Client story: in order to motivate our sales force to increase sales, we decided to increase our commissions and salaries and increase marketing. at the same time, our supplier increased its prices, and we felt we could pass that cost increase on to our customers in the form of price increase. however, with the additional pressure to make sales, coupled with the increased sales price, we had to loosen credit terms on sales. we also had to lease a little more distribution space and acquire another truck to handle the volume increase. our shipping expense relates to gasoline on deliveries. luckily, gas prices went down from what we originally expected this year. in the table below, classify each account on the budget according to whether the variances in the performance report are consistent or inconsistent with the client’s story, or unexplained by the client’s story. place an "x" in the appropriate column. if the revenue/spending variance and activity variance differ with respect to one account (i. e., one is consistent and one is inconsistent) then indicate which belongs in which column. revenuecost of goods soldcommissionshipping expensebad debt expensesalarieslease of distribution centerdepreciation of fleet and equipadvertisingoffice rent, phone, internet

The balance sheet contains the following major sections: current assets long-term investments property, plant, and equipment intangible assets other assets current liabilities long-term liabilities contributed capital retained earnings accumulated other comprehensive income required: the following is a list of accounts. using the letters a through j, indicate in which section of the balance sheet each of the accounts would be classified. if an account does not belong under one of the sections listed, select "not under any of the choices" from the classification drop down box. for all accounts, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet by selecting "yes" from the second drop down box, otherwise select "no". account classification contra or deducted (yes/no) 1. cash 2. bonds payable (due in 8 years) 3. machinery 4. deficit 5. unexpired insurance 6. franchise (net) 7. fund to retire preferred stock 8. current portion of mortgage payable 9. accumulated depreciation 10. copyrights 11. investment in held-to-maturity bonds 12. allowance for doubtful accounts 13. notes receivable (due in 3 years) 14. property taxes payable 15. deferred taxes payable 16. additional paid-in capital on preferred stock 17. premium on bonds payable (due in 8 years) 18. work in process 19. common stock, $1 par 20. land 21. treasury stock (at cost) 22. unrealized increase in value of available-for-sale securities

Torino company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10 par value common stock outstanding. the company paid total cash dividends of $3,500 in its first year of operation. the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:

Nichols inc. manufactures remote controls. currently the company uses a plantminuswide rate for allocating manufacturing overhead. the plant manager is considering switchingminusover to abc costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: activities cost driver allocation rate material handling number of parts $5 per part assembly labor hours $20 per hour inspection time at inspection station $10 per minute the current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $20 per labor hour. what are the indirect manufacturing costs per remote control assuming an method is used and a batch of 10 remote controls are produced? the batch requires 100 parts, 5 direct manufacturing labor hours, and 3 minutes of inspection time.