Question

Question:- A firm follows machine hours to allocate machine related variable overhead. During the month, the firm reported adverse variable overhead spending variance and favorable variable overhead efficiency variance. It means:
(A). The firm took more hours than standard hours but controlled machine expenses
(B).The firm controlled machine hours but incurred more expense on operating the machine
(C).Firm failed on both controlling machine hours and cost but production volume increases
(D).Firms controlled machine hours, controlled expenses but production volume declined.

Please tell the correct option with explanation, and I will mark the correct answer brainliest.

Answer 1

Answer:

ulllOn 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Quick Buck Ltd issued 80,000 shares having a fair value of $2.40 per share in exchange for the net assets of Eldorado Ltd. The costs of issuing the shares by Quick Buck Ltd cost $1,600. At this date the statement of financial position of Eldorado Ltd was as follows: Carrying amount Fair value Machinery $40,000 $67,000 Fixtures & fittings 60,000 68,000 Vehicles 35,000 35,000 Current assets 10,000 12,000 Current liabilities (16,000) (18,000) Total net assets $129,000 Share capital(80,000 $80,000 shares at $1.00 per share) General reserve 20,000 Retained earnings 29,000 Total equity $129,000 Required: Prepare the journal entries in the records of Quick Buck Ltd at 1