Answer:
Option d is correct
Increase in income $40,000
Explanation:
$
Sales revenue from Order = (140× 1,000)= 140,000
Variable cost of order ( 100× 1,000) = (100,000)
Increase in income 40,000
Note that the fixed costs of $480,000 was not include in the analysis. This is is so because it would be still incurred whether the order is accepted or not. Hence, it is irrelevant for this decision.
Suppose that the total benefit to any one person (all people are identical) of a fireworks display is , where g is the dollar amount of fireworks(thus the marginal cost of $1 worth of fireworks is $1). Also suppose that each person in a town pays an equal share of the cost of the display. Does adding more people to the town make each person better off(in terms of net benefits derived from fireworks displays)? If so, by exactly how much?
Answer: The answer is provided below
Explanation:
As g is a constant, the addition of more people to the town will decrease per person cost of firework display. Therefore, adding more people to the town will make each person better off.
The net benefit is also equal to the total benefit each person gets (2√g) minus cost of per person of the firework display which is (g/h), where h is the number of people that are in the town.
Net benefits =2√g-(g/h)
Therefore, as h increases, "g/h" decreases and net benefits will increase.
If we then derivative net benefits with its respect to h ,we then get how much the net benefit will change.
∆net benefits/∆h=+g/h²
A German worker takes 400 hours to produce a car and 2 hours to produce a case of wine. A French worker takes 600 hours to produce a car and X hours to produce a case of wine. For what values of X will gains from trade be possible
Answer and Explanation:
Given that
Number of hours taken to produced a car by German worker is 400 hours
In case of wine he takes 2 hours
And, the Number of hours taken to produced a car by French worker is 600 hours
In case of wine he takes X hours
Based on the above information, the values of X gains from trade is based on the opportunity cost so in this there is a competitive advantage occurs so in this case the values should be other than 3 as 600 hours ÷ hours = 300 hours
Hence, the values should be other than 3
What is a summary jury trial?
A. An abbreviated trial that leads to a nonbinding jury verdict.
B. An unabbreviated trial that leads to a binding jury verdict.
C. An unabbreviated trial that leads to a nonbinding jury verdict.
D. An abbreviated trial in which only a few witnesses are called to the stand.
E. Both an abbreviated trial that leads to a nonbinding jury verdict and an abbreviated trial in which only a few witnesses are called to the stand.
Answer:i say E
Explanation:
Because no matter what you would still have to attend the jury trial
Suppose that on Valentine's Day, the demand for both roses and greeting cards increases by the same percentage amount. However, the price of roses increases by more than the price of greeting cards. Based on this information, you can conclude that the supply of Valentine's cards is sensitive to price than the supply of roses?
Answer:
Based on the information supply of cards is more elastic (price sensitive) than that of roses
Explanation:
Price elasticity of supply is defined as the sensitivity of quantity supplied to changes in price.
The formula is given below
Price elasticity of supply= Change in quantity supplied ÷ Change in price
In this scenario the demand for both roses and cards increases, however the price of roses increases more.
This implies that the denominator in the formula is higher in roses resulting in smaller price elasticity of supply.
The elasticity of supply for cards is higher than that of roses, so it is more sensitive to changes in price.
Cards can be stored from year to year so the labour for maintaining a stock of cards is low with resultant low price.
On the other hand roses require care to grow. It requires watering, application of chemicals to treat infestation and so on. So suppliers tend to push the extra cost of growing roses to the buyers
Answer:
Yes , Valentine cards are more price sensitive.
Explanation:
When Demand exceeds supply, prices rise. As a result of the increase in price, supply increases.
The increase in supply is in line with the law of supply which says, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
If there's an increase in the demand for roses and cards, it is expected that prices would rise. However, if supply for these items increases, prices would fall and if supply doesn't increase, price would not decrease.
So if the price of roses increases by more than the price of greeting cards it indicates that the supply of rose didn't increase as much as the increase in supply of cards.
This means that the supply of roses is less price sensitive when compared to greeting cards.
Symon's Suppers Co. has announced that it will pay a dividend of $4.39 per share one year from today. Additionally, the company expects to increase its dividend by 4.2 percent annually. The required return on the company's stock is 11.4 percent. What is the current share price?
Answer:
The current share price is $60.97
Explanation:
The values given are
Symon's super corporation is expected to pay a dividend of $4.39
The company expects to increase its dividend by 4.2percent every year
The required return on the company's stock is 11.4 percent
Therefore, the current share price is
= 4.39/( 11.4/100 + 4.2/100 )
= 4.39/( 0.114 - 0.042)
= 4.39/(0.072)
= 60.97
Thus, the current share price is $60.97
5-BB. A large lithium-ion phosphate battery pack for an industrial application is expected to save $20,000 in annual energy expenses over its six-year life. For a three-year simple payback period, the permissible capital investment is $60,000. What is the internal rate of return on this $60,000 battery pack if it has a residual value of $10,000 at the end of six years
Answer:
26.14%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated using a financial calculator
Cash flow in year 0 = $-60,000
Cash flow each year from year 1 to 5 = $20,000
Cash flow in year 6 = $20,000 + $10,000 = $30,000
IRR = 26.14%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Considerable research has documented that in many product categories, consumers are unable to distinguish among brands when given blind tests (i.e. taste or use of the products without labels). Such products include cigarettes, beer, liquors, and cosmetics. Nonetheless, even when prices are similar, consumers have strong preferences for specific brands of these products. This strong brand preference is characteristic of:
Answer:
brand loyalty
Explanation:
Brand loyalty: The term "brand loyalty" is determined as the propensity of specific consumers to "continuously purchase" a particular brand's products over some other brand's products. However, a specific consumer's behavioral patterns are responsible for demonstrating that he or she will continue to purchase products from the same company that has been fostered a "trusting relationship".
In the question above, the given statement represents brand loyalty.
Answer:
Probably brand loyalty
Explanation:
If an economy’s GDP falls, then it must be the case that the economy’s Group of answer choices income and saving fall. income and market value of all production both fall. income falls and market value of all production rises income rises and market value of all production falls.
Answer: Income and saving fall
Explanation:
A fall or contraction in the Gross Domestic Product (GDP) of a nation leads to business earnings decreasing and by extension the wages of people as businesses would have to cut back.
As people's income falls, they will have to consume more of their income in order to afford their needs and wants. This will leave less of their income remaining for Savings so these fall as well.
You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 60% and 40%, respectively. X has an expected rate of return of 14%, and Y has an expected rate of return of 10%. If you decide to hold 25% of your complete portfolio in the risky portfolio and 75% in the Treasury bills, then the dollar values of your positions in X and Y, respectively, would be __________ and _________.
Answer:
For X $150
For Y $100
Explanation:
The computation of optimal weight of X and Y in risky portfolio is shown below:-
Risk portfolio = Complete portfolio × Weight of risky portfolio
= $1,000 × 25%
= $250
So, Optimal weight of X and Y in risky portfolio will be
For X in dollars = Risk portfolio × Optimal weight percentage of X
= $250 × 60%
= $150
For Y in dollars = Risk portfolio × Optimal weight percentage of Y
= $250 × 40%
= $100
Therefore for computing the Optimal weight of X and Y in risky portfolio we simply multiply the risk portfolio with optimal percentage of X and in the similar way of Y.
Leichter Auto Parts, a family-owned auto parts store, began January with $ 10,500 cash. Management forecasts that collections from credit customers will be $ 11,000 in January and $ 15,200 in February. The store is scheduled to receive $ 8,500 cash on a business note receivable in January. Projected cash payments include inventory purchases ($ 15,600 in January and $ 14,800 in February) and selling and administrative expenses ($ 2,900 each month).).Leichter Auto Parts's bank requires a $10,000 minimum balance in the store's checking account. At the end of any month when the account balance falls below $10,000, the bank automatically extends credit to the store in multiples of$1,000. Leichter Auto Parts borrows as little as possible and pays back loans in quarterly installments of $2,500, plus 33% APR interest on the entire unpaid principal. The first payment occurs three months after the loanprepare Northeast AutoParts's cash budget for January and February.
Answer:
Northeast AutoParts's
Cash Budget
January February
Cash inflows:
Customers' credits $11,000 $15,200Business note $8,500Total cash inflows $19.500 $15,200
Cash outflows:
Inventory purchases ($15,600) ($14,800)selling and adm. expenses ($2,900) ($2,900)Total cash outflows ($18,500) ($17,700)
Monthly cash flow $1,000 ($2,500)
Initial cash balance $10,500 $11,500
Ending cash balance $11,500 $9,000
Required bank loan $0 $1,000
Total $11,500 $10,000
Explanation:
January 1, beginning cash $10,500
cash collections from customers' credits:
January $11,000February $15,200also a business note for $8,500 in Januaryestimated cash outflows:
January $15,600February $14,800S&A expenses $2,900 each monthBank's minimum balance $10,000
loans in multiples of $1,000
A business owner makes 1000 items a day. Each day she spends 8 hours producing those items. If hired, elsewhere she could have earned $250 an hour. The item sells for $15 each. Production occurs seven days a week. If the explicit costs total $150,000 per month, what is her economic profit
Answer:
Economic profit= $214,000
Explanation:
Giving the following information:
Business:
Units= 28,000 a month
Hours= 224 hours
Total cost= 150,000 a month
Selling price per unit= $15
Other work:
Income= $250 an hour
Economic profit includes the opportunity cost.
Economic profit= 28,000*15 - 150,000 - 250*224
Economic profit= $214,000
At December 31, 2021 and 2020, Sheridan Company had 171000 shares of common stock and 12000 shares of 7%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $442000. For 2021, earnings per common share amounted to (rounded to the nearest penny)
Answer:
The earnings per common share amounted to $2.53
Explanation:
Solution
Given that:
The Net Income for 2021= $442000
Thus,
The Dividend to be accrued on Preference shares for 2021 = 1200 *7% * 100
= $8400
The Earnings available to common share-holders for 2021 =$442000-$8400
= $433600
The number of common shares outstanding is = 171000 shares
So,
The Basic Earnings per share = 433600/171000
= $2.53
At the beginning of July, CD City has a balance in inventory of $3,400. The following transactions occur during the month of July.
July 3 Purchase CDs on account from Wholesale Music for $2,300, terms 1/10, n/30.
July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110.
July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200.
July 11 Pay Wholesale Music in full.
July 12 Sell CDs to customers on account, $5,800, that had a cost of $3,000.
July 15 Receive full payment from customers related to the sale on July 12.
July 18 Purchase CDs on account from Music Supply for $3,100, terms 1/10, n/30.
July 22 Sell CDs to customers for cash, $4,200, that had a cost of $2,500.
July 28 Return CDs to Music Supply and receive credit of $300.
July 30 Pay Music Supply in full.
Required:
1. Assuming that CD City uses a perpetual inventory system, record the transactions.2. Prepare the top section of the multiple-step income statement through gross profit for the month of July.
Answer:
Journal Entries
July 3
CDs Inventory $2,300 (debit)
Trade Payable - Wholesale Music $2,300 (credit)
July 4
Freight Charges $110 (debit)
Cash $110 (credit)
July 9
Trade Payable - Wholesale Music $200 (debit)
CDs Inventory $200 (credit)
July 11
J1
Trade Payable - Wholesale Music $2,079 (debit)
Cash $2,079 (credit)
J2
Trade Payable - Wholesale Music $21 (debit)
Discount Received $21 (credit)
July 12
J1
Trade Receivable $5,800 (debit)
Revenue $5,800 (credit)
J2
Cost of Goods Sold $3,000 (debit)
Inventory CDs $3,000 (credit)
July 15
Cash $5,800 (debit)
Trade Receivable $5,800 (credit)
July 18
Inventory CDs $3,100 (debit)
Trade Payable - Music Supply $3,100 (credit)
July 22
J1
Cash $4,200 (debit)
Revenue $4,200 (credit)
J2
Cost of Goods Sold $2,500 (debit)
Inventory CDs $2,500 (credit)
July 28
Trade Payable - Music Supply $300 (debit)
CDs Inventory $300 (credit)
July 30
J1
Trade Payable - Wholesale Music $2,772 (debit)
Cash $2,772 (credit)
J2
Trade Payable - Wholesale Music $28 (debit)
Discount Received $28 (credit)
multiple-step income statement
Revenue ($4,200+$5,800) $10,000
Less Cost of Goods Sold :
Opening Stock $3,400
Add Purchases ( $2,300 + $3,100) $5,400
Less Returns Outwards ( $200 + $300) ($500)
Add Freight Charges $110
$8,190
Less Closing Stock (Balancing figure) ($190)
Cost of Goods Sold ($3,000+ $2,500) $8,000
Gross Profit $2,000
Explanation:
The Income Statement is Prepared on Accrual Basis of Accounting meaning that Revenues and Expenses are recorded when they occur or incur not when cash is paid or received.
Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2017, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2017, 2018, and 2019, respectively. Parker sold the land purchased from Stark in 2017 for $92,000 in 2019. Both companies use the equity method of accounting. What is gain or loss to the consolidated entity in 2019
Answer:
Loss of $7,000
Explanation:
Computation of gain or loss to be reported in the consolidated net income during 2019
Total gain recognized by Intel- entity transactions. =>. $12,000
($92,000–$80,000)
Less; loss on transaction from Stark to Parker =>. $15,000
($85,000–&60,000)
Total gain to be reported in the consolidated net income during 2019 =>. $7,000
What is the correct way to dispose of used oil filter
Use the following information to prepare the September cash budget for PTO Co. The following information relates to expected cash receipts and cash payments for the month ended September 30.Beginning cash balance, September 1, $40,000.Budgeted cash receipts from sales in September, $255,000.Raw materials are purchased on account. Purchase amounts are August (actual), $80,000; and September (budgeted), $110,000. Payments for direct materials are made as follows: 65% in the month of purchase and 35% in the month following purchase.Budgeted cash payments for direct labor in September, $40,000.Budgeted depreciation expense for September, $4,000.Other cash expenses budgeted for September, $60,000.Accrued income taxes payable in September, $10,000.Bank loan interest payable in September, $1,000.
Answer and Explanation:
According to the scenario, the presentation of the September cash budget is presented below:
September Cash Budget for PTO Co.
Particulars Amount ($)
Opening cash balance 40,000
Add - Cash receipts 225,000
Total cash receipts 265,000
Less - Cash paid for raw material in august (80,000 × 35%) -28,000
Less - Cash paid for raw material in September (110,000 × 65%) -71,500
Less - Direct labor -40,000
Less - Cash expenses -60,000
Less - Income tax paid -10,000
Less- Bank interest -1,000
Ending cash balance 54,500
We simply added the cash receipts as it increased the cash balance and deduct all cash payments as it decreased the cash balance
Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 4% and IR 5%. A stock with a beta of 1 on IP and 0.6 on IR currently is expected to provide a rate of return of 16%. If industrial production actually grows by 5%, while the inflation rate turns out to be 6%, what is your best guess for the rate of return on the stock? (Round your answer to 1 decimal place.)
Answer:
17.6%
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the rate of return on the stock by using following formula:-
Expected Provide Rate of Return = Estimate Rate of Return on the Stock + (Expected IP × Stock with a Beta on IP) + (Expected IR × Stock with a Beta on IR)
Before estimate rate of return on the stock
= 16% = α + (4% × 1) + (5% × 0.6)
= 16% = α + (0.04 × 1) + (0.05 × 0.6)
= 0.16 = α + 0.04 + 0.03
= 0.16 - 0.04 - 0.03 = α
α = 0.09 =9%
Rate of return after the changes
= 9% + (5% × 1) + (6% × 0.6)
= 0.09 + 0.05 + 0.036
= 0.176
= 17.6%
According to the analysis, New rate of return on the stock is 17.6%
Assuming Net Income for the year is $250,000, what is the net operating cash flows given the following information:
Increase in Salaries Payable $19,500
Depreciation Expense $6,000
Increase in Prepaid Rent $29,000
Loss on sale of asset $1,350
Increase in Accounts Payable $29,000
Increase in Inventory $61,000
a) $338,650
b) $215,850
c) $244,850
d) $250,850
Answer:
Operating Cash Flows $215,850
Explanation:
Calaculation of Net operating Cash flow
Net Income$250,000
Adjustments for noncash effects:
Depreciation Expense 6,000
Loss on sale of asset 1,350
Changes in current assets and current liabilities:
Increase in Salaries Payable 19,500
Increase in Prepaid Rent(29,000)
Increase in Accounts Payable 29,000
Increase in Inventory(61,000)
Operating Cash Flows $215,850
Flow Company has provided the following information for the year ended December 31, 2014:Cash paid for interest $20,000Cash paid for dividends $6,000Cash dividends received $4,000Cash proceeds from bank loan $29,000Cash purchase of treasury stock $11,000Cash paid for equipment purchase $27,000Cash received from issuance of common stock $37,000Cash received from sale of land with a $32,000 book value $25,000Acquisition of land costing $51,000 in exchange for preferred stock issuance Payment of a $100,000 note payable by exchanging used machinery with a $77,000 book value and $100,000 fair value Required:How much was Flow's net cash flow from investing activities:_________a) A net outflow of $2,000.b) A net inflow of $2,000.c) A net outflow of $53,000.d) A net inflow of $49,000.
Answer:
The correct option is B,A net inflow of $2,000
Explanation:
The net cash flow from investing activities is the cash dividends received minus cash paid for equipment purchase plus cash received from sale of land
Cash dividends received is $4,000
cash paid for equipment purchase is $27,000
Cash received from the sale of land is $25,000
Net cash flow from investing activities=$4000-$27,000+$25,000=$2000
The correct option ,therefore, is B, a net cash inflow of $2000 from investing activities
Ben attended a workshop hosted by SCORE, a SBA organization that counsels small-business owners on developing a good vision statement. In that workshop the speakers discussed how an organization's vision needs to describe ________.
Answer:
what the company wants to become, and its long-term direction and strategic intent
Explanation:
Vision statement is a long term road map of the direction a business needs to take in order to achieve its set goals and objectives. It usually undergoes little revision.
However the short term operational processes are constantly reviewed to make the business better align with long term goals as stated in the vision statement.
In this scenario where the vision statement of small businesses are being formulated the speakers will discuss what the company wants to become, and its long-term direction and strategic intent
You are reviewing the accounting records of Cathy's Antiques, Inc. owned by Cathy Miller. You have uncovered the following situations. Compose a memo to Ms. Miller that cites the appropriate accounting principle and the suggested action for each separate situation.
1.In August, a check for $500 was written to Wee Day Care Center. This amount represents child care for her son Brandon.
2.Cathy plans a Going out of Business Sale for May, since she will be closing her business for a month-long vacation in June. She plans to reopen July 1 and will continue operating Cathy's Antiques indefinitely.
3.Cathy received a shipment of pine furniture from Quebec, Canada. The invoice was stated in Canadian dollars.
4. Joseph Clark paid $1,500 for a dining table. The amount was recorded as revenue. The table will be delivered to Mr. Clark in six weeks.
Answer and Explanation:
The accounting principles and the suggestions are shown below:
a. Business Entity Concept:
In this given situation, the amount of $500 should be refunded to the business or it can be recognized as the withdrawal amount by Cathy Miller. The suggestion is that She should use a personal check for paying daycare in the future for her son
b. Going Concern Concept:
Since the business is closed for month-long vacation in the month of June. As Cathy's Antiques is not closing the business for permanent. As she plans for reopening on July 1. The suggestion is that she should hold an inventory decline sale or for other relevant sales.
c. Monetary Unit Concept:
The invoice should be restated in the united states for the purpose of accounting
d. Revenue Recognition Concept:
The revenue should be recognized when it is realized or earned. As the table is not delivered so the revenue should not be recognized.
The amount of $1,500 should be recorded for an account like deposits received from the customers until the delivering of the table is not done
The two processes that must occur before moving forward to planning the project are:
a. Collect requirements and define scope
b. Train project manager and select project
c. Identify project deliverables and prepare scope statement
d. Identify stakeholders and develop project charter
Answer:
Two processes before moving forward to planning the project are:
d. Identify stakeholders and develop project charter.
a. Collect requirements and define scope
Explanation:
Project Planning is an important first step to executing a project to achieve desired objectives. But, before the proper project planning is started, there are processes that make planning projects easier and smoother. First, the stakeholders must be identified to enable the development of project charter. A project charter describes a project, identifies the objects, how the objectives and the project will be carried out, and the stakeholders. Second, project requirements must be collected. These help to define the scope of the project.
Gilberto Company currently manufactures 70,000 units per year of one of its crucial parts. Variable costs are $1.80 per unit, fixed costs related to making this part are $70,000 per year, and allocated fixed costs are $35,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $2.90 per unit guaranteed for a three-year period.
Calculate the total incremental cost of making 70,000 and buying 70,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?
Answer:
The company should continue making the unit. It is cheaper than buying by $7,000.
Explanation:
Giving the following information:
Variable costs are $1.80 per unit
fixed costs= $70,000 per year
Purchasing price per unit= $2.90
I will assume that the fixed costs (not allocated) are avoidable.
First, we need to calculate the total cost of making the unit:
Total cost= 70,000*1.8 + 70,000= $196,000
Buying:
Total cost= 70,000*2.9= $203,000
The company should continue making the unit. It is cheaper than buying by $7,000.
production generated the following activity in Chopper Chassis Company's Work-in-Process Inventory account: LOADING...(Click the icon to view the activity.) Additionally, Chopper has completed Jobs 142 and 143, with total costs of $ 46 comma 000 and $ 50 comma 000, respectively. Read the requirementsLOADING.... Requirement 1. Prepare the journal entry for production completed in June. (Prepare a single journal entry for this event. Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit June C
Answer:
Finished Goods : Job 142 $ 46,000 (debit)
Finished Goods : Job 143 $ 50,000 (debit)
Work In Process : Job 142 $ 46,000 (credit)
Work In Process : Job 143 $ 50,000 (credit)
Explanation:
During Production all Costs Incurred are accumulated in the Work In Process Account.
Once the Production is Complete and Jobs are Transferred to Finished Goods, the Costs in Work In Process Account is De-recognized. Consequently Costs are recognized in Finished Goods Inventory for Valuation purposes.
These cost would later form part of Cost of Sales when the Jobs are Finally Sold to the Customer.
1. A_ can be cut from chickens, pheasants, and ducks.
2. Chickens that are large, castrated males are called
3. Boning knives are ideal for cutting around the of poultry.
implies that the poultry has been allowed to go outside.
5. List three steps in trussing a bird.
Answer (1)
A poultry meat can be cut from chickens, pheasants and ducks.
Explanation:
Generally, bird meats are referred to as poultry meat
Answer (2)
Capon
Explanation:
Some male chicken are kept specially for mat production. These male chickens are usually neutered to encourage size increase
Answer(3)
Boning knives are used for cutting around the bones of poultry
Explanation:
Boning knives are used for cutting meat from bones in meats generally
Answer(4)
Free ranged poultry
Explanation:
Some chicken are raised in a free ranged method and allowed to roam outside.
Answer(5)
1. Loop around front and tie wings
2. Tie wings
3. Trim and finish.
Platt Company produces one product, a putter called PAR-putter. Platt uses a standard cost system and determines that it should take one hour of direct labor to produce one PAR-putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $500,000 comprised of $200,000 of variable costs and $300,000 of fixed costs. Platt applies overhead on the basis of direct labor hours. During the current year, Platt produced 85,000 putters, worked 89,000 direct labor hours, and incurred variable overhead costs of $160,000 and fixed overhead costs of $300,000.
1. Compute the pre-determined variable overhead rate and the pre-determined fixed overhead rate.
Variable Overhead Rate
Fixed Overhead Rate
2. Compute the applied overhead for Platt for the year.
Applied Overhead
3. Compute the total overhead variance
Total Overhead Variance
Answer:
Instructions are below.
Explanation:
Giving the following information:
The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $500,000 comprised of $200,000 of variable costs and $300,000 of fixed costs.
Platt produced 85,000 putters, worked 89,000 direct labor hours, and incurred variable overhead costs of $160,000 and fixed overhead costs of $300,000.
First, we need to calculate the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Variable= 200,000/100,000= $2 per direct labor hour
Fixed= 300,000/100,000= $3 per direct labor hour
Total= $5
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 89,000*5= $445,000
Finally, the total overhead variance:
TOTAL OVERHEAD VARIANCE = Actual Factory Overhead - Standard Factory Overhead
TOTAL OVERHEAD VARIANCE= 460,000 - 445,000
TOTAL OVERHEAD VARIANCE = $15,000 unfavorable
On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $100,000 face value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $30,192 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $52,000 cash per year.
Prepare an amortization schedule for the four-year period.
Answer: Please see below
Explanation: Amortization for the four year period is given as
FOR 2018
Principal Balance = $100,000
cash payment for dec 31st= #30,182
Applied to interest== 8% of 100000= 0.08 x100,000=8000
Applied to Principal = cash payment -interest= 30192-8000= $22, 192
Principal balance at end of period=Principal Balance--applied to Principal
= 100,000 - 22,192=$ 77, 808
FOR 2019
Principal Balance = $77,808
cash payment for dec 31st= $30,182
Applied to interest== 8% of 77,808= 0.08 x77,808 =$6225
Applied to Principal = cash payment -interest= 30192-6225= $23,967
Principal balance at end of period=Principal Balance--applied to Principal
= 77,808 - 23,967=$ 53,841
FOR 2020
Principal Balance = $53,841
cash payment for dec 31st= $30,182
Applied to interest== 8% of 53,841= 0.08 x53,841 =$4307
Applied to Principal = cash payment -inbterst= 30192-4307= $25,885
Principal balance at end of period=Principal Balance--applied to Principal
= 53,841- 25,885= $27,956
FOR 2021
Principal Balance = $27,956
cash payment for dec 31st= $30,182
Applied to interest== 8% of 27,956= 0.08 x27,956 =$2236
Applied to Principal = cash payment -interest= 30192-2236= $27,956
Principal balance at end of period=Principal Balance--applied to Principal= 27,956- 27,956=0
Anna is separated from her boyfriend, John, while she studies economics and he goes to art school. Even though she wants to call John, Anna is very rational. She realizes that the more she spends on her phone bill, the less money she has left to purchase other goods and services. Anna's demand schedule for phone call to John is given in the table below.
Price (per month) Quantity (Calls per month)
$18 20
14 24
10 28
6 32
2 36
Required:
Using the multipoint curve drawing tool, draw Anna's demand curve for phone calls given the demand schedule above. Properly label your curve.
Answer:
Kindly check attached picture for drawing of Anna demand curve
Seymour Clothing Co. manufactures a variety of clothing types for distribution to several major retail chains. The following costs are incurred in the production and sale of blue jeans:Required:Identify each cost listed below as variable costs, fixed costs, or mixed cost.a. Shipping boxes used to ship orders b. Consulting fee of $200,000 paid to industry specialist for marketing advice c. Straight-line depreciation on sewing machines d. Salesperson's salary, $10,000 plus 2% of the total sales e. Fabric f. Dye g. Thread h. Salary of designers i. Brass buttons j. Legal fees paid to attorneys in defense of the company in a patent infringement suit, $50,000 plus $87 per hour k. Insurance premiums on property, plant, and equipment, $70,000 per year plus $5 per $30,000 of insured value over $8,000,000 l. Rental costs of warehouse, $5,000 per month plus $4 per square foot of storage used m. Supplies n. Leather for patches identifying the brand on individual pieces of apparel o. Rent on plant equipment, $50,000 per year p. Salary of production vice president q. Janitorial services, $2,200 per month r. Wages of machine operators s. Electricity costs of $0.10 per kilowatt-hour t. Property taxes on property, plant, and equipment
Answer:
a. Variable cost
b. Fixed cost
c. Fixed cost
d. Mixed cost
e. Variable cost
f. Variable cost
g. Variable cost
h. Fixed cost
i. Variable cost
j. Mixed cost
k. Mixed cost
l. Mixed cost
m. Variable cost
n. Variable
o. Fixed cost
p. Fixed cost
q. Fixed cost
r. Variable cost
s. Variable cost
t. Fixed cost
Explanation:
Note the following categories of costs:
Variable cost: This are cost that are subject to change such cost includes purchase cost of supplies, bills based on usage, hourly wages expenses.
Fixed cost: are generally recognisable cost that are stable over time, such as rent, salary, specific expense that have a fixed price etc.
From the overall analysis of the cost of Seymour Clothing Co. it is noticed that most of their expenses are variable in nature with less of mixed and fixed expenses (cost).
Good strategy combined with good strategy execution: Select one: a. Offers a guarantee for avoiding periods of weak financial performance b. Are the two best signs that a company is a true industry leader c. Signal that a company has a superior business model d. Are the most trustworthy signs of good management
Answer:
d. Are the most trustworthy signs of good management
Explanation:
The strategy refers to the planning through which the company could able to accomplish its goals and objectives within the prescribed time set by the company
The goods strategy mostly achieved the company targets within the standard time set by the company. And if the combination of both the good strategy and execution of the good strategy leads to the sign of good management i.e become trustworthy.
hence, the last option is correct
