4. Compute the total period costs 5. Calculate the overhead variance and explain why it is favorable or unfavorable
Q: 5. The following accounts were taken from Nash Inc.'s trial balance at December 31, 2025. Net credit…
A: Bad debts expense: Bad debts expense is recognized in the books of the company when a debtor is…
Q: in its first year (2021), Barsky Corporation made charitable contributions totaling $70,000. The…
A: Charitable contributions refer to the deductions that are made for non-profit organizations. These…
Q: Assigning indirect costs to departments is completed by ________. applying the predetermined…
A:
Q: How does a company that manufactures hundreds of products determine each product's profitability?
A: Profit refers to the amount of money received from sales that is left after all expenditures,…
Q: LaRoe Lawns’ inventory increased during the year by $5.9 million. Its accounts payable increased by…
A: Formula, Merchandise purchase = (Cost of goods sold + Increase in inventory) Cash paid…
Q: What is the major difference between a for-profit and a not-for-profit organization?
A: Organization is considered to a be setting under which the group of people comes together and these…
Q: Dividends Per Share Internal Insights Inc., a developer of radiology equipment, has stock…
A: The dividend is paid to shareholders from the retained earnings of the business. The dividend is…
Q: Question 3: In preparing its accounts for the year ended 30 June 20X5, XXY plc has the following…
A: When a cost that is incurred will have been used, or expired in a year or less, it is typically…
Q: ntroduction and client background You are an audit senior in Riskam and Co and you are commencing…
A: Introduction The term "audit" often refers to a review of financial records. A financial audit is an…
Q: The trial balance of Building Blocks Child Care does not balance. Prepare the corrected trial…
A: Trial balance is a financial report showing the closing balance of all accounts. Every transaction…
Q: Miller Company eted its second year of operations. In Year 1, Miller Company produced 40,000 units…
A: Net Operating income under variable costing can be reconciled with net Operating income under…
Q: Fahad started a Marketing company on January 1, 2017. The following are the balances taken from the…
A: Financial statements are those which are prepared by the entity for depicting the financial health…
Q: Absorption and Variable Costing Income Statements During the first month of operations ended July…
A: The income statement can be prepared using various methods as Variable costing and absorption…
Q: Johnson, CPA, has been engaged to audit the financial statements of Rose, Inc., a publicly held…
A: The control environment describes how the company must operate its internal control system.
Q: Aqua, a South Carolina corporation, is a 20 percent partner in a Swiss partnership. This year, Aqua…
A: To avoid double taxation, the US Taxation authorities will provide credit on the taxes paid in other…
Q: HH Aaron Company is planning to sell Product X for $80 per unit. Variable costs are $50 a unit and…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Westar Co. formed a subsidiary, Star Co., in 2019 to retail a special line of Westar's products. All…
A: Usually, most companies buy 50% or more of the other company's shares, in this case, the buyer…
Q: Serenity, Gwen, Curly, Lane, Hugh, and Hamlet, formed Ace, Bebe and Connie (ABC) Partnership on…
A: There are six partners in the partnership that is :- 1) Serenity 2) Gwen 3) Curly 4)Lane 5) Hugh…
Q: Missing amount from an account On August 1, the supplies account balance was $1,025. During August,…
A: Introduction:- Supplies expense refers to the cost of consumables used during a reporting period. It…
Q: Billie is a nonexempt employee who earns $19 per hour and What is Billie's gross pay for the period?…
A: The gross includes the regular pay and the overtime pa of the employee. The employee is allowed to…
Q: Rocket Ltd, purchased a building from Moon Ltd. for $ 6.500.000. The payment was made as to 25% by…
A: JOURNAL ENTRY Journal Entry is the First Stage of Accounting Precedure. A journal entry is used…
Q: n accounting for by-products, when the by-products are sold for more than the estimated sales value,…
A: There are two options available to the entity. The entity can choose either of the following options…
Q: What is meant by bond issue cost and how do we account for such bond
A: As per the guidelines, only one question is allowed to be answered. Please resubmit the remaining…
Q: For an audit, what should be considered when understanding a client and analyzing the risks?
A: The audit risk model is the foundation of any audit. Audit risk is defined as ‘the risk that the…
Q: 3. Provide the justification why more companies are refining their costing system by using Activity…
A: Answer:- Activity based costing:- The activity-based costing approach is a way of allocating…
Q: 1) How to classify these expenses in an Income statement? What goes into an IS and what does not?…
A: 1. Items of Income statement: The income statement presents revenue, expenses, and net income. The…
Q: The following information relates to Vice Versa Ventures for calendar year 20XX, the company’s first…
A: An income statement is the profit and loss statement created to determine the net profit and loss a…
Q: What is debit and credit note?
A: A debit note is a document that is issued by a seller to a buyer. The debit note is used to inform…
Q: 6. A U.S. company executed a series of transactions in a foreign country during 2021. The…
A: Journal entries are the cornerstone of effective record-keeping. After being organised into various…
Q: Jalapeño Corporation and Habanero Corporation formed a partnership to construct a restaurant.…
A: Initial Basis is calculated at the time of beginning of partnership when the partners contribute…
Q: What factors should an auditor evaluate or consider when deciding whether to keep working with a…
A: Factors that an auditor should evaluate when deciding whether to keep working with a client: Where…
Q: How are overhead variances useful in nonmanufacturing settings? Can you think of an example?
A: All overhead variances, even those incurred outside the manufacturing function, are undoubtedly…
Q: The VAT payable by or refundable to Info Link Communications Ltd for the month of April 2022.
A: Value Added Tax (VAT)VAT is an indirect tax that is paid by the person who consumes taxable goods…
Q: What is the most difficult part of a shell company scheme from the fraudster's perspective? O a.…
A: A shell corporation is one that has neither major assets nor active commercial operations. Shell…
Q: While reporting under IFRS will not be required until 2015 or 2016, we are already beginning to see…
A: The International Financial Reporting Standards or IFRS are the accounting rules that provide…
Q: Epsilon Co. manufactures a product that is processed through two departments. The following…
A: In FIFO method, both beginning and ending inventory is converted to an equivalent units basis. In…
Q: GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The…
A: Calculation of taxable income Nicanor for tax year 2021: Pariculars Amount Amount Gross…
Q: Greet Construction completed the remaining 25%
A: As per standard accounting practices , revenue is recognised as and when…
Q: ndicate whether each of the following statements is true or false. When land with an old building…
A: 1. When land with an old building is purchased as a future building site, the cost of removing the…
Q: 34. On October 1, 2021, Alpha Company is interested in the business of Beta Company. Negotiations…
A: Goodwill is the excess of the consideration paid over the fair value of the net assets acquired. In…
Q: 2. An analysis and aging of Concord Corp. accounts receivable at December 31, 2025, disclosed the…
A: Net realizable value is the amount estimated to be collectable. Net realizable value is calculated…
Q: BE11.2 (LO 2), AP On May 10, Pilar Corporation issues 2,500 shares of $5 par value common stock for…
A: Common stock refers to the stock that does not have any preferential rights over other stocks. These…
Q: Indicate for each transaction the account(s) and amount(s) that should be debited and credited.…
A: Answer:- Debit meaning:- In accounting, a debit is generally known as an entry. In essence, it is…
Q: • LewisCo reports gross income of $111,550 and other property-related expenses of $66,800 and uses a…
A: Determination of Lewis Co's Taxable Income Particulars Amount Gross Income 111,550 (-)…
Q: Canada Duck sells a variety of winter coats to individual and retail stores. The company expects to…
A: Option 1: Canada Duck Rent Its Manufacturing Equipment at an Annual Cost of 125000 per year at…
Q: Fahad started a Marketing company on January 1, 2017. The following are the balances taken from the…
A: The financial statements of the business include the income statement and balance sheet. The income…
Q: William wants to establish a scholarship fund at his former university. He would like the recipients…
A: Present value (PV) is the present value of a future quantity of money or cash flow stream, assuming…
Q: Deciding a firm's capital structure can be understood as: a. a capital budgeting decision b. a…
A: 1. Capital budgeting decision: In Simple terms, A capital budgeting decision is both a financial…
Q: (a) Carla Vista Corporation did not declare any dividends in 2022 or 2023. What is the amount of…
A: Dividend is considered as the income for the shareholders. It is paid by the company out of the…
Q: breifly explain the difference between PAYE and social responsibility tax.
A: Tax is the amount of money that a government requires from its citizens to be paid in accordance…
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Step by step
Solved in 2 steps
- The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22The Rock Company produces basketballs. It incurred the following costs during the year. Direct materials Direct labor Fixed manufacturing overhead Variable manufacturing overhead Selling costs $11,520 $20,480 $9,600 $23,520 $16,800 What are the total product costs for the company under absorption costing? Total product costs
- Montana Company produces basketballs. It incurred the following costs during the year. Direct materials $14,169 Direct labor $25,169 Fixed manufacturing overhead $10,280 Variable manufacturing overhead $31,954 Selling costs $20,761 What are the total product costs for the company under variable costing? Total Product Cost $ _____.Walton Company incurred manufacturing overhead cost for the year as follows. Direct materials $ 39.00 /unit Direct labor $ 27.40 /unit Manufacturing overhead Variable $ 11.10 /unit Fixed ($18.80/unit for 1,900 units) $ 35,720 Variable selling and administrative expenses $ 10,360 Fixed selling and administrative expenses $ 15,500 The company produced 1,900 units and sold 1,400 of them at $182.00 per unit. Assume that the production manager is paid a 1 percent bonus based on the company’s net income. Required Prepare an income statement using absorption costing. Prepare an income statement using variable costing. Determine the manager’s bonus using each approach. Which approach would you recommend for internal reporting?Calgary Manufacturing company makes chairs and desks. The following costs were incurred in making its products during its first year of operation. Chairs Desks TotalDirect Materials $ 7,000 $9,000 $16,000Direct Labor 15,000 11,000 26,000 Also the company incurred $19,760 of employee benefits cost. Since these overhead costs are driven by the use of labor they are allocated to the products based on the direct labor dollars. Based on this information alone the total cost of making chairs is Note: Do not round intermediate calculation
- Swift Co. produces footballs. It incurred the following costs this year: Direct materials $40,000 Direct labor 31,000 22,000 Fixed manufacturing overhead 38,000 Variable manufacturing overhead 23,000 Fixed selling and administrative expenses 14,000 Variable selling and administrative expenses What are the total product costs for the company under absorption costing? Total product costs under absorption costing1. Allocating activity cost pools to products Burgandy Corporation makes plastic and wooden picture frames. The company has assigned $107,000 in monthly manufacturing overhead costs to two cost pools as follows: $67,000 to power costs, and $40,000 to production set-up costs. Additional monthly data are provided below: Sales revenue Direct materials.. Direct labor.... Machine hours.. Production runs Units produced and sold. Plastic Wooden Frames Frames $254,000 $179,000 $101,000 $38,360 $53,360 $92,720 107,420 7,580 35 29,000 65 59,000 Power costs are allocated to products using machine hours as an activity base. Set-up costs are allocated to products based on the number of production runs each product line requires. (a) Allocate manufacturing overhead from the activity cost pools to each product line. (b) Compare the total per-unit cost of manufacturing plastic frames and wooden frames. (c) On a per-unit basis, which product line appears to be most profitable?' 1. Cost of goods manuiu/d; prime and converslon costs. Mat Company's pertaining to Mat Company's inventories and production tor March is as folluws: urchases of materials during March totaled $110,000, and the cost of goods sold for larch was $345,000. Factory overhead was 50% of direct labor cost. Other inlormation Parchases of materials during March totaled $110,000, and the cost of pertaining to Mat Company's inventories and production tor March is as Beginning Ending $102,000 40,000 20,000 Inventories: Finished goods.. Work in process... Materials... $105,000 36,000 26 000 ..... Required: (1) Prepare a schedule of cost of goods manutactured for March (2) Compute the prime cost charged to work in process during March. (3) Compute the conversion cost charged to work lin process during March
- The company has the following financial information:Manufacturing overhead- P30,101,800Increase in raw materials- P2,430,000Decrease in work in process- P590,000Increase in finished goods- P1,320,400Manufacturing overhead amounts to 50% of direct labor, and the direct labor and manufacturing overhead combined equal 50% of the total cost of manufacturing.How much is the cost of goods sold? Choices: • P181,200,800 • P179,880,400 • P177,590,800 • P180,020,800Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($308,040 906,000 units) Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost. Variable overhead cost Pixed overhead cont 1,220,000 11,200,000 $ 6,720,000 305,000 $3,233,000 $540,000 $361,000 Required: Calculate Parker Plastic's direct materials price and quantity variances. Direct Material Price Variance Direct Material Quantity Variance Standard Quantity 8 square foot 0.26 hour 0.26 hour Standard Price (Bate) $0.63 par aquare foot $10.50 $ 1.50 per hour per hour Note: Do not round Intermediate calculations. Indicate the effect of each variance by…Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($403,040 916,000 units) Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,100,000 11,700,000 $ 12,870,000 Direct Labor Rate Variance Direct Labor Efficiency Variance 314,000 $3,799,400 $ 890,000 $ 371,000 Standard Quantity 9 square foot 0.3 hour 0.3 hour Standard Price (Rate) $ 1.08 per square foot $ 11.30 per hour $ 2.80 per hour Required: Calculate Parker Plastic's direct labor rate and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by…