Answers
Please find diagram for question attached
Question options:
a.
overvalued; surplus of dollars
b.
undervalued; shortage of pesos
c.
overvalued; shortage of dollars
d.
undervalued; surplus of pesos
Answer:
Overvalued and there is a shortage of dollars
Explanation:
An increase in dollar price to buy peso means that dollar here is overvalued as it is above the equilibrium price(E2),and therefore it would be expensive to buy goods that are sold for a certain amount of dollars or in dollar currency with the Mexican pesos. This is because the fixed exchange rate system tries to ensure smooth and inexpensive trade between countries as it has to do with currency trading barriers by pegging a currency to another(in this case dollars) but here the dollar price increase for peso makes it more expensive to buy dollar products with pesos. Also this is caused here by the shortage of dollars.
Related Questions
The_____ will solve for the expected return measured in an investor’s domestic currency for a foreign asset denominated its own currency.
Answers
Answer:
The Intertemporal Capital Asset Pricing Model (ICAPM)
Explanation:
The Intertemporal Capital Asset Pricing Model (ICAPM) is an useful way to calculate investor returns.
This method which involves predicting model allows an investor to measure their expected return in his own domestic currency. In a sense, It tells the investors the risk to profit gain of an investment.
If two firms producing substitutes agree to fix prices, then their prices will 1.____________ . If two firms producing complements agree to fix prices, then their prices will 2.____________ .
Answers
Answer: increase; decrease.
Explanation:
Price fixing is a situation that occurs when two companies come together and form an agreement whereby the price of a particular goods or services will not be sold below that particular price.
When two firms producing substitutes agree to fix prices, then their prices will increase and when two firms that are producing complements fix prices, then their prices will reduce.
How could managers use increased worker flexibility and diligence to increase the competitiveness of their manufacturing sites
Answers
Explanation:
In order to increase the flexibility and diligence of workers in order to increase the competitiveness of their manufacturing sites, it is ideal for management to offer working conditions that allow employees greater benefits, such as greater mobility, with a layout that includes the correct flow between people, products and materials.
It is also ideal to implement technologies that reduce the bureaucracy both at work and facilitate communication and carrying out tasks.
Mobility also includes remote work using technology.
These are strategies that help to make work more flexible and, consequently, increase innovation in work and worker motivation.
The correct way in which the flexibility of the workers in an organization can be increased is by adapting to suitable principles of business management as per the size and scale of the business.
This will also help the manager to increase the competitiveness in the market and also beat the need for optimum level of production in the organization.
Principles of Business Management. The principles of business management as given by economist Henry Fayol are a great source for how the business can be run efficiently and effectively using the resources available.There can be chain level management that can be followed to achieve specialization of work and bring in additional capital or workforce to divide the work uniformly. Manufacturing can also be increased by doing departmentalization in management to save up costs and achieve optimum utilization of resources.Hence, a manager may adapt to different principles of management to increase competitiveness and effectiveness in the level of manufacturing.
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Equivalent Units and Cost per Equivalent Unit-Weighted-Average Method [LO5-2, LO5-3]
Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow:
Units Materials Labor Overhead
Work in process inventory, beginning 58,000 $ 56,200 19,700 $24,100
Units started in process 549,000
Units transferred out 570,000
Work in process inventory, ending 37,000
Cost added during the month $ 743,270 $ 243,460 $297,540
The beginning work in process inventory was 80% complete with respect to materials and 65% complete with respect to labor and overhead. The ending work in process inventory was 60% complete with respect to materials and 40 % complete with respect to labor and overhead.
Required:
1. Compute the first department's equivalent units of production for materials, labor, and overhead for the month.
2. Determine the first department's cost per equivalent unit for materials, labor, and overhead for the month. (Round your answers to 2 decimal places.)
Overhead Labor Materials
1. Equivalent units of production
2. Cost per equivalent unit
Answers
Answer:
Material Labour Overhead
1) Total equivalent unit 607,000 584,800 584,800
2) Cost per equivalent unit (a/b) 1.32 0.45 0.55
Explanation:
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Cost per equivalent unit = cost / total equivalent units
1) Equivalent units of production
Material Labour Overhead
Unit EU EU EU
Transferred out 570,000 570,000 570,000 570,000
Work in progress 37,000 22,200 14,800 14,800
Total equivalent unit 607,000 584,800 584,800
% of work done on WIP 60% 40% 40%
Note the equivalent unit for WIP is computed by multiplying the degree of work done (in %) by the units of WIP for each of the element of cost.
For example, the EU of material for WIP = 60% × 37,000 = 22,200
2. Cost per equivalent unit
$ $ $
Cost brought forward 56,200 19,700 24,100
Cost incurred and added 743,270 243,460 297,540
Total cost (a) 799,470 263,160 321,640
Total equivalent unit(b) 607,000 584,800 584,800
Cost per equivalent unit (a/b) 1.32 0.45 0.55
Cost per equivalent unit = Total cost / total equivalent units
Windy Inc. is considering expanding on some land that it currently owns. The initial cost of the land was $300,000 and it is currently valued at $251,900. The company has some unused equipment that it currently owns valued at $30,000 that could be used for this project if $15,000 is spent for equipment modifications. What is the amount of the initial cash flow for this expansion project
Answers
Answer:
The amount of the initial cash flow for this expansion project is $15,000.
Explanation:
It is important to remember that Sunk costs are not relevant for decision making.
Sunk Cost are costs already incurred as a results of past decisions.
The Cost of Land of $300,000 and the Cost of Equipment Valued at $30,000 are both Sunk costs and are not relevant for this expansion project.
The Relevant Costs (Initial Cash Flow) is $15,000 for modifications.
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow:
Mercon Wurcon
Direct materials cost per unit $ 9.00 $ 7.00
Direct labor cost per unit $15.00 $ 17.00
Direct labor-hours per unit 0.40 4.80
Number of units produced 4,000 8,000
These products are customized to some degree for specific customers.
Required:
1. The company's manufacturing overhead costs for the year are expected to be $1,600,000. Using the company's conventional costing system, compute the unit product costs for the two products.
2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year:
Mercon Wurcon Total
Engineering design time (in hours) 8,000 8,000 16,000
Compute the unit product costs for the two products using the proposed ABC system.
Answers
Answer:
Instructions are below.
Explanation:
Giving the following information:
Mercon Wurcon
Direct materials cost per unit $ 9.00 $ 7.00
Direct labor cost per unit $15.00 $ 17.00
Direct labor-hours per unit 0.40 4.80
Number of units produced 4,000 8,000
A. First, we need to calculate the predetermined overhead rate:
Total direct labor hours= 0.4*4,000 + 4.8*8,000= 40,000
Overhead= 1,600,000
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,600,000/40,000
Predetermined manufacturing overhead rate= $40 per direct labor hour
Now, we can determine the unitary product cost.
Mercon= 9 + 15 + 40*0.4= $37
Wurcon= 7 + 17 + 4.8*40= $216
B.
Mercon Wurcon Total
Engineering design time (in hours) 8,000 8,000 16,000
Now, we have two different allocation rates:
Direct-labor hours= 800,000/40,000= $20 per direct labor hour
Engineer desing= 800,000/16,000= $50 per engineer desing hour
Finally, we can determine the unitary product cost:
Engineer design per unit:
Mercon= 8,000/4,000= 2
Wurcon= 8,000/8,000= 1
Mercon= 9 + 15 + (20*0.4 + 50*2) = $132
Wurcon= 7 + 17 + (20*4.8 + 50*1)= $170
"Jaymes Corporation produces high-performance rotors. It expects to produce 78,000 rotors in the coming year. It has invested $12,566,667 to produce rotors. The company has a required return on investment of 18%. What is its ROI per unit
Answers
Answer:
$29
Explanation:
The computation of return on investment per unit is shown below:-
Return on investment = Total Investment × Required Rate on Investment
= $12,566,667 × 18%
= $2,262,000.06
Return in investment per unit = Required ROI ÷ Total Rotors
= $2,262,000.06 ÷ 78,000
= $29
Therefore for computing the return on investment we simply applied the above formula.
Make a list of at least three items that are important to double check before submitting a loan application to underwriting. List at least two things you would be sure to tell a borrower in preparation for closing. List at least three calculations that are typically used during the course of a mortgage loan transaction.
Answers
Answer:
Please see answers below.
Explanation:
A. Three important Items to double check before submitting a loan application to underwriting.
• Completeness of data : One has to be sure that all important details are captured hence none is left out. It means that there are no missing information on the application.
• Calculations performed accurately: This means that calculations such as borrower's income, qualifying ratios are calculated accurately and also double checked for the purpose of the loan underwriting.
• Documentations required by the loan programme. All Documentations required by the loan programme must be double checked before submitting a loan application to underwriting.
B. List at least two things you would be sure to tell a borrower in preparation for closing
• I will seek clarity in terms of the money borrower would be bringing to the closing table.
• The date,time,venue of closing are essential for the closing hence will be communicated to the borrower. Also, there are no right or wrong answers that may be asked or given by the borrower during the closing.
C. List at least three calculations that are typically used during the course of mortgage loan transaction.
• Income calculation
• Front end and back end ratio (DTI ratio)
• Monthly payment.
You would like to have $50,000 in 15 years. To accumulate this amount you plan to deposit each year an equal sum in the bank, which will earn 7% interest annually. Your first payment will be made at the end of the year.
Required:
A) How much must you deposit annually to accumulate this amount?
B) If you decide to make a lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be?
C) At the end of five years, you will receive $10,000 and deposit this in the bank towards your goal of $50,000 at the end of 15 years. In addition to this deposit, how much must you deposit in equal annual deposits in order to reach your goal?
Answers
Answer:
ah
Explanation:
._.
Following are selected transactions for Vitalo Company.
Nov. 1 Accepted a $16,000, 180-day, 5% note from Kelly White in granting a time extension on her past-due account receivable.
Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note.
Apr. 30 White honored her note when presented for payment.
Calculate the interest amounts at December 31st and April 30th and use those calculated values to prepare your journal entries.
Answers
Answer and Explanation:
The Computation of interest amount is shown below:-
Particulars Total through Through maturity Through maturity
Maturity Nov. 1 Jan 1
Principal $16,000 $16,000 $16,000
Rate 5% 5% 5%
Time 180 ÷ 360 60 ÷ 360 120 ÷ 360
Total interest $400 $133 $267
2. The Journal entries are shown below:-
a. Notes receivable Dr, $16,000
To accounts receivable $16,000
(Being issuance of notes is recorded)
b. Interest receivable Dr, $133
To Interest revenue $133
(Being interest revenue is recorded)
c. Cash Dr, $16,400
To Notes receivable $16,000
To Interest revenue $267
To Interest receivable $133
(Being cash received is recorded)
On April 2 a corporation purchased for cash 7,000 shares of its own $11 par common stock at $26 per share. It sold 4,000 of the treasury shares at $29 per share on June 10. The remaining 3000 shares were sold on November 10 for $22 per share. a. Journalize the entries to record the purchase (treasury stock is recorded at cost). Apr. 2 b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank. Jun. 10 Nov. 10
Answers
Answer:
A.
Dr Treasury stock 182,000
Cr Cash 182,000
B.
Jun 10
Dr Cash 116,000
Cr Treasury stock 104,000
Cr Paid in capital from treasury stock 12,000
Nov 10
Dr Cash 66,000
Dr Paid in capital from treasury stock 12,000
Cr Treasury stock 78,000
Explanation:
a. Preparation of the Journal entry to record the purchase
Dr Treasury stock 182,000
Cr Cash 182,000
(7,000*26)
b. Preparation of the Journal entries to record the sale of the stock
Jun 10
Dr Cash (4000*29) 116,000
Cr Treasury stock (4000*26) 104,000
Cr Paid in capital from treasury stock 12,000(116,000-104,000)
Nov 10
Dr Cash (3000*22) 66,000
Dr Paid in capital from treasury stock 12,000
Cr Treasury stock (3000*26) 78,000
The bonds of CYTK, Inc. carry a 12% annual coupon, have a $1,000 face value, and mature in 5 years. Bonds of equivalent risk yield 9%. What is the market value of CYTK bonds
Answers
Answer:
The market value of CYTK bonds is $1,116.69.
Explanation:
This can be calculated as follows:
Annual coupon = $1000 × 12% = $120
Annual coupon discount factor based ordinary annuity = ((1-(1/(1 + r))^n)/r)
Where;
r = rate of return of equivalent bond = 9%, or 0.09
n = number of years to maturity = 5
Therefore, we have
Annual coupon discount factor = ((1-(1/(1.09))^5)/0.09) = 3.88965126335172
PV of coupon = $120 × 3.88965126335172 = $466.76
PV of the face value of the bond = Face value ÷ (1 + r)^n = 1,000 ÷ (1 + 0.09)^5 = $649.93
Therefore, we have:
Market value of CYTK bonds = PV of coupon + PV of the face value of the bond = $466.76 + $649.93 = $1,116.69
Therefore, the market value of CYTK bonds is $1,116.69.
If portfolio weights are positive: 1) Can the return on a portfolio ever be less than the smallest return on an individual security in the portfolio? 2) Can the variance of a portfolio ever be less than the smallest variance of an individual security in the portfolio? A) 1) yes; 2) no B) 1) no; 2) yes C) 1) no; 2) no D) 1) maybe; 2) no E) 1) yes; 2) yes
Answers
Answer: B) 1) no; 2) yes
Explanation:
The return on a portfolio when the portfolio weights are positive will be between the highest return and the lowest return. It cannot exceed these limits.
With Variance however, the variance of a portfolio can be less than the smallest variance of an individual security in the portfolio because in the calculation of portfolio variance, the correlation is used in the calculation (refer to formula below). As a result, if the securities are negatively correlated, it could lead to a lower value than the smallest variance in the portfolio.
Variance of Portfolio = (w(1)^2 * o(1)^2) + (w(2)^2 * o(2)^2) + (2 * (w(1)*o(1)*w(2)*o(2)*q(1,2)))
Highlighted portion is the correlation. If this is negative, Portfolio variance will reduce to a point lower than the lowest individual variance.
Based on the information given, the correct option will be B. 1) no; 2) yes
It should be noted that the return on a portfolio when the portfolio weights are positive will be calculated as the value that is between the highest return and the lowest return.
In such a case, the return on a portfolio can never be less than the smallest return on the individual security in the portfolio. Also, the variance of a portfolio can be less than the smallest variance of the individual security in the portfolio.
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Crane Company has gathered the following information.
Units in beginning work in process 0
Units started into production37,300
Units in ending work in process8,200
Percent complete in ending work in process:
Conversion costs40%
Materials100%
Costs incurred:
Direct materials$78,330
Direct labor$66,500
Overhead$105,114
1. Compute equivalent units of production for materials and for conversion costs.
Materials
Conversion Costs
The equivalent units of production
2. Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.)
Materials
Conversion Costs
Unit costs
$
$
3. Show the assignment of costs to units transferred out and in process.
Units transferred out $
Units in ending work in process
Answers
Answer:
1. Compute equivalent units of production for materials and for conversion costs
Equivalent units of Materials: (Units in Beginning Work in process + Units started into production - Units in ending work in process) + Units in ending work in process
= (0 + 37,300 - 8,200) + 8,200
= 37,300
Equivalent units of conversion costs : (Units in Beginning Work in process + Units started into production - Units in ending work in process) + (Units in ending work in process * 40%)
= (0 + 37,300 - 8,200) + (8,200 * 40%)
=29,100 + 3,280
= 32,380
2. Determine the unit costs of production
Unit costs of materials = Direct materials / Equivalent units of Materials
= $78,330 / 37,300
= $2.1
Unit costs of conversion costs = (Direct labor + Overhead) / Equivalent units of conversion costs
= ($66,500 + $105,114) / 32,380
= $171,614 / 32,380
= $5.3
3. Show the assignment of costs to units transferred out and in process
Units ending work in process = Materials + Conversion costs
where, Materials = 8,200 * $2.1 = $8,202
Conversion costs = 3,281 * $5.3 = $17,389
( 8,200 * 40%)
Units ending work in process = $8,202 + $17,389
= $25,591
Intra-Spect Mining Co. acquired mineral rights for $153,000,000. The mineral deposit is estimated at 90,000,000 tons. During the current year, 23,400,000 tons were mined and sold.
Required:
a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places.
b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Answers
Answer:
a. Determine the amount of depletion expense for the current year.
$39,780,000
b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Dr Depletion expense 39,780,000
Cr Accumulated depletion: Mine 39,780,000
Explanation:
depletion expense per ton mined = $153,000,000 / 90,000,000 = $1.70 per ton
depletion expense for current year = $1.70 x 23,400,000 = $39,780,000
Depletion expense is similar to depreciation expense since the carrying value of the asset decreases as minerals are being mined.
Game theory is useful for understanding oligopoly behavior because: there are so many firms in an oligopoly that all are price takers. firms must differentiate their products if they are to remain in business. firms recognize that because there are only a few firms mutual interdependence is important. without it firms would not be able to maintain cartel agreements. it allows firms to develop greater monopoly power.
Answers
Answer:
firms recognize that because there are only a few firms mutual interdependence is important.
Explanation:
Game theory is useful for understanding oligopoly behavior because firms recognize that because there are only a few firms mutual interdependence is important.
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, under the game theory, when firms makes a decision about their business, it is expected that they consider how the other firms would react to such decisions.
The Atlantic Company sells a product for $150 per unit. The variable cost is $60 per unit, and fixed costs are $270,000. What is the break-even point in sales units?_____________________________________ What is the break-even points in sales units if the company desires a target profit of $36,000?
Answers
Answer:
The break even units are 3000 units and when it desires the profit of $36000 then sales unit is 3400 units.
Explanation:
The selling price of a product (SP) = $150 per unit.
Variable cost (VC) = $60 per unit.
Fixed cost of the company = $270000
Break-even units can be calculated by dividing the fixed cost from the difference in selling price and variable cost.
Break even Units = (fixed cost) / ( SP – VC)
= 270000 / (150-60)
= 3000 units.
Break-even units when a company desires a profit of $36000.
Desired units for sales = (Fixed Cost + Profit)/ Contribution per unit
= (270,000 + 36,000) / (150 - 60)
= 3,400 units
Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $4 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F. Product F can be sold immediately for $4 per liter or processed further into Product G at an additional cost of $3 per liter. Product G can then be sold for $9 per liter.
a. Determine whether Product F should be sold or processed further into Product G.
b. Calculate the net advantage (disadvantage) of further processing.
c. Use a negative sign with your answer to indicate a net disadvantage (if applicable).
Answers
Answer:
a) Product G should be produced and sold
b) Net financial advantage $80
Explanation:
A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .
$
Revenue after split-off point
($9× 40 litres) 360
Revenue at the slit of point
($4 × 40) (160)
Additional income from further processing 200
Further processing cost ($3× 40) (120)
Incremental income from further processing 80
Incremental income from further processing = $80
a) The product F should be processed further and sold as product G. Doing so would increase the net income by $80.
b) Net advantage $80
Your firm has total sales of $22,980, costs of $14,715, and depreciation of $6,045. The tax rate is 34 percent. There are no interest expenses or other income. What is the operating cash flow?
Answers
Answer:
Thus, Operating cash flow for company is $7,510.20.
Explanation:
Total Sales = $22,980
Cost of goods sold = $14,715
Depreciation = $6,045
Profit before tax = Total Sales – Cost of goods sold – Depreciation
= $22,980 – $14,715 – $6,045
=$2,220
Profit before tax is $2,220
Tax rate = 34%
Net profit = profit before tax × (1 – 34%)
= $1,465.20
Net profit for company is $1,465.20.
Operating cash flow = Net profit + Depreciation
= $1,465.20 + $6,045
= $7,510.20
Thus, Operating cash flow for company is $7,510.20.
If people lost confidence in the government what kind of money would have the least value?
Answers
If people lost confidence in the government which would have the least value?
a) fiat money
b) representative money
c) commodity money
d) gold standard
Answer:
Fiat money
Explanation:
Fiat money is a type of money or currency that is used as money because it is issued and backed by the government but it does not have any intrinsic value.
It has no intrinsic value which means that it does not have any value of its own and it is maintained by the government. Therefore, If people lost confidence in the government the kind of money that would have the least value is fiat money
Abburi Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $45,900 and if direct materials are $27,200, the manufacturing overhead is:
Answers
Answer:
Manufacturing Overheads = $56100
Explanation:
The conversion cost defined simply is the cost involved in turning the raw material or direct material into the finished products. Conversion cost is calculated by adding the direct labor cost and the manufacturing overhead cost.
Conversion cost = Direct labor + Manufacturing overheads
As we know that the manufacturing overhead is 55% of conversion cost, then the direct labor cost is 45% of conversion cost.
If 45% of conversion cost is $45900, then the total conversion cost will be,
Conversion cost = 45900 * 100/45 = $102000
Manufacturing Overheads = 102000 - 45900 = $56100
Wolverine Company financial statements included the effects of these errors: Reported Net Income for Year 1 was $20,000. Reported Net Income for Year 2 was $18,000. Indicate the error in 12/31/2 Retained Earnings:
Answers
Answer:
Net income year 2 = $21,300
Explanation:
I looked for the missing information and found this:
Year Depreciation overstated Prepaid expense omitted
1 $2,500 $2,000
2 $4,000 $2,700
If your question doesn't include the same values, just adjust the answer.
Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $2,000 - $2,700 = $21,300
James just received an $8,000 inheritance check from the estate of his deceased rich uncle. James wants to set aside enough money to pay for a trip in five years. If the trip is expected to cost $5,000, how much of the $8,000 must James deposit now if the rate of return is 12% per year in order to have the $5,000 in five years
Answers
Answer:
$2831.13
Explanation:
The computation of the present value of 5,000 in five years is shown below:-
Present Value of 5,000 in five years = Expected cost ÷ (1 + Rate of return)^Number of years
= $5,000 ÷ (1 + 12%)^5
= $
5,000 ÷ (1.12)^5
= $2831.13
Therefore for computing the present value of 5,000 in five years we simply applied the above formula.
A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under:________
a. operating activities
b. investing activities
c. noncash investing and financing activities
d. financing activities
Answers
Answer:
b. investing activities
Explanation:
Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under investing activities.
Generally, investing activities comprises of purchasing physical assets, investing in securities and the sale of assets or securities associated with the company.
Hence, a company that purchases equipment for $32,000 cash should show the transaction on the statement of cash flows under investing activities.
During March, Pendergraph Corporation incurred $65,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $67,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:
Answers
Answer:
debit to Manufacturing Overhead of $65,000
Explanation:
Manufacturing overhead cost are those that are shared to different processes that do not contribute directly to product being manufactured.
For example raw materials is a direct contributor to goods, while labour is a overhead cost that indirectly contributed to the good.
On the given scenario it is the actual amount incurred that will be debited to the books of the company.
So there will be a debit to Manufacturing Overhead of $65,000
By automating its shop floor, your company expects to save $81,000 annually. If the automation costs $225,000, what is the payback period of the automation?
Answers
Answer:
2.78
Explanation:
Calculation for the payback period of the automation
Using this formula
Payback period = Automation cost/ Amount to saved annually
Let plug in the formula
Payback period =$225,000/$81,000
Payback period =2.78
Therefore the payback period of the automation will be 2.78
When a standalone organization is created and owned by two or more parent companies together, the strategic alliance is referred to as a(n) _____.
Answers
Answer:
Joint venture
Explanation:
A joint venture is one where two or more parties agree to pool their resources together to accomplish a particular goal.
Each participant shares in the profit, loss, and cost associated with the business.
However the venture an entity that is independent of the participant's other business interest.
So when a standalone organization is created and owned by two or more parent companies together, it is called a joint venture
"If the top two companies in the golf club industry merged, their new market share would equal 15% of the market. This industry's new HHI would be 995. According to the FTC's historical guidelines for mergers, would the FTC approve this merger
Answers
Answer:
Yes, the FTC would ignore the merger and allow it to go through.
Explanation:
here are the options to the question ;
O No, the FTC would probably challenge the merger
O Maybe. The FTC would scrutinize the merger and make a case-by-case decislon.
Yes, the FTC would ignore the merger and allow it to go through.
HHI is used to calculate market power.
if the HHI index is less than 1000 post merger, the merger would be allowed to go through.
If the HHI index is between 1000 - 1800 post merger and the change in HHI is more than 100 after the merger, The FTC would scrutinize the merger and make a case-by-case decislon.
If the HHI index is more than 1800 post merger and the change in HHI is more than or equal to 50, he FTC would probably challenge the merger
Black Friday, the day after Thanksgiving, is the largest shopping day of the year. Do the early shoppers, who often wait in line for hours in the cold to get doorbuster sale items, have elastic or inelastic demand?
Answers
Answer:
Early shoppers have elastic demand because of the quantity demanded. That changes significantly as the result of a price change. Elastic means ‘sensitive’. Which means shoppers are responding to Black Friday deals currently happening so they can buy products they/want/need at the prices they wish to spend.
Answer: I personally would say the shoppers who wait in line for hours have an elastic demand.
Explanation: The reason why they have an elastic demand is because an elastic demand means when an elastic product is defined as one where a change in the price of the product leads to a significant change in the demand for that product. Which the people waiting outside are buying the item due to the change in price.
se the following information for Jett Co. to answer the following question: 2015 2014 Sales 1,200 1,000 COGS 850 700 Operating Expenses 200 200 Income Taxes 30 35 Jett Co.'s gross profit, operating profit and net profit margins for 2015 are: A. 50.0%, 32.5%, 22.5% respectively. B. 29.2%, 12.5%, 10.0%, respectively. C. 27.0%, 11.0%, 10.5%, respectively. D. 21.5%, 17.5%, 12.0%, respectively.
Answers
Answer:
B. 29.2%, 12.5%, 10.0%
Explanation:
Gross Profit = Sales - Cost of goods sold / Sales
Gross Profit = $1,200 - $850 / $1,200
Gross Profit = $350 / $1,200
Gross Profit = 0.2917
Gross Profit = 29.17%
Operating profit = Sales - Cost of goods sold - Operating Expenses / Sales
Operating profit = $1,200 - $850 - $200 / $1,200
Operating profit = $150 / $1,200
Operating profit = 0.125
Operating profit = 12.5%
Net profit margin = Sales - Cost of goods sold - Income Taxes / Sales
Net profit margin= $1,200 - $850 - $200 - $30 / $1,200
Net profit margin $120 / $1,200
Net profit margin= 0.1
Net profit margin= 10%