Neuhaus Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:InputsStandard Quantityor HoursStandard Priceor RateStandard CostDirect materials1.7gallons$7.50per gallon$12.75Direct labor0.70hours$21.50per hour 15.05Fixed manufacturing overhead0.70hours$6.00per hour 4.20Total standard cost per unit $ 32.00During the year, the company completed the following transactions:a. Purchased 52,900 gallons of raw material at a price of $7.60 per gallon.b. Used 46,820 gallons of the raw material to produce 27,600 units of
work in process.Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.?CashRaw MaterialsWork in ProcessFinished GoodsPP&E (net)=Materials Price VarianceMaterials Quantity Variance1/1$1,160,000$45,900$0$67,200$757,400=$0$0a.?????=??b.?????=???Labor Rate VarianceLabor Efficiency VarianceFOH Budget VarianceFOH Volume VarianceRetained Earnings1/1$0$0$0$0$2,030,500a.?????b.?????When the raw materials used in production are recorded in transaction (b) above, which of the following entries will be made?
A. ($750) in the Materials Price Variance column
B. $750 in the Materials Quantity Variance column
C. $750 in the Materials Price Variance column
D. ($750) in the Materials Quantity Variance column
Answer: B
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Expenses originate from
a. using an asset or recognizing liabilities. b. incurring liabilities or providing services to customers. c. collecting cash from customers. d. paying off liabilities.
Martha died and by her will, specifically bequeathed, and the executor distributed, $20,000 cash and a $70,000 house to Harold. The distributions were made in a year in which the estate had $65,000 of DNI, all from taxable sources. The maximum Harold will be required to report as gross income as a result of these distributions is
A. $65,000. B. $20,000. C. $0. D. $70,000.
Wellston Company's net income last year was $300,000. The company has 100,000 shares of common stock and 30,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. The company declared and paid dividends last year of $1.90 per share on the common stock and $1.70 per share on the preferred stock. The earnings per share
of common stock is closest to: A) $3.51 B) $1.10 C) $2.49 D) $3.00
Discuss the three needs for managers according to McClelland.
What will be an ideal response?