The Carolina Products Company has completed the flexible budget analysis for the 2nd quarter, which is as given below. Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Units/Volume 12 comma 840 0 12 comma 840 840 F 12 comma 000 Sales Revenue $ 62 comma 800 $ 1 comma 230 U $ 64 comma 030 $ 4 comma 030 F $ 60 comma 000 Variable Expenses 27 comma 570 590 U 26 comma 980 $ 1 comma 700 U 25 comma 280 Contribution Margin $ 35 comma 230 $ 1 comma 820 U $ 37 comma 050 $ 2 comma 330 F $ 34 comma 720 Fixed Expenses 34 comma 230 180 U 34 comma 050 $ 0 34 comma 050 Operating Income/(loss) $ 1 comma 000 $ 2 comma 000 U $ 3 comma 000 $ 2 comma 330 F $ 670 Which of the following would be a correct interpretation of the sales volume variance for sales revenues?

A.

increase in fixed costs

B.

increase in sales volume

C.

increase in variable cost per unit

D.

increase in sales price per unit

Presented below is a list of possible transactions. analyze the effect of the 18 transactions on the financial statement categories indicated. transactions assets liabilities owners’ equity net income 1. purchased inventory for $80,000 on account (assume perpetual system is used). 2. issued an $80,000 note payable in payment on account (see item 1 above). 3. recorded accrued interest on the note from item 2 above. 4. borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. recognized 4 months’ interest expense on the note from item 4 above. 6. recorded cash sales of $75,260, which includes 6% sales tax. 7. recorded wage expense of $35,000. the cash paid was $25,000; the difference was due to various amounts withheld. 8. recorded employer’s payroll taxes. 9. accrued accumulated vacation pay. 10. recorded an asset retirement obligation. 11. recorded bonuses due to employees. 12. recorded a contingent loss on a lawsuit that the company will probably lose. 13. accrued warranty expense (assume expense warranty approach). 14. paid warranty costs that were accrued in item 13 above. 15. recorded sales of product and related service-type warranties. 16. paid warranty costs under contracts from item 15 above. 17. recognized warranty revenue (see item 15 above). 18. recorded estimated liability for premium claims outstanding.

Gwen, a manager at exude apparels inc., received a message from a customer requesting a replacement for a purchased pair of shoes. exude apparels has a clearly stated no-return policy. gwen responded to the customer denying the request in a tactful and clear manner. despite this, the customer submitted a second request. in this scenario, which of the following is an appropriate response to the second request?

Trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $4,538. the fica tax for social security is 6.2% of the first $118,500 earned each calendar year, and the fica tax rate for medicare is 1.45% of all earnings for both the employee and the employer. the amount of federal income tax withheld from his earnings was $680.70. his net pay for the month is .