The formula for depreciable cost is
a. Initial cost + Residual value
b. Initial cost – Residual value
c. Depreciable cost = Initial cost
d. Initial cost – Accumulated depreciation
b
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In product-oriented promotions, giving away the product free is called sampling
Indicate whether the statement is true or false
For consideration to have "legally sufficient value," it must consist of goods or money.
Answer the following statement true (T) or false (F)
Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Variable costs per unit: Direct materials$93Fixed costs per year: Direct labor$320,000Fixed manufacturing overhead$2,144,000Fixed selling and administrative expenses$1,364,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit.The company is considering using either super-variable costing or a variable costing system that assigns $10 of direct labor cost to each unit that is produced. Which of the following statements is true
regarding the net operating income in the first year? A. Super-variable costing net operating income exceeds variable costing net operating income by $10,000. B. Super-variable costing net operating income exceeds variable costing net operating income by $67,000. C. Variable costing net operating income exceeds super-variable costing net operating income by $10,000. D. Variable costing net operating income exceeds super-variable costing net operating income by $67,000.
Reagen Corporation makes a product with the following standard costs:??Standard Quantity or HoursStandard Price or Rate?Direct materials3.7 liters$5.00 per liter?Direct labor0.3 hours$21.00 per hour?Variable overhead0.3 hours$7.00 per hourThe company reported the following results concerning this product in December.?Actual output7,700units?Raw materials used in production26,880liters?Actual direct labor-hours2,270hours?Purchases of raw materials28,400liters?Actual price of raw materials$4.90per liter?Actual direct labor rate$21.50per hour?Actual variable overhead rate$6.40per hourThe materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.Required:a. Compute the materials quantity
variance.b. Compute the materials price variance.c. Compute the labor efficiency variance.d. Compute the labor rate variance.e. Compute the variable overhead efficiency variance.f. Compute the variable overhead rate variance. What will be an ideal response?