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Bineta Barry
Answers (7)
BB
Answered
Smith sells computer software to Miller that requires significant construction.When recognizing revenue, Smith
A) allocates the associated discounts to all the customization efforts, including upgrades
B) can use percentage of completion to recognize revenue
C) can recognize revenue upon delivery of the software
D) must use the fair value of the software delivered in determining realizable revenue
A) allocates the associated discounts to all the customization efforts, including upgrades
B) can use percentage of completion to recognize revenue
C) can recognize revenue upon delivery of the software
D) must use the fair value of the software delivered in determining realizable revenue
On Jul 21, 2024
B
BB
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Posting a sales journal to the accounts in the general ledger requires a
A) debit to Cash and a credit to Sales Revenue.
B) debit to Sales Revenue and a credit to Inventory.
C) debit to Accounts Receivable and a credit to Inventory.
D) debit to Accounts Receivable and a credit to Sales Revenue.
A) debit to Cash and a credit to Sales Revenue.
B) debit to Sales Revenue and a credit to Inventory.
C) debit to Accounts Receivable and a credit to Inventory.
D) debit to Accounts Receivable and a credit to Sales Revenue.
On Jul 21, 2024
D
BB
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What would the annual net cash inflows from this project have to be in order to justify investing in remodelling?
A) $16,147.
B) $14,495.
C) $29,158.
D) $35,842.
A) $16,147.
B) $14,495.
C) $29,158.
D) $35,842.
On Jul 17, 2024
C
BB
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_____ is the ability to influence people to work toward the goals of an organization.
On Jun 21, 2024
Leadership
BB
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Refer to Table 12-9. The tax system is an example of a __________ tax.
On Jun 17, 2024
regressive; the percentage of income paid in taxes decreases as income increases
BB
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If the market for concert tickets is in equilibrium and the fire marshal tries to reduce the number of tickets sold,all other things equal,total surplus will decrease.
On May 21, 2024
True
BB
Answered
Riggins Inc. manufactures one product called tybos. The company uses a standard cost system and sells each tybo for $8. At the start of monthly production Riggins estimated 9500 tybos would be produced in March. Riggins has established the following material and labor standards to produce one tybo: Standard Quantity Standard Price Direct materials 2.5 pounds $3 per pound Direct labor 0.6 hours $10 per hour \begin{array}{lcc}&\text { Standard Quantity}&\text { Standard Price }\\\text { Direct materials } & 2.5 \text { pounds } & \$ 3 \text { per pound } \\\text { Direct labor } & 0.6 \text { hours } & \$ 10 \text { per hour }\end{array} Direct materials Direct labor Standard Quantity2.5 pounds 0.6 hours Standard Price $3 per pound $10 per hour During March 2016 the following activity was recorded by the company relating to the production of tybos:
1. The company produced 9000 units during the month.
2. A total of 24000 pounds of materials were purchased at a cost of $66000.
3. A total of 24000 pounds of materials were used in production.
4. 5000 hours of labor were incurred during the month at a total wage cost of $55000.
Instructions
Calculate the following variances for March for Riggins Inc.
(a) Materials price variance
(b) Materials quantity variance
(c) Labor price variance
(d) Labor quantity variance
1. The company produced 9000 units during the month.
2. A total of 24000 pounds of materials were purchased at a cost of $66000.
3. A total of 24000 pounds of materials were used in production.
4. 5000 hours of labor were incurred during the month at a total wage cost of $55000.
Instructions
Calculate the following variances for March for Riggins Inc.
(a) Materials price variance
(b) Materials quantity variance
(c) Labor price variance
(d) Labor quantity variance
On May 18, 2024
(a) Materials price variance
= (Actual quantity purchased × Actual price) - (Actual quantity purchased × Standard price)
= (24000 × $2.75) - (24000 × $3) = $6000 favorable
(b) Materials quantity variance
= (Actual quantity used × Standard price) - (Standard quantity × Standard price)
= (24000 × $3) - [(9000 × 2.5) × $3] = $4500 unfavorable
(c) Labor price variance
= (Actual hours x Actual rate) - (Actual hours × Standard rate)
= (5000 × $11) - (5000 × $10) = $5000 unfavorable
(d) Labor quantity variance = (Actual hours × Standard rate) - (Standard hours × Standard rate) = (5000 × $10) - [(0.6 × 9000) × $10] = $4000 favorable
= (Actual quantity purchased × Actual price) - (Actual quantity purchased × Standard price)
= (24000 × $2.75) - (24000 × $3) = $6000 favorable
(b) Materials quantity variance
= (Actual quantity used × Standard price) - (Standard quantity × Standard price)
= (24000 × $3) - [(9000 × 2.5) × $3] = $4500 unfavorable
(c) Labor price variance
= (Actual hours x Actual rate) - (Actual hours × Standard rate)
= (5000 × $11) - (5000 × $10) = $5000 unfavorable
(d) Labor quantity variance = (Actual hours × Standard rate) - (Standard hours × Standard rate) = (5000 × $10) - [(0.6 × 9000) × $10] = $4000 favorable