Answer:
$12
Explanation:
The standalone price is the price at which the seller (Verma) would sell its products or services (discount coupon) separately to other customers.
to determine the standalone price of the discount coupon we must multiply the change in discount by the expected use of the coupons:
- change in discount = $150 x (50% - 10%) = $150 x 40% = $60
- expected use = 20%
= $60 x 20% = $12
Answer:
C. $25,960
Explanation:
Cost of asset includes all the cost involved to acquire and install the asset. In simple term all the costs that are necessary to make the asset usable are capitalised and added to the cost of the asset.
In this question stamping machine has following cost which need to be capitalised.
Discounted Price = $24,000 x ( 100% - 3% ) = $24,000 x 97% = $23,280
Transportation cost = $550
Sales Tax = $1,680
Installation cost = $450
Total cost to be capitalized = $23,280 + $550 + $1,680 + $450 = $25,960
Routine Maintenance cost is the routine / period cost which incur every month, It is not necessary to make the asset usable and it is incurred after the asset is used.
Answer:
$10,950 Unfavorable
Explanation:
For computation of flexible budget variance for total costs first we need to find out the standard cost which is shown below:-
Standard cost = (Sold connectors × budgeted variable costs) + Fixed costs per month
= (77 × $150) + $5,500
= $11,550 + $5,500
= $17,050
Flexible budget variance for total costs = Actual cost - Standard cost
= $28,000 - $17,050
= $10,950 Unfavorable
Answer:
a. Issuance of note:
Date Account title Debit Credit
XX-XX Accounts Payable $84,000
Notes Payable $84,000
b. The payment of the note at maturity, including interest. Assume a 360-day year.
Interest payment = 84,000 * 5% * 120/360
= $1,400
Date Account title Debit Credit
XX-XX Note Payable $84,000
Interest payable $1,400
Cash $85,400
