Solution :
1. Predetermined overhead rate
Fixed [tex]\text{overhead cost}[/tex] (253,000 / 22,000) = $ 11.5
Variable [tex]\text{overhead cost}[/tex] per direct labor-hour = $ 1
Predetermined overhead rate = $12.5
2. Total job cost $
Direct materials 703
Direct labor cost 317
Applied overhead (8 hours x $12.5 per direct labor hour) = 100
Total job cost = $ 1120
3. Charges = $ 1120 x 140%
= $1568
Wages of 8,000 are earned by workers but not paid as of december 31
Answer:
huh i dont understand that question no choosing letter
ABC Company uses the allowance method for estimating bad debts. Record the following journal entries:
12/31 ABC Company estimates that $5,000 of accounts receivable will be uncollectible.
3/5 ABC Company wrote off a $1,200 account of a customer, B. Brown.
Answer:
Date Account titles and Explanations Debit Credit
31 Dec Bad debts expense $5,000
Allowance for uncollectible accounts $5,000
(To record bad debts expense recorded)
5 Mar Allowance for uncollectible accounts $1,200
Accounts receivable $1,200
(To record account written off)
what are the first steps to start business
Answer:
finding a market for your product then finding a marketing strategy then get your assets set up
Explanation:
Make-It Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the United States, this is 1. neither illegal nor unethical. 2. unethical only. 3. illegal and unethical. 4. illegal only.
Answer:
Option 3
Explanation:
In simple words, the given case depicts the act of bribing under which one party gives certain favor to other party for their own benefit. In United states, this conduct is illegal and unethical. Bribing is done to get some extra benefits on the cost of society benefit and strict actions are taken against both parties if such claims comes to be true.
Thus, the correct option is 3.
Glen Inc. and Armstrong Co. have an exchange with no commercial substance. The asset given up by Glen Inc. has a book value of $72,000 and a fair value of $96,000. The asset given up by Armstrong Co. has a book value of $120,000 and a fair value of $114,000. Boot of $24,000 is received by Armstrong Co.What amount should Armstrong Co. record for the asset received
Answer:
the amount that should be recorded as the asset is $96,000
Explanation:
The computation of the amount that should be recorded as the asset is given below:
Book value of assets given up = $72,000
Add : cash paid in exchange. $24,000
Amount recorded as an asset should be $96,000
We simply added the book value and the cash paid amount for an exchange
Therefore the amount that should be recorded as the asset is $96,000
A new tool manufacturer opened a plant in town three months ago and hired 3000 new employees. People now have extra cash to spend and are out spending in the town. What is an example of how this extra money may shift the demand curve for goods and services in the town
Answer:
the extra money causes a 50% increase in IPhone sales.
Explanation:
One example would be that the extra money causes a 50% increase in IPhone sales. Therefore this higher income is shifting the demand curve for IPhones upwards due to the number of individuals purchasing the product. If individuals come into more money than they need to survive it is usually spent on luxury goods/services. This creates a demand for these goods and services that did not exist at the same level previously. This increased demand is what curves the demand curve upwards.
Which of the following is an example of a mixed cost?
a. electricity costs of $3 per kilowatt-hour
b. salary of a factory supervisor
c. rental costs of $10,000 per month plus $0.30 per machine hour of use
d. straight-line depreciation on factory equipment
Answer:
C
Explanation:
Mixed cost is a cost that consists of both fixed cost and variable cost
Fixed costs are costs that do not vary with output. e.g., rent, mortgage payments, depreciation
Variable costs are costs that vary with production
An example of variable cost is electricity costs of $3 per kilowatt-hour. If the factory is locked down, no electricity cost would be incurred.
The rental costs of $10,000 per month plus $0.30 per machine hour of use consists of both a fixed cost and a variable cost
the fixed cost is 10,000
the variable cost is $0.30 per machine hour
Miss Hap, the company bookkeeper, recorded the annual repair costs on the company's machinery as an increase to the Machinery account. As a result, which of the following statements correctly describes this situation?
A. Expenses will be overstated.
B. Liabilities will be overstated.
C. Stockholders' equity will be understated
D. Assets will be overstated.
Answer:
D
Explanation:
Repairs shouldn’t be recorded to the equipment (asset) account but should be recorded as an expense instead.
A company had net income of $43,000, net sales of $380,500, and average total assets of $220,000. Its profit margin and total asset turnover were, respectively:
a. 11.3%; 1.73
b. 11.3%; 19.5
c. 1.7%; 19.5
d. 1.7%; 11.3
d. 19.5%; 11.3
Answer:
11.3%, 1.73
Explanation:
Net income= 43,000
Net sales= 380,500
Total assests= 220,000
Therefore profit margin can be calculated as follows=
Net income/sales
= 43000/380,500
= 0.113×100
= 11.3%
Total assets turnover can be calculated as follows
= 380,500/220,000
= 1.73
the Hence profit margin is 11.3% and total assets turnover is 1.73
Chico Company paid $950,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture, $190,000; Building, $740,000; and Land, $132,000. Based on this information, what is the cost that should be allocated to the office furniture
Answer:
$171,000
Explanation:
The company psid $950,000 for office furniture, building and land
The market value of the assets is
Office furniture= $190,000
Building= $740,000
Land= $132,000
Therefore the cost that should be allocated to the office furniture can be calculated as follows
= 18/100 × 950,000
= 0.18×950,000
= 171,000
Ayayai Corporation reported net cash provided by operating activities of $345,000, net cash used by investing activities of $145,000, and net cash provided by financing activities of $75,000. In addition, cash spent for capital assets during the period was $200,000. No dividends were paid. Calculate free cash flow.
Answer:
the free cash flow is $145,000
Explanation:
The computation of the free cash flow is given below:
The free cash flow is
= cash flow from operating activities - capital expenditures
= $345,000 - $200,000
= $145,000
hence, the free cash flow is $145,000
The same should be considered and relevant
U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $13 million now and another $10 million 1 year from now. If total operating costs will be $1.2 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 10 to recover its investment plus a return of 15% per year
Answer:
$5.5228 million
Or
$5,522,800
Explanation:
First, calculate the present value of all cash outflows
Present value of cash outflow = Initial Cost + ( Year 1 cost x Discount factor 15%, 1 year ) + ( Annual Cost x Annuity factor 15%, 10 years )
Where
Initial cost = $13 million
Year 1 cost = $10 million
Discount factor 15%, 1 year = 1 / ( 1 + 15% )^1 = 0.8696
Annual Cost = $1.2 million
Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019
Placing value sin the formula
Present value of cash outflow = $13 million + ( $10 million x 0.8696 ) + ( $1.2 million x 5.019 )
Present value of cash outflow = $13 million + $8.696 million + $6.0228 million
Present value of cash outflow = $27.7188 million
Now use the following formula to calculate the annual revenue required to recover its investment plus a return of 15% per year
Present value of Annual revenue = Annual Revenue x Annuity factor 15%, 10 years
Annual Revenue = Present value of Annual revenue / Annuity factor 15%, 10 years
Where
Present value of Annual revenue = $27.7188 million
Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019
Placing value sin the formula
Annual Revenue = $27.7188 million / 5.019
Annual Revenue = $5.5228 million
Annual Revenue = $5,522,800
g A company has beginning inventory of 16 units at a cost of $24 each on February 1. On February 3, it purchases 34 units at $26 each. 22 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 22 units that are sold
Answer:
$188
Explanation:
FIFO method assumes that the units to arrive first will be sold first. Hence the cost of sales will be valued using the prices of earlier or older units.
Cost of Sales = 16 units x $24 + 6 units x $26
= $188
Thus, the cost of the 22 units that are sold is $188.
Selected accounts with some amounts omitted are as follows: Work in Process Oct. 1 Balance 24,900 Oct. 31 Goods finished X 31 Direct materials 94,400 31 Direct labor 197,000 31 Factory overhead X Finished Goods Oct. 1 Balance 14,800 31 Goods finished 322,700 If the balance of Work in Process on October 31 is $212,900, what was the amount of factory overhead applied in October? a.$197,000 b.$219,300 c.$434,800 d.$94,400
Answer:
b.$219,300
Explanation:
The computation of the amount of factory overhead applied in October is given below:
= Opening balance + direct material + direct labor - ending balance - good finished
= 24,900 + 94,400 + 197,000 - 212,900 - 322,700
= -$219,300
= $219,300
Hence, the option b is correct
Goldfarb Company manufactures and sells toasters. Each toaster sells for $22.95 and the variable cost per unit is $15.85. Goldfarb's total fixed costs are $24,200, and budgeted sales are 7,200 units. What is the contribution margin per unit
Answer: $7.10
Explanation:
The Contribution margin of a good refers to the amount left of the sales after the variable costs have been removed from it. It is useful in calculating the breakeven point as it can divide the fixed costs to find out the number of units needed to breakeven.
It is therefore calculated as:
= Sales - Variable cost
= 22.95 - 15.85
= $7.10
A 12-month insurance policy was purchased on Dec. 1 for $4,800 and the Prepaid insurance account was initially increased for the payment. The required adjusting journal entry on December 31 includes a: (Check all that apply.)
Answer:
Credit to Prepaid insurance for $400 and Debit to Insurance expense for $400
Explanation:
The journal entry is given below:
Insurance expense ($4800 × 1 ÷ 12) $400
Prepaid Insurance $400
(To record insurance expense)
Here the insurance expense is debited as it increased the expense and credited the prepaid insurance as it decreased the assets
Prepaid insurance credit for $400 and Insurance expense debit for $400.
Given that,
Insurance policy expense is $4,800.Insurance policy period is of 12 months.Working note,
Amount of insurance expense for 1 month = [$4,800 [tex]\times[/tex] (1 ÷ 12) ]
= $400
So, journal entry for the data are as follows,
Insurance expense A/c Dr. $400
To, Prepaid Insurance A/c $400
(Being insurance expense is recorded)
Learn more: https://brainly.com/question/4557688
Inflation imposes many costs on the economy: shoe-leather costs, money illusion, menu costs, wealth redistribution, price confusion, future price level uncertainty, and tax distortions.
a. True
b. False
Answer: True
Explanation:
Inflation refers to the decline in the purchasing power of a currency over time. Inflation creates shoe leather cost which refers to the cost of time and.the effort by which individuals spend so as to mitigate the effects of inflation, like holding fewer cash.
Also, inflation creates money illusion as there's reduction in the value of money that one holds. Inflation creates menu costs as prices goes up. It also brings about wealth redistribution, price confusion, future price level uncertainty, and tax distortions.
Therefore, the correct option is True.
503,000 on November 1, 2021, and signed a 12-month note bearing interest at 8%. Interest is payable in full at maturity on October 31, 2022. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2021, in the amount of
Answer:
$6,707
Explanation:
Calculation to determine what Universal Travel Inc. should report interest payable at December 31, 2021,
Interest payable at Dec 31,2021= 503,000 * 8% * 2 months/12 months
Interest payable at Dec 31,2021= $6706.6
Interest payable at Dec 31,2021= $6707 Approximately)
(November 1 - December 31 = 2 months)
Therefore Universal Travel Inc. should report interest payable at December 31, 2021, in the amount of $6,707
Pettygrove Company had 800,000 shares of $10 par value common stock outstanding. The amount of additional paid-in capital is $4,000,000, and Retained Earnings is $1,200,000. The company issues a 2-for-1 stock split. The market price of the stock is $14. What is the balance in the Common Stock account after this issuance
Answer:
$8,000,000
Explanation:
Balance in the Common Stock account = Number of hare after split * Par value of share
Balance in the Common Stock account = 800,000 * 2 * $10/2
Balance in the Common Stock account = $8,000,000
So, the balance in the Common Stock account after share split will be $8,000,000.
3. Prime Cuts was the brainchild of Cairn Terrier who guided all the marketing efforts of the product. She selected each element of the marketing mix such as the package, brand name, pricing, promotion, and placement decisions. Karen obviously serves in the job of:
Question Completion with Options:
A) marketing consultant.
B) brand manager.
C) operations analyst.
D) marketing intermediary
Answer:
Prime Cuts
Karen obviously serves in the job of:
A) marketing consultant.
Explanation:
Brand managers ensure that the image perceived by customers of Prime Cuts remains recognizable, up to date, and exciting. Brand managers promote and change the public perception of a brand's image. They ensure that the company's branding is consistent across advertising and other brand campaigns. A marketing consultant or manager ensures that prospective customers are reached with Prime Cuts in order to present them with the goods and to increase sales. She works to achieve effective marketing mix.
Recently, Shandra purchased 5 movie DVDs and 12 three ring binders. What if the price of DVDs rose by $3 and the price of three ring binders declined by $2. With Shandra’s income unchanged and prices for other goods remaining the same, what actions would Shandra most likely take?
Answer:
1. She'll purchase less quantity of movie DVDs
2. She'll purchase more quantity of three-ring binders
Explanation:
INITIAL CASE:
Purchase: 5 DVDs and 12 Binders
Price of DVDs = x Price of Binders = y
NEW CASE:
Price of DVDs = $(x + 3) Price of Binders = $(y - 2)
Shandra's income is unchanged - it doesn't increase or fall in this period.
Prices of "other goods" is also constant - hence the decisions Shandra will make concerning quantity to purchase of DVDs & Binders, will solely be based on the new prices of the two items/commodities.
This clears the "ceteris paribus" assumption of the law of demand! All other things - income & prices of other goods - are already determined to be equal or constant.
In this case, the consumer, Shandra will purchase more of the good whose price has fallen and less of the good whose price has risen. Hence, the actions that Shandra would take are:
1. She'll purchase less quantity of movie DVDs
2. She'll purchase more quantity of three-ring binders
An effective price ceiling will cause consumers to: Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box. check all that apply gain surplus from additional trades.unanswered lose surplus from paying a lower price.unanswered lose surplus from trades that no longer take place.unanswered gain surplus from paying a lower price.unanswered
Answer:
gain surplus from paying a lower price
Explanation:
An effective price ceiling will cause consumers to "gain surplus from paying a lower price."
This is based on the idea that an effective price ceiling usually leads to prices being below the equilibrium price or equates to a lower price.
At this point, the buyers demand more of the products, while the sellers have a lower incentive to produce more. And therefore, the quantity demanded will exceed the quantity supplied.
Hence, consumers gain excess (more demands) by paying a lower price.
In 2012, Wingen Inc. sold 325,000 units at $8 each .Sales volume is expected to increase by 15 percent in 2013 while the price of each unit is expected to decrease by 15 percent. the expected sales revenue for 2013 is a. $373,750 b.$2,541,500 c.$1,878,500 d.$2,990,000
Answer:
$2541500
Explanation:
Given :
2012 :
Units sold = 325,000
Price per unit = $8
2013 :
Projected increase in volume = 15%
Projected decrease in price = 15%
Expected revenue = sales price * volume sold
Volume in 2013:
Projected Unit sold in 2013 = (1 + 0.15) * 325000 = 373750
units
Projected Price in 2013 = (1 - 0.15) * Price in 2012 = (1 - 0.15) * $8 = $6.80
Expected revenue = $6.80 * 373750 = $2541500
Which of the following is (are) true regarding timeliness and the importance of periodic reporting? (Check all that apply.) Multiple select question. The value of information is often linked to its timeliness. Decision makers require financial statements that are audited to ensure reliability. Businesses report financial information at regular intervals to ensure timeliness of data. Useful information must reach decision makers frequently.
Answer:
• The value of information is often linked to its timeliness.
• Businesses report financial information at regular intervals to ensure timeliness of data.
• Useful information must reach decision-makers frequently.
Explanation:
Periodic reporting simply explains that the finances of businesses are reported in distinct time periods. The purpose of periodic reporting is simply for the provision of information.
Based on the options given, the true options regarding periodic reporting are:
• The value of information is often linked to its timeliness.
• Businesses report financial information at regular intervals to ensure timeliness of data.
• Useful information must reach decision-makers frequently.
Job enlargement tends to deter an employee's development because:_________
a. it is so time-consuming.
b. means adding new challenges and responsibilities to an employee's current job.
c. means moving the position up the organizational hierarchy.
d. refers to hiring more people for the same job category.
Answer:
b. means adding new challenges and responsibilities to an employee's current job.
Explanation:
Job enlargement refers to rise in the scope of the job via extending the range with respective to the duties and responsibilities of the job normally at the similar level. It means it added the different kind of activities at the similar level and the same is to be added in the existing job
So here the fear in the employee development is that they need to add the new challenges and responsibilities
Therefore the option b is correct
The following data relate to product no. 33 of La Quinta Corporation: Direct labor standard: 5 hours at $14 per hour Direct labor used in production: 45,000 hours at a cost of $639,000 Manufacturing activity: 8,900 units completed The direct-labor rate/price variance is:
Answer:
$9,000 (Unfavorable)
Explanation:
The computation of the direct-labor rate/price variance is given below:
Given that
Actual time used = 45,000 hours
Actual cost of labor used = $639,000
Now
Actual rate = Actual cost of labor used ÷ Actual time used
= $639,000 ÷ 45,000
= $14.2 per hour
And,
Standard rate = $14 per hour
Standard time = 5 hours per unit
Actual output = 8,900 units
So, standard time for actual output = 8,900 × 5
= 44,500
Now
Direct labor rate variance = Actual time × (Standard rate - Actual rate)
= 45,000 × (14 - 14.2)
= $9,000 (Unfavorable)
The closer the smoothing constant, ALPHA, is to 0 the greater the reaction to the most recent demand the greater the dampening, or smoothing, effect the more accurate the forecast will be the less accurate the forecast will be
Answer: the greater the dampening, or smoothing effect
Explanation:
The smoothing constant determines the level at which a forecast is influenced by previous observations. It simply determine the sensitivity of forecasts with regards to the changes in demand.
It should be noted that large values of α will lead to a scenario whereby forecasts will be more responsive to the more recent levels. On the other hand, the smaller values will result in a damping effect. Therefore, the closer the smoothing constant to α, the greater the dampening, or smoothing effect.
A consumer's weekly income is $250, and the consumer buys 12 bars of chocolate per week. When weekly income increases to $280, the consumer buys 13 bars per week. The income elasticity of demand for chocolate by this consumer is about
Answer:
0.69
Explanation:
Given that we have the formula for calculating income elasticity of demand as the percent change in quantity demanded divided by the percent change in income, hence, we have the percent change in quantity demanded => 13 - 12 = 1 ÷ 12 = 0.083
the percent change in income => 280 - 250 = 30 ÷ 250 = 0.12
Therefore we have => 0.083 ÷ 0.12 = 0.69
Hence, the final answer is 0.69
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has determined that if she drives 3,300 miles in a month, her total operating cost is $875. If she drives 4,400 miles in a month, her total operating cost is $1,095. Joyce has used the high-low method to determine that her monthly cost equation is: total monthly cost = $215 + $0.20 per mile driven.
1. Determine how many miles Joyce needs to drive to break even.
2. Calculate Joyce's degree of operating leverage if she drives 4, 200 miles.
3. Suppose Joyce took a week off and her sales for the month decreased by 25 percent. Using the degree of operating leverage, calculate the effect this will have on her profit for that month.
Answer and Explanation:
The computation is given below:
1.
Given that
Charges per mile = $0.50
Variable Cost per mile driven = $0.20
Fixed Cost = $215
So,
Contribution Margin per mile = Charges per mile - Variable Cost per mile driven
$0.50 - $0.20
= $0.30
Break-even units (in miles) = Fixed Cost ÷ Contribution Margin per mile
= $215 ÷ $0.30
= 717 miles
2.
Revenue for 4,200 miles is
= $0.50 × 4,200
= $2,100
And,
Variable Cost = $0.20 × 4,200
= $840
Now
Contribution Margin = Revenue - Variable Cost
= $2,100 - $840
= $1,260
And,
Fixed Cost = $215
So,
Net Income = Revenue - Variable Cost - Fixed Cost
= $2,100 - $840 - $215
= $1,045
So,
Degree of Operating Leverage = Contribution Margin ÷ Net Income
= $1,260 ÷ $1,045
= 1.2057
3.
Degree of Operating Leverage = % Change in Net Income ÷ % Change in Sales
1.2057 = % Change in Net Income ÷ -25%
1.2057 = % Change in Net Income ÷ -0.25
% Change in Net Income = -0.301425
= -30.1425%
Several years ago, Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world. This market was not perfectly competitive because this situation violated the:
Answer:
price-taking assumption.
free entry assumption.
Explanation:
A perfectly competitive market is one in which different firms compete for consumers of their products. The characteristics of the perfectly competitive market are:
- products are nearly identical
- all the firms are price takers. That is they are not able to determine price independently
- buyer knowledge of information about products is perfect and available to all
- free entry and exit to the market
- resources are perfectly mobile
In the given scenario above two of these rules are not obeyed.
Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world.
So they determine the price ( they are not price takers)
Also since they own nearly all the aluminium reserves there is no free entry for new firms
