from previous year to current year =
Given,
= $21,000
= $8,000
Hence,
Percentage changes in Gross Profit =
Percentage changes in Gross Profit = 162.5%
Therefore, Gross Profit changes 162.5% from 2016 to 2017.
(a) Prepare the amortization schedule (effective interest method) through October 1, 2007.
(b) Prepare the adjusting entry for December 31, 2007. Use the effective-interest method.
(c) Compute the interest expense to be reported in the income statement for the year ended December 31, 2007.
Answers
Answer:
a)
period interest interest discount amortized bond's
payment expense on BP discount carrying value
0 49,320.60 750,679.40
1 32,000 37,533.97 43,786.63 5,533.97 756,213.37
2 32,000 37,810.67 37,975.96 5,810.67 762,024.04
3 32,000 38,101.20 31,874.76 6,101.20 768,125.24
4 32,000 38,406.26 43,786.63 6,406.26 774,531.50
b)
December 31, 2017, accrued interest on bonds payable
Dr Interest expense 19,050.60
Cr Interest payable 16,000
Cr Discount on bonds payable 3,050.60
c)
total interest expense year 2007:
($37,533.97/2) + $37,810.67 + ($38,101.20/2) = $18,776.99 + $37,810.67 + $19,050.60 = $75,638.26
Explanation:
the market price of the bonds:
$800,000 / 1.05¹⁰ = $491,130.60
$32,000 x 8.1109 (PV annuity factor, 4%, 10 periods) = $259,548.80
market price = $750,679.40
discount on bonds payable $49,320.60
discount amortization first payment = (750,679.40 x 0.05) - 32,000 = 5,533.97
discount amortization second payment = (756,213.37 x 0.05) - 32,000 = 5,810.67
discount amortization third payment = (762,024.04 x 0.05) - 32,000 = 6,101.20
discount amortization fourth payment = (768,125.24 x 0.05) - 32,000 = 6,406.26
Final answer:
The interest income and discount amortized are calculated based on the effective-interest method. The adjusting entry debits Bond Interest Expense and credits Discount on Bonds Payable. The income statement reports the interest expense as the sum of cash paid and discount amortized.
Explanation:
The interest on Logan Corporation's bonds is paid semi-annually, therefore the interest periods will be six months. The effective-interest method is used to amortize the premium or discount on these bonds, and it calculates interest expense based on the market rate and the outstanding balance of the bond.
For October 1, 2006, Logan Corporation issued $800,000 of 8% bonds. However, they were sold to yield 10% effective interest, which is annual, for six months this is 5% (10%/2). So, the interest income for the first period will be $800,000×5%=$40,000.
With actual cash received being $800,000×8%/2 = $32,000. The difference between the interest income and the cash received is the discount amortized.
For April 1, 2007, the carrying value of the bond will be the face value subtract the discount amortized. The remaining steps are essentially a repetition of the first period until October 1, 2007.
For adjusting entry on December 31, 2007, debit the Bond Interest Expense for the total discount amortized and credit Discount on Bonds Payable.
The interest expense on the income statement is the Bond Interest Expense, which includes both the cash paid and the discount amortized.
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