Grubber Candy Corporation has developed cost standards for the production of its new chocolate, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO: Standard Cost Per BatchMilk chocolate (2 pounds × $0.85 per pound)$1.70 Direct labor (1.25 hours × $12.00 per hour)$15.00 Variable overhead (1.25 hours × $44.00 per hour)$55.00 Variable manufacturing overhead at Grubber is applied based on direct labor-hours. The actual results for last month were as follows: Number of batches produced 3,800Direct labor-hours incurred 4,510Pounds of chocolate purchased 9,000Pounds of chocolate used in production 7,880Cost of chocolate purchased$7,200Direct labor cost$53,218Variable manufacturing overhead cost$205,700What is ChocO's materials (milk chocolate) price
variance?
A. $56 Favorable
B. $740 Unfavorable
C. $502 Unfavorable
D. $450 Favorable
Answer: D
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Indicate whether the statement is true or false
Assuming unearned revenues are originally recorded in balance sheet accounts, the adjusting entry to record earning of unearned revenue is:
A. Decrease a liability; increase revenue. B. Increase an asset; increase revenue. C. Increase an expense; decrease an asset. D. Increase an expense; increase a liability. E. Increase an expense; decrease a liability.
External customer service audits are used to?
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[The following information applies to the questions displayed below.] The following pre-closing accounts and balances were drawn from the records of Carolina Company on December 31, Year 1: Cash$4,000 Accounts receivable$3,400 Dividends 2,000 Common stock 3,900 Land 3,200 Revenue 3,200 Accounts payable 1,800 Expense 2,200 Retained earnings 5,900 What is the amount of net income that will be reported on the Year 1 income statement?
A. $2,200 B. $1,000 C. $3,200 D. $200