Answer:
The answer is d. payment to hire a security worker to guard the gate to the factory around the clock.
Explanation:
Let re-visit to the concept of Fixed cost before applying to the questions.
Fixed costs are costs which are unchanged given changes in production level.
a. payment to a electric utility is not fixed cost because higher level of production required higher electricity consumption which leads to higher cost of electricity.
b. cost of raw material is not fixed cost because the higher the production level, the higher the raw material required for production.
c. wages to hire assembly line workers is not fixed cost because the higher the production level, the more workers required and the higher the wages will be.
d. payment to hire a security worker to guard the gate to the factory around the clock is fixed cost because regardless of the production level, the security worker will work for the same amount of time and receive the same level of payment as his workload is much likely to remain the same.
So, d is the correct choice.
Me Online, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $220,000. The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000, $60,000, $70,000 and $80,000. Sportswear Online uses the net present value method and has a discount rate of 11%. Will Sportswear Online accept the project?
a. Me Online rejects the project because the NPV is about -$22,375.73
b. Me Online accepts the project because the NPV is greater than $10,000.00
c. Me Online rejects the project because the NPV is about -$12,375.60
d. Me Online rejects the project because the NPV is about -$12,375.60
Answer:
a. Me Online rejects the project because the NPV is about -$22,375.73
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor - initial investment
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
where,
rate is 11%
Year = 0,1,2,3,4
Discount Factor:
For Year 1 = 1 ÷ 1.11^1 = 0.9009
For Year 2 = 1 ÷ 1.11^2 = 0.8116
For Year 3 = 1 ÷ 1.11^3 = 0.7312
For Year 4 = 1 ÷ 1.11^4 = 0.6587
So, the calculation of a Present value of all yearly cash inflows are shown below
= Year 1 cash inflow × Present Factor of Year 1 + Year 2 cash inflow × Present Factor of Year 2 + Year 3 cash inflow × Present Factor of Year 3 + Year 4 cash inflow × Present Factor of Year 4
= $50,000 × 0.9009 + $60,000 × 0.8116 + $70,000 × 0.7312 + $80,000 × 0.6587
= $45,045.05 + $48,697.35 + $51,183.40 + $52,698.48
= $197,624.28
So, the Net present value equals to
= $197,624.28 - $220,000
= -$22,375.80
We take the first four digits of the discount factor.
Contemporary project communications typically include both push methods such as blogs, and pull methods such as e-mail(A) True(B) False
Answer:
False.
Explanation:
This question is false because strategies are inversely exemplified in the communication of contemporary projects in this case. It would be correct to state that a blog is a pull method and an email is a push method.
The Push strategy refers to the way companies seek to push a product to a customer, that is, to look for ways to encourage consumers to buy a product, which is more about sending promotional emails.
The Pull strategy refers to the search of organizations to establish a relationship between the brand and the consumer, pulling the customer towards the product, which is more conducive to creating blogs, which generates diverse content that generate engagement and provides greater interaction. and creating customer relationship with the brand.
RT is about to loan his granddaughter Cynthia $10,000 for 1 year. RT’s TVOM, based upon his current investment earnings, is 12%, and he has no desire to loan money for a lower rate. Cynthia is currently earning 8% on her investments, but they are not easily available to her, and she is willing to pay up to $1,000 interest for the 1-year loan
a.Should they be able to successfully negotiate the terms of this loan?
Answer:
They should not be able to successfully negotiate the terms of this loan within these parameters.
Explanation:
It has been provided that RT earns 12% on his current investments and would not like to receive an interest rate of less than 12% on the loan he gives.
if RT gives a loan of $10,000 for one year, he would charge an interest rate of minimum 12%.
Interest = $10,000*0.12
= $1,200
RT requires $1,200 in interest.
It has been provided that Cynthia earns 8% on her investment.
If she borrows $10,000 and invests the amount for one year, she can earn 8% return on such amount.
Earning = $10,000*0.08
= $800
Cynthia is going to earn $800
RT requires a minimum of $1,200 as interest for 1-year loan he gives while Cynthia can pay a maximum of $10,000 as interest for 1-year loan she takes. there is mismatch between the minimum expectation to receive of lender and the maximum expectation to pay of borrower.
Therefore, They should not be able to successfully negotiate the terms of this loan within these parameters.
PotvinPotvin Self Storage purchased land, paying $ 165 comma 000$165,000 cash as a down payment and signing a $ 175 comma 000$175,000 note payable for the balance. PotvinPotvin also had to pay delinquent property tax of $ 5 comma 000$5,000, title insurance costing $ 4 comma 000$4,000, and $ 2 comma 000$2,000 to level the land and remove an unwanted building. The company paid $ 55 comma 000$55,000 to add soil for the foundation and then constructed an office building at a cost of $ 900 comma 000$900,000. It also paid $ 52 comma 000$52,000 for a fence around the property, $ 16 comma 000$16,000 for the company sign near the property entrance, and $ 6 comma 000$6,000 for lighting of the grounds.
Answer:
land 400,000
land improvements 76,000
building 900,000
Explanation:
cost 165,000 cash + 175,000 note payable = 340,000
delinquent property tax 5,000
soil 55,000
total land: 340,000 + 5,000 + 55,000 = 400,000
period cost: 2,000 demolition + 4,000 insurance
building: 900,000
Notice the soil while it is used for the fundation It will be part of the land not the building. If we demolish the building later the soild will be still there.
land improvements
fence 52,000
sing 16,000
lighting 6,000
Total 76,000
During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting long-term disability insurance for all employees. Alexis, HR manager, disagrees with him stating that short-term disability coverage is more advantageous. Which of the following supports Alexis' statement? a. Long-term disability coverage does not have any limits on the amount to be paid each month to employees b. Short-term disability coverage is offered by few employers, which leads to a competitive advantage c. Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company d. The nature of work is such that the level of risk involved is high and injuries could be permanent
Answer:
The correct answer is letter "C": Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.
Explanation:
Short-term disability is the type of employee insurance plan that gives compensation to the workers in front of injuries that are not related to work or illnesses that do not allow employees to develop their regular duties. The coverage starts between 1 to 14 days after workers suffer a condition that does not allow them to work. This type of benefit has a monthly limit which is an advantage for the firm, being this the reason why most employers offer short-term disability coverage.
Cayahuga Hardwood produces handcrafted jewelry boxes. A standard-sized box requires 8 feet of hardwood in the finished product. In addition, two board feet of scrap lumber are normally left from the production of one box. Hardwood costs $4.00 per board foot, plus $1.50 in transportation charges per board foot.Required: Compute the standard direct-material cost of a jewelry box.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Mace Auto Parts Company sells to retail auto supply stores on credit terms of "net 60". Annual credit sales are $300 million (spread evenly throughout the year) and its accounts average 28 days overdue. The firm's variable cost ratio is 0.75 (i.e., variable costs are 75 percent of sales). When converting from annual to daily data or vice versa, assume there are 365 days per year. Determine Mace's average collection period.
A. 88 days
B. 44 days
C. 74 days
D. 60 days
Answer:
Mace's average collection period is 88 days
Explanation:
Credit terms is "Net 60" which means the customer will naturally pay within 60 days. Further it is given that account average 28 days overdue. This means it takes 28 more days to collect the amount of receivables. Therefore the average collection period comes to
60 + 28 = 88 days.
Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Palmer Frosted Flakes boxes and $1. The company estimates that 60% of the boxtops will be redeemed. In 2018, the company sold 1,350,000 boxes of Frosted Flakes and customers redeemed 660,000 boxtops receiving 220,000 bowls. If the bowls cost Palmer Company $3 each, how much liability for outstanding premiums should be recorded at the end of 2018?
a. $540,000
b. $100,000
c. $150,000
d. $276,000
Final answer:
The liability for outstanding premiums that Palmer Company should record is $150,000, which is calculated by applying the estimated 60% redemption rate to the total number of boxes sold, then taking into account the number of redeemed bowls, and finally multiplying the outstanding number of bowls by the cost per bowl.
Explanation:
The liability for outstanding premiums is the amount the Palmer Company must record on its balance sheet to cover the cost of all the premiums (cereal bowls) it expects to distribute but have not yet been claimed. To calculate this liability, we need to estimate the number of boxes that will be redeemed for the bowls and not just the number of boxtops already redeemed. The company estimates a 60% redemption rate, which can be applied to the total number of boxes sold to estimate expected redemptions.
To calculate the expected number of redemptions:
The company sold 1,350,000 boxes and estimates a 60% redemption rate, so we expect 1,350,000 × 60% = 810,000 boxtops to be sent in.Since it takes 3 boxtops for one bowl, this results in an expected 810,000 / 3 = 270,000 bowls to be redeemed.With 220,000 bowls already redeemed, that leaves 270,000 - 220,000 = 50,000 bowls outstanding.At a cost of $3 per bowl, this results in a liability of 50,000 × $3 = $150,000.Therefore, the correct answer is option (c) $150,000.
The liability for outstanding premiums at the end of 2018 should be recorded as $6,630,000. The correct answer is option d. $6,630,000.
To calculate the liability for outstanding premiums, we need to find the number of boxtops expected to be redeemed and then multiply that by the cost of each bowl.
Calculation:
1. Expected Boxtops Redeemed:
- Total boxtops available: [tex]\( 1,350,000 \times 3 = 4,050,000 \)[/tex]
- Estimated redemption rate: [tex]\( 60\% \)[/tex]
- Expected boxtops redeemed: [tex]\( 4,050,000 \times 0.60 = 2,430,000 \)[/tex]
2. Number of Bowls Given Out:
- Number of bowls received: 220,000
3. Liability for Outstanding Premiums:
- Number of boxtops redeemed but not yet received bowls: [tex]\( 2,430,000 - 220,000 = 2,210,000 \)[/tex]
- Cost per bowl: $3
- Total liability: [tex]\( 2,210,000 \times 3 = \$6,630,000 \)[/tex]
Final Calculation:
- Liability for outstanding premiums: $6,630,000
Complete question : Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Palmer Frosted Flakes boxes and $1. The company estimates that 60% of the boxtops will be redeemed. In 2018, the company sold 1,350,000 boxes of Frosted Flakes and customers redeemed 660,000 boxtops receiving 220,000 bowls. If the bowls cost Palmer Company $3 each, how much liability for outstanding premiums should be recorded at the end of 2018?
a. $540,000
b. $100,000
c. $150,000
d. $6,630,000
Aster Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $800,000 and yield the following expected cash flows. Management requires investments to have a payback period of two years, and it requires a 10% return on its investments. Period Cash Flow 1 $300,000 2 350,000 3 400,000
Answer:
This question is incomplete. However, since it is talking about payback period. You can calculate it as shown below.
Explanation:
Payback period is the number of years it takes a project's expected future cash inflows to fully recover the initial amount invested.
Year CF Net CF
0 -800,000 -800,000
1 300,000 300,000 -800,000 = -500,000
2 350,000 350,000 -500,000 = -150,000
3 400,000 400,000-150,000 = 250,000
Payback period = Last year with negative net CF + (absolute net CF that year/ total CF the following year)
Payback period = 2 + (150,000/400,000)
= 2 +0.375
= 2.375
Therefore, it will take 2.38 years which is more than the required 2 years so you should reject this project.
Suppose there are two coffee shops in your college town, Laughing Monkey Latte and Kelly's Coffee Krush, and they decide to operate collusively as a cartel. If both shops abide by the cartel's agreement, each will earn $80000 in profit. If both shops cheat on the cartel's agreement, both will earn $15000 in profit. If one shop cheats and the other abides by the agreement, the cheater will earn a profit of $120000, while the shop that abides will have a loss of $7500. The Nash equilibrium between Laughing Monkey Latte and Kelly's Coffee Krush occurs when Choose one: O A. both shops abide by the cartel's agreement. B. both shops cheat on the cartel's agreement. C. Laughing Monkey Latte cheats on the agreement and Kelly's Coffee Krush abides by the agreement. D. There is no Nash equilibrium for Laughing Monkey Latte and Kelly's Coffee Krush.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Evans Inc. had current liabilities at April 30 of $74,100. The firm's current ratio at that date was 1.7.Required:Calculate the firm's current assets and working capital at April 30.Assume that management paid $17,200 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made. (Round "Current ratio" answer to 2 decimal places.)
Answer:
* The firm's current assets and working capital at April 30:
+ Current asset $125,970
+ Working capital: $51,870
* The current ratio and working capital at April 30 as if the April 29 payment had not been made:
+ Current ratio: 1.57
+ Working Capital: $51,870
Explanation:
* The firm's current assets and working capital at April 30:
We have Current asset/ Current Liabilities = Current ratio <=> Current asset = Current liabilities x current ratio = 74,100 x 1.7 = $125,970.
Working capital = Current asset - Current Liabilities = 125,970 - 74,100 = $51,870.
* The current ratio and working capital at April 30 as if the April 29 payment had not been made:
- Current asset will be 125,970 + 17,200 = $143,170; Current Liabilities will be 74,100 + 17,200 = $91,300 ( as cash has not be deducted for account payable settlement, as a result, account payable is still maintained balance of 17,200 higher than the scenario where the payable had been settled).
=> Current ratio = 143,170/91,300 = 1.57; Working Capital = 143,170 - 91,300 = $51,870.
Answer: Current asset S10,586
Working capital is-S63,514
Current ratio 1 to 7
Explanation:
Current ratio= current assets to current liability =1..7
1.7=x to 74100
1/7=x/74100
7x=74100
X=74100/7
Current asset=S10,586
Working capital is current assets minus current liability
S10,586 minus S74100
Working capital is -S63,514
Current ratio if the payment has not been made is 1 to 7
Schapp Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Hours Move time 3.4 Wait time 11.2 Queue time 7.6 Process time 2.3 Inspection time 1.2 The throughput time was:
Answer:
14.5 hours.
Explanation:
Given that,
Move time = 3.4
Wait time = 11.2
Queue time = 7.6
Process time = 2.3
Inspection time = 1.2
Throughput time:
= Process time + Move time + Inspection time + Queue time
= (2.3 + 3.4 + 1.2 + 7.6)
= 14.5 hours.
Therefore, the throughput time for the Schapp corporation was 14.5 hours.
Wade Company is operating at 75% of its manufacturing capacity of 140,000 product units per year. A customer has offered to buy an additional 20,000 units at $32 each and sell them outside the country so as not to compete with Wade. The following data are available: Costs at 750% capacity: Per Unit $12.00 $1.260,000 Total Direct materials Direct labor 945.000 9.00 1.575,000 $36,00 $3.780,000 Overhead (fixed and variable) Totals 15.00 In producing 20,000 additional units, fixed overhead costs would remain at their current level but incremental variable overhead costs of $6 per unit would be incurred. What is the effect on income if Wade accepts this order? Income will decrease by $4 per unit. Income will increase by $4 per unit. Income will increase by $5 per unit. Income will decrease by $5 per unit. Income will increase by $11 per unit.
Answer:
Income will increase by $5 per unit
Explanation:
The income effect in case of the order accepted is presented below:
As we know that
Additional sales per unit $32
Direct material per unit $12
Direct labor per unit $9
And, the incremental variable overhead cost is $6 per unit
Since the fixed cost is the same so it does not affect the effect on income
So, the income effect would be
= $32 - $12 - $9 - $6
= $5 per unit
Since the answer comes in positive which means there is an increase in income
The effect on income when accepting an additional order is that the profit above variable cost will be $4800 with a 4% price change and a new quantity of 960 units.
Your current profit above variable cost is $4800.
Your price will change by 4 percent.
Your new quantity is 960 units.
If you raise the price, the profit above variable cost will remain at $4800.
Delicious Dave?s Maple Syrup, a Vermont corporation, has property in the following states:Property State Beginning EndingMaine $971,644 $1,044,489Massachusetts $138,027 $251,061New Hampshire $420,455 $320,689Vermont $922,332 $954,376Total $2,452,458 $2,570,615
What are the property apportionment factors for Maine, Massachusetts, New Hampshire, and Vermont in each of the following alternative scenarios?A. Delicious Dave?s has nexus in each of the states.b. Delicious Dave?s has nexus in each of the states, but the Maine total includes $460,000 of investment property that Delicious rents out (unrelated to its business).c. Delicious Dave?s has nexus in each of the states, but also pays $56,000 to rent property in Massachusetts.
Final answer:
The property apportionment factors for each state are calculated based on the proportion of property value in each state to the total property value of Delicious Dave?s Maple Syrup. In scenario C, where Delicious Dave?s pays $56,000 to rent property in Massachusetts, the property apportionment factors for Massachusetts and Vermont are calculated differently.
Explanation:
The property apportionment factors for Maine, Massachusetts, New Hampshire, and Vermont can be calculated based on the proportion of property value in each state to the total property value of Delicious Dave?s Maple Syrup.
In scenario A, where Delicious Dave?s has nexus in each of the states, the property apportionment factors are:
Maine: ($1,044,489 - $971,644) / ($2,570,615 - $2,452,458) = 0.0127Massachusetts: ($251,061 - $138,027) / ($2,570,615 - $2,452,458) = 0.0137New Hampshire: ($320,689 - $420,455) / ($2,570,615 - $2,452,458) = -0.0216Vermont: ($954,376 - $922,332) / ($2,570,615 - $2,452,458) = 0.0166In scenario B, where the Maine total includes $460,000 of investment property that Delicious rents out unrelated to its business, the property apportionment factor for Maine would be:
Maine: ($1,504,489 - $971,644) / ($2,570,615 - $2,452,458) = 0.0818Massachusetts, New Hampshire, and Vermont remain the same as in scenario A.In scenario C, where Delicious Dave?s pays $56,000 to rent property in Massachusetts, the property apportionment factors for Massachusetts and Vermont would be:
Maine, New Hampshire, and Vermont remain the same as in scenario A.Massachusetts: ($307,061 - $138,027 - $56,000) / ($2,570,615 - $2,452,458) = 0.0506Outdoor Lighting Supply expects the following for 2018: Net cash provided by operating activities of $ 276 comma 000 Net cash provided by financing activities of $ 67 comma 000 Net cash provided by investing activities of $ 81 comma 000 Cash dividends paid to stockholders of $ 22 comma 000 Outdoor expects to spend $ 150 comma 000 to modernize its showroom. How much free cash flow does Outdoor expect for 2018?
Answer:
252.000 of free cash flow Outdoor can expect for 2018.
Explanation:
Operating, financing, and investing activities report positive cash flows for $424,000. Cash paid to stockholders and cost modernization report negative cash flows for $-172.000. Total cash flows is the sum of the amounts with opposite signs.
Outdoor Lighting Supply's expected free cash flow for 2018 is calculated by subtracting the capital expenditures from the net cash provided by operating activities, which amounts to $126,000.
Explanation:The student asked about calculating the free cash flow for Outdoor Lighting Supply for 2018. Free cash flow is a measure of financial performance that shows how much cash is generated by a company after accounting for capital expenditures like new projects or upgrades. To calculate it, we subtract capital expenditures from the net cash provided by operating activities.
For Outdoor Lighting Supply in 2018, the net cash provided by operating activities is $276,000, and they expect to spend $150,000 to modernize its showroom, which represents the capital expenditures. The free cash flow is therefore calculated as follows:
$276,000 (Net Operating Cash) - $150,000 (Capital Expenditures) = $126,000 Free Cash Flow.
Note that the net cash provided by financing and investing activities, as well as the cash dividends paid to stockholders, do not directly factor into the free cash flow calculation.
Which of the following statements is most accurate? Select one: a. In process costing, estimating the degree of completion of units is usually more accurate for conversion costs than for direct materials. b. The FIFO method includes the cost of the beginning Work in Process inventory account in calculating cost per equivalent units. c. The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory. d. The FIFO method of calculating equivalent units of production merges the work and the costs of the beginning inventory with the work and the costs done during the current period. e. It is not possible for there to be a significant difference between the cost of completed units between the weighted average and the FIFO methods.
Answer: The correct answer is "c. The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory.".
Explanation: Process Costing is a special accounting method to identify and accumulate direct costs and prorate indirect costs of the same manufacturing process.
The statement "The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory." is the most accurate.
The most accurate statement regarding process costing and FIFO is that the FIFO method only considers the production activity and costs of the current period, excluding the completion level of beginning inventory.
Explanation:The most accurate statement among the options provided, focused on process costing, is c. The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory. This method allows for the separation of costs between what was already in process at the beginning of the period and the costs incurred during the current period.
Under FIFO, the beginning work in process costs are maintained separately, and the costs added during the period to the new production are then used to calculate the cost per equivalent unit. This approach is different from the weighted average method, which blends the costs of beginning inventory with the costs of production during the period.
It's necessary to recognize that accounting for costs using FIFO can result in significant differences when compared with the weighted average method, specifically when there is a change in the costs of production or when the degree of completion of beginning inventory is significantly different from the new production.
Which subtype of ADHD is characterized by lethargic, daydreamy behavior?
Answer:
predominantly inattentive
Explanation:
ADHD is a disorder of neurobiological origin, in which there is a deficit in the functional structure of certain brain areas or centers related to the regulation of different attention processes.
The child with ADHD has difficulties in selecting the relevant focus of attention, (he does not know what he has to attend to) is slow in motor tasks and cognitive tasks, is easily distracted, and all this can lead to school age at learning difficulties, as well as having an impact on the emotional and personal areas of the child, (low self-esteem, anxiety, behavioral problems ...)
In a recent news release Bloomberg.com reported that the existing home sales declined in December of 2012 (the released article: "Existing Home Sales Decline as U.S. Supply Dwindles", January 22, 2013). As is obvious from the title of the article, the author blamed the reduction in the level of sales on a reduction in the supply of existing homes (existing homes are homes that had already been owned, i.e. not new construction). Which of the following explanations might justify this blame?
Homeowners expect housing prices to increase in the future
Homeowners expect housing prices to decrease in the future
Homebuyers expect housing prices to decrease in the future
Homebuyers expect housing prices to remain constant.
Answer:
The correct answer is Option (A) Homeowners expect housing prices to increase in the future
Explanation:
Existing home sales decline was attributed to reduction in the supply of existing homes. The owners of existing homes would not sell their property only if they believe that home prices will increase in the future. Therefore, they can sell the property at a higher price later.
Had homeowners believed that home prices will decline in the future, the owners would have put-up existing houses for sale so that they get a better price now than wait to see the price decline.
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100 per unit. Production was 67,200 units, while sales were 50,400 units.
a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations. Variable costing income from operations is less than absorption costing.
b. Determine the difference in variable costing and absorption costing income from operations. $
The difference in income between variable costing and absorption costing when production exceeds sales is due to the treatment of fixed manufacturing costs. The difference is calculated by multiplying unsold inventory by the fixed cost per unit, which yields a difference of $739,200 in income.
Explanation:Understanding Variable and Absorption Costing
When comparing variable costing and absorption costing, the main difference is in how fixed manufacturing costs are treated. Under variable costing, only variable costs are included in the product costs, while absorption costing includes both variable and fixed manufacturing costs. With the information provided, we know that fixed manufacturing costs are $44 per unit and variable costs are $100 per unit. Production was at 67,200 units while sales were 50,400 units.
Comparison of Income from Operations
Under variable costing, only variable production costs are expensed when products are sold. Hence, when production exceeds sales, as it does in this case, the inventory will carry less cost under variable costing since no fixed costs are allocated to unsold inventory. Conversely, under absorption costing, fixed manufacturing costs are allocated to each unit produced, regardless if they are sold or not. This means when production exceeds sales, absorption costing will report higher income from operations compared to variable costing, because some of the fixed costs are tied to the units in inventory rather than being expensed immediately.
The difference in income from operations under both costing methods is attributable to the deferred fixed manufacturing cost in inventory under absorption costing. To calculate the difference:
Find the number of units in ending inventory (Production - Sales) which is 67,200 - 50,400 = 16,800 units.Multiply this by the fixed cost per unit ($44) to determine the total fixed costs deferred in inventory: 16,800 units * $44/unit = $739,200.The difference in income between the two methods will be $739,200, which reflects the fixed manufacturing costs that are included in the ending inventory under absorption costing but not under variable costing.
MaryLiz claims single having no exemptions. Her state tax deduction is 18% of her federal tax contribution.
Calculate the amount of state tax MaryLiz owes if her gross pay for two weeks is $800.
The following federal tax table is for biweekly earnings of a single person.
a.$16.02
b.$16.56
c.$92.00
d.$127.44
Answer:
state tax = $16.56
Explanation:
Given data:
state tax percentage is 18%
gross pay is $800
from federal tax table,
for 2 week earning federal tax is given as 92
state tax is calculated as
state tax = federal tax × state tax
= 92 × 0.18
state tax = $16.56
Answer:
the answer is b in other words
Explanation:
The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $61,000. The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use could be sold now for a scrap value of $20,000. The new machine would have a useful life of 10 years with no salvage value.
Required:
Compute the simple rate of return on the new automated bottling machine.
Answer:
The simple rate of return on the new automated bottling machine is 7.07%
Explanation:
Consider the following formula to compute the result
Annual incremental Net operating income/Initial investment =Simple rate of return
(15000-6000-6100)/(61000-20000)
2900/41000=0.07073
7.07%
A government's Statement of Revenues, Expenditures, and Changes in Fund Balances reported proceeds of bonds in the amount of $500,000. It also reported expenditures for bond principal in the amount of $1,000,000. The last interest payment was on the last day of the fiscal year. The reconciliation from the governmental funds changes in fund balances to the governmental activities change in Net Position would reflect a(an):_________.
Answer Choices:
A)Increase of $500,000
B)Decrease of $500,000
C)Increase of $1,500,000
D)Decrease of $1,500,000
Answer:
A)Increase of $500,000
If you invest $2,000 today for three years at 5% interest paid annually, you will earn a total of $______ in interest. Assume you re-invest all interest.
A. 205.00
B. 300.00
C. 315.25
D. 500.00
Answer:
Option (C) is correct.
Explanation:
Given that,
Amount invested today = $2,000
Interest paid annually(r) = 5%
Time period(n) = 3 years
[tex]Future\ value=Present\ value\times(1+r)^{n}[/tex]
[tex]Future\ value=2,000\times(1+0.05)^{3}[/tex]
[tex]Future\ value=2,000\times(1.05)^{3}[/tex]
= $2,315.25
Therefore,
Total amount earn:
= Future value - Present value
= $2,315.25 - $2,000
= $315.25
The primary purpose of the Troubled Asset Relief Program was to Select one:
a. quickly provide jobs to the unemployed.
b. shore up shaky financial institutions.
c. lower the rate of inflation.
d. demonstrate that only the Fed controlled economic policy.
e. help out the European economy and boost demand for American exports.
Answer:
The answer is b. shore up shaky financial institutions.
Explanation:
The troubled asset relief program was a $700 billion bailout program that was designed and approved by the US congress to stabilize the american financial institutions following the financial crisis of 2008.
Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with allocated overhead of $960,000 for which the cost driver is machine setups.
How much overhead is assigned to each product? Earth Wind Fire
Select one:
A. $320,000 $320,000 $320,000
B. $200,000 $150,000 $450,000
C. $240,000 $180,000 $540,000
D. $180,000 $320,000 $460,000
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with an allocated overhead of $960,000 for which the cost driver is machine setups.
First, we need to calculate the manufacturing overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 960,000/ 320= $3,000 per machine set up
Now, we can allocate overhead based on machine set up:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Earth Allocated MOH= 3,000*80= $240,000
Wind Allocated MOH= 3,000*60= $180,000
Fire Allocated MOH= 3,000*180= $540,000
The overhead assigned to each product is $240,000 for Earth, $180,000 for Wind, and $540,000 for Fire. Therefore, the correct option is C.
To determine the overhead assigned to each product, we use activity-based costing. Here, the cost driver is machine setups, and the total overhead is $960,000.
Step 1: Calculate the total number of machine setups
Total Setups = 80 + 60 + 180 = 320
Step 2: Calculate the overhead cost per setup
Overhead Cost per Setup = Total Overhead/Total Setups = 960,000/320 = 3,000
Step 3: Calculate the overhead assigned to each product
- Earth:
Overhead for Earth = 80 * 3,000 = 240,000
- Wind:
Overhead for Wind = 60* 3,000 = 180,000
- Fire:
Overhead for Fire = 180 * 3,000 = 540,000
The overhead assigned to each product is $240,000 for Earth, $180,000 for Wind, and $540,000 for Fire.
Illustrate the following with supply and demand curves: In March 2015, hogs in the United States were selling for 81 cents per pound, up from 58 cents per pound a year before. This was due primarily to the fact that supply had decreased during the period. Show this change in the figure on the right.
1.) Using the point drawing tool, locate the equilibrium point for 2015 in the U.S. hog market. Label your point 'E'.
2.) Using the line drawingtool, illustrate the change in the U.S. hog market between 2014 and 2015. Properly label your line 'S2015'. (Hint: Perform the steps in the order given.) Carefully follow the instructions above and only draw the required objects.
Answer:
Details are bellow.
Explanation:
This case is about graphically describing the relationship between supply and demand in a market. As can be seen, the point of intersection between supply and demand is the equilibrium point of the system, and this varies according to supply and demand. In this case, supply has decreased in 2015 compared to 2014, which causes the price to rise from $0.58 to $0.85 while the number of units sold decreases.
Producer S brokered slightly more than $40,000 in insurance premiums last year. Based on this premium amount, what is the penalty (face) amount of the surety bond S is required to maintain in favor of the people of Illinois?
Answer:
Producer S brokered slightly more than $40,000 in insurance premium last year, the penalty amount of the surety bond S is required to maintain in favor of the people of Illinois is $2,500.
Explanation:
A producer that brokered more than $40,000 in insurance premium in a given year is required to pay a penalty amount of the surety bond of $2,500 in favor of the people of Illinois.
______ includes sales presentations, trade shows, and incentive programs.
A) Direct and digital marketing
B) Sales promotion
C) Personal selling
D) Public relations
E) Advertising
Answer: C) Personal selling
Explanation:
•Personal selling is a promotional selling method in which the salesman convince a potential buyer or customer to understand the merits of buying and using a product. It is a one-on-one selling strategy in which sales personnel must have good communication and interpersonal skills in other to win a buyer.
This system is adopted to develop good customer relationship.
•Public relations: Is a system put in place to manage information in an organization which could be government or private owned establishments or businesses.
•Sales Promotion: Are incentives directed at customers to encourage and motivated them buy a product or retain old customers. It is a tactic used to boost sales, tools employed includes coupons, contests, price slash offers, customer shows, etc.
•Direct and digital marketing: It is a form of marketing done digitally, it is done to support physical marketing, but it is fast gaining grounds in this dispensation due to the fast growing rate in the use of internet and social media. It involves the use of email, social media, blogs and websites etc.
Macrosoft Company reports net income of $61,000. The accounting records reveal depreciation expense of $76,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $56,000, $11,000, and $16,000, respectively. Prepare the operating activities section of Macrosoft's statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Answer:
Cashflow from Operating Activities $
Net income 61,000
Add: items not involving movement of cash
Depreciation 76,000
137,000
Changes in working capital:
Increase in prepaid rent (56,000)
Increase in accounts payable 11,000
92,000
Less: Tax 16,000
Cashflow from operating activities 76,000
Explanation:
Cashflow from operaing activities using the indirect method equals net income plus depreciation minus increase in prepaid rent plus increase in accounts payable minus tax.
The operating activities section of Macrosoft's statement of cash flows using the indirect method is $108,000.
Macrosoft Company Cash flows from operating activities
Net Income $61,000
Add: Non cash Expense Adjustments:
Depreciation $76,000
Change in Working Capital:
Prepaid rent ($56,000)
Accounts payable $11,000
Income taxes payable $16,000
Net Operating Cash flow $108,000
Inconclusion the operating activities section of Macrosoft's statement of cash flows using the indirect method is $108,000.
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In public stock companies, inside directorsA. generally form the lower levels of management in an organization.B. are appointed by shareholders to provide the board with necessary company information.C. are not full-time employees of the firm.D. are more likely to watch out for shareholder's interests than external directors.
Answer:
The correct answer is the option B: are appointed by shareholders to provide the board with necessary company information.
Explanation:
First of all, a public stock company is a type of company whose main characteristic is that the ownership ir organized via shares of stock that are free trade on a stock exchange market
Secondly, an inside director is the name that receives an employee from the company whose main characteristic is thar according to the fact that he is very specialized about the inner working of the company then he might be appointed by a major institutional investor in order to facilitate the interest of that person by acting for best of the company.
Inside directors in public stock companies are part of the company’s senior management, they are full-time employees providing board with necessary company information, while their attention to shareholders' interests may be presumably higher due to their vested interests.
Explanation:
In public stock companies, inside directors are typically high-ranking executives within the company. Thus option A is incorrect. Option C is also not accurate because inside directors are indeed full-time employees. Concerning option B, it's partially true because while inside directors do provide board with necessary company information, they're not particularly appointed by the shareholders, rather they work as part of the company's senior management. Finally, whether inside directors are more likely to watch out for shareholders' interests than external directors is subjective. However, since inside directors are part of the company's ongoing operations, it can be adeptly assumed that they may have more vested interests in company's performance, benefiting both the company and its shareholders. Consequently, they may potentially look out for shareholders' interests more.
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