6. Suraj was ordered to pay Sangita $15,000 from his RRSP as part of their divor

Question

6. Suraj was ordered to pay Sangita $15,000 from his RRSP as part of their divorce settlement. Sangita transferred the amount directly from his RRSP into her RRIF. Shortly after his divorce, Suraj married Yasmin, who received $10,000 as a refund of premiums from her late husband's unmatured RRSP. Yasmin received the $10,000 in cash on July 1st of her husband's death. She plans to deposit this amount into her own RRIF. Is this deposit amount taxable? If so, to who, and if not, why not? 7. When Simar transferred his investments from his RRSP to his non-qualifying RRIF, he elected to base the RRIF on the age of his wife, Priya. At the beginning of this year, the fair market value of the assets in his RRIF was $250,000. Also at the beginning of this year, Priya was 66. Simar was 74. He plans to withdraw the minimum required amount from his RRIF this year. Had Simar based his RRIF withdrawals on his age, his minimum withdrawal would be based on a percentage of 7.85%. By basing his minimum RRIF withdrawal on Priya's age, on what amount will he be able to continue to defer tax?

Explanation / Answer

a).

Material Price Variance :-

= Actual Quantity * (Standard Price - Actual Price)

= 12000 * (($42560/(1900*5.6)) - ($45600/12000))

= 12000 * ($4 - $3.8)

= 12000 * $0.2

= $2400 F

Material Quantity Variance :-

= Standard Price * (Standard Quantity - Actual Quantity)

= $4 * ((5.6*2000) - 12000)

= $4 * (11200 - 12000)

= $4 * 800

= $3200 U

b).

Labor Rate Variance = Actual Hours * (Standard Rate - Actual Rate)

= 2800 * (($17100/2850) - ($18200/2800))

= 2800 * ($6 - $6.5)

= 2800 * $0.5

= $1400 U

Labor Efficiency Variance :-

= Standard Rate * (Standard Hours - Actual Hours)

= $6 * ((1.5 * 2000) - 2800)....................................(2850/1900 = 1.50)

= $6 * (3000 - 2800)

= $6 * 200

= $1200 F

c).

Variable Overhead Rate Vaariance :-

= Actual Labor Hours * (Standard Rate - Actual Rate)

= 2800 * (($6840/2850) - ($7000/2800))

= 2800 * ($2.40 - $2.50)

= 2800 * (-$0.10)

= 280 U

Variable Overhead Efficiency Variance :-

= Standard Rate * (Standard Hours - Actual Hours)

= $2.40 * (3000 - 2800)

= $2.40 * 200

= $480 F

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