ABC Company is a shipping container refurbishment company that measures its output by the number of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ABC Company is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for May. Fixed Variable Element Actual Total for Element per Container May per Month Refurbished Revenue $5,300 $156,400 Employee salaries and wages $42,900 $1,300 $82,300 Refurbishing materials $500 $15,100 Other expenses $42,900 $41,900 When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May. The spending variance for "Employee salaries and wages" for May would have been closest to: Fixed Variable Element Actual Total for Element per Container May per Month Refurbished Revenue $5,300 $156,400 Employee salaries and wages $42,900 $1,300 $82,300 Refurbishing materials $500 $15,100 Other expenses $42,900 $41,900 When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May. The spending variance for "Employee salaries and wages" for May would have been closest to: O $4,300 F O $1,700 U O $1,700 F O $4,300 U ABC Company is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for May. Fixed Variable Element Actual Total for Element per Container May per Month Refurbished Revenue $5,300 $156,400 Employee salaries and wages $42,900 $1,300 $82,300 Refurbishing materials $500 $15,100 Other expenses $42,900 $41,900 When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May. The spending variance for "Employee salaries and wages" for May would have been closest to: Fixed Variable Element Actual Total for Element per Container May per Month Refurbished Revenue $5,300 $156,400 Employee salaries and wages $42,900 $1,300 $82,300 Refurbishing materials $500 $15,100 Other expenses $42,900 $41,900 When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May. The spending variance for "Employee salaries and wages" for May would have been closest to: O $4,300 F O $1,700 U O $1,700 F O $4,300 U
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firms product is $150. a. Complete the table. b. At what output rate does the firm...
-
T1 INTRODUCTION TO AUDITING 1. Give a definition of auditing. Outline its major points. 2. Compare and contrast the following types of audits that can be performed in regards to the following...
-
ABC Company is a relatively small dry-cleaning operation that has a very steady level of business. Since the company hired a new employee, however, cash inflows have decreased and the amount of...
-
Write a bash shell script which calculate BMI (Body Mass Intensive). The BMI formula uses your weight (in kg or pounds) and your height (in meters or inches) to form a simple calculation that...
-
Baryla Inc. manufactures high-quality decorator lamps in a plant located in eastern Tennessee. Last year the firm had sales of $100 million and a gross profit margin of 40 percent. a. How much...
-
Obtain AT&Ts 2009 annual report from the companys Web site. Refer to Note 4. What information do you find indicating the amount of intercompany asset transfers during 2009?
-
Discuss the relevance of Reichheld et al. s model of the virtuous circle to selling and sales management.
-
Wyalusing Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers lots. Wyalusing expanded into the precut housing...
-
Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $122,860. The seller agreed to allow a 4.25 percent discount because Southwest Milling...
-
For this activity, you'll research potential libraries or modules to use that are compatible with PythonAnywhere to help you script using the data required. Step 1: Find Compatible Libraries A client...
-
Build a data table in G21:AB42 that shows what 2021 EPS would be based on the revenue growth rate and cost of goods sold / revenue assumptions listed in Table 1. Input the revenue growth rate...
-
If you follow this strategy, how much money does the firm initially borrow? How much will be available to finance the acquisition in six months? 3. Imagine that the yield curve is currently flat. The...
-
The finance director for the City of Green Falls printed the General Fund Revenues and Appropriations Ledgers shown below for the year just ended. Ref. 102 103 Accrued Revenue Previous Deferral 104...
-
Now calculate the beta for each stock using Excel's Slope or Linest function to use estimate the slope of the linear regression line, which is beta. Use the S&P 500 index as the market portfolio in...
-
calculate 1) Fixed-Payment Coverage Ratio 2) Gross Profit Margin 3) Earnings per share (EPS) 4) Market/Book (M/B) Ratio INCOME STATEMENT Revenue Cost of goods sold Gross profit Other income Selling...
-
1. The marginal benefits of five individuals for a public good, gardeners, in their neighborhood are as follows: Show your working and calculation. Draw graph if it is necessary. Individuals Mohd...
-
D Question 14 In which scenario would a person likely engage in crossover voting? A Republican feels strongly that the current Republican front-runner would make a bad general election candidate and...
-
On October 31 Juanita Ortega, owner of Outback Guide Service, received a bank statement dated October 30. Juanita found the following: 1. The checkbook has a balance of $2,551.34. 2. The bank...
-
a. One hundred twenty units of end item Z are needed at the beginning of week 7. Prepare a material requirements plan for component C. Take into account that on hand there are 40 units of Z, 70 units...
-
Give three examples of unethical behavior involving location selection, and indicate which ethical principle is violated
-
A new order has come into your department. The capability of the process used for this type of work will enable virtually all of the output to be well within the specs. a. What benefits might be...
-
The differential equation governing the free vibrations of a SDOF system with viscous damping as the only form of friction is a second-order homogeneous differential equation. Indicate whether the...
-
Consider the differential equation \[ \ddot{x}+2 \zeta \omega_{n} \dot{x}+\omega_{n}^{2} x=0 \] Define in words and in terms of system parameters \(m\), \(c\), and \(k\) for (a) \(\omega_{n}\) and...
-
The amplitude of an undamped SDOF system is time dependent. Indicate whether the statement presented is true or false. If true, state why. If false, rewrite the statement to make it true.
Study smarter with the SolutionInn App