Answer:
D Corporation
The Cost of Goods Manufactured for May was:____.
a. $84,500.
Explanation:
a) Data and Calculations:
Predetermined overhead rate = 75% of direct labor cost
Raw materials (all direct materials):
Purchased during the month $38,000
Used in production $35,000
Labor:
Direct labor-hours worked during the month 3,150
Direct labor cost incurred $30,000
Manufacturing overhead cost Incurred (total) $24,500
Inventories:
Raw materials (all direct), May 31 $8,000
Work in process, May 1 $9,000
Work in process, May 31 $12,000
Contains $4,400 in direct labor cost.
Cost of Goods Manufactured:
Work in process
Beginning balance May 1 $9,000
Raw materials used $35,000
Direct labor cost incurred $30,000
Overhead applied 22,500
Cost of goods manufactured $84,500
Work in process, May 31 $12,000
Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best." Which item would most likely not fit in the "best" stereotype scheme?
Answer:
American chocolate
Explanation:
In the field of psychology, a 'stereotype' is defined as a general belief about a certain type or category of people.
The consumers around the world have some different stereotypes about some specific countries and some specific products that they judged to be the 'best'. Such an item which does not fit best in the stereotype scheme is 'American chocolate.'
The American chocolate have a different taste than others. It is tangy and is slightly sour. It is lighter. So some people have a different perception or stereotype for this item.
Thus the answer is 'American chocolate.'
Efficiency in a market is achieved when:_______.
a. a social planner intervenes and sets the quantity of output after evaluating buyers' willingness to pay and sellers' costs.
b. the sum of producer surplus and consumer surplus is maximized.
c. all firms are producing the good at the same low cost per unit.
d. no buyer is willing to pay more than the equilibrium price for any unit of the good.
Answer:
B. The sum of producer surplus and consumer surplus is maximized.
Susans Consulting Company (SCC) has been in business for ten years and has experienced a significant turnover in the project management group, which has prompted senior leadership to investigate.
A preliminary review by senior leadership has determined that Project Managers are frustrated with the amount of required project management documentation, which has impacted their ability to manage projects successfully.
A recent review of the project management process has determined that SCC has spent between 30-40% of its total project budget on projects' overhead costs to include project management costs. A review of industry standards is between 5-15% higher than most companies. In addition, senior leaders found that projects are being delivered between 25% and 50% over budget and late 95% of the time.
Note: Project Management overhead includes the PM's time managing the project, attending meetings, and developing the required documentation.
SCC Request: SCC has reached out to your team because you are experts in defining project management processes and delivering projects on time. The SCC request includes the following:
. The development of a new project management process which at a minimum should include the following:
· The ability to track issues, risks, changes
· The ability to view project activities consists of a view of what has been completed and what activities the team is working on over the next reporting period
· The company must have a view into total life cycle project costs to include what has been spent to date, baseline budget, any changes to the budget, remaining budget, and cost of the project at completion
· In addition, to the new process request, SCC has a new project they need to complete by the end of the year with a limited budget and no project management staff.
1. Using your defined project management process outlined above, describe the life cycle model for this project
2. Create a WBS for the project. Remember your WBS is a deliverable base, so there should be a section of your WBS which outlines our project management deliverables
3. Using your defined prioritization process, prioritize each application.
4. Using the defined organizational structure, create a pictorial and narrative description of the organizational structure for the project.
Answer:
was assigned with this problem (the reference text is attached):
Which of the following, if included in a student's paper, would NOT be an example of plagiarism?
1. In the game of baseball, which is rather boring, the batter stands on home base (Hughes 1).
2. Baseball is rather surprisingly known as "America's Favorite Pastime."
3. Baseball is "a rather boring sport played between two teams of nine players" (Hughes 1).
4. All of these are plagiarism.
The answer tells that only the third choice is NOT a plagiarism. My question is, why is the first choice a plagiarismwas assigned with this problem (the reference text is attached):
Which of the following, if included in a student's paper, would NOT be an example of plagiarism?
1. In the game of baseball, which is rather boring, the batter stands on home base (Hughes 1).
2. Baseball is rather surprisingly known as "America's Favorite Pastime."
3. Baseball is "a rather boring sport played between two teams of nine players" (Hughes 1).
4. All of these are plagiarism.
The answer tells that only the third choice is NOT a plagiarism. My question is, why is the first choice a plagiarismwas assigned with this problem (the reference text is attached):
Which of the following, if included in a student's paper, would NOT be an example of plagiarism?
1. In the game of baseball, which is rather boring, the batter stands on home base (Hughes 1).
2. Baseball is rather surprisingly known as "America's Favorite Pastime."
3. Baseball is "a rather boring sport played between two teams of nine players" (Hughes 1).
4. All of these are plagiarism.
The answer tells that only the third choice is NOT a plagiarism. My question is, why is the first choice a plagiarism
1.sing your defined project management process outlined above, describe the life cycle model for this project.
What is (SCC) ?
Susans Consulting Company (SCC) has been in business for ten years and has experienced a significant turnover in the project management group, which has prompted senior leadership to investigate.
A preliminary review by senior leadership has determined that Project Managers are frustrated with the amount of required project management documentation, which has impacted their ability to manage projects successfully.
A recent review of the project management process has determined that SCC has spent between 30-40% of its total project budget on projects' overhead costs to include project management costs. A review of industry standards is between 5-15% higher than most companies. In addition, senior leaders found that projects are being delivered between 25% and 50% over budget and late 95% of the time.
Note: Project Management overhead includes the PM's time managing the project, attending meetings, and developing the required documentation.
SCC Request: SCC has reached out to your team because you are experts in defining project management processes and delivering projects on time. The SCC request includes the following:
.The development of a new project management process which at a minimum should include the following:
The ability to track issues, risks, changes
The ability to view project activities consists of a view of what has been completed and what activities the team is working on over the next reporting period
The company must have a view into total life cycle project costs to include what has been spent to date, baseline budget, any changes to the budget, remaining budget, and cost of the project at completion.
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If a consumer is always indifferent between an additional one grapefruit or an additional two oranges, then when oranges are on the horizontal axis the indifference curves: Group of answer choices will be straight lines with a slope of 1/2. will be straight lines with a slope of -1. will be right angles whose corners occur on a ray from the origin with a slope of 2. none of these options is correct. will be straight lines with a slope of -1/2.
Answer: will be straight lines with a slope of -1/2.
Explanation:
An indifference curve simply means the combination of two goods that can give a consumer equal satisfaction, and this makes the consumer indifferent.
It should be noted that along the curve, the consumer will have an equal preference which is for the combinations of the goods that are shown.
If a consumer is always indifferent between an additional one grapefruit or an additional two oranges, then when oranges are on the horizontal axis, then the indifference curves will be straight lines with a slope of -1/2. Here, the fact that the slope is negative
is due to the fact that the curve is downward sloping.
Mahogany Inc. has an unfavorable total labor variance of $770 for the month of September. It had a favorable labor rate variance of $205. Determine the labor efficiency variance of Mahogany for the month of September. g
Answer:
$975 Unfavorable
Explanation:
Calculation to Determine the labor efficiency variance of Mahogany for the month of September
Using this formula
Labor efficiency variance=Unfavorable total labor variance + Favorable labour rate variance
Let plug in the formula
Labor efficiency variance=$770+$205
Labor efficiency variance=$975 Unfavorable
Therefore the labor efficiency variance of Mahogany for the month of September is $975 Unfavorable
which of the following attributes is not necessary for the information to qualify as a trade secret?
Answer:
short and long to type
Explanation:
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According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes.a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
Answer: $9,800
Explanation:
Payroll taxes = Social security + Medicare +State unemployment + Federal unemployment
= (110,000 * 6%) + (110,000 * 1.5%) + (25,000 * 5.4%) + (25,000 * 0.8%)
= 6,600 + 1,650 + 1,350 + 200
= $9,800
Smith Construction,Inc.just paid a $2.78 dividend.The dividend is expected to grow by 4% each year for the next three years.After that the company will never pay another dividend ever again.If your required return on the stock investment is 10%,what should the stock sell for today?
A) $7.46
B) $28.91
C) $46.33
D) $15.63
Answer:
A) $7.46
Explanation:
The computation of the stock sell for today is given below:
D1 = 2.78 × (1.04)
= 2.89
D2 = 2.89 × (1.04)
= 3.01
D3 = 3.01 × (1.04) = 3.13
Now the price of the stock is
= 2.89 ÷ (1.1) + 3.01 ÷ (1.1)^2 + 3.13 ÷ (1.1)^3
= $7.46
hence, the correct option is a.
The same should be considered and relevant
A large company has an inspection system for the batches of small compressors purchased from vendors. A batch typically contains 15 compressors. In the
inspection system, a random sample of 5 is selected and all are tested. Suppose there are 2 faulty compressors in the batch of 15.
(a) What is the probability that for a given sample there will be 1 faulty compressor?
(b) What is the probability that inspection will discover both faulty compressors?
Solution :
Given data :
Total number compressors in a batch = 15 compressors
Number of samples to be tested = 5
Let the number of faulty compressors out of 15 compressors = 2
a) Therefore, the ways of selecting [tex]1[/tex] faulty and [tex]4[/tex] good compressor is
[tex]$=^2C_1 \times ^{13} C_4$[/tex]
The total number of ways = [tex]$^{15}C_5$[/tex]
Therefore, the probability is
[tex]$=^2C_1 \times ^{13}C_4 \times ^{15} C_5$[/tex]
[tex]=0.4761[/tex]
b). Number of ways for selecting [tex]2[/tex] faulty and [tex]3[/tex] good compressor is
[tex]$^{13}C_3[/tex]
Thus the probability
[tex]$=\frac{^{13}C_3}{^{15}C_5}$[/tex]
[tex]$=0.0952$[/tex]
Coronado, Inc. reported net income of $2.95 million in 2022. Depreciation for the year was $188,800, accounts receivable decreased $413,000, and accounts payable decreased $330,400. Compute net cash provided by operating activities using the indirect method
Answer:
Net cash provided by operating activities $3,221,400
Explanation:
The computation of the net cash provided by operating activities using the indirect method is given below
cash provided by operating activities
Net income $2,950,000
Add: depreciation $188,800
Add: decrease in account receivable $413,000
Less: decrease in account payable -$330,400
Net cash provided by operating activities $3,221,400
Genius Professor Mullen Co. is using the Target Cost approach on a new product. Information gathered so far reveals: Expected annual sales (Market Sales) 400,000 units Desired profit per unit (DP) $0.25 Target cost (TC) $168,000 What is the Market Price (MP) per unit
Answer: $0.67 per unit
Explanation:
Find the target cost per unit:
= 168,000 / 400,000
= $0.42 per unit
If the desired profit is $0.25 and the target cost is $0.42, the market price per unit is:
= Desired profit + Target cost
= 0.25 + 0.42
= $0.67 per unit
Cosmo Company reported credit sales of $345,000 for the calendar year in its first year of operations. At December 31, customers buying on credit owed $35,000 to the company. Based on the experience of similar businesses, management estimates that $3,500 of its accounts receivable will be uncollectible.
Required:
Prepare the necessary December 31 adjusting entry by selecting the correct account names and dollar amounts
Answer and Explanation:
The journal entry is given below:
Bad debt expense $3,500
To Allowance for doubtful debts $3,500
(Being bad debt expense is recorded)
Here bad debt expense is debited as it increased the expense and credited the allowance as it decreased the assets
An important sustainability issue that has received much more scrutiny in recent years is the: focus on adequate inventory levels. reduction in packaging waste by using alternate materials. effort to move warehouse storage closer to consumers. emphasis on materials handling and warehouse design. none of the above
Answer:
reduction in packaging waste by using alternate materials.
Explanation:
An important sustainability issue that has received much more scrutiny in recent years is the reduction in packaging waste through the use of alternative materials. You can see this happening through new laws that prohibit the use of plastic bags in supermarkets and plastic drinking straws, for example.
There are several companies that seek the use of biodegradable packaging, even if these are not provided for by law. Companies seek to adopt sustainable actions in their processes to demonstrate to their stakeholders that they follow ideal standards of environmental preservation and social awareness. This is a positive type of marketing for companies, as the population is more aware and wants to consume more from environmentally responsible companies.These companies then become more valued by their consumers and consequently more competitive and well positioned in the market
MC Qu. 54 Maxim manufactures a hamster food product... Maxim manufactures a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $3.60 and total fixed costs are $10,000. The hamster food can be sold as it is for $8.95 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,200 cost. The additional processing will yield 10,000 bags of Premium Green and 3,200 bags of Green Deluxe, which can be sold for $7.95 and $5.95 per bag, respectively. The net advantage (incremental income) of processing Green Health further into Premium Green and Green Deluxe would be:
Answer:
Maxim
The net advantage (incremental income) of processing Green Health further into Premium Green and Green Deluxe would be:
= $6,840.
Explanation:
a) Data and Calculations:
Inventory of Green Health = 10,000 bags
Production costs per bag = $3.60
Total variable costs = $36,000 (10,000 * $3.60)
Total fixed costs = $10,000
Total production costs = $46,000 ($36,000 + $10,000)
Selling price before further processing = $8.95 per bag
Total revenue from selling 10,000 bags = $89,500 (10,000 * $8.95)
Additional processing cost = $2,200
Total revenue from selling 10,000 bags of Premium Green and 3,200 bags of Green Deluxe:
Premium Green (10,000 * $7.95) = $79,500
Green Deluxe (3,200 * $5,95) = 19,040
Total revenue = $98,540
Less additional processing costs (2,200)
Net revenue from further processing $96,340
Net advantage of further processing = $6,840 ($96,340 - $89,500)
Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr. 1 Beginning inventory 510 $ 2.44 Apr. 20 Purchase 380 2.72 Dunbar sold 590 units of inventory during the month. Ending inventory assuming weighted-average cost would be: (Round weighted-average unit cost to 4 decimal places and final answer to the nearest dollar amount.) Multiple Choice $747. $768. $838. $774.
Answer:
$768
Explanation:
The computation of the ending inventory using weighted average cost is shown below:
But before that average cost per unit is
= (510 × $2.44 + 380 × $2.72) ÷ ($510 + $380)
= ($1,244.40 + $1,033.60) ÷ (890)
= $2.56
Now the ending inventory is
= (890 - 590) × $2.56
= $768
The ending inventory using weighted average cost is $768. option (b) is correct.
The weighted average cost of capital (WACC), which includes common stock, preferred stock, bonds, and other types of debt, is the average after-tax cost of capital for a company. The WACC is the typical interest rate that a business anticipates paying to finance its assets.
The computation of the ending inventory using weighted average cost is:
But before that average cost per unit is
= (510 × $2.44 + 380 × $2.72) ÷ ($510 + $380)
= ($1,244.40 + $1,033.60) ÷ (890)
= $2.56
Now the ending inventory is
= (890 - 590) × $2.56
= $768
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Garden Variety Flower Shop uses 500 clay pots a month. The pots are purchased at $3 each. Annual holding costs per pot are estimated to be 25 percent of a pot's purchase price, and ordering costs are $25 per order. The manager has been using an order size of 1,500 flower pots.
a. What additional annual cost is the shop incurring by staying with this order size?
b. Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 1,500)?
Solution :
The data for the Garden Variety Flower shop is :
Monthly demand, d = 500 clay pots
Annual demand, D = 500 x 12
= 6000 clays
Price, p = $ 3.00 each
Annual carrying cost, h = 25% of price
[tex]$=\frac{25}{100} \times 3$[/tex]
= $0.75
Ordering cost, S = $ 25 per order
a). The optimal order quantity, EOQ
[tex]$EOQ=\sqrt{\frac{2DS}{h}}$[/tex]
[tex]$=\sqrt{\frac{2\times 6000 \times 25}{0.75}}$[/tex]
[tex]$=\sqrt{\frac{300000}{0.75}}$[/tex]
= 632.45
≈ 633
So, the optimal order quantity is 633 clay pots.
Therefore, the annual cost for optimal order quantity 633 clay pots,
[tex]$\text{Total annual cost}_1=\left(\frac{D}{Q} \times S \right) + \left(\frac{D}{2} \times h \right)$[/tex] [tex]$\text{Total annual cost}_1=\left(\frac{6000}{633} \times 25 \right) + \left(\frac{633}{2} \times 0.75 \right)$[/tex]
= 236.96 + 237.37
= 474.33
Now calculating the total annual cost for the optimal order quantity 1500 flower pots, as shown below:
[tex]$\text{Total annual cost}_2=\left(\frac{D}{Q} \times S \right) + \left(\frac{D}{2} \times h \right)$[/tex]
[tex]$\text{Total annual cost}_2=\left(\frac{6000}{1500} \times 25 \right) + \left(\frac{1500}{2} \times 0.75 \right)$[/tex]
= 100 + 562.5
= 662.5
Calculating the additional annual cost of the shipping is incurring by staying with the order size, i.e. 1500 flower pots as given below:
Extra cost = [tex]$\text{total annual cost}_2 - \text{total annual cost}_1 $[/tex]
= 662.5 - 474.3
= 188.2
So, the [tex]\text{additional annual cost}[/tex] is the shop [tex]\text{incurring}[/tex] by staying with this order size is 188.2
b). Calculating the average inventory level of the [tex]\text{optimal order quantity}[/tex] 1500 flowers plots :
Average inventory = Q/2
[tex]$=\frac{1500}{2}$[/tex]
= 750
Calculating the average percentage of the storage space :
[tex]$\text{Percentage of storage space} = \frac{\text{Extra cost}}{\text{average inventory}}\times 100$[/tex]
[tex]$=\frac{188.2}{750} \times 100$[/tex]
= 0.250 x 100
= 25 %
So, the benefit would be using the [tex]\text{optimal order quantity}[/tex] yield, i.e. 1500 flower plots is 25%.
Suppose that the equilibrium price and quantity for 1 bedroom apartments in Orange County is $2,000 and 250,000 respectively. What is the most likely outcome from the Orange County Board of Supervisors' implementation of a price ceiling at $2,500 for a 1 bedroom apartment
Answer: c. No effect
Explanation:
This is a non-binding price ceiling. A none-binding price ceiling is a price ceiling that is higher than the equilibrium price for a commodity in the market. As a result, there will be no effect on the market.
The reason being that a price ceiling is a price that companies and people are not meant to exceed. If this price is already higher than the equilibrium price, there would be no need to exceed or go below it it so there would be no effect.
Suppose operation X feeds directly into operation Y. All of X's output goes to Y, and Y has no other operations feeding into it. X has a design capacity of 80 units per hour and an effective capacity of 72 units per hour. Y has a design capacity of 100 units per hour. What is Y's maximum possible utilization
Answer:
72 percent
Explanation:
The computation of the Y's maximum possible utilization is given below:
In the case when the maximum output received from C is 72 units per hour so the maximum input rate to Y should also be 72 units per hour as X and Y are linked in series
So as per the given situation, Y's maximum possible utilization is 72 percent
The same should be considered and relevant
A trust has been established to fund scholarships in perpetuity. The next annual distribution will be $1,200, and future payments will increase by 3 percent per year. What is the value of this trust at a discount rate of 7.4 percent
Answer:
PV= $27,272.73
Explanation:
Giving the following information:
Annual distribution (Cf)= $1,200
Interest rate (i)= 7.4% = 0.074
Growth rate (g)= 3% = 0.03
To calculate the present value (PV) of the fund, we need to use the following formula:
PV= Cf / (i - g)
PV= 1,200 / (0.074 - 0.03)
PV= $27,272.73
Midsouth Stitchery wants to improve their productivity. Their process yield is currently 91.56% based on 9816 yards of material. If they are going to improve their productivity to 92.10, how many yards of finished material will they have to produce from the same amount of material input
Answer:
9,040.54 yards
Explanation:
Input material amount I = 9,816 yards
Productivity P = 92.10%
Let Output Material amount be O
O = I * P
O = 9,816 yards * 0.9210
O = 9040.536
O = 9040.54 yards
So, the unit of yards they will have to produce from the same amount of material input is 9,040.54 yards
Retained earnings, December 31, 2013 $342,700
Cost of buildings purchased during 2014 44,100
Net income for the year ended December 31, 2014 56,200
Dividends declared and paid in 2014 32,800
Increase in cash balance from January 1, 2014, to December 31, 2014 22,700
Increase in long-term debt in 2014 45,300
Required:
Calculate the Retained Earnings balance as of December 31, 2014.
Answer:
the ending retained earning balance is $366,100
Explanation:
The computation of the ending retained earning balance is given below:
= Opening balance of retained earnings + net income - dividend paid
= $342,700 + $56,200 - $32,800
= $366,100
Hence, the ending retained earning balance is $366,100
The same should be considered and relevant
On December 31, 2020, the Bennett Company had 110,000 shares of common stock issued and outstanding. On July 1, 2021, the company sold 22,000 additional shares for cash. Bennett's net income for the year ended December 31, 2021, was $630,000. During 2021, Bennett declared and paid $72,000 in cash dividends on its nonconvertible preferred stock. What is the 2021 basic earnings per share
Answer:
$4.61
Explanation:
Calculation to determine the 2021 basic earnings per share
Using this formula
2021 basic earnings per share=Net income-Cash Dividend/shares of common stock issued+(additional shares for cash*6/12)
Let plug in the formula
2021 basic earnings per share=$630,000-$72,000/110,000+(22,000*6/12)
2021 basic earnings per share=$558,000/110,000+11,000
2021 basic earnings per share=$558,000/121,000
2021 basic earnings per share=$4.61
Therefore the 2021 basic earnings per share is $4.61
The 2021 basic earnings per share is $4.61
Earnings per share = (Net Income - Preferred Dividends) / WACSO
EPS = (630,000 - 72,000) / 121,000
EPS = 558,000 / 121,000
EPS = 4.61
To compute for Weighted average common stock outstanding.
January 1, 2021 110,000 * 12/12 110,000
July 1, 2021 22,000 * 6/12 11,000
Weighted Average Common Stock outstanding 121,000
Therefore, the 2021 basic earnings per share is $4.61
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Please calculate GDP using the following information: Government purchases - $200 billion Depreciation - $60 billion Investment - $80 billion Consumption - $600 billion Exports - $100 billion Imports - $120 billion Income receipts from the rest of the world - $10 billion Income payments to the rest of the world - $8 billion
Answer:
The GDP is $860 billion.
Explanation:
The gross domestic product (GDP) can be calculated using the expenditure approach formula as follows:
Y = C + I + G + (X - M) ....................................... (1)
Where:
Y = GDP = ?
C = Consumption = $600 billion
I = Investment - $80 billion
G = Government purchases = $200 billion
X = Exports = $100 billion
M = Imports = $120 billion
Substituting the values into equation (1), we have:
Y = $600 + $80 + $200 + ($100 - $120) = $860 billion
Therefore, the GDP is $860 billion.
Hobson Company bought the securities listed below during 2020. These securities were classified as trading securities. In its December 31, 2020, income statement Hobson reported a net unrealized holding loss of $10,000 on these securities. Pertinent data at the end of June 2021 is as follows: SecurityCostFair Value X$360,000 $340,000 Y 190,000 160,300 Z 420,000 405,000 What amount of unrealized holding loss on these securities should Hobson include in its income statement for the six months ended June 30, 2021
Answer:
$54,700
Explanation:
Calculation to determine What amount of unrealized holding loss on these securities should Hobson include in its income statement for the six months ended June 30, 2021
Security Cost Fair value Gain(loss)
X $360,000 $340,000 -$20,000
Y $190,000 $160,300 -$29,700
Z $420,000 $405,000 -$15,000
Total $970,000 $905,300 -$64,700
Unrealized holding loss on Income statement ended June 30,2021 = $64,700 - $10,000
Unrealized holding loss on Income statement ended June 30,2021 = $54,700
Therefore the amount of unrealized holding loss on these securities should Hobson include in its income statement for the six months ended June 30, 2021 is $54,700
Thomlin Company forecasts that total overhead for the current year will be $12,300,000 with 150,000 total machine hours. Year to date, the actual overhead is $8,270,500, and the actual machine hours are 97,300 hours. If Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is a.$291,900 overapplied b.$291,900 underapplied c.$158,100 overapplied d.$158,100 underapplied
Answer:
b. $291,900 underapplied
Explanation:
With regards to the above information, we will calculate the predetermined overhead rate first.
Predetermined overhead rate = Estimated total overhead / Total machine hours
= $12,300,000 / 150,000
= $82 per machine hours
Total overhead = Predetermined overhead rate × Actual total machine hours
= $82 × 97,300
= $9,798,600
Then,
Overhead = Total overhead - Actual overhead
= $9,798,600 - $8,270,500
= $291,900 underapplied
Comet Company is owned equally by Pat and his sister Pam, each of whom holds 100 shares in the company. Pam wants to reduce her ownership in the company, and it was decided that the company will redeem 50 of her shares for $1,000 per share on December 31, 20X3. Pam's income tax basis in each share is $500. Comet has total E&P of $250,000. What are the tax consequences to Pam as a result of the stock redemption?
a) $25,000 capital gain and a tax basis in each of her remaining shares of $100.
b) $50,000 dividend and a tax basis in each of her remaining shares of $50.
c) $50,000 dividend and a tax basis in each of her remaining shares of $100.
d) $25,000 capital gain and a tax basis in each of her remaining shares of $500.
Answer:
d) $25,000 capital gain and a tax basis in each of her remaining shares of $500.
Explanation:
Calculation to determine the tax consequences to Pam as a result of the stock redemption
Using this formula
Capital gain = Total amount - Tax basis
Let plug in the morning
Capital gain = (50 * $1,000) - ($500 * 50)
Capital gain = $50,000 - $25,000
Capital gain = $25,000
Since the Capital gain is $25,000 which means that The tax basis will be income tax basis in each share of $500 for the remaining 50 shares.
Therefore the the tax consequences to Pam as a result of the stock redemption will be:$25,000 capital gain and a tax basis in each of her remaining shares of $500.
characteristics of a good negotiater
Following is information on two alternative investments being considered by Tiger Co. The company requires a 15% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Project X1 Project X2
Initial investment $ (98,000 ) $ (144,000 )
Expected net cash flows in:
Year 1 36,000 76,500
Year 2 46,500 66,500
Year 3 71,500 56,500
a. Compute each project's net present value.
b. Compute each project's profitability index. If the company can choose only one project, which should it choose?
Answer:
X1 NPV = $15,477.44
X2 NPV = $9,954.96
X1 PI = 1.16
X2 P2 = 1.07
X1 should be chosen
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
X1
Cash flow in year 0 = -98,000
Cash flow in year 1 = 36,000
Cash flow in year 2 = 46,500
Cash flow in year 3 = 71,500
I = 15%
NPV = 15,477.44
X2
Cash flow in year 0 = (144,000 )
Cash flow in year 1 = 76,500
Cash flow in year 2 = 66,500
Cash flow in year 3 = 56,500
I = 15%
NPV = 9954.96
profitability index = 1 + (NPV / Initial investment)
X1 - 1 + (15,477.44 / 98,000) = 1.16
X2 - 1 + (9954.96 / 144,000) = 1.07
X1 should be chosen because it has a higher NPV. this means that the project is more profitable than X2
To determine NPV using a financial calculator take the following steps:
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 NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
You would like to have enough money saved to receive a $50,000 per year in perpetuity after retirement. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start on the day of your retirement. The annual interest rate is 8%.)
Answer:
$625,000
Explanation:
Calculation to determine How much would you need to have saved in your retirement fund to achieve this goal
Using perpetuity equation
PV=C/r
Where,
C=Perpetuity after retirement
r=Annual interest rate
Let plug in the formula
PV = (50,000/0.08)
PV= $625,000
Therefore How much would you need to have saved in your retirement fund to achieve this goal will be $625,000
Cost-volume-profit analysis includes all of the following assumptions except:_________.
a. all units produced are sold.
b. changes in activity are the only factors that affect costs.
c. the behavior of costs is curvilinear throughout the relevant range.
d. costs can be classified accurately as either variable or fixed.
Answer:
a. all units produced are sold.
Explanation:
Cost-volume-profit analysis is also known as breakeven analysis. It is an analysis that review the point or number of units a company must sell for the revenue or sales to equate the total cost. In other words, the point the company neither makes a profit nor a loss.. The assumptions of this analysis are;
(i) The total costs are recognized as fixed and variable. Where as in reality, some costs may be semi-variable cost.
(ii) It assumes a linear relationship between costs and sales.
(iii) The selling price per unit of the product is constant.
