Information relating to direct labor for Brussels, Inc follow: Actual direct labor hours 8,200 Standard direct labor hours 8,100 Total direct labor per payroll $101,000 Standard labor rate per hour $11.00 The labor efficiency variance is:
a. $4,100 unfavorable
b. $5,300 unfavorable
c. $4,050 unfavorable
d. $1,100 unfavorable
d
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In performing substantive tests on account balances, the auditor performs tests for all five assertions
a. True b. False Indicate whether the statement is true or false
All the cosmetics that a firm offers are a:
a. product mix b. product line c. brand name d. store brand e. trademark
An IRA contribution may defer taxes on current income
Indicate whether the statement is true or false
The management of Furrow Corporation is considering dropping product L07E. Data from the company's budget for the upcoming year appear below:Sales$830,000Variable expenses$365,000Fixed manufacturing expenses$291,000Fixed selling and administrative expenses$166,000In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $186,000 of the fixed manufacturing expenses and $106,000 of the fixed selling and administrative expenses are avoidable if product L07E is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be:
A. $8,000 B. ($173,000) C. $173,000 D. ($8,000)