A company makes a product using two materials, one of which is interchangeable with a third material. The standards for producing one 200-pound batch are presented below. The last 200-pound batch was produced using 140 pounds of M and 120 pounds of O. The price of M was $0.33 per pound and the actual price of O was $0.40. The price of M was $0.03 per pound and the actual price of O was $0.10. Material Standard Quantity (lbs) LBS StandardCost/lb. Total Cost
O 0   $0.40   $0.00  
H 110   0.38   41.80  
M 150   0.32   48.00  
260   89.8

Is the material yield variance favorable or unfavorable? A) Favorable. B) Unfavorable.

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Required prepare the necessary adjusting entries in the general journal as of december 31, assuming the following: on september 1, the company entered into a prepaid equipment maintenance contract. birch company paid $3,400 to cover maintenance service for six months, beginning september 1. the payment was debited to prepaid maintenance. supplies on hand at december 31 are $3,900. unearned commission fees at december 31 are $7,000. commission fees earned but not yet billed at december 31 are $3,500. (note: debit fees receivable.) birch company's lease calls for rent of $1,600 per month payable on the first of each month, plus an annual amount equal to 1% of annual commissions earned. this additional rent is payable on january 10 of the following year. (note: be sure to use the adjusted amount of commissions earned in computing the additional rent.)