Jane Dough Pizza's manager is now getting detailed costs for offering delivery service and needs to properly categorize them as either fixed or variable costs.
Please indicate whether each of the following items is a fixed cost or a variable cost.
a. Boxes for pizzas being delivered
b. Mileage reimbursement for delivery drivers
c. Monthly salary of programmer in charge of e-commerce website
d. Cost of raw materials for pizzas that get delivered
e. Monthly building lease

Answers

Answer 1

Answer:

variable costs.

variable costs.

fixed cost

variable costs.

fixed cost

Explanation:

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.  

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.  

If no pizzas are delivered, there would be no need for boxes. thus boxes of pizza is a variable cost

the salary of the programmer is not dependent on the level of output. thus it is a fixed cost

Answer 2

a. variable costs.

b. variable costs.

c. fixed cost

d. variable costs.

e. fixed cost

The following information should be considered:

Fixed costs are costs that do not vary with output such as rent, mortgage payments Variable costs are costs that vary with production

So based on this, the above are the answers.

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Related Questions

Tucan Company manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $300 per ounce; the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent quarterly production budget:

July August September
Planned production in units 1,000 11,00 980

The cost of platinum to be purchased to support August production is:_______

Answers

Answer:

$163,200

Explanation:

Tucan Company

Purchase Budget for the Month of August

Production Requirement ( 11,00 x  0.5 )          550

Add Closing inventory ( 980 x 0.5 x 10%)         49

Total                                                                  599

Less Opening Inventory ( 11,00 x 0.5 x 10%)   (55)

Materials Required                                          544

Cost $300

Total Cost                                               $163,200

Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. Jeremy is single with two withholding allowances. He receives an annual salary of $36,000 and receives a 3 percent commission on all sales. During the semimonthly pay period ending September 29, 20XX, Jeremy sold $20,000 of service contracts.

Required:
Complete the payroll register for the September 29 pay period.

Answers

Answer:

Pay recorded for September 29 is $2,100

Explanation:

Jeremy Ortiz is paid based on two sources of income. The first being the annual salary of $36,000 and the second is the commission on all the service contracts sold, which is 3%.

Since the pay period is of semimonthly (15 days), the annual salary would be divided by 24 instead of the regular 12 months. This would mean that salary of $1,500 ($36,000 / 24) would be recorded in the payroll register.

For the commission, the sales done during this semimonthly period was $20,000 of service contracts. The commission at 3% of all sales would be $600 ($20,000 x 3%).

Total pay recorded in the payroll register for the September 29 period would be $2,100 ($1,500 + $600).

Viola has to relocate for her job. She finds a townhome with an option to rent or buy. The conditions of each are shown below. Rent: Move-in costs of $2,380 and.monthly payment of $845. Buy: Move-in costs of $5,260 and monthly payment of $785. Viola moves frequently due to her job, but she thinks that she will stay in the area for 4 years. Therefore, she decided to buy. Cho0se the best evaluation of Viola's deci a. Since the costs would be the same over the 4 year period, she will have made a good decision if the property value does not decrease. b. She made a fairly good decision. Buying the townhome will be cheaper over the 4 year period as long as she doesn't have major repairs to make. C. She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 4 year period. d. There is not enough information given to determine which option is best.​

Answers

Answer:  C

Explanation: i took a test on k12 with the same answer

Answer:

A

Explanation:

Since the costs would be the same over the 4 year period, she will have made a good decision if the property value does not decrease.

Assume the following information for Windsor Corp.

Accounts receivable (beginning balance) $139,000
Allowance for doubtful accounts (beginning balance) 11,450
Net credit sales 940,000
Collections 917,000
Write-offs of accounts receivable 5,600
Collections of accounts previously written off 1,600

Uncollectible accounts are expected to be 9% of the ending balance in accounts receivable.

Required:
Prepare the entries to record sales and collections during the period.

Answers

Answer:

To record the Sales

Dr. Account Receivables 940,000

Cr. Sales 940,000

To record the Collection

Dr. Cash 917,000

Cr. Account Receivables 917,000

Explanation:

To record the sales we need to debit the account receivables as the sales are made on credit and credit the sale to record the sale.

To record the Collection from the customers we need to debit the cash account to record the receipt of cash ab credit the account receivables to decrease the value of account receivables by the amount of collection.

Henry is a new employee who used to work for your most daunting competitor. When you

are designing an ad campaign, you interview Henry to help you draft an accurate

company.

coercive
reward
referent
information
none of the above.

Answers

Answer:

information

Explanation:

The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead costs on the basis of machine hours. Chilton budgeted 0.3 machine hours per lamp and allocates overhead at a rate of $1.90 per machine hour. Last year Chilton manufactured 19,000 lamps, used 7,600 machine hours and incurred actual overhead costs of $12,920. What was​ Chilton's variable manufacturing overhead efficiency variance last​ year?
A. ​$9,660 favorable
B. ​$4,140 unfavorable
C. ​$4,140 favorable
D. ​$9,660 unfavorable

Answers

Answer:

See below

Explanation:

Given the above information, we can compute variable manufacturing overhead efficiency variance to be;

= (SA - AQ) × SR

Where

Standard quantity = SQ = 19,000

Actual Quantity = AQ = 7,600

Standard Rate = SR = $1.9

Variable manufacturing overhead efficiency variance

= [(19,000 × 0.3) - 7,600] × $1.9

= (5,700 - 7,600) × $1.9

= $3,610 U

Direct Materials Variances The following data relate to the direct materials cost for the production of 20,000 automobile tires: Actual: 80,000 lbs. at $2.65 $212,000 Standard: 86,000 lbs. at $2.50 $215,000 a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter favorable variances as negative numbers. Enter unfavorable variances as positive numbers. Price variance $fill in the blank 1 Quantity variance fill in the blank 3 Total direct materials cost variance $fill in the blank 5 b. The direct materials price variance should normally be reported to the . The direct materials quantity variance due to a malfunction of equipment that had not been properly operated should be reported to the . The total materials cost variance should be reported to the .

Answers

Answer and Explanation:

The computation is shown below:

a. Direct material price variance

= 80,000 × ($2.65 - $2.5)

= $12,000 unfavorable

Direct material quantity variance

= $2.5 × (80,000 - 86,000)

= -$15,000 favorable

ANd, the total direct material cost variance

= $12,000 unfavorable - $15,000 favorable

= -$3,000 favorable

2.  The direct material price variance should be reported to the purchasing department while the direct material quantity variance should be reported to the production supervisor and the total material cost variance should be reported to the senior plant management

The budget director for Kanosh Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances.

October November December
Budgeted S&A Expenses
Equipment lease expense $5,800 $5,800 $5,800
Salary expense 6,700 7,200 7,600
Cleaning supplies 2,880 2,720 3,040
Insurance expense 1,800 1,800 1,800
Depreciation on computer 2,400 2,400 2,400
Rent 2,100 2,100 2,100
Miscellaneous expenses 710 710 710
Total operating expenses $22,390 $22,730 $23,450
Schedule of Cash Payments for S&A Expenses
Equipment lease expense
Prior month's salary expense 100%
Cleaning supplies
Insurance premium
Depreciation on computer
Rent
Miscellaneous expenses
Total disbursements for operating expenses $22,290 $18,030 $18,850


Required:
a. Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.
b. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter.
c. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.

Answers

Answer:

Explanation:

c. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.

The answer is 5400 because "at the end of the 4th quarter is only consists of 3 months (oct-dec). By taking the total amount you paid for all 6 months minus what you have to pay for 3 months.

The standard cost of Product B manufactured by Pharrell Company includes 2.3 units of direct materials at $6.70 per unit. During June, 26,800 units of direct materials are purchased at a cost of $6.65 per unit, and 26,800 units of direct materials are used to produce 11,500 units of Product B. (a) Compute the total materials variance and the price and quantity variances. Total materials variance $ Materials price variance $ Materials quantity variance

Answers

Answer:

Results are below.

Explanation:

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (6.7 - 6.65)*26,800

Direct material price variance= $1,340 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (2.3*11,500 - 26,800)*6.7

Direct material quantity variance= $2,345 unfavorable

Now, the total variance:

Total direct material variance= Direct material price variance +/- Direct material quantity variance

Total direct material variance= 1,340 - 2,345

Total direct material variance= $1,005 unfavorable

Problem 2-15 (Algorithmic) Life Insurance (LO 2.8) Sharon transfers to Russ a life insurance policy with a cash surrender value of $24,800 and a face value of $74,400 in exchange for real estate. Russ continues to pay the premiums on the policy until Sharon dies 7 years later. At that time, Russ has paid $11,160 in premiums, and he collects the $74,400 face value. How much of the proceeds, if any, is taxable to Russ

Answers

Answer:

$38,440

Explanation:

Calculation to determine How much of the proceeds, if any, is taxable to Russ

Face value of policy $74,400

Less: Cash Surrender value ($24,800)

Less: Premium paid ($11,160)

Taxable Proceeds $38,440

Therefore the taxable Proceeds are $38,440.

Which of these career positions typically advise customers of the amount of money they need to support their families in case of death or to protect themselves in case of an emergency with their homes or cars?

bank teller

insurance agent

financial manager

mortgage broker

Answers

Answer:

C. financial manager

Explanation:

finacial manager usually give advises to customers  on amount of money incase of a family passed way. This is why financial manager is the best option.

Answer:

B

Explanation:

Parker Company pays each member of its sales staff a salary as well as a commission on
each unit sold. For the coming year, Parker plans to increase all salaries by 5% and to keep
unchanged the commission paid on each unit sold. Because of increased demand, Parker
expects the volume of sales to increase by 10%. How will the total cost of sales salaries and
commissions change for the coming year?
A. Increase by 5% or less.
B. Increase by more than 5% but less than 10%.

Answers

Answer: B is correct

Explanation:

 Sales salaries will increase by exactly 5%. The per-unit commission amount will remain constant, but sales commissions in total are expected to increase by 10%. Thus, total sales salaries and commissions will increase somewhere between 5% and 10%.

Last summer, Maria decided to join a bowling league with some colleagues from work. They formed a team and bowled together several times to get to know one another better. The week before the league started, the team had to come up with a name. During a meeting to discuss this, Maria and her teammate Tim got into a heated debate because Maria wanted their name to be The Lucky Strikes, whereas Tim wanted the team name to be The Pin City Pimps. While yelling at each other, it became clear that Maria thought she should be the team manager because she had formed the team. Tim was just as adamant that he should be team manager because he is the more experienced bowler.

1. As Sunita and Hubert argue about the team name, what stage of development is their bowling team in?

a. Storming
b. Norming
c. Performing
d. Forming

2. If a team leader wanted to help a team such as Sunita’s get through the storming stage of team development, he or she should take which of the following actions? Check all that apply.

a. Encourage participation by all team members.
b. Help the team discourage free riding.
c. Disband the team.
d. Watch for blocking, or disruptive, behaviors and help prevent them.

Answers

#1 is storming
#2 is a. And d.

In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows. Budget Actual Indirect materials $15,700 $14,800 Indirect labor 21,300 22,100 Utilities 11,100 11,900 Supervision 5,100 5,100 All costs are controllable by the department manager. Prepare a responsibility report for April for the cost center.

Answers

Answer:

Indirect materials $900 Favorable

Indirect labor $800 Unfavorable

Utilities $800 Unfavorable

Supervision $0 Neither Favorable Non Unfavorable

Total $700 Unfavorable

Explanation:

Preparation of a responsibility report for April for the cost center.

HANNON COMPANY Assembly Department Manufacturing Overhead Cost Responsibility Report For the Month Ended April 30, 2020

Controllable cost Budget Actual

Indirect materials $15,700- $14,800 =$900 Favorable

Indirect labor 21,300- 22,100 =$800 Unfavorable

Utilities 11,100- 11,900=$800 Unfavorable

Supervision 5,100- 5,100= $0 Neither Favorable Non Unfavorable

Total $53,200-$53,900=$700 Unfavorable

Therefore The responsibility report for April for the cost center will be :

Indirect materials $900 Favorable

Indirect labor $800 Unfavorable

Utilities $800 Unfavorable

Supervision Neither Favorable Non Unfavorable

Total $700 Unfavorable

Prime Bank is offering your company the use of their lockbox services. They estimate that you can reduce your average mail time by 1.5 days and they can save you a combined clearing and processing time of 1 day by putting the checks into the clearing system sooner. Your firm receives 198 checks a day with an average value of $2,300 each. The current T-Bill rate is .011 percent per day. Assume a 365-day year. Prime Bank will charge your firm an annual fee of $27,500 plus $.20 per check. What is the annual net savings from installing this system

Answers

Answer:

$3,756.77

Explanation:

The computation of the annual net savings from installing this system is shown below

Given that

Reduction in average mail time= 1.5 days

And, Reduction in clearing and processing time = 1day

So, Total reduction =  1.5 + 1 = 2.5 days

No. of checks per day= 198

Average Value= $2300

So, the Value of all checks per day is

= 2300 × 198

= $455,400

Now total savings is

= $455,400 × 2.5 days × 0.00011 × 365 days

= $45,710.77

The Cost of service is

= Annual fee + variable fee

=  $27,500 + 0.20 × 198 × 365

= $41,954

Now

finally Net savings is

= $45,710.77 - $41,954

= $3,756.77

Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year:

Sales $1,400,000
Net operating income $70,000
Average operating assets $350,000

Required:
a. Compute the Springfield club's return on investment (ROI), margin and turnover value.
b. Assume that the manager of the club is able to increase sales by $70,000 and that, as a result, net operating income increases by $18,200. Further, assume that this is possible without any increase in operating assets. What would be the club's return on investment (ROI), margin and turnover value?
c. Assume that the manager of the club is able to reduce expenses by $14,000 without any change in sales or operating assets. What would be the club's return on investment (ROI), margin and turnover value?

Answers

Answer:

1. 20%

2.25.2%

3.24%

Explanation:

1. Calculation to determine the ROI

Using this formula

ROI= Net income/Average operating assets

Let plug in the formula

ROI= $70,000 / $350,000*100

ROI= 20%

2) ROI = ($70,000 +$18,200)/$350000"100

ROI=$88,200/$350,000*100

ROI=25.2%

3) ROI = ($70,000 +$14,000)/350000*100

ROI=$84,000/$350,000*100

ROI=24%

Product A consists of two units of Subassembly B, two units of C, and one unit of D. B is composed of four units of E and two units of F. C is made of two units of H and three units of D. H is made of five units of E and two units of G. To produce 100 units of A, determine the numbers of units of B, C, D, E, F, G, and H required using the low-level coded product structure tree.
Level 0 100 units of A
Level 1 units of B
units of C
Level 2 units of F
units of H
units of D
Level 3 units of E
units of G

Answers

Answer:

[tex]B = 200\ units[/tex]    [tex]C = 200\ units[/tex]

[tex]F = 400\ units[/tex]    [tex]H = 400\ units[/tex]

[tex]D = 700\ units[/tex]     [tex]E = 2800\ units[/tex]

[tex]G = 800\ units[/tex]

Explanation:

Given

[tex]A = 100\ units[/tex]

See attachment for right presentation of question

Solving (a): The low level coded product structure tree

This is plotted by considering the hierarchy or level of each product item and their corresponding units.

See attachment (2)

Solving (b): The number of units of each.

To do this, we multiply the units of the given product by the number of unit the fall under.

So, we have:

Products B and C are directly under A, so we multiply their units by units of A.

[tex]B = 2 * A = 2 * 100[/tex]

[tex]B = 200\ units[/tex]

[tex]C = 2 * A = 2 * 100[/tex]

[tex]C = 200\ units[/tex]

Product F is directly under B, so we multiply its units by units of B.

[tex]F = 2 * B = 2 * 200[/tex]

[tex]F = 400\ units[/tex]

Product H is directly under C, so

[tex]H = 2 * C = 2 * 200[/tex]

[tex]H = 400\ units[/tex]

Product D has of 3 units of C and 1 unit of A. So:

[tex]D = 3 * C + 1 * A[/tex]

[tex]D = 3 * 200 + 1 * 100[/tex]

[tex]D = 700\ units[/tex]

Product E has of 4 units of B and 5 units of H. So:

[tex]E = 4 * B + 5 * H[/tex]

[tex]E = 4 *200 + 5 * 400[/tex]

[tex]E = 2800\ units[/tex]

Product G has 2 units of H.

So:

[tex]G = 2 * H = 2 * 400[/tex]

[tex]G = 800\ units[/tex]

Determining Missing Items from Computations Data for the California, Midwest, Northwest, and Texas divisions of Firefly Industries are as follows: Sales Operating Income Invested Assets Return on Investment Profit Margin Investment Turnover California $ 6,000,000 (a) (b) 16% 20% (c) Midwest (d) $1,512,000 (e) (f ) 12% 1.4 Northwest 13,750,000 (g) $11,000,000 17.5% (h) (i) Texas 5,250,000 840,000 3,500,000 (j) (k) (l) a. Determine the missing items, identifying each by the letters (a) through (l). Round profit margin to one decimal place and investment turnover to two decimal places.

Answers

aAnswer:

Note: See the lower part of the attached excel for the table for the answer.

Explanation:

In the attached excel file, the following calculations are done:

(a) Operating income = Sales * Profit margin = $6,000,000 * 20% = $1,200,000

(b) Invested assets = Operating income / Return on investment = $1,200,000 / 16% = $7,500,000

(c) Investment turnover = Return on investment / Profit margin = 16% / 20% = 0.80 times

(d) Sales = Operating income / Profit margin = 1,512,000.00 / 12% = $12,600,000

(e) Investment assets = Sales / Investment turnover = $12,600,000 / 1.40 = $9,000,000.00

(f) Return on investment = Investment turnover * Profit margin = 1.40 * 12% = 16.80%

(g) Operating income = Invested assets * Return on investment = $11,000,000 / 17.50% = $1,925,000

(h) Profit margin = (Operating income / Sales) * 100 = ($1,925,000 / $13,750,000) * 100 = 14.0%

(i) Investment turnover = Return on investment / Profit margin = 17.50% / 14.0% = 1.25 times

(j) Return on investment = (Operating income / Invested assets) * 100 = ($840,000 / $3,500,000) * 100 = 24.0%

(k) Profit margin = (Operating income / Sales) * 100 = ($840,000 / $5,250,000) * 100 = 16.0%

(l) Investment turnover = Return on investment / Profit margin = 24.0% / 16.0% = 1.50

King Electronics, a retailer of video equipment, sold two VCR's to Larson, a psychologist, for her personal use in her home. The sale to Larson was made on credit. King retained a security interest in the VCR's sold but did not file a financing statement. Mills, A creditor of Larson, subsequently filed an attachment on the VCR's. Mills has asserted that his lien on the two VCR's is superior to King's security interest because King failed to perfect his security interest. Decide.

Answers

Answer:

Mill's lien will prevail.

Explanation:

Generally speaking, King's security interest prevails over other the interests of unsecured creditors including credit card companies, etc. Bu tin this case, Mills had obtained a lien that was registered prior to King's security interest, therefore, a court would decide based on chronological order.

Advertising department expenses of $26,700 and purchasing department expenses of $46,700 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows.
Department Sales Purchase Orders
Books $180,400 1,290
Magazines 123,000 690
Newspapers 106,600 1,020
Total $410,000 3,000
Complete a table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.

Answers

Answer:

The advertising department expense allocated to each department are as follows:

Books Dept = $11,748

Magazines Dept = $8,010

Newspapers Dept = $6,942

Totals advertising department expenses allocated = $26,700

The purchasing department expenses allocated to each department are as follows:

Books Dept = $20,081

Magazines Dept = $10,741

Newspapers Dept = $15,878

Total purchasing department expenses allocated = $46,700

Explanation:

Note: See the attached excel for the completed table used in allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.

From the attached excel, the advertising department expense allocated to each department are as follows:

Books Dept = $11,748

Magazines Dept = $8,010

Newspapers Dept = $6,942

Totals advertising department expenses allocated = $26,700

From the attached excel, the purchasing department expenses allocated to each department are as follows:

Books Dept = $20,081

Magazines Dept = $10,741

Newspapers Dept = $15,878

Total purchasing department expenses allocated = $46,700

Shondura Inc. focuses on both local responsiveness and standardization in global business. The company typically begins with a strong emphasis in a single strategy and then works to minimize the downsides associated with that strategy as much as possible as they begin to implement the second strategy. Which of the following is best exemplified in this case?

a. A multidomestic strategy
b. A global strategy
c. An arbitrage strategy
d. A transnational strategy

Answers

Answer:

d. A transnational strategy

Explanation:

A transnational strategy refers to a set of plans and actions that are decided by the business to perform them beyond domestic borders. The plans are set to perform the actions across the international borders. By applying this set of strategy, the connection is established among the nations dealing with the same operation.  

In the give case, transnational strategy has been applied by Shondura Inc.

A town wishes to build a new school that will cost $15,000,000. The school is to be built in 10 years. The town will provide funding for the new school by depositing a uniform amount into an investment fund paying 5% per year, compounded annually. How much must be set aside in each of the 10 years to provide for the new school?

Answers

Answer:

Annual deposit= $1,192,568.62

Explanation:

Giving the following formula:

Future Value= $15,000,000

Number of periods= 10 years

Interest rate= 5% compounded annually

To calculate the annual deposit, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (15,000,000*0.05) / [(1.05^10) - 1]

A= $1,192,568.62

using a scale: Three boys Isaac ,Alex and Ken are standing in different parts of a field .Isaac is 100 metres north of Alex and Ken is 120 metres east of Alex .Find the compass bearing of Ken from Isaac​

Answers

Answer:

156 m South East of Isaac

Explanation:

This is going to be solved by using Pythagoras theorem

We have the adjacent of the triangle as the Eastern distance between Ken and Alex, and that is 120 m. We have the opposite side to be the Northern distance between Isaac and Alex to be 100 m

If so, then we know that the hypotenuse side is the distance between Isaac and Ken. Using Pythagoras, we know that

100² + 120² = x²

x² = 10000 + 14400

x² = 24400

x =√24400

x = 156.2 m

The compass bearing of Ken, from Isaac then is,

Ken is 156.2 m South East of Isaac

At year-end, Chief Company has a balance of $22,000 in accounts receivable of which $2,200 is more than 30 days overdue. Chief has a credit balance of $220 in the allowance for doubtful accounts before any year-end adjustments. Using the aging of accounts receivable method, Chief estimates that 1.0% of current accounts and 12% of accounts over thirty days are uncollectible. What is the amount of bad debt expense

Answers

Answer:

$242

Explanation:

If a company has a balance of $22,000 in accounts receivables of which $2,200 is more than 30days overdue, amount of receivables below 30days overdue

= $22,000 - $2,200

= $19,800

Allowance for doubtful debt

= (1.0% × $19,800 + 12% × $2,200)

= $198 + $264

= $462

Additional allowance required

= $462 - $220

= $242

This is the amount t of bad debts as the credit could be posted to allowance for

doubtful debt and the debit to bad debt account

Match the items with the appropriate definitions. Items which are not definitions will be used.
Barter Double coincidence of wants Money
Answer Bank
paper bills and coins
a situation where two individuals each want some good or service that the other can provide
trading one good for another without the use of money
whatever serves society in three functions: medium of exchange, store of value, and unit of account
an event that occurs in conjunction with an unrelated event
a situation in which money is used to facilitate economic transactions

Answers

Answer:

Double coincidence of wants - a situation where two individuals each want some good or service that the other can provide

Double coincidence of wants occurs when in a transaction between two or more individuals, each want to obtain the good or service that the other is offering.

Barter - trading one good for another without the use of money

In barter, people trade a good or service for another good or service, without the use of money as medium of exchange. An example of barter is trading a cow for a sheep.

Money - whatever serves society in three functions: medium of exchange, store of value, and unit of account

Money is any good that serves the three purposes of money, store of value to serve as a medium to save or to accumulate wealth, medium of exchange to trade goods and services, and unit of account to measure the value of goods and services under a common guide.

A Quality Analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is under control, package weight is normally distributed with a mean of twenty ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each:

Day Weight (ounces)
Monday 23 22 23 24
Tuesday 23 21 19 21
Wednesday 20 19 20 21
Thursday 18 19 20 19
Friday 18 20 22 20

What are the upper and lower control limits for these data?

a. UCL = 22.644 LCL = 18.556
b. UCL = 22.700 LCL = 18.500
c. UCL = 22.755 LCL = 18.642
d. UCL = 21.814 LCL = 19.300


Answers

Answer:

a. UCL = 22.664 LCL = 18.556

Explanation:

The sample mean for the given data is :

( 23 + 20 + 19 + 20 + 21 ) / 5 = 20.6

Upper control limit is :

Sample mean + standard deviation  

20.6 + 2  = 22.6

Lower Control Limit is :

Sample mean - Standard Deviation

20.6 - 2 = 18.6

Blue Point Company is formulating its marketing expense budget for the month of September. Sales in units for August amounted to 4,000; sales volume in September is expected to increase by 10%. So far for the current year, fixed marketing expense per month amounted to $5,000 of salaries and $1,500 of depreciation. Variable marketing expense amount to $.15 paid in cash in the month of sale. What is the estimated cash payment for marketing expense in the month of September

Answers

Answer:

See below

Explanation:

Computation of estimated cash payment expense is seen below

Variable expenses

Sales in unit for August 4,000

Sales in unit September 4,000 × 110% = 4,400

Total variable expense 4,400 × $0.15 = $660

Fixed expense per quarter

Salaries $5,000 × 3 = $15,000

Depreciation $1,500 × 3 = $4,500

Total = $19,500

Budget total = $20,160

Estimated cash payment = $20,160 - $4,500 = $15,660

Martha is looking into investing a portion of her recent bonus into the stock market. While researching different companies, she discovers the following standard deviations of one year of daily stock closing prices. Handy Prosthetics: Standard deviation of stock prices =$1.05 El Lobo Malo Incorporated: Standard deviation of stock prices =$9.82 Based on the data and assuming these trends continue, which company would give Martha a stable long-term investment?

Answers

Answer:

Martha

Based on the data and assuming these trends continue,

Investment in Handy Prosthetics is preferred as it would give Martha a stable long-term investment.

Explanation:

a) Data:

                                                          Handy         El Lobo Malo

                                                       Prosthetics    Incorporated

Standard deviation of stock prices = $1.05            $9.82

b) The above standard deviations measure the spread of the stock prices over their daily stock closing prices in one year.  The Handy Prosthetics' stock does not fluctuate as much as the El Lobo Malo's stock.  This reduced fluctuation in prices makes it a more stable investment than El Lobo Malo's stock.  Therefore, Martha should prefer the Handy's stock to the El Lobo Malo's stock.

A change in supply is illustrated by a movement along an existing supply curve


true or false

Answers

the correct answer is true.

The projected benefit obligation was $280 million at the beginning of the year and $300 million at the end of the year. Service cost for the year was $18 million. At the end of the year, there were no pension-related other comprehensive income accounts. The actuary’s discount rate was 5%. What was the amount of the retiree benefits paid by the trustee?

Answers

Answer:

$12 million

Explanation:

Calculation to determine the amount of the retiree benefits paid by the trustee

Beg PBO $280 million

Less En PBO ($300 million)

Add Service cost $18 million

Add Interest cost $14 million

(280million*5%)

Retiree benefits Paid by trustee $12 million

Therefore the amount of the retiree benefits paid by the trustee is $12 million

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