Reference no: EM132270573
Questions -
Q1. Selected financial information for the Adelphi Company for the fiscal years ended December 31, 2018 and 2017 follows. Provide a cash flow statement using the indirect method. Properly title the statement.
2018 2017
Net income $142,500 $162,000
Depreciation Expense 42,000 35,000
Purchase of Plant Assets 135,000 125,000
Disposal of Plant Assets 40,000 50,000
Gain (Loss) on Disposal of Plant Assets (10,000) 5,000
Accounts Receivable Balance 64,500 58,000
Accounts Payable Balance 42,000 39,000
Interest Expense 8,000 6,000
Income Taxes Paid 35,000 28,000
Dividends Paid 30,000 25,000
Common Stock Issued for Cash 20,000 0
Q2. Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:
Direct material of 4.00 yards at $5.75 per yard
Direct labor of 3.00 hours at $18.00 per hour
Overhead applied per sleeping bag at $18
In the month of April, the company actually produced 5,100 sleeping bags using 26,800 yards of material at a cost of $6.10 per yard. The labor used was 12,000 hours at an average rate of $20.50 per hour. The actual overhead spending was $96,200.
Determine the labor quantity variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number.