Madeline is a research assistant for her favorite biology professor, Dr. Ogechi. Dr. Ogechi is interested in studying the effects of aquarium temperature on the number of offspring produced by a certain species of fish.
Madeline knows from her economics class that to isolate the effects of a particular phenomenon, all other things must remain the same. In Latin, this is referred to as____.
a. pluribus unum.
b. dum versaste, nox fit.
c. onay oremay atinlay.
d. ceteris paribus.
In order to keep all other things the same and isolate the effects of one particular variable in the physics experiment, Madeline will want to do which of the following?
A. Hold constant the material used for the body of the car.
B. Make sure the incline is the same angle for each trial.
C. Clean up after her experiment carefully.
Answer:
D
B
Explanation:
ceteris paribus is a Latin phrase that means all other things being equal. It means that other variables are unchanged.
For example, according to the law of demand, all other things being equal, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
For this law to hold, it is assumed that consumers tastes do not change or income do not change. If the income of a consumer changes and prices increases, the consumer would be able to buy more of a good at the higher price.
In order to isolate the effects of one particular variable in the physics experiment, she has to make sure the incline is the same angle for each trial. If the incline is different, it might affect the results of the experiment
A corporation can earn 7.5% if it invests in municipal bonds. The corporation can also earn 8.5% (before-tax) by investing in preferred stock. Assume that the two investments have equal risk. What is the break-even corporate tax rate that makes the corporation indifferent between the two investments
Answer:
39.22%
Explanation:
Calculation for the break-even corporate tax rate
Using this formula
Municipal yield = After-tax preferred yield
7.50% = BT preference return ´ [1 - (1 - Dividend exclusion %)(T)]
Let plug in the formula
7.50% = 8.50% ´ [1 - 30.00% ´ (T)]
88.24% = [1 - 30.00% ´ (T)]
Tax rate (T) = 39.22%
Therefore the break-even corporate tax rate that makes the corporation indifferent between the two investments is 39.22%
Six Sigma programs: Group of answer choices suggest that all activities can be controlled, employee empowerment is the best control tool, and 100 percent control is possible. consist of a disciplined, statistics-based system aimed at producing not more than 2.5 defects per million iterations for a manufacturing or assembly process. All of these. are based on three principles: (1) all work is a statistically controllable process; (2) no well-controlled process allows variability; and (3) defect-free work requires tight statistical controls. utilize advanced statistical methods to improve quality by reducing defects and variability in the performance of business processes.
Answer: utilize advanced statistical methods to improve quality by reducing defects and variability in the performance of business processes.
Explanation:
Six Sigma simply refers to a set of tools that are utilized for the process improvement. They are the management techniques that are used for the enhancement of the business processes through the reduction in the occurence of an error. This helps in boosting the performance and the improvement in the company's profits, and as well boosting the morale of employees.
From the options given, the answer is that six sigma programs "utilize advanced statistical methods to improve quality by reducing defects and variability in the performance of business processes".
The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows LocationAnnual FixedVariableAlpha Ave.$5,000 $200per personBeta Blvd.$8,000 $150per person If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select
Answer:
The Skulls
The location that Skulls should select is:
Alpha Avenue.
Explanation:
a) Data and Calculations:
Estimated number of persons living in this new chapter house = 30
Fixed Variable Total Cost
Alpha Ave. $5,000 $200 per person $11,000
Beta Blvd. $8,000 $150 per person $12,500
b) The location that Skulls should select must minimize the total cost. The location which meets this criterion is Alpha Avenue, with a total cost of $11,000. This is purely because of the number of persons living in the chapter house. Assuming that this number would increase, then it may be considered economically better to choose the Beta Boulevard instead of the Alpha Avenue.
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,700 cash and $33,700 of photography equipment in the company in exchange for common stock. 2 The company paid $2,300 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $900 cash. 20 The company received $3,531 cash in photography fees earned. 31 The company paid $695 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
Answer:
1. See the attached excel file for the T-accounts.
2. Total of credit side = Total of debit side = $43,931
Explanation:
1. Post the transactions to the T-accounts.
Note: See the attached excel file for the T-accounts.
2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
The trial balance will look as follows:
Pose-for-Pics
Trial balance
For August, 31
Details Debit ($) Credit ($)
Cash 6,336
Equipment 33,700
Common stock 40,400
Prepaid Insurance 2,204
Insurance Expenses 96
Office Supplies 900
Photography fees 3,531
Utilities Expense 695
Total 43,931 43,931
Lucas Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 900 Materials costs $ 9,600 Conversion costs $ 7,700 Percent complete with respect to materials 60 % Percent complete with respect to conversion 45 % Units started into production during the month 8,100 Units transferred to the next department during the month 6,900 Materials costs added during the month $ 115,800 Conversion costs added during the month $ 120,500 Ending work in process inventory: Units in ending work in process inventory 2,100 Percent complete with respect to materials 75 % Percent complete with respect to conversion 20 % The cost per equivalent unit for conversion costs for the first department for the month is closest to:
Answer:
$17.51
Explanation:
Note that Lucas Corporation uses the weighted-average method
Equivalent units
Conversion costs = 6,900 x 100 % + 2,100 x 20 %
= 7,320
Total Cost
Conversion costs = $ 7,700 + $ 120,500
= $128,200
Cost per equivalent unit
Cost per equivalent unit = $128,200 / 7,320 = $17.51
Conclusion
The cost per equivalent unit for conversion costs for the first department for the month is closest to $17.51.
Presented below is information for Sunland Co. for the month of January 2022. Cost of goods sold $201,500 Rent expense $32,100 Freight-out 7,900 Sales discounts 9,000 Insurance expense 13,600 Sales returns and allowances 18,700 Salaries and wages expense 63,700 Sales revenue 393,500 Income tax expense 4,700 Other comprehensive income (net of $400 tax) 2,000 (a) Prepare an income statement using the multiple-step format.
Answer:
Sunland Co.
Income statement for the month ended January 2022.
Sales revenue 393,500
Sales returns and allowances (18,700)
Net Sales 374,800
Less Cost of goods sold (201,500)
Gross Profit 173,300
Less Operating Expenses :
Freight-out 7,900
Sales discounts 9,000
Insurance expense 13,600
Salaries and wages expense 63,700 (94,200)
Operating Profit 79,100
Less Non Operating Expenses
Income tax expense (4,700)
Net Profit for the year 74,400
Other comprehensive income (net of $400 tax) 2,000
Total Profit and Other Comprehensive Income 76,400
Explanation:
Multi- step Income Statement shows Income from Primary activities and Secondary activities separately as above.
Crowl Corporation is investigating automating a process by purchasing a machine for $972,000 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $132,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $21,000. The annual depreciation on the new machine would be $108,000. The simple rate of return on the investment is closest to (Ignore income taxes.): (Hint: Give answer in decimal format. For example, if an answer is 10%, use the format 0.10 not 10%.)
Answer:
2.5%
Explanation:
Calculation to determine what The simple rate of return on the investment is closest to
First step is to calculate the Annual incremental net operating income
Annual incremental net operating income=$132,000-$108,000
Annual incremental net operating income=$24,000
Second step is to calculate the Initial investment
Initial investment =$972,000-$21,000
Initial investment=$951,000
Now let calculate the Simple rate of return using this formula
Simple rate of return = Annual incremental net operating income ÷ Initial investment
Let plug in the formula
Simple rate of return= $24,000 ÷ $951,000
Simple rate of return=0.025*100
Simple rate of return= 2.5%
Therefore The simple rate of return on the investment is closest to 2.5%
define private equity funds economics.
Answer:
Private equity is an alternative investment class and consists of capital that is not listed on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity.
you recently increased you're spending on marketing by 10%. you now spend 5500 per month. revenue increase by 1000 per month and you're gross margin percentage is 70%. All other expenses stayed consant. Did the increase pay off?
Answer:
Answer is yes
Explanation:
You are planning to save for retirement over the next 30 years. To do this, you will invest $850 per month in a stock account and $350 per month in a bond account. The return of the stock account is expected to be 10% compounded monthly, and the bond account will pay 6% compounded monthly. When you retire, you will combine your money into an account with a return of 5% compounded monthly. How much can you withdraw each month from your account assuming a 25-year withdrawal period?
Answer:
$13,287.70
Explanation:
first we must calculate the future value:
future value of stock account = $850 x [(1 + 0.1/12)³⁶⁰ - 1 ] / (0.1/12) = $1,921,415
future value of bond account = $350 x [(1 + 0.06/12)³⁶⁰ - 1 ] / (0.06/12) = $351,580
total future value = $2,272,995
monthly withdrawal = value of account / PVIFA
PVIFA, 300 periods, 0.4167% = [1 - 1/(1 + 0.05/12)³⁰⁰] / (0.05/12) = 171.06
monthly withdrawal = $2,272,995 / 171.06 = $13,287.70
The following transactions were completed by the company. The company completed consulting work for a client and immediately collected $6,700 cash earned. The company completed commission work for a client and sent a bill for $5,200 to be received within 30 days. The company paid an assistant $2,000 cash as wages for the period. The company collected $2,600 cash as a partial payment for the amount owed by the client in transaction b. The company paid $940 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
Answer:
The impact of each transaction on individual items of the accounting equation is as follows:
1. Cash $6,700 Consulting Revenue $6,700:
Assets (Cash +$6,700) = Liabilities + Equity (Retained Earnings $6,700)
2. Accounts Receivable $5,200 Commission Revenue $5,200:
Assets (Accounts Receivable +$5,200) = Liabilities + Equity (Retained Earnings $5,200)
3. Wages Expense $2,000 Cash $2,000:
Assets (Cash -$2,000) = Liabilities + Equity (Retained Earnings -$2,000)
4. Cash $2,600 Accounts Receivable $2,600:
Assets (Cash +$2,600 Accounts Receivable -$2,600) = Liabilities + Equity
5. Cleaning Expense $940 Cash $940:
Assets (Cash -$940) = Liabilities + Equity (Retained Earnings -$940)
Explanation:
a) Data and Calculations:
Accounts affected by each transaction:
1. Cash $6,700 Consulting Revenue $6,700
2. Accounts Receivable $5,200 Commission Revenue $5,200
3. Wages Expense $2,000 Cash $2,000
4. Cash $2,600 Accounts Receivable $2,600
5. Cleaning Expense $940 Cash $940
b) The accounting equation is Assets = Liabilities + Equity. It is the basis of accounting, debit and credit sides of accounts or the double-entry system of accounting. It is always in balance with each business transaction when they are properly recorded in the journals and correctly posted to the general ledger.
Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $133 Units in beginning inventory 950 Units produced 8,850 Units sold 8,950 Units in ending inventory 850 Variable costs per unit: Direct materials $ 29 Direct labor $ 46 Variable manufacturing overhead $ 10 Variable selling and administrative expense $ 20 Fixed costs: Fixed manufacturing overhead $ 70,800 Fixed selling and administrative expense $164,200 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. What is the net operating income for the month under absorption costing
Answer:
$93
Explanation:
Product cost under absorption costing = all manufacturing overheads
= $93
This is the Cost per unit manufactured
Chamberlain Co. wants to issue new 17-year bonds for some much-needed expansion projects. The company currently has 12.2 percent coupon bonds on the market that sell for $1,434.96, make semiannual payments, and mature in 17 years. What coupon rate should the company set on its new bonds if it wants them to sell at par
Answer:
The company should set the coupon rate on its new bonds at current yield to maturity of 4.81% if it wants them to sell at par.
Explanation:
There is a need to first calculate the yield to maturity (YTM) using the following RATE function in Excel:
YTM = RATE(nper,pmt,-pv,fv) * Number of semiannuals in a year = RATE(nper,pmt,-pv,fv)*2 .............(1)
Where;
YTM = yield to maturity = ?
nper = number of periods = number of years to maturity * number of semiannuals in a year = 17 * 2 = 14
pmt = semiannual coupon payment = face value * (annual coupon rate / number of semiannuals in a year) = 1000 * (12.2% / 2) = 61
pv = present value = current bond price = 1434.96
fv = face value of the bond = 1000
Substituting the values into equation (1), we have:
YTM = RATE(14,61,-1434.96,1000)*2
Inputting =RATE(14,61,-1434.96,1000)*2 into excel (Note: as done in the attached excel file), the YTM is obtained as 4.81%.
Therefore, the company should set the coupon rate on its new bonds at current yield to maturity of 4.81% if it wants them to sell at par.
ou are planning to save for retirement over the next 30 years. To do this, you will invest $890 per month in a stock account and $490 per month in a bond account. The return of the stock account is expected to be 10.9 percent, and the bond account will pay 6.9 percent. When you retire, you will combine your money into an account with a return of 7.9 percent. How much can you withdraw each month from your account assuming a 25-year withdrawal period
Answer:
Monthly withdraw= $23,294.99
Explanation:
Giving the following information:
Stock:
Monthly deposit= $890
Number of periods= 30*12= 360
Interest rate= 0.109 / 12= 0.0091
Bond:
Monthly deposit= $490
Number of periods= 30*12= 360
Interest rate= 0.069 / 12= 0.00575
First, we need to calculate the amount of money collected at the moment of retirement. We need to use the following formula on each investment:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Stock:
FV= {890*[(1.0091^360) - 1]} / 0.0091
FV= $2,452,918.1
Bond:
FV= {490*[(1.00575^360) - 1]} / 0.00575
FV= $586,123.47
Total FV= 2,452,918.1 + 586,123.47
Total FV= $3,039,041.57
Now, the monthly withdrawal for 25 years:
Number of periods= 25*12= 300
Interest rate= 0.079 / 12= 0.0066
Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]
Monthly withdraw= (3,039,041.57*0.0066) / [1 - (1.0066^-300)]
Monthly withdraw= $23,294.99
How are wages for a particular job determined?
by the federal Wage and Hour Department
by the amount of inflation in the economy
by the equilibrium between supply and demand for workers
by advertisements in the newspaper or online
Answer:
by the equilibrium between supply and demand for workers
Explanation:
Wages are the amount to pay workers for a particular job when employed. Therefore, determining the wages for a particular job is mostly dependent "on the equilibrium between supply and demand for workers, " and sometimes location.
This is because the higher the number of workers available, the lesser the employers would be willing to increase the wage level of employees given the fact that they can easily find another employee. However, where there is a lesser number of employees for a particular job, the employers would be willing to increase the employees' wages to entice them.
According to the labor market equilibrium, The wages for a particular job are determined by the equilibrium between supply and demand for workers. Thus, the correct answer is option (c).
The term "labor market," sometimes referred to as the "job market," describes the supply and demand for labor, with employers meeting the demand and employees meeting the supply.
The supply and demand of labor, which are met by employees and employers respectively, are referred to as the labor market.Both macroeconomic and microeconomic perspectives on the labor market are important because they provide useful information on employment and the state of the economy as a whole.Two crucial macroeconomic indicators are labor productivity rates and unemployment rates.Therefore, The wages for a particular job are determined by the equilibrium between supply and demand for workers. Thus, the correct answer is option (c).
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Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to proudcts. Mnaufacturing overhead costs are allocated on the the bases of Macine hours in the Machining Department on the bases of direct labor hours. In the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year:
Machining Assembly
Direct labor - hours 40,000 40,000
Machine - hours 50,000 20,000
Direct labor costs $500,000 $900,000
Manufacturing overhead costs $280,000 $360,000
The accounting records of the company show the following data for Job #316
Machine Assembly
Direct labor - hours 120 65
Machine - hours 50 5
Direct material cost $425 $175
Direct labor cost $275 $300
WHat are the total manufacturing costs for Job #316
Which of the following are correct? (Please show ALL calculations)
A. $2,040
B. $1,960
C. $1,175
D. $1,440
Answer:
See below
Explanation:
Total manufacturing cost = direct material cost + direct labor cost + manufacturing overhead cost
Where
Direct material cost = Machining direct material cost + assembly direct material cost
= $425 + $175
= $600
The direct labor cost = Machining direct labor cost + Assembly direct labor cost
= $275 + $300
= $575
The machining overhead cost = Manufacturing overhead costs / Machine hours
= $280,000 / 50,000
= $5.6
So, cost = $5.6 × 50 = $280
Assembly overhead cost = Manufacturing overhead costs / direct labor hours
= $360,000 / 20,000
= $18
So, the cost = $18 × 65 = $1,170
= $600 + $575 + $280 + $1,170
= $2,625
Ruben is a travel agent. He intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline for $160 each. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $5,200 in advertising costs. How many ticket packages will Ruben need to sell to break even
Answer:
He would need to sell 130 ticket packages to break even
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
Variable cost is cost that varies with output. If output is zero, no variable cost would be incurred.
Fixed cost is cost that does not vary with output.
[tex]\frac{5200}{200 - 160}[/tex]
[tex]\frac{5200}{40}[/tex] = 130
define liquidity risk.
Explanation:
Liquidity risk occurs when an individual investor, business, or financial institution cannot meet its short-term debt obligations.
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $400,000, and direct labor costs to be $2,000,000. Actual overhead costs for the year totaled $380,000, and actual direct labor costs totaled $1,800,000. At year-end, the balance in the Factory Overhead account is a:_________.
a. $360,000 Debit balance.
b. $20,000 Credit balance.
c. $400,000 Credit balance.
d. $20,000 Debit balance.
e. $380,000 Debit balance.
Answer:
Option d ($20,000 Debit balance) is the appropriate option.
Explanation:
The given values are:
Total overhead costs,
= $400,000
Direct labor costs,
= $2,000,000
Actual overhead incurred,
= $380,000
Actual direct labor costs,
= $1,800,000
Now,
As a % of labor cost, the OH will be:
= [tex]\frac{400000}{2000000}\times 100[/tex]
= [tex]20 \ percent[/tex]
The absorbed overhead will be:
= [tex]1800000\times 20 \ percent[/tex]
= [tex]360,000[/tex]
Then,
The balance in overhead account will be:
= Actual overhead incurred - Absorbed overhead
= [tex]380000 - 360000[/tex]
= [tex]20,000[/tex] ($) (Debit balance)
define securitization.
Answer:
its like getting security for ut business or office
On December 31, 2017, Extreme Fitness has adjusted balances of $980,000 in Accounts Receivable and $91,000 in Allowance for Doubtful Accounts. On January 2, 2018, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $28,000. What amount would the company report as its net accounts receivable on December 31, 2017
Answer:
Account receivable = $889,000
Explanation:
The company would record as net receivables, the total amount on accounts receivable less total amount on the allowance for uncollectible account.
The above means that the balance would represent the amount of credit that has gone bad hence the value represent balance on net receivable account.
Therefore,
Accounts receivable
= Adjusted balance in accounts receivable - Allowance for doubtful account
= $980,000 - $91,000
= $889,000
You plan to purchase a house for $180,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 10 percent of the purchase price. You will not pay off the mortgage early. Assume the homeowner will remain in the house for the full term and ignore taxes in your analysis. a. Your bank offers you the following two options for payment. Which option should you choose? b. Your bank offers you the following two options for payments. Which option should you choose?
Answer:
choose the first one
Explanation:
get the debt over faster
Ramon and Sammy are working on a group homework assignment. The homework consists of a set of essay questions and a set of questions on graphing models. Ramon can finish an essay question in about 15 minutes and a graphing question in about 30 minutes. Sammy can finish an essay question in about 20 minutes and a graphing question in about 35 minutes. Assume that Ramon and Sammy produce the same quality answers. Calculate Ramon and Sammy's opportunity cost of each task. Please round each answer to the nearest tenth.
Answer and Explanation:
The computation is shown below:
It is given that Ramon would completed an essay question in approx 15 minutes and for graphing question it finished approx 30 minutes
On the other hand Sammy would completed an essay question in approx 20 minutes and for graphing question it finished approx 35 minutes
a) Ramon's opportunity cost of completing an essay question is
= 15 ÷30
= 0.5 graphing question
b) Ramon's opportunity cost of completing a graphing question is
= 30 ÷ 15
= 2 essay question
c) Sammy's opportunity cost of completing an essay question is
= 20 ÷ 35
= 0.57 graphing question
d) Sammy's opportunity cost of completing a graphing question is
= 35 ÷ 20
= 1.75 essay question
Winston Company estimates that the factory overhead for the following year will be $478,800. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 26,600 hours. The total machine hours for the year were 54,000 hours. The actual factory overhead for the year was $986,000. Enter the amount as a positive number.
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 478,800 / 26,600
Predetermined manufacturing overhead rate= $18 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 18*54,000
Allocated MOH= $972,000
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 986,000 - 972,000
Underallocated overhead= $14,000
Luebke Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $62,000 and at the end of the month was $31,000. The cost of goods manufactured for the month was $217,000. The actual manufacturing overhead cost incurred was $58,000 and the manufacturing overhead cost applied to Work in Process was $62,000. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is:____.
a. $255,700.
b. $182,400.
c. $260,600.
d. $221,500.
Make a simple poem regarding the learning’s that you acquired in managing the finances. (4 Stanzas only with rhyme and with no meter)
Answer:
My net worth is my assets less my liabilities
I should therefore not spend above my capabilities
Pay off the debt required and then a little more
That way I can have, a great credit score
Like everything else, I must plan my finances
Create a budget and include my expenses
And make space for an emergency fund
So on rainy days I don't find myself cashless and hamstrung
Its important to remember that I won't work forever
I should therefore set something aside, to fall back on
When I'm too old and grey to embark on strenuous endeavor
I'll be well taken care of because I remembered my pension
And I shouldn't forget, to keep a proper record
Get educated in a financially sound method
That way I can know what comes in and what goes out
I'll be sure of my situation and leave room for no doubt
he following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at August 31, $28,800. Cash balance according to the bank statement at August 31, $30,270. Checks outstanding, $5,850. Deposit in transit, not recorded by bank, $4,690. A check for $480 in payment of an account was erroneously recorded in the check register as $840. Bank debit memo for service charges, $50. a. Prepare a bank reconciliation, using the format shown in Exhibit 13.
Answer:
Creative Design Co.
Bank Reconciliation
August 31, 20Y6
Cash balance according to Bank Statement $30,270
Add: Deposit in transit, not recorded by bank $4,690
$34,960
Less: Outstanding checks ($5,850)
Adjusted Balance $29,110
Cash balance according to Company's records $28,800
Add: Error in recording check (840 - 480) $360
$29,160
Less: Bank service costs ($50)
Adjusted balance $29,110
express 75 kobo as a decimal of 1 naira 50 kobo
Institute Technologies is choosing new cost drivers for its accounting system. One driver is labor hours, the other is a combination of machine hours for unit variable costs and number of setups for a pool of batch-level costs. Data for the past year follow.
Budget
Labor hours 200,000
Machine hours 360,000
Number of setups 3,000
Unit variable cost pool $1,600,000
Batch-level cost pool $ 900,000
Actual
200,000
450,000
3,300
$2,000,000
$ 990,000
Assume that the two separate pools are used for Institute. The flexible budget dollar amounts for the actual level of machine hours and actual number of setups are: __________.
Unit Variable Cost Pool Batch-Level Cost Pool
a) $1,600,000 $900,000
b) $1,600,000 $990,000
c) $2,000,000 $900,000
d) $2,000,000 $990,000
e) $2,500,000 $ 0
Answer:
d) $2,000,000 $990,000
Explanation:
The computation is shown below:
Unit variable cost pool is
= Budgeted cost ÷ Budgeted machine hours
= $1,600,000 ÷ 360,000
=$ 4.444 per machine hour
And,
Batch-level cost pool = Budgeted cost ÷ Budgeted number of setups
= $900,000 ÷ 3000
= $ 300 per setup
Now
Unit variable cost pool is
= Actual machine hours × Activity rate
= 450000 × 4.44
= $2,000,000
And, Batch-level cost pool is
= Actual number of setups × Activity rate
= 3300 × 300
=$990,000