Stephanie’s Bridal Shoppe sells wedding dresses. The average…
Stephanie’s Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000, variable costs are $400, and fixed costs are $90,000.How many dresses must the Bridal Shoppe sell to yield after-tax net income of $18,000, assuming the tax rate is 40%?
Read DetailsOverhead is applied on the basis of direct labor hours. B…
Overhead is applied on the basis of direct labor hours. Budgeted Direct Labor Hours 6,500 SP for Variable Overhead $1.70 Actual Variable Overhead $12,960 SQ x SP for Variable Overhead $11,560 SQ x SP for Fixed Overhead $23,120 Budgeted Fixed Overhead $22,100 Actual Fixed Overhead $24,000 Actual Direct Labor Hours 6,500 The fixed overhead volume variance was:
Read DetailsBeany Company is in the process of preparing a cash receipts…
Beany Company is in the process of preparing a cash receipts schedule for October. October sales are budgeted to be $1,000,000. Collections of sales are expected to be as follows: 50% in the month of sale40% in the month following the sale7% in the second month following the sale3% uncollectible. Uncollected sales as of September 31st are $500,000 of which $100,000 represents uncollected August sales and $400,000 represents uncollected September sales.Cash receipts for October would be budgeted to be:
Read DetailsExcalibur bought 3,000 pounds of materials for $2,850. They…
Excalibur bought 3,000 pounds of materials for $2,850. They used 2,800 pounds to produce 1,000 units of output. Direct labor costs totaled $18,000 for 600 hours of work. Standards have been set as follows:Direct Materials: 2 pounds @ $1.10 per pound Direct Labor: .5 hours @ $32 per hour The materials efficiency variance is:
Read DetailsBasix Inc. calculates direct manufacturing labor variances a…
Basix Inc. calculates direct manufacturing labor variances and has the following information: Actual hours worked: 200Standard hours: 250Actual rate per hour: $12Standard rate per hour: $10 Given the information above, which of the following is correct regarding direct manufacturing labor variances?
Read DetailsMary Jacobs, the controller of the Jenks Company is working…
Mary Jacobs, the controller of the Jenks Company is working on Jenks’ cash budget for year 2. She has information on each of the following items: I. Wages due to workers accrued as of December 31, year 1.II. Limits on a line of credit that may be used to fund Jenks’ operations in year 2.III. The balance in accounts payable as of December 31, year 1, from credit purchases made in year 1. Which of the items above should Jacobs take into account when building the cash budget for year 2?
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