BUSINESS COLLEGE

Javonte Co. set standards of 2 hours of direct labor per unit of product and $15.80 per hour for the labor rate. During October, the company uses 12,100 hours of direct labor at a $193,600 total cost to produce 6,400 units of product. In November, the company uses 16,100 hours of direct labor at a $258,405 total cost to produce 6,800 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable. (2) Javonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?

Answers

Answer 1
Answer:

Answer:

October

direct labor rate variance =$2,420 unfavorable

direct labor efficiency variance  =$11,060 favorable

direct labor cost variance  = $ 8,640 favorable

Investigate : direct labor efficiency variance

November

direct labor rate variance = $4,025 unfavorable

direct labor efficiency variance =$ 39,500 favorable

direct labor cost variance  = $35,475 favorable

Investigate : direct labor efficiency variance

Explanation:

October

direct labor rate variance = (Aq × Ap) -  (Aq × Sp)

                                          = (12,100×$16) - (12,100×$15.80)

                                          =$2,420 unfavorable

direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)

                                                    =(12,100 × $15.80) - (6,400×2 ×$15.80)

                                                    =$11,060 favorable

direct labor cost variance = direct labor rate variance + direct labor efficiency variance  

                                           = $2,420 (A) + $11,060 (F)

                                           = $ 8,640 favorable

November

direct labor rate variance = (Aq × Ap) -  (Aq × Sp)

                                          = (16,100×$16.05) - (16,100×$15.80)

                                          = $4,025 unfavorable

direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)

                                                    =(16,100 × $15.80) - (6,800×2 ×$15.80)

                                                    =$ 39,500 favorable

direct labor cost variance = direct labor rate variance + direct labor efficiency variance

                                          = $4,025 (A) + $ 39,500 (F)

                                           = $35,475 favorable

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Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $24,700 and variable expenses of $6,175. Product Y45E had sales of $35,280 and variable expenses of $15,876. The fixed expenses of the entire company were $17,300. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company: Multiple Choice could increase or decrease. would increase. would decrease. would not change.

Answers

Answer:

C) Would decrease

Explanation:

Brady is hired in 2018 to be the accountant for Anderson Manufacturing, a private company. At the end of 2018, the balance of Accounts Receivable is $23,000. In the past, Anderson has used only the direct write-off method to account for bad debts. Based on a detailed analysis of amounts owed, Brady believes the best estimate of future bad debts is $7,800. 1. If Anderson continues to use the direct write-off method to account for uncollectible accounts, what adjustment, if any, would Brady record at the end of 2018?

Answers

Answer:

No journal entry is required

Explanation:

In the case of Direct write-off method, for recording the estimating future debts, no journal entry is required as in this method only bad debt expense is recorded which is shown  below:

Bad debt expense A/c Dr XXXXX

              To Account receivable A/c XXXXX

(Being the bad debt expense is recorded)

So, no journal entry is required for estimated amount or Allowance for doubtful Accounts

The McKnight Company expects sales in 2015 of 208 comma 000 units of serving trays. McKnight​'s beginning inventory for 2015 is 18 comma 000 ​trays, and its target ending inventory is 27 comma 000 trays. Compute the number of trays budgeted for production in 2015. Select the labels and enter the amounts to calculate the units of finished goods​ (trays) to be produced. Budgeted unit sales 208,000 Add target ending finished goods inventory 27,000 Total required units Deduct beginning finished goods inventory –18,000 Units of finished goods to be produced

Answers

Answer:

units required to be produced 217,000

Explanation:

expected sales for the period  208,000

desired ending inventory           27,000    

total units required                    235,000

beginning units                          ( 18,000 )  

units required to be produced 217,000

The company needs units to fullfil teir sales bdget and desired ending invenoty.

the beginning inventory already complete a portion of the requirement so is the difference what determinates the required units to be produced.

abstraction enables us to apply a function to each value in a list and returns a new list of the results

Answers

the cover-up of complex procedures. Abstraction allows us to apply a function to each value in a list and produce a new list of the results by getting rid of unnecessary or repetitive code.

Abstraction is a method used in computer science to control the complexity of computer systems. It functions by setting a threshold for complexity beyond which a user cannot interact with the system, concealing the more intricate elements below the threshold.

When we write code parts (referred to as "procedures" or, in Java, "static methods") that are generalized by having variable parameters, we are using procedural abstraction. The concept is that we have code that, depending on how its parameters are configured when it is called, can handle a range of different circumstances.

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Each of the following quality control policies and procedures is typical of ones that can be found in public accounting firms’ systems of quality control. Identify each of them with one of the six elements of quality control identified by SQCS 8. Assign management responsibilities in such a manner that commercial considerations do not override the quality of work performed. Establish policies and procedures for resolving differences of opinion among firm personnel that arise during professional engagements. Develop policies and procedures to ensure that professionals are provided appropriate professional development opportunities. Review engagement documentation, reports, and the client’s financial statements. Develop effective performance evaluation, compensation, and advancement procedures. Identify circumstances and relationships that create threats to independence and take appropriate action to eliminate those threats or reduce them to an acceptable level. Identify whether the firm possesses the competency, capability, and resources to appropriately serve a specific client. Devote sufficient resources to develop, communicate, and support the firm’s quality control procedures. Retain engagement documentation for a sufficient period of time to satisfy the needs of the firm, professional standards, laws, and regulations.

Answers

Answer:

Quality Control Policies and Procedures and the Elements of Quality (SQCS 8):

1. Assign management responsibilities in such a manner that commercial considerations do not override the quality of work performed.

d. Human resources  

2. Establish policies and procedures for resolving differences of opinion among firm personnel that arise during professional engagements.

a. Leadership responsibilities for quality within the firm (the tone at the top)

3. Develop policies and procedures to ensure that professionals are provided appropriate professional development opportunities.

d. Human resources  

4. Review engagement documentation, reports, and the client’s financial statements.

f. Monitoring

5. Develop effective performance evaluation, compensation, and advancement procedures. Identify circumstances and relationships that create threats to independence and take appropriate action to eliminate those threats or reduce them to an acceptable level.

b. Relevant ethical requirements

6. Identify whether the firm possesses the competency, capability, and resources to appropriately serve a specific client.

c. Acceptance and continuance of client relationships and specific engagements

7. Devote sufficient resources to develop, communicate, and support the firm’s quality control procedures.

d. Human resources

8. Retain engagement documentation for a sufficient period of time to satisfy the needs of the firm, professional standards, laws, and regulations.

e. Engagement performance

Explanation:

According to SQCS 8, the firm must establish and maintain a system of quality control. The six elements of the system of quality control are:  

a. Leadership responsibilities for quality within the firm (the tone at the top)  

b. Relevant ethical requirements  

c. Acceptance and continuance of client relationships and specific engagements  

d. Human resources  

e. Engagement performance  

f. Monitoring

Final answer:

The quality control policies and procedures in public accounting firms are categorized into six elements identified by SQCS 8. Reviewing engagement documentation and the client's financial statements is under the element of monitoring.

Explanation:

Review engagement documentation, reports, and the client's financial statements falls under the element of monitoring in the quality control policies and procedures. This involves performing internal reviews to ensure the accuracy of the work and compliance with professional standards. Developing performance evaluation and compensation procedures falls under the human resources element. Identifying threats to independence and addressing them is part of the independence and ethical requirements element.

Develop effective performance evaluation, compensation, and advancement procedures is related to the element of human resources. This includes establishing fair and objective processes for evaluating staff performance and providing appropriate rewards.

Identifying circumstances and relationships that create threats to independence and taking appropriate action is part of the element of independence and ethical requirements. This involves assessing potential conflicts of interest and ensuring that professional judgment is not compromised.

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you recently increased you're spending on marketing by 10%. you now spend 5500 per month. revenue increase by 1000 per month and you're gross margin percentage is 70%. All other expenses stayed consant. Did the increase pay off?

Answers

Answer:

Answer is yes

Explanation:
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