Answer:
Sales mix variance= $71,400F
Explanation:
A sales mix variance occurs when products are sold in a mix different from the standard mix. It can be calculated as follows:
Step 1: Actual total quantity sold = 1,820 + 980 =2,800
Step 2: Divide the actual total quantity sold into standard mix
Standard- 2160/2160+54)×2,800=2,240
Super -(540/2160+540)×2,800=560
Step 3: calculate mix variance as tabulated below
Product Std mix Actual mix Mix var Cont. Magin Mix Vari
Standard 2,240 1,820 420U 80 33,600 U
Super 560 980 420 F 250 105,000 F
Variance 71,400F
Sales mix variance= $71,400F
On January 1 of this year, Nowell Company issued bonds with a face value of $240,000 and a coupon rate of 6.0 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. When the bonds were sold, the annual market rate of interest was 6.0%.
1. What was the issue price on January 1 of this year?
2. What amount of interest expense should be recorded on June 30 and December 31 of this year?
3. What amount of cash is owed to investors on June 30 and December 31 of this year?
4. What is the book value of the bonds on December 31 of this year, December 31 of next year?
Answer:
1. What was the issue price on January 1 of this year?
since the coupon rate was 6% and the market rate was the same, the bonds will be sold at par, so their issue price = $240,000
2. What amount of interest expense should be recorded on June 30 and December 31 of this year?
interest expense = coupon rate = $7,200 (for both June 30 and December 31)
3. What amount of cash is owed to investors on June 30 and December 31 of this year?
Face value = $240,000
4. What is the book value of the bonds on December 31 of this year, December 31 of next year?
Face value = $240,000
The issue price is $240,000, interest expenses will be $7,200 each time. the company owes the investor the interest and the book value is $240,000.
What is face value?Face value is the original cost with which the shares are shown/ registered on the stock exchange. It is the amount that the company has to pay to the holder of the bonds in maturity, it is the par value for bonds.
1. The issue price of 6% coupon rate bonds is $240,000.
2. The amount of interest expense that should be recorded on June 30 and December 31
$240,000 X 6%=$14,400annually
but it is paid semi-annually so=$14,400/2= $7,200 for each time
3. The amount owed to the investor by the company will be the interest amount i.e $7,200 each on June 30 and December 31.
4. The book value of the bond will be the face value for which it was issued i.e $240,000.
Therefore the above statements aptly explain the facts.
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Bill Blumberg owns an auto parts business called Bill's Auto Parts. The following transactions took place during July of the current year.
July 5 Purchased merchandise on account from Wheeler Warehouse, $4,300.
8 Paid freight charge on merchandise purchased, $230.
12 Sold merchandise on account to Big Time Spoiler, $3,500. The merchandise
cost $2,500.
15 Received a credit memo from Wheeler Warehouse for merchandise, $670.
22 Issued a credit memo to Big Time Spoiler for merchandise returned, $820.
The cost of the merchandise is $550.
Required:
1. Journalize the above transactions in a general journal using the periodic inventory method.
2. Journalize the above transactions in a general journal using the perpetual inventory method.
Answer:
The solution to these question is defined in the attached file please find it.
Explanation:
Please help me to solve this question.
Answer:
the reproduction in which fertilization takes place is called sexual reproduction.ii . multiple fission
hope it is helpful to you
Ellis Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Raw materials purchased on account $475,000 Raw materials (all direct) requisitioned for use in production $476,000 Direct labor cost $640,000 Manufacturing overhead: Indirect labor cost $174,000 Other manufacturing overhead costs incurred $498,000 Cost of goods manufactured $1,469,000 Cost of goods sold (unadjusted) $1,430,000 6. The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:
Answer:
It is the Cost of Goods Manufactured that should be transferred to the Finished Goods account. As both of them are asset account, adding to the Finished Goods account would debit it and taking from the Work in Process account would credit it.
Date Account Title Debit Credit
XX-XX-XXX Finished Goods $1,469,000
Work in Process $1,469,000
Exercise 8-4A (Static) Determining sales and variable cost volume variances LO 8-3 Cherokee Manufacturing Company established the following standard price and cost data. Sales price $ 12.00 per unit Variable manufacturing cost $ 7.20 per unit Fixed manufacturing cost $ 3,600 total Fixed selling and administrative cost $ 1,200 total Cherokee planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units. Required Determine the sales and variable cost volume variances. Classify the variances as favorable (F) or unfavorable (U). Determine the amount of fixed cost that will appear in the flexible budget. Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity.
Answer:
Cherokee Manufacturing Company
a. Sales volume variance is:
= $2,400 F
b. Variable cost volume variance is:
= $1,440 U
c. Fixed cost in the flexible budget = $4,800
d. Fixed cost per unit:
1. Planned activity = $2.40
2. Actual activity = $2.18
Explanation:
a) Data and Calculations:
Standard price and cost data:
Sales price $ 12.00 per unit
Variable manufacturing cost $ 7.20 per unit
Fixed manufacturing cost $ 3,600 total
Fixed selling and administrative cost $ 1,200 total
Planned production and sales = 2,000 units
Actual production and sales = 2,200 units
Sales volume variance = Actual sales - Standard sales multiplied by Standard price
= 2,200 - 2,000 * $12
= 200 * $12
= $2,400 F
Variable cost volume = Actual production - Standard production multiplied by Standard Variable Cost
= 200 * $7.20
= $1,440 U
Flexible fixed costs:
Fixed manufacturing cost = $ 3,600 total
Fixed selling and administrative cost = $ 1,200 total
Total fixed costs = $4,800
Fixed cost per unit:
Planned activity = $2.40 ($4,800/2,000)
Actual activity = $2.18 ($4,800/2,200)
Park Co. is considering an investment that requires immediate payment of $27,215 and provides expected cash inflows of $8,400 annually for four years. Assume Park Co. requires a 8% return on its investments. 1-a. What is the net present value of this investment
Answer:
the net present value is $606.64
Explanation:
The computation of the net present value is shown below:
But before that the present value of annual cash inflows is to be determined i.e.
Present value = annual cash flows × PVIFA(8%,4years)
= $8,400 × 3.3121
= $27,821.64
Now
Net present value = Present value of cash flows - initial investment
= $27,821.64 - $27,215
= $606.64
Hence, the net present value is $606.64
The common stock of Dayton Repair sells for $43.19 a share. The stock is expected to pay $2.20 per share next year when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 2.25 percent annually and expects to continue doing so. What is the market rate of return on this stock
Answer: 7.35%
Explanation:
Based on the information given, the market rate of return on this stock will be calculated as:
= (D1/P0) +G
where,
D1= Dividend at year 1 = 2.20
P = price at present =43.19
G = dividend growth rate =2.25%
We then slot the figures into the formula and we will get:
= (D1/P0) +G
= (2.20 / 43.19) + 2.25%
= 0.051 + 2.25%
= 5.1% + 2.25%
= 7.35%
Therefore, the market rate of return will be 7.35%.
If someone is discriminated by a law based on gender, the burden is on the state to show that the law is substantially related to an important government purpose.
true
or FALSE
Your company manufactures riding lawn mowers.One of your customers,Marie,writes a claim,demanding a compensation for her faulty mower.On examining the faulty product,a service executive in your company discovers that someone dismantled the mower and attempted to fix it.Which of the following statements is the best way to phrase your refusal of Marie's claim for adjustment?
A) Our contract,which you signed,clearly absolves us of any liability in this case.
B) If you read our contract,you would know that we are not liable to pay compensation in such cases.
C) Paragraph 2 of our contract clearly shows that your claim is without foundation.
D) As stated in our contract,we are liable to pay compensation only when our personnel repair the equipment.
E) Your attempt to repair the lawn mower on your own has rendered the product warranty void.
Answer: D) As stated in our contract,we are liable to pay compensation only when our personnel repair the equipment
Explanation:
Based on the information given in the question, the best way to phrase the refusal of Marie's claim for adjustment is that "As stated in our contract, we are liable to pay compensation only when our personnel repair the equipment".
Since a service executive in the company discovers that the mower was dismantled by someone, then Marie's claim for adjustment can be refused since it wasn't dismantled by someone from the company.
On January 1, 2019, Wasson Company purchased a delivery vehicle costing $47,550. The vehicle has an estimated 7-year life and a $4,500 residual value. Wasson uses the units-of-production depreciation method and Wasson estimates that the vehicle will be driven 105,000 miles. What is the vehicle's book value as of December 31, 2020, assuming the vehicle was driven 10,500 miles during 2019 and driven 18,500 miles during 2020
Answer:
$35,660
Explanation:
the depreciable value of the vehicle = $47,550 - $4,500 = $43,050
depreciation expense per mile driven = $43,050 / 105,000 miles = $0.41
depreciation expense 2019 = $0.41 x 10,500 = $4,305
depreciation expense 2020 = $0.41 x 18,500 = $7,585
accumulated depreciation = $11,890
book value = $47,550 - $11,890 = $35,660
Sales promotions that provide consumers an incentive to buy a product, such as a cents-off coupons or a discount, are widely used, especially for the type of products we buy in the grocery store. For the company offering the discounts and coupons, one of the risks with such a strategy is that _______________.it is challenging to track usage of the couponsit will not provide a believable messageretailers are typically not interested in helping out with such campaignsconsumers who typically buy other brands will switch to the promoted brandit might only appeal to already loyal customers who stockpile the product when it is on sale for later consumption
Answer:
it is challenging to track usage of the coupons
Explanation:
Coupons are defined as an instrument that is used to obtain a discount or rebate when making a purchase.
Stores usually give out coupons to customers as an incentive to by products.
However there will be challenge of tracking the coupons as well as the discount on each coupon.
Coupons are given at different discount rates at different times, so it is cumbersome to track a particular coupon out of the many issued when customer wants to redeem it
The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method. Units of ProductPercent of Conversion Added Beginning Work in Process230,00060% Units started570,000100% Units completed620,000100% Ending Work in Process180,00070% Multiple Choice 758,000 800,000 620,000 746,000 884,000
Answer:
Equivalent units of production= 746,000 units
Explanation:
Giving the following information:
Units completed 620,000 100%
Ending Work in Process 180,000 70%
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 620,000 + (180,000*0.7)
Equivalent units of production= 746,000 units
Match each of the following example with the control method that is or should be used by entering the letter of the example in the answer space next to the correct control method.
a. Police work is changing. More and more police departments today are implementing community policing practices: working with the public to create a safer environment for all. For this reason, performance evaluations for police officers are starting to include criteria such as helpfulness and friendliness, which are measures of actions, not outcomes.
b. Sam writes for a living and loves it. He writes every dayâsometimes working on his blog, sometimes on a novel, but always putting something on paper. He learned about perseverance in his college success class, and now he sets aside four hours a day just for writing, regardless of what other activities he may have planned.
c. Lifeguards may seem to have an easy life, but the work is really very difficult. All lifeguards have to receive specialized training and be prepared to jump into action at a momentâs notice if an emergency arises. Professional lifeguards use a paramilitary structure (chief, captain, lieutenant, sergeant, and two levels of lifeguards) so that there is only one person giving orders in the event of an emergency.
d. Speed is the name of the game when you are picking applesâthe more you pick, the more you get paid. Gustavo receives $13 per box. He and his coworkers know that if they pick fewer than five boxes a day, they will be asked to leave the orchard.
1. Bureaucratic control
2. Behavior control
3. Output control
4. Normative control
Answer:
Control Examples Control Method
a. Behavior control
b. Output control
c. Bureaucratic control
d. Normative control
Explanation:
Control methods:
1. Bureaucratic control is a control method achieved through organizational structures and systems.
2. Behavior control: This is a control method that focuses on self-awareness rather than on organizational structures and systems.
3. Output control makes Sam aware that he must write every day to earn a living.
4. Normative control is a control method that establishes values and beliefs that make team members to behave responsibly.
Matching each of the following example with the control method which was used would give us:
A. Behavior control B. Output control C. Bureaucratic control D. Normative control
According to the given question, we are asked to match the following examples with the control method which was used withe different scenarios.
As a result of this, we can see that the different control methods which were described were all meant to keep a certain person or groups of persons in check and prevent them from overstepping their boundaries and also to preserve order among functional members of the society.
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The CEO is considering your recommendations, and it will take time to make some of these changes. However, you know that it's not just the structure of the department that is stifling creativity. You believe that the culture could be significantly improved, and you want to start working on these issues ASAP. It will be a slow process to make some of these changes, but the time to get started is now. You have a lot of ideas, but only a few should be implemented initially. Which three do you think should be started immediately
Explanation:
1- Hire an organizational consultancy specialized in diagnostics and solutions to improve the organizational culture, as an external view can be beneficial to perceive the organization free of bias.
2- Planning of the teams' routine and better redesign and definition of the functions of each employee, seeking greater integration and personal satisfaction with the work, which increases productivity and the valorization of the work.
3- Implementing changes in the way of communicating with the teams and providing feedback, clear and objective communication is essential for there to be a correct understanding of what is expected of each team and how to carry out the tasks to achieve the organizational objectives and goals.
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.4 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end.
Required:
a. Prepare the journal entries on October 1, 2021, to record the issuance of the note.
b. Record the adjustments on December 31, 2021.
c. Prepare the journal entries on September 30, 2021, to record payment of the notes payable at maturity.
Answer:
a. Precision Castparts
Dr Cash $39.4 million
Cr Notes Payable $39.4 million
Midwest Bank
Dr Notes Receivable $39.4 million
Cr Cash $39.4 million
b. Precision Castparts
Dr Interest expense $886,500
Cr Interest payable $886,500
Midwest Bank
Dr Interest receivable $886,500
Cr Interest revenue $886,500
c. Precision Castparts
Dr Notes payable $39.4 million
Dr Interest expense $2,659,500
Dr Interest payable $886,500
Cr Cash $42,946,000
Midwest Bank
Dr Cash $42,946,000
Cr Notes receivable $39.4 million
Cr Interest revenue $2,659,500
Cr Interest receivable $886,500
Explanation:
a. Preparation of the journal entries on October 1, 2021, to record the issuance of the note.
Precision Castparts
Dr Cash $39.4 million
Cr Notes Payable $39.4 million
Midwest Bank
Dr Notes Receivable $39.4 million
Cr Cash $39.4 million
b. Preparation of the journal entry to Record the adjustments on December 31, 2021.
Precision Castparts
Dr Interest expense $886,500 ($39.4 million x 9% x 3/12)
Cr Interest payable $886,500
Midwest Bank
Dr Interest receivable $886,500
Cr Interest revenue $886,500
($39.4 million x 9% x 3/12)
c. Preparation of the journal entries on September 30, 2021, to record payment of the notes payable at maturity.
Precision Castparts
Dr Notes payable $39.4 million
Dr Interest expense $2,659,500($39.4 million x 9% x 9/12)
Dr Interest payable $886,500
($39.4 million x 9% x 3/12)
Cr Cash $42,946,000
($39.4 million+$2,659,500+$886,500)
Midwest Bank
Dr Cash $42,946,000
($39.4 million+$2,659,500+$886,500)
Cr Notes receivable $39.4 million
Cr Interest revenue $2,659,500($39.4 million x 9% x 9/12)
Cr Interest receivable $886,500
($39.4 million x 9% x 3/12)
First National Bank of America has more than 75% of its assets in first residential fixed-rate mortgages that mature in more than 5 years. Suppose that a 12-month Gap Analysis predicts a decrease in 2021 interest income of $3 million if there is a sudden 1% drop in market interest rates. From your knowledge of the practical flaws in gap analysis, a realistic simulation analysis would predict that:_______.
1. Interest income will drop by more than $3 million for a sudden 1% drop in market interest rates
2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates
Answer:
2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates
Explanation:
Since in the question it is mentioned that there is decrease in 2021 interest income of $3 million in the case when there is a sudden decline of 1% in the rate of interest of the market this is due to the convexity of the curve as the GAP analysis and assume straight line
So the option 2 is correct
Indicate the effect each separate transaction has on investing cash flows.
a. Sold a truck costing $42,500, with $23,000 of accumulated depreciation, for $9,000 cash.
b. The sale results in a $10,500 loss. Sold a machine costing $11,600, with $8,500 of accumulated depreciation, for $6,000 cash.
c. The sale results in a $2,900 gain. Purchased stock investments for $16,500 cash. The purchaser believes the stock is worth at least $31,000.
Answer:
a. Cash inflow of $9,000
b. Cash inflow of $6,000
c. Cash outflow of $16,500
Explanation:
The investing cash flow is a section of a company's cashflow statement. Other sections being the operating cash flow and the financing cash flow.
Considering the effect of the given transactions on the investing section
a. Sold a truck costing $42,500, with $23,000 of accumulated depreciation, for $9,000 cash. - The cash inflow of $9,000 is the only element that will impact the investing cash flow as an inflow.
b. The sale results in a $10,500 loss. Sold a machine costing $11,600, with $8,500 of accumulated depreciation, for $6,000 cash. - The cash inflow of $6,000 is the only element that will impact the investing cash flow as an inflow.
c. The sale results in a $2,900 gain. Purchased stock investments for $16,500 cash. The purchaser believes the stock is worth at least $31,000. - The amount used in the purchase of the stock $16,500 will be the only element impacting the investing cash flow and the impact is a reduction in cash - an outflow.
11
Jeanne Crawford had $10,675.50 deposited in an account paying 6.5% interest compounded semiannually.
a) What is the amount in her account 2 years later?
b) What is the compound Interest?
Answer and Explanation:
The computation is shown below:
a. The amount in 2 years later is
As we know that
Amount = Principal × (1 + rate)^time period
= $10,675.50 × (1 + 6.5% ÷ 2)^2× 2
= $10,675.50 × (1 + 0.03125)^4
= $10,675.50 × 1.130982
= $12,073.80
b. Now the compound interest is
= Final Amount - principal amount
= $12,073.80 - $10,675.50
= $1,398.30
The above formulas should be applied
When is the only time to abbreviate on a job application?
Question 3 options:
In the Personal Information section
In the Position & Availability section
Only when space is limited
Signature section
Some advertising campaigns aim to change consumer attitudes about a product. When a firm is trying to change attitudes, advertising campaign objectives are stated in ____ terms. Which of the following is not a public relations tool? a. News release. b. Publicity. c. Free samples d. Press conference e. Feature article Many trade sales promotion methods, such as temporary price reductions, encourage the marketing channel to "overload" the channel with inventory that will not be sold soon. Overloading can increase sales in the short run but hurt sales in the longer term. Which trade sales promotion method can fight channel overloading?
Answer:
Advertising Campaigns
1. When a firm is trying to change attitudes, advertising campaign objectives are stated in ____ terms.
persuasive
2. Not a public relations tool:
e. Feature article
3. The trade sales promotion method that can fight channel overloading is the offer of discounts to retailers, wholesalers, or other business buyers.
Explanation:
Feature articles are in-depth descriptions and analyses of a place, a person, an idea, or an organization. Generally, feature articles concentrate on topical events, people, or issues and are written by experts to provide background information on newsworthy topics with the writer's personal slant or experience.
When a firm is trying to change attitudes, advertising campaign objectives are stated in persuasive terms.
Some advertising campaigns aim to change consumer attitudes about a product. It should be noted that a feature article is not a public relations tool.
In conclusion, the trade sales promotion method that can fight channel overloading is the offer of discounts to retailers, and wholesalers.
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Bulluck Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 4.90 grams $ 2.40 per gram Direct labor 0.90 hours $ 25.00 per hour Variable overhead 0.90 hours $ 3.40 per hour The company reported the following results concerning this product in July. Actual output 4,400 units Raw materials used in production 12,770 grams Actual direct labor-hours 3,800 hours Purchases of raw materials 13,500 grams Actual price of raw materials purchased $ 2.60 per gram Actual direct labor rate $ 12.80 per hour Actual variable overhead rate $ 3.50 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for July is: Multiple Choice $560 U $544 U $560 F $544 F
Answer:
Variable overhead efficiency variance= $544 favorable
Explanation:
Giving the following information:
Variable overhead 0.90 hours $ 3.40 per hour
Actual output 4,400 units
Actual direct labor-hours 3,800 hours
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (3,960 - 3,800)*3.4
Variable overhead efficiency variance= $544 favorable
Standard quantity= 4,400*0.9= 3,960
Fiona is a manager who believes in Theory Y of leadership. What does she assume about her employees according to this theory? A. Employees have to be reprimanded for bad ideas. B. Employees are self-motivated in their work. C. Employees need constant supervision. D. Employees are always ready to leave the company.
Answer:
b
Explanation:
Employees are self-motivated in their work.
Someone help soon please!
Answer:
i'd go with some time in colage with ne degree. ;)
Explanation:
Many influential economists, politicians, and business leaders think that a shift toward a more integrated and interdependent global economy is a good thing.
a. True
b. False
Answer:
A) true
Explanation:
Globalization can be regarded as process involving interaction as well as integration that exist among firms, peopl as well as government and companies worldwide. As a result of Globalization national as well as international companies has become stable and increased in competency and thriving in giving their very best in terms of their produced products.quality in technology as well as quality in education and health sector has also been increased as a result of Globalization. It should be noted that Many influential economists, politicians, and business leaders think that a shift toward a more integrated and interdependent global economy is a good thing.
Burbank Company owns the building occupied by its administrative office. The office building was reflected in the accounts at the end of last year as follows:
Cost when acquired …………………………………….…… $330,000
Accumulated depreciation (based on straight-line depreciation, an
estimated life of 50 years, and a $30,000 residual value) ………. 78,000
During January of this year, on the basis of a careful study, management decided that the total estimated useful life should be changed to 30 years (instead of 50) and the residual value reduced to $22,500 (from $30,000). The depreciation method will not change, i.e. they will keep using straight-line deprecation.
Required:
1. Compute the annual depreciation expense prior to the change in estimates.
2. Compute the annual depreciation expense after the change in estimates.
3. What will be the net effect of changing estimates on the balance sheet, net income, and cash flows for the year?
Answer:
Burbank Company
1. The annual depreciation expense prior to the change in estimates is:
= $6,000.
2. The annual depreciation expense after the change in estimates is:
= $10,250.
3. The net effect of the changing estimates on the balance sheet, net income, and cash flows for the year:
The balance sheet = the accumulated depreciation will increase to $88,250.
The net income will reduce by $4,250.
The cash flows will not be affected, as depreciation is not a cash flow item.
Explanation:
a) Data and Calculations:
Cost of office building = $330,000
Accumulated depreciation = $78,000
Estimated useful life = 50 years
Estimated residual value = $30,000
Depreciable amount = $300,000
Annual depreciation expense (straight-line method) = $6,000 ($300,000/50)
Revised Estimates:
Cost of office building = $330,000
Accumulated depreciation = $78,000
Estimated useful life = 30
Residual value = $22,500
Depreciable amount = $307,500
Annual depreciation expense (straight-line method) = $10,250 ($307,500/30)
A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead): Plus Max Units produced 200 16,000 Batch size (units) 10 400 Number of setups 20 40 Direct labor hours per unit 5 5 Total direct labor hours 1,000 80,000 Cost per setup$1,080 Total setup cost$64,800 Using number of setups as the activity base, the amount of setup cost allocated to each unit of product for Plus and Max, respectively is:Multiple Choice$21.60; $.54.$60.00; $60.00.$108.00; $2.70.$54.00; $27.00.$200.00; $16,000.00
Answer:
Apportioned set-up cost
Plus =$21,600
Max=$43,200
Explanation:
Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers.
Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.
The cost driver in this scenario is the number of set-ups
Activity rate per driver is calculated as:
Activity overhead for the period / Total cost drivers for the period
So, we can apply this formula to the scenario above:
Set-up overhead= $64,800
Total set-ups for the period = 20 + 40 = 60
Overhead cost per set-up = $64,800/60=1,080
Set-up cost allocation:
Plus - 20 × 1,080=$21,600
Max- 40 × 1,080=$43,200
Apportioned set-up cost
Plus =$21,600
Max-=$43,200
Financial information is presented below: Operating expenses $ 63000 Sales returns and allowances 2000 Sales discounts 5000 Sales revenue 156000 Cost of goods sold 104000 The amount of net sales on the income statement would be
Answer:
$149,000
Explanation:
The computation of the amount of net sales is shown below:
= Sales revenue - sales return & allowance - sales discount
= $156,000 - $2,000 - $5,000
= $149,000
We simply deduct the two items from the sales revenue so that the net sales revenue could be come and the same would be reported on the income statement
Teal Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $3,420,000 on March 1, $2,280,000 on June 1, and $5,700,000 on December 31. Teal Company borrowed $1,900,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 5-year, $3,800,000 note payable and an 11%, 4-year, $6,650,000 note payable. Compute avoidable interest for Teal Company. Use the weighted-average interest rate for interest capitalization purposes
Answer:
$418,790
Explanation:
Computation for the avoidable interest for Teal Company using the weighted-average interest rate for interest capitalization purposes
First step is to calculate the Expenditure for the year
Expenditure for the year
Mar-01 $3,420,000*10/12=$2,850,000
Jun-01 $2,280,000 *7 12=$1,064,000
Dec-31 $5,700,000*0/ 12=$ -
Total $ 11,400,000 $3,914,000
Second step is to compute the Weighted Average rate of all debt
Weighted Average rate of all debt:-
$3,800,000*12%=$456,000
$6,650,000*11%=$731,500
Total $10,450,000 $1,187,500
Weighted Average rate of all debt=($1,187,500 / $10,450,000)
Weighted Average rate of all debt = 11.36%
Now let compute the avoidable interest
AVOIDABLE INTEREST
$3,914,000
Less:$1,900,000*10%=$190,000
Balance$ 2,014,000*11.36% =$228,790
($3,914,000-$1,900,000=$ 2,014,000)
Avoidable Interest =$418,790
($190,000+$228,790)
Therefore the avoidable interest for Teal Company using the weighted-average interest rate for interest capitalization purposes will be $418,790
describe the difference between real gdp and nominal gdp.
Answer:
You Should study :))
Explanation:
Rusty Hardware makes only cash sales. It began 2021 with a credit balance of $33,400 in the refund liability account. Sales during 2021 were $740,000. Rusty estimates that 7% of all sales will be returned. During 2021, customers returned merchandise for credit of $30,800 to their accounts. What is the balance in the refund liability account at the end of 2021
Answer:
$54,400
Explanation:
The balance in the refund liability account would be calculated as;
Ending balance of sales return allowance = Opening balance of allowance + Expected sales return - Actual sales return
Given that;
Opening balance = $33,400
Expected return = $740,000 × 7% = $51,800
Actual return = $30,800
Therefore,
Ending balance of sales returns = $33,400 +$51,800 - $30,800 = $54,400
The balance in the refund liability account at the end of 2021 is $54,400