Answer:
The Gourmand Cooking School
1. Planning Budget for September:
Fixed Cost Cost per Cost per Planning
per Month Course Student Budget
Instructor wages $ 2,960 $11,840
Classroom supplies $ 270 16,740
Utilities $ 1,220 $ 75 1,520
Campus rent $ 4,800 4,800
Insurance $ 2,300 2,300
Administrative expenses $ 3,900 $ 44 $ 7 4,510
Total $41,710
2) Flexible Budget for September:
Fixed Cost Cost per Cost per Flexible
per Month Course Student Budget
Instructor wages $ 2,960 $11,840
Classroom supplies $ 270 15,120
Utilities $ 1,220 $ 75 1,520
Campus rent $ 4,800 4,800
Insurance $ 2,300 2,300
Administrative expenses $ 3,900 $ 44 $ 7 4,468
Total $40,048
3. The Revenue and Spending Variances for September (based on flexible budget):
Planning Flexible Actual Spending
Budget Budget Variance
Revenue $55,180 $46,280 $52,280 $6,000 F
Instructor wages $11,840 $11,840 $11,120 $720 F
Classroom supplies 16,740 15,120 16,590 1,470 U
Utilities 1,520 1,520 1,930 410 U
Campus rent 4,800 4,800 4,800 0 None
Insurance 2,300 2,300 2,440 140 U
Administrative expenses 4,510 4,468 3,936 532 F
Total $41,710 $40,048 $40,816 $768 U
Explanation:
a) Data and Calculations:
Sales price per student = $890
Planned number of courses = 4
Planned total number of students = 62
Actual number of courses ran = 4
Actual total number of students = 56
Data concerning the company’s cost formulas appear below:
Fixed Cost Cost per Cost per
per Month Course Student
Instructor wages $ 2,960
Classroom supplies $ 270
Utilities $ 1,220 $ 75
Campus rent $ 4,800
Insurance $ 2,300
Administrative expenses $ 3,900 $ 44 $ 7
Actual Results:
Actual Revenue $ 52,280
Instructor wages $ 11,120
Classroom supplies $ 16,590
Utilities $ 1,930
Campus rent $ 4,800
Insurance $ 2,440
Administrative expenses $ 3,936
The planning budget for September, based on 4 courses and 62 students, calculated total expenses of $17,467 and expected revenue of $55,180. The flexible budget was recalculated based on having 4 courses and 56 students, with expenses of $17,629 and revenue of $49,840. Variances between the flexible budget and actuals showed an unfavorable revenue variance of $2,440 and expense variance of $1,387.
The planning budget would be based on the planned courses and student numbers. The calculation includes fixed costs, plus variable costs for each course and student. Considering 4 courses and 62 students, the total expenses come out to be $17,467, while expected revenue would be $55,180 ($890 per student).
The flexible budget would adjust the planned budget based on actual results. Here, with the same 4 courses but only 56 students, the adjusted expenses are $17,629, and the actual revenue is $49,840.
The revenue and spending variances for September can then be calculated by comparing actual results to the flexible budget. The revenue variance is $2,440 unfavorable ($52,280 - $49,840), while the spending variance is $1,387 unfavorable ($19,016 - $17,629).
#SPJ12
Answer:
Decimal placement
Explanation:
It is 8/10 because, in the decimal 0.8 , the 8 is in the tenths place. If it was 0.08 the fraction would be 8/100 and so on and so forth.
Answer:
$20,000
Explanation:
According to the given situation, the computation of stockholder equity is shown below:-
Stockholder equity = Service in cash + Sent bills
= $15,500 + $4,500
= $20,000
Therefore for computing the stockholder equity we simply applied the above formula so that the correct value could come
Hence, the stockholder equity is $20,000
2. Issued $1,050 of supplies from the materials inventory.
3. Purchased $25,100 of materials on account.
4. Paid for the materials purchased in the transaction (1) using cash.
5. Issued $30,100 in direct materials to the production department.
6. Incurred direct labor costs of $25,500, which were credited to Wages Payable.
7. Paid $21,600 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop.
8. Applied overhead on the basis of 110 percent of direct labor costs.
9. Recognized depreciation on manufacturing property, plant, and equipment of $5,100.
The following balances appeared in the accounts of Sunset
Products for March:
Beginning Ending
Materials Inventory $9,150 _____
Work-in-Process Inventory $16,600 _____
Finished Goods Inventory $65,100 $36,600
cost of goods sold $73,100
Prepare T-Accounts to show the flow of costs during the period from materials inventory through the cost of goods sold.
Sunset products
Journal entry
1. Dr Material 20500
Cr Account payable 20500
(Material purchased on account)
2. Dr work in process 1050
Cr Material 1050
(material issued)
3. Dr Material 25100
Cr Accounts payable 25100
( Material purchased on account )
4. Dr Accounts payable 20500
Cr Cash 20500
(Paid for material purchased on account)
5. Dr Work in process 30100
Cr Material 30100
( Direct material issued to production department)
6. Dr Work in process 25500
Cr Wages payable 25500
( Direct labor cost incurred)
7. Dr Factory overhead 21600
Cr Cash 21600
( Paid cash for utilities)
8. Dr Work in process (25500*110%) 28050
Cr Applied overhead 28050
(Applied overhead)
9. Dr Factory overhead 5100
Cr Accumulated depreciation 5100
(To record depreciation)
T-account
Work in process Material
Dr___________Cr____ DR ___________CR
16600------ 9150 -----
1050 ----- 20500 ---- 1050
30100 ----- 25100--- 30100
25500---
28050---
Accounts payable Cash
Dr____________Cr_ DR ___________Cr
--- 20500 ---- 20500
----- 25100 ----21600
20500-----
Factory overhead Wages payable
Dr ____________Cr Dr _____________Cr
21600---
-----25500
5100---
Applied factory overhead Accumulated depreciation
Dr_____________Cr Dr ___________Cr_
----28050 ---5100
Cost of goods sold Finished goods
Dr_____________Cr Dr ______________Cr
( open) 65100 ---
101300 --- 36600 (end)
Dr Finished goods 101300
Cr Work in process 101300
(move work in process to finished goods)
Dr Cost of goods sold 129800
Finishd goods 129800
(move finished goods to cost of goods sold)
Answer: A. Widget workers agree a large wage decrease so that none of them will have to be laid off.
Explanation:
There are activities that affects supply function cost, like wages cost going down, pushing prices down as well. In this case, with everything else constant, when cost go down the productivity per factor increase, making it possible to produce the same quantity at a lower price, or to produce more at a same price
b) false
The statement in question is true. Overhead variance is determined by the difference between actual and applied overhead costs. This kind of analysis helps in understanding cost inefficiencies and making future budgets.
The statement 'The total overhead variance is the difference between actual overhead costs and overhead costs applied to work done' is true. In cost accounting, overhead variance is indeed determined by the difference between the real, or actual overhead expenses for a certain period and the overhead costs which were anticipated or pre-applied to the work done in that same period. This kind of variance analysis helps the business to understand where and how their cost estimates were off, and make necessary adjustments for future cost predictions and budgeting. For example, if the actual overhead costs are higher than the applied overhead costs, it could signify inefficiency in the production process. Conversely, if the applied overhead costs are higher than the actual costs, it signifies cost efficiency.
#SPJ6
Answer:
b. rises.
Explanation:
In the case when the future income increased on permanently basis so as per the life cycle and the hypothesis of permanent income the current income rises because in this case the people rises their level of consumption patterns over their lifecycle
Therefore in the given situation, the rises is the answer and the same is to be considered