Answer:
a. $3,000 favorable
Explanation:
Calculation to determine the direct materials price variance
Using this formula
Direct materials price variance=Actual costs(Standard costs per pound- Actual costs per pound)
Let plug in the formula
Direct materials price variance=5,000($5.10-$4.50)
Direct materials price variance=5,000($0.6)
Direct materials price variance=
$3,000 favorable
Therefore Direct materials price variance is $3,000 favorable
AJ Manufacturing Company incurred $54,500 of fixed product cost and $43,600 of variable product cost during its first year of operation. Also during its first year, AJ incurred $17,350 of fixed and $13,900 of variable selling and administrative costs. The company sold all of the units it produced for $178,000. Required Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). Prepare an income statement using the contribution margin approach.
Answer and Explanation:
The preparation of the income statement under following approaches are
Under generally accepted accounting Principles (GAAP)
Sales $178,000
Less: cost of goods sold ($54,500 + $43,600) -$98,100
Gross margin $79,900
Less: selling & general admin ($17,350 + $13,900) -$31,250
Net income $48,650
Under contribution margin approach
Sales $178,000
Less: variable cost ($43,600 + $13,900) -$57.5
Contribution margin $120,500
Less: fixed cost ($54,500 + $17,350) -$71,850
Net income $48,650
A building is acquired on January 1, at a cost of $830,000 with an estimated useful life of eight years and salvage value of $75,000. Compute depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.)
Answer:
$207,500
$155,625
$116,719
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/8 = 1/4
1 = $830,000 / 4 = 207,500
book value $830,000 - 207,500 = 622,500
2 = 622,500 / 4 = 155,625
book value = 622,500 - 155,625 = 466875
3 466875 / 4 = 116,718.75 = 116,719
Gross Private Domestic Investment $1,593
Personal Taxes 1,113
Transfer Payments 1,683
Taxes on Production and Imports 695
Corporate Income Taxes 218
Personal Consumption Expenditures 7,304
Consumption of Fixed Capital 1,393
US Exports 1,059
Dividends 434
Government Purchases 1,973
Net Foreign Factor Income 10
Undistributed Corporate Profits 141
Social Security Contributions 748
US Imports 1,483
Statistical Discrepancy 50
Refer to the accompanying national income data (in billions of dollars). Corporate profits are equal to
Multiple Choice
$793.
$702.
$575.
$444.
Answer: $793 billion
Explanation:
Following the information provided in the question, the corporate profit will be calculated as:
Undistributed corporate profits = 141
Add: Dividend = 434
Add: Corporate income taxes = 218
Corporate profit = $793
Therefore, the corporate profit is $793 billion
