Answer:
Variable manufacturing overhead rate variance= $2,640 favorable
Explanation:
To calculate the variable overhead rate variance, we need to use the following formula:
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Standard rate= $7.3
Actual rate= 61,770 / 8,800= $7
Actual quantity= 8,800
Variable manufacturing overhead rate variance= (7.3 - 7)*8,800
Variable manufacturing overhead rate variance= $2,640 favorable
The variable overhead rate variance for the month is $2,464.
What is Variable overhead variance?Variable overhead is the difference between actual variable costs, based on the cost of the indirect material involved in the production, and the budgeted costs called the standard variable overhead cost.
The formula for calculation of Variable overhead rate:
[tex]\rm\,Variable\;Manufacturing \;Overhead \; Rate \,Variance= (Standard \; Rate - Actual \; Rate)\times Actual \; Quantity[/tex]
[tex]\rm\,Actual\; Rate = \dfrac{\$61,770}{8,800}\\\\\rm\,Actual\; Rate = \$7.02 \,Overhead \,Rate \, Per\, Machine\, Hour[/tex]
Standard variable manufacturing overhead rate $7.30 per machine-hour.
[tex]\rm\,Variable\;Manufacturing \;Overhead \; Rate \,Variance= (\$7.30 - \$7.02)\times 8,800\\\\ \rm\,Variable\;Manufacturing \;Overhead \; Rate \,Variance= \$2,464[/tex]
Hence, The variable overhead rate variance for the month is equal to $2,464.
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Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 4:3:2 mix (thus, a batch of 9 towels has 4 bath towels, 3 hand towels, and 2 washcloths). Each bath towel sells for $10 and costs $4, each hand towel sells for $5 and costs $2; and each washcloth sells for $2.50 and costs $1. The shop's annual fixed expenses are $324,000, and the income tax rate, t, is 40%. How many bath towels must the firm sell at the breakeven point
Answer:
36,000 baths
Explanation:
The computation of the bath towels that must the firm would sell at the break even point is shown below:
But before that the contribution margin per unit is
Particulars Bath towels Hand towels Wash towels
Selling price $10 $5 $2.5
Less: variable cost $4 $2 $1
Contribution margin $6 $3 $1.50
No of items in batch 4 3 2
Contribution margin per unit $24 $9 $3
Now the number of baths would be
= $324,000 ÷ ($24 + $9 + $3) × 4
= 36,000 baths
Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,450 at the end of ten years. Using the straight-line method, depreciation expense for 2022 and the book value at December 31, 2022, would be: Multiple Choice $6,805 and $54,440. $7,450 and $59,600. $7,450 and $53,150. $6,805 and $60,890.
Answer:
$6,805 and $60,890.
Explanation:
The computation of the depreciation expense for 2022 and the book value at December 31, 2022 is shown below;
Depreciation expense is
= (Cost - salvage value) ÷ useful life
= ($74,500 - $6,450) ÷ 10 years
= $6,805
And, the book value is
= $74,500 - ($6,805 × 2)
= $60,890
Nabais Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below: Units % Complete with respect to Conversion Beginning WIP inventory 3,300 80% Transferred in from the prior Dept during October 30,700 Completed and transferred to next Dept during October 32,200 Ending work in process inventory 1,800 60%What were the equivalent units for conversion costs in the Lubricating Department for October?a. 29,200b. 32,200c. 31,780
Answer:
33,280 units
Explanation:
Calculation of equivalent units for conversion costs
Units Completed and Transferred (32,200 x 100%) 32,200
Units in Ending Inventory (1,800 x 60%) 1,080
Equivalent units of production 33,280
Therefore,
the equivalent units for conversion costs in the Lubricating Department for October is 33,280 units
Which of the following techniques will help the writer of an advertisement
inspire desire for a product?
A. Emphasizing benefits
B. Using loud sounds
C. Asking the audience to do something
D. Matching the target market's language
Answer:
a
Explanation:
The techniques which will help the writer of an advertisement to inspire desire for a product is emphasizing benefits. Thus, option A is correct.
What is advertisement?Advertising is the practice and techniques employed to bring attention to a product or service. Advertising aims to put a product or service in the spotlight in hopes of drawing it attention from consumers.
An advertisement, otherwise known as an advert or ad, is generally considered a public communication that promotes a product, service, brand or event.
The goal of the writer is to attract new clients to towards his products. The strategy of stressing benefits will assist the writer of an advertising in inspiring demand for a product. Therefore, it can be concluded that option A is correct.
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Discount Mart borrows $400,000 on July 1 with a short-term loan that has an annual interest rate of 6% payable on the first day of each subsequent quarter. What will Discount Mart need to accrue on September 30, assuming that no accrual had been made since the last interest payment? Select one: A. $6,000; Decrease liabilities, decrease cash B. $4,000; Increase liabilities, increase expenses C. $6,000; Increase expenses, increase liabilities D. $4,000; Increase expenses, decrease cash
Answer:
C. $6,000; Increase expenses, increase liabilities
Explanation:
The computation is shown below:
= Borrowed amount × rate of interest × given months ÷ Total months
= $400,000 × 6% × 3 months ÷ 12 months
= $6,000
So this $6,000 represent an increase in liabilities and increase in expenses
hence, the correct option is c.
While Charles and Esther Kveragas were in a rented motel room at the Scottish Inns, Inc., in Knoxville, Tennessee, three intruders kicked open the door, shot Charles, and injured Esther. The intruders also took $3,000 belonging to the Kveragases. The Kveragases brought an action against the motel owners, claiming that the owners had been negligent in failing to provide adequately for the safety of the motel s guests. At trial, the evidence showed that the door had a hollow core and that it fit poorly into the door frame. There was no deadbolt lock on the door, although such locks were easily available and commonly used in motels. The only lock on the door was one fitted into the door handle, which was described as a grade three lock, although a security chain was attached to the door. The Kveragases had both locked and chained the door, but still, a single kick on the part of the intruders was all that was necessary to open it. Evidence at trial also indicated that a deadbolt lock would have withstood the force that was applied to the door.
Required:
Did the motel owners have a duty to protect their guests from criminal acts on the motel premises, and if so, did the owners breach that duty of care by failing to provide more secure locks on the doors of the motel rooms?
Answer:
yes they had a duty of protection to guests and they breached this duty
Explanation:
Did this motel have the duty to protect the Kveragas from this kind of activity?
The answer is yes under the tort law. This motel has a duty of care to safeguard the life, security and properties of others. This is a law obligation and the motel has to take necessary actions to follow through.
The kveragas were occupants of this motel, during ther stay here, this question has made us to understand that they were attacked by intruders and they also lost their properties in this attack. The motel did not fulfill its duty of care to the kveragas because the room they rented was not properly secured. The door did not have proper lock. An Insufficient and bad lock system is what gave this criminals entry and brought the occupants to harm.
Therefore it is evident that the motel owners breached there duty of care by not having a secure lock system.
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $555,000. The corporation's basis in the Tea Company stock was $422,500. The land had a basis to Tea Company of $815,000. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives
Answer:
$132,500 gain recognized and a basis in the land of $555,500.
Explanation:
The given values are:
Fair market value,
= $555,000
Corporation's basis in the company stock,
= $422,500
Land basis,
= $815,000
Now,
The recognized gain will be:
= [tex]Fair \ market \ value-Corporation's \ basis[/tex]
On substituting the given values, we get
= [tex]555,000-422,500[/tex]
= [tex]132,500[/tex] ($)
Basis in land will be equal to fair market value i.e., $555,000.
Thus the above is the correct solution.
Kristen and Harrison are equal partners in the KH Partnership. The partners formed the partnership five years ago by contributing cash. Prior to any distributions Harrison has a basis in his partnership interest of $45,500. On December 31, KH makes a proportionate operating distribution of $48,500 cash to Harrison. What is the amount and character of Harrison's recognized gain or loss and what is his remaining basis in KH
Answer:
Harrison would have a gain of $3,000 and his remaining basis in KH partnership would now be $0.
Explanation:
With regards to the above, in order for Harrison to make any gain, the amount of cash received by him from operating distribution in the KH partnership should be greater than his share or basis in the partnership business. Here, the cash received $48,500 received by him is actually more that his basis $45,500; hence he has a gain of $3,000[$48,400 - $45,500]
Also, since he(Harrison) has allocated his entire basis in KH partnership, this means that he has no basis left. After the operating distribution , he has $0 basis left in KH partnership.
Jenna began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership debt consists of $6,000 of recourse debt, and $10,000 of nonrecourse debt at the beginning of the year, and $6,000 of recourse debt, and $13,000 of nonrecourse debt, at the end of the year. During the year, she was allocated $65,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership, and she has $4,000 of passive income from other sources.A) How much of Jenna's loss is limited by her tax basis?B) How much of Jenna's loss is further limited by her at-risk amount?C) How much of Jenna's loss is further limited by the passive activity loss rules?
Answer:
a) Jenna's tax basis = $45,000 + ($13,000 - $10,000) = $48,000
loss allocation = $65,000
loss limited by her tax basis = $65,000 - $48,000 = $17,000
b) Jenna's at risk loss = $48,000 - $13,000 = $35,000
c) Jenna's loss limited by passive activity = $35,000 - $4,000 = $31,000
The amount of loss limited by Jenna’s tax basis is $20,000; the amount of Jenna’s loss that is further limited by her at-risk amount is $10,000; and the amount of Jenna’s loss that is further limited by the passive activity loss rules is $31,000.
What is Tax -Basis?The basis for each partner's tax base is the sum of the partner's contribution amount and the share of the debt and any income earned. Distribution reduces the partner tax base.
Calculations of The Amount of Loss Limited Tax Basis, At-Risk Amount, and Passive Activity Loss Rules:
a) Amount of loss limited by Jenna’s tax basis is Loss allocated to Jena – Jena’s Tax Basis.
[tex]\rm\,Amount\; of \;loss \;limited\; by \;Jennas\; tax\; basis\; = \$65,000 - \$45,000[/tex]
Amount of loss limited by Jenna’s tax basis is $20,000
B) The amount of Jenna’s loss that is further limited by her at-risk amount can be calculated as follows: is At-risk limitation - Amount of loss limited by Jenna’s tax basis (1)
Where:
[tex]\rm\, At-risk\, limitation = Loss \,allocated \,to \,Jena - At\,-risk \,amount\, limitation\, \\\\= \,Loss\, allocated\, to\, Jena\, - (\,Tax \,basis\, - Nonrecourse\, Debt)[/tex]
[tex]= \$65,000 - (\$45,000 - \$10,000) \\= \$30,000[/tex]
Substituting the relevant values into equation (1), we have:
Amount of Jenna’s loss that is further limited by her at-risk amount
[tex]= \$30,000 - \$20,000\\ = \$10,000[/tex]
C) The amount of Jenna’s loss that is further limited by the passive activity loss rules can be calculated as follows:
Amount of Jenna’s loss that is further limited by the passive activity loss rules:
[tex]= \rm\,At-risk\; amount \;limitation - Passive \;income \\= Tax \;basis - Nonrecourse\; Debt) - Passive \;income \\= (\$45,000 - \$10,000) - \$4,000 \\= \$31,000[/tex]
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In 2018, U.S. government spending was $3.90 trillion, tax revenue was $4.50 trillion, GDP was $14.02 trillion, and total consumer spending was $10.75 trillion. If the economy has no exports or imports, what was the national savings in 2018? How much was public savings? How much was private savings?
Answer: See explanation
Explanation:
Government spending = $3.90 trillion
Tax revenue = $4.50 trillion
GDP = $14.02 trillion
Consumer spending = $10.75 trillion.
National savings will be:
= GDP - Consumer spending - Government expenditure
= $14.02 - $10.75 - $3.90
= -$0.63 trillion
Public savings will be:
= Tax revenue - Government spending
= $4.50 trillion - $3.90 trillion
= $0.60 trillion
Private savings will be:
= GDP - Consumer spending - Tax revenue
= $14.02 - $10.75 - $4.50
= -$1.23 trillion
Select the items below which must be adjusted to the book balance: ________
a. deposits in transit
b. book error
c. bank error
d. outstanding checks
e. interest earned on checking account
f. collections of accounts receivable by the bank
Answer:
b. Book Error
e. Interest earned on the Checking account
f. Collections of Accounts receivable by the bank.
Explanation:
Items which must be adjusted to the book balance as this question is concerned are Book Error, Interest earned on the Checking account & Collections of Accounts receivable by the bank.
These above items require adjustment in book balance to compute the adjusted book balance.
For each of the statements below, use the dropdown box to select the response that completes the sentence correctly. Knowledge Check 01 When the units produced are equal to the units sold, the net operating income computed using the variable costing method is ______ the net operating income using the absorption costing method. multiple choice 1 is less than is equal to is greater than Knowledge Check 02 When the units produced exceed the units sold, the net operating income computed using the variable costing method is ______ the net operating income using the absorption costing method. multiple choice 2 is greater than is equal to is less than Knowledge Check 03 When the units produced are less than the units sold, the net operating income computed using the variable costing method is ______ the net operating income using the absorption costing method. multiple choice 3 is greater than is equal to is less than
Answer:
a. is equal to
b. is greater than
c. less than
Explanation:
The difference between variable costing and absorption costing methods is that the overheads are treated differently. While absorption costing method does not differentiate the fixed manufacturing overheads from the variable manufacturing costs, the variable costing method only accounts for the variable elements of all costs, whether manufacturing cost or not.
IF IT'S RITE I WILL REWARD BRAINLIEST. Someone who works in quality assurance would spend their days meeting with customers and convincing them to buy the company’s products.
A.
True
B.
False
Answer: True
Explanation:
Quality assurance is assuring the customer that the product will work and that they will even offer a warranty if it some how breaks for free.
Answer:
True
Explanation:
Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3 is 1,100 units and of Product N0 is 400 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product R3 1,100 10.0 11,000 Product N0 400 5.0 2,000 Total direct labor-hours 13,000 The direct labor rate is $20.60 per DLH. The direct materials cost per unit is $211.00 for Product R3 and $287.00 for Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product R3 Product N0 Total Labor-related DLHs $ 40,636 11,000 2,000 13,000 Production orders orders 65,880 1,200 400 1,600 Order size MHs 433,075 3,900 3,700 7,600 $ 539,591 The unit product cost of Product R3 under activity-based costing is closest to
Answer:
$695.24 per unit
Explanation:
Calculation to determine what The unit product cost of Product R3 under activity-based costing is closest to
First step is to Calculate Activity rates
Activity Cost Pool Activity driver Overhead Cost (A) Expected Activity (B) Activity rate (A/B)
Labor related Number of DLH $ 40,636÷13,000 = 3.13 Per DLH
Production orders Number of Order 65,880÷ 1,600= 41.18 Per Order
Order size Number of MH 433,075÷ 7,600 = 56.98 Per MH
Second step is to calculate the Cost assigned to Product R3
Cost assigned to Product R3
Activity name Activity Rates Activity ABC Cost
(A) (B) (A x B)
Labor related 3.13 * 11,000 =$34,430
Production orders 41.18* 1,200=$49,416
Order size 56.98*3,900= $222,222
Total Overheads assigned $306,068
($34,430+$49,416+$222,222)
Production 1,100
Overhead cost per unit $278.24
Product R3
Direct material $211
Direct labor (10x $20.60 per DLH) $206
Overheads $278.24
Total Cost per unit $695.24
($211+$206+$278.24)
Therefore The unit product cost of Product R3 under activity-based costing is closest to $695.24 per unit
Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) 60,000 Standard direct labor hours allowed (SQ) 62,500 Total payroll for direct labor $ 900,000 Direct labor efficiency variance $ 35,000 The standard direct labor rate per hour (SP) for February (rounded to two decimal places) was:
Answer:
$14.4 per hour
Explanation:
Given the above information, the standard direct labor rate per hour
is computed as
Standard direct labor rate per hour
= Total standard direct labor cost / Total standard direct labor hours worked
= (SP × SQ) / SQ
= $900,000 / 62,500
= $14.4 per hour
Therefore, the standard direct labor rate per hour is $14.4
Coastal Bank uses activity-based costing to determine the cost of servicing customers. There are three activity pools: teller transaction processing ($2.80 per teller transaction), check processing ($0.25 per canceled check), and ATM transaction processing ($0.20 per ATM transaction). Jacki Marshall had 4 teller transactions, 12 canceled checks, and 9 ATM transactions during the month. What is the total monthly activity-based cost for Jacki Marshall during the month?a.$16.00b.$116.80c.$43.00d.$14.38
Answer:Allocated MOH= $16
Explanation:
Giving the following information:
teller transaction processing ($2.80 per teller transaction)
check processing ($0.25 per canceled check)
ATM transaction processing ($0.20 per ATM transaction).
To allocate overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2.8*4 + 0.25*12 + 0.2*9
Allocated MOH= $16
what is the main purpose of networking ?
Partners Cantor and Dickens have capital balances in a partnership of $153000 and $241000, respectively. They agree to share profits and losses as follows: Cantor Dickens As salaries $39100 $49000 As interest on capital at the beginning of the year 10% 10% Remaining profits or losses 50% 50% If net loss for the year was $8100, what will be the allocation to Dickens
Answer: $69,050
Explanation:
Net loss would imply that the salaries and interest on capital have already been deducted from income thus leaving the partners with a net loss.
Dicken's allocation would be:
= Salary + Interest on capital + share of profit
= 49,000 + (10% * 241,000) + (50% * -8,100)
= 49,000 + 24,100 - 4,050
= $69,050
QUESTION 11
A(n) is a union that consists of many local unions in a particular industry, skilled trade, or geographic area and thus represents workers throughout an
entire
country.
O national union
union conglomerate
O federated union
unionized association
Answer: National Union
Explanation:
Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing. 2019 2020 2021 Sales revenue $290,990 $ 361992 $406,460 Sales returns and allowances (11,310) (13,570) Net sales 279680 348,422 Beginning inventory 18,810 30,350 Ending inventory 30350 291870 Purchases 11540 261,520 296,357 Purchase returns and allowances (4,790) (8,210) (10,760) Freight-in 8,610 9,340 13,020 Cost of goods sold (231,970) (293000) (292,188) Gross profit on sales 47,710 85,860 91,540
Incomplete question. However, I determined the missing amounts for each tabulation, and stated them below:
Explanation:
Sales revenue: 2014= $360,820.Sales returns and allowances: 2015= 20,740.Net sales: 2013= 282970, 2015= 393,440.Beginning inventory: 2015= 42,010.Ending inventory: 2013= 33,560, 2014= 42,010, 2015= 47,870.Suppose Jean-Luc earns ten dollars for time spent in the labor market or can produce a meal worth five dollars for an hour of cooking. On the other hand, suppose Beverly earns fifteen dollars for time spent in the labor market or can produce a meal also worth fifteen dollars for an hour of cooking. This implies that a) Jean-Luc is not as good (not as efficient) as Beverly in both activities. b) Beverly has absolute advantage in both activities. c) the opportunity cost of a home-cooked meal is lower when Beverly produces it than when Jean-Luc does. d) all of the above are correct.
Answer:
b) Beverly has absolute advantage in both activities.
Explanation:
Absolute advantage is defined as the ability of an entity to produce more output given the same resources as other entities.
It shows superior production capacity of one entity over another.
In the given scenario Jean-Luc earns ten dollars for time spent in the labor market or can produce a meal worth five dollars for an hour of cooking. On the other hand, suppose Beverly earns fifteen dollars for time spent in the labor market or can produce a meal also worth fifteen dollars for an hour of cooking.
For both time spent in the labour market and in home cooking Beverly outperforms Jean-Luc so she has absolute advantage in bother activities.
Kiner Co. computed an overhead rate for machining costs ($400000) of $5 per machine hour. Machining costs are driven by machine hours. If computed based on direct labor hours, the overhead rate for machining costs would be $10 per direct labor hour. The company produces two products, Cape and Chap. Cape requires 50400 machine hours and 20000 direct labor hours, while Chap requires 29600 machine hours and 30000 direct labor hours. Using activity-based costing, machining costs assigned to each product is:_______.
Cape Chap
a. $750000 $250000
b. $252000 $148000
c. $216615 $183385
d. $200000 $300000
Answer:
b. $252000 $148000
Explanation:
Total OH using MC Hrs = $400000
Mch Hr OH Rate = $5 per Mc Hr
No of Mc Hrs = $400000/5 = 80,000 Mc Hrs
Cape uses 50400 Mc Hrs. So Mc OH = 50400*$5 = $252,000
Chap uses 29600 Mc Hrs. So Mc OH = 29600*$5 = $148,000
For the current year ($ in millions), Universal Corp. had $80 in pretax accounting income. This included warranty expense of $7 and $20 in depreciation expense. Two million of warranty costs were incurred, and depreciation deductions in the tax return amounted to $30. In the absence of other temporary or permanent differences, what was Universal's income tax payable currently, assuming a tax rate of 25%
Answer:
$18.75
Explanation:
Calculation to determine the Universal's income tax payable currently
Accounting income $80
Depreciation ($30 - 20) (10)
Warranty expense ($7 - 2) 5
Taxable income $75
($80-$10+$5)
Enacted tax rate 25%
Tax payable currently $18.75
(25%*$75)
Therefore the Universal's income tax payable currently will be $18.75
Gomez runs a small pottery firm. He hires one helper at $11,000 per year, pays annual rent of $6,000 for his shop, and spends $22,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $4,500 per year if alternatively invested. He has been offered $17,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,500 per year. Total annual revenue from pottery sales is $70,000. Calculate the accounting profit and the economic profit for Gomez’s pottery firm.
Answer:
$31000
$6000
Explanation:
Accounting profit= total revenue - explicit cost
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
explicit cost = $11,000 + $22,000 + $6,000 = $39,000
Accounting profit = $70,000 - $39,000 = $31,000
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
It includes the amount he could have earned if he invested is money , his entrepreneur talent and salary he could have earned
$31,000 - $4500 - $17,000 - $3,500 = $6000
Gomez’s pottery firm's accounting profit is $31,000 while the economic profit is $6,000
To calculate the accounting profit for Gomez's pottery firm, one must subtract all the explicit costs (i.e., actual monetary expenses) from the total revenue.
Total Revenue = $70,000
[tex]~$Explicit Costs = Helper's salary + Rent + Materials[/tex]
[tex]~$Explicit Costs = \$11,000 + \$6,000 + \$22,000[/tex]
[tex]~$Explicit Costs = \$39,000[/tex]
[tex]~$Accounting Profit = Total Revenue - Explicit Costs[/tex]
[tex]~$Accounting Profit = \$70,000 - \$39,000[/tex]
[tex]Accounting Profit = \$31,000[/tex]
To calculate the economic profit, one needs to consider both explicit costs and implicit costs (i.e., opportunity costs).
[tex]~$Implicit Costs = Opportunity Cost of Equipment + Opportunity Cost of Working for Competitor + Entrepreneurial Talents[/tex]
Opportunity Cost of Equipment = $4,500 (income that could be earned alternatively)
Opportunity Cost of Working for Competitor = $17,000 (annual salary offered)
Entrepreneurial Talents = $3,500
[tex]~$Economic Profit = Accounting Profit - Implicit Costs[/tex]
[tex]~$Implicit Costs = \$4,500 + \$17,000 + \$3,500[/tex]
[tex]~$Implicit Costs = \$25,000[/tex]
[tex]~$Economic Profit = \$31,000 - \$25,000[/tex]
Thus, the accounting profit for Gomez's pottery firm is $31,000, and the economic profit is $6,000, the economic profit considers opportunity costs, providing a more comprehensive view of the firm's profitability.
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For each of the following scenarios, determine the effect on aggregate supply. a. There is an unexpected decrease in oil prices. This causes: multiple choice 1 a decrease in aggregate supply, shifting the aggregate supply curve to the left. an increase in aggregate supply, shifting the aggregate supply curve to the right. a movement along the aggregate supply curve to the right, indicating an increase in the quantity of real GDP supplied. a movement along the aggregate supply curve to the left, indicating a decrease in the quantity of real GDP supplied. b. The government increases the amount that all producers are required to contribute to health insurance coverage. This causes: multiple choice 2 a movement along the aggregate supply curve to the right, indicating an increase in the quantity of real GDP supplied. a decrease in aggregate supply, shifting the aggregate supply curve to the left. a movement along the aggregate supply curve to the left, indicating a decrease in the quantity of real GDP supplied. an increase in aggregate supply, shifting the aggregate supply curve to the right.
Answer:
a. an increase in aggregate supply, shifting the aggregate supply curve to the right.
b. a decrease in aggregate supply, shifting the aggregate supply curve to the left.
Explanation:
If there is a decrease in oil price, it would mean that producers are able to source oil at a cheaper rate. Oil is a major contributor to world economy whether indirectly or directly and if it is cheaper to source, production would increase as it would be cheaper to do so. Aggregate supply would therefore increase and the curve will be shifted to the right.
If the government increases the amount that all producers should contribute to health insurance, it would mean that labor is now more expensive. Labor is a major input in production so increasing its cost would make production more expensive. Producers would therefore hire less people and produce less to maintain profitability. Aggregate supply will therefore decrease and shift left.
Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 39%. The T-bill rate is 6%A client prefers to invest in your portfolio a proportion (y) that maximizes the expected return on the overall portfolio subject to the constraint that the overall portfolio's standard deviation will not exceed 30%. a. What is the investment proportion, y
Answer:
y = 0.76923076923 or 76.923076923% rounded off to 76.92%
So, 76.92% of the portfolio should be invested in risky portfolio.
Explanation:
The portfolio standard deviation for a portfolio consisting of two securities with one of them being the risk free security is calculated by multiplying the standard deviation of the risky security by the weightage of investment in the risky security as a proportion of the overall investment in portfolio. The formula can be written as follows,
Portfolio STDEV = Weight of Risky Asset * STDEV of risky asset
30% = y * 39%
30% / 39% = y
y = 0.76923076923 or 76.923076923% rounded off to 76.92%
Bonita Corporation has the following cost records for June 2020. Indirect factory labor $5,540 Factory utilities $420 Direct materials used 22,490 Depreciation, factory equipment 1,760 Work in process, 6/1/20 3,340 Direct labor 41,640 Work in process, 6/30/20 4,470 Maintenance, factory equipment 1,890 Finished goods, 6/1/20 5,620 Indirect materials 2,530 Finished goods, 6/30/20 8,410 Factory manager’s salary 3,300 Prepare a cost of goods manufactured schedule for June 2020. BONITA CORPORATION Cost of Goods Manufactured Schedule
Answer:
See below
Explanation:
Given the above information, to calculate the cost of manufactured goods, we need to use the formula below;
Cost of goods manufactured = Beginning work in progress + direct materials of the period + direct labor + manufactured overhead - ending work in progress
Beginning work in process = $3,340
Direct materials = Beginning inventory + Purchase - ending inventory
= $22,490
Direct labor = $41,640
Manufactured overhead = (Indirect factory labor + Factory utilities + depreciation, factory equipment + Maintenance , factory equipment + indirect materials) = $5,540 + $420 + $1,760 + $1,890 + $2,530 = $12,140
Ending work in process = $4,470
Therefore,
Cost of goods manufactured = $3,340 + $22,490 + $41,640 + $12,140 - $4,470
Cost of goods manufactured = $75,140
Sales revenue is forecasted to grow by 13% next year, forecasted net income is expected to be $30,000, and all current assets and current liabilities vary proportionally with sales. If $45,000 worth of net noncurrent assets are required to be purchased next year, what is the external financing needed
Answer:
17,320.5
Explanation:
Calculation to determine the external financing needed
Using this formula
External Financing Needed = Increase in current assets+Increase in non current assets-Increase in spontaneous liabilities -Retained earnings
External Financing Needed = (42,500*13%)+45,000-(24,650*13%)-30000
External Financing Needed = 5,525+45,000-3,204.5-30,000
External Financing Needed =17,320.5
Therefore the external financing needed will be
17,320.5
Each of the following firms benefits from barriers to entry in its industry. Indicate whether each of the barriers is natural or government created.
a. A small-town bar that is the only establishment in the county licensed to serve liquor.
b. A diamond company that owns nearly all of the world's diamond mines
c. A pharmaceutical company receives a patent for a new cancer-fighting drug
d. A soda company that spends over $3 billion on advertising every year
e. A waste-treatment plant that cost a lot to build even though it costs only two cents to treat each gallon of waste
Answer:
Natural:
b.A diamond company that owns nearly all of the world's diamond mines.
d.A soda company that spends over $3 billion on advertising every year.
e.A waste-treatment plant that cost a lot to build even though it costs only two cents to treat each gallon of waste.
Government
a.A small-town bar that is the only establishment in the county licensed to serve liquor.
c. A pharmaceutical company receives a patent for a new cancer-fighting drug.
Explanation:
Government barriers are licenses or patents that prevent future firms from entering, natural is everything else.
the dude above is right
Identify the reasons why the quantity demanded of a product increases as the price of that product decreases. a. as the price declines, the real income of the consumer increases b. as the price of product A declines, it makes it more attractive than product B c. as the price declines, the consumer will always demand more on each successive price reduction d. a and b e. a and c
Answer:
D) A and B
Explanation:
a. as the price declines, the real income of the consumer increases
b. as the price of product A declines, it makes it more attractive than product B
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