Answer the following statements true (T) or false (F)
1. In a standard costing system, each input of direct materials, direct labor, and manufacturing overhead has a cost standard and an efficiency standard.
2. A standard cost system helps management set performance standards.
3. A favorable direct materials cost variance occurs when the actual direct materials cost incurred is less than the standard direct materials cost.
4. A favorable direct materials cost variance occurs when the actual direct materials cost incurred is greater than the standard direct materials cost.
5) Favorable and unfavorable variances are netted together in the same way debits and credits are.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. TRUE
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On April 1, 2018, GMR Company purchased 30% of the outstanding voting stock of the Victory Corporation for $960,000. Victory's net assets on April 1, 2018 totaled $2,500,000. Victory's equipment was undervalued by $500,000 and its inventory was undervalued by $200,000 as of the date of purchase. The equipment has a ten-year remaining life as of April 1, 2018; the inventory was sold during 2018. Victory reported $450,000 of net income during 2018 and paid dividends of $75,000. Assume that net income was recognized evenly during 2018 and dividends were declared and paid evenly during 2018. Required:
Prepare a schedule to determine the amount of investment income to be reported by GMR during 2018 assuming that the equity method of accounting is applicable. Prepare a schedule to determine the balance in the investment account as of December 31, 2018 assuming that the equity method is applicable. Describe how the financial accounting and reporting would have differed if the equity method was not applicable. Describe how equity method investments are accounted for if GMR uses the fair value option of accounting for its investment. What will be an ideal response?
Which of the following is included in the entry to record estimated warranty payable?
A) a credit to Estimated Warranty Payable B) a credit to Merchandise Inventory C) a credit to Warranty Expense D) a debit to Estimated Warranty Payable
Why can we expect more conflicts in the future?
What will be an ideal response?
Union security provisions:
a. are unlawful under the NLRA because they require employers to discriminate against employees who do not support their unions b. are unlawful in states that have "right to work" laws c. require that employers recognize and negotiate with the unions chosen by their employees d. require that employees financially support all union activities, regardless of any objections the employees might have to doing so e. none of the above