Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records.

Production Activity

Indirect Labor

Indirect Materials

Other Overhead

Grinding

$320,000

Polishing

$135,000

Product modification

600,000

Providing power

$255,000

System calibration

500,000

Additional information on the drivers for its production activities follows.

Grinding

13,000 machine hours

Polishing

13,000 machine hours

Product modification

1,500 engineering hours

Providing power

17,000 direct labor hours

System calibration

400 batches

Required

1. Classify each activity as unit level, batch level, product level, or facility level.

2. Compute the activity overhead rates using ABC. Form cost pools as appropriate.

3. Determine overhead costs to assign to the following jobs using ABC.

Job 3175

Job 4286

Number of units

200 units

2,500 units

Machine hours

550 MH

5,500 MH

Engineering hours

26 eng hours

32 eng. hours

Batches

30 batches

90 batches

Direct labor hours

500 DLH

4,375 DLH

4. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286?

5. If the company used a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286?

6. Compare the overhead costs per unit computed in requirements 4 and 5 for each job. Which method more accurately assigns overhead costs?

Answers

Answer 1

Answer:

Craftmore Machining

1. Classification of activity as unit level, batch level, product level, or facility level:

Production Activity         Level

Indirect Labor                 Facility

Indirect Materials           Product

Grinding                          Product

 Polishing                         Product

Product modification     Product  

Providing power            Facility

 System calibration         Batch

2. The Activity Overhead Rates using ABC:

Grinding = $24.62/machine hour

Polishing = $10.38/machine hour

Product modification = $400/eng.h

Providing power = $15/DLH

System calibration = $1.25/batch

3. Assignment of overhead costs:

                                    Job 3175               Job 4286

Number of units         200 units             2,500 units

Machine hours           550 MH                5,500 MH

Engineering hours     26 eng hours       32 eng. hours

Batches                      30 batches           90 batches

Direct labor hours     500 DLH              4,375 DLH

                                                            Job 3175               Job 4286

Grinding = $24.62/machine hour      $13,541                  $135,410

Polishing = $10.38/machine hour         5,709                    57,090

Product modification = $400/eng.h   10,400                     12,800

Providing power = $15/DLH                 7,500                    65,625

System calibration = $1.25/batch              37.50                      112.50

Total costs allocated                         $37,187.50            $271,037.50

Cost per unit                                      $185.94                  $108.42

4. Overhead cost per unit:

Job 3175 , Overhead cost per unit  = $185.94 ($37,187.50/200)

Job 4286 Overhead cost per unit = $108 ($271,037.50/2,500)

5. Plantwide overhead rate

Total overhead costs = $1,810,000

Total direct labor hours = 4,875

Overhead rate = $1,810,000/4,875 = $371.28

                                   Job 3175               Job 4286

Direct labor hours     500 DLH              4,375 DLH

Total overhead cost $185,640           $1,624,350

Overhead cost per unit $928.20       $649.74

6.  Overhead cost per unit   Job 3175               Job 4286

    Using ABC                         $185.94                  $108.42

    Using Plantwide rate        $928.20                $649.74

ABC rate more accurately assigns overhead costs than using plantwide rate.

Explanation:

a) Data and Calculations:

Production Activity      

Indirect Labor    

Indirect Materials

Other Overhead           Costs         Usage                                 Usage Rate

Grinding                      $320,000     13,000 machine hours     $24.62/mh

Polishing                      $135,000     13,000 machine hours     $10.38/mh

Product modification    600,000     1,500 engineering hours $400/eng.h

Providing power        $255,000      17,000 DLH                       $15/DLH

System calibration       500,000     400 batches                      $1.25/batch

Total overhead        $1,810,000

b) Craftmore incurs unit-level costs each time a unit is produced. It incurs batch-level costs each time it produces a batch of goods. It incurs product-level costs to support the production of each type of product. Finally, Craftmore's facility-level costs sustain the facility's general manufacturing process.


Related Questions

Kennedy Company reports the following costs and expenses in May.
Factory utilities $ 16,500
Depreciation on factory equipment 12,650
Direct labor 79100
Sales salaries 48400
Property taxes on factory building 2500
Repairs to office equipment 1300
Factory repairs 2000
Advertising 23,000
Depreciation on delivery trucks 3800
Indirect factory labor 48900
Indirect materials 70800
Direct materials used 157600
Factory manager's salary 8000
Office supplies used 4640
Instructions:
From the information, determine the total amount of:______.
(a) Manufacturing overhead.
(b) Product costs.
(c) Period costs.

Answers

Answer and Explanation:

The computation is shown below:

a. The manufacturing overhead is

= factory utilities + depreciation on factory equipment + indirect factory labor + indirect material + factory manager salary + property tax + factory repairs

= $16,500 + $12,650 + $48,900 + $70,800 + $8,000 + $2,500 + $2,000

= $161,350

b. The product cost is

= Direct material used + direct labor + total manufacturing overhead

= $157,600 +  $79,100 + $161,350

= $398,050

c.  The period cost is

= Depreciation on delivery truck + sales salaries + repairs to office equipment + advertising + office supplies used

= $3,800 + $48,400 + $1,300 + $23,000 + $4,640

= $81,140

What factors account for a fall in the long-run cost curve?

Answers

Economies of Scale and Long Run Average Cost (LRAC)

In the long run all costs are variable and the scale of production can change (i.e. no fixed inputs)
Economies of scale are the cost advantages from expanding the scale of production in the long run. The effect is to reduce average costs over a range of output
These lower costs represent an improvement in productive efficiency and can give a business a competitive advantage in a market. They lead to lower prices and higher profits – this is called a positive sum game for producers and consumers (i.e. the welfare of both will improve)
We make no distinction between fixed and variable costs in the long run
As long as the long run average total cost curve (LRAC) is declining, then internal economies of scale are being exploited.
The table below shows a numerical example of falling LRAC

Long Run Output (Units) Total Costs (£s) Long Run Average Cost (£ per unit)
1000 12000 12
2000 20000 10
5000 45000 9
10000 80000 8
20000 144000 7.2
50000 330000 6.6
100000 640000 6.4
500000 3000000 6
Returns to Scale and Costs in the Long Run

The table below shows how changes in the scale of production can, if increasing returns to scale are exploited, lead to lower average costs.

Factor Inputs Production Costs
(K) (La) (L) (Q) (TC) (TC/Q)
Capital Land Labour Output Total Cost Average Cost
Scale A 5 3 4 100 3256 32.6
Scale B 10 6 8 300 6512 21.7
Scale C 15 9 12 500 9768 19.5
Costs: Assume the cost of each unit of capital = £600, Land = £80 and Labour = £200
Because the % change in output exceeds the % change in factor inputs used, then, although total costs rise, the average cost per unit falls as the business expands from scale A to B to C

Examples of Increasing Returns to Scale

Much of the new thinking in economics focuses on the increasing returns available to growing businesses:

An example of this is the software and computer gaming industry.

The overhead costs of developing new software programs or computer games are huge - often running into hundreds of millions of dollars
The marginal cost of one extra copy for sale is close to zero, perhaps just a few cents or pennies
If a company can establish itself in the market, positive feedback from consumers will expand the installed customer base, raise demand and encourage the firm to increase production
Because marginal cost is low, the extra output reduces average costs creating economies of scale

Marigold Corp. applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:

Estimated annual overhead cost $1400000
Actual annual overhead cost $1375000
Estimated machine hours 500000
Actual machine hours 490000

a. $1372000 applied and $3000 overapplied
b. $1400000 applied and $3000 overapplied
c. $1372000 applied and $3000 underapplied
d. $1375000 applied and neither under-nor overapplied

Answers

Answer:

World biggest Logic To solve anything


Which of the following is a reason companies are hiring temporary workers more often than in the past?

A- Temporary employees work harder than permanent employees.

B- Temporary workers are more loyal to the company, thereby making them more productive.

C- Most companies provide temporary workers with very few, if any, benefits.

D- Workers seeking temporary employment are better educated than those seeking permanent employment​

Answers

C temporary workers do not receive any benefits & it save the company money.
the answer for this problem is C

The following trial balance was prepared from the ledger accounts of Ricardo Company: RICARDO COMPANY Trial Balance April 30, Year 2 Account Titles Debit Credit Cash $ 71,900 Accounts receivable 36,000 Supplies 2,400 Prepaid insurance 4,200 Land $ 11,000 Accounts payable 10,200 Common stock 100,000 Retained earnings 29,640 Dividends 8,600 Service revenue 70,000 Rent expense 10,200 Salaries expense 32,700 Operating expense 33,600 Totals $ 199,600 $ 220,840 When the trial balance failed to balance, the accountant reviewed the records and discovered the following errors: The company received $590 as payment for services rendered. The credit to Service Revenue was recorded correctly, but the debit to Cash was recorded as $770. A $1,200 receipt of cash that was received from a customer on accounts receivable was not recorded. A $580 purchase of supplies on account was properly recorded as a debit to the Supplies account. However, the credit to Accounts Payable was not recorded. Land valued at $11,000 was contributed to the business in exchange for common stock. The entry to record the transaction was recorded as a $11,000 credit to both the Land account and the Common Stock account. A $800 rent payment was properly recorded as a credit to Cash. However, the Salaries Expense account was incorrectly debited for $800.

Answers

Question Completion:

Prepare the corrected Trial Balance of Ricardo Company.

Answer:

RICARDO COMPANY

The corrected Trial Balance April 30, Year 2

Account Titles               Debit Credit

Cash                             $ 72,920

Accounts receivable       34,800

Supplies                            2,400

Prepaid insurance            4,200

Land                                 11,000

Accounts payable                          $10,780

Common stock                              100,000

Retained earnings                          29,640

Dividends                        8,600

Service revenue                             70,000

Rent expense                11,000

Salaries expense          31,900

Operating expense     33,600

Totals                      $ 210,420 $ 210,420

Explanation:

a) Data and Calculations:

RICARDO COMPANY

Trial Balance April 30, Year 2

Account Titles                  Debit     Credit

Cash                             $ 71,900

Accounts receivable      36,000

Supplies                            2,400

Prepaid insurance            4,200

Land                                                 $11,000

Accounts payable                            10,200

Common stock                              100,000

Retained earnings                          29,640

Dividends                        8,600

Service revenue                             70,000

Rent expense               10,200

Salaries expense         32,700

Operating expense     33,600

Totals                      $ 199,600 $ 220,840

Cash Account:

Account Titles                  Debit     Credit

Balance                        $ 71,900

Overstated service revenue                 180

Accounts receivable        1,200

Balance                                          $72,920

Totals                           $73,100      $73,100

Balance                       $72,920

Accounts Receivable

Account Titles                  Debit     Credit

Balance                          $36,000

Cash                                                 $1,200

Balance                                         $34,800

Totals                            $36,000 $36,000

Balance                         $34,800

Accounts Payable

Account Titles                  Debit     Credit

Balance                                        $10,200

Supplies                                             580

Balance                        $10,780

Totals                           $10,780  $10,780

Balance                                       $10,780

Land

Account Titles                  Debit     Credit

Balance                                           $11,000

Correction of error      $22,000

Balance                                           $11,000

Totals                           $22,000  $22,000

Balance                         $11,000

Salaries Expense

Account Titles                  Debit     Credit

Balance                      $32,700

Rent Expense                                   $800

Balance                                        $31,900

Totals                        $32,700    $32,700

Balance                     $31,900

Rent Expense

Account Titles                  Debit     Credit

Balance                          $10,200

Salaries Expense                 800

Balance                                          $11,000

Totals                             $11,000   $11,000

Balance                          $11,000

Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March:

Mar.
1 Materials purchased on account, $770,000.
2 Materials requisitioned, $680,000, of which $75,800 was for general factory use.
31 Factory labor used, $756,000, of which $182,000 was indirect.
31 Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600.
31 Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660.
31 Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900.
31 Factory overhead costs applied to jobs, $568,500.
31 Jobs completed, $1,500,000.
31 Cost of goods sold, $1,375,000.

Required:
Journalize the entries to record the summarized operations.

Answers

Answer:

See the journal entries below.

Explanation:

The journal entries will look as follows:

Date      Account Title                           Debit ($)           Credit ($)        

Mar. 1     Materials                                    770,000

              Accounts payable                                             770,000

             (To record materials purchased on account.)                            

Mar. 2    Factory Overhead                        75,800

              Work in process                         604,200

                Materials                                                           680,000

              (To record materials requisition.)                                                

Mar. 31  Factory Overhead                        182,000

             Work in process                           574,000

               Wages payable                                                 756,000

              (To record materials wages payable.)                                        

Mar. 31  Factory Overhead                       245,000

             Selling expenses                           171,500

             Administrative expenses             110,600

                Accounts payable                                              527,500

              (To record other costs incurred on account.)                              

Mar. 31  Factory Overhead                          24,500

             Selling expenses                            28,420

             Administrative expenses                16,660

                Accounts payable                                               69,580

              (To record prepaid expenses expired.)                                      

Mar. 31  Depreciation expenses                 126,200

               Accumulated dep. - Equp. & Buil.                      126,200

              (To record depreciation expenses for equipment and building.) 

Mar. 31    Work in process                           568,500

                 Factory Overhead                                             568,500

              (To record factory overhead costs applied.)                                  

Mar. 31   Finished goods                           1,500,000

                 Work in process                                              1,500,000

              (To record jobs completed.)                                                           

Mar. 31   Cost of goods sold                     1,375,000

                 Finished goods                                               1,375,000

              (To record cost of goods sold.)                                                       

Fiji, Inc. started 2025 with $12,000 in assets and $2,500 in liabilities. Fiji had issued 50 shares of stock when it went into business in 2019 for $10 per share, and not stock has been issued since that time. At December 31, 2025, Fiji had $23,000 in assets and $4,000 in liabilities. How much was Fiji's net income during 2025 if the company paid $1,000 in dividends during the year?
a $11,500
b $12,000
c $10,500
d $11,000
e None of the above

Answers

Answer:

$See below

Explanation:

Fuji Net income in 2025 is computed as

= Beginning asset + Dividend - Beginning liabilities

Given that;

Beginning asset = $12,000

Dividend = $1,000

Beginning liabilities = $2,500

Net income

= $12,000 + $1,000 - $2,500

= $10,500

Indiana Company produces couches. The fixed monthly cost of production is $8,000, and the variable cost per unit is $65. The couches sell for $180 apiece. Answer these questions: 3 points each 1) For a monthly volume of 300 tables, determine the total cost, total revenue, and profit. 2) Determine the monthly break-even volume for Indiana Company.

Answers

Answer: See explanation

Explanation:

1) For a monthly volume of 300 tables, determine the total cost, total revenue, and profit.

Fixed monthly cost = $8000

Variable cost per unit = $65

Selling price = $180 each

Monthly volume = 300

Therefore, the total cost will be

= $8000 + ($65 × 300)

= $8000 + $19500

= $27500

The total revenue will then be:

= Price × Quantity

= $180 * 300 units

= $54000

Total profit will be:

= Sales revenue - Cost

= $54000 - $27500

= $26500

b) Break even volume simply means the volume whereby no profit or loss is incurred. This will be:

= $8000 / ($180 - $65)

= $8000 / $115

= 69.56 units

= 70 units

2. How is CrudeOil violating its core value of treating oth-
ers with respect? What are some ways it could reincor-m
porate this core value into its organizational culture??

Answers

Answer:

1. Describe the organizational culture at CrudeOil. How does it contribute to the current situation?

Jim treated all of the employees with intimidating behavior based on productivity levels and not moral or ethical concepts. His leadership style is coercive and demands immediate compliance. If this style were summed up in one phrase, it would be "Do what I tell you." In my opinion, it should be avoided because it can alienate employees and create a hostile work environment.

2. How is CrudeOil violating its core value of treating others with respect?

What are some ways it could reincorporate this core value into its organizational culture? “The company’s core value is to treat everyone with respect”. Employees and supervisors, in my experiences, often treat colleagues in harsh and unethical manners only as far as the victim allows it to happen. Financial and reputational harm are questionable and unethical behaviors and organizational policies must be clearly established to reincorporate this value into its culture.

3. If Madison cannot report her problems to her immediate supervisor, what are some other ways she can handle the situation?

I would suggest for Madison to seek advice from a trusted professional, such as the HR compliance officer to verify the actions are inappropriate, if so, Madison needs to learn what process is available for voicing her concern to a higher level. Jim’s behavior is clearly unethical, but many of these behaviors are less clear and occur in complex situations. The most complicated situations often involve employees who witness what is, or appears to be, unethical behavior and are unsure how to respond, especially if job security is on the line...

This is some of it

Jim's leadership abilities breached CrudeOil's fundamental value of treating others with respect because he frequently treats coworkers harshly and unethically.

What are the three main uses of crude oil?

Petroleum-based products are used to power vehicles, heat buildings, and generate energy. Plastics, polyurethane, solvents, and countless more intermediate and finished commodities are produced by the petrochemical industry, which is a part of the industrial sector.

Jim's activities should therefore be addressed by top management in order to reintegrate this key principle into the organizational culture. Additionally, they could offer a variety of training to their staff, particularly those in higher positions, to inform them on correct management and leadership skills as well as the significance of adhering to the company's code of ethics.

Learn more about crude oil here:

https://brainly.com/question/4433699

#SPJ2

Conducting scenario analysis helps managers see the: potential changes in long-term debt over the course of a proposed project. impact an individual variable has on the outcome of a project. potential range of outcomes from a proposed project. distribution of funds for capital projects under conditions of hard rationing. possible range of market prices for a firm's stock over the life of a project.

Answers

Answer:

potential range of outcomes from a proposed project.

Explanation:

Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service. Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.

The fundamentals of Project Management are considered universal across most businesses and professions.

The fundamentals of Project Management includes;

1. Project initiation

2. Project planning

3. Project execution

4. Monitoring and controlling of the project

5. Adapting and closure of project.

Conducting scenario analysis helps managers see the potential range of outcomes from a proposed project.

This ultimately implies that, scenario analysis is a strategic process which typically involves analyzing, monitoring and simulating data that are relevant for the execution of a particular project so as to gain more insight and a deeper understanding of the potential range of outcomes.

The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2009, the allowance account had a credit balance of $75,000. Credit sales for 2009 totaled $2,400,000 and the year-end accounts receivable balance was $490,000. During this year, $73,000 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal year ends on December 31.
Required:
1. Does this situation describe a loss contingency? Explain.
2. What is the bad debt expense that Manda Panda should report in its 2009 income statement?
3. Prepare the appropriate journal entry to record the contingency.
4. What is the net realizable value (book value) Manda Panda should report in its 2009 balance sheet?

Answers

Answer:

The Manda Panda Company

1. This is not a loss contingency.  A loss contingency refers to a probable payment that might result from an uncertain event.

2. The bad debt expense that Manda Panda should report in its 2009 income statement is $70,000 ($73,000 -$75,000 + $72,000).

3. Debit Allowance for Uncollectible accounts $3,000

Credit Bad Debts Expense $3,000

To reduce the allowance account from $75,000 to $72,000.

Debit Bad Debts Expense $73,000

Credit Accounts Receivable account $73,000

To write-off the bad debts.

4. The net realizable value of accounts receivable is $418,000 ($490,000 - 72,000)

Explanation:

a) Data and Calculations:

Allowance for Uncollectible account (credit balance) = $75,000

Credit sales for 2009 = $2.4 million

Year-end Accounts Receivable = $490,000

Bad Debts = $73,000

Estimated allowance for Uncollectible = 3% of all credit sales (3% of $2.4 million) = $72,000

b) A contingency loss requires that a liability be created to account for the loss.  This is not the case with making allowances for uncollectible accounts or writing off bad debts.  There is no need to create a liability account since no payment will eventually be made to settle any liability in the future.

What should you do first to best use your personal goals as a means for a promotion

Answers

Answer:

The solution to this question can be defined as follows:

Explanation:

To achieve any goal, first of all, we need to make a quite high range of the ambition and after preparing the ambition we need to get hard work to achieve that goal. we must not be lazy, in another word we can say that laziness will make a boundary, that we can't pass. If we want to get the goal is to be promoted by using personal goals. that's why we suggest that the separate your personal and work goals, and try to work hard to achieve the goal.

n the following list are a number of well-known companies and the products that they sell. Which of the four types of markets (pure monopoly, oligopoly, monopolistic competition, perfect competition) best characterizes the markets in which they compete? Explain why. a) McDonald's- hamburgers b) ExxonMobil- gas c) Dell- personal computers d) Heinz- ketchup e) Proctor & Gamble- disposable diapers f) Starbucks- gourmet coffee g) Domino’s- pizza h) Intel- computer chip for the PC (p. 381 #9)

Answers

Answer:

Monopolistic Competition is the type of market that characterizes the markets in which the following compete:

a) McDonald's- hamburgers

b) ExxonMobil- gas  

c) Dell- personal computers

d) Heinz- ketchup

e) Procter & Gamble- disposable diapers  

f) Starbucks- gourmet coffee

g) Domino’s- pizza

h) Intel- computer chip for the PC

2. The reason for this choice is that there is no perfect competition in any market.  It remains an ideal.  The products of these firms are not perfect substitutes.  The firms do not have equal market share and control in their respective markets or industry.  Lastly, there is no single producer in any of the markets.

Explanation:

Types of markets:

Pure monopoly = a single producer with no substitute product or service.

Oligopoly = two or more firms in an industry with equal market share and control.

Monopolistic competition = Many firms offering similar products that are not perfect substitutes

Perfect competition = Many firms offering similar products that are perfect substitute.

Explain using examples the three measures of measuring GDP​

Answers

Answer: See explanation

Explanation:

The gross domestic product means the value in terms of money of the goods that a nation produces. The three measures of measuring the gross domestic product are:

1. Expenditure approach: This approach has to do with the addition of all the expenses that was incurred in a particular economy on the final goods and services. This can be calculated using C+I+G+(X-M)

where,

C = consumption.

I = investment

G = government expenditure

X = export

M = import

2. Income approach: This involves the addition of all the income that is earned in a particular country for the year. In this case, one will need to add the wages, salaries, interest, profit and rent.

3. Value added approach: This has to do with the addition of the value added which is down at every production level.

A man with ​$20,000 to invest decides to diversify his investments by placing ​$10,000 in an account that earns 5.2​% compounded continuously and ​$10,000 in an account that earns 6.4​% compounded annually. Use graphical approximation methods to determine how long it will take for his total investment in the two accounts to grow to ​$35,000. It will take approximately nothing years for his

Answers

Answer:

9.749 years

Explanation:

Given that :

Principal, P = 20,000

Total investment A = 35000

Investment 1:

P = $10,000

Compounded continuously at r = 5.2% = 0.052

A = Pe^rt

Investment B:

P = $10,000

Compounded annually at r = 6.4% = 0.064

A = P(1 + r)^t

Hence, final amount, A on both investment = 35000

A = Pe^rt + P(1 + r)^t

35000 = 10000e^0.052t + 10000(1 + 0.064)^t

Divide through by 10000

3.5 = e^0.052t + 1.064^t

t = 9.749123

t = 9.749 years

Revise the following sentences to eliminate flabby expressions.

a. Despite the fact that we lost the contract, we must at this point in time move forward.
b. In the event that interest rates increase, we will begin investing in the very near future.

Answers

Answer:

. Despite the fact that we lost the contract, we must at this point in time move forward.

Explanation:

Assuming that turkey chicken pork and beef are substitues supppose that the price of turkey had fallen. This will, other things being equal

Answers

wait where did the turkey fall?

According to the substitution effect of labor supply, when the wage rate goes up: Group of answer choices it becomes more costly to consume leisure, so people will work more. it becomes less costly to consume leisure, so people will work more. the opportunity cost of enjoying leisure goes down. firms will hire more workers since people are more willing to work.

Answers

It becomes more costly to consume leisure—i.e., when wages rise, the cost of not working to earn those higher wages also rises.

According to the substitution effect of labor, firms would hire more workers because people are more willing to work more.

The substitution effect of labor tells us that as income is raised, people would be more willing to give up leisure hours to work more.

This is due to the fact that they would earn more money for the extra hours that they would have spent on leisure.

There would be more willingness to work and the firms would have more people to hire.

Read more on the substitution effect here:

https://brainly.com/question/1319399

Filer Manufacturing has 9 million shares of common stock outstanding. The current share price is $88, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value $80 million, a coupon of 5 percent, and sells for 98 percent of par. The second issue has a face value of $55 million, a coupon of 6 percent, and sells for 106 percent of par. The first issue matures in 20 years, the second in 8 years.
a. What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) Equity / Value Debt / Value
b. What are the company's capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) Equity / Value Debt / Value
c. Which are more relevant? Market value weights or Book value weights

Answers

Answer:

a. Book Value of Common Stock = [9,000,000 shares * $7.00 per share] = $63,000,000

Book Value of Debt = [$80,000,000 + $55,000,000] = $135,000,000

Total Book Value = $63,000,000 + $135,000,000 = $198,000,000

Capital structure weights of Common Stock = [$63,000,000 / $198,000,000] = 0.3182  

Capital structure weights of Debt = [$135,000,000 / $198,000,000] = 0.6818  

b. Market Value of Common Stock = [9,000,000 shares x $88 per share] = $792,000,000

Market Value of Debt = [($80,000,000 x 98%) + ($55,000,000 x 106%)] = $136,700,000

Total Market Value = $792,000,000 + $136,700,000 = $928,700,000

Capital structure weights of Common Stock = [$792,000,000 / $928,700,000] = 0.8528

Capital structure weights of Debt = [$136,700,000 / $928,700,000] = 0.1472

c. Market values/weigh are always preferred because they reflect the current scenario.

FOR FRIEND AND SHIFTING PLZ DO NOT FLAG THIS
ok so heres your hero customs
try to think of a quirk then look for what you want

more to come just wait

Answers

Answer:

ooooooooo I want that whole fit

Explanation:

-At which point are you producing all running shoe
inserts and no hiking boot inserts?

-Which production point would be a goal for the future
but cannot be attained now?

Answer is A,X

Answers

Answer:

the guy above is right trust me (kid in all cp classes)

Explanation:

but yea he is correct

A group of middle school students wants to raise money to help build a new school track. They decided to sell donuts before school. Demand is 275 donuts when the donuts are given away free, and the demand drops to 175 donuts when the price is 25 cents per donut. However, the middle school administration is prepared to supply only 150 donuts free of charge but will supply 200 donuts when the price is 50 cents per donut. Assume that the demand and supply functions are both linear functions. What price should the students charge per donut so that there is neither a surplus nor a shortage of donuts

Answers

Answer:

25 cent/donuts

Explanation:

Demand function have these two points (275, 0), (175, 25)

Demand function equation:

y - 25 = [tex]\frac{25 - 0}{175-275}[/tex] (x-175)

-100y + 2500 = (x - 175)

-4y + 100 = x - 175

x + 4y = 100 + 175

x + 4y = 275....................equ 1

Similarly Supply function have these point (150,0), (200, 50)

Supply function equation:

y - 50 = [tex]\frac{50 - 0}{200-150}[/tex](x- 200)

50y - 2500 = x - 200

y - 50 = x - 200

x - y = 200 - 150

x - y = 150

By equation 1 & 2

x + 4y = 275

x - y =  150 ==> x = 150+y

So from equ 1 => x + 4y = 275

=> 150+y+4y = 275

=> 150+5y = 275

=> 5y = 275 - 150

=> 5y = 125

=> y = 25

So, the price that the students should charge per donut so that there is neither a surplus nor a shortage of donuts is 25 cent/donuts

100 POINTS + BRAINLIEST PLEASE HELP ME

Answers

Answer:

Hi there! Hope this helps you!

Explanation:

Three goals: Exercise,eat healthy, and do my work on time

I would write these on a paper and then I will check them with a pen, and every month I will try to do it and make a habit.

I dont know if this helped....

Have a great day!

Answer:

One of my career goals is a ufc fighter anther is a rapper third is a you tuber. I guess I would have to keep moving forward and never give up, if I feel doubt then I have to turn myself around.

Explanation:

Overcoming a challenge can very difficult for many people. I can't really remember a time I overcame a challenge, I guess I always stayed positive and It wasn't really a big deal to me, I just dealt with it and life goes on. But I can tell you some challenges I will or am trying to overcome in my present and future life. First, High School can be difficult for others for so many reasons, but my main problem getting through high school is passing and graduating. I guess I was dealing with a lot and couldn't really focus on my school work, so I failed and haven't passed a lot of classes so I'm very behind on my credits to graduate. Now I'm in twelfth grade and it's like taking every single class of high school I didn't pass all in one, so it's very overwhelming and a lot of work. Second, another challenge I will be overcoming in the future is to accomplish my goals and passion. I want to become a UFC fighter, rapper, and You Tuber. These goals are big dreams and achieving them can be almost not possible, but anything can be possible, you just have to have the mind set and tell yourself you can do anything. But it can be difficult if you don't know what to do or how to work towards your drams, so that's my main problem. Finally, my main challenge I'm trying to overcome is getting through life, some and many people don't really worry about life because there taking care of and been told they don't have to worry about anything. I have a rough life filled with tough love and scars and tears. But growing up didn't change my soul, I still believe I can accomplish anything and overcome anything. From what I learned from my challenges is that life can be overwhelming and can become hell but sometimes you have to go through hell to get to heaven. And going through experiences can make you wiser by learning from your mistakes and sometimes even learning from other peoples mistake. But I'm trying, it's seems like it's almost impossible to accomplish things I want to accomplish because bad things just happen to me and pulls me down and makes me want to give up on everything.

Match each definition with its related term by selecting the appropriate letter in the drop down provided. There should be only one definition per term. (that is, there are more definitions than terms.)
Definitions:
A. Report the long life of a company in shorter periods.
B. Record expenses when incurred in earning revenue.
C. The time it takes to purchase goods or services from suppliers, sell goods or services to customers, and collect cash from customers.
D. Record revenues when earned and expenses when incurred.
E. Increases in assets or decreases in liabilities from peripheral transactions.
F. An asset account used to record cash paid before expenses have been incurred.
G. Record revenues when earned and measurable (when the company transfers promised goods or services to customers, and in the amount the company expects to receive).
H. Decreases in assets or increases in liabilities from peripheral transactions.
I. Record revenues when received and expenses when paid.
J. The income statement equation.
K. Decreases in assets or increases in liabilities from central ongoing operations.
L. The retained earnings equation.
M. A liability account used to record cash received before revenues have been earned.
1. Expenses
2. Gains
3. Revenue recognition principle
4. Cash basis accounting
5. Unearned revenue
6. Operating cycle
7. Accrual basis accounting
8. Prepaid expenses
9. Revenues − Expenses = Net Income
10. Ending Retained Earnings = Beginning Retained Earnings + Net Income − Dividends Declared

Answers

Answer:

A. Going concern

B. Accrual Basis accounting

C. Operating Cycle

D. Cash Basis Accounting

E. Gains

F. Prepaid Expense

G. Revenue recognition principle

H. Expenses

I. Cash basis Accounting

J. Revenue - Expenses = Net Income

K. Expense

L. Ending Retained Earning = Beginning Retained Earning + Net Income - Dividends Declared

M. Unearned Revenue

Explanation:

The definitions for each letter are matched with the accounting terms. The unearned revenue account is used to record the revenue received but services yet to be delivered. This is a liability account in which the company reports any unearned revenue.

Stephen discusses with his boss his initial ideas on how to approach his hosting duties. His boss claims he is on the right track, but that he should remember to build goodwill in his remarks. Stephen remembers that this will be the workers' introduction to him, so he needs them to trust him in the role of chief operating officer going forward. Although he will be introducing other speakers during the meeting, he doesn't want to get his goals confused. Select the statement that describes something Stephen should do for a goodwill speech.A. Stephen contacts his boss to ask him what information about himself he would like shared. B. Stephen speaks respectfully about his boss and his positive characteristics. C. Stephen tells the workers that he also believes in fairness and teamwork. D. Stephen conducts research to understand more about the corporate executives.

Answers

Answer:

D. Stephen conducts research to understand more about the corporate executives.

Explanation:

Analyzing the information above, it is correct to say that a good presentation should be able to retain the public's attention and positively impact people. For this, it is considered that the letter D is the most relevant option for Stephan to achieve his goals in his speech, because knowing his audience in depth will be a decisive factor to align his presentation with the interests of the audience and thus retain attention and integrate them with what is being said. Therefore, research to understand more about corporate executives will lead Stephan to achieve effectiveness in his presentation.

The three dates related to a cash dividend include which of the following:

a. Date of declaration
b. Date of payment
c. Date of issuance
d. Date of record
e. Date of payable

Answers

Answer: a. Date of declaration

b. Date of payment

d. Date of record

Explanation:

The three dates that are related to a cash dividend are:

Date of declaration - This is the date that a particular company is being binded to pay its dividend.

Date of payment - This simply means the date when dividend is paid to the stockholders.

Date of record - This is the date for the identification of recipients.

Barrios Communications is a provider of satellite television services. It will install a satellite dish free of charge for any customer that agrees to a one-year service contract at a price of $50 per month. Installation costs Barrios $150. Customers typically remain with Barrios for much longer than the one year required, an average of 10 years (i.e., 9 years beyond their contractual obligation). Barrios enters into a contract under the terms described above on January 1, 20X1.
Required:
1. What amount of revenue should Barrios record related to the contract in 2019?
2. What amount of expense related to the contract should Barrios record related to the contract in 2019?

Answers

Answer:

1. $600

2. $15

Explanation:

1. Calculation for What amount of revenue should Barrios record related to the contract in 2019

Revenue= $50 * 12 months

Revenue= $600

Therefore What amount of revenue should Barrios record related to the contract in 2019 is $600

2. Calculation for What amount of expense related to the contract should Barrios record related to the contract in 2019

Expense= $150/10 years

Expense= $15

Therefore What amount of expense related to the contract should Barrios record related to the contract in 2019 is $15

Each of the following is a characteristic of a defined benefit retirement plan EXCEPT: Question 3 options: The plan assigns the risk of pre-retirement inflation, investment performance, and adequacy of retirement income to the employee. The plan specifies the benefit an employee receives at retirement. The plan has less predictable costs as compared to defined contribution plans. The law specifies the maximum allowable benefit payable from the plan is equal to the lesser of 100% of salary or $230,000 (2020) per year currently

Answers

Answer:

Each of the following is a characteristic of a defined benefit retirement plan EXCEPT:

The plan assigns the risk of pre-retirement inflation, investment performance, and adequacy of retirement income to the employee.

Explanation:

No.  With a defined benefit retirement plan, the risk of pre-retirement inflation, investment performance, and adequacy of retirement income is never assigned to the employee.  Instead, the employer bears this risk.  The defined benefit plan always specifies the benefit to which an employee is entitled to at retirement.  It also demands that the employee must work for a certain defined period to be entitled to this benefit.  By its nature, the defined benefit plan provides a fixed and pre-established benefit for employees.  This is why it is preferred by employees.

Journalize the following transactions for Cullumber Company.

Sept. 1 Purchased supplies for $1,020 cash. 5 Paid $410 cash dividend to stockholders.
7 Received $5,500 down payment from customer for services to be provided in the future.
16 Received $770 cash from a previously billed customer for payment of services provided in the prior month.
22 Purchased equipment for $3,000 by paying $1,100 cash and issued a note payable for the balance.

Answers

Answer and Explanation:

The journal entries are shown below

On Sept 1

Supplies Dr $1,020

    To Cash $1,020

(being supplies purchased in cash)

On Sept 5

Dividend Dr $410

   To cash $410

(being cash dividend is paid)

On Sept 7

cash Dr 5,500

   To Unearned service revenue  $5,500

(being cash collection is recorded)

On Sept 16

Cash Dr $770

  To Account receivable $770

(being cash collection is recorded)

On Sept 22

Equipment Dr $3,000

         To cash $1,100

         To Note payable $1,900

(being equipment purchased is recorded)

Prepare a journal entry for the purchase of office equipment on February 19 for $31,700, paying $7,600 cash and the remainder on account. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is enter.
CHART OF ACCOUNTS
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Office Supplies
14 Prepaid Insurance
15 Land
16 Office Equipment
17 Automobiles
LIABILITIES
21 Accounts Payable
22 Unearned Rent
23 Notes Payable
24 Salaries Payable
EQUITY
31 John Doe, Capital
32 John Doe, Drawing
Journal
Prepare a journal entry for the purchase of office equipment on October 27 for $32,750, paying $6,550 cash and the remainder on account. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
GENERAL JOURNAL
DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT
1
2
3
REVENUE
41 Fees Earned
42 Sales Commission

Answers

Answer:

A. Dr Office equipment $31,700

Cr Cash $7,600

Cr Accounts payable $24,100

B. Dr Office equipment $32,750

Cr Cash $6,550

Cr Accounts payable $26,200

Explanation:

Preparation of the journal entry

A. Based on the information given if the purchase of office equipment on February 19 was the amount of $31,700 in which the amount of $7,600 was paid as cash while the remainder on account which means that the journal entry will be:

Dr Office equipment $31,700

Cr Cash $7,600

Cr Accounts payable $24,100

($31,700-$7,600)

B. Based on the information given if the purchase of office equipment on February 19 was the amount of $32,750 in which the amount of $6,550 was paid as cash while the remainder on account which means that the journal entry will be:

Dr Office equipment $32,750

Cr Cash $6,550

Cr Accounts payable $26,200

($32,750-$6,550)

Other Questions
A scientist wants to examine a genetic disease in humans. The scientist hypothesizes that the disease can be treated by using gene therapy. Humans take a long time to reproduce and develop, so the scientist will have togive up on testing the hypothesis.test the hypothesis for a very long time.develop new methods to test the hypothesis.find a way to make humans reproduce faster. The price of a television is $567.31. The state sales tax rate is 8.3%.What is the total cost of the television? The string will break if the tension init exceeds 0.180 N. What is thesmallest possible value of d (in cm)before the string breaks? PLEASE HELP WILL GIVE BRAINLY its down below read carefully and do this questions all part all questions if someone do this questions I will make you brainly and give you thanks. b. "Climate is what you expect and weather is what you get."Elucidate. your opinion about Islamhelp For the given central angle, determine the distance traveled along the unit circle from the point (1, 0).218 degreesa.1.21 units clockwisec.7.61 unitsb.3.80 unitsd.1.90 units nmqlwmqlqmwmwmmwmqmmqm What is the name of the method used by General Sherman that included attacking civilians?(A) Total War(B) World War(C) Just War(D) Final War Enter 31/100 as a money amount and as a decimal in terms of dollars. What errors did her coach make in the following example Can diffusion and osmosis take place at the same time? what is the answer to (13x+30)-(20x+6) plecorato de potasio es elemento something that orbiys other things in space Every 3 bases (a codon) in the RNA codes for 1 amino acid.Example: CCA codes for proline (pro)2. Write the amino acid that corresponds to each codon.CGGCUGAGCCAG Pls help mid of timed test! write an essay explaining whether or not the Europeans treated at the Africans barely remember to proofread your work before submitting it has to be at least 125 words Write a ratio for the following situation. For every 10 toes, there are 2 feet. Question 1 (0.4 points) Ron Mueck's A Girl (2006) is an extremely realistic sculpture of a newborn baby. It is over 5 meters long. What is this an example of?