The fixed overhead cost spending variance is $5,000 unfavorable. Thus the correct option is 1.
Costs known as fixed overheads are expenses that don't vary based on variations in the volume of business activity each month. These expenses are necessary in order to run a business.
The calculation for fixed overhead is
Fixed overhead rate= Budgeted overhead cost/ Budgeted volume
= 200,000/40,000
= 5 per unit of output
The Fixed overhead absorption rate is 5 per unit of output.
Calculation for fixed overhead cost spending variance
= (Actual output- budgeted output) * Fixed overhead absorption rate
=(39,000-40,000)* $5
=$5,000 unfavorable
Hence, the fixed overhead cost spending variance is $5,000 unfavorableTherefore, option 1 is appropriate.
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Answer:
$8,000
Explanation:
this is the answer hopefully....
Answer:
S/n General Journal Debit Credit
a Insurance expense $1,200
Prepaid Insurance $1,200
(To record insurance expired)
b Supplies expense $6,200
Supplies $6,200
($5,000 + $2,000 - $800)
(To record supplies used)
Lopez company should adjust their prepaid insurance and Zim company should adjust their supplies account due to their use during the year. Both adjustments will be debits to relevant expense accounts & credits to Prepaid Insurance for Lopez, and Supplies for Zim.
The two adjustments that need to be made are for the prepaid insurance and the supplies. To compute the adjustment for the prepaid insurance, we would divide the total insurance payment by the number of months covered to find the monthly cost. For Lopez Company, six months of insurance is valued at $1,200, therefore the monthly cost is $200. From July 1 to December 31, six months have passed, so $1,200 of insurance has been used up. As a result, we need to debit the Insurance Expense account by $1,200 and credit Prepaid Insurance by $1,200.
Regarding Zim Company, the beginning balance in the Supplies account was $5,000, and it purchased $2,000 more throughout the year - that sum up to $7,000 of total supplies. At the end of the year, they still had $800 left, so they used $6,200 of supplies during the year. The adjustment will be a debit to Supplies Expense by $6,200 and a credit to Supplies by $6,200, reflecting the fact that those supplies are no longer available for use.
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Revenue $280 $39,250
Technician wages $8,400 $8,250
Mobile lab operating expenses $4,800 $31 $9,290
Office expenses $2,400 $3 $2,700
Advertising expenses $1,580 $1,650
Insurance $2,870 $2,870
Miscellaneous expenses $970 $1 $425
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $31 per job, and the actual mobile lab operating expenses for February were $9,290. The company expected to work 150 jobs in February, but actually worked 154 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February.
Answer:
I used an excel spreadsheet since there is not enough room here. I ordered the given data:
Fixed Variable Actual Total
Revenue $280 $39,250
Technician wages $8,400 $8,250
Mobile lab operating exp. $4,800 $31 $9,290
Office expenses $2,400 $3 $2,700
Advertising expenses $1,580 $1,650
Insurance $2,870 $2,870
Miscellaneous expenses $970 $1 $425
The actual results yielded an unfavorable operating income variance. Operating income = $14,065, unfavorable variance = $2,645
Answer:
15 percent
Explanation:
The maximum total interest in any company is 100%. Since 85% of the common stock of Star Company was acquired by Peta Company, Peta Company is automatically the parent company to Star Company no matter the amount of cash its paid for the acquisition while the remaining 15% will automatically be classified as non-controlling interest.
Therefore, noncontrolling interest can be calculated as follows:
Noncontrolling interest = Total interest - Peta company's interest
= 100% - 85% = 15%
Therefore, 15 percent is the portion of the retained earnings reported in the consolidated balance sheet prepared immediately after the business combination that is assigned to the noncontrolling interest. The amount paid for the percentage interest acquisition does matter when profit is been shared between the parent company and the non-controlling interest.
Note:
A parent company is a company that has more than 50 percent of outstanding shares and therefore it is in charge of all decision making of the company. The company it acquired its more than 50 percent outstanding shares now becomes its subsidiary.
Non-controlling interest refers to the ownership of less than 50 percent of outstanding shares in a company and therefore not in charge of all decision making of the company. It is also referred as the minority interest.
Answer:
(A) The treasurer has the authority to sign checks but gives the signature block to the assistant treasurer to run the check-signing machine.
Explanation:
A segregation of duties is an internal control in business. It is assigning more than one person to a task usually to prevent error or any fraudulent activity. Therefore, the treasurer giving the signature block to the assistant treasurer to run the check-signing machine is not a violation of a segregation of duties.
Answer:
$33,120,000
Explanation:
Calculation for What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project
Using this formula
Proper Cash Flow Amount = (Expected Cost of Selling + Cost of Building Manufacturing Plant + Cost of Grading)
Let plug in the formula
Proper Cash Flow Amount = ($10,500,000 + $21,700,000 + $920,000)
Proper Cash Flow Amount = $33,120,000
Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $33,120,000
Answer and Explanation:
In order to answer the question, we first need to understand the concept of Keynesian theory of great depression. John Maynard Keynes, says that during recession or depressed economic conditions, governments should increase their spending in order to create a correct balance of demand and avoid high unemployment. Once the recession and market forces are stable, by that time the full employment is reached and now the deficit could be repaid. Congress could bring the taxes back to its original state as the people are now back to stable condition. This would help to meet the deficit requirement.