Answer:
c. $82,200
Explanation:
Calculation to determine what Seda's projected benefit obligation at December 31, 2017 was:
Actuarial estimate of projected benefit obligation at January 1, 2017 $72,000
Add Interest cost $7,200
Add Service costs for 2017 $18,000
Less Pension benefits paid during 2017 ($15,000)
Projected benefit obligation at December 31, 2017 $82,200
Theretore Seda's projected benefit obligation at December 31, 2017 was:$82,200
Kingston Manufacturing has 27,000 labor hours available for producing X and Y. Consider the following information:
Product X Product Y
Required labor time per unit (hours) 2 3
Maximum demand (units) 6,000 8,000
Contribution margin per unit $5 $6
Contribution margin per labor hour $2.50 $2
If Kingston follows proper managerial accounting practices, which of the following production schedules should the company set?
Product A Product B
A. 0 units 8,000 units
B. 1,500 units 8,000 units
C. 6,000 units 0 units
D. 6,000 units 5,000 units
E. 6,000 units 8,000 units
A. Option A.
B. Option B.
C. Option C.
D. Option D.
E. Option E.
The following costs are relevant to the decision situation cited except:____.
a. the cost of hiring a full-time staff attorney, in a decision to establish an in-house legal department or retain the services of a prominent law firm.
b. the remodeling cost of existing office space, in a firm's decision to stay at its current location or move to a new building.
c. the long-term salary costs demanded by Joe Torrez (a superstar) and Rip Moran (an average player) in baseball contract negotiations, in a decision that determines the amounts by which ticket prices must be raised.
d. the cost to enhance an airline's Web site, in a decision to expand existing service to either Salt Lake City or Phoenix.
e. the commissions that could be earned by a salesperson, in a decision that involves salesperson compensation methods (i.e., commissions or flat monthly salaries).
Answer and Explanation:
In the case when Smith follows proper accounting practice with respect to the managerial accounting so the production schedules should the company set is
Product A Product B
D. 6,000 units 5,000 units
D. Option D
In addition to this,
The costs i.e not relevant for the decision purpose is
D. the cost i.e. incurred for increase a website of an airline in a decision to diversify inherent service to Salt Lake City or Phoenix.
Dalia prefers the numbers in her excel document to show up as dollar amounts like “$5,234.15” instead of as numbers like “5234.15.” What is the most useful way for her to format that information?
Answer:
"5,234.15" is the most useful way
The most useful way for her to format that information is “$5,234.15”.
What is Excel?Microsoft Excel is a software package that is part of the Office product category for business applications. Users of Microsoft Excel can format, organize, and compute information in a spreadsheet.
It includes calculating or computation skills, charting tools, tables and charts, and the Visual Basic for Projects macro programming language.
Dalia provides dollar amounts like "$5,234.15" rather than numbers like "5234.15" in the preceding situation to provide unambiguous information about the locations of numbers that are ones, tens, hundreds, thousands, millions, billions, and so on.
Therefore, it can be concluded that "$5,234.15" is the most practical method for her to format that information.
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On January 1, Elias Corporation issued 10% bonds with a face value of $68,000. The bonds are sold for $65,960. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is
Answer:
the bond interest expense for the year ended December 31 of the first year is $7,004
Explanation:
The computation of the bond interest expense is shown below:
Interest expense ($68,000 × 10%) $6,800
Add: Amortization expense {($68,000 - $65,960) ÷ 10} $204
Total interest expense $7,004
Hence, the bond interest expense for the year ended December 31 of the first year is $7,004
Which of the following statements is not accurate descriptions of the business market? Mrs. Phillip, a retail buyer for Bloomingdale's, does all the shopping for her family at the same store. Wal-Mart has a contractual relationship with P&G to serve its customers efficiently. Goodyear tires deals globally with various suppliers of steel to make tires. Costco is a wholesale establishment that deals with various manufacturers.
Answer:
Mrs. Phillip, a retail buyer for Bloomingdale's, does all the shopping for her family at the same store.
Explanation:
The business market is the market where you can sell your product and services to the other businesses so it can be used as a raw material for the other business in order to manufacture the products. And, the other reason is to purchased the products and resell them.
So based on the given statements, the first option is considered as in the remaining statements there are business transactions but in this only one person i.e. retail buyer is considered
It is enough to describe the proposed business as a sole proprietorship in the business description
section. True or False?
Answer:
True
Explanation:
hope it helps have a great day
The Magnetron Company manufactures and markets microwave ovens. Currently, the company produces two models: full-size and compact. Production is limited by the amount of labor available in the general assembly and electronic assembly departments, as well as by the demand for each model. Each full-size oven requires 2 hours of general assembly and 2 hours of electronic assembly, whereas each compact oven requires 1 hour of general assembly and 3 hours of electronic assembly. In the current production period, there are 500 hours of general assembly labor available and 800 hours of electronic assembly labor available.
In addition, the company estimates that it can sell at most 220 full-size ovens and 180 compact ovens in the current production period. The earnings contribution per oven is $120 for a full-size oven and $130 for a compact oven. The company would like to find an earnings-maximizing production plan for the current production period.
Required:
Formulate the above problem as a linear optimization model
Answer:
Max: [tex]Z = 120x + 130y[/tex]
Subject to:
[tex]2x + y \le 500[/tex]
[tex]2x + 3y \le 800[/tex]
[tex]x \le 220[/tex]
[tex]y \le 180[/tex]
[tex]x,y \ge 0[/tex]
Explanation:
Given
Let:
[tex]x \to Units\ of\ full\ size[/tex]
[tex]y \to Units\ of\ compact\ size[/tex]
Required
Formulate a linear optimization model
Constraints for time:
For the general assembly (hours), we have the following parameters:
[tex]x \to 2[/tex]
[tex]y \to 1[/tex]
So, the expression is:
[tex]2x + y[/tex] --- (1)
For the electronic assembly (hours), we have the following parameters:
[tex]x\to 2[/tex]
[tex]y \to 3[/tex]
So, the expression is:
[tex]2x + 3y[/tex] --- (2)
Solving further [Time available]:
[tex]General\ Assembly \to 500[/tex]
[tex]Electronic\ Assembly \to 800[/tex]
So, (1) and (2) becomes:
[tex]2x + y \le 500[/tex]
[tex]2x + 3y \le 800[/tex]
Constraints for selling:
[tex]Full\ Size \to 220[/tex] --- at most
[tex]Compact \to 180[/tex] -- at most
The above can be represented as:
[tex]x \le 220[/tex]
[tex]y \le 180[/tex]
Earnings contribution:
[tex]Total\ Full\ Size \to 120[/tex]
[tex]Total\ Compact \to 130[/tex]
The objective function to be maximized can then be modelled as:
[tex]Z = 120x + 130y[/tex]
Sole Mates Inc. is planning a one-month campaign for July to promote sales of one of its two shoe products. A total of $100,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign:
Tennis Shoe Walking Shoe
Unit selling price $85 $100
Unit production costs:
Direct materials $19 $32
Direct labor 8 12
Variable factory overhead 7 5
Fixed factory overhead 16 11
Total unit production costs $50 $60
Unit variable selling expenses 6 10
Unit fixed selling expenses 20 15
Total unit costs $76 $85
Operating income per unit $9 $15
No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 7,000 additional units of tennis shoes or 7,000 additional units of walking shoes could be sold without changing the unit selling price of either product.
Required:
Prepare a differential analysis as of June 19, 2014, to determine whether to promote tennis shoes (Alternative 1) or walking shoes (Alternative 2).
Answer:
Sole Mates Inc.
Differential analysis:
Tennis Shoe Walking Shoe
Unit selling price $85 $100
Unit production costs:
Direct materials $19 $32
Direct labor 8 12
Variable factory overhead 7 5
Unit variable selling expenses 6 10
Total variable costs $40 $59
Contribution margin per unit $45 $41
Tennis Shoe Walking Shoe Difference
Alternative 1 Alternative 2
Total contribution margin $315,000 $287,000 $28,000
Advertising costs (100,000) (100,000) 0
Total income (loss) ($215,000) $187,000 $28,000
Promote the Tennis Shoes (Alternative 1) because it will bring in more contribution margin than Alternative 2.
Explanation:
a) Data and Calculations:
Budgeted advertising costs = $100,000
Tennis Shoe Walking Shoe
Unit selling price $85 $100
Unit production costs:
Direct materials $19 $32
Direct labor 8 12
Variable factory overhead 7 5
Fixed factory overhead 16 11
Total unit production costs $50 $60
Unit variable selling expenses 6 10
Unit fixed selling expenses 20 15
Total unit costs $76 $85
Operating income per unit $9 $15
How loss on sale of sports material is entered in Income and Expenditure Account? If sports material book value is $120 but sold at $50?
Answer: $70
Explanation:
The amount of loss on sale of sports material that is entered in Income and Expenditure Account will be the difference between the sports material book value and the sales price. This will be:
= $120 - $50
= $70
Therefore, the loss on sale of sports material is $70.
Sugar Cane Company processes sugar beets into three products. During September, the joint costs of processing were $150,000. Production and sales value information for the month were as follows: Product Units Produced Sales Value at Splitoff Point Separable costs Sugar 6,000 $40,000 $12,000 Sugar Syrup 4,000 35,000 32,000 Fructose Syrup 2,000 25,000 16,000 Required: Determine the amount of joint cost allocated to each product if the sales value at splitoff method is used.
Answer:
The description as per the given question is described below.
Explanation:
The given value is:
Joint costs of processing,
= $150,000
According to the question,
The ratio of sale value will be:
= [tex]40,000:35,000:25,000[/tex]
= [tex]8:7:5[/tex]
On adding we get,
= [tex]8+7+5[/tex]
= [tex]20[/tex]
hence,
The amount of joint cost allocated to each product will be:
Sugar,
= [tex]150000\times \frac{8}{20}[/tex]
= [tex]60,000[/tex] ($)
Sugar syrup,
= [tex]150000\times \frac{7}{20}[/tex]
= [tex]52,500[/tex] ($)
Fructose syrup,
= [tex]150000\times \frac{5}{20}[/tex]
= [tex]37,500[/tex] ($)
The joint cost of sugar, sugar syrup, and fructose syrup is $60,000, $52,500, and $37,500 respectively.
What is the sales value at the split-off method?The process where joint costs are assigned to joint products based on the sales value of the products at the split-off point.
Given:
Joint costs of processing=$150,000
Product Units Sales ValueSplitoff Point Separablecosts
1. Sugar $6,000 $40,000 $12,000
2. Sugar Syrup $4,000 $35,000 $32,000
3. Fructose Syrup $2,000 $25,000 $16,000
The ratio of sale value=
=40,000 : 35,000 : 25,000
= 8 : 7 : 5
On adding we get,
= 8+7+5
= 20
The amount of joint cost allocated to each product on basis of the Sales Value of Split-off Point will be:
1. Sugar= 1,50,000 X 8/20
=$60,000
2. Sugar syrup,= 1,50,000 X 7/20
=$52,500
3. Fructose syrup= 1,50,000 X 5/20
=$37,500
Therefore, the joint cost for each product on sales value at a split-off method for sugar, sugar syrup, and fructose syrup is $60,000,$52,500, and - respectively.
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Raphael lives in Detroit and runs a business that sells boats. In an average year, he receives $793,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Raphael does not operate this boat business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Manuel's costs in the following tab/e as either an implicit cost or an explicit cost of selling pianos.
a. The salary Manuel could earn if he worked as a financial advisor
b. The rental income Manuel could receive if he chose to rent out his showroom
c. The wholesale cost for the pianos that Manuel pays the manufacturer
d. The wages and utility bills that Manuel pays
Answer:
Implicit cost
The salary Manuel could earn if he worked as a financial advisor
b. The rental income Manuel could receive if he chose to rent out his showroom
explicit cost
c. The wholesale cost for the pianos that Manuel pays the manufacturer
d. The wages and utility bills that Manuel pays
Explanation:
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials.
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Only explicit cost is considered when calculating accounting profit while both explicit and implicit costs are considered in calculating economic profit.
Accounting profit= total revenue - explicit cost
Economic profit = accounting profit - implicit cost
If Manuel did not sell pianos, he would be working as a financial advisor, this is his next best option. Thus the salary he would have earned as a financial advisor is his explicit cost
If he did not use the showroom, he could have rented it out. Renting it out is his next best option. Thus the income from renting the showroom is his explicit cost
The wholesale cost of the pianos, wages and utility bills are monies actually expended in the course of running the business. Thus they are explicit costs
Helen has a meeting with a venture capitalist for a Series A round at a $10 million valuation. She has proprietary patents for the latest advancements in facial recognition, a team of five Stanford grads, and seed money from Andreessen Horowitz and Union Square Ventures. She has two enterprise customers. The VC has her interest piqued but declines to invest at this stage. Why? Group of answer choices Helen needs to further build out her team Helen should be raising a Series B, not A Helen needs better venture capitalists funding her project Helen needs more customers
Answer: Helen needs more customers
Explanation:
Even though the VC has her interest piqued but declines to invest at this stage, the reason is because of the fact that she has two enterprise customers.
The venture capitalist will not invest when there isn't enough customers as the VC may think that it's not worth investing in and doesn't want to make a loss. Therefore, Helen needs more customers.
After reading the paragraph below, answer the question that follows. Americans spend up to $100 billion annually for bottled water (41 billion gallons). The only beverages with higher sales are carbonated soft drinks. Recent news stories have highlighted the fact that most bottled water comes from municipal water supplies (the same source as your tap water), although it may undergo an extra purification step called reverse osmosis. Imagine two tanks that are separated by a membrane that's permeable to water, but not to the dissolved minerals present in the water. Tank A contains tap water and tank B contains the purified water. Under normal conditions, the purified water would cross the membrane to dilute the more concentrated tap water solution. In the reverse osmosis process, pressure is applied to the tap water tank to force the water molecules across the membrane into the pure water tank. If you shut off the system and pressure was no longer applied to tank A, you would expect
Zintendo, Inc., produces and sells a single product, the Zintendo Stitch gaming console, whose selling price is $400.00 per gaming console and whose variable costs are $224.00 per gaming console. The company's fixed costs are $5,935,750 per year. The current sales volume for the year ended 12/31/2020 is 36,300 gaming consoles.
Required:
a. Prepare a contribution margin income statement for the year ended 12/31/2020 at the current sales volume.
b. Determine the break-even point for the year.
c. What is the company's margin of safety for the year?
Answer and Explanation:
a. The preparation of the contribution margin income statement is presented below
Sales (36,300 × $400) $14,520,000
Less: variable cost (36,300 × $224) $8,131,200
Contribution margin $6,388,800
Less: fixed cost - $5,935,750
net income $453,050
b. The break even point is
In units
= Fixed cost ÷ contribution margin per unit
= $5,935,750 ÷ ($400 - $224)
= 33,726 units
In dollars
= Fixed cost ÷ contribution margin ratio
= $5,935,750 ÷ ($176 ÷ $400)
= $13,490,341
c. The margin of safety
In units
= Total sales units - break even units
= 36,300 - 33,726
= 2,574 units
In dollars
= Total sales - break even sales
= $14,520,000 - $13,490,341
= $1,029,659
Which descriptions are examples of Logistics Planning and Management Services workers? Check all that apply.
Lucretia supervises workers who organize the products in a warehouse.
Jeff organizes the redevelopment of areas contaminated by pollution.
Beatrice sells tickets to passengers for trips, and advises them about travel routes.
Stephanie inspects vehicles and equipment to make sure they meet safety standards.
Marcel oversees the transportation activities of an organization.
Armand analyzes procedures for shipping and storage to identify ways to make them more efficient.
Answer:
A,E,F
Explanation:
Brainliest Please
Answer:
A, E, F
Explanation:
Hope this helps, have a great day (;
Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, a short- term note payable is used to obtain cash for current use The following transactions were selected from those occurring during the year
A. On January 10, purchased merchandise on credit for $30,000. The company uses a perpetual inventory system.
B. On March 1, borrowed $64,000 cash from City Bank and signed a promissory note with a face amount of $64,000, due at the end of six months, accruing interest at an annual rate of 8.50 percent, payable at maturity.
Required:
1. For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation.
2. What amount of cash is paid on the maturity date of the note?
3. Indicate the impact of each transaction (increase, decrease, and NE for no effect) on the debt-to-assets ratio, Assume Bryant Company had $300,000 in total liabilities and 500,000 in total assets, yielding a debt-to-assets ratio of 0.60, prior to each transaction.
Answer:
1. Finance charge = $2,720
2. Amount of cash paid = $66,720
3. Debt to Assets Ratio on January 10 is 0.62; and the impact is an increase from 0.60. Aiso, Debt to Assets Ratio on March 1 is 0.67; and the impact is an increase from 0.62.
Explanation:
1. For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation.
Note: See part 1 of the attached excel file for the requirements of this question.
In the attached excel file, the amount of -$2,720 that appears under the Stockholder's Equity is the finance charge calculated as follows:
Finance charge = Amount borrowed * Interest rate * (Number of months to the promissory note due date / Number of months in a year) = $64,000 * 8.50% * (6 / 12) = $2,720
2. What amount of cash is paid on the maturity date of the note?
Note: See part 2 of the attached excel file for the calculation of the amount of cash is paid on the maturity date of the note.
From the attached excel file, we have:
Amount of cash paid = $66,720
3. Indicate the impact of each transaction (increase, decrease, and NE for no effect) on the debt-to-assets ratio, Assume Bryant Company had $300,000 in total liabilities and 500,000 in total assets, yielding a debt-to-assets ratio of 0.60, prior to each transaction.
Note: See part 3 of the attached excel file for the debt-to-assets ratios and the indication of impacts.
From the attached excel file, we have:
Debt to Assets Ratio on January 10 is 0.62; and the impact is an increase from 0.60.
Debt to Assets Ratio on March 1 is 0.67; and the impact is an increase from 0.62.
The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $20 million, it currently uses only common equity, it has no future plans to use preferred stock in its capital structure, and its federal-plus-state tax rate is 25%. The CFO has estimated next year's EBIT for three possible states of the world: $5.5 million with a 0.2 probability, $2.6 million with a 0.5 probability, and $600,000 with a 0.3 probability.
Required:
Calculate Neal's expected ROE, standard deviation, and coefficient of variation.
Answer:
Neal's expected ROE = 4.62%
Neal's standard deviation = 2.46%
Neal's coefficient of variation = 0.53
Explanation:
Note: See the attached excel file for the calculations of Neal's Expected ROE and Deviation.
From the attached excel, we can have:
Neal's expected ROE = Total expected ROE = 0.0462, or 4.62%
Neal's standard deviation = (Total Deviation)^0.5 = 0.00060736^0.5 = 0.0246, or 2.46%
Neal's coefficient of variation = Neal's standard deviation / Neal's expected ROE = 2.46% / 4.62% = 0.53
On January 14, at the end of the second week of the year, the totals of Castle Company's payroll register showed that its store employees' wages amounted to $33,482 and that's warehouse wages amounted to $13,560. Withholdings consisted of federal income taxes, $5,110, employer's Social Security taxes at the rate of 6.2 percent, and employees' Social Security taxes at a rate of 6.2 percent. Both the employer's and employees' Social Security taxes are based on the first $118,500, and no employee has reached the limit. Additional withholdings were Medicare taxes at the rate of 1.45 percent on all earnings and charitable contributions withheld, $845.
Required:
a. Calculate the amount of Social Security and Medicare taxes to be withheld and write the general journal entry to record the payroll. Round answers to two decimal places.
b. Write the general journal entry to record the employer's payroll taxes assuming that the federal unemployment tax is 0.6 percent of the first $7,000, that the state unemployment tax is 5.4 percent of the same base, and that no employee has surpassed the $7,000 limit.
Answer:
a)
Dr Store wages expense 33,482
Dr Warehouse wages expense 13,560
Cr Federal income tax withholdings payable 5,110
Cr Social security taxes withheld payable 2,916.60
Cr Medicare taxes withheld payable 682.11
Cr Charitable contributions withheld payable 845
Cr Wages payable 37,488.29
b)
Dr Payroll taxes expense 6,421.23
Cr Social security taxes payable 2,916.60
Cr Medicare taxes payable 682.11
Cr SUTA taxes payable 2,540.27
Cr FUTA taxes payable 282.25
The employment relationship is a contractual relationship between the employer and the employee.
a. True
b. False
Answer:
a. true
Explanation:
I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 12 lbs. 8 lbs. $7.25 Sugar 10 lbs. 14 lbs. 1.40 Standard labor time 0.50 hr. 0.60 hr. Dark Chocolate Light Chocolate Planned production 4,700 cases 11,000 cases Standard labor rate $15.50 per hr. $15.50 per hr. I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results: Dark Chocolate Light Chocolate Actual production (cases) 5,000 10,000 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $7.33 140,300 Sugar 1.35 188,000 Actual Labor Rate Actual Labor Hours Used Dark chocolate $15.25 per hr. 2,360 Light chocolate 15.80 per hr. 6,120
Required:
1. Prepare the following variance analyses for both chocolates and the total, based on the actual results and production levels at the end of the budget year. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
a. Direct materials price variance, direct materials quantity variance, and total variance.
b. Direct labor rate variance, direct labor time variance, and total variance.
2. The variance analyses should be based on the amounts at volumes. The budget must flex with the volume changes. If the volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for the production. In this way, spending from volume changes can be separated from efficiency and price variances.
Explanation:
For DARK CHOCOLATE A. DIRECT LABOR RATE VARIANCE.= (Stadard Rate- Actual Rate) * Actual Hour DIRECT LABOR RATE VARIANCE.= (15.50-15.25) * 2360 DIRECT LABOR RATE VARIANCE.= $ 590 Favorable A. DIRECT LABOR TIME VARIANCE = ( Standard Hour - Actual Hour) * Standard Rate DIRECT LABOR TIME VARIANCE = (5000*0.50 - 2360) * 15.50 DIRECT LABOR TIME VARIANCE = ( 2500 - 2360) * 15.50 DIRECT LABOR TIME VARIANCE = $ 2170 Favorable A. DIRECT LABOR TOTAL VARIANCE= ( Standard Hour * Standard Rate - Actual Hour* Actual Rate) DIRECT LABOR TOTAL VARIANCE= ( 2500*15.50 - 2360*15.25) DIRECT LABOR TOTAL VARIANCE= $ 2760 Favorable For LIGHT CHOCOLATE A. DIRECT LABOR RATE VARIANCE.= (Stadard Rate- Actual Rate) * Actual Hour DIRECT LABOR RATE VARIANCE.= (15.50-15.80) * 6120 DIRECT LABOR RATE VARIANCE.= $ 1836 Unfavorable A. DIRECT LABOR TIME VARIANCE = ( Standard Hour - Actual Hour) * Standard Rate DIRECT LABOR TIME VARIANCE = (10000*0.60 - 6120) * 15.50 DIRECT LABOR TIME VARIANCE = ( 6000 - 6120) * 15.50 DIRECT LABOR.
I'm dealing with "internal economies of scale". We are considering monopolistic competition as an example. We assumed that firms are symmetric: they face the same demand function and have the same cost function.
Why do firms falling in this situation, have different marginal cost functions? Why is it true that some are well performing and some are not?
Answer:
The concept of Micro-Economics are the elasticity of demand, marginal costs, the ... firm. ME deals with Demand analysis, Forecasting, Production function, Cost ... same. Because this is the world of competition and it has to be faced with all the possible options. 5. ... When we consider the demand for a commodity by all the.
"Ayres Services acquired an asset for $80 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset’s cost is depreciated by MACRS. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: ($ in millions) 2021 2022 2023 2024 Pretax accounting income $ 330 $ 350 $ 365 $ 400 Depreciation on the income statement 20 20 20 20 Depreciation on the tax return (25 ) (33 ) (15 ) (7 ) Taxable income $ 325 $ 337 $ 370 $ 413 Required: For December 31 of each year, determine (a) the cumulative temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. (Leave no cell blank, enter "0" wherever applicable. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)"
a. The cumulative temporary book-tax difference for the depreciable asset are as follows:
December 31, 2021 = $60 million
December 31, 2022 = $40 million
December 31, 2023 = $20 million
December 31, 2024 = $0
b. The balance to be reported in the deferred tax liability account are as follows.
December 31, 2021 = $15 million
December 31, 2022 = $10 million
December 31, 2023 = $5 million
December 31, 2024 = $0
Explanation:
Note: See the attached excel file for the calculation of cumulative temporary book-tax difference for the depreciable asset and the balance to be reported in the deferred tax liability account for December 31 of years 2021, 2022, 2023 and 2024 in bold red color.
In the attached excel file, the following formula are used:
Cumulative Temporary differences at December 31 of the current year = Cumulative Temporary differences at December 31 of the previous year + (Depreciation on the tax return at December 31 of the current year - Depreciation on the income statement at December 31 of the current year)
Balance to be reported in deferred tax liability account at December 31 of the current year = Cumulative Temporary differences at December 31 of the current year * Tax rate
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 10.5 percent for the next three years, with the growth rate falling off to a constant 5.4 percent thereafter. If the required return is 10.6 percent and the company just paid a dividend of $5.00, what is the current share price
Answer:
Current share price = $116.04
Explanation:
Note: See the attached file for the calculation of present values (PV) for year 1 to 3 dividends.
From the attached excel file, we have:
Previous year dividend in year 1 = Dividend just paid = $5
Total of dividends from year 1 to year 3 = $14.97289157241870
Year 3 dividend = $6.746163125
Therefore, we have:
Year 4 dividend = Year 3 dividend * (100% + Dividend growth rate in year 4) = $6.746163125 * (100% + 5.4%) = $7.11045593375
Share price at year 3 = Year 4 dividend / (Rate of return - Perpetual dividend growth rate) = $7.11045593375 / (10.6% - 5.4%) = $136.7395371875
PV of share price at year 3 = Price at year 3 / (100% + Required return)^Number of years = $136.7395371875 / (100% + 10.6%)^3 = $101.07150317234
Therefore, we have:
Current share price = Total of dividends from year 1 to year 3 + PV of share price at year 3 = $14.97289157241870 + $101.07150317234 = $116.04
Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500. During May, a summary of source documents reveals the following.
Job Number Materials Requisition Slips Labor Time Tickets
429 $2,500 $1,900
430 3,500 3,000
431 4,400 $10,400 7,600 $12,500
General use 800 1,200
$11,200 $13,700
Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month.
1. Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429.
2. Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets.
Answer:
Stine Company
1. Summary Journal Entries:
Debit Work in Process $10,400
Credit Materials $10,400
To record materials requisitioned for production.
Debit Work in Process $12,500
Credit Direct Labor $12,500
To record direct labor time tickets.
Debit Work in Process $7,500
Credit Manufacturing overhead $7,500
To record manufacturing overhead applied to production.
Debit Finished goods inventory $7,540
Credit Work in Process $7,540
To record the transfer of Job No. 429 to finished goods inventory.
2. Work in Process Inventory Control
Account Titles Debit Credit
Beginning balance $3,500
Direct materials 10,400
Direct labor 12,500
Overhead 7,500
Finished Goods Inventory $7,540
Ending Balance 26,360
Job Sheets Job 429 Job 430 Job 431 Total
Beginning WIP $2,000 $1,500 $3,500
Direct materials 2,500 3,500 $4,400 10,400
Direct labor 1,900 3,000 7,600 12,500
Manufacturing overhead (60%) 1,140 1,800 4,560 7,500
Finished Goods Inventory $7,540 (7,540)
Work in Process $9,800 $16,560 $26,360
Explanation:
a) Data and Computations:
Balance in Work in Process Inventory = $3,500
Job No. 429 $2,000
Job No. 430 $1,500
Job Materials Labor Time
Number Requisition Slips Tickets
429 $2,500 $1,900
430 3,500 3,000
431 4,400 $10,400 7,600 $12,500
General use 800 1,200
Total $11,200 $13,700
Total manufacturing overhead:
Indirect materials $800
Indirect labor $1,200
Total $2,000
At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $45. A foreign wholesaler offers to buy 3,000 units at $25 each. Bargain Electronic will incur special shipping costs of $3 per unity. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronic would realize by accepting the special order.
Reject Order Accept Order Net Income Increase (Decrease)
Revenues
Costs-Manufacturing
Shipping
Net income
The special order should be :__________
Answer:
The special order should be : Accepted
Explanation:
Analysis of whether or not to accept special order
Revenues (3,000 x $25) $75,000
Less Variable expenses :
Costs - Manufacturing (3,000 x $20) ($60,000)
Shipping (3,000 x $3) ($9,000)
Net Income $6,000
Conclusion :
Since Net Income has increased by $6,000 as a result of special order, it should be accepted
In wintry conditions, highway safety is improved by treating road services with substances that will provide traction and/or melt snow and ice. Sand and rock salt are two widely used substances. Recently, a combination of beet juice and rocksalt is being used in some parts of the country to treat road surfaces. Suppose you have been asked to provide a list of factors to consider for a switch from rocksalt alone to using a combination of beet juice and rocksalt. Name the major considerations you would take into account in making a decision in the following categories: cost considerations, environmental considerations, both positive and negative, and other considerations.
Answer:
There will be cost consideration, economic consideration, environmental consideration, human factors and social factors.
Explanation:
There should be most important consideration which the highway authorities should analyze is cost. The authorities should identify the additional cost which will need to be incurred in order to use the combination of beet juice and rock salt. There should be reliability considered that the road are not affected with the use of beet juice and there is no breakage on the roads. The environment is not affected with the use of these material.
Here is a linear demand function: Q = 10 -0.5P. Find its price function by inverting the demand function. Then find its total revenue function by multiplying through by Q. The linear demand function Q = 400 -250P inverts into the price function P = 1.6 -0.004Q. Multiplying this by Q gives its total revenue function TR = 1.6Q -0.004. Evaluate the following expression.
Y = 5(2X + 3)2 -2X2
Answer:
[tex]P = 20 - 2Q[/tex]
Explanation:
[tex]Q = 10 - 0.5P[/tex]
Price function can be estimated by inverting the demand function.
[tex]Q = 10 - 0.5P \\\\0.5P = 10 - Q\\P = 10/0.5 - Q/0.5 \\P = 20 - 2Q[/tex]
This is the price function.
Total revenue function can be estimated using the given formula,
[tex]TR = P*Q \\ = (20 - 2Q) Q \\ = 20Q - 2Q^2[/tex]
The linear demand function is given by,
[tex]Q = 400 - 250P \\[/tex]
Price function is given by,
[tex]P = 1.6 - 0.004Q \\[/tex]
Total revenue function is thus given by,
[tex]TR = P*Q \\ = 1.6Q - 0.004Q^2[/tex]
[tex]Y = 5(2X+3)^2 - 2X^2 \\Y = 5(4X^2 + 9 + 12X) - 2X^2\\Y = 20X^2 + 45 + 60X - 2X^2\\Y = 18X^2 + 45 + 60X \\[/tex]
The derivative of Y with respect to x is,
[tex]dY/dX = 36X + 60\\[/tex]
Equating this equal to 0 we get,
[tex]36X + 60 = 0 \\36X = -60 \\X = -10/6 \\\\X= -1.66[/tex]
Marjorie Knaus, an architect, organized Knaus Architects on January 1, 2018. During the month, Knaus Architects completed the following transactions:
A. Issued common stock to Marjorie Knaus in exchange for $30,000.
B. Paid January rent for office and workroom, $2,500.
C. Purchased used automobile for $28,500, paying $6,000 cash and giving a note payable for the remainder.
D. Purchased office and computer equipment on account, $8,000.
E. Paid cash for supplies, $2,100.
F. Paid cash for annual insurance policies, $3,600.
G. Received cash from client for plans delivered, $9,000.
H. Paid cash for miscellaneous expenses, $2,600.
I. Paid cash to creditors on account, $4,000.
J. Paid installment due on note payable, $1,875.
K. Received invoice for blueprint service, due in February, $5,500.
L. Recorded fees earned on plans delivered, payment to be received in February, $31,400.
M. Paid salary of assistants, $6,000. N. Paid gas, oil, and repairs on automobile for January, $1,300.
Instructions
1. Record these transactions directly in the following T accounts, without journalizing: Cash, Ac-counts Receivable, Supplies, Prepaid Insurance, Automobiles, Equipment, Notes Payable, Ac¬counts Payable, Common Stock, Professional Fees, Salary Expense, Blueprint Expense, Rent Expense, Automobile Expense, Miscellaneous Expense. To the left of the amount entered in the accounts, place the appropriate letter to identify the transaction.
2. Determine account balan
Answer:
Knaus Architects
T-accounts:
Cash
Account Titles Debit Credit
Common stock A. $30,000
Rent Expense B. $2,500
Automobiles, Equipment C. 6,000
Supplies E. 2,100
Prepaid Insurance F. 3,600
Accounts Receivable G. 9,000
Miscellaneous Expenses H. 2,600
Accounts Payable I. 4,000
Notes Payable J. 1,875
Salary Expense M. 6,000
Automobiles Expense N. 1,300
Balance $9,025
Total $39,000 $39,000
Accounts Receivable
Account Titles Debit Credit
Cash G. $9,000
Professional Fees L. 31,400
Balance $22,400
Supplies
Account Titles Debit Credit
Cash E. $2,100
Prepaid Insurance
Account Titles Debit Credit
Cash F. $3,600
Automobiles, Equipment
Account Titles Debit Credit
Notes Payable C. $22,500
Cash C. 6,000
Accounts Payable D. 8,000
Balance $36,500
Notes Payable
Account Titles Debit Credit
Automobiles, Equipment C. $22,500
Cash J. $1,875
Balance $20,625
Accounts Payable
Account Titles Debit Credit
Automobiles, Equipment D. $8,000
Cash I. $4,000
Blueprint Expense K. 5,500
Balance $9,500
Common Stock
Account Titles Debit Credit
Cash A. $30,000
Professional Fees
Account Titles Debit Credit
Accounts Receivable L. $31,400
Salary Expense
Account Titles Debit Credit
Cash M. $6,000
Blueprint Expense
Account Titles Debit Credit
Accounts Payable K. $5,500
Rent Expense
Account Titles Debit Credit
Cash B. $2,500
Automobile Expense
Account Titles Debit Credit
Cash N. $1,300
Miscellaneous Expense
Account Titles Debit Credit
Cash H. $2,600
Trial Balance
As of January 31, 2018:
Account Titles Debit Credit
Cash $9,025
Accounts receivable 22,400
Supplies 2,100
Prepaid Insurance 3,600
Automobiles, Equipment 36,500
Notes Payable $20,625
Accounts Payable 9,500
Common Stock 30,000
Professional Fees 31,400
Salary Expense 6,000
Blueprint Expense 5,500
Rent Expense 2,500
Automobiles Expense 1,300
Miscellaneous Expense 2,600
Totals $91,525 $91,525
Explanation:
a) Data and Transaction Analysis:
A. Cash $30,000 Common Stock
B. Rent Expense $2,500 Cash $2,500
C. Automobiles, Equipment $28,500 Cash $6,000 Notes Payable $22,500
D. Automobiles, Equipment $8,000 Accounts Payable $8,000
E. Supplies $2,100 Cash $2,100
F. Prepaid Insurance $3,600 Cash $3,600
G. Cash $9,000 Accounts Receivable $9,000
H. Miscellaneous expenses, $2,600 Cash $2,600
I. Accounts Payable $4,000 Cash $4,000
J. Notes Payable $1,875 Cash $1,875
K. Blueprint Expense $5,500 Accounts Payable $5,500
L. Accounts Receivable $31,400 Professional Fees $31,400
M. Salary Expense $6,000 Cash $6,000
N. Automobiles Expense $1,300 Cash $1,300
As of January 31, 2018:
Account Titles Debit CreditCash $9,025Accounts receivable 22,400Supplies 2,100Prepaid Insurance 3,600Automobiles, Equipment 36,500Notes Payable $20,625Accounts Payable 9,500Common Stock 30,000Professional Fees 31,400Salary Expense 6,000Blueprint Expense 5,500Rent Expense 2,500Automobiles Expense 1,300Miscellaneous Expense 2,600Totals $91,525 $91,525 2. Data and Transaction Analysis:A. Cash $30,000 Common StockB. Rent Expense $2,500 Cash $2,500C. Automobiles, Equipment $28,500 Cash $6,000 Notes Payable $22,500D. Automobiles, Equipment $8,000 Accounts Payable $8,000E. Supplies $2,100 Cash $2,100F. Prepaid Insurance $3,600 Cash $3,600G. Cash $9,000 Accounts Receivable $9,000H. Miscellaneous expenses, $2,600 Cash $2,600I. Accounts Payable $4,000 Cash $4,000J. Notes Payable $1,875 Cash $1,875K. Blueprint Expense $5,500 Accounts Payable $5,500L. Accounts Receivable $31,400 Professional Fees $31,400M. Salary Expense $6,000 Cash $6,000N. Automobiles Expense $1,300 Cash $1,300Learn more about:
https://brainly.com/question/14670286
Step 1:
Enter the following entries for the month of August. A. Purchased raw materials on account: $3,100. B. Selling and Administrative expenses incurred and paid: $1,200. C. Used direct materials: $3,900. D. Used indirect materials: $300. E. Manufacturing wages incurred totaled $4,000, of which 90% was direct labor and 10% was indirect labor. F. Incurred other actual factory overhead on account: $1,300. G. Factory Overhead was allocated to Work in Process Inventory at a predetermined overhead allocation rate of 60% of Direct Labor costs incurred during August. H. The cost of product completed: $10,000. I. Sales on account: $17,500. The cost of the units sold was $9,500.
Step 2:
Adjust for over or underallocated overhead.
Once you have entered the journal entries in Step 1 above, prepare and enter the necessary adjusting entry to correct for the overallocated or underallocated Factory Overhead. This entry should be dated "August 31, 2017." For the "Description," enter "Journal Entry J."
Answer:
Step 1
Item A
Debit : Raw Materials $3,100
Credit : Accounts Payable $3,100
Item B
Debit : Selling and Administrative expenses $1,200
Credit : Cash $1,200
Item C
Debit : Work in Process - Direct Materials $3,900
Credit : Raw Materials $3,900
Item D
Debit : Work in Process -Indirect Materials $300
Credit : Raw Materials $300
Item E
Debit : Work in Process - Direct Labor $3,600
Debit : Work in Process - Indirect Labor $400
Credit : Wages Payable $4,000
Item F
Debit : Factory overheads $1,300
Credit : Accounts Payable $1,300
Item G
Debit : Work in Process - Overheads $2,160
Credit : Overheads $2,160
Item H
Debit : Finished Goods Inventory $10,000
Credit : Work in Process Inventory $10,000
Item I
Debit : Accounts Receivable $17,500
Debit : Cost of Sales $9,500
Credit : Sales Revenue $17,500
Credit : Inventory $9,500
Step 2
Date : August 31, 2017
Description : Journal Entry J
Debit : Overheads $160
Credit : Cost of Sales $160
Explanation:
For step 1
If expenses are incurred, Debit the expense and credit Cash if cash was paid or Credit Accounts Payable if there was no immediate cash payment.
Ensure all manufacturing costs incurred are accumulated in the appropriate Work in Process Account.
Remember to record the corresponding cost of sales journal following the sale of completed units.
For step 2
If Actual overheads > Applied overheads, we have overheads under-applied,
and if Applied overheads > Actual overheads, we have over-applied overheads
Hence determine amounts of Actual and Applied overheads first :
Actual overheads calculation :
Indirect materials $300
Indirect labor $400
Other overheads $1,300
Total $2,000
Applied overheads :
Applied overheads = $2,160
therefore,
Over-applied overheads = $2,160 - $2,000 = $160
The cost of sales is reduced by the amount of over-applied overheads
A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $3.80 per unit and fixed overhead costs of $74,000. The company incurred total overhead costs of $209,800 while operating at a volume of 40,000 units. The total controllable cost variance is:Multiple Choice$16,200 unfavorable.$10,000 favorable.$2,800 unfavorable.$2,800 favorable.$16,200 favorable.
Answer:
$16,200 favorable
Explanation:
The computation of the total controllable cost variance is shown below:
= Budgeted overhead - actual overhead
= (40,000 units × $3.80 + $74,000) - $209,800
= ($152,000 + $74,000) - $209,800
= $226,000 - $209,800
= $16,200 favorable
Hence, the total controllable cost variance is $16,200 favorable
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual’s investments.
Q1. Refer to Fact Pattern 17-A1. With respect to Mutual’s duties, Neil’s performance most likely
a. discharges Mutual from the contract.
b. has no effect on Mutual’s performance.
c. increases Mutual’s duties under the contract.
d. suspends Mutual’s duty to perform.
Q2. Refer to Fact Pattern 17-A1. Neil’s performance is most likely
a. a material breach.
b. a minor breach.
c. Mutual’s breach.
d. no breach.
Answer:
Q1 : a. discharges mutual from the contract.
Q2 : a. a material breach
Explanation:
Neil is hired by Mutual company for a two year contract. Neil has certain duties which he has to fulfill during the employment term. Neil is often absent without any proper explanation and reason. This is against the term of employment contract. When he is in the office he is not attentive and is not able to manage the mutual investments. Neil is doing a material breach since he is not fulfilling the basic requirements.