Answer:
not yet public
Explanation:
The Securities Exchange Act of 1934 was an act that helps preventing fraud investing and it stated that the investors should receive a truthful financial data. The Act was created to govern the securities transaction for the secondary market. It ensures accuracy and transparency in investing.
In the context, the Ben was liable for the fraud under Securities Exchange Act for leaking the information of the company to outsiders or investors as the information was not yet made public by the company.
The equation of exchange states
[tex] \texttt{The equation of exchange states}[/tex]
Anatomy of the Exchange Equation There are different variants of the equation (M * V = P * T, M * V = P * Y, M * V = P * Q,to take the simplest), but none of them is substantially different from the original formula of Fisher: [tex]{\boxed{ \boxed{ \bold{M * V = P * T.}}}}[/tex]----------------------------------------------------------------------------------------------
[tex] \bold{BRAINLYMENTALMENTE}[/tex]
10:02 0
Today
During the year to 31
December 2019 the
following total
transactions occurred:
1. Mary withdrew a
total of
Sh.10,000.00 in
cash
2. Stock in trade was
bought, all on
credit, for
Sh.34,000.00
3. Sales were made
totaling 60,000.00
of stock in trade
which had cost
Sh.37.000.00. Of
these sales Sh.51.
000.00 were on
credit and Sh.9,
000.00 for cash
Send
Answer:
I can't understand the question
Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $205,900, $265,100, and $78,400, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,900, machine hours 24,100, and number of inspections 1,600. Compute the overhead rate for each activity.
Answer:
Overhead cost per set-up =$71
Overhead cost per machine hour =$11
Overhead cost per inspection=$49
Explanation:
Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.
Activity rate is calculated as:
Activity cost for the period / Total cost drivers for the period
So, we can apply this formula as follows:
Overhead cost per set-up = $205,900/2,900 set-ups=$71
Overhead cost per machine hour = $265,100/24,100 hours=$11
Overhead cost per inspection = $78,400/1,600 inspection=$49
an increase in supply is illustrated by a supply curve sifting to the right
Answer:
Right************, ***
The following information is available for the year ended December 31: Beginning raw materials inventory$12,000 Raw materials purchases 88,000 Ending raw materials inventory 11,400 Manufacturing supplies expense 800 The amount of raw materials used in production for the year is: Multiple Choice $88,600. $76,600. $89,400. $87,400.
Answer:
Direct material used= $88,600
Explanation:
Giving the following information:
Beginning raw materials inventory$12,000
Raw materials purchase 88,000
Ending raw materials inventory 11,400
To calculate the direct material used in production, we need to use the following formula:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 12,000 + 88,000 - 11,400
Direct material used= $88,600
Journal Entries (Note Received, Renewed, and Collected) 1. Prepare general journal entries for the transactions. When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. May 22 Received a 30-day, 6% note in payment for merchandise sale of $20,000. June 21 Received $100 cash (interest) on the old (May 22) note; the old note is renewed for 30 days at 7%. July 21 Received principal and interest on the new (June 21) note. 28 Received a 45-day, 7% note in payment for accounts receivable balance of $11,600. Sept. 11 Received $101.5 cash (interest) plus $1,200 principal on the old (July 28) note; the old note is renewed for 60 days (from September 11) at 7.5%. Nov. 10 Received principal and interest on the new (September 11) note.
Answer:
Journal Entries:
May 22 Debit 6% Note Receivable $20,000
Credit Sales Revenue $20,000
To record the receipt of a 30-day, 6% note in payment for merchandise.
June 21 Debit Cash $100
Credit Interest Revenue $100
To record a month's interest received on the note receivable.
Debit 7% Note Receivable $20,000
Credit 6% Note Receivable $20,000
To record the renewal of the 6% note with a 7% note for 30 days.
July 21 Debit Cash $20,116.67
Credit 7% Note Receivable $20,000
Credit Interest REvenue $116.67
To record the receipt of principal and interest on the new (June 21) note.
July 28 Debit 7% Note Receivable $11,600
Credit Accounts Receivable $11,600
To record the receipt of a 45-day, 7% note in payment for accounts receivable balance.
Sept. 11 Debit Cash $1,301.50
Credit Interest Revenue $101.5
Credit 7% Note Receivable $1,200
To record the receipt of cash for note and interest.
Debit 7.5% Note Receivable $10,400
Credit 7% Note Receivable $10,400
To record the renewal of the old note for 60 days at 7.5%.
Nov. 10 Debit Cash $10,530
Credit 7.5% Note Receivable $10,400
Credit Interest Revenue $130
To record full settlement of principal and interest on the note.
Explanation:
a) Data and Analysis:
May 22 6% Note Receivable $20,000 Sales Revenue $20,000.
June 21 Cash $100 Interest Revenue $100
7% Note Receivable $20,000 6% Note Receivable $20,000
July 21 Cash $20,116.67 7% Note Receivable $20,000 Interest REvenue $116.67
July 28 7% Note Receivable $11,600 Accounts Receivable $11,600
Sept. 11 Cash $1,301.50 Interest Revenue $101.5 7% Note Receivable $1,200
7.5% Note Receivable $10,400 7% Note Receivable $10,400
Nov. 10 Cash $10,530 7.5% Note Receivable $10,400 Interest Revenue $130
Which type of bonds are written by a municipality with you give me to repay the amount of the bond plus interest on a particular maturity date
A) government
B) preferred
C)mutual
The Correct Answer: government
Entry for Issuing Materials
Materials issued for the current month are as follows:
Requisition No. Material Job No. Amount
103 Plastic 400 $ 2,800
104 Steel 402 24,000
105 Glue Indirect 1,620
106 Rubber 403 3,200
107 Titanium 404 31,600
Journalize the entry to record the issuance of materials.
For a compound transaction, if an amount box does not require an entry, leave it blank.
Work in Process
Factory Overhead
Materials
Answer:
Journal entry to record the issuance of materials
Date Accounts & explanation Debit Credit
Work in process $61,600
(2,800+24,000+3,200+31,600)
Factory overhead $1,620
Material $63,220
(To record the issuance of material)
To be included in property, plant, and equipment, an asset must have all of the following except Group of answer choices a. the asset must be held for use. b. the asset must have an expected life of a normal operating cycle. c. the asset must be tangible in nature. d. the asset must have an expected life of more than one year. g
Answer:
b. the asset must have an expected life of a normal operating cycle.
Explanation:
A current asset can be defined as all of the assets that are being owned by a company or business entity and are expected to be converted into their cash equivalent through sales or use within a period of one year of its date on the organization's balance sheet.
Hence, to be included in property, plant, and equipment, an asset must have all of the following;
I. The asset is expected or required to be held for use
II. It must be tangible in nature.
III. It is required to have an expected life of that is typically above a year.
Problems and Applications
For each of the following characteristics, indicate whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither.
Characteristic Perfectly Monopolistically
Competitive Competitive
Charges a price that is the same as marginal cost.
Sells a product differentiated from those of its competitors.
Produces at the efficient scale of the firm.
Equates marginal revenue and marginal cost.
Operates with excess capacity.
Earns economic profit in the long run.
Answer:
a perfectly competitive firm
a monopolistically competitive firm
a perfectly competitive firm
Both the perfectly competitive firm and monopolistically competitive firm
a monopolistically competitive firm
Neither firms
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Firms are productive and allocative efficient and do not operate with excess capacity
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services. As a result, price is always higher than marginal cost
Profit is maximised when marginal revenue equal marginal cost
An example of monopolistic competition are restaurants
Grassley Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run monthly usage of staff hours for Operating Departments 1 and 2 follow. Department 1 Department 2 Total Short-run usage (hours) 40,000 60,000 100,000 Long-run usage (hours) 45,000 55,000 100,000 If Grassley uses dual-cost accounting procedures and variable administrative costs total $200,000, the amount of variable administrative cost to allocate to Department 1 would be
Answer:
$80,000
Explanation:
Calculation to determine what the amount of variable administrative cost to allocate to Department 1 would be
Variable administrative cost to allocate to Department 1=(40,000 ÷100,000) x $200,000
Variable administrative cost to allocate to Department 1=0.4×$200,000
Variable administrative cost to allocate to Department 1= $80,000
Therefore The Variable administrative cost to allocate to Department 1 would be $80,000
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 for January. Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $22,600. Monthly depreciation is $28,500. Ignore taxes. Balance Sheet October 31 Assets Cash $ 34,000 Accounts receivable 84,500 Merchandise inventory 170,800 Property, plant and equipment, net of $624,000 accumulated depreciation 920,000 Total assets $ 1,209,300 Liabilities and Stockholders' Equity Accounts payable $ 254,000 Common stock 755,000 Retained earnings 200,300 Total liabilities and stockholders' equity $ 1,209,300 Accounts payable at the end of December would be:
Answer:
$204,000
Explanation:
Calculation to determine what the Accounts payable at the end of December would be:
December Account payable = ($325,000*80%)+($225,000*80%*70%)-($325,000*80%*70%)
December Account payable=$260,000+$126,000-$182,000
December purchase= $204,000
Therefore the Accounts payable at the end of December would be: $204,000
First and Ten Corporation’s stock returns have a covariance with the market portfolio of .0415. The standard deviation of the returns on the market portfolio is 20% and the expected market risk premium is 6.7%. The company has bonds outstanding with a total market value of $55 million and a yield to maturity of 6.5%. The company also has 4.2 million shares of common stock outstanding, each selling for $35. The company’s CEO considers the firm’s current debt-equity ratio optimal. The corporate tax rate is 21% and Treasury bills currently yield 3.4%. The company is considering the purchase of additional equipment that would cost $49 million. The expected unlevered cash flows from the equipment are $16.4 million per year for five years. Purchasing the equipment will not change the risk level of the firm. Calculate the NPV of the project.
Answer:
NPV of the project = $14,906,309.99
Explanation:
Note: See the attached excel file for calculation of the NPV of the project (in bold red color).
The weighted average cost of capital (WACC) used in calculating the discounting factor used in the attached excel file is calculated as follows:
Cost of equity = Treasury bills current yield + (Stock returns covariance with the market portfolio / Standard deviation of the returns on the market portfolio^2) * Expected market risk premium = 3.4% + (0.0415 / 20%^2) * 6.7% = 10.35%
After tax cost of debt = Bond yield to maturity * (100% - Tax rate) = 6.5% * (100% - 21%) = 5.14%
Market value of debt = $55,000,000
Market value of equity = Shares of common stock outstanding * Market price per share = 4,200,000 * $35 = $147,000,000
Total market value = Market value of equity + Market value of debt = $147,000,000 + $55,000,000 = $202,000,000
Equity share in the market value = $147,000,000 / $202,000,000 = 72.77%
Debt share in the market value = $55,000,000 / $202,000,000 = 27.23%
WACC = (Cost of equity * Equity share in the market value) + (After tax cost of debt * Debt share in the market value) = (10.35% * 72.77%) + (5.14% * 27.23%) = 8.93%
From attached excel file, we have:
NPV of the project = $14,906,309.99
Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:
Sales $18,600,000
Net operating income $5,200,000
Average operating assets $35,200,000
Required:
1. Compute the margin for Alyeska Services Company.
2. Compute the turnover for Alyeska Services Company.
3. Compute the return on investment (ROI) for Alyeska Services Company.
Answer and Explanation:
The computation is shown below:
a. The margin is
= Net operating income ÷ Sales
= $5,200,000 ÷ $18,600,000
= 27.96%
b. The turnover is
= Sales ÷ average operating assets
= $18,600,000 ÷ $35,200,000
= 0.53 times
c. The return on investment is
= Net operating income ÷ average operating assets
= $5,200,000 ÷ $35,200,000
= 14.77%
Hence, the above formulas to be applied
1. A service level agreement must be
a. A result of collaboration and negotiation
b. A simple clear summary document
Ć Stated in non-technical language
d. All of the above
Answer:
the answer is D
I think it will helps you
The management of City Front Inc. must decide between scrapping or reworking units that do not pass inspection. The company has 11,000 defective units that cost $6.00 per unit to manufacture. The units can be sold as is for $2.50 each or they can be reworked for $3.50 each and then sold for the full price of $9.70 each. What is the incremental income from reworking and selling the units
Answer:
If the units are reworked, income will increase by $40,700.
Explanation:
Giving the following information:
Number of units= 11,000
Sell as-is:
Selling price= $2.5
Rework:
Selling price= $9.7
Increase in costs= $3.5
We will take into account the incremental costs, the first production costs are equal to both options.
Sell as-is:
Effect on income= 11,000*2.5= $27,500 increase
Rework:
Effect on income= 11,000*(9.7 - 3.5)
Effect on income= $68,200 increase
If the units are reworked, income will increase by $40,700.
Baltimore, MD. The line started forming at 4 a.m. By 8 a.m. there were over 3,000 people in the line snaking around Amazon's fulfillment center. Despite 85-degree heat and equally high humidity, these people were willing to stand in line for hours, just for a chance to land a job at Amazon's local fulfillment center. By the end of the day, over 4,500 job-seekers had applied for the 1,200 jobs Amazon had posted, which pay wages of around $14 an hour. Amazon held similar job fairs in 11 other cities around the nation, promising to hire as many as 50,000 new employees. Source: News accounts of August 2-4, 2017.
a. What was the apparent market surplus at the Amazon job fair?
b. If Amazon increased wages to $16 per hour, what do you predict will happen to that market surplus?
Answer:
Here the quantity demanded, that is, vacancy = 1,200 While the total number of applications for these 1,200 positions was 4,500.
Explanation:
If Amazon increased wages to $16 per hour, what do you predict will happen to that.
Income Statement The following account balances were taken from the adjusted trial balance for Urgent Messenger Service, a delivery service firm, for the fiscal year ended November 30, 20Y1: Depreciation Expense $6,700 Fees Earned 355,800 Insurance Expense 1,270 Miscellaneous Expense 2,680 Rent Expense 50,900 Salaries Expense 178,900 Supplies Expense 2,280 Utilities Expense 19,400 Prepare an income statement for Urgent Messenger Service.
Answer:
$93,670
Explanation:
Preparation of an income statement for Urgent Mess
INCOME STATEMENT
Urgent messenger service
for the year ended november 30, 20Y1
REVENUE :
Fees earned $355,800
Less expenses :
depreciation expense ($6,700)
insurance expense ($1,270)
miscellaneous expense ($2,680)
rent expense ($50,900)
salaries expense ($178,900)
supplies expense ($2,280)
utilities expense ($19,400)
TOTAL EXPENSES ($262,130)
NET INCOME $93,670
($355,800-$262,130)
Therefore the income statement for Urgent Mess will be $93,670
The net income of Urgent Messenger Service is $93,670.
INCOME STATEMENT
REVENUE:
Fees earned $355,800
Expenses :
Depreciation expense ($6,700)
insurance expense ($1,270)
Miscellaneous expense ($2,680)
Rent expense ($50,900)
Salaries expense ($178,900)
Supplies expense ($2,280)
Utilities expense ($19,400)
Total Expenses ($262,130)
Net Income $93,670
In conclusion, the net income of Urgent Messenger Service is $93,670.
Read more about Income Statement
brainly.com/question/24498019
explain the roles of directors of the company and the roles of auditors using the categories provided explain in three points exclude executed non-executive
Answer:
directors are the trustees of the company's money and property, and also act as agents in the transaction which they enter into on behalf of the company. Directors are liable as trustees for breach of trust, if they misapplied the funds or committed breach of byelaws of the company.
An auditor is an authorised personnel that reviews and verifies the accuracy of financial records and ensures that companies comply with tax norms. They primarily objective is to protect businesses from fraud, highlight any discrepancies in accounting methods, among other things.
On January 1, James Industries leased equipment to a customer for a five-year period, at which time possession of the leased asset will revert back to James. The equipment cost James $830,000 and has an expected useful life of seven years. Its normal sales price is $830,000. The residual value after five years is $200,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 8%. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Calculate the amount of the annual lease payments.
Answer:
James Industries
The amount of the annual lease payments is:
= $207,878.86.
Explanation:
a) Data and Calculations:
Cost of equipment = $830,000
Normal sales price = $830,000
Residual value after 5 years = $200,000
Interest rate = 8%
Lease period = 5 years
From an online financial calculator:
Loan Amount 830000
Loan Term 5 years
Interest Rate 8
Results:
Payment Every Year $207,878.86
Total of 5 Payments $1,039,394.29
Total Interest $209,394.29
Lease Payment Schedule:
Period PV PMT Interest FV
1 $830,000.00 $-207,878.86 $66,400.00 $-688,521.14
2 $688,521.14 $-207,878.86 $55,081.69 $-535,723.98
3 $535,723.98 $-207,878.86 $42,857.92 $-370,703.04
4 $370,703.04 $-207,878.86 $29,656.24 $-192,480.42
5 $192,480.42 $-207,878.86 $15,398.43 $0.00
Beverly, a real estate broker, had the following income and expenses in her business: Commission income $160,000 Expenses: Bribes paid to city officials (illegal under state law) 30,000 Referral fees paid (not illegal) 11,000 Travel and transportation 6,000 Supplies 5,000 Office and phone 4,000 Parking tickets/fines 1,500 How much net income must Beverly report from her business? Group of answer choices $134,000 $104,000 $102,500 $132,500
Answer:
$134,000
Explanation:
Calculation to determine How much net income must Beverly report from her business
Commission income $160,000
Less Expenses:
Commissions to other brokers$11,000
Travel and transportation $6,000
Supplies $5,000
Office and phone$4000
Net income $134,000
Therefore the amount of net income that Beverly must report from her business is $134,000
write the importance of flower farming in Nepal in point
The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Monthly Fixed Cost Variable Cost Per Deb Sold Sales commissions $ 1.01 Shipping $ 1.51 Advertising $ 51,100 $ 0.31 Executive salaries $ 61,100 Depreciation on office equipment $ 21,100 Other $ 41,100 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 16,100 Debs in February, then the total budgeted fixed selling and administrative expenses for February is: Multiple Choice
An ad for Tums antacid shows a guest at a restaurant asking for Tums to alleviate his heartburn. The waitress brings him a bowl that is filled with packets of Maalox, Rolaids, Tums and other antacids. The waitress says that all antacids are the same. The guest then explains to her that Tums is different because it is the only antacid brand that has calcium. Tums is using: Group of answer choices one-sided advertising two-sided advertising comparative advertising verbal appeals visual appeals'
Answer:
comparative advertising
Explanation:
Comparative advertising is a marketing strategy where the product or service of the company would be represented as a superior good as compared to the competitor. It compared the features of the company to the competitor
Since in the given situation, it is mentioned that the guest explains to her than tums should be different as it the antacid brand that contains only calcium
So, the above represent the answer
Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $7 par value, 119,000 shares authorized Preferred stock, 15 percent, par value $6 per share, 6,000 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 21,300 shares of common stock at $12 cash per share. b. Sold and issued 1,900 shares of preferred stock at $16 cash per share. c. At the end of the year, the accounts showed net income of $41,400. No dividends were declared.
Answer:
$327,400
Explanation:
Preparation of the stockholders' equity section of the balance sheet at the end of the year.
TANDY, INCORPORATED Balance Sheet (Partial) At December
TANDY, INCORPORATED
Balance Sheet (Partial)
At December 31, this year
Stockholders' equity:
Contributed capital:
Common stock $149,100
(21,300*$7)
Additional paid-in capital, common stock $106,500
[21,300 x (12-7)]
Common stock - Contributed capital $255,600
($149,100+$106,500)
Preferred stock $11,400
(1,900*$6)
Additional paid-in capital, Preferred stock $19,000
[1,900 x (16-6)]
Preferred stock - Contributed capital $30,400
($11,400+$19,000)
Total Contributed Capital $286,000
($255,600+$30,400)
Retained earnings $41,400
Total Stockholders' equity $327,400
($286,000+$41,400)
Therefore the stockholders' equity section of the balance sheet at the end of the year will be $327,400
The financial statements of Friendly Fashions include the following selected data (in millions): ($ in millions except share data) 2021 2020 Sales $ 8,143 $ 9,234 Net income $ 159 $ 628 Stockholders' equity $ 2,000 $ 2,240 Average Shares outstanding (in millions) 720 - Dividends per share $ 0.30 - Stock price $ 9.90 - Required: Calculate the following ratios for Friendly Fashions in 2021.
Answer:
A. Return on equity 7.5%
B. Dividend yield 3.03%
C. Earnings per share $0.22
D. Price-earnings ratio 45
Explanation:
A. Calculation to determine the Return on equity
First step is to calculate the Average stockholders equity using this formula
Average stockholders equity = ( Beginning stockholders equity + Ending stockholders equity)/2
Let plug in the formula
Average stockholders equity= (2,240+2000)/2
Average stockholders equity= $2,120 millions
Now let calculate the Return on equity using this formula
Return on equity=Net Income / Average stockholders equity
Let plug in the formula
Return on equity=159 / 2,120
Return on equity= 7.5%
B. Calculation to determine the Dividend yield
Using this formula
Dividend yield=Dividend per share / Stock price
Let plug in the formula
Dividend yield=0.30/ 9.90
Dividend yield= 3.03%
C. Calculation to determine the Earnings per share
Using this formula
Earnings per share=Net Income / Average shares outstanding
Let plug in the formula
Earnings per share=159/ 720
Earnings per share= $0.22
D. Calculation to determine Price-earnings ratio
Using this is formula
Price-earnings ratio=Stock price / Earnings per share
Let plug in the formula
Price-earnings ratio=9.90 / 0.22
Price-earnings ratio= 45
Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight off her total. How much loan does Molly need?
Answer: $3000
Explanation:
Based on the information given, the amount of loan that Milly needs will be the addition of the down payment and the cash allowance and this will be:
= Down payment + Cash allowance
= $2500 + $500
= $3000
Molly needs a loan of $3000
Answer:
Molly needs a $1,000 loan.
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 54,000 units of RX5 follows. Direct materials$4.00 Direct labor 8.00 Overhead 9.00 Total costs per unit$21.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 54,000 units of RX5 for $19.00 per unit. Required:1. Determine the total incremental cost of making 54,000 units of RX5.2. Determine the total incremental cost of buying 54,000 units of RX5.3. Should the company make or buy RX5
Answer:
If the company makes the units in-house, it will save $280,800.
Explanation:
First, we need to calculate the incremental cost of making the units. We will take into account only the avoidable overhead costs, fixed costs will remain constant in both options (make or buy).
Direct materials= 4
Direct labor= 8
Avoidable overhead= 9*0.2= 1.8
Total variable cost= $13.8
Incremental cost= 54,000*13.8= $745,200
Now, the total cost of buying:
Buy= 54,000*19= $1,026,000
If the company makes the units in-house, it will save $280,800.
Sophia just graduated from college. She just sold the furniture from her college apartment for $450 in cash. She just deposited $2,700 in graduation money into her checking account and has $7,500 saved in her savings account from working part-time. She charged gas and groceries to her credit card that she hasn't paid off yet. The total balance on her credit card is $179. Sophia has driven the same car since high school that is valued at $3,254. She doesn't have an auto loan. Her total student loan amount after graduating is $54,178. What is Sophia's net worth? (Do not include the $ sign or commas in your answer).
Answer:
Sophia's Net Worth
Sophia's net worth is:
= ($40,453).
Explanation:
a) Data and Calculations:
Assets:
Proceeds from sale of furniture = $450
Checking account deposit = 2,700
Savings account 7,500
Car 3,254
Total assets $13,904
Liabilities:
Credit card $179
Student loan after graduating 54,178
Total liabilities $54,357
Sophia's net worth = ($40,453)
b) Sophia's net worth is in the negative because of the student loan. This implies that she is in debt. A negative net worth simply means that Sophia owes more than she owns. In other words, Sophia's liabilities exceed her assets' value.
The following labor standards have been established for a particular product: Standard labor hours per unit of output 4.5 hours Standard labor rate $ 17.60 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,100 hours Actual total labor cost $ 107,970 Actual output 1,300 units Required: a. What is the labor rate variance for the month
Answer:
4400 Unfavorable
Explanation:
Calculation to determine the labor rate variance for the month
First step is to calculate the Standard hours using this formula
Standard hours = Standard labor-hours per unit of output*Actual output
Let plug in the formula
Standard hours= 4.5*1,300 units
Standard hours= 5850
Now let calculate the Direct labor efficiency variance using this formula
Direct labor efficiency variance = (Standard hours - Actual hours)*Standard rate
Let plug in the formula
Direct labor efficiency variance= (5,850-6,100)*17.60
Direct labor efficiency variance= 4400 Unfavorable
Therefore the labor rate variance for the month is 4400 Unfavorable