Sharon is studying the working papers from her client's 2025 income statement because her manager wants her to reconstruct that same income statement without the benefit of first seeing the finished product. She knows the client uses standard costing within its accounting system, but she has to figure out which inventory costing method it uses. The working paper shows the following details. No other variances were reported, and the prior year per-unit costs were the same as the 2025 per-unit costs. Gross margin Sales volume Budgeted production Beginning FG Inventory Ending FG Inventory Fixed-MOH volume variance (unfavorable) Operating income Sales (a1) Your answer is correct. (d) Absorption Costing ✓ eTextbook and Media Your answer is incorrect. Which inventory costing method did the client use in 2025, variable or absorption? $6,500 Operating income $ eTextbook and Media 180 units Save for Later 200 units Show Transcribed Text 33 units 36 units $340 $570 $16,200 I If the client had used the other costing method (not the one determined in part (a)), how much income would it have reported last year? G Attempts: 1 of 3 used Attempts: 2 of 3 used Submit Answer

Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Direct Materials Price Debit Credit Variance $1,000 Direct Materials Quantity $2,000 Variance $500 Direct Labor Rate Variance $3,000 Direct Labor Efficiency Variance Unadjusted Cost of Goods Sold equals $200,000. Which of the following would be FALSE when the year-end closing entry is made? O The Cost of Goods Sold account will be debited. O Adjusted Cost of Goods Sold will be $198,500. The Direct Labor Rate Variance account will be debited. O The Direct Materials Price Variance account will be credited.

Your company management wants you to compare the list of materials for HML and ABC analysis. For ABC classification they set the following criteria; Items below SR 100000 annual consumption shall be considered as C-items, items between SR 100000 and SR 150000 shall be considered as B-items, and items above  SR 150000 shall be considered as A- items   For HML classification they set the following criteria; Items below unit price SR 50 shall be considered as L-items, items between SR 50 and SR 100 unit price shall be considered as M-items,   and items above SR 100 unit price shall be considered as H-items.   Based upon your analysis suggest which classification shall be better for the company so that inventory can be optimized. Justify your answer.           Item Consumption (Units) Annual Price/unit SR H/M/L Consumption (SR) Annual A/B/C A 2000 40       B 3000 65       C 2500 90…

Russell and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax return. Russell expected each Class 2 return to require 3.3 hours of labor at a cost of $39 per hour. The firm actually completed 650 Class 2 returns. Actual labor hours averaged 2.9 hours per return and actual labor cost amounted to $49 per hour. Required a. Determine the total labor variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the labor price variance and indicate whether it is favorable (F) or unfavorable (U). c. Determine the labor usage variance and indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, do not round intermediate calculations and select "None" if there is no effect (i.e., zero variance). a. Total labor variance b. Total labor price variance c. Total labor usage variance

A company has set a new policy of acquiring materials from a second hand auction because it is cheaper than market price. Upon further investigations you have discovered that the materials from the auction are lower than the normal standard. How is the new policy likely to impact on the following variances: Material Usage: Choose... Labour Efficiency: Choose... Fixed overhead expenditure: Variable overhead efficiency: Previous page Choose... Choose... Next page