Rients Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October. Fixed Element per MonthVariable Element per Customer ServedActual Total for OctoberRevenue $4,100$182,900Employee salaries and wages$42,300 $1,300$98,800Travel expenses $700$30,500Other expenses$31,500 $31,900?When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October.?The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible
budget for October would have been closest to:
A. $23,000 F
B. $2,500 F
C. $2,500 U
D. $23,000 U
Answer: B
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Atlanta Systems produces two different products, Product A, which sells for $250 per unit, and Product B, which sells for $400 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows: CostUsage by Product AUsage by Product BDesign (Engineering Hours)$150,000 100 150 Machining (Machine Hours)$1,000,000 2,000 3,000 Inspection (Batches)$80,000 50 30 Atlanta manufactures 10,000 units of Product A and 7,500 units of Product B per month. Each unit of Product A uses $100 of direct materials and $45 of direct labor, while each
unit of Product B uses $140 of direct materials and $75 of direct labor. Required: a. Calculate the Design activity proportions for Products A and B. b. Calculate the Machining activity proportions for Products A and B. c. Calculate the Inspection activity proportions for Products A and B. d. Determine the indirect costs assigned to Product A. e. Determine the indirect costs assigned to Product B. f. Determine the manufacturing cost per unit for Product A. g. Determine the manufacturing cost per unit for Product B. h. Determine the gross profit per unit for Product A. i. Determine the gross profit per unit for Product B. What will be an ideal response?
The business being separate and distinct from the owners is an integral part of the:
a. time period assumption. b. going concern assumption. c. business entity assumption. d. realization assumption. e. None of the answers are correct.
In Kantian ethics, the principle of inconsistency postulates treating all ethical cases differently
Indicate whether the statement is true or false
Generally, a contract may include language that limits or alters the damages recoverable for a breach of warranty, as long as the restrictions are not unconscionable
a. True b. False Indicate whether the statement is true or false