Answer and Explanation:
The three different areas fo VLOOKup is as follows
1. The Primary key which is used for matching up your data for example, employee id, employee address etc
2. The list of lookup that represents the database i.e employees list who are working in an organization
3. the data which is required to match it or shifting the data
Answer:
I have identified the practical uses of VLOOKUP functions in the following three areas:
Education: A teacher with a list of student scores can use VLOOKUP to translate them to grades.
Sales: Sales managers can use VLOOKUP to determine the commissions their salespeople have earned.
Shopping: You can browse online catalogs for product listings and find their corresponding prices using VLOOKUP.
Explanation:
3. Suppose Tyrone wants to open a savings account that earns 3.5% simple interest per year. He wants it to be worth $1500 in 4 years. How much does he need to deposit in the account today to make that happen? Round to the nearest whole dollar.
Answer:
$1,307
Explanation:
The computation of the future value by using the following formula is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
$1,500 = Present value × (1 + 0.035)^4
So, the present value is
= $1,500 ÷ (1.035)^4
= $1,307
Hence, the present value is $1,307 and the same is to be considered
Exercise 10-1 Recording bond issuance and interest LO P1 On January 1, 2017, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months
Answer:
Semi-annual interest payment=$153,000
Explanation:
The interest payment on the bond is an expense which would be incurred twice a year because the terms and conditions of the bond contract is that interest be paid semi-annually, that is every six month.
This implies that we would need to work out the interest rate applicable for every six month. This is doe as follows:
Semi-annual interest rate = Annual interest rate / 2
Annual interest rate = 9%
Semi-annual interest rate = 9%/2= 4.5%
Semi-annual interest payment = Interest rate × Nominal value of Bond
Semi-annual interest payment = 4.5% × $3,400,000=$153,000
Semi-annual interest payment= $153,000
An international corporation located in Country A is considering a project in the United States. The currency in Country A, say X, has been strengthening relative to the U.S. dollar; specifically, the average devaluation of the U.S. dollar has been % per year (which is projected to continue). Assume the present exchange rate is units of X per U.S. dollar. a. What is the estimated exchange rate two years from now? b. If, instead, currency X was devaluing at the same rate (% per year) relative to the U.S. dollar, what would be the exchange rate three years from now?
Answer:
a) the US dollar would devaluate by 2.6% in the first year, that means that the exchange rate between X and the US dollar will change from 6.4X per US dollar to 6.2336X per dollar. In two years, as the US dollar devaluates even more, the exchange rate will be 6.0715X per US dollar.
b) if both currencies devaluate at the same rate, then the exchange rate between them will not vary and will still be 6.4X per US dollar.
Explanation:
some information was missing, so I looked it up:
current exchange rate = 6.4X per US dollar
devaluation rate of US dollar = 2.6% per year
Merchant Company purchased property for a building site The costs associated with the property were:
Purchase price $191,000
Real estate commissions 16,600
Legal fees 2,400
Expenses of clearing the land 3,600
Expenses to remove old buildings2,600
What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
a. $193,400 to Land; $25,200 to Building.
b. $207,600 to Land; $8,600 to Building.
c. $210,000 to Land; $2,600 to Building.
d. $216,200 to Land; $0 to Building.
e. $213,600 to Lane; $0 to Building.
Answer:
d. $216,200 to Land; $0 to Building.
Explanation:
Calculation of Cost of the land
Purchase price $191,000
Real estate commissions $16,600
Legal fees $2,400
Expenses of clearing the land $3,600
Expenses to remove old building $2,600
Cost of the land $216,200
Calculation of Cost of Building
0.
Firms that tend to focus on conducting e-business with other businesses are referred to as having a B2B model.
A. True
B. False
Answer:
A. True
Explanation:
B2B model is when companies sell goods or services to other companies instead of a consumer. Also, these transactions can occur through the internet where businesses can generate a contact and make a transaction. Because of this, the statement that says that firms that tend to focus on conducting e-business with other businesses are referred to as having a B2B model is true because this model is about transactions between companies and they can happen through the internet.
every organization has a set of unwritten norms that mambers of the organization accept and understand and which guide their actions. this system of shared meaning is
Answer:
Organization's culture.
Explanation:
Every organization has a set of unwritten norms that members of the organization accept and understand and which guide their actions. This system of shared meaning is organization's culture.
An organizational culture typically comprises of values, norms, beliefs and assumptions which defines the most appropriate ways of behaving in an organization (work environment).
Generally, an organizational culture is usually designed and established by the top executives or management of an organization and communicated to the various employees working there.
According to Robert Quinn and Kim Cameron, an organizational culture can be divided into four (4) main categories;
1. Adhocracy culture.
2. Clan culture.
3. Hierarchy culture.
4. Market culture.
Additionally, the significance of an organizational culture is simply that it creates a unique social, efficient and psychological environment of an organization.
2. A constraint which represents a target value for a problem is called a a. fuzzy constraint. b. vague constraint. c. preference constraint d. soft constraint
Answer: soft constraint
Explanation:
The soft constraint is defined as
a constraint on a random variable (X)that permits overruling the constraint.a function from the domains in its scope(set of variables ) into a real number.Hence, a constraint which represents a target value for a problem is called a soft constraint.
Thus the correct option is d. soft constraint.
Smathers Corp. stock has a beta of 1.23. The market risk premium is 7.00 percent and the risk-free rate is 2.86 percent annually. What is the company's cost of equity?
Answer:
the company's cost of equity is 11.47 %.
Explanation:
The Company`s cost of equity is the return that is required by holders of Common Stocks.
The Cost can be determined using the Capital Asset Pricing Model (CAPM) as follows :
Cost of Equity = Return on Risk Free Rate + Beta × Return on Market Portfolio
= 2.86 % + 1.23 × 7.00 %
= 11.47 %.
the frequency of deposits of federal income taxes withheld and social security and medicare taxes is
Answer: A) amount of the tax liability.
Explanation:
Federal taxes like income taxes withheld and social security and Medicare taxes are mandated to be paid by the IRS depending on the amount of tax liability that is owed.
For 2020 for instance, if in a company's tax lookback period it owed $50,000 or less than $50,000 in tax liability, the company should be a monthly depositor. If however, the company owed more than $50,000 then it is to be a semi-weekly depositor.
Answer:
✓ amount of the tax liability.
Explanation:
The frequency of deposits of federal income taxes withheld and social security and Medicare taxes is most dependent on the:
Based on predicted production of 17,000 units, a company anticipates $255,000 of fixed costs and $216,750 of variable costs. The flexible budget amounts of fixed and variable costs for 15,000 units are (Do not round intermediate calculations):
Answer:
fixed costs = $255,000
variable costs = (15,000 / 17,000) x $216,750 = $191,250
Explanation:
A flexible budget is prepared in order to compare how budgeted revenues and costs actually worked out. In other words, if actual revenues and costs were similar to the budget previously prepared. A flexible budget adjusts actual results and helps management control how efficient the company was in following their budget. That is why a flexible budget is done after the budgeted period is over.
Fixed costs should not change (that is why they are fixed), but variable costs should change if the actual output was different than the budgeted output.
Spruce Ceramics produces large planters to be used in urban landscaping projects. A special earth clay is used to make the planters. The standard quantity of clay used for each planter is 24 pounds. The company uses a standard cost of $2.20 per pound of clay. Spruce produced 3,000 planters in May. In that month, 75,000 pounds of clay were purchased and used at the total cost of $162,000 Read the requirementsLOADING.... Requirement 1. Calculate the direct material price variance. Begin by determining the formula for the price variance, then compute the price variance for the direct materials. (Enter the variance as a positive number. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials)
Answer:
1. $3,000 Favorable
2. $6,600 Unfavorable.
Explanation:
This is an incomplete question. However, the completed part is question number 2, which has been solved below.
1. Direct material price variance
= (Actual price - Standard price) Actual quantity
= ($2.16 - $2.20) × 75,000
= -$0.04 × 75,000
= $3,000 Favorable
Note: Actual price is gotten by; $162,000 / 75,000
= $2.16
2. Direct material quantity variance
= (Actual quantity - Standard quantity) × Standard price
= (75,000 - $72,000) × $2.20
= 3,000 × $2.20
= $6,600 Unfavorable
Note: Standard quantity is gotten by;
24 × 3,000
= 72,000
Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 68,000 −$ 68,000 1 44,000 30,200 2 38,000 34,200 3 25,000 40,000 4 15,600 24,200 a-1. What is the IRR for each of these projects?
Answer:
IRR for A= 35.33%
IRR for B = 31.88%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated using a finacial calculator :
IRR for cash flow A
Cash flow in year 0 = −$ 68,000
Cash flow in year 1 = $44,000
Cash flow in year 2 = $38,000
Cash flow in year 3 = $25,000
Cash flow in year 4 = $15,600
IRR = 35.33%
IRR for cash flow A
Cash flow in year 0 = −$ 68,000
Cash flow in year 1 = $30,200
Cash flow in year 2 = 34,200
Cash flow in year 3 = $40,000
Cash flow in year 4 = $24,200
IRR = 31.88%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button
Which of the following choices below lists all accounts that have a normal debit balance? Multiple Choice Supplies, Accounts Payable, Service Revenue Equipment, Unearned Revenue, and Sales
Answer:
The answer is supplies and equipment
Explanation:
To be in debit side, there must be:
1. Increase in asset
2. Increase in expense
3. Decrease in liability
4. Decrease in equity
5. Decrease in sales or revenue
And to be in credit side, there must be:
1. Decrease in asset
2. Decrease in expense
3. Increase in liability
4. Increase in equity
5. Increase in sales or revenue
So the account that will have normal debit balance is Supplies(expense) and equipment (asset)
Answer following question with true or false and explain.A firm's profit margin is 5%, its debt/assets ratio is 56%, and its dividend payout ratio is 40%. If the firm is operating at less than full capacity, then sales could increase to some extent without the need for external funds, but if it is operating at full capacity with respect to all assets, including fixed assets, then any positive growth in sales will require some external financing.
Answer:
False
Explanation:
As a company's sales level increases, its current assets will increase, e.g. cash, inventories, accounts receivables increase. generally, also the fixed assets increase, specially if the firm was previous producing at full capacity even before total sales increased. But as sales increase, not only do the company's assets increase, its current liabilities generally increase also, and its profits should increase. In this case, 60% of the company's profits are reinvested in the company, and the liabilities represent more than half of the total assets. Therefore, it is possible that the company needs external financing, but it is also possible that it doesn't. You cannot assume that the company will necessarily need external financing, because retained earnings and the increase in current liabilities might be enough to finance the company's growth in sales.
Answer this question on the basis of the given information for an economy in 2016.
Dollar value of resource extraction activity = $20 billion
Dollar value of production activity = $50 billion
Dollar value of distribution activity = $80 billion
Dollar value of final output = $110 billion
Suppose that in 2017, the dollar value of distribution activity fell to $70 billion, but the other values remained the same. Based on this, we could conclude that from 2016 to 2017,
A. neither GO nor GDP were affected by the change in distribution activity.
B. GO fell by $10 billion, while GDP was unchanged.
C. GDP fell by $10 billion, while GO was unchanged.
D. GO and GDP both fell by $10 billion.
Answer: B. GO fell by $10 billion, while GDP was unchanged.
Explanation;
Gross Output is different from GDP in that where GDP only takes into account the dollar value of the final output so as to avoid double counting, the Gross Output takes into account those intermediate expenses and consumption that were used to create the final goods and services.
As such, if the dollar value of distribution activity fell to $70 billion then the Gross Ouput would also have to fall by the equivalent amount which in this case would be $10 million.
As all other values did not change, then neither did the dollar value of final output meaning that GDP did not change.
If bookstore ABC Books determines it is going to sell books at its profit-maximizing price of $15 in a market facing monopolistic competition, calculate total profit for the store
ABC Books Revenue and Cost
Quantity Price Total Revenue Marginal Revenue Total Cost Marginal Cost
0 $26 $0 $325
10 $23 $230 $23 $365 $4
20 $20 $400 $17 $425 $6
30 $18 $540 $14 $505 $8
40 $16 $640 $10 $605 $10
50 $14 $700 $6 $725 $12
60 $12 $720 $2 $865 $14
Answer: $35
Explanation:
Profit will be the Total Revenue less the total costs involved with selling the goods.
Total Revenue at $16 is $640.
Total Cost at $16 is $605.
Profit = 640 - 605
= $35
Note; Your question has $15 as the maximizing price which is not available in the table. It might be a typo so I attached the question.
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 grams $ 7.00 per gram Direct labor 0.6 hours $ 14.00 per hour Variable overhead 0.6 hours $ 6.00 per hour The company produced 4,600 units in January using 10,120 grams of direct material and 2,100 direct labor-hours. During the month, the company purchased 10,690 grams of the direct material at $7.20 per gram. The actual direct labor rate was $14.55 per hour and the actual variable overhead rate was $5.90 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is:
Which of the following stocks is less risky? Stock Average Return Standard Deviation Coefficient of Variation X 10% 40% 4 Y 20% 40% 2
Answer:
Stock X has a CV of 4 while Stock Y has a CV of 2. As stock Y has a lower CV than Stock X, it is less riskier.
Explanation:
The coefficient of variation is a statistical model which is also used to determine the volatility per unit of a factor. In terms of a stock, the coefficient of variation calculates the volatility of its return. It is calculated by dividing the stock's standard deviation, which is a measure of risk, by the stock's mean return or expected return.
CV = SD / r
Where,
CV is coefficient of variationSD is standard deviationr is expected returnThe CV of a stock tells us the risk per unit of return. The higher the CV, the riskier the stock and vice versa.
Stock X has a CV of 4 while Stock Y has a CV of 2. As stock Y has a lower CV than Stock X, it is less riskier.
A firm has sales of $1,220, net income of $226, net fixed assets of $544, and current assets of $300. The firm has $101 in inventory. What is the common-size statement value of inventory
Answer:
11.97%
Explanation:
Common size statement value of inventory is where all accounts are expressed as a percentage of total assets.
Total assets = Net fixed assets + Current assets
= $544 + $300
= $844
Common size statement value of inventory = Inventory ÷ Total assets
= $101 ÷ $844
= 0.1197
= 11.97%
Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $70,000 and $56,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. The two members withdrew amounts equal to their salary allowances. Revenues were $668,000 and expenses were $520,000, for a net income of $148,000. a. Determine the division of $148,000 net income for the year. Schedule of Division of Net Income Farley Clark Total Salary allowance $ $ $ Remaining income Net income $ $ $ b. Provide journal entries to close the (1) revenues and expenses and (2) drawing accounts for the two members. For a compound transaction, if an amount box does not require an entry, leave it blank.
Answer:
a) Farley should get $83,200
Clark should get $64,800
b) December 31, closing entry income summary account
Dr Income summary 148,000
Cr Farley, Martin, capital 83,200
Cr Clark, Ashley, capital 64,800
Explanation:
Martin Farley:
$70,000 salary allowance
60% of remaining income
Ashley Clark:
$56,000 salary allowance
40% of remaining income
if net income = $148,000, then:
Farley should get $70,000 + (60% x $22,000) = $83,200
Clark should get $56,000 + (40% x $22,000) = $64,800
Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision:__________
Complete Question:
Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision:
Group of answer choices.
a. might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant.
b. will reduce the excess supply of labor.
c. is an example of the benefits of a minimum-wage law.
d. All of the above are correct.
Answer:
a. might increase profits if it attracts a better pool of workers to apply for jobs.
Explanation:
Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision might increase profits if it attracts a better pool of workers to apply for jobs.
An excess supply of labor refers to the situation where there are too many number of people working in an organization at a particular period of time.
However, Emeril's decision to raise the wages of his workers might increase profits if he's able to recruit better pool of workers who will be willing and able to work more hours effectively and efficiently. As a result, this would help to boost the level of production and increase the rate at which the consumer's needs or wants are meet.
Vincent operates a scenic tour business in Boston. He has one bus which can fit 50 people per tour and each tour lasts 2 hours. His total cost of operating one tour is fixed at $450. Vincent’s cost is not reduced if he runs a tour with a partially full bus. While his cost is the same for all tours, Vincent charges each passenger his/her willingness to pay (reservation value): adults $18 per trip, children $10 per trip, and senior citizens $12 per trip. At those rates, on a typical day Vincent’s demand is:
Answer:
There is some information missing, and when I looked for it I found similar questions but the demand was already given and the question was about Vincent's total daily income.
Passenger Price Daily demand
Adults $18 70
Children $10 25
Senior citizens $12 55
total 150
total revenue per day = ($18 x 70) + ($10 x 25) + ($12 x 55) = $1,260 + $250 + $660 = $2,170
total operating costs per day = (150 / 50) x $450 = $1,350
operating income per day = $2,170 - $1,350 = $820
On July 1, 20X1, James and Short formed a partnership. James contributed cash. Short, previously a sole proprietor, contributed property other than cash, including realty subject to a mortgage, which the partnership assumed. Short’s capital account on July 1, 20X1, should be recorded at
Answer:
James and Short LLC
Short's capital account on July 1, 20X1 should be recorded at the fair value of contributed property minus the mortgage liability, which the partnership assumed.
Explanation:
The fair value of contributed property is the current market value of the contributed property by Short. It is the market value that will determine how the contributed property can be valued. The market value assumes that the contributed property is being sold in pieces and not as a whole. This is why the value is considered a fair basis for recognizing the capital contribution of Short into the partnership.
Acme Company’s production budget for August is 17,700 units and includes the following component unit costs: direct materials, $6.0; direct labor, $10.2; variable overhead, $6.2. Budgeted fixed overhead is $34,000. Actual production in August was 18,630 units. Actual unit component costs incurred during August include direct materials, $8.40; direct labor, $9.60; variable overhead, $7.00. Actual fixed overhead was $35,700. The standard fixed overhead application rate per unit consists of $2 per machine hour and each unit is allowed a standard of 1 hour of machine time.Required:Calculate the fixed overhead budget variance and the fixed overhead volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Answer:
a. $1,700 U
b. $3,260 F
Explanation:
a. Fixed over head budget variance = Actual fixed overhead - Budgeted fixed overhead
Actual fixed overhead = $35,700
Budgeted fixed overhead = $34,000
Fixed overhead budget variance = $35,700 - $34,000
= $1,700 U
b. Fixed overhead volume variance = Budgeted fixed overhead - Standard fixed overhead
Standard fixed overhead application rate = $2 per machine hr × 1hr
= $2
Budgeted fixed overhead = $34,000
Standard fixed overhead = Standard hours for actual output × Budgeted rate
= (18,630 units × 1hr) × $2
= $37,260
Fixed overhead volume variance
= $34,000 - $37,260
= 3,260 F
On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include a. payments for cash dividends b. amortization of premium on bonds payable c. receipts from the issuance of common stock d. receipts from the sale of investments
Answer:
b. amortization of premium on bonds payable
Explanation:
The Indirect method reconciles the Operating Income to the Operating Cash Flow by adjusting the Operating Income for (1) Non-Cash Items previously added or deducted from the Operating Income and (2) Changes in working capital items.
What must be the price of a $5,000 bond with a 6.6% coupon rate, semiannual coupons, and two years to maturity if it has a yield to maturity of 10% APR?
Answer:
Bond Price = $4698.59
Explanation:
The price of a bond is equal to the present value of the interest payments, which are in form of an annuity, made by the bond plus the present value of the face value of the bond.
The formula to calculate the price of the bond is attached.
The semi annual coupon rate = 6.6% / 2 = 3.3%
Total period = 2 * 2 = 4
Semi annual YTM = 10% / 2 = 5%
Semi annual coupon payment = 5000 * 0.033 = 165
Bond Price = 165 * [( 1 - (1 + 0.05)^-4) / 0.05] + 5000 / (1+0.05)^4
Bond Price = $4698.59
Murie Corporation makes one product and has provided the following information: Budgeted selling price per unit $ 98 per unit sold Budgeted unit sales, February 11,000 units Raw materials requirement per unit of output 5 pounds Raw materials cost $ 3.00 per pound Direct labor requirement per unit of output 2.5 direct labor-hours Direct labor wage rate $ 18.00 per direct labor-hour Predetermined overhead rate (all variable) $ 11.00 per direct labor-hour Variable selling and administrative expense $ 2.70 per unit sold Fixed selling and administrative expense $ 80,000 per month The estimated net operating income (loss) for February is closest to:
Answer:
Net operating income= $5,800
Explanation:
Giving the following information:
Selling price= $98 per unit
Sales= 11,000 units
Variable cost per unit= (5*3) + (2.5*18) + (2.5*11) + 2.7= $90.2
Fixed selling and administrative expense $ 80,000 per month
Contribution margin income statement:
Sales= 98*11,000= 1,078,000
Total variable cost= (90.2*11,000)= (992,200)
Contribution margin= 85,800
Fixed costs= (80,000)
Net operating income= 5,800
The estimated Net operating income for February should be considered as the $5,800.
Giving that:
Selling price per unit is $98.Sales in February is 11,000 units.Fixed selling and administrative expense per month is $80,000.Calculation of the estimated net operating income;Variable cost / unit = ( 5 [tex]\times[/tex] 3 ) + ( 2.5 [tex]\times[/tex] 18 ) + ( 2.5 [tex]\times[/tex] 11 ) + 2.7
= $90.2
Now, we calculate contribution margin,
Total Sales value = $98 [tex]\times[/tex] 11,000 = $1,078,000
Total variable cost = $90.2 * 11,000 = $992,200
Contribution margin = Total Sales value - Total variable cost
= $1,078,000 - $992,200
= $85,800
Now, we can calculate net operating income by using following formula,
Net operating income = Contribution margin - Fixed selling and administrative expense
Net operating income = $85,800 - $80,000
Net operating income= 5,800
Learn more about net income : https://brainly.com/question/15745630
Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $175, 846, net annual cash flows $37, 300, and present value factor of cash inflows for 10 years 5.02 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).)
Determine the net present value, and indicate whether the investment should be made?
Answer:
NPV = $11400
As the NPV from the project is positive, the investment should be made.
Explanation:
The NPV or net present value is an important metric that is used for project and investment evaluation. The NPV is the present value of the series of cash flows provided by the project less the initial cost incurred to undertake the project. NPV can be calculated as follows,
NPV = (Annual Cash Flow * Present value factor) - Initial cost
NPV = (37300 * 5.02) - 175846
NPV = $11400
As the NPV from the project is positive, the investment should be made.
The federal government has the legal authority to prevent a company from adding products through acquisitions if the acquisition threatens to lessen competition.
A. True
B. False
Answer:
True
Explanation:
One way of determining if acquisitions would lessen competition is through the calculation of the HHI. if the HHI of the industry is more than 1500 before the acquisition and the HHI changes by more than 50 after the acquisition, the government would challenge the merger
Pedra, Inc. incurred direct labor costs of $54,000 for 6,000 hours. The standard labor cost was $55,200. During the month, Pedra assigned 6,000 direct labor hours costing $54,000 to production. The standard hours were 6,200. Journalize the transactions for Pedra, Inc. to account for this activity.
Answer and Explanation:
The Journal entry is shown below:-
1. Factory Labor Dr, $55,200
To Labor Price Variance $1,200
To Factory Wages Payable $54,000
(Being factory labor is recorded)
Here we debited the factory labor as it increased the expenses and we credited the labor price variance and factory wages payable as it the factory wages payable increased the liabilities
2. Work in Process Inventory $57,040 ($55,200 ÷ $6,000 × $6,200)
To Labor Quantity Variance $1,840
To Factory Labor $55,200
(Being is work in progress is recorded)
Here we debited the work in progress inventory as it increased the assets and we credited the labor quantity variance and factory labor as the factory labor decreased the expenses