Answer:
The correct answers are as follows:
Numbers of items shipped 140000
Standard Direct labor-hours 0.03
Total direct labor- hours allowed 140000*0.03
= 4200
Standard direct labor cost per hour $3.05
Total standard direct labor cost 3.05*4200
=$12810
Actual cost incurred $15900
total standard direct labor cost $12810
Total direct labor variance = $15900-12810
$3090 F
---------
2. Labor rate variance = (Actual rate - Standard rate) x Actual hours worked
((15900/5300)-3.05)*5300
265 U
Labor efficiency variance = (Actual hours - Standard hours) x Standard rate
(5300-140000*0.03)*3.05
3355 F
Answer:
Decreases the Accounts Payable account and decreases the Checking account
Explanation:
In the case when the bill is paid in quick books by using the window of pay bills so the liabilities would be reduced also the liquid asset would be decreased
Since the liabilities is reduced i.e. account payable so automatically the checking account would also be reduced
hence, the last option is correct
The same is to be considered
Answer:
You would decrease the accounts payable (paying the bill relieves part of the balance in this account) and decreases the cash account (when you pay the bill, you use or reduce the cash)
Explanation:
see my answer for explanation
Answer: Aggregate Demand will shift by $25 billion dollars at each price level
Explanation:
1 % rise in Household wealth increases , Consumer Spending by $5 Billion. We can assume that when Household wealth Decreases by 1% consumer spending decreases by $5 billion dollars.
if Household Wealth Decreases by 5% aggregate demand will fall by $25 Billion (1% represents 5 Billion, so 5% will be $5 Billion x 5). Aggregate Demand Curve will initially shift by $25 billion at each price level when household wealth Falls by 5%
Answer:
(a) Journal entry for Arness Woodcrafters
Dr Cash 273,000
Dr Receivable from factor 9,000
Dr Loss on sale of receivables 26,000
Cr Accounts receivable 300,000
Cr Recourse factor 8,000
the amount of cash received = $300,000 x (1 - 6% - 3%) = $273,000
receivable from factor = $300,000 x 3% = $9,000
loss on sale = accounts receivable + recourse factor - cash - receivable = $300,000 + $8,000 - $273,000 - $9,000 = $26,000
(b) Journal entry for Commercial Factors
Dr Accounts receivable 300,000
Dr Recourse receivable 18,000
Cr Cash 273,000
Cr Accounts payable 9,000
Cr Recourse revenue 36,000
Prepare the journal entries for Parnevik on (a) March 1, 2020, and (b) December 31, 2020.
Answer:
Parnevik Company
Journal Entries:
(a) March 1, 2020
Debit Notes Receivable (Goosen Inc.) $660,000
Credit Sales Revenue $660,000
To record the sale of goods in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,062,937.
Debit Cost of Goods Sold $400,000
Credit Inventory $400,000
To record the cost of goods sold.
(b) December 31, 2020:
Debit Interest Receivable (Goosen Inc.) $55,000
Credit Interest Revenue $55,000
To record the interest receivable for 10 months on the note.
Explanation:
The sale of goods will be recorded net of the interest. Interest Receivable from Goosen Inc. will be accumulated until when it is settled by Goosen Inc. at the end of the note's 5-year life. By that time, the interest must have accumulated to $402,937 compounded yearly.
b. a gift is always a contract, but a bailment is generally not a contract.
c. a gift requires delivery, but a bailment does not.
d. in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee.
Answer: d. in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee.
Explanation:
When you give a person a gift, you are giving the person both ownership of that gift and the possession as well. For instance, if you give a person a car as a gift, that person now owns the car and will use it as they please.
With a bailment, there is no transfer of ownership. The bailor is simply giving the bailee possession of the property in question which means that after the bailee is done with the property, they have to return it back to the bailor.
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).
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