11. Determine and interpret the direct labor rate and time variances for the two departments. Negative amount should be indicated by the minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Do not round hours. Round your answers to two decimal places. Direct Labor Rate Variance Mixing Department Filling Department Actual rate Correct $18.20 $14.00 Standard rate Correct 18.00 14.40 Difference $0.20 -$0.40 Actual time Correct 488.0 140.0 Direct labor rate variance $97.60 U Correct -$56.00 F Correct Points: 12 / 15 Direct Labor Time Variance Mixing Department Filling Department Actual time Correct 488.0 140.0 Standard time Correct 500.0 150.0 Difference 12.0 10.0 Standard rate Correct $18.00 $14.40 Direct labor time variance -$216.00 F Correct -$144.00 F Incorrect Points: 8 / 15 The change in the standard labor time Incorrect caused the labor rate variances. This change could also Correct have been responsible for the direct labor time variance.

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.