24) Eel Electronics Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard for each radio is 0.9 hours. The standard direct labor cost per hour is $7.20. During the month of August, Eel's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708. This resulted in production of 6,900 water ski radios for August. What is Eel's labor rate variance for August? A) $1,188 Unfavorable B) $2,808 Unfavorable C) $972 Favorable D) $2,160 Favorable 25) Last year Common Carp Company had sales of $600,000, a turnover of 3.6, and a return on investment of 18%. The company's net operating income for the year was: A) $15,000 B) $108,000 C) $166,667 D) $30,000 The Arapaima Corporation, a merchandising firm, has budgeted its activity for December according to the following information Sales at $550,000, all for cash The cash balance at December 1 was $25,000. Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash. All purchases are paid for in cash. 26) The budgeted cash receipts for December are: A) $585,000 B) $550,000 C) $412,500 D) $137,500
Which of the following is not an acceptable method of determining the required annual payment of federal income tax for corporations? A) 100 percent of the prior year's tax liability (with a few exceptions) B) 100 percent of the current year's tax liability C) 100 percent of the estimated current year tax liability using the annualized income method D) All of the choices are acceptable methods of determining the required annual payment of federal income tax for corporations. Explain. Explain.
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