Rooney Company established a predetermined variable overhead cost rate at $9.40 per direct labor hour. The actual variable overhead cost rate was $8.40 per hour. The planned level of labor activity was 74,900 hours of labor. The company actually used 79,900 hours of labor. Required Determine the total flexible budget variable overhead cost variance and indicate the effect of the variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
Answers
Answer:
$32,900 favorable
Explanation:
The computation of the total flexible budget variable overhead cost variance is shown below:
= Total budgeted overhead cost - actual budgeted overhead cost
where,
Total budgeted overhead cost is
= $9.40 × 74,900 hours
= $704,060
And, the actual budgeted overhead cost is
= $8.40 × 79,900 hours
= $671,160
So, the total flexible budget variable overhead cost variance is
= $704,060 - $671,160
= $32,900 favorable
Since the standard cost is greater than the actual cost so it would have favorable variance
Related Questions
In need of extra cash, Troy and Lily decide to withdraw $2 comma 100 from their traditional IRA. They are both 40 years old. They are in a 35% marginal tax bracket. What will be the tax consequences of this withdrawal?
Nash Co. sells $435,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Nash buys back $130,500 worth of bonds for $136,500 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.
Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses. Year 1$(12,000)Net Section 1231 loss Year 2 10,500 Net Section 1231 gain Year 3 (14,000)Net Section 1231 loss In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary
Perform ratio analysis, and discuss change in financial position and operating results Condensed balance sheet and income statement data for Jergan Corporation are presented here. JERGAN CORPORATION Balance Sheet December 31 2017 2016 2015 Cash $30,000 $20,000 $18,000 Accounts receivable (net) 50,000 45,000 48,000 Other current assets 90,000 95,000 64,000 Investments 55,000 70,000 45,000 Plant and equipment (net) 500,000 370,000 358,000 $725,000 $600,000 $533,000 Current liabilities $85,000 $80,000 $70,000 Long-term debt 145,000 85,000 50,000 Common stock, $10 par 320,000 310,000 300,000 Retained Earnings 175,000 125,000 113,000 $725,000 $600,000 $533,000 JERGAN CORPORATION Income Statement For the Year Ended December 31 2017 2016 Sales revenue $740,000 $600,000 Less: Sales return and allowances 40,000 30,000 Net sales 700,000 570,000 Cost of goods sold 425,000 350,000 Gross profit 275,000 220,000 Operating expenses 180,000 150,000 Net income 95,000 70,000 Additional information: 1. The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2012, 2016, and 2017, respectively. 2. You must compute dividends paid. All dividends were paid in cash. Instructions (a) Compute the following ratios for 2016 and 2017. (1) Profit margin. 5. Price-earnings ratio. (2) Gross profit rate. 6. Payout ratio. (3) Asset turnover. 7. Debt to assets ratio. (4) Earnings per share.
A.14.4 percent
B.10.0 percent
C.13.6 percent
D.11.5 percent Please show work
Answers
Answer:
C.13.6 percent
Explanation:
GDP Market STOCK
ER 7,2% 2,4% 13,6% Expected Return of Investment Rf 4,00% Risk-Free Rate
Bi 1,2 0,6 1,0 Beta of the Investment
(Erm-Rf) 6,00% 4,00% 9,60% Market Risk Premium
It's necessary to calculate how much impact each item has with the corresponding Beta in the stock
Then, to know the impact of exposure to the Aluminum market, we have to multiply the risk premium of 4% by the beta of 0,6
Then, to know the impact of the exposure to GDP, we do the same procedure, we multiply the risk premium of GDP by the beta of 1,2.
With these calculations we reach how much of the return on this stock corresponds to the market and then we add 4% of risk free.
Answers
Answer:
6.93 years
Explanation:
For computing the number of years we use the NPER formula i.e to be shown in the attachment
Given that
Present value = $8,000
Future value = $0
Rate of interest = 9%
PMT = $1,600
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the number of years is 6.93 years
Answers
Answer:
Interest payable is equal to $11500
Explanation:
Amount payable to national bank on September 1,2020 is $1500000.
Amount is paid in three equal amount of $510000.
Therefore amount remaining on 31th December = $1500000 -$510000 = $4950000
Rate of interest = 7%
Total number of month from September to December = 4
So interest payable = $
Answers
Answer:
The solution to the given problem is done below.
Explanation:
(a) Depreciation
for Financial Depreciation for Temporary
Year Reporting Purposes Tax Purposes Difference
2017 $160,000 $264,000 (104,000)
2018 $160,000 $360,000 (200,000)
2019 $160,000 $120,000 40,000
2020 $160,000 $56,000 104,000
2021 $160,000 0 $160,000
$800,000 $800,000 0
(b) 2018 2019 2020 2021 Total
Future taxable
amounts:
Depreciation $(200,000) $40,000 104,000 $160,000 $104,000
Deferred tax liability: $104,000 × 40% = $41,600 at the end of 2017.
Answers
Answer:
a) Assets: Reserves $200,000; Liabilities: Deposits $200,000
b) Amount Deposited: $2000,000; Change in Excess Reserves: $190,000; and Change in Required Reserves: $10,000
c) See the calculation below and the attached excel file for the table.
d) the $200,000 injection into the money supply results in an overall increase of $4,000,000 in demand deposits.
Explanation:
These can be answered as follows:
a) Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans).
Note: See the attached excel file for the table.
The $200,000 deposited by Lorenzo to First Main Street Bank led to the creation of both an asset and a liability for First Main Street Bank.
As a result, the reserve of the bank is increased by $200,000 on the asset side of the T-account. It is therefore now possible for the ban to grant loan to other customers from these additional reserves.
In addition, the demand deposit of the bank is increased by $200,000 on the liability side of the T-account. This is recorded as a demand deposit because it is possible for Lorenzo to come at any time to the band to withdraw his deposit either by using a debit card or by writing a check.
b) Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 5%. Hint: If the change is negative, be sure to enter the value as negative number.
Note: See the attached excel file for the table. Just scroll the excel file down to part b.
The required reserve ratio of 5% indicates that First Main Street Bank has to hold 5% of the $200,000 the deposit or fresh fresh reserves, and this will result in having a 95% excess reserve which the bank can employ to grant loans.
From the amount deposited, the change in excess reserve and the change in the required reserve can be computed as follows:
Amount deposited = $200,000
Change in excess reserve = $200,000 * (1 - 5%) = $190,000
Change in required reserve = $200,000 * 5% = $10,000
c) Now, suppose First Main Street Bank loans out all of its new excess reserves to Juanita, who immediately uses the funds to write a check to Gilberto. Gilberto deposits the funds immediately into his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Lorenzo, who writes a check to Neha, who deposits the money into her account at Third Fidelity Bank. Third Fidelity lends out all of its new excess reserves to Teresa as well.Fill in the following table to show the effect of this ongoing chain of events at each bank. Enter each answer to the nearest dollar.
Note: See the attached excel file for the table. Just scroll the excel file down to part c.
As already computed in part b above, we have the following to show the effect of this ongoing chain of events at each bank, we have:
For First Main Street Bank:
Increase deposit = Deposit from Lorenzo = $200,000
increase in required reserve = $200,000 * 5% = $10,000
Increase in loans = Loan to Juanita = $200,000 * (1 - 5%) = $190,000
For Second Republic Bank:
Increase deposit = Deposit from Gilberto = $190,000
Increase in required reserve = $190,000 * 5% = $9,500
Increase in Loans = Loans to Lorenzo = $190,000 * (1 - 5%) = $180,500
For Third Fidelity Bank:
Increase deposit = Deposit from Neha = $180,500
Increase in required reserve = $180,500 * 5% = $9,025
Increase in Loans = Loans to Teresa = $180,500 * (1 - 5%) = $171,475
d) Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under these assumptions, the $200,000 injection into the money supply results in an overall increase of in demand deposits.
In order to calculate this, the formula for the money multiplier is used to multiply the initial deposit or injection of $200,000 by Lorenzo as follows:
Money multiplier = 1/r
Where r denotes required reserve ratio of 5%, or 0.05.
Therefore, we have:
Overall increase in demand deposits = Injection * (1 / r) = $200,000 * (1 / 0.05) = $200,000 * 20 = $4,000,000
Therefore, the $200,000 injection into the money supply results in an overall increase of $4,000,000 in demand deposits.
Final answer:
When the Federal Reserve buys a government bond from a client of First Main Street Bank, the bank's assets increase by the bond value and its liabilities increase by the same amount in deposits.
Explanation:
In this scenario, when the Federal Reserve buys a $200,000 government bond from Lorenzo, a client of First Main Street Bank, and he deposits the money into his checking account at the bank, there are changes in the bank's T-account. The bank's assets increase by $200,000 in reserves, while its liabilities increase by $200,000 in deposits.
Next, if First Main Street Bank loans out all of its new excess reserves to Juanita, who writes a check to Gilberto, Gilberto deposits the funds into his checking account at Second Republic Bank. This process continues with each successive loan deposited into a checking account at each bank. The increase in deposits, required reserves, and loans at each bank can be filled in the table provided.
Assuming this process continues with no banks keeping any excess reserves, the $200,000 injection into the money supply results in an overall increase of $200,000 in demand deposits.
Learn more about Effect of Monetary Policy on Banks here:
#SPJ3
(B) $125.00
(C) $110.00.
(D) $115.00.
Answers
Answer:
Option (A) is correct.
Explanation:
Part A:
Cost = No. of units × cost per unit
= 5 × $5
= $25
Replacement cost = No. of units × cost per unit
= 5 × $4
= $20
Value to be recognized = $20
Part B:
Cost = No. of units × cost per unit
= 10 × $6
= $60
Replacement cost = No. of units × cost per unit
= 10 × $7
= $70
Value to be recognized = $60
Part C:
Cost = No. of units × cost per unit
= 10 × $3
= $30
Replacement cost = No. of units × cost per unit
= 10 × $2
= $20
Value to be recognized = $20
Therefore,
Value of Ending inventory = Sum of recognized value of all the three parts
= $20 + $60 + $20
= $100
Hence, the total value of this company's ending inventory is $100.