Orange Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the year in advance ($600 per year) or two years in advance ($960). In September 2020, the company collected the following amounts applicable to future services:

October 2020-September 2022 services (200 two-year contracts) $192,000
October 2020-September 2021 services (200 one-year contracts) 120,000
Total $312,000

As a result of this, Orange Cable should report as gross income for 2021, the year following receipt:

a. $54,000
b. $78,000
c. $258,000
d. $312.000

Answers

Answer 1

Answer:

Orange Cable TV Company

As a result of this, Orange Cable should report as gross income for 2021, the year following receipt:

$186,000

Explanation:

a) Data and Calculations:

Annual subscriptions = $600 per year

Two-years subscriptions = $960

September 2020 collections:

October 2020-September 2022 services (200 two-year contracts) = $192,000

Monthly subscriptions = $192,000/24 = $8,000

October 2020-September 2021 services (200 one-year contracts) = 120,000

Monthly subscriptions = $120,000/12 = $10,000

Total =  $312,000

Collections for 2021:

a. Monthly subscriptions of $8,000 * 12 = $96,000

b. Monthly subscriptions of $10,000 * 9 =   90,000

Total collections for 2021 = $186,000


Related Questions

"Easton Company uses 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 130 $11 5/5 Purchase 280 $13 5/15 Purchase 140 $15 5/25 Purchase 160 $17 Sales were 430 units at $25. Using the FIFO method, determine the dollar value of Ending Inventory for the month of May.”

Answers

Answer:

$4,520

Explanation:

The computation of the dollar value of the ending inventory using the FIFO method is as follows:

But before that the ending inventory is

= Beginning inventory + purchased units + purchased units + purchased units - sales units

= 130 units + 280 units + 140 units + 160 units - 430 units

= 280 units

Now the ending inventory is

= 160 units × $17 + (280 units - 160 units) × $15

= $2,720 + $1,800

= $4,520

Predetermined Overhead Rate, Overhead Variances, Journal Entries Craig Company uses a predetermined overhead rate to assign overhead to jobs. Because Craig's production is machine intensive, overhead is applied on the basis of machine hours. The expected overhead for the year was $4,910,400, and the practical level of activity is 372,000 machine hours. During the year, Craig used 379,000 machine hours and incurred actual overhead costs of $4,922,800. Craig also had the following balances of applied overhead in its accounts:

Work-in-process inventory $620,800
Finished goods inventory 627,200
Cost of goods sold 1,952,000

Required:

a. Compute a predetermined overhead rate for Craig. Round your answer to the nearest cent.
b. Compute the overhead variance, and label it as under- or overapplied.
c. Assuming the overhead variance is immaterial, prepare the journal entry to dispose of the variance at the end of the year.
d. Assuming the overhead variance is material, prepare the journal entry that appropriately disposes of the overhead variance at the end of the year.

Answers

Answer:

Very Good Answer.. By study this Indian great Pilot...

A new contract has just been ratified between the local truck drivers union and farley's national trucking. Jerry, a line manager at farleyś, wants to know how the new contract affects his role as a manager. Who would be the best person to provide him with the info?
The coordination liaison
the workers compensation coordinator
the truck drivers
the labor relations specialists

Sarah is interviewing the sales manager to learn more about the skills, responsibility, and behaviors associated with the position. based on sarah's actions, we can conclude that she is conduction a

compensation classification
job analysis
employment comparison
performance appraisal

Answers

Answer:

1. the truck drivers

2. job analysis

Explanation:

Exercise 12-17B Direct: Preparing statement of cash flows and supporting note LO P1, P3, P5

Cash and cash equivalents balance, December 31, 2016 $ 35,000
Cash and cash equivalents balance, December 31, 2017 98,420
Cash received as interest 3,500
Cash paid for salaries 101,500
Bonds payable retired by issuing common stock (no gain or loss on retirement) 145,000
Cash paid to retire long-term notes payable 175,000
Cash received from sale of equipment 85,750
Cash received in exchange for six-month note payable 35,000
Land purchased by issuing long-term note payable 84,100
Cash paid for store equipment 33,250
Cash dividends paid 21,000
Cash paid for other expenses 56,000
Cash received from customers 679,000
Cash paid for inventory 353,080
Use the above information about the cash flows of Ferron Company to prepare a complete statement of cash flows (direct method) for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

Ferron Company

Statement of Cashflow for the year ended December 31, 2017

                                                                                                        $

Cash flow from Operating Activities

Cash received from customers                                                  679,000

Cash paid to Suppliers and Employees                                    (510,580)

Cash flow from Investing Activities

Cash received as interest                                                               3,500

Cash received from sale of equipment                                       85,750

Cash paid for store equipment                                                   (33,250)

Cash flow from Financing Activities

Payments to Retire long-term notes payable                           (175,000)

Cash dividends paid                                                                    (21,000)

Changes in Cash and Cash equivalents during the year       63,420

Beginning Cash and Cash equivalents balance                      35,000

Ending Cash and Cash equivalents balance                            98,420

Explanation:

The Cashflow statement shows changes in Cash and Cash equivalents during the reporting Period.

Note the Direct Method is required for preparation. This applies on the Cash flow from Operating Activity Section.

Only items involving the flow of Cash are shown on the face of the Cashflow statement. Any other transactions are disclosed in  Notes to Financial Statements.

Cash paid to Suppliers and Employees calculation

Cash paid for salaries                                       101,500

Cash paid for other expenses                          56,000

Cash paid for inventory                                   353,080

Cash paid to Suppliers and Employees         510,580

I knew their support was conditional even though they seemed friendly (use unconditional)​

Answers

Answer:

I know their support was not unconditional though they seem friends.

Explanation:

If you are the Bhutanese student then I am sure this question came in 2017 BHSEC. Best of luck.

John and Mary Johnson were divorced in January 2018. By terms of their divorce decree John had to pay alimony to Mary at the rate of $50,000 in 2018, $25,000 in 2019, and zero in 2020. For the first three years of the agreement, determine what portions of the payments are deductible by John and includible in Mary's gross income.

Answers

Answer:

$0 for both of them

Explanation:

The Tax Cuts and Jobs Act of 2017 excluded the deduction of alimony payment. This means that any alimony payment made to a spouse (if the divorce was settled after January 1, 2018) is not deductible anymore. nor it will be included in the gross income of the spouse that receives it. Basically, the IRS doesn't consider them anymore.

You expect to receive $9,300 three years from today. You also expect to receive $13,100 five years from today. When you receive each of the amounts, you will immediately deposit them into an investment account that pays interest rate of 7.3 percent per year. How much do you expect to be in your investment account nine (9) years from today

Answers

Answer:

around 70k-80k

Explanation:

Damian invests $5,000 today in an account earning 6% per year. How much is the investment worth in 4 years

Answers

Answer:

$6,312

Explanation:

The amount that the investment will be worth in 4 years is known as the future value. We compound the Present Value using the interest rate to determine the future value.

Note : Here I will use a financial calculator to compute the future value

PV = $5,000

r = 6 %

P/yr = 1

n = 4

Pmt = $0

Fv = ?

Thus, the investment will be worth $6,312 in 4 years.

Sofia worries that if something happens to her husband and he dies, she will lose everything—their home, their cars, etc. Which type of business should Sofia consult to see if there is a plan available to cover her expenses if her husband dies?

A.
stock-held savings institution

B.
web-only financial institution

C.
mutual fund company

D.
life insurance company

Answers

Answer:

D

Explanation:

She is worried about losing everything and having life insurance is what everyone does when wanting to keep something after a love one dies.

Answer:

D.

life insurance company

Explanation:

D.

life insurance company

f Brent, a contractor refuses to complete a room addition unless the homeowner pays him an additional $20,000, this may be construed as:

Answers

Answer:

Economic duress

Explanation:

We say there is an economic duress during a contract when one party to the contract threatens to terminate the contract if the other person does not agree to their demands. Brent is asking for more money, if he does not get this, he says he would leave the work unfinished.

When this happens, the other party may be left stuck and may have no option than to agree to the new demands of the contract.

Rose Riley's parents have booked and paid for a family trip to Aspen, Colorado, during her spring break. Rose's friends recently decided to drive to Destin, Florida, for spring break. Rose needs to decide whether to join her parents in Aspen or drive to the beach with her friends. The opportunity costs of joining her friends on the trip to Destin include each of the following EXCEPT:_________
a) her contribution to gas money for the drive to Destin.
b) the ski lift ticket her parents have already purchased for her.
c) her parents' anger if she skips the family trip to Aspen.
d) the hotel costs she will split with her friends in Destin.

Answers

Answer:

b) the ski lift ticket her parents have already purchased for her

Explanation:

Opportunity Cost is always included in decision making. It is said to be the amount or value of the best alternative that is forgone e.g. choosing Dubia over Vegas, the opportunity cost is that which is lost or forgone from not picking Vegas. Firms and individuals do make or take decision about what economic activites or project they want to be involved in. This analysis describes how choices are selected or made and how they could be worked on.

It is the most thoughtful alternative given up as the result of a decision taken or made.

Partners Cantor and Dickens have capital balances in a partnership of $160,000 and $240,000, respectively. They agree to share profits and losses as follows:

Cantor Dickens
As salaries $40,000 $48,000
As interest on capital at the beginning of the year 10% 10%
Remaining profits or losses 50% 50%
If income for the year was $120,000, what will be the distribution of income to Cantor?

A. $40,000
B. $52,000
C. $64,000
D. $56,000

Answers

Answer:

B. $52,000

Explanation:

Income fot the year                 $120,000

Less: C salaries                        $40,000

Less: D salaries                        $48,000

Less: Interest on Capital to C  $16,000   (10% * $160,000)

Less: Interest on Capital to C  $24,000  (10% * $240,000)

Loss                                           $8,000

Distribution of income

Salaries                                        $40,000

Add:  Interest on Capital             $16,000  (10% * $160,000)

Less: Remaining loss he share  ($4,000)  (50% * 80,00)0

Distribution of income to C       $52,000

To avoid insolvency, regulators decide to provide the bank with $25 million in bank capital. However, the bad news about the mortgages is featured in the local newspaper, causing a bank run. As a result, $30 million in deposits is withdrawn. Show the effects of the capital injection and the bank run on the balance sheet. Was the capital injection enough to stabilize the bank

Answers

Answer:

1. With the bank run and capital injection, more cash was made available for the bank.  There was increased demand on the bank to refund the deposits of customers.

2. The capital injection was not enough to stabilize the bank.  At least additional $5 million was required to meet the demand of the customers.

Explanation:

A bank run occurs when a greater number of a bank's customers demand the withdrawal of their deposits.  This event causes a spiral reaction that eventually leads to more customers withdrawing their deposits, resulting in the bank's collapse if no outside capital injection is made within the shortest period of time.

A joint survey by Parade magazine and Yahoo! found that 59% of American workers say t

Answers

Answer:

wo is to chiscake ezz

Explanation:

let's go

1 batir mase

1 introducion tu microandas an wuala

chiskae ready mmmmmmm yomui

An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 8.75% yields, what yield must municipals offer for the investor to prefer them to corporate bonds

Answers

Answer:

6.125%

Explanation:

Calculation for what yield must municipals offer for the investor to prefer them to corporate bonds

The after-tax yield on the corporate bonds is: 8.75% x (1 - 0.30)

The after-tax yield on the corporate bonds is= 0.0875x 0.7

The after-tax yield on the corporate bonds is= 0.06125*100

The after-tax yield on the corporate bonds is= 6.125%

Therefore what yield must municipals offer for the investor to prefer them to corporate bonds is

6.125%

The management of Rocko's Pizzeria is considering a special promotion for the last two weeks of October, which is normally a relatively low-demand period. The special promotion would involve selling two medium pizzas for the price of one, plus 1 cent. The medium pizza normally sells for $12.99 and has variable expenses of $4.50. Expected sales volume without the special promotion is 600 medium pizzas per week.
Required:
(a) Calculate the total contribution margin generated by the normal volume of medium pizzas in a week. (Do not round your intermediate calculations. Omit the "$" sign in your response.) Contribution margin $
(b) Calculate the total number of medium pizzas that would have to be sold during the 1-cent sale to generate the same amount of contribution margin that results from the normal volume. (Do not round your intermediate calculations.)

Answers

Answer:

(a) Calculate the total contribution margin generated by the normal volume of medium pizzas in a week.

contribution margin per pizza = $12.99 - $4.50 = $8.49

total contribution margin = $8.49 x 600 = $5,094

(b) Calculate the total number of medium pizzas that would have to be sold during the 1-cent sale to generate the same amount of contribution margin that results from the normal volume.

new contribution margin = ($13 / 2) - $4.50 = $2

in order to have the same contribution margin, they would need to sell $5,094 / $2 = 2,547 pizzas

Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:

Engine parts $760,400
Shop direct labor 555,000
Shop and repair equipment depreciation 57,000
Shop supervisor salaries 158,500
Shop property taxes 28,800
Shop supplies 22,100
Advertising expense 15,200
Administrative office salaries 65,400
Administrative office depreciation expense 8,400
Total costs and expenses $1,670,800

The average shop direct labor rate is $15.00 per hour.

Required:
Determine the predetermined shop overhead rate per direct labor hour.

Answers

Answer:

See bekow

Explanation:

Number of direct labor hours = 555,000 / 15 = 37,000

Overhead cost = $57,000 + $158,500 + $28,800 + $22,100

If people begin to favor science fiction novels to a greater degree than previously, the demand for science fiction novels _____________

Answers

Increases, is the answer.

what is market structure​

Answers

Answer:

it ishow firms are differentiated and categorised based on types of goods they sell and how the operations are affected by external forces and elements

Explanation:

it makes it easier to understand the characteristics of diverse markets

Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
Average cost per unit

Direct Materials $4.85
Direct Labor $4.70
Variable manufacturing overhead $1.65
Fixed manufacturing overhead $10.00
Fixed selling expense $3.45
Fixed administrative expense $1.50
Sales commissions $0.60
Variable administrative expense $0.55
If the selling price is $27.00 per unit, the contribution margin per unit sold is closest to:
A: $17.45
B: $0.30
C: $14.65
D: $5.80

Answers

Answer:

the contribution margin is $14.65

Explanation:

The computation of the contribution margin is shown below:

As we know that

Contribution Margin per unit = Selling price per unit - Variable costs per unit

= ($27) - ($4.85 + $4.70 + $1.65 + $0.60 + $0.55)

= $27 - $12.35

= $14.65

Hence, the contribution margin is $14.65

Sandra would like to organize LAB as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 9 percent annual before-tax return on a $710,000 investment. Sandraâs marginal income tax rate is 37 percent, and her tax rate on dividends and capital gains is 23.8 percent (including the 3.8 percent net investment income tax). If Sandra organizes LAB as an LLC, she will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. LABâs income is not qualified business income (QBI) so Sandra is not allowed to claim the QBI deduction. Assume that LAB will distribute all of its after-tax earnings every year as a dividend if it is formed as a C corporation. (Round your intermediate computations to the nearest whole dollar amount.)

Required:
a. How much cash after taxes would Sandra receive from her investment in the first year if BAL is organized as either an LLC or a C corporation?
b. What is the overall tax rate on BALâs income in the first year if BAL is organized as an LLC or as a C corporation?

Answers

Answer:

Sandra

LAB LLC (taxed as a sole proprietorship)

Annual Income = $63,900

Additional self-employment tax (2.9%) = $1,853 (2.9% * $63,900)

Additional Medicare tax (0.9%) = $575

FICA Tax rate (7.65%) = $4,888

After-tax income $56,584

Tax expense = $7,316 ($63,900 - $56,584)

LAB (taxed as a C corporation)

After-tax income = $40,257 ($63,900 - $23,643)

Dividends and capital gains = $8,051.40 (20% excluding the 3.8%)

Income after dividends and capital gains $32,206

Tax expense = $31,694 ($63,900 - 32,206)

b. Overall tax rate on BAL's income:

1. Organized as an LLC

$7,316/$63,900 * 100

= 11.45%

2. Organized as a C Corporation:

$31,694/$63,900 * 100

= 49.6%

Explanation:

a) Data and Calculations:

Expected annual before-tax return = 9%

Investment = $710,000

The annual return = $63,900 ($710,000 * 9%)

Marginal income tax rate = 37%

Income tax expense = $23,643 ($63,900 * 37%)

After-tax income = $40,257 ($63,900 - $23,643)

Dividends and capital gains = $8,051 (20% excluding the 3.8%)

Income after dividends and capital gains $32,206

c. During a conversation with the credit manager, one of Tabor's sales representatives learns that a $1,281 receivable from a bankrupt customer has not been written off but was considered in the determination of the appropriate year-end balance of the Allowance for Bad Debts account balance. What is the effect of write-off on 2019 net income

Answers

Answer:

Tabor

The effect of the write-off of the bad debt or uncollectible is a reduction of the 2019 net income by $1,281.

Explanation:

The write-off of the bad debt also reduces the Allowance for Bad Debts account balance and the Accounts Receivable balance in the account of Tabor by $1,281.  The purpose is to accurately report Tabor's net income by taking into account all expenses and losses, just as all revenues and incomes must be accounted for.  This gives a more accurate picture of Tabor's financial performance during the current financial period.

Smith Company adds its annual cash investment to plan assets in the amount of $5 million. The journal entry to record this includes

Answers

Answer:

A debit to plan assets

Explanation:

Based on the information given we were told that the Company added its annual cash investment to plan assets in the amount of $5 million which means that The journal entry to record this will includes A debit to plan assets of the amount of $5 million which was the amount that was added to annual cash investment to plan assets.

What are the 4 types of customer
segmentations?

Answers

Answer:

Demographic Segmentation.

Psychographic Segmentation.

Geographic Segmentation.

Behavioral Segmentation.

Explanation:

Answer:

I believe the 4 basic types of market segmentation are:

Demographic Segmentation.

Psychographic Segmentation.

Geographic Segmentation.

Behavioral Segmentation.

Explanation:

I hope I am not wrong.

Agee Company uses a process-costing system... Agee Company uses a process-costing system for its single product. Material A is added at the beginning of the process; in contrast, material B is added when the units are 50% complete. The firm's ending work-in-process inventory consists of 6,000 units that are 75% complete. Which of the following correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory?

a. A, 4,800; B, 0.
b. A, 4,800; B, 4,800.
c. A, 6,000; B, 0.
d. A, 6,000; B, 4,800.
e. A, 6,000; B, 6,000.

Answers

Answer:

Agee Company

The equivalent units of production with respect to materials A and B in the ending work-in-process inventory are:

e. A, 6,000; B, 6,000.

Explanation:

a) Data and Calculations:

Material A is added at the beginning of the process and is 100% complete

Material B is added at the stage when Material A is 50% complete and is 100% complete at this stage.

If the firm's ending work-in-process inventory = 6,000 units that 75% complete, it implies that 100% materials of A were added and 100% materials of B were added.

Therefore, the equivalent units of materials A and materials B are 6,000 units each.

Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 10 million bottles of wine were sold every month at a price of $4 per bottle. After the tax, 3 million bottles of wine are sold every month; consumers pay $7 per bottle, and producers receive $2 per bottle (after paying the tax).
The amount of the tax on a bottle of wine is -----per bottle. Of this amount, the burden that falls on consumers is-------per bottle, and the burden that falls on producers is------per bottle.
True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers.
a) True
b) False

Answers

Answer:

The amount of the tax on a bottle of wine is $5 per bottle. Of this amount, the burden that falls on consumers is $3 per bottle, and the burden that falls on producers is $2 per bottle.

tax per bottle = $7 - $2 = $5consumers pay an extra $7 - $4 = $3 per bottleproducers pay $7 - $5 = $2 per bottle

True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers.

b) False

The negative effect is the same regardless of who pays for it. Taxes create deadweight losses that affect both producers and consumers.

A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $21,225.00 per year (all expenses included). Tuition will increase by 3.00% per year going forward. The professor's oldest daughter, Sam, will start college in 16 years, while his youngest daughter, Ellie, will begin in 18 years. The professor is saving for their college by putting money in a mutual fund that pays about 9.00% per year. Tuition payments are at the beginning of the year and college will take 4 years for each girl. (Sam's first tuition payment will be in exactly 16 years)

The professor has no illusion that the state lottery funded scholarship will still be around for his girls, so how much does he need to deposit each year in this mutual fund to successfully put each daughter through college. (ASSUME that the money stays invested during college and the professor will make his last deposit in the account when Sam, the OLDEST daughter, starts college.)

Answer Format: Currency: Round to: 2 decimal places.

Answers

Answer:

It will make yearly deposits of $ 6,053.60

Explanation:

First, we have two phases:

the first which is the accumulation phase:

<---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|--->

                                                ^

which lasts until Sam's 1st year.

Then, we have the withdrawals phase

                               Graduation of Ellie

<---|----|----|----|----|----|---->

    ^Sam 1st year

               ^Ellie 1st year

We solve for the value of sam's first college year.

21,225 (1.03)^16 = 34,059.89

Then we solve for the present value of a growing annuity:

[tex]\displaystyle \frac{P}{r-g} \left[1 - \left(\frac{1+g}{1+r}\right)^n \right] \\P = $first payment\\r = interest\\g= growth\\n = time[/tex]

[tex]\displaystyle \frac{34059.89}{0.09-0.03} \left[1 - \left(\frac{1+0.03}{1+0.09}\right)^4 \right][/tex]

PV  = 115,043.63

Then we do the same with Ellie:

P $36,134.1373 (we adjust by two years)

r 0.09

g  0.03  

n 4

PV  122,049.78  

and then, we adjust for the 2-years difference:

122,049.78 / 1.09^2 = 102726.8613

Value of tuiton cost in 16 years for both daughters:

115,043.63 + 102,726.86  = 217,770.49

Now we solve for the yearly payment of an annuity due ( as the professor pays at the beginning) of 16 years:

Installment of a future annuity

[tex]FV \div \displaystyle \frac{(1+r)^{time} +1}{rate}(1+rate) = C\\[/tex]

FV  $217,770.49

time 16

rate 0.09

[tex]217770.49 \div \frac{(1+0.09)^{16}-1 }{0.09} = C\\[/tex]

C  $ 6,053.602

An established process for assessing quality of care or services in which an organization demonstrates that it meets a set of minimum standards is called

Answers

Answer:

Quality assessment

Explanation:

Quality assessment is a set of processes that is used to ensure progressive improvement in health care delivery by evaluating structure, process, and outcome in a health care organisation.

Quality standards are set for different criteria and the quality assurance officer follows certain steps to ascertain if minimum standard is being met.

If however the quality standard is below expectations, Tha cause is determined with a view of making improvement.

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:

Department
Cutting Finishing
Direct labor-hours 6,100 72,000
Machine-hours 59,000 3,200
Total fixed manufacturing overhead cost $390,000 $443,000
Variable manufacturing overhead per machine-hour $3.00 -
Variable manufacturing overhead per direct labor-hour - $4.75

a. Compute the predetermined overhead rate to be used in each department.
b. Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following:

Department
Cutting Finishing
Direct labor-hours 4 19
Machine-hours 80 4
Materials requisitioned $770 $360
Direct labor cost $36 $180
Compute the total manufacturing cost assigned to Jobe 203.

c. Would you expect substantially different amounts of overhead cost to be charged to some jobs if the company use a plantwide overhead rate based on direct labor-hours instead of using departmental rates?

Answers

Answer:

White Company

a. Predetermined overhead rates:

Departments                                                     Cutting          Finishing

Total fixed manufacturing overhead cost $390,000        $443,000

Usage                                                                  6,100              3,200

Fixed overhead cost per unit                            $6.61               $6.15

Variable overhead cost per unit                       $3.00              $4.75

Predetermined overhead rates                        $9.61             $10.90

b. Job 203:

Department

                                        Cutting      Finishing

Direct labor-hours                4                  19

Machine-hours                   80                   4

Materials requisitioned $770             $360

Direct labor cost              $36             $180

Total manufacturing cost assigned to Job 203:

                                              Cutting      Finishing

Materials requisitioned           $770             $360

Direct labor cost                       $36              $180

Manufacturing overhead       $769             $207

Total manufacturing costs  $1,575              $747

c. Yes.  The amounts of overhead cost assigned to some jobs would be substantially different.

Explanation:

a) Data and Calculations:

Departments                                                     Cutting          Finishing

Direct labor-hours                                              6,100             72,000

Machine-hours                                                59,000               3,200

Total fixed manufacturing overhead cost $390,000        $443,000

Variable manufacturing overhead per m/h     $3.00                  -

Variable manufacturing overhead per dlh          -                   $4.75

In the Investment marketplace, Investors will likely accept a high-risk investment only if it promises
Select the best answer from the choices provided.
А.
real returns
B.
nominal returns
C. high returns
D. low, constant returns

Answers

Answer: C. high returns

Explanation: Risk-return tradeoff is an investing theory which indicates that as higher the risk, the greater the return reward. In order to determine an acceptable risk-return tradeoff, investors need to weigh several aspects, including total risk exposure, the ability to substitute missing capital, and more.

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