Harold Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March:Data used in budgeting: Fixed element per monthVariable element per unitRevenue - $39.80 Direct labor$0 $7.70Direct materials 0 18.00Manufacturing overhead 38,200 1.50Selling and administrative expenses 27,400 0.50Total expenses$65,600 $27.70?Actual results for March: Revenue$297,318Direct labor$59,962Direct materials$135,850Manufacturing overhead$51,370Selling and administrative
expenses$31,950?The spending variance for direct materials in March would be closest to:
A. $6,350 F
B. $6,350 U
C. $5,630 F
D. $5,630 U
Answer: C
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David, Chris and John formed a partnership on July 31, 2019. They decided to share profits equally, but inserted a clause in the partnership agreement where any losses would be allocated in the ratio of 5:2:3, respectively. For the year ended December 31, 2019, the firm earned a net income of $50,000. However, for the year ended December 31, 2020, the firm incurred a loss of $60,000. Assuming that John had an initial capital contribution of $43,000 and made no withdrawals, what is the balance of John's Capital account as of December 31, 2020? (Assume that none of the partners made any further contributions to their capital accounts. Do not round any percentage calculations. Round all monetary calculations to the nearest dollar.)
A) $41,667 B) $43,000 C) $59,667 D) $44,333
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