Answer:
The amount of raw materials transferred to work in process is $98,000.
Explanation:
Given that, at the beginning of its business operations, Fortune Company had a raw material inventory of $ 16,000 and that, during the business year, it acquired another quantity of raw materials for $ 92,000, the total of raw materials in the company's stock had a total value of $ 108,000 (16,000 + 92,000).
Now, if at the end of the balance the value of the raw materials was $ 10,000, the amount of raw material that was incorporated into the production process was a value of $ 98,000 (108,000 - 10,000).
Ivanhoe Company sublet a portion of its warehouse for five years at an annual rental of $71100, beginning on May 1, 2020. The tenant, Barbara Jones, paid one year's rent in advance, which Ivanhoe recorded as a credit to Unearned Rent Revenue. Ivanhoe reports on a calendar-year basis. The adjustment on December 31, 2020 for Ivanhoe should be:________.
Answer and Explanation:
The adjustment should be as follows
Unearned Rent Revenue $47,400
To Rent Revenue $47,400
(Being recording of revenue earned is recorded)
Here unearned rent revenue is debited as it decreased the liabilities and the rent revenue is credited as it increased the revenue. Also liabilities and revenue contains the normal debit balance
The working is shown below:
= $71,100 × 8 months ÷ 12 months
= $47,400
The eight months are calculated from May 1 to December 31
Why is it important to know the cost of inspection in a particular areas of business organization?
Explanation:
Every regulated organization understands the need to implement a quality system. In fact, it’s a “shall” clause for all life sciences companies to ensure they are in compliance with industry regulations. The focus of any effective quality system is, and rightly so, all about ensuring patient safety. From there, as the organization matures, its people, processes and technology evolve from a compliance, to a correction, to a prevention mindset, eventually resulting in increased quality brand recognition and shareholder value.
In the real world, companies need to engage quality system processes, such corrective and preventive action (CAPA), as the lifeline to feed improvements through the change management processes into the product lifecycle, from design inputs to manufacturer and supplier outputs.
Defining the cost of quality
As we look at process and product improvements, quantifying the “quality” costs to the organization is defined as the Cost of Quality (COQ). Why quantify the quality data? The COQ categorizes these costs so the organization can see how moving from a quality assurance (control and correction) focus to a focus on prevention helps to reduce the cost of nonconformances.
The American Society of Quality (ASQ) uses the following formula to calculate the COQ:
Cost of Quality (COQ) = Cost or Poor Quality (COPQ) + Cost of Good Quality (COGQ)
The COPQ contains all the costs of nonconformances that are both internal and external to the organization; whereas, the COGQ contains the cost of quality conformance, including any costs associated with both appraisal and prevention.
Some examples would be:
COPQ – Internal Costs (defects occurring and managed within the organization)
Scrap, Rework, Re-inspection
COPQ – External Costs (defects that reach the consumer)
Adverse Event Reporting, Warranty, Corrections and Removals, Product Liability, loss of brand reputation
COGQ – Appraisal Costs (controls put in place by the organization)
Inspection (purchased, manufactured), Testing (acceptance, field), Quality Audits, Calibration
COGQ – Prevention Costs (activities to eliminate defects from ever occurring)
SPC (statistical process control), Quality Planning, Quality Training, investment in quality-related information systems
What is the cost to your organization?
In the life sciences industry, analysts have stated that less than 50 percent of companies really know what the COQ is for their organization. However, ASQ, Crosby, and FDA Case for Quality show that the COQ for an organization can range from 3 – 25% of a company’s revenue. The good news is that there are known strategies that can be put in place to drive down the COQ which will have a direct positive impact on the profitability of your organization, and it’s all within your control.
Strategies for cost improvements
Every company is at a different point in the evolution of its people, processes and technology implementations, and even its understanding of its key metrics/performance indicators or COQ. Management could consider leveraging the following strategies to reduce their company’s COPQ and positively impact its quality and profitability performance.
Improve supplier relationships for both product and process improvements
Collaborate during design process, engage suppliers in the corrective action process (from incoming, manufacturing or customer-reported problems), develop supplier scorecards, audit suppliers based on their product/process risk levels
The next dividend payment by Skippy, Inc., will be $2.95 per share. The dividends are anticipated to maintain a growth rate of 4.8 percent, forever. If the stock currently sells for $53.10 per share, what is the required return?A) 2.67%
B) 5.56%
C) 4.80%
D) 10.36%
E) .27%
Answer:
the correct option is D. 10.36%
Explanation:
The computation of the required return is shown below:
As we know that
Current Price = Expected Dividend ÷ (Required Return - Growth Rate)
(Required Return - Growth Rate) = Expected Dividend ÷ Current Price
Required Return = (Expected Dividend ÷ Current Price ) + Growth rate
= ($2.95 ÷ $ 53.10) + 4.8%
= 10.36%
hence, the correct option is D. 10.36%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
An unfavorable production-volume variance ________. A. is not a good measure of a lost production opportunity B. indicates that the company had reduced its per unit fixed overhead cost to improve sales C. takes into account the effect of additional revenues due to maintaining higher prices D. measures the amount of extra fixed costs planned for but not used
Answer:
d) measures the amount of extra fixed costs planned for but not used
Explanation:
An unfavorable production-volume variance measures the amount of extra fixed costs planned for but not used. As per production-volume variance extra fixed costs planned for but not used has unfavorable production-volume variance.
When production-volume variance is unfavorable, that means the fixed cost are allocated on lesser number of manufactured units, hence it indicates that the fixed costs are not controlled well.
Price Quantity Demanded by Michelle Quantity Demanded by Laura Quantity Demanded by Hillary$5 5 4 11$4 6 6 13$3 7 8 15$2 8 10 17$1 9 12 19$0 10 14 21If the market consists of Michelle, Laura, and Hillary and the price falls by $1, the quantity demanded in the market increases bya. 2 units.b. 4 units.c. 5 units.d. 3 units.
Answer:
The correct option is c. 5 units.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before the question is answered. See the attached pdf file for the complete question with the sorted data.
The explanation to the answer is now given as follows:
Note: See the attached excel file for the calculation of change in price and Quantity Demanded from the bottom.
From the table in the question and the attached excel file, whenever price changes (falls or increases) by $1, we have:
Change in Quantity Demanded by Michelle = 1
Change Quantity Demanded by Laura = 2
Change Quantity Demanded by Hillary = 2
Total change in quantity demanded = Change in Quantity Demanded by Michelle + Change Quantity Demanded by Laura + Change Quantity Demanded by Hillary = 1 + 2 + 2 = 5 units
From the above calculation therefore, if the market consists of Michelle, Laura, and Hillary and the price falls by $1, the quantity demanded in the market increases by the total change in quantity demanded, i.e. by 5 units.
Therefore, the correct option is c. 5 units.
Discuss the relationship between competition and consumer expectations.
Answer:
The relationship between competition and consumer expectations is by what the compitition is creating in terms of product and functionability. And the consumer expectation is what will help the by buying into this product.
Explanation:
Suppose that United States produces 10,000,000 barrels of oil and 1,000 bushels of wheat each week. Suppose that Pakistan produces 9753 barrels of oil and 9753 bushels of wheat each week. 1. In autarky, what is the largest amount of wheat United States can consume every week? Number bushels 2. What does the term autarky refer to? a) The process of negotiating terms of trade between two countries. b) A major argument against globalization. c) countries Government policies meant to reduce international trade. d) A situation where one country does not engage in trade with other
Answer:
1. 1,000 bushels of wheat
2. d) A situation where one country does not engage in trade with other
Explanation:
1 & 2. Autarky refers to a situation where a country does not engage in trade with other countries but rather relies on its own production capacities to feed the consumption in the country.
Autarkies in the current world are not a thing because countries trade with each other. Even North Korea trades with Russia, China and others.
In an Autarky situation therefore, the United States would only be able to consume the wheat that it produces itself which according to the question is 1,000 bushels of wheat.
Answer: 1. 1000 bushels of wheat.
2. A situation where one country does not engage in trade with other.
Explanation:
Autarky simply refers to an economy that's self sufficient and doesn't depend on other economies and doesn't trade with them.
1. The largest amount of wheat that the United States can consume every week will be 1000 bushels of wheat. This is because in autarky, nations won't engage in trading so whatever quantity of whameat that's produced will be consumed.
2. Autarky situation where one country does not engage in trade with other. Therefore, the correct option is D.
Karen Moore is a new employee with Cars R Us. One of her first responsibilities as the new HR Director is to create an incentive program for the organization. Cars R Us specializes in selling and leasing mid-priced vehicles across the United States. The organization has locations in each state in the four main regions of the United States. Recently, however, employee performance has been declining along with the unfortunate decline of car sales.
Before Ms. Moore creates an incentive program, she knows she will need to identify what is best practice for the industry, what the organization has done to reward the employees in the past as well as know what the financial constraints are to the new incentive program. Once completed, she will be able to implement a well-constructed incentive program established with the goals of increasing employee job satisfaction and performance as well as improve the companyâs financial position.
One of the first items on Ms. Mooreâs agenda is to identify the preferred method of earning rewards. In reviewing the results of a recent survey completed by more than 60 percent of the employees, she learns that the employees are competitive and are interested in group incentives programs as well as individual rewards.
Ms. Moore recommends Cars R Us include a _______ system that will provide all employees to receive a portion of the increase in productivity and effectiveness.
A. gainsharing
B. cost
C. equity
D. reduction
E. timesharing
Answer: A. gainsharing
Explanation:
A Gainsharing system is the one that Ms. Moore recommended because it involves providing employees with a portion of the increase in gains accrued from increased productivity and effectiveness.
Gainsharing ensures that employees are motivated to work harder for the company because they get a share if the company improves its productivity so they will have a vested interest in ensuring that the company becomes better.
Kapoor Company uses job-order costing. During January, the following data were reported:
a. Materials purchased on account: direct materials, $98,500; indirect materials, $14,800.
b. Materials issued: direct materials, $82,500; indirect materials, $8,800.
c. Labor cost incurred: direct labor, $67,000; indirect labor, $18,750.
d. Other manufacturing costs incurred (all payables), $46,200.
e. Overhead is applied on the basis of 110 percent of direct labor cost.
f. Work finished and transferred to Finished Goods Inventory cost $230,000.
g. Finished goods costing $215,000 were sold on account for 140 percent of cost.
h. Any over- or underapplied overhead is closed to Cost of Goods Sold.
Required:
1. Prepare journal entries to record these transactions.
2. Prepare a T-account for Overhead Control. Post all relevant information to this account. What is the ending balance in this account?
3. Prepare a T-account for Work-in-Process Inventory. Assume a beginning balance of $10,000, and post all relevant information to this account. Did you assign any actual overhead costs to Work-in-Process Inventory? Why or why not?
Answer:
Required 1
a.
Direct materials $98,500 (debit)
Indirect materials $14,800 (debit)
Trade Payable $113,300 (credit)
b.
Work in Process : direct materials $82,500 (debit)
Work in Process : indirect materials $8,800 (debit)
Direct material $82,500 (credit)
Indirect material $8,800 (credit)
c.
Work In Process: direct labor $67,000 (debit)
Work In Process: indirect labor $18,750 (debit)
Salaries Payable $85,750 (credit)
d.
Overheads $46,200 (debit)
Trade Payables $46,200 (credit)
e.
Work in Process $73,700 (debit)
Overheads $73,700 (credit)
f.
Finished goods Inventory $230,000 (debit)
Work in Process $230,000 (credit)
g.
Trade Receivable $301,000 (debit)
Cost of goods sold $215,000 (debit)
Inventory $215,000 (credit)
Sales Revenue $301,000 (credit)
h.
Overheads $27,500 (debit)
Cost of Sales $27,500 (credit)
Required 2
Overheads Account
Debit :
Trade Payables $46,200
Over- applied $27,500
Total $73,700
Credit :
Work in Process $73,700
Total $73,700
Required 3
Work In Process Account
Debit :
Beginning balance $10,000
Direct material $82,500
Direct labor $67,000
Overheads $73,700
Total $233,200
Credit :
Finished goods Inventory $230,000
Ending Balance $3,200
Total $233,200
Why use applied overheads instead of actual overheads
We assign applied overheads to Work-in-Process Inventory. This is because the actuals are usually not readily available to costs the products and determine selling prices. The actuals are available later during the end of the period and using these, we would delay the product costing and pricing seasons.
Explanation:
Required 1
Theses are journal entries. Accumulate the production costs in the Work In Process Inventory Account. When units are completed, the cost from the Work In Process to the Finished Goods Account.
Required 2
This is the overheads Account. On the debit side of this account we record the overheads actually incurred during the production period. On the credit side we record the overheads applied. The balance of this account is either overapplied (debit) or under-applied (credit). In our case, we had an overapplied situation (debit).
Required 3
This is the Work-in-Process Account. Make sure to include the applied overheads instead of actual overheads.
Samuel, Inc. has Accounts Receivable of $110,000 and an Allowance for Doubtful Accounts of $17,000. If it writes-off a customer account balance of $1,700, what is the amount of its net accounts receivable?A) 591,300. B) $108,300. C) $110,000. D) $93,000.
Answer:
the net account receivable is d. $93,000
Explanation:
The computation of the net account receivable is shown below:
= (Account receivable - written off amount) - (Allowance for doubtful accounts - written off amount)
= ($110,000 - $1,700) - ($17,000 - $1,700)
= $108,300 - $15,300
= $93,000
Hence, the net account receivable is $93,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Effective teams have confidence in themselves and believe they can succeed. This confidence is called ________.
A) social facilitation
B) goal congruence
C) social loafing
D) team efficacy
E) self-serving bias
Answer:
D) team efficacy
Explanation:
Team efficacy can be defined as the joint or collective beliefs that the members of a team have in its capacity to effectively execute a specific project or task, accomplish its organizational set goals and objectives through the use of team efforts and skills.
Hence, effective teams have confidence in themselves and believe they can succeed. This confidence is called team efficacy because all the members of the team bring their own skills, viewpoints, experience, knowledge to achieve success.
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 pounds of oysters in August. The company’s flexible budget for August appears below:
Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (q) 7,200
Revenue ($4.20q) $30,240
Expenses:
Packing supplies ($0.35q) 2,520
Oyster bed maintenance ($3,300) 3,300
Wages and salaries ($2,000 + $0.35q) 4,520
Shipping ($0.65q) 4,680
Utilities ($1,290) 1,290
Other ($460 + $0.01q) 532
Total expense 16,842
Net operating income $13,398
The actual results for August were as follows:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds 7,200
Revenue $27,200
Expenses:
Packing supplies 2,690
Oyster bed maintenance 3,160
Wages and salaries 4,930
Shipping 4,410
Utilities 1,100
Other 1,152
Total expense 17,442
Net operating income $9,758
Required:
Compute the company’s revenue and spending variances for August.
Answer:
Quilcene Oysteria
Computation of revenue and spending variances for August:
Flexible Actual Variance
For the Month Ended August 31
Actual pounds (q) 7,200 7,200 None
Revenue ($4.20q) $30,240 27,200 $3,040 U
Expenses:
Packing supplies ($0.35q) 2,520 2,690 -170 U
Oyster bed maintenance ($3,300) 3,300 3,160 140 F
Wages and salaries ($2,000 + $0.35q) 4,520 4,930 -410 U
Shipping ($0.65q) 4,680 4,410 270 F
Utilities ($1,290) 1,290 1,100 190 F
Other ($460 + $0.01q) 532 1,152 -620 U
Total expense 16,842 17,442 -600 U
Net operating income $13,398 $9,758 -3,640 U
Explanation:
Quilcene Oysteria 's budget comparison with actual performance shows that there is an unfavorable variance of $3,640 arising from the less than impressive sales revenue and excessive spending incurred during August. The firm realized less revenue than budgeted and incurred more expenses than budgeted. The result is this unfavorable variance of $3,640.
Regarding limited partners:________.
a. if the partnership agreement is silent as to notice required prior to termination, 90 days' written notice is required before the limited partner may withdraw.
b. they may not withdraw before the time that the partners have agreed the partnership will terminate.
c. they must obtain a court order to withdraw because of their limited liability and its effect on the remaining partners and third parties dealing with the business.
d. they may withdraw from the partnership at any time, but they forfeit their investment if they withdraw early.
Answer:
a. if the partnership agreement is silent as to notice required prior to termination, 90 days' written notice is required before the limited partner may withdraw.
Explanation:
Limited partners: The term "limited partner" is described as a "part-owner" of a specific company or organization whose liability associated with the company's debts can't exceed the amount that a person invested in that company. Limited partners are also referred to as "silent partners".
A "limited partner" can withdraw himself or herself from the company or firm any time he or she wants after a six months notice to the other partners, and the person who is withdrawing is being entitled to any specific distribution based on the agreement or, if none, associated with the "fair value" of the interest on the basis of the right to share in "distributions".
In the question above, the correct answer is option a.
Cynthia Ogago is planning to make investment in a scheme
earning 10% interest rate and expects to receive ksh. 50,000
after 3 years. Advise her on how much she needs to invest now
in order to achieve these
O a. Ksh. 50,000
O b. Ksh. 66,550
O c. Ksh. 35,656
O d. Ksh. 37,566
Answer:
d. Ksh. 37,566
Explanation:
The $50,000 represent the future amount expected after 3 years.
the interest rate is 10%.
Implementing the formula A = P x ( 1+ r) ^n
A= $50,000
P= amount to invest
R=10% or 0.10
n=3 years
Ksh.50,000 = P x (1 + 0.10) ^ 3
Kshs.50,000 = P x (1.1) ^3
Kshs.50,000 = P x 1.331
P= Kshs50,000 / 1.331
P=Kshs.37,565.74
= Kshs. 37,566
A company will sell N units of a product after spending $x thousand in advertising, as given by N = 60x - x^2 5 \leq x \leq 30approximately what increase in sales will result by increasing the advertising budget from $10,000 to $11,000 and from $20,000 to $21,000?
Answer:
Explanation:
Given that:
[tex]N(x) = 60 x - x^2[/tex] where; 5 ≤ x ≤ 30
SO by increasing the advertising budget from 10,000 to 11000; the budget is increased from 10 to 11 since x is in thousands.
∴
Increase in sales = N(x₂) - N(x₁)
Increase in sales = N(11) -N(10)
Increase in sales = (60(11)-11²) - (60(10) -10²)
Increase in sales = (660 - 121) - (600 - 100)
Increase in sales = 539 - 500
Increase in sales = 39 units
By increasing the advertising budget from 20,000 to 21000; the budget is increased from 20 to 21 since x is in thousands.
∴
Increase in sales = N(x₂) - N(x₁)
Increase in sales = N(21) -N(20)
Increase in sales = (60(21)-21²) - (60(20) -20²)
Increase in sales = (1260 - 441) - (1200 - 400)
Increase in sales = 819 - 800
Increase in sales = 19 units
The CECL model:_______.A. Is a good example of an income-statement approach to estimating bad debts. B. Recognizes bad debts when it is probable that an economic sacrifice has occurred. C. Considers historical experience but not forecasts of the future. D. Allows a company to use an accounts receivable aging as part of its methodology for estimating credit losses.
Answer:
The correct answer is the option D: Allows a company to use an account receivable aging as part of its methodology for estimating credit losses.
Explanation:
To begin with, the name of "Current Expected Credit Losses" in the field of business and accounting refers to an specific model used by the companies that was issued by the Financial Accounting Standards Board and its main purpose is to focus on estimation of expected losses according to the complete life of the loan. So therefore that this model allows the companies to use an accounts receivable aging ar part of its methodology for estimating the credit losses. And that is also why this system has had an important impact in the financial institutions of the United States of America.
Anna Garden recently opened her own basketweaving studio. She sells finished baskets in addition to selling the raw materials needed by customers to weave baskets of their own. Unfortunately, owing to space limitations, Anna is unable to carry all varieties of kits originally assembled and must choose between two basic packages.
The Basic Kit includes undyed, uncut reeds (with dye included) for weaving one basket. This basic package costs Anna $16 and sells for $30. The second kit, called Stage 2, includes cut reeds that have already been dyed. With this kit the customer need only soak the reeds and weave the basket. Anna produces the Stage 2 kit by using the materials included in the Basic Kit. Because she is more efficient at cutting and dying reeds than her average customer, Anna is able to produce two Stage 2 kits in one hour from one Basic Kit. (She values her time at $18 per hour.) The Stage 2 kit sells for $36.
Prepare an incremental analysis for Anna's basket weaving studio.
Answer:
Stage 1 kit Stage 2 kit Differential amount
Selling price $30 $36 $6
Materials cost ($16) ($16) $0
per unit
Additional labor $0 $18/2 = ($9) ($9)
cost per unit
Contribution margin $14 $11 ($3)
per unit
Anna will lose $3 for every Stage 2 kit that she sells. Only if he is able to sell a much higher quantity of Stage 2 kits would it be worth it, but under current conditions Anna should focus on selling Stage 1 kits.
What is international market segmentation? What challenges does it pose to Bentley?
Answer:
Bentley has differentiated and positioned its brand effectively. ... In traditional market there is a growth in high network people by 16.6%, Bentley will continue to grow because the potential customers grew.
Explanation:
Effective product positioning and differentiation are hallmarks of Bentley. Due to the increased number of prospective clients, Bentley will keep expanding.
What is the international market?An international market is one that is located entirely inside a firm's home country, whereas a global market is any specific location that is not within the borders of that nation.
Finding nations and/or customers that have important characteristics, such as desires and needs connected to a product, and who would be responsive to an item and ’s promotional mix.
Bentley sells premium cars and caters to high-income demographics in order to grow its brand. It is not afraid to demand a price that is normally expensive since it makes items of the highest caliber that are supplied only via private dealers.
Learn more about the international market, here:
https://brainly.com/question/25010904
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Use the information for the question(s) below. Rosewood Industries has EBIT of $450 million, interest expense of $175 million, and a corporate tax rate of 35% If Rosewood had no interest expense, its net income would be closest to:___________ a. $430 million b. $160 million c. $290 million d. $405 million
Answer:
$180 million
Explanation:
Net income is calculated as;
= (EBIT - Interest expense)(1 - tax)
Given that;
EBIT = $450 million
Interest expense = $175 million
Tax = 35%
Net income = (450 - 175)(1 - 0.35)
Net income = (275)(0.65)
Net income = $178.75
Net income = $180 million approximated.
Rosewood's net income is closest to $180 million.
If there is an excess supply of money in the economy, A. there is also an excess demand for money B. there is also an excess demand for bonds C. there is also an excess supply of bonds D. the interest rate will rise E. the Fed must intervene to restore equilibrium
Answer: B. there is also an excess demand for bonds
Explanation:
When there is an excess supply of money in the economy, there is also an excess demand for bonds.
This is because in his case, rather than holding money, individuals will want to increase their being holdings and therefore, this will lead to the reduction in their holding of money. Equilibrium will further be restored as there'll be reduction in interest rate.
(TCO B) WordPerfect Corporation noticed that the more of its word processing software packages it sold, the more customers complained or suggested improvements. In such a situation, WordPerfect Corporation has the opportunity to:_________.
a. steadily improve its word processor software.
b. be acquired by a larger company that can take over the development of the product.
c. develop a completely new program.
d. discontinue production.
Answer:
a. steadily improve its word processor software.
Explanation:
Remember, although we are told WordPerfect Corporation customers complained they also suggested improvements. Meaning, the product isn't entirely bad but needs some improvements.
Instead of developing a completely new program or discontinue production, It makes logical sense for them to improve the word processor software to fit the needs of the customers.
Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio:_______. Cash $70,200 Short-term investments 12,800 Accounts receivable 49,500 Inventory 242,000 Prepaid expenses 18,000 Accounts payable 100,500 Other current payables 28,000a. 3.05 and 1.03. b. 2.91 and .97. c. 1.17 and 3.91. d. .97 and 3.05.
Answer:
a. 3.05 and 1.03
Explanation:
The formula for current ratio is
= Current assets/Current liabilities
= (Cash + Short term investment + Accounts receivable + Inventory + Prepaid expenses) / (Accounts payable + Other current payables)
= (70,200 + 12,800 + 49,500 + 242,000 + 18,000) / (100,500 + 28,000)
= 392,500 / 128,500
= 3.05
The formula for Acid test ratio is
= Quick Assets / Current liabilities
= (Cash + Short term investment + Accounts receivable) / (Accounts payable + Other current payables)
= (70,200 + 12,800 + 49,500) / (100,500 + 28,000)
= 132,500 / 128,500
= 1.03
Radon Corporation manufactured 37,500 units during March. The following fixed overhead data pertain to March: Actual Static Budget Production 37,500 units 34,000 units Machine-hours 10,375 hours 10,200 hours Fixed overhead costs for March $213,200 $204,000 What is the fixed overhead production-volume variance?
Answer:
$21,000 Unfavorable
Explanation:
First, we need to calculate fixed overhead absorption rate.
Fixed overhead absorption rate = Fixed overhead costs for March(Static budget) ÷ Production(Static budget)
= $204,000 ÷ $34,000
= $6 per unit
Fixed overhead production volume variance
= Amount actually applied - Amount budgeted
= ($6 × 37,500) - $204,000
= $225,000 - $204,000
= $21,000 Unfavorable
Question 7 of 10
How does fractional reserve banking increase the money supply?
O A. By automatically converting foreign currencies into U.S. dollars on
deposit
O B. By guaranteeing that all deposits are held in reserve as cash at all
times
O C. By using deposited money to make loans without reducing the
value of the deposits
O D. By giving banks the authority to print their own money in an
economic emergency
SUBMIT
Answer: C. By Using deposited money to make loans without reducing the value of the deposits
Explanation:
A.P.E.X
Answer:
c
Explanation:
Leia just read that the national debt owed by the federal government is at an all-time high. (Explain any possible impact on the federal government from unexpected inflation.)
Answer:
If the government of the country where Leia is from has a national debt at an all-time high, and at the same time, unexpected high inflation hits, the situation for the government can become extremely dire.
This is because high inflation will lower the value of the domestic currency, which is probably not the currency in which most of of the debt is owed. The proportion of the national debt that is owed in foreign currency will then become more expensive, because more units of domestic currency will be needed to exchange for the foreign currency, rendering the cost of the national debt a lot higher.
What is the rate of return on an investment of $124,090 if the company expects to receive $10,000 per year for the next 30 years? A. 5.5 percent B. 4 percent C. 7 percent D. 6 percent
Answer:
C. 7 percent
Explanation:
The computation of the rate of return on the investment is shown below:
Given that
PV = $124,090
FV = $0
PMT = $10,000
NPER = 30
The formula is shown below:
=RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the rate of return is 7%
Hence, the rate of return on the investment is 7%
The correct option is c. 7%
Assume you have a 1-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature in 10 years. The first is a zero-coupon bond that pays $1,000 at maturity. The second has an 6.2% coupon rate and pays the $62 coupon once per year. The third has a 7.2% coupon rate and pays the $72 coupon once per year.
a. If all three bonds are now priced to yield 7% to maturity, what are their prices?
b. If you expect their yields to maturity to be 7% at the beginning of next year, what will their prices be then? What is your before-tax holding-period return on each bond? If your tax bracket is 30% on ordinary income and 20% on capital gains income, what will your aftertax rate of return be on each?
c. If you expect their yields to maturity to be 6% at the beginning of next year, what will their prices be then? What is your before-tax holding-period return on each bond? If your tax bracket is 30% on ordinary income and 20% on capital gains income, what will your aftertax rate of return be on each?
Answer:
a. If all three bonds are now priced to yield 7% to maturity, what are their prices?
zero coupon bond = $1,000 / (1 + 7%)¹⁰ = $508.35
6.2% coupon bond:
PV of face value = $1,000 / (1 + 7%)¹⁰ = $508.35
PV of coupon payments = $62 x 7.0236 (PV annuity factor, 7%, 10 periods) = $435.46
market price = $943.81
7.2% coupon bond:
PV of face value = $1,000 / (1 + 7%)¹⁰ = $508.35
PV of coupon payments = $72 x 7.0236 (PV annuity factor, 7%, 10 periods) = $505.70
market price = $1,014.05
b. If you expect their yields to maturity to be 7% at the beginning of next year, what will their prices be then? What is your before-tax holding-period return on each bond? If your tax bracket is 30% on ordinary income and 20% on capital gains income, what will your aftertax rate of return be on each?
zero coupon bond = $1,000 / (1 + 7%)⁹ = $543.93
before tax holding period return = ($543.93 - $508.35) / $508.35 = 7%
after tax HPR = 7% x 0.8 = 5.6%
6.2% coupon bond:
PV of face value = $1,000 / (1 + 7%)⁹ = $543.93
PV of coupon payments = $62 x 6.5152 (PV annuity factor, 7%, 10 periods) = $403.94
market price = $947.87
before tax holding period return = ($947.87 - $943.81 + $62) / $943.81 = 7%
after tax HPR:
($4.06 x 0.8) / $943.81 = 0.34%
($62 x 0.7) / $943.81 = 4.60%
total = 4.94%
7.2% coupon bond:
PV of face value = $1,000 / (1 + 7%)⁹ = $543.93
PV of coupon payments = $72 x 6.5152 (PV annuity factor, 7%, 10 periods) = $469.09
market price = $1,013.02
before tax holding period return = ($1,013.02 - $1,014.05 + $72) / $1,014.05 = 7%
after tax HPR:
(-$1.03 x 0.8) / $1,014.05 = -0.08%
($72 x 0.7) / $1,014.05 = 4.97%
total = 4.89%
c. If you expect their yields to maturity to be 6% at the beginning of next year, what will their prices be then? What is your before-tax holding-period return on each bond? If your tax bracket is 30% on ordinary income and 20% on capital gains income, what will your aftertax rate of return be on each?
zero coupon bond = $1,000 / (1 + 6%)⁹ = $591.90
before tax holding period return = ($591.90 - $508.35) / $508.35 = 16.44%
after tax HPR = 16.44% x 0.8 = 13.15%
6.2% coupon bond:
PV of face value = $1,000 / (1 + 6%)⁹ = $591.90
PV of coupon payments = $62 x 6.8017 (PV annuity factor, 6%, 10 periods) = $421.71
market price = $1,013.61
before tax holding period return = ($1,013.61 - $943.81 + $62) / $943.81 = 13.96%
after tax HPR:
($69.80 x 0.8) / $943.81 = 5.92%
($62 x 0.7) / $943.81 = 4.60%
total = 10.52%
7.2% coupon bond:
PV of face value = $1,000 / (1 + 6%)⁹ = $591.90
PV of coupon payments = $72 x 6.8017 (PV annuity factor, 6%, 10 periods) = $489.72
market price = $1,081.62
before tax holding period return = ($1,081.62 - $1,014.05 + $72) / $1,014.05 = 13.76%
after tax HPR:
($67.57 x 0.8) / $1,014.05 = 5.33%
($72 x 0.7) / $1,014.05 = 4.97%
total = 10.30%
Steve Colburn's portable sawmill used 100% for business, was completely destroyed by fire. The sawmill had an adjusted basis of $35,000 and a fair market value of $50,000 before the fire. The sawmill was uninsured. Steve's casualty loss is:________.1) $49,900.
2) $50,000.
3) $35,000.
4) $34,900.
Answer: $35,000
Explanation:
A casualty loss is simply a loss that an individual or business incurs when a property is damaged, or destroyed due to an unexpected or sudden event like fire, volcanic eruption, flood etc.
Here, Steve's casualty loss will be gotten when we compare both his adjusted basis and the fair market value and then we choose the lesser one. Since $35000 is lesser than $50000, therefore the answer will be $35000.
Giving customers time to pay their bill generates more sales. But when a recession hits, they may have trouble making payments. If you have businesses as clients, they may have slow-paying customers, and that means they will be slow to pay you. That is what happened to a company that offered a discount card as its primary product. The owner estimated that 50 percent of the firm's customers—other small businesses—were behind in paying what they owed. The owner needed those customers to keep his business operating, so he was hesitant to demand payment on past due accounts.
1. Should a small business owner push customers to pay when times are tough? Why or why not?
2. What problems do you think a business services company might have when is customers do not pay?
Answer:
1. A compromise should be reached.
In the recession, the other small businesses are suffering including the company in question. If the owner pushes the customers to pay their bills, when the recession ends they may move to other vendors which would have made demanding money from them in the recession a myopic and damaging move.
The business however, also has bills to pay and so needs money to maintain operations as well. A compromise needs to be reached. The owner should contact the other businesses still owing and negotiate with them to pay a certain portion of what they owe with the rest coming later.
This could give the owner enough to keep the business running whilst maintaining the loyalty of his customers.
2. Problems that a business services company could have if customers do not pay include;
Inability to pay staff. Inability to pay utilities like electricity.Inability to pay rent and other expenses.Increased risk of debt default.Growth of company suffers.If any portion of a long-term debt is to be paid in the next year, the entire debt should be classified as a current liability. A. True B. False
Answer:
B. False
Explanation:
The portion of a long term liability that is due within one year is called current portion of long-term debt (CPLTD). The name basically explains everything. E.g. you owe a note receivable worth $100,000 and every year you must pay an installment of $10,000 plus interest. The CPLTD (current liability) = $10,000, and the long term debt = $90,000.