Answer: Parker Corporation a) Closing Journal Entries: General Journal Description Debit Credit 12/31 Service fees revenue $92,500 Interest income 2,200 Retained earnings 42,700 Income Summary $137,400 to close credit items to the Income Summary. Income Summary $64,700 Salaries expense $41,800 Advertising expense 4,300 Depreciation expense 8,700 Income tax expense 9,900 to close debit items to the Income Summary. b. T-accounts: Debit Credit Service fees revenue $92,500 Adjusted balance $92,500 Income Summary $92,500 Balance $0 Interest income $2,200 Adjusted balance $2,200 Income Summary $2,200 Balance $0 Salaries expense $41,800 Adjusted balance $41,800 Income Summary $41,800 Balance $0 Advertising expense $4,300 Adjusted balance $4,300 Income Summary $4,300 Balance $0 Depreciation expense $8,700 Adjusted balance $8,700 Income Summary $8,700 Balance $0 Income tax expense $9,900 Adjusted balance $9,900 Income Summary $9,900 Balance $0 Retained earnings Adjusted Balance 42,700 Income Summary $42,700 Balance $0 Explanation: a) Data: Parker Corporation Adjusted Account Balances Debit Credit Service fees revenue $92,500 Interest income 2,200 Salaries expense $41,800 Advertising expense 4,300 Depreciation expense 8,700 Income tax expense 9,900 Retained earnings 42,700.
Answer:
The labor cost each month this year is $53,000.
Explanation:
Step 1: Calculate the total labor cost for last year
T=C×N
where;
T=total yearly labor cost from last year
C=cost of labor for each month
N=number of months within a year
In our scenario;
T=unknown, calculation needed
C=$44,000 monthly
N=12 months
Substituting;
T=(44,000×12)=$528,000
Step 2: Calculate this year’s total labor cost
This year’s labor cost can be represented as;
Y=T+I
where;
Y=total labor cost for this year
T=previous year’s labor cost
I=increased cost from last year to this year
<pIn our scenario;
Y=unknown, calculation needed
T=$528,000
I=$108,000
Substituting;
Y=(528,000+108,000)=$636,000
Step 3: Calculate the monthly labor cost for this year
This year’s monthly labor expense= this year’s labor cost/number of months per year
where;
Monthly labor cost for this year=unknown, calculation pending
This year’s labor cost=$636,000
Months in a year=12
Substituting;
Monthly labor cost for this year=(636,000/12)=$53,000
The monthly labor expense for this year is $53,000.
Answer:
a. Overall labor variance $4,000 Unfavorable
Labor rate variance $1,200 Unfavorable
Labor efficiency variance $2,860 Unfavorable
b. $2,300 Favorable
Explanation:
a. The calculation of total, price, and quantity variances for labor is detailed below:
1. Total labor variance = (Produced units × Direct labor hours × Rate per hour) - (Actual direct labor hours × Average wage rate)
= (2,000 × 1.90 × $14.00) - (4,000 × $14.30)
= $53,200 - $57,200
= $4,000 Unfavorable
Labor price variance = (Hourly rate - Average rate) × Actual direct labor hours
= ($14.00 - $14.30) × 4,000
= -$0.3 × 4,000
= $1,200 Unfavorable
Labor quantity variance = (Produced units × Direct labor hours - Actual direct labor hours) × Hourly rate
= (2,000 × 1.90 - 4,000) × $14.30
= (3,800 - 4,000) × $14.30
= -200 × $14.30
= $2,860 Unfavorable
b) Total overhead variance = Manufacturing overhead incurred - (Produced units × Direct labor hours × Predetermined overhead rate)
= $81,300 - (2,000 × 1.90 × $22.00)
= $81,300 - $83,600
= $2,300 Favorable
Answer:
vertical integration strategy
Explanation:
Vertical integration in supply chain management involves a company broadening its operations to encompass its suppliers, distributors, and/or retailers, which allows for control over both the upstream and downstream segments of the supply chain.
In this scenario, Beatrice is proposing a vertical integration approach for the company to enter the dairy farming sector, thereby allowing the company to regulate its raw milk supply.
A purchasing department may face challenges acquiring a product promptly if it is not immediately available, resulting in delays. Additionally, obtaining a product at an acceptable cost can be problematic, requiring the purchaser to seek alternatives, which can also consume extra time.
