Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June $155,600 $192,800 $213,600 Manufacturing costs* Insurance expense** Depreciation expense Property tax expense*** 880 2,180 590 880 2,180 880 2,180 590 590 *Of the manufacturing costs, three-fourths is paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $880 a month; however, the insurance is paid four times yearly in the first month of the quarter (i.e., January, April, July, and October). ***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of May are O a. $183,500 O b. $144,600 O c. $38,900 O d. $222,400

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June $155,600 $192,800 $213,600 Manufacturing costs* Insurance expense Depreciation expense Property tax expense* 880 2,180 590 880 2,180 880 2,180 590 590 Of the manufacturing costs, three-fourths is paid for in the month they are incurred; one-fourth is paid in the following month. Insurance expense is $880 a month; however, the insurance is paid four times yearly in the first month of the quarter (i.e., January, April, July, and October). Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of May are O a. $183,500 O b. $144,600 O c. $38,900 O d. $222,400

Name: Finch Company began its operations on March 31 of the current year. F
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Description: Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:AprilMayJune$155,600 $192,800$213,600Manufacturing costs*Insurance expense**880Depreciation expense2,180Property tax expense***590*Of the man

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:
April
May
June
$155,600 $192,800
$213,600
Manufacturing costs*
Insurance expense**
880
Depreciation expense
2,180
Property tax expense***
590
*Of the manufacturing costs, three-fourths is paid for in the month they are incurred; one-fourth is paid in the following month.
**Insurance expense is $880 a month; however, the insurance is paid four times yearly in the first month of the quarter (i.e., January, April, July, and October).
***Property tax is paid once a year in November.
880
2,180
590
880
2,180
590
The cash payments expected for Finch Company in the month of May are
O a. $183,500
O b. $144,600
Oc. $38,900
O d. $222,400

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