Havensham corp produces ress shirts. the company uses a standard costing system and has set the following standards for direct materials an direct labor: fabric (1.5 yds@$2.80) $4.20 direct labor (1.1 hr @ $20) $22.00 total prime cost $26.20 during the year, haversham produced 9,800 shirts. the actual fabric purchased was 14,600 yards at $2.74 per yard. there were no beginning or ending inventories of fabric. actual direct labor was 10,900 hours at $19.60 per hour.

1. compute the costs of fabric and direct labor that should have been incurred for the production of 9,800 shirts.
2. compute the total budget variances for direct materials and direct labor.
3. break down the total budget variance for direct materials into a price variance and a usuage variance. prepare the journal entries associated with these variances.
4. break down the total budget variance for direct labor into a rate variance and an efficiency variance. prepare journal entries associated with these variances.

Will you use single-entry bookkeeping or double-entry bookkeeping? explain why.

Becky fenton has 40/80/40 automobile insurance coverage. if two other people are awarded $75,000 each for injuries in an auto accident in which becky was judged at fault, how much of this judgment would the insurance cover?

Arriving and delivering a load of company executives for a business meeting at a destination far from home base requiring an overnight stay, a company’s pilot requested approval from the company finance office to pay to either have the company’s jet brought into the fbo's hangar overnight to protect it from a forecast snowfall or to have it de-iced by the fbo the following morning well-before scheduled departure. the company was under considerable financial pressure at the time, and the pilot’s requests were denied because of the cost. so, early the following morning, the pilot was up on the wing of the jet sweeping off an accumulation of snow and ice with a borrowed push broom in preparation for the scheduled departure with the executives, but slipped and fell to the ground, suffering a broken neck. the business was organized as a limited partnership, owned by 3 limited partners and one general partner. as a cost-saving measure, the company had dropped its workers’ compensation insurance before the accident. analyze the potential liability for the pilot’s injuries of each of the following, showing your reasoning clearly: the company the general partner the limited partners analyze how the outcome would have been different, if the business had been organized as a corporation and observed all of the formalities to legitimize its corporate status. analyze how the outcome would have been different, if the pilot had been covered by workers’ compensation insurance.