• Q : Contemplating an ad campaign-net operating income....
    Accounting Basics :

    Doe company's variable expenses are 29% of sales. Doe is contemplating an ad campaign that will cost $19,000. If sales increase by $79,000, the company's net operating income should increase by: (do

  • Q : Land after the complete liquidation....
    Accounting Basics :

    What amount of gain or loss does Michelle recognize in the complete liquidation and what is her tax basis in the building and land after the complete liquidation?

  • Q : Three-year insurance premium payment....
    Accounting Basics :

    L Company discovered that a three-year insurance premium payment of $240,000 one year ago was debited to insurance expense.

  • Q : Compute the amount of gain-loss on the transfer of land....
    Accounting Basics :

    Ludwig, Inc., which owes Giffin Co. $2,400,000 in notes payable, is in financial difficulty. To eliminate the debt, Giffin agrees to accept from Ludwig land having a fair value of $1,830,000 and a

  • Q : Gain or loss experienced by hurst in reacquiring bonds....
    Accounting Basics :

    The remainder of the outstanding bonds is reacquired by exercising the bonds' call feature. In the final analysis, how much was the gain or loss experienced by Hurst in reacquiring its 8% bonds? (As

  • Q : What is total period cost for month under variable costing....
    Accounting Basics :

    Overhead $15, variable selling & admin. $6. fixed costs= fixed manufacturing overhead $313,100, fixed selling & admin. expenses $114,000. What is the total period cost for the month under va

  • Q : Overall break-even point for the entire company....
    Accounting Basics :

    If the sales mix were to shift to product A with total dollar sales remaining constant, the overall break-even point for the entire company? would increase, would not change, could increase or decre

  • Q : What is the direct labor efficiency variance....
    Accounting Basics :

    The actual direct labor wage rate is $8.50 and 4,500 direct labor-hours were actually worked during the month. The standard direct labor wage are is $8.00 and the standard quantity of hours allowed

  • Q : Calculate the overhead controllable variance....
    Accounting Basics :

    The predetermined overhead rate is $6 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $4 variable per direct labor hour and $50,000 fixed

  • Q : Internal rate of return methods of capital budgeting....
    Accounting Basics :

    The net present value and internal rate of return methods of capital budgeting are superior to the payback method in that they:

  • Q : Variable cost per unit as a performance measure....
    Accounting Basics :

    What problems are associated with using the average cost per unit as a performance measure? What problems are associated with using the variable cost per unit as a performance measure?

  • Q : Find out the total compensation cost....
    Accounting Basics :

    Assume that no shares are forfeited. Determine the total compensation cost pertaining to the restricted shares.

  • Q : Straight-line method for depreciation based problem....
    Accounting Basics :

    A machine with a 5-year life was purchased on January 1, 2010. The machine cost $20,000 and has no expected salvage value. No depreciation was taken in 2010 or 2011. Assume the straight-line method

  • Q : Preparing the appropriate journal entries....
    Accounting Basics :

    Prepare appropriate journal entries (assume the 2011 books have not been closed). Ignore income taxes.

  • Q : Audit trail of documentary evidence problem....
    Accounting Basics :

    An auditor wishes to perform tests of controls on a client's cash disbursements procedures. If the control activities leave no audit trail of documentary evidence, the auditor most likely will test

  • Q : What is the flexible-budget amount....
    Accounting Basics :

    The following fixed overhead data pertain to March: Production Actual: 25,000 units Static Budget: 24,000 units Machine-hours Actual: 6,100 hours Static Budget: 6,000 hours Fixed overhead costs for

  • Q : Translating foreign exchange related transactions....
    Accounting Basics :

    Discuss the evolving accounting standards for recording and translating foreign exchange related transactions and financial statements? Specifically consider:

  • Q : Balance reported in the bonds payable account....
    Accounting Basics :

    Anzia Company issues €10,000,000, 7.8%, 20-year bonds to yield 8% on July 1, 2011. Interest is paid on July 1 and January 1. The proceeds from the bonds are $9,604,145. The balance reported in

  • Q : Political strategist claim warranted....
    Accounting Basics :

    A political strategist claims that 56% of voters in Madison County support his candidate. In a poll of 200 randomly selected voters, 100 of them support the strategist's candidate. At = .05, is the

  • Q : Total cash interest over th elife period....
    Accounting Basics :

    Samson Company issued 2,000, 5-year bonds at 105 on 1/1/10. The bonds pay 8% interest annually. how much will samson recive when the bond is issued, arrying value on the date issued, is it a premium

  • Q : Variable overhead efficiency variance for indirect labor....
    Accounting Basics :

    The actual machine-hours for the month were 49,890 machine-hours. The budgeted indirect labor is $1.20 per machine-hour. The actual indirect labor cost for the month was $56,408. The variable overhe

  • Q : Labor efficiency variance for specific month....
    Accounting Basics :

    During the month of May, Discover's toothpick motor production used 5,900 direct labor-hours at a total direct labor cost of $54,575. This resulted in production of 4,800 toothpick motors for May. W

  • Q : Standard price per kilogram of the input....
    Accounting Basics :

    By paying cash, the company gets a discount of 8% off this purchase price. Shipping costs from the supplier's warehouse amount to $3.60 per kilogram. Receiving costs are $0.26 per kilogram. The stan

  • Q : What are the options market value....
    Accounting Basics :

    The exercise price on one of Nice Co's call options is $20, its exercise value is $31, and its premium is $7. What are the option's market value and the stock's current price?

  • Q : Total variable overhead variance....
    Accounting Basics :

    The company applies variable overhead to products on the basis of standard direct labor-hours. The total variable overhead variance (including both the rate and efficiency variances) for November was:

©TutorsGlobe All rights reserved 2022-2023.