Eileen Tate, an employee of Great Corp., is 52, and her comp…
Eileen Tate, an employee of Great Corp., is 52, and her company has just converted its defined benefit plan to a cash balance plan. The present value of her accrued benefit is $375,000. Under the cash benefit plan, Great Corp. will make an annual contribution of 11% to the employees’ hypothetical accounts and guarantee a 6% interest rate. If a cash balance plan had been in effect since Eileen’s date of hire, she would have $300,000. Eileen’s annual salary is $105,000. Under the cash balance plan, the value of the annual contribution to Eileen’s retirement account will be
Read DetailsThe Litton Company has established standards as follows: …
The Litton Company has established standards as follows: Direct material 3 pounds per unit @ 4 per pound= 12 per unit Direct Labor 2 hours per unit @ 8 per hour= 16 per unit Variable manufacturing overhead 2 hours per unit @ 5 per hour= 10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. Units produced 600 units Direct materials used 2,000 pounds Direct materials purchased (3,000 pounds) 11,400 Direct Labor cost (1,100 hours) 9,240 Variable manufacturing overhead cost incurred 5,720 The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours. The materials price variance is:
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