Answer:
c. No more than $15,000 of Satesh's taxable income is taxed at 0%.
Explanation:
Calculation to determine the statements that is correct
First step is to calculate the net long-term capital gain
Net long-term capital gain= ($13,000 0%/15%/20% Long-term capital gain - $5,000 Short-term capital loss)
Net long-term capital gain=$8,000
Now let add the amount of $7,000 which represent qualified dividend income to the 0%/15%/20% net long-term capital gain of the amount of $8,000 which will inturn will give us the amount of $15,000 which therefore means that the amount of $15,000 will be eligible for the 0%/15%/20% ALTERNATIVE TAX RATE.
Therefore the statements that is correct will be:
NO MORE THAN $15,000 of SATESH'S TAXABLE INCOME IS TAXED AT 0%.
he following labor standards have been established for a particular product: Standard labor-hours per unit of output 10.1 hours Standard labor rate $ 13.90 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 7,900 hours Actual total labor cost $ 106,650 Actual output 1,100 units
What is the labor efficiency variance for the month?
a. $47,779 F
b. $47,779 U
c. $43,335 F
d. $44,619 F
Answer:
d. $44,619 Favorable
Explanation:
Given the above information, labor efficiency variance is computed as;
= (Standard quantity - Actual quantity) × Standard rate
Standard quantity = 10.1 × 1,100 = 11110
Actual quantity = 7,900
Standard rate = $13.9
Then,
Labor efficiency variance =
(11,110 - 7,900) × $13.90
= (3,210) × $13.90
= $44,619 favorable
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period:
$3,000,000, 12% note
$7,000,000, 7% bonds
Construction expenditures incurred were as follows:
July 1, 2021 $ 700,000
September 30, 2021 990,000
November 30, 2021 990,000
January 30, 2022 930,000
The company’s fiscal year-end is December 31.
Required:
Calculate the amount of interest capitalized for 2021 and 2022.
Calculate the amount of interest capitalized for 2021. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).)
Date Expenditure Weight Average
July 1, 2021 x =
September 30, 2021 x =
November 30, 2021 x =
Accumulated expenditures
Amount Interest Rate Capitalized Interest
Average accumulated expenditures x % x =
2021
Date Expenditure Weight Average
January 1, 2022 x =
January 30, 2022 x =
Amount Interest Rate Capitalized Interest
Average accumulated expenditures x x =
Solution :
The interest capitalization for 2021
Date Expenditure x Weight = Average
1 July,2021 700,000 6/12 350,000
30 Sept,2021 990,000 3/12 247,500
30 Nov, 2021 990,000 1/12 82,500
Total 2,680,000 680,000
Amount x interest rate = Capitalization interest
Average total expenditure 680,000 8.50% 57,800
The weighted average interest rate
[tex]$=\frac{3,000,000 \times 12\% + 7,000,000 \times 7\%}{3,000,000+7,000,000}$[/tex]
= 8.5 %
Balance as on 1st Jan, 2022 = [tex]$2,680,000+57,800 = 2,737,800$[/tex]
The interest Capitalized for 2022
Date Expenditure x Weight = Average
1 Jan,2022 2,737,800 12/12 2,737,800
30 Jan, 2022 930,000 11/12 852,500
Accumulated 3,667,800 3,590,300
expenditures
Amount x interest rate = Capitalization interest
Average accumulated 3,590,000 8.50% 305,175.5
expenditure
how to vote correctly? explain your answer
On January 1, Year 1, Missouri Company purchased a truck that cost $56,000. The truck had an expected useful life of 10 years and a $5,000 salvage value. The amount of depreciation expense recognized in Year 2 assuming that Missouri uses the double declining-balance method is:__________
Answer:
Annual depreciation= $8,160
Explanation:
Giving the following information:
Purchase price= $56,000
Useful life= 10 years
Salvage value= $5,000
To calculate the annual depreciation, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1:
Annual depreciation= 2*[(56,000 - 5,000) / 10]
Annual depreciation= $10,200
Year 2:
Annual depreciation= 2*[(51,000 - 10,200) / 10]
Annual depreciation= $8,160
Apples Oranges
Units Total Utility Units Total Utility
0 0 0 0
1 15 1 22
2 28 2 41
3 39 3 58
4 48 4 73
5 55 5 85
Assume that the price of oranges increases to $2, while the price of apples remains at $1, and Linda allocates $5 of the weekly food budget to purchasing apples and oranges. If Linda wants to maximize her utility, her new consumption bundle will consist of:_______
a. 1 apple and 2 oranges.
b. 3 apples and 1 orange.
c. 5 apples and no oranges.
d. none of the above
Answer:
The correct option is d. none of the above.
Explanation:
Note: See the attached excel file for the calculations of the ratios of the marginal utility to price of each of Apples and Oranges assuming that the price of oranges increases to $2, while the price of apples remains at $1.
For two goods, utility is maximized at a point where the ratios of the marginal utility to price of the two commodities are equal. That is, for this question, Linda will maximize her utility when we have:
Marginal Utility of Apples / Price of Apples = Marginal Utility of Oranges / Price of Oranges ............... (1)
From the attached excel file, it can be observed that equation (1) does NOT hold anywhere. Therefore, the correct option is d. none of the above.
The accountant for Christiane Company forgot to make an adjusting entry for Depreciation expense for the current year. Which of the following is one of the effects of this error in the current year?
A. Revenues are overstated.
B. Net income is understated.
C. Total assets are overstated.
D. Total assets are understated.
Answer:
B. Net income is understated.
Explanation:
While computing the bills for an organization, if one makes an error while valuation of the of the goods or an inventory or a depreciation expenses, on the balance sheet, then it causes a corresponding error in the balance sheet for the company, which is represented on the income statement.
Thus in the context, when the accountant of Christiane company did not make an entry of the depreciation cost in the balance sheet for the current year, it produces an error for the current year in the form of the net income that is being understated.
Kemper Company's balance sheet and income statement are shown below (in millions of dollars). The company and its creditors have agreed upon a voluntary reorganization plan. In this plan, each share of the $5 preferred will be exchanged for one share of $1.00 preferred with a par value of $25 plus one 9% subordinated income debenture with a par value of $75. The $9 preferred issue will be retired with cash. The company's tax rate is 30 percent.
Balance Sheet prior to Reorganization (in millions
Current Assets 400 Current liabilities 350
Net fixed assets 450 Advance payments 20
$5 preferred stock, $100 par value (1,000,000) shares 100
$9 preferred stock, no par, callable at 100 (160,000 shares) 30
Common stock, $0.10 par value (10,000,000) shares 50
Retained earnings 300
Total assets 850 Total claims 850
a. Construct the pro forma balance sheet after reorganization takes place. Show the new preferred at its par value.
b. Construct the pro forma income statement after reorganization takes place. How does the recapitalization affect net income available to common stockholders?
Answer:
Kemper Company
a. Pro forma Balance Sheet after Reorganization (in millions)
Current Assets 400
Net fixed assets 450
Total assets 850
Current liabilities 350
Advance payments 20
9% subordinated Debenture,
$75 par value (1,000,000) 75
$1 preferred stock, $25 par value
(1,000,000) shares 25
Common stock, $0.10 par value
(10,000,000) shares 50
Retained earnings 300
b. Pro forma Income Statement after Reorganization (in millions)
Retained earnings 300
Income tax 128.6 ($300/(1 - 0.3) - $300)
add $5 preferred dividend 5
$9 preferred dividend 1.44
Less: 9% debenture interest (6.75)
Income before taxes $428.29
Income tax 128.49
Income after taxes $299.80
Preferred dividend 1.00
Retained earnings $298.80
The recapitalization reduces the net income available to common stockholders by $0.2 million.
Explanation:
a) Data and Calculations:
Kemper Company
Balance Sheet prior to Reorganization (in millions
Current Assets 400
Net fixed assets 450
Total assets 850
Current liabilities 350
Advance payments 20
$5 preferred stock, $100 par value
(1,000,000) shares 100
$9 preferred stock, no par,
callable at 100 (160,000 shares) 30
Common stock, $0.10 par value
(10,000,000) shares 50
Retained earnings 300
Total assets 850 Total claims 850
Transaction Analysis:
$5 preferred stock, $100 par value (1,000,000) shares $100 $1 Preferred stock, $25 par value (1,000,000) shares $25 9% subordinated Debenture, $75 par value (1,000,000) $75
$9 preferred stock, no par, callable at 100 (160,000 shares) 30 Cash $30
Total assets 850 Total claims 850
Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow
Units Dollars
April (actual) 4,500 720,000
May (actual) 2,200 352,000
June (budgeted) 5,000 800,000
July (budgeted) 4,000 799,000
August (budgeted) 3,000 600,000
All sales are on credit. Recent experience shows that 28% of credit sales are collected in the month of the sale, 42% in the month after the sale, 27% in the second month after the sale, and 3% prove to be uncollectible. The product's purchase price is $110 per unit, 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has the policy to maintain an ending monthly inventory of 18% of the next month's unit sales plus a safety stock of 180 units. The April 30 and May 31 actual Inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,584,000 and are paid evenly throughout the year In cash. The company's minimum cash balance at the month-end is $120,000. This minimum is maintained, If necessary, by borrowing cash from the bank. If the balance exceeds $120,000, the company repays as much of the loan as It can without going below the minimum. This type of loan carries an annual 13% interest rate. On May 31, the loan balance is $39,500, and the company's cash balance Is $120,000
Required:
a. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July.
b. Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April, May, June, and July.
c. Prepare the merchandise purchases budget for May, June, and July. Report calculations in units and then show the dollar amount of purchases for each month.
d. Prepare a schedule showing the computation of cash payments for product purchases for June and July.
e. Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month.
Answer:
a. Total cash collections are as follows:
June = $605,760
July = $715,580
b. Ending units are as follows:
April = 623 units
May = 1,295 units
June = 1,055 units
July = 815 units
c-1. Units purchased are as follows:
May = 2,872 units
June = 4,760 units
July = 2,130 units
c-2. Purchases amount are as follows:
May = $315,920
June = $523,600
July = $234,300
d. Cash payments for product purchases are as follows:
June = $440,528
July = $350,020
e. Loan Balance End of Month are as follows:
June = $1,324,163
July = $2,226,541
Explanation:
Note: See the attached excel file for requirements a, b, c, d, and e.
In the attached excel file under requirement e, the following calculations is made:
June additional loan = Minimum required cash balance - June Preliminary cash balance = $110,000 - (-$1,169,663) = $110,000 + $1,169,663 = $1,279,663
July additional loan = Minimum required cash balance - July Preliminary cash balance = $110,000 - (-$792,378) = $110,000 + $792,378 = $902,378
Biopure is a company that manufactures and markets oxygen therapeutics. Its products are Hemopure for human use and Oxyglobin for animal use. Both have been developed as alternatives to red blood cell transfusions. Which of the following would be part of Biopure's internal environment?
a. approval by the U.S.Food and Drug Administration to allow veterinarians to use Oxyglobin.
b. the global market for the raw materials needed to make Hemopure and Oxyglobin
c. the patented manufacturing process that Biopure uses to produce Hemopure and Oxyglobin
d. a competitor developing a similar product
e. changes in patent law
Answer: c. the patented manufacturing process that Biopure uses to produce Hemopure and Oxyglobin
Explanation:
The internal environment of a company refers to those actions and activities that have to do with the way the company is running from within the country such as corporate culture and management.
In patenting, the Patent that was received will be company propriety and as no one outside the company can access it, it is part of the internal environment that works to ensure that that the company is ran smoothly.
Grouper Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase.
List price of new melter $21,804
Cash paid 13,800
Cost of old melter (5-year life, $966 salvage value) 15,456
Accumulated Depreciation-old melter (straight-line) 8,694
Secondhand fair value of old melter 7,176
Required:
Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Sage’s fiscal year ends on December 31, and depreciation has been recorded through December 31, 2020.
Answer and Explanation:
The journal entries are shown below;
a. the exchange has commercial substance
Depreciation expense (($15,456 - $966) ÷ 5 × 4 ÷ 12 ) $966
To Accumulate depreciation $966
(being depreciation expense is recorded)
New Melter ($13,800 + $7,176) $20,976
accumulated depreciation ($8,694 + $966) $9,660
To loss on sale of melter $1,380
To old melter $15,456
To cash $13,800
(being equipment exchange is recorded)
b. The exchange lacks commercial substance
Depreciation expense (($15,456 - $966) ÷ 5 × 4 ÷ 12 ) $966
To Accumulate depreciation $966
(being current depreciation expense is recorded)
New Melter ($13,800 + $7,176) $20,976
accumulated depreciation ($8,694 + $966) $9,660
To loss on sale of melter $1,380
To old melter $15,456
To cash $13,800
(being equipment exchange is recorded)
For what reason might keeping an accounts payable subsidiary ledger be unnecessary for a business? A. if the business is very small B. if the business processes invoices for payment. C. if the business pays only on account D. if the business has more customers then vendors
Answer:
A. if the business is very small
Explanation:
Subsidiary ledgers are maintained to support the entries in the main ledger. They give more details of the individual items in the main ledger.
They are usually used when a company has large sales volumes to make sure transactions are accurate.
However in small businesses there no need for subsidiary ledger in a small company.
Accounts payable subsidiary ledger shows details of amounts owed to suppliers by a business.
When the business is very small there will be no need for this.
Marigold Corp. and its divisions are engaged solely in manufacturing operations. The following data pertain to the segments in which operations were conducted for the year ended December 31, 2021.
Assets
Industry Revenue Profit 12/31/21
A $8010000 $1315000 $15920000
B 6740000 1122000 13840000
C 5010000 960000 10110000
D 2300000 440000 52100
In its segment information for 2018, how many reportable segments does Marigold have?
a. Three
b. Four
c. Five
d. Six
Answer: b. Four
Explanation:
A reportable segment needs to satisfy at least one of the following criteria:
Its revenues need to be 10% or more of total revenue.Its profit or less has to be 10% or more of total profit or lossIts assets have to be 10% or more of total combined assetsTotal revenue:
= 8,010,000 + 6,740,000 + 5,010,000 + 2,300,000
= $22,060,000
Total profit:
= 1,315,000 + 1,122,000 + 960,000 + 440,000
= $3,837,000
Total assets
= 15,920,000 + 13,840,000 + 10,110,000 + 5,210,000
= $45,080,000
Industry A proportion of total revenue:
= 8,010,000 / 22,060,000
= 36.3%
Qualifies as reportable segment
Industry B proportion of total revenue:
= 6,740,000 / 22,060,000
= 31%
Qualifies as reportable segment
Industry C proportion of total revenue:
= 5,010,000 / 22,060,000
= 23%
Qualifies as reportable segment
Industry D proportion of total revenue:
= 2,300,000 / 22,060,000
= 10.4%
Qualifies as reportable segment
In the trade-off theory, debt levels chosen to balance interest tax shield against the costs of financial distress imply:________
a. an interior optimum (firm value maximizing) debt ratio
b. that investors are irrational, since they require lower returns the hgher the risk
c. that a firm would use little to no debt
d. that a firm would borrow as much as possible
Answer:
a) an interior optimum (firm value maximizing) debt ratio
Explanation:
Trade off Theory is about capital structure of an economic unit. It mentions about the benefit of debt - ie tax saving, as interest on debt is tax deductible; & cost of debt - bankruptcy & insolvency risk, due to fix interest cost.
The theory depicts the debt level, which is best to - balance interest tax shield against the costs of financial distress imply, which implies that it seeks a balance between benefit & cost of debt.
So, the theory finds the best interior optimum (firm value maximising) debt equity ratio.
Speedy has net income of $30,955, and assets at the beginning of the year of $212,000. Assets at the end of the year total $258,000. Compute its return on assets.
Answer:
13.17%
Explanation:
Given that;
Net income = $30,955
Asset at the beginning of the year = $212,000
Asset at the end of the year = $258,000
Return on assets = Net income / Average total assets
But,
Average total assets = (Assets at the beginning of the year + Assets at the end of the year ) / 2
Average total assets = ($212,000 + $258,000) / 2
Average total assets = $235,000
Therefore,
Return on assets = ($30,955 / $235,000) × 100
Return on assets = 13.17%
On January 1, 2018, Splash City issues $340,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $373,648.
Required:
1. Complete the first three rows of an amortization table.
Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value
1/1/18
6/30/18
12/31/18
On January 1, 2018, Splash City issues $340,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $373,648.
2. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.
Answer:
Splash City
1. 1. The first three rows of an amortization table.
Date Cash Paid Interest Expense Decrease in Carrying Value
Carrying Value
1/1/18 $0 $373,648
6/30/18 $15,300 $14,946 $354 373,294
12/31/18 $15,300 14,932 368 372,926
2. Journal Entries:
January 1, 2018L:
Debit Cash $373,648
Credit 9% Bonds Payable $340,000
Credit Bonds Premium $33,648
To record the proceeds from the bond issue, including the premium.
June 30, 2018:
Debit Interest Expense $14,946
Debit Amortization of Bonds Premium $354
Credit Cash $15,300
To record the first semiannual interest payment.
December 31, 2018:
Debit Interest Expense $14,932
Debit Amortization of Bonds Premium $368
Credit Cash $15,300
To record the second semiannual interest payment.
Explanation:
a) Data and Calculations:
January 1, 2018:
Face value of 9% bonds issued = $340,000
Proceeds from issue of bonds = 373,648
Premium on issue of bonds = $33,648
Coupon Interest rate = 9%
Payment = Semiannually on June 30 and December 31
Market interest rate = 8%
June 30:
Interest expense = $14,946 ($373,648 * 4%)
Cash payment = 15,300 ($340,000 * 4.5%)
Amortized premium $354
Fair value of bonds = $373,294 ($373,648 - $354)
December 31:
Interest expense = $14,932 ($373,294 * 4%)
Cash payment = 15,300 ($340,000 * 4.5%)
Amortized premium $368
Fair value of bonds = $372,926 ($373,294 - $368)
While on vacation, Kyle Kingston, the president and chief executive officer of Remstat, Inc., is called by the CEO of Viokam Corporation, who asks Kingston if Remstat would be interested in buying 25 percent of the outstanding shares of Viokam. Remstat is a billion dollar conglomerate which has contemplated acquiring Viokam for some time. Kingston tells Viokam's CEO that Remstat is not interested. Kingston tells Viokam’s CEO, however, that KKIM, Inc., would be willing to buy the shares of Viokam. Kingston is the 100 percent shareholder of KKIM. Viokam sells the shares to KKIM for $35 million. A year later, KKIM sells the shares for $55 million to a mutual fund company. When Remstat's directors discover KKIM's purchase and sale of the Viokam shares, they bring an action against Kingston on behalf of Remstat. Which of the following is correct?
1. Kingston may be held liable to Remstat because he usurped a corporate opportunity.
2. Kingston may not be held liable to Remstat because he became aware of this opportunity outside the scope of his duties as an officer of Remstat.
3. Kingston may not be held liable to Remstat because he acted within the discretion afforded him under the business judgment rule.
4. Kingston may be held liable to Remstat because he exceeded his authority to act for the corporation.
Answer: A. Kingston may be held liable to Remstat because he usurped a corporate opportunity.
Explanation:
Based on the information given in the question, the correct option is that Kingston may be held liable to Remstat because he usurped a corporate opportunity.
Usurpation of a corporate opportunity is typically regarded as a form of breach of duty and it arises when a worker in a particular company uses the information that he has for his own personal gain.
In this case, Kingston is the 100 percent shareholder of KKIM and uses the information that he has regarding the sabres to his benefit.
Therefore, the correct option is A.
On September 30, 2018, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1,000,000 immediately and then another $1,000,000 on September 30, 2020. An interest rate of 8% reflects the time value of money for this type of loan agreement.
What amount of interest expense, if any, would Corso record on December 31, 2019, the company’s fiscal year end?
a. $68,687.
b. $80,000.
c. $60,000.
d. $69,959.
Answer: $69,959
Explanation:
The amount of interest expense, that Corso will record on December 31, 2019, the company’s fiscal year end will be calculated thus:
First, we calculate the present value of payment which will be made on September 30,2020 and this will be:
= $1000000 × 0.857339
= $857339
Then, the interest expense on December 31,2018 will be:
= $857339 × 8%/12 × 3
= $17147
Therefore, the Interest expense on December 31,2019 will be:
= ($857339 + $17147) × 8%
= $874486 × 0.08
= $69959
A good is non-rivalrous if:____.
A. It is not possible to prevent an individual from using the good.
B. Those who are unwilling or unable to pay for the good do not obtain its benefits.
C. The quantity of the good is affected by the price a consumer pays for the good.
D. One person's benefit from the good does not reduce the benefit available to other people.
Answer:
D. One person's benefit from the good does not reduce the benefit available to other people.
Explanation:
A product (good) can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
According to the economist Philip Kotler in his book titled "Marketing management" he stated that, there are five (5) levels of a product. This includes;
1. Core benefit.
2. Generic product.
3. Expected product.
4. Augmented product.
5. Potential product.
The core benefit of a product can be defined as the basic (fundamental) wants or needs that is being satisfied, met and taken care of when a customer purchase a product.
A non-rivalrous product (good) is one in which a person's (buyer's) benefit from through the purchase of a good does not reduce or annul the benefit available to other people.
Select the correct answer from each drop-down menu.
Jerry's company has launched a new product following the market penetration pricing. What rates would his products have and on what would he
spend a lot on?
Jerry's company has launched a new product following the market penetration pricing. Thus, his products have____
and he is spending a lot on
____the product.
price
First blank:
A.) a high
B.) a low
C.) an above average
Second blank:
A.) packaging
B.) manufacturing
C.) advertising
Jerry's company has launched a new product following the market penetration pricing. Thus, his products have a low price and he is spending a lot on the advertising product price.
Using a lower price during the initial offering of a new product or service, firms utilize penetration pricing as a marketing approach to draw clients to the new offering.
A new product or service can more easily enter the market and draw clients away from rivals thanks to a reduced price. Pricing for market penetration is based on the principle of initially offering a new product at low rates to attract the attention of as many consumers as possible.
A price penetration strategy seeks to increase market share by luring consumers to test new products in the hopes that they would remain loyal after prices return to normal. An online news site that offers a trial month of a subscription-based service is an example of penetration pricing.
To learn more about penetration pricing refer to:
https://brainly.com/question/13566527
#SPJ1
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $2,310,000 (210,000 hours at $11/hour) and that factory overhead would be $1,510,000 for the current period. At the end of the period, the records show that there had been 190,000 hours of direct labor and $1,210,000 of actual overhead costs. Using direct labor hours as a base, what was the pre-determined overhead rate?
a. $5.17 per direct labor hour.
b. $7.00 per direct labor hour.
c. $6.42 per direct labor hour.
d. $5.84 per direct labor hour.
e. $6.25 per direct labor hour.
Answer:
Predetermined manufacturing overhead rate= $7.19 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours= 210,000
Estimated overhead costs= $1,510,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,510,000 / 210,000
Predetermined manufacturing overhead rate= $7.19 per direct labor hour
Carts Corporation
is trying to determine how long it takes for one product to pass through the production process. The following information was gathered regarding how many days the product spent in various production activities:
Activity Number of Days
Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Assembly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Handling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Painting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Packaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
a. Which of the above activities are value-added?
b. What is Carts' total cycle time?
c. Determine Carts' manufacturing efficiency ratio.
d. If Carts implements a total quality management program and a just-in-time inventory system, which of the above activities could be eliminated? What would be the change in Carts' manufacturing efficiency ratio?
Answer:
Following are the solution to the given points:
Explanation:
For point a:
[tex]\text{Value added activities = Assembly and Paintings}[/tex]
For point b:
[tex]Activity \ \ \ \ \ \ \ \ \ \ \ \ \ Number \ of \ days \\\\[/tex]
[tex]Inspection \ \ \ \ \ \ \ \ \ \ \ \ \ 4 \\\\ Storage\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3\\\\ Assembly\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 5\\\\ Handling \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2\\\\ Painting \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3\\\\ Packaging \ \ \ \ \ \ \ \ \ \ \ \ \ 1\\\\ Total \ cycle\ time \ \ \ \ \ 18\ days[/tex]
For point c:
[tex]\text{Efficiency ratio of production} = \frac{\text{time added value}}{\text{total cycle time}} \\\\[/tex]
[tex]\text{VAT = 5 days assembled + 3 days in paint = 8 days in painting}[/tex]
[tex]= \frac{8}{18} \\\\ = 44.44\%[/tex]
For point d:
In inspection, TQM will cut back 4 days
JIT reduces storage time by 3 days.
Reduction total = 7 days
Retrofiled The total time of the cycle[tex]= 18 \ days - 7 \ days = 11\ days[/tex]
Revised efficiency of production [tex]=\frac{8 \ days}{ 11\ days} =72.73\%[/tex]
The value added activities are assembly and paintings, the total chart's time is 18 days, the manufacturing ratio is 44.44% and the revised value of efficiency is 72.73%.
For point A:
What are value added activities?Value Added Activities are those activities that modify the product from raw material into finished goods that the customer is willing to pay for.
Hence, the value added activities are assembly and paintings.
For point B:
The chart of the total cycle time is given in the image below:
For option C:
[tex]\text{Production Efficiency Ratio}=\dfrac{\text{Time Value Added}}{\text{Sum of Time Cycle}}\\\\\text{Value Added Time(VAT)}= \text{Assembled 5 Days}+\text{Days in Paint}\\\\=8\text{Days}\\\\=\dfrac{8}{18}= 44.44\%.[/tex]
For option D:
Time Quantity Management = 4 days,
Just-in-time Inventory Shortage Time= 3 days,
Reduction Total = 7 days,
[tex]\text{Total Time of cycle}=\text{18 days - 7 days}\\\\=11\text{days}[/tex]
[tex]\text{Revised Efficiency Production}=\frac{\text{8 days}}{\text{11 days}}\\\\\\=72.73\%.[/tex]
Learn more about value-added, refer:
https://brainly.com/question/22241921
Choose the sentence that uses correct punctuation.
A. Data may be illustrated in many forms: tables, bar charts, line charts, pie charts, flowcharts, organizational charts, or photographs.
B. Data may be illustrated in many forms: tables: bar charts: line charts: pie charts: flowcharts: organizational charts: or photographs.
C. When he arrived we began the presentation. When he arrived, we began the presentation. Alex, is not attending, the sales meeting.
D. Alex is not attending the sales meeting.
Answer: A
Explanation:
"Data may be illustrated in many forms: tables, bar charts, line charts, pie charts, flowcharts, organizational charts, or photographs." uses correct punctuation. Option (a) is correct.
What do you mean by Data?Data are pieces of information that have been converted into a format that can be moved or processed quickly.
Punctuation, also known as interpunction, is the use of white space, traditional signs (also known as punctuation marks), and specific typographical methods to help readers understand and interpret written material correctly, whether they are reading it silently or loudly. "It is the practice, action, or system of adding points or other small marks into texts to facilitate understanding; segmentation of text into phrases, clauses, etc., by means of such marks," is another definition.
Therefore, Option (a) is correct. "Data may be illustrated in many forms: tables, bar charts, line charts, pie charts, flowcharts, organizational charts, or photographs." uses correct punctuation.
Learn more about Data, here;
https://brainly.com/question/10980404
#SPJ5
On July 1, Lopez Company paid $1,500 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. Zim Company has a Supplies account balance of $5,600 at the beginning of the year. During the year, it purchased $2,300 of supplies. As of December 31, a physical count of supplies shows $950 of supplies available.
Required:
Prepare the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2017.
Answer:
Dr Supplies expense $6,950
Cr Supplies $6,950
Explanation:
Preparation of the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2017.
Dr Supplies expense $6,950
Cr Supplies $6,950
($5,600+$2,300-$950)
(To record the balance of the Supplies account and the Supplies Expense account)
Beginning Supplies account balance $5,600
Add purchased $2,300
Less physical count of supplies $950
=$6,950
The financial statements for Highland Corporation included the following selected information:
Common stock $ 1,000,000
Retained earnings $ 770,000
Net income $ 1,020,000
Shares issued 100,000
Shares outstanding 77,000
Dividends declared and paid $ 690,000
The common stock was sold at a price of $31 per share.
1. What is the amount o f additional paid-in capital?
2. What was the amount of retained earnings at the beginning of the year?
3. How many shares are in treasury stock?
Answer:
Highland Corporation
1. The amount of additional paid-in capital is:
= $210,000.
2. The amount of the retained earnings at the beginning of the year is:
= $440,000.
3. The number of shares in treasury stock is:
= 23,000 shares.
Explanation:
a) Data and Calculations:
Common stock $ 1,000,000
Retained earnings $ 770,000
Net income $ 1,020,000
Shares issued 100,000
Shares outstanding 77,000
Dividends declared and paid $ 690,000
Price of common stock = $31 per share
1. The amount of additional paid-in capital is:
Issued stock = 100,000 * ($31 - $10) = $210,000
2. The amount of the retained earnings at the beginning of the year:
Retained earnings at the ending $ 770,000
Add dividend 690,000
Total available for distribution $1,460,000
Less Net income 1,020,000
Retained earnings at the beginning $440,000
3. Treasury stock = 23,000 (100,000 - 77,000)
The following transactions occurred during July:
a. Received $1,090 cash for services provided to a customer during July.
b. Issued common stock for $5,800 cash.
c. Received $940 from a customer in partial payment of his account receivable which arose from sales in June.
d. Provided services to a customer on credit, $565.
e. Borrowed $7,900 from the bank by signing a promissory note.
f. Received $1,440 cash from a customer for services to be performed next year.
Required:
What was the amount of revenue for July?
Answer:
$1,655
Explanation:
Revenue results from transactions with customers. We recognize revenue when services or goods have been transferred to customers not as when they are paid.
Calculation of Revenue for July :
Transaction a $1,090
Transaction d $565
Total Revenue $1,655
therefore,
The amount of revenue for July is $1,655.
Complete the following sentence.
Today, marketing strategies are generally divided into two sectors: inbound and
Answer:
Today, marketing strategies are generally divided into two sectors: inbound and
outbound.
Explanation:
Marketing strategies are broadly divided into two. One is inbound marketing strategy, which aims to attract customers, who have already indicated interest in an entity's products and services. They are already out there trying to reach out to the entity in order to satisfy their needs. As a marketing strategy category, it utilizes pull marketing activities to create brand awareness and attract willing new customers, including content, blogs, events, search engine optimization (SEO), and social media marketing. Outbound marketing strategy uses push marketing activities to chase customers. For example, it uses TV, radio, and other media ads, trade shows, cold calling, and cold emails.
Acct. Optimistic Likely Activity Variance
ID Description Predecessor Mosta a Pessimistic Time (te) [(b - a)/6]2 Critical 7
(a) (m) (b)
1 Design package None 6 12 24 13 9 x
2 Design product 1 18 19 28 20.33 2.78 x
3 Build package 1 4 7 10 7 1
4 Secure patent 2 21 30 39 30 9 x
5 Build product 2 17 29 47 30 25 x
6 Paint 3,4,5 4 7 12 7.3 1.78 x
7 Test market 6 13 18 19 16 1 x
(m) (b) Time (te) 1 Design package
The Variance for the activity Secure patent equals to:_____.
Answer thats dificult
Explanation: thats dificult
Gundy Company expects to produce 1,213,200 units of Product XX in 2020. Monthly production is expected to range from 80,000 to 114,000 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $7, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $1. In March 2020, the company incurs the following costs in producing 97,000 units: direct materials $515,000, direct labor $670,000, and variable overhead $1,073,000. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March. (List variable costs before fixed costs.)
Answer:
Gundy Company
Flexible Budget Report for March 2020:
Actual Budget Flexible Budget Variance
Direct materials $515,000 $485,000 $30,000 U
Direct labor 670,000 679,000 9,000 F
Variable overhead 1,073,000 1,067,000 6,000 U
Actual fixed costs 679,000 679,000 0 None
Total costs incurred $2,937,000 $2,910,000 $27,000 U
Explanation:
a) Data and Calculations:
Expected production of Product XX in 2020 = 1,213,200 units
Monthly production range = 80,000 to 114,000 units
Budgeted variable manufacturing costs per unit are:
Direct materials $5
Direct labor $7
Overhead $11
Total variable $23
Fixed manufacturing costs per unit:
Depreciation are $6
Supervision are $1
Total fixed costs $7
Total costs = $30
March 2020 costs incurred for 97,000 units:
Direct materials $515,000
Direct labor $670,000
Variable overhead $1,073,000
Actual fixed costs 679,000
Total costs incurred $2,937,000
Flexible Budget Report for March 2020:
Actual Budget Flexible Budget Variance
Direct materials $515,000 $485,000 $30,000 U
Direct labor 670,000 679,000 9,000 F
Variable overhead 1,073,000 1,067,000 6,000 U
Actual fixed costs 679,000 679,000 0 None
Total costs incurred $2,937,000 $2,910,000 $27,000 U
Winslow Company expects sales of its financial calculators to be $192,000 in the first quarter and $248,000 in the second quarter. Its variable overhead is approximately 15 percent of sales, and fixed overhead costs are $49,000 per quarter.
Required:
Compute Winslow's manufacturing overhead budget for the first two quarters.
Answer:
Budgeted manufacturing overhead for 1st Quarter = [$192,000*15%] + $49,000
= $28,800 + $49,000
= $77,800
Budgeted manufacturing overhead for 2nd Quarter = [$248,000*15%] + $49,000
= $37,200 + $49,000
= $86,200
Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 370 units and of Product B is 740 units. There are three activity cost pools, with total cost and activity as follows:
Total Activity
Activity Cost Pools Total Cost Product A Product B Total
Activity 1 $23,205 900 150 1,050
Activity 2 $38,850 1,950 1,550 3,500
Activity 3 $10,598 145 245 390
The activity rate for Activity 2 is closest to:______.
a. 43.17.
b. 25.06.
c. 19.92.
d. 11.10.
Answer:
Predetermined manufacturing overhead rate (A2)= $11.1
Explanation:
Giving the following information:
Total Activity
Activity Cost Pools Total Cost Total
Activity 2 $38,850 3,500
To calculate the activity rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate (A2)= 38,850 / 3,500
Predetermined manufacturing overhead rate (A2)= $11.1