Requirement: Compute for the following variances 1. Fixed Spending Variance 2. Variable Spending Variance 3. Efficiency Variance
Q: Federal excise tax of 0.2% State of Kansas excise tax of 0.4
A: Please see the attached solution.
Q: On October 1, 2021 Delta Insurance Srl sold (and received the payment) a six-month insurance to Teta...
A: Solution Concept Unearned revenue When the payment is received for the income that has not yet been ...
Q: 14. Paul Williams Company presented the following information pertaining to its investments in marke...
A: As specified in question the solution of 14 and 15 is given below. Unrealized gain or loss in the ...
Q: Southern Rim Parts estimates its manufacturing overhead to be $495,000 and its direct labor costs to...
A: The inverse of underapplied administrative costs is overapplied overhead. When actual expenses are l...
Q: Which company takes longer to sell its inventory? Support your answers with figures.
A: Number of days in inventory = 365 days * ((Opening inventory + Closing inventory)/2)/Cost of goods s...
Q: Discuss capital gains tax using the names and amounts given.
A: Capital gains which are subject to capital gains tax is the tax amount which the company or the tax ...
Q: Counter balancing error is sometimes referred to as: which of the following? a Compensating errors ...
A: Rectification entry means where some error has been done in past and we need to rectify that errors....
Q: Mahmood establishing his photography studio December 1, 2021. During the first month of operations, ...
A: Introduction: Ledgers: First all the transactions are to be recoded in Journals and then all the jou...
Q: Your answer is partially correct. Buffalo Corporation had the following 2020 income statement. Reve...
A: The question is related to Cash Flow Statement. The Cash Flow Statement is summary of Cash Receipts ...
Q: On December 31,2020, the Statement of Financial Position of BEA Partnership shows the following data...
A: Solution Working note Total capitalization after admission of Russia =2000000 Capital interest of Ru...
Q: Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their part...
A: In partnerships, realization is the process by which all existing assets except cash are sold and li...
Q: he total cost of work in process, end is:
A: Equivalent units means where the some goods remain incomplete at the end of process and we need to c...
Q: Riverbed Corp. uses the direct method to prepare its statement of cash flows. Riverbed trial balance...
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three sub...
Q: Now what is FASB Codification 740-10-25-6? ( predecessor standard SFAS 109). How the temporary diffe...
A:
Q: For the month of January 2022, PBB Company reported the following production data for Finishing Depa...
A: Equivalent units concept comes in to existence when some units remain incomplete at the end of proce...
Q: help solve the question below; Actual goods produced 100,000 units Cost of goods K1000/unit contr...
A: Answer 1 :- Following are three types of productivities that organizations usually analyze:- 1 - P...
Q: Net income $127,530 Enterest expense 11,093 Average total assets 2,069,000
A: Return on assets is calculated by dividing Earning before interest and taxes by average total assets...
Q: The Potter Corporation purchased a machine on January 1, 2020. The machine cost P 46,000, with an es...
A: Solution.. Cost = P46,000 Estimated salvage value = P2,000 Life = 10 years
Q: 11 Month Operating Income Statement Month End November 2022 This Month Last Month YTD Sales Food %$4...
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for...
Q: You are the warehouse manager for a multi-location business specializing in old style vinyl records....
A: Solution Working note warehouse west store sales 18920.00 43860.00 cost of goo...
Q: Anchor, inc, reports pretax financial income of $100,000 for 2020, S120,000 for 2021, and for 2022. ...
A: Determination of taxable income 2020 2021 2022 Pretax Financial income $100,000 $120,000 $14...
Q: ilers Company has two producing departments and two support departments. The following budgeted data...
A: The question is based on the concept of Cost Accounting.
Q: Dove Company uses FIFO method of process costing. The company’s cost accountant has provided you wi...
A: Computation of WIP beginning inventory: Amount Transferred in(10,000*30) P300,000 Materials...
Q: Don Juan, a single taxpayer, is the sole owner of DJ's Incorporated, $600,000 business loss, all of ...
A: In this question, we have to find out the deductible loss as per the 2021 tax year and the loss carr...
Q: 1. Mr. A is the owner of a grocery store. He was informed by the Fortune Cigarette supplier today th...
A: Increase in Price per pack = 1,000 - 900 = 100 Total Impact on weekly order = 100 * 300 = 30,000 Thu...
Q: Income Statement Dec. 31, 2022 Company A Company B Sales P850,000 P1,350,000 Less: Cost of Goods Sol...
A: Debt to asset ratio refers to the ratio of total debt of a company to its total assets which is arri...
Q: Seacrest Company uses a process costing system. The company manufactures a product that is processed...
A: A process costing system is a method used in certain industries to determine the cost of production ...
Q: Overdraft checks are insufficiently funded. True False There is a guarantee of higher interest in...
A: Following is the correct answer
Q: omputech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, ...
A: Solution Concept Using Gordons growth model , the present value of stock paying dividend with consta...
Q: The cost of ending inventory is: Daily Custom Company manufactures plastic chairs in its Processing ...
A: Equivalent units concept is used when opening or ending work in progress is not 100% complete but pa...
Q: D costs. b. Under IFRS, the product development portion of R&D is capitalized. c. U.S. standard sett...
A: R&D costs refer to the research and development costs refer expenses involves while a company co...
Q: On January 1, 2020, when the fair value of its common shares was $80 per share, Pharoah Corp. issued...
A: Conversion of Bonds It is the method of converting a bond into shares. It is dependent on convert...
Q: While examining the December 31, 2022 financial statements of Lark Company, a new client, you discov...
A: Journal entries means the book of prime entry including debit and credit item. Adjusting entry means...
Q: Payroll Accounting and Discussion of Labor Costs Blitzen Marketing Research paid its weekly and mon...
A: Introduction: A journal entry is an act of recording or keeping track of any financial or non-financ...
Q: Haze Company had 6,400 units of work-in-process inventory in department A on October 1, 2022. These ...
A: Under average costing method it is assumed that whole of opening inventory is completed during the p...
Q: What is the effect of omission of prepaid expense in net income during the year of error? a. Overst...
A: Prepaid expenses should be deducted from the particular expense to which it relates in the calculati...
Q: Income Statement Dec. 31, 2022 Company A Company B Sales P850,000 P1,350,000 Less: Cost of Goods Sol...
A: Efficiency in the management of stock is judged by inventory turnover ratio and days inventory outst...
Q: Problem 43. The following assets are acquired on January 1, 2015, when the general price index is 20...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: Financing Deficit Stevens Textile Corporation's 2019 financial statements are shown below: Balance...
A: Introduction: Investors and financial experts rely on financial data to examine a company's performa...
Q: Coronado Inc., a greeting card company, had the following statements prepared as of December 31, 202...
A:
Q: 2020 2019 Cash $1,800 $1,130 Receivables 1,770 1,320 Inventory 1,560 ...
A: Statement of cash flow is the cash book in detailed version which shows the receipts and payments of...
Q: B. CAPITAL BUDGETING Situation: Assume that you are planning to invest for the expansion of your bus...
A: NPV stand for Net present value, It can be calculated as follows NPV = Present Value of Cash inflows...
Q: Omission of accrued income in year 1 will result to a. Overstatement of assets in year 1
A: Accrued income means an income which is earned but not received. As per Ac...
Q: Compare and contrast the net income margins of both Company A and B. Do you think the company with t...
A: Net income margin = net income/sales
Q: A variance is the difference between standards and actual performance with materials, labor, or over...
A: Variances are used for the performance evaluation of the company. It is also helpful for the managem...
Q: Registration of securities with the SEC is usually valid for O 3 years O 2 years O 4 years O 1 year
A: Securities and Exchange Commission (SEC): The Securities and Exchange Commission (SEC) of the United...
Q: Problem 44. The statement of financial position of ART Inc. before translation to hyperinflationary ...
A: What is meant by Hyperinflationary Economy? The economy in which the price fluctuations are very hig...
Q: Prior to liquidating their partnership, Kim and Cheyenne had capital accounts of $304,000 and $190,0...
A: The partnership comes into existence when two or more persons agree to do the business and share pro...
Q: What is the gross margin ratio of Company B? How much purchases did Company A have for 2021? What is...
A: For company to generate profit operating margin it need to consider all the factors which are necess...
Q: Hardy Man, Inc., acquired a machine in 2021 for P 400,000 and erroneously charged the cost to an exp...
A: The straight line method of calculating depreciation is the most simplest way to determine accumulat...
Requirement: Compute for the following variances
1. Fixed Spending Variance
2. Variable Spending Variance
3. Efficiency Variance
4. Controllable Variance
5. Volume Variance
6. Spending Variance
7. Total Variance
Step by step
Solved in 2 steps
- At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.Moleno Company produces a single product and uses a standard cost system. The normal production volume is 120,000 units; each unit requires 5 direct labor hours at standard. Overhead is applied on the basis of direct labor hours. The budgeted overhead for the coming year is as follows: At normal volume. During the year, Moleno produced 118,600 units, worked 592,300 direct labor hours, and incurred actual fixed overhead costs of 2,150,400 and actual variable overhead costs of 1,422,800. Required: 1. Calculate the standard fixed overhead rate and the standard variable overhead rate. 2. Compute the applied fixed overhead and the applied variable overhead. What is the total fixed overhead variance? Total variable overhead variance? 3. CONCEPTUAL CONNECTION Break down the total fixed overhead variance into a spending variance and a volume variance. Discuss the significance of each. 4. CONCEPTUAL CONNECTION Compute the variable overhead spending and efficiency variances. Discuss the significance of each.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. 10.22
- Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 2 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 12,000 units. The standard cost for labor allowed for the output was $90,000, and there was an unfavorable direct labor time variance of $5,520. A. What was the standard cost per hour? B. How many actual hours were worked? C. If the workers were paid $3.90 per hour, what was the direct labor rate variance?Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hoursEagle Inc. uses a standard cost system. During the most recent period, the company manufactured 115,000 units. The standard cost sheet indicates that the standard direct labor cost per unit is $1.50. The performance report for the period includes an unfavorable direct labor rate variance of $3,700 and a favorable direct labor time variance of $10,275. What was the total actual cost of direct labor incurred during the period?
- The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
- The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods Sold