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1 y courses / MANAGERIAL ACCOUNTING-1194 - 1 / Topic 27 / Final Exam HALA Manufacturing Company prepares master budget for the next year
1
y courses / MANAGERIAL ACCOUNTING-1194 - 1 / Topic 27 / Final Exam HALA Manufacturing Company prepares master budget for the next year. The static budget variance is equal to the sum of and Select one: O a. fixed budget variance: variable overhead variance O b. flexible budget variance: sales volume variance O c. flexible budget variance: direct labor variance O d. direct materials price variance; sales volume variance Previous page Next page Jump to ASUS
2
Lawrence Company has a defined benefit pension plan. On December 31 of the current year (the end of the fiscal year), the actuary's report to the company contained the following information: Ending PBO, $115,000; benefits paid to retirees, $15,000; interest cost, $9,000. The discount rate applied to be the actuary was 9%.
What was the service cost for the year?
Expert Solution
1
a. Fixed budhget variance : Variable overhead variance.
A ststic budget variance is calculated by taking the differenence between Budget Figures and actual without considering the actual sales or production. It is fixed at a fixed level of activity.
2
Given,
Ending PBO:$115000
Benefits paid:$15000
Interest cost:$9000
Discount rate:9%
Calculation of the service cost for the year:
Formula:
Service cost for the year
=Benefits paid + Interest cost
=$15000 + $9000
=$24000
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