Variable Overhead Performance Report with Just a Spending Variance [LO3] Jessel Corporation bases its variable overhead performance report on the actual direct labor-hours of the period. Data concerning the most recent year that ended on December 31 are as follows: Budgeted direct labor-hours 42,000 Actual direct l
A company established a branch to sell automobile seat covers. The company purchases these covers and stores them in a warehouse. The covers are then shipped from the warehouse to both the home office and the new branch FOB destination. Home office management is responsible for setting the transfer price of the covers charged to
L & L, CPAs, employs two full-time professional CPAs and five other accountants. Budgeted direct salary costs include $150,000 for each CPA and $40,000 per other accountant. For 2007 year, indirect costs were budgeted at $200,000, but actually amounted to $225,000. Actual salaries were $155,000 for each CPA and $45,000 for each
If estimated annual factory overhead is $480,000, estimated annual direct labor hours are 200,000, actual March factory overhead is $41,000, and actual March direct labor hours are 17,000, then overhead is: $800 overapplied. $200 overapplied. $800 underapplied. $200 underapplied. $1,000 underappli
A materials efficiency variance can be caused by all of the following except what: Quantity of actual output achieved. Performance of the workers in using the materials. Quality of the materials. Skill level of the workers using the materials. All of the factors listed above.
The problem is circled in green in the attachment. My problems are with the first journal entry and with calculating the Goodwill. I know the first entry to record aquisition is a debit to Investment in Net Assets of Cooper Co. account. I know that it is calculated like this (($1,000,000 * 0.258419) + ($50,000 * 10.594014))
Intangible assets are typically amortized over a 15 year period compared to 5- and 7- year assets. Can anyone see how a taxpayer might want assets appraised upon purchase? Any potential for abuse? When does "stuffing" become evasion as opposed to avoidance?
2) Southern Machines has a net income this year of $500 on sales of $2,000 and is operating its fixed assets at full capacity. Management expects sales to increase by 25 percent next year and is forecasting a dividend payout ratio of 30 percent. The profit margin is not expected to change. If spontaneous liabilities are $500 thi
9. Top Hat Sports manufactures baseball caps. The following information is available for 2008, the company's first year in business when it produced 150,000 caps. Revenue of 240,000 was generated by sale of 90,000 caps. Production Variable Fixed Direct materi
Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases..................... E250,000 Freight In.................. E8,000 Sales discounts............. 4,000 Purchase returns........ 7,000 Inventory Sales.......
39 Assume the following for your corporation: sales (aka revenue) $250 Cost of goods sold 160 depreciation 35 Interest Expense 20 tax rate = 34% What is the corporation's total after tax net income? a. 23.10 b
The dividend payout ratio for firm ABC is 60%, k is 13% and the expected growth of dividends is 7%. a) What is the current earnings multiplier? b) You expect the payout ratio to decline to 50%, all else equal. What is the new earnings multiplier? c) With the payout ratio at 60%, the rate of inflation increases 3% while the
A. When comparing the purchase method with the pooling method, which statement is true? -Under the purchase method the acquired company's current year income is included in the acquiring company's income statement, even if the combining takes place on the last day of the fiscal period -under both methods goodwill may be reco
YOU ARE GIVEN THE FOLLOWING ESTIMATED PER SHARE DATA RELATED TO THE S&P INDUSTRIAL INDEX FOR THE YEAR 2010: SALES $1,320.00 DEPRECIATION $ 58.00 INTEREST EXPENSE $ 28.00 YOU ARE INFORMED THAT THE ESTIMATED OPERATION PROFIT MARGIN IS 0.16 AND THE TAX RATE IS 32 PERCENT. a-COMPUT
What do you think about a person in a situation where they have had income some years and losses in others? A person has paid taxes in some years on income. Should the losses be deductible if the subjective criteria are not in the taxpayer's favor?
Company X is a software company that currently recognizes revenue when the agreement/contract is signed. Company X is considering a more conservative approach by recognizing revenue at the deliver of the product to customer. Therefore, it's considering changing its revenue recognition policy. Days in receivable under curre
During 2009, Falwell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Falwell did not declare or pay any dividends during 2009. Falwell's net income for the year ended December 31, 2009, was $2.5 million. The income t
Blithe Company purchased 60 percent of Spirit Company's stock for $100,000 on January 1, 2006 when Spirit reported $120,000 of common stock outstanding and retained earnings of $25,000. On December 31, 2008, Blithe reported its investment in Spirit at $126,100 using equity-method accounting for its investment. Blithe received di
The following transactions pertain to Jones Corporation for 2009. Jan 1. Began operations when the business acquired $50,000 cash from the issue of common stock. Mar. 1 Paid rent for office space for two years, $18,000 cash. Apr. 1 Borrowed $40,000 cash from First National Bank. The note issued had an 8 percent annual
How does one include a hobby into a S Corporation? And if one shareholder were to include a hobby, I would also assume that all shareholders would have to follow suit for consistency. Intuitively it makes sense that adding a hobby would create a red-flag, but under what context does the red-flag arise?
What are the suggested best practices for tax advisors? Can the IRS penalize practitioners under Circular 230? If so, in what ways? Explain.
O7). Use the following information for questions I and II below. Rice Co. purchased machinery that cost $810,000 on January 4, 2006. The entire cost was recorded as an expense. The machinery has a nine-year life and a $54,000 residual value. The error was discovered on December 20, 2008. Ignore income tax considerations. I
I'm curious as to what happens if an individual has two or more hobby-activities that an individual treats as a business. If two or more activities were to incur losses for a year or more, and for the sake of argument-- simultaneously (as even hobby activities may be affected by recessionary downturns); do such losses from two o
TAX "ISSUE" IDENTIFICATION QUESTIONS (Try to answer two questions from each chapter). No solutions, please. Just answer without having to actually solve a problem. C9-19 Bob and Kate form the BK Partnership, a general partnership, as equal partners. Bob contributes an office building with a $130,000 FMV and a $95,000 adjust
Suppose that wish to test Ho: µ=10 versus Ha: µ>10 at the ∝ = 0.05 significance level. Furthermore, suppose that we observe values of the sample mean and sample standard deviation when n = 40 that do not lead to the rejection of Ho. Is it true that we might reject Ho if we observe the same values of the sample mean and
As our world constantly experiences change, our communication-related theories continue to evolve to meet our new realities. Visit the Emotional Intelligence and QEMS Web sites to explore the current theories of emotional intelligence and quantum energy management. 1. Discuss the validity and possible applications of these tw
At December 31, 2005, Lincoln and Ebert were equal partners in a partnership with net assets having a tax basis and fair market value of $150,000. On January 1, 2006, Gregory contributed securities with a fair market value of $75,000 (purchased in 2003 at a cost of $51,000) to become an equal partner in the new firm of Lincoln,
Amy acquired a 50% interest in the Giant Partnership by contributing property with an adjusted basis of $100,000. Amy would recognize a gain if I. The fair market value of the contributed property exceeds its adjusted basis. II. The property is encumbered by a mortgage with a balance of $50,000. Choices - I only, II only,
Part I Fill in the blanks: Question 1 to 8: In the space provided, classify each as it would be reported on a balance sheet. Use the following code: A -----Asset L -----Liability SE ------ stockholders' equity _____1. Accounts Payable _____2. Accounts Receivable _____3. Buildings _____4. Cash _
See attached article for reference. According to NASA's former auditor, PriceWaterhouseCoopers (PWC), NASA's finances are a mess, with major errors in its last financial statements and insufficient documentation. NASA's chief of internal financial management has maintained that the problems resulted from a difficult transitio