Answer:
a) $12,500 unfavorable
b) 0
Explanation:
variable factory overhead controllable variance = actual variable overhead expense - (standard variable overhead per unit x standard number of units)
actual variable overhead expense = $725,000
standard variable overhead per unit = $712,500 / 60,000 = $11.875
standard number of units = 60,000
variable factory overhead controllable variance = $725,000 - $712,500 = $12,500 unfavorable
Controllable factory overhead is not related to any changes in the actual volume or quantity produced.
Fixed factory overhead volume variance = actual fixed overhead - standard fixed overhead = $262,500 - $262,500 = 0
Fixed overhead was exactly the same as the standard or budgeted overhead.
Answer:
option (D) $21.66
Explanation:
Data provided in the question:
Basic direct labor rate per hour = $12.68
Payroll taxes = 13% of basic direct labor rate
Fringe benefits per hour = $7.33
Now,
The standard rate per direct labor hour
= Basic direct labor rate per hour + Payroll taxes + Fringe benefits per hour
= $12.68 + ( 13% of $12.68 ) + $7.33
= $12.68 + $1.6484 + $7.33
= $21.6584 or $21.66
Hence,
The correct answer is option (D) $21.66
Answer:
It is a Bullet Loan
Explanation:
A bullet loan is a type of loan in which the principal that is borrowed and sometimes with the interest are paid back at the end of the loan period by the borrower.
Essentially, the flexibility in the terms mean that a borrower is going to be saving a large payment until the end of the repayment period and with this borrowers can get access to loans they wouldn't have been able to afford if such flexibility doesn't exist.
However, this type of loan can be extremely risk for the borrower especially if things didn't go as planned.
Answer:
$153,000
Explanation:
The computation of the net present value is shown below:
= Present value of all cash inflows including salvage value after considering the discount factor - initial investment
where,
Present value is
= Four year cash inflows × PVIFA factor for 11.5% for 4 years + (one year cash inflow + salvage value) × discount rate for 11.50% at five year
= $300,000 × 3.0696 + ($300,000 + $100,000) × 0.5803
= $920,880 + $232,120
= $1,153,000
And, the initial investment is $1,000,000
So, the net present value is
= $1,153,000 - $1,000,000
= $153,000
Answer:
The entries are as follows
To record estimated returns on Sales
Debit: Sales Refund Payable Account $131,400
Credit: Accounts Receivables $131,400
To record estimated Cost of Sales returns
Debit: Inventory Returns Estimated Account $77,700
Credit: Inventory on Sales on Returns $77,700
Explanation:
To derive the figure for Sales Refund payable for the year
6% of $2,190,000
= 
= $131,400
To derive the figure for Inventory cost on Sales Refund payable for the year
6% of $1,295,000
= 
= $77,700
