Answer:
$235.00
Explanation:
Calculation to determine how much overhead would be assigned to a product requiring 5 direct labor hours
Overhead assigned to direct labor hours=[($3,441,000 + $930,000)/93000 direct labor hours]*5 direct labor hours
Overhead assigned to direct labor hours=($4,371,000/93,000)* 5 direct labor hours
Overhead assigned to direct labor hours= $47 per direct labor hour* 5 direct labor hours
Overhead assigned to direct labor hours= $235.00
Therefore how much overhead would be assigned to a product requiring 5 direct labor hours will be $235
Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 45 million cases of cola were sold every month at a price of $6 per case. After the tax, 39 million cases of cola are sold every month; consumers pay $7 per case (including the tax), and producers receive $3 per case.
The amount of the tax on a case of cola is $ per case. Of this amount, the burden that falls on consumers is $ per case, and the burden that falls on producers is $ per case. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers.
A. True
B. False
Answer:
Tax on a case of cola is $4 per case.
The burden that falls on consumers is $1 per case.
The burden that falls on producers is $3 per case
False. This is due to the fact that producers already carry a greater share of the tax burden.
Explanation:
Tax on a case of cola = Amount that consumers pay after the tax has been charged - Amount producers receive = $7 - $3 = $4 per case
Burden on consumers = Amount consumers pay after the tax has been levied - Amount consumers pay before tax was levied = $7 - $5 = $1 per case
Burden on producers = Tax on a case of cola - Burden on consumers = $4 - $1 = $3 per case
False. This is due to the fact that producers already carry a greater share of the tax burden.
A large auto auction company has personnel that specializes in sourcing. Once car suppliers are found and evaluated, another group of employees purchases the cars to sell at the auction. Which of the following is known as a component of a supply chain during the purchasing process?
a. demand
b. planning
c. sourcing
Answer:
procurement
Explanation:
Procurement is the process of obtaining the goods or services for the business motive. It is to be associated at the time when the company required to solicited the services or purchased the goods on the wider scale
So as per the given situation, the procurement is the component of the supply chain that could be considered for the purchasing process
So this is the answer but the same is not provided in the given options
WHAT ARE THE NEW LINKEDIN LIMITS?
Answer:
100 invites per week.
The new invite limits have been introduced by LinkedIn according to which you can’t send more than 100 invites per week. When you have reached the limit, a notification will pop up saying you’ve reached weekly limits.
You can’t do anything about it until the new week starts and the weekly limit resets.
Camper's Edge Factory produces two products: canopies and tents. The total factory overhead is budgeted at $750,000 for the year, divided between two departments ----Cutting, $350,000, and Sewing, $400,000. Each canopy requires 2 direct labor hours in Cutting and 1 direct labor hour in Sewing. Each tent requires 1 direct labor hour in Cutting and 6 direct labor hours in Sewing. Production for the year is budgeted for 20,000 canopies and 10,000 tents.
Required:
a. Determine the total number of budgeted direct labor hours for the year in each department.
b. Determine the factory overhead allocated per unit of each product using the department factory overhead allocation rates using direct labor hours as the base.
Answer:
Camper's Edge Factory
Departments Cutting Sewing
a. The total number of budgeted
direct labor hours for the year 60,000 70,000
b. Products Canopy Tent
Factory overhead per unit $17.50 $40
Explanation:
a) Data and Calculations:
Total budgeted factory overhead = $750,000
Canopy Tent Total
Direct labor hours
Cutting 2 1 3
Sewing 1 6 7
Total direct labor hours 3 7
Budgeted production units 20,000 10,000
Departments Cutting Sewing
Budgeted factory overhead $350,000 $400,000
Direct labor hours:
Canopy 40,000 (20,000 * 2) 10,000 (10,000 * 1)
Tent 20,000 (20,000 * 1) 60,000 (10,000 * 6)
Total direct labor hours 60,000 70,000
Overhead allocation rates $5.833 $5.714
($350,000/60,000) ($400,000/70,000)
Overhead per unit $17.50 ($5.833 * 3) $40 ($5.714 * 7)
A machine costs $5240 and produces benefits of $1000 at the end of each year for eight years. Assume an annual interest rate of 10%. Use engineering economics principals a.) What is the payback period in years
Answer:
5.24 YEARS
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
5240 / 1000 = 5.24 YEARS
When preparing the operating activities section of the statement of cash flows using the direct method, revenues and gains with no cash inflows are added back to net income. True or False 16
Answer: False
Explanation:
The primary reason for the Statement of Cashflows is to see how the company spends and receives its cash so that it can get a better view of just how much actual cash the company has.
This means that the method of preparing the cashflow statement could either be direct or indirect and this would not affect the fact that only items that have actual cash flows will be recorded.
You are closing the accounts you used to bill the project costs, but you still have some lingering expenses. Which best practice should you follow?
Answer:
Close all accounts except for the one related to the follow-up activities until the remanding expenses are complete.
Explanation: You never what to close out an account when the project has not been completed. If you still have remanding expenses the project is not complete.
The following information pertains to Nova Co.'s cost-volume-profit relationships:
Breakeven point in units sold ………………………….. 2,000
Variable expenses per unit ……………………………… 500
Total fixed expenses …………………………………… $150,000
How much will be contributed to net operating income by the 2,001st unit sold?
A. $ 65
B. $ 75
C. $150
D. $ 0
Answer: $150
Explanation:
Breakeven point in units sold = 2,000
Variable expenses per unit = 500
Total fixed expenses = $150,000
The break even in units is calculated as:
= Fixed Cost / Contribution per Unit
Therefore,
1000 = 150000/ Contribution per unit
Contribution per Unit will now be:
= 150000 / 1000
= 150
It should be noted that after the break even point, every unit sold will lead to an increase in the contribution per unit to the net operating income. Therefore, the amount that'll be contributed to net operating income by the 2,001st unit sold is $150.
A new machine requires an investment of $630,000 and will generate $100,000 in cash inflows for 7 years, at which time the salvage value of the machine will be $130,000. Using a discount rate of 10%, the net present value of the machine is $_________
Answer:
$-76,447.56
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
Cash flow in Y0 = -630,000
Cash flow in Y1 - Y6 = 100,000
Cash flow in Y7 = 100,000 + 130,000
I = 10%
npv = $-76,447.56
To find the NPV using a financial calculator:
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
Answer:
-76,510, (76,510)
Explanation:
You plan to deposit $1,800 per year for 5 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today.
Required:
a. What amount will be in your account at the end of 6 years?
b. Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your retirement account the day you retire?
Answer:
1-a. The amount that will be in your account at the end of 6 years is $11,643.14.
1-b. The amount that will be in your account at the end of 6 years is $11,992.43.
2-a. The amount you need in your retirement account the day you retire is $590,938.17.
2-b. The amount you need in your retirement account the day you retire is $679,578.89.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
1. You plan to deposit $1,800 per year for 6 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today.
a. What amount will be in your account at the end of 6 years? Round your answer to the nearest cent. Do not round intermediate calculations.
b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Round your answer to the nearest cent. Do not round intermediate calculations.
2. You and your wife are making plans for retirement. You plan on living 30 years after you retire and would like to have $90,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 15% annually.
a. What amount do you need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
b. Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
The explanation of the answers is now provided as follows:
1-a. What amount will be in your account at the end of 6 years? Round your answer to the nearest cent. Do not round intermediate calculations.
Since you plan to make your first deposit one year from today, this can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FV = D * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FV = Future value or the amount that will be in your account at the end of 6 years = ?
D = Annual deposit = $1,800
r = Annual return rate = 3%, or 0.03
n = number of periods = 6
Substituting the values into equation (1), we have:
FV = $1,800 * (((1 + 0.03)^6 - 1) / 0.03) = $11,643.14
Therefore, the amount that will be in your account at the end of 6 years is $11,643.14.
1-b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Round your answer to the nearest cent. Do not round intermediate calculations.
Since it is assumed that your deposits will begin today, this can be calculated using the formula for calculating the Future Value (FV) of an Annuity Due as follows:
FV = M * (((1 + r)^n - 1) / r) * (1 + r) ................................. (2)
Where,
FV = Future value or the amount that will be in your account at the end of 6 years = ?
D = Annual deposit = $1,800
r = Annual return rate = 3%, or 0.03
n = number of years = 6
Substituting the values into equation (2), we have:
FV = $1,800 * (((1 + 0.03)^6 - 1) / 0.03) * (1 + 0.03) = $11,992.43
Therefore, the amount that will be in your account at the end of 6 years is $11,992.43.
2-a. What amount do you need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
Since your first withdrawal will be made one year after you retire, this can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (3)
Where:
PV = Present value or the amount you need in your retirement account the day you retire = ?
P = Annual withdrawal = $90,000
r = Annual return rate = 15%, or 0.15
n = number of years = 30
Substituting the values into equation (3), we have:
PV = $90,000 * ((1 - (1 / (1 + 0.15))^30) / 0.15) = $590,938.17
Therefore, the amount you need in your retirement account the day you retire is $590,938.17.
2-b. Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
Since it is assumed that that your first withdrawal will be made the day you retire, this can be determined using the formula for calculating the present value of an annuity due as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) …………………………………. (4)
Where:
PV = Present value or the amount you need in your retirement account the day you retire = ?
P = Annual withdrawal = $90,000
r = Annual return rate = 15%, or 0.15
n = number of years = 30
Substituting the values into equation (4), we have:
PV = $90,000 * ((1 - (1 / (1 + 0.15))^30) / 0.15) (1 + 0.15) = $679,578.89
Therefore, the amount you need in your retirement account the day you retire is $679,578.89.
You are valuing an investment that will pay you nothing the first two years, $6,000 the third year, $8,000 the fourth year, $12,000 the fifth year, and $18,000 the sixth year (all payments are at the end of each year). What is the value of the investment to you now if the appropriate annual discount rate is 6.00%?
a) $33,030.85
b) $25,694.70
c) $44,000.06
d) $39,250.39
e) $48,980.87
Answer:
$33,030.85
Explanation:
we are to determine the present value of the cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 and 2 = 0
Cash flow in year 3 = $6,000
Cash flow in year 4 = $8,000
Cash flow in year 5 = $12,000
Cash flow in year 6 = $18,000
I = 6 %
PV = $33,030.85
To find the PV using a financial calculator:
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
The following items may appear on a bank statement: 1. NSF check 2. EFT Deposit 3. Service charge 4. Bank correction of an error from recording a $300 deposit as $30. Indicate whether the item would appear as debit or credit memo on the bank statement and whether the item would increase or
Answer:
1. NSF check
- Appears on the Bank Statement as: Debit Memo
- Decreases the Balance of the Company's Bank Account
2. EFT Deposit
- Appears on the Bank Statement as: Crediit Memo
- Increases the Balance of the Company's Bank Account
3. Service charge
- Appears on the Bank Statement as: Debit Memo
- Decreases the Balance of the Company's Bank Account
4. Bank correction of an error from recording a $300 deposit as $30
- Appears on the Bank Statement as: Debit Memo
- Increases the Balance of the Company's Bank Account
Suppose I want to open my own restaurant. Currently I am working asa Financial Analyst at a top bank earning $175,000 a year, which I willhave to quit to open a restaurant. I am also going to invest $100,000of my savings which were earning an average annual rate of 6%.Whatis my opportunity cost(implicit cost) of opening the restaurant
Answer: $181000
Explanation:
Amount earned in a bank = $175000
Money invested = $100000
Interest Rate = 6%
Interest earned will be:
= 6% × $100000
= $6000
Therefore, the total earnings when the individual is working in the bank will be:
= $175000 + $6000
= $181000
Therefore, the pportunity cost of opening the restaurant will be the income that's foregone when working in the bank which is $181000.
Waterway Industries can produce and sell only one of the following two products: Oven Contribution Hours Required Margin Per Unit Muffins 0.2 $4 Coffee Cakes 0.3 $5 The company has oven capacity of 1500 hours. How much will contribution margin be if it produces only the most profitable product
Answer:
$30,000
Explanation:
Muffins Coffee Cakes
Contribution Per Unit (A) $4 $5
Oven Hours Required (B) 0.2 0.3
Contribution Per Hour $20 $16.67
Rank 1 2
Total Hours Available 1,500
Hours Required for 1 Unit of Muffin 0.2
Total Muffins Production with 1500 Hours (1,500/.2) 7,500
Contribution Per Unit $4
Total Contribution (7,500*$4) $30,000
An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; all earnings are subject to social security tax; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment tax, 5.4% on the first $7,000; federal unemployment tax, 0.8% on the first $7,000. Prepare the journal entry to record the salaries expense. If required, round your answers to two decimal places. If an amount box does not require an entry, leave it blank.
Answer and Explanation:
The journal entries are shown below:
On December 31
Salary Expense $735.00
To Federal Withholding Taxes Payable $120.00
To Social Security Taxes Payable 44.10 (735 × 6%)
Medicare Taxes Payable 11.03 (735 × 1.5%)
Salaries Payable 559.87
(Being salary expense is recorded)
Here the salaries expense is debited as it increased the expense and credited the payable account as it increased the liabilities account
Working note
Regular earnings 600 (40 × 15)
Overtime earnings 135 (46 - 40) × 15 × 1.5
Gross earnings 735
Joseph managed the bookstore at a local university. He was known to mumble orders at his employees and yell at them when they made mistakes with the online ordering system. Which of the management skills below does Joseph lack? Conceptual Human relations Technical Decision making
Answer:
Human relations
Explanation:
Human relations is the ability for an individual to effectively interact with others in such a way that a productive outcome is achieved.
When a person does not have good human relations, negative traits like anger, aggression, and discord will be common.
In the given scenario Joseph will have been a better human relations manager if he patiently explained how to do things to his employees instead of shouting at them.
Complete the following statements with one of the terms listed here. You may use a term more than once. Some terms may not be used at all. Capital turnover Direct fixed expenses Flexible budget variance Key performance indictors (KPIs) Profit center Sales margin Common fixed expenses Favorable variance Goal congruence Management by exception Return on investment (ROI) Unfavorable variance Cost center Flexible budget Investment center Master budget variance Revenue center Volume variance
Solution :
a). Flexible budget
A flexible budget is a budget that is prepared for the different volume level which was originally anticipated.
b). Flexible budget variance
It is the different between the flexible budget and the actual results.
c). Return on Investment
It is used to evaluate the performance of the investment centers. It is calculated by dividing operating income by the investment.
d). Favorable variance
The company has the favorable variance when the actual values are more than the budgeted values.
The year 14 interest of a bond is the face line of the bond
Answer:
yes you are correct okay with you
Watermelon, Inc. provides the following data: 20X9 20X8 Cash $41,000 $25,000 Accounts Receivable, Net 102,000 62,000 Merchandise Inventory 72,000 50,000 Property, Plant, and Equipment, Net 181,000 120,000 Total Assets $396,000 $257,000 Additional information for the year ending December 31, 20X9: Net Credit Sales $550,000 Cost of Goods Sold 150,000 Interest Expense 25,000 Net Income 181,000 Calculate the rate of return on total assets for 20X9.
Answer:
the rate of return on total assets is 63.09%
Explanation:
The calculation of the rate of return on total assets is shown below:
Return on total Asset is
= {(Net Income + Interest Expense) ÷ Average Total assets} × 100
= {($181,000 + $25,000) ÷ ($396,000 + $257,000) ÷ 2} × 100
= $206,000 ÷ $326,500 × 100
= 63.09%
Hence, the rate of return on total assets is 63.09%
A company buys equipment for $48,000, expects to use it for ten years, and then sell it for $6,000. Using the straight-line method, the company should report annual depreciation for the equipment of: A. $4,200. B. $8,400. C. $4,800. D. $9,600.
Answer:
A $4,200
Explanation:
Given the following information, a company buys equipment for $48,000 expects to use it for ten years, and then sell it for $6,000
We need to use the formula below
Annual depreciation = (Original cost - Salvage value) / Estimated life(years)
Annual depreciation = ($48,000 - $6,000) / 10
Annual depreciation = $4,200
Zisk Co. purchases raw materials on account Budgeted purchase amounts are April, $80,000, May, $110,000, and June, $120,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $22,000. Prepare a schedule of budgeted cash payments for April, May, and June. (I need ending accounts payable)
Answer:
A schedule of cash payments for April, May, and June is prepared.
Explanation:
The following image shows the calculation and explanation of the cash payment schedule.
Your firm is considering a project with a discount rate of 9%. If you start the projecttoday, your firm will incur an initial cost of $490 and will receive cash inflows of$365 per year for 3 years. If you instead wait one year to start the project, the initial cost will rise to $530 and the cash flows will increase to $405 a year for the following 3 years. Would your firm be better off starting the project now or waiting to start the project in a year? Explain clearly including an estimate of the value of the option to wait.
Answer:
If the company start the project today then NPV of the project,
Year Cash Flow PV of Cash flow
0 -490 -490
1 365 365/1.09= 334.86
2 365 365/1.09^2 = 307.21
3 365 365/1.09^3= 281.85
NPV = 433.92
NPV of Project0= $ 433.92
If a company start a project after one year,
Year Cash Flow PV of Cash flow
0 0 0
1 -530 -530/1.09= -486.24
2 405 405/1.09^2 =340.88
3 405 405/1.09^3 = 312.73
4 405 405/1.09^4 = 286.91
NPV = 454.28
NPV of Project1= $ 454.28
Here for project start after one year has more Net Present Value of cash flow compared to which start now.
So, Starting a project after one year is more profitable.
On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 32,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Brisbane purchased 26,000 shares of common stock on the open market as treasury stock paying $42 per share. Brisbane sold 6,200 treasury shares on September 30, 2021, for $47 per share. Net income for 2021 was $182,905. Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 52,000 common shares at $42. The market price of the common shares averaged $52 during 2021.
Required:
Compute Brisbane's basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)
Answer and Explanation:
The computation of the basic and diluted earning per share is given below:
For Basic EPS
Given that
Income for 2016 = 182,905
Income after 7% dividend on cumulatie peference share is
= 182,905 - ( 7% × 1,600,000)
= $ 70,905
And,
Outstanding shares is
= 100,000 - (26,000 × 10 ÷ 12) + ( 6,200 × 3 ÷12 )
= 79,884
So,
Basic earning per share is
= $70,905 ÷ 79,884
= $0.89 per share
For Diluted EPS
Outstanding shares is
= 79,884 + 10,000
= 89,884
So,
Diluted EPS is
= $70,905 ÷ 89,884
= $0.79 per share
Working note
Option to be exercised = 52,000 shares
So,
shares to be bought back with proceeds = (52,000 × 42) ÷ 52 = 42,000 shares
so difference should be of 10,000 shares
The Doodad Company purchases a machine for $400,000. The machine has an estimated residual value of $20,000. The company expects the machine to produce two million units. The machine is used to make 400,000 units during the current period. Use the information above to answer the following question. If the units-of-production method is used, the depreciation expense for this period is: A. $80,000. B. $400,000. C. $380,000. D. $76,000.
Answer: $76,000
Explanation:
Depreciation per unit = (Cost - Residual value) / Number of units expected to be produced
= (400,000 - 20,000) / 2,000,000
= $0.19 per unit
40,000 units were used this period so the depreciation is:
= 400,000 * 0.19
= $76,000
When a company records depreciation it debits:_____.
A. Depreciation Expense and credits a contra-asset account.
B. Depreciation Expense and credits Cash.
C. a long-lived tangible asset account and credits Depreciation Expense.
D. a liability account and credits Depreciation Expense.
Answer: A. Depreciation Expense and credits a contra-asset account.
Explanation:
Depreciation is an expense which means that when it is incurred, it will be debited because expenses are debited to show that they have increased.
Depreciation reduces the value of an asset so the asset needs to be credited which is what is done when an asset reduces. The full entry would therefore involved a debit to the Depreciation account and a credit to the asset account that is being depreciated.
Which 2 statements are true regarding Intuit-approved QuickBooks Online apps?
Answer: • You or your client can add apps to the client's account
• They must be available via the Apps screen in QuickBooks Online Accountant or apps.com
Explanation:
You didn't give the options to the questions but I got the options online. Quickbook refers to an accounting software package that is used by businesses to pay bills, accept payments, do payroll functions etc.
The correct statements regarding Intuit-approved QuickBooks Online apps include:
• You or your client can add apps to the client's account.
• They must be available via the Apps screen in QuickBooks Online Accountant or apps.com
Answer:
They must be developed by Intuit
The must be available via the Apps screen in QuickBooks Online Accountant or apps.com
Explanation:
QuickBooks Online.com
Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $18,000 but the book value is $32,000. The firm's tax rate is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired.
A. $47,800
B. $70,000
C. $52,000
D. $40,100 20.
Answer:
A. $47,800
Explanation:
Calculation to determine the net cash outflow for the new machine after considering the sale of the old machine
First step
Loss on sale of old machine = 18000 - 32,000
Loss on sale of old machine = ($14,000)
Second step
Tax savings from loss on sale=14,000 x 30%
Tax savings from loss on sale = $4200
Third step
Net benefit from sale of old machine = Sales proceeds + tax on loss of sale
Net benefit from sale of old machine= $18,000 + $4200
Net benefit from sale of old machine= $22,200
Now let determine the Net cash outflow for new machine
Net cash outflow for new machine = Cost of new machine – Net benefit
Net cash outflow for new machine= $70,000 – $22,200
Net cash outflow for new machine= $47,800
Therefore the net cash outflow for the new machine after considering the sale of the old machine is $47,800
A logical way to allocate building maintenance costs to departments would be based on: Select one: A. Machine hours B. Number of employees C. Labor hours D. Square feet of floor space
Answer: D. Square feet of floor space
Explanation:
The building maintenance cost should be based on a measure that takes into account the size of the building so that the maintenance cost can be apportioned based on how much space needs to be maintained.
The best measure to do so would therefore be the square feet of floor space. If maintenance cost is assigned per square feet, it would take into account how much expenses are being incurred to maintain the entire size of the building.
In the small country of Economerica, there are 6 thousand people employed, 1 thousand people unemployed, and 3 thousand people of working age not included in the labor force. One thousand students graduate from the university and seek jobs in the country, but not one graduate is able to find one. Half of the new graduates believe there is no chance of finding a job and return home to live with their parents. Ceteris Paribus, what would the new unemployment rate be in Economerica?
A. 14.29%
B. 20.00%
C. 25.00%
D. 45.45%
Answer: B. 20.00%
Explanation:
Unemployment rate does not include those who have given up on finding a job.
Unemployment rate = Unemployed people / Labor force
Unemployed people:
= Original unemployed + half the new graduates
= 1,000 + (1,000 / 2)
= 1,500 people
Labor force:
= Unemployed + employed people
= 1,500 + 6,000
= 7,500 people
Unemployment rate:
= 1,500 / 7,500
= 20%
Storrer Co. identifies the following activities that pertain to manufacturing overhead, for each activity, identify an appropriate cost driver.
Activity Cost Driver
Materials handling Storrer Co. identifies the following activities th Number of Purchase OrdersMachine Hours UsedNumber of SetupsSquare Footage OccupiedNumber of RequisitionsDirect Labor HoursNumber of InspectionsNumber of Parts or AssembliesNumber of Employees
Machine setups Storrer Co. identifies the following activities th Number of Purchase OrdersNumber of EmployeesNumber of SetupsNumber of InspectionsDirect Labor HoursNumber of Parts or AssembliesSquare Footage OccupiedNumber of RequisitionsMachine Hours Used
Factory machine maintenance Storrer Co. identifies the following activities th Direct Labor HoursNumber of InspectionsNumber of EmployeesNumber of RequisitionsNumber of SetupsNumber of Purchase OrdersNumber of Parts or AssembliesSquare Footage OccupiedMachine Hours Used
Factory supervision Storrer Co. identifies the following activities th Machine Hours UsedNumber of InspectionsNumber of EmployeesNumber of Parts or AssembliesNumber of Purchase OrdersNumber of RequisitionsSquare Footage OccupiedNumber of SetupsDirect Labor Hours
Quality control Storrer Co. identifies the following activities th Number of EmployeesDirect Labor HoursNumber of InspectionsSquare Footage OccupiedNumber of RequisitionsNumber of Purchase OrdersNumber of SetupsNumber of Parts or AssembliesMachine Hours Used
Answer:
Activity
1. Material Handling
2. Machine Setups
3. Factory Machine Maintenance
4. Factory Supervision
5. Quality Control
Cost Driver
1. Number of Requisitions
2. Number of Setups
3. Machine Hours Used
4. Number of Employees
5. Number of Inspections
Explanation:
The following are the activities with their cost drivers:
Activity
1. Material Handling
2. Machine Setups
3. Factory Machine Maintenance
4. Factory Supervision
5. Quality Control
Cost Driver
1. Number of Requisitions
2. Number of Setups
3. Machine Hours Used
4. Number of Employees
5. Number of Inspections
