Answer:
The accounting scandals of the early 2000sled many people to question the legitimacy of:
allowing an accounting firm to do both consulting and auditing work for the same company.
Explanation:
1) Enron and WorldCom fell from grace during the scandal. And Sarbanes Oxley Act of 2002 was introduced to regulate the practise of auditing, which was before self-regulated.
2) People felt that accounting firms were getting so much revenue from consulting that they did not pay much attention to their auditing work.
3) They also felt that the consulting relationship was jeopardizing their responsibilities and commitments as independent auditors.
4) Since they were involved in consulting and offering management services, they paid a lip service to their main responsibilities and directly compromised their positions as verifiers of the truth and fairness in the presentation of financial statements.
5) According to Paul Krugman of The New York Times, “the Enron debacle is not just the story of a company that failed; it is the story of a system that failed. And the system didn’t fail through carelessness or laziness; it was corrupted.” People felt that the corruption arose from the performance of these separate services by the same auditing personnel and firm.
Agricultural output is a large part of Econland's GDP. Particularly bad weather one year leads to an output that is smaller than normal, causing a shock to Econland's economy. Which of these correctly describes, from a Keynesian perspective, the impact of expansionary or contractionary monetary policy taken to address the situation?
A. Increase M1 to reduce inflation while having no impact on unemployment, or decrease M1 to reduce unemployment while having no impact on inflation.
B. Increase M1 to reduce both inflation and unemployment, or reduce M1 to increase both inflation and unemployment.
C. Increase M1 to reduce inflation while adding to unemployment, or decrease M1 to reduce unemployment while adding to inflation.
D. Increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
Answer: D. Increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
Explanation:
M1 is the money which consist of coins and physical currency, travelers checks, demand deposits, etc. M1 is the most liquid part of money supply due to the fact that it is made up of the currencies and the assets that can be changed to cash quickly.
From the question, we are told that agricultural output is a large part of Econland's GDP and that a bad weather resulted in a shock to Econland's economy. The best way to address the situation is to increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
When money supply is increased, there will be more money in circulation which will bring about increase in demand and employers will employ more people due to this. It should also be noted that due to more money in circulation, there will be inflation which means rise in the prices of goods and services.
Therefore, the government has to choose between increasing M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
Ibis Paper Company prepared the following static budget for November: Static budget Units/Volume 12,000 Per unit Sales revenue $21.00 $252,000 Variable costs 8.00 96,000 Contribution margin 156,000 Fixed costs 13,000 Operating income/(Loss) $143,000 If a flexible budget is prepared at a volume of 13,300 units, calculate the operating income at 13,300 units of production. The production level is within the relevant range.
Answer:
Net operating income= $159,900
Explanation:
Giving the following information:
Sales revenue= $21.00
Variable costs= $8.00
Fixed costs 13,000
For 13,300 units:
Sales= 21*13,300= 279,300
Total variable costs= 8*13,300= (106,400)
Total contribution margin= 172,900
Fixed costs= (13,000)
Net operating income= 159,900
Questions: (A) Explain how it has changed the legal profession (B) Identify a specific legal firm that you see exploiting this particular court ruling (C) Identify some regulatory changes in the area of Clean Environment and resulting opportunities for new venture creation (use specific examples/cases to explain your position)
Answer:
a) Many state bar connections have looked to make their advertising guidelines increasingly stiff, seemingly in the fact that the picture of the legal calling has been lasting of late. for instance attempts to clarify these changes endeavors by looking at whether bar affiliations are reacting to requests of individuals as revealed by mentalities as regards to advertising
(b)Now let us take the case of law firm Bates where U.S Preeminent Court choices are not having their anticipated impacts and that advertising by legal advisors is misleading and worsen, making an atmosphere ready for change.
Also, another alternative may be having their expected impacts of driving down costs and enabling youthful firms/lawyers to look for customers all the more adequately.
(c) Utilizing study information of little firm legal advisors amass in four states before the change development got a lot of contemplation, the proof advocates neither of these clarifications represents endeavors to make advertising progressively troublesome. the little firm legal counselors, those that indicate to profit by Bates and ensuing choices, have not changed their conduct in any assessed or measured way.
Explanation:
Solution
Many state bar affiliations have looked to make their advertising guidelines increasingly rigid, apparently in light of the fact that the picture of the legal calling has been enduring lately.
This example tries to clarify these changes endeavors by looking at whether bar affiliations are reacting to requests of individuals as exhibited by mentalities towards advertising, just as by their advertising practices.
For example let us take the case of law firm Bates where U.S Preeminent Court choices are not having their expected impacts and that advertising by legal advisors is misdirecting and compounding, making an atmosphere ready for change
Then again, the choices may be having their expected impacts of driving down costs and permitting youthful firms/lawyers to look for customers all the more adequately.
Utilizing study information of little firm legal advisors accumulated in four states before the change development got a lot of consideration, the proof recommends neither of these clarifications represents endeavors to make advertising progressively troublesome.
The little firm legal counselors, those suggested to profit by Bates and ensuing choices, have not changed their conduct in any calculable way.
Most advertising is in the business catalog and costs practically nothing, also mentalities toward advertising are not especially ideal.
The following is a list of characteristics that describe a firm operating under monopolistic competition. Indicate whether these characteristics occur in the short run, the long run, or both.
a. The firm produces a differentiated product.
b. The firm maximizes profits.
c. The firm earns zero economic profit.
d. All factors of production (inputs) are variable.
Answer:
a. Both
b. Both
c. Long Run
d. Long Run
Explanation:
a. Differentiating products ensures that a Company's products have an edge in the market that could gain them more customers and hence increase sales. The company therefore will differentiate in both the Short and the long run to ensure that they improve sales and Profitability.
b. The company will always seek to maximize profits regardless of whether it is in the short run or the long run. Maximising profit ensures that the company does not waste resources and remains viable and sustainable.
c. When a company is making Economic profit in the short run it attracts competitors such that in the long run, these competitors will drive down the profit that the firms in the market are making until no firm is making Economic profit.
d. In the long run, all factors of production are variable. This means that even though production capacity could not be changed in the short run, in the long run this is no longer the case. A well known example of this is Facility. In the short run, a company cannot build a new facility to bolster production but in the long run it will be able to.
Suppose the economy is in long-run equilibrium and there is an increase in investment. As a result, real GDP will ________ in the short run, and ________ in the long run. increase; decrease to its initial value decrease; decrease further increase; increase further decrease; increase to its initial level
Answer:
The correct answers are: increase and decrease to its initial value.
As a result, real GDP will increase in the short run, and decrease to its initial value in the long run.
Explanation:
To begin with, the GDP is a monetary measure of the market value of all the final goods that a economy produces in a certain amount of time. Moreover, that measure is influeced by many variables and one of them turns out to be the investment that the country in general does. Therefore that when the investment in the country increases or decreases the GDP will be affected and that is why that when the there is an increase in the investment the real GDP will suffer and increase as well too in the short run and it will eventually decrease to its initial values in the long run.
If the demand for a product is elastic, then a rise in price will a.cause total spending on the good to increase cause total spending on the good to decrease c. keep total spending the same, but reduce the quantity demanded. d. keep total spending the same, but increase the quantity demanded 14 The price elasticity of demand for a linear demand curve follows the pattern (moving from high prices to low prices) a. elastic, unit elastic, inelastic unit elastic, inelastic, elastic inelastic, unit elastic, elastic d. constant (i.e., the price elasticity does not ch
Answer:
cause total spending on the good to decrease
a. elastic, unit elastic, inelastic
Explanation:
Elastic demand means that quantity demanded is sensitive to price changes. a small change in price leads to greater change in the quantity demanded.
If demand is elastic and price rises, the Quanitity demanded would fall and total spending would decrease.
Please check the attached image for elasticity along a linear demand curve.
I hope my answer helps you
The benefits associated with a nuclear power plant cooling water filtration project located on the Ohio River are $10,000 per year forever starting in year 1. The costs are $50,000 in year 0 and $50,000 in year 2. What is the B/C ratio at i
Answer:
1.1
Explanation:
B/C ratio at i=10% per year?
Benefit= A/i%
Cost= initial cost- present worth
B/C= benefit/ cost
= [10,000/0.1]/[50,000 + 50000](p/f,10%,2)
= [100000/50000 + 50000(0.8264)]
= 1.1
The actual cost of direct materials is $ 12.50 per pound. The standard cost per pound is $ 9.00. During the current period, 9 comma 800 pounds of direct materials were used in production and 18 comma 500 pounds were purchased. The standard quantity of direct materials for actual units produced is 16 comma 400 pounds. How much is the direct materials quantity variance?
Answer:
$59,400 favorable
Explanation:
The computation of the direct material quantity variance is shown below;
As we know that
Direct material quantity variance is
= Standard Price × (Standard Quantity - Actual Quantity)
= $9 × (16,400 pounds - 9,800 pounds)
= $9 × 6,600 pounds
= $59,400 favorable
The favorable variance indicates that the standard quantity is more than the actual quantity and the same is to be considered
At the end of Year 2, retained earnings for the Baker Company was $3,050. Revenue earned by the company in Year 2 was $3,300, expenses paid during the period were $1,750, and dividends paid during the period were $1,150. Based on this information alone, what was the amount of retained earnings at the beginning of Year 2?
Answer:
$2,650
Explanation:
For computation of retained earnings at the beginning of Year 2 first we need to find out the net profit which is shown below:-
Net profit = Revenue - Expenses
= $3,300 - $1,750
= $1,550
Retained earnings at the ending of Year 2 = Beginning balance of retained earning + Net profit - Dividend paid
$3,050 = Beginning balance of retained earning + $1,550 - $1,150
Beginning balance of retained earning = $3,050 - $400
= $2,650
Strawberry Fields purchased a tractor at a cost of $40,000 and sold it two years later for $25,000. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $6,000 residual value.
1. What was the gain or loss on the sale?2. Record the sale using a general journal entry.
Answer:
1.Loss on sale 1,400
2.Dr Cash 25,000
Dr Accumulated Depreciation 13,600
Dr Loss on sale 1,400
Cr Equipment - Tractor 40,000
Explanation:
1.Calculation of the gain or loss on the sale of Strawberry Fields
Using this formula
Depreciation per year = (Cost - Salvage value)/Useful life
= (40,000-6,000)/5
=34,000/5
= 6,800 per year
The Book value after two years will be:
40,000 - (6,800*2)
=40,000-13,600
=26,400
Gain(Loss) = Cash received - Book value
= 25,000 - 26,400
Loss on sale 1,400
2.Record of the sale using a general journal entry
Dr Cash 25,000
Dr Accumulated Depreciation 13,600
Dr Loss on sale 1,400
Cr Equipment - Tractor 40,000
Ray presents information about the office supplies his company sells to a
business owner. The business owner seems interested, however, when Ray
ask her to commit to a purchase, she is hesitant and says her budget was
recently cut. Which of the following would be an effective way to handle the
customer's objections?
A. Provide a solution to this objection, such as offering a discount for
a year-long contract on office supplies.
B. Agree to check back with the business owner in six months to see
if her financial situation has changed.
C. Push the business owner to accept your offer, and don't back
down until you have a commitment.
D. Accept the that the business owner can't afford your office
supplies and move on to the next sale.
SUBMIT
The effective way to handle the customer's objections providing a solution to the objection.
Thus, the correct option is A.
What is a customer objection?Customer objections are the reservations a potential customer has that, at best, lead them to delay and, at worst, lead them to forego making an online purchase. People want to be certain they are buying a quality item.
Customer care refers to how well a business treats its clients and forges an emotional bond with them. Everyone on the team, not just a customer success manager or a customer service person, should be able to handle it.
Simply listening is the greatest way to do this. To understand the root of the client's distrust, pay attention to both what they say and what they choose to leave unsaid.
Learn more about customer objection, here
https://brainly.com/question/15832827
#SPJ5
The charter of Vista West Corporation specifies that it is authorized to issue 214,000 shares of common stock. Since the company was incorporated, it has sold a total of 146,000 shares (at $16 per share) to the public. It has bought back a total of 19,000. The par value of the stock is $5. When the stock was bought back from the public, the market price was $20.
Required:
1. Determine the authorized shares.
2. Determine the issued shares.
3. Determine the outstanding shares.
Answer:
Requirement 1: 214,000
Requirement 2: 146,000
Requirement 3: 127,00
Explanation:
Requirement 1:
Authorized shares: The maximum number of shares a company can issue are called authorized shares.They include both ordinary and preference shares. Here Visa West Corporation can issue 214,000 shares.
Requirement 2:
Issued shares: The number of shares the company has to issue to publicly
Here Visa West issued 146,000 shares to he public
Requirement 3:
Outstanding shares: The number of shares that need to be paid a dividend are Outstanding shares. Here Visa West Corporation has 127000(146000-19000) outstanding shares .
For each of the following situations involving annuitities solve for the unknown assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1).
Present Value Annuity Amount i = n =
3000 8% 5
242980 75000 4
161214 20000 9%
500000 80518 8
250000 10% 4
Answer:
A) $11,978.10
B) 9%
C) 15 years
D) 6%
E) $78,866.84
Explanation:
Present Value Annuity Amount i = n =
A 3000 8% 5
242980 75000 B 4
161214 20000 9% C
500000 80518 D 8
250000 E 10% 4
A = $3,000 x 3.9927 = $11,978.10
B: annuity factor = $242,980 / $75,000 = 3.23973
using the annuity table, a 9% annuity for 4 years has a factor = 3.2397
C: annuity factor = $161,214 / $20,000 = 8.0607
using the annuity table, a 9% annuity for 15 years has a factor = 8.0607
D: annuity factor = $500,000 / $80,518 = 6.20979
using the annuity table, a 6% annuity for 8 years has a factor = 6.2098
E: annuity payment = present value / annuity factor = $250,000 / 3.1699 (annuity factor 10%, 4 years) = $78,866.84
Jayne Butterfield, a single mother with three children, lived in Sacramento, California. Sarah Huckleberry also lived in California until she moved to New York City to open and operate an art gallery. Huckleberry asked Butterfield to manage the gallery under a one-year contract for an annual salary of $90,000. To begin work, Butterfield relocated to New York. As part of the move, Butterfield transferred custody of her children to her husband, who lived in London, England. In accepting the job, Butterfield also forfeited her husband's alimony and child-support payments, including unpaid amounts of nearly $45,000. Before Butterfield started work, Huckleberry repudiated the contract. Unable to find employment for more than an annual salary of $30,000, Butterfield moved to London to be near her children. She filed a suit in an California state court against Huckleberry, seeking damages for breach of contract. Should the court hold, as Huckleberry argued, that Butterfield did not take reasonable steps to mitigate her damages? Why or why not?
Answer:
No, the court should not hold in favor of Huckleberry.
Explanation:
The rule of mitigation that Huckleberry tries to use in her favor states that the non-breaching party (Butterfield) should have taken all the necessary steps to reduce her loss, e.g. take a job in New York. She probably argued that Butterfield leaving for England to meet with her children made things worse.
But in this case, Butterfield relied on Huckleberry's promise to organize her life and the well being of her children. Butterfield made a lot of changes and sacrifices in her life because of this, e.g. forfeiting unpaid alimony, transferring custody of her children , etc.
Moving to a different city or country requires a lot of work, expat life is not easy and not everyone can handle it. Butterfield took decisions that affected the lives of many people and she is not responsible for Huckleberry's breaching, the only party responsible for all this mess is Huckleberry and it is normal that Butterfield would want to go to where her children are.
Take the factors considered by earned value analysis and subtract those considered by tracking Gantt charts. The factor(s) you have remaining are:
a. Cost and schedule.
b. Performance.
c. Schedule and performance.
d. Cost.
Answer: cost
Explanation:
In earned value analysis also referred to as the gold triangle method, the cost, performance and time are considered. A tracking Gantt chart shows the stage of completion for every task. It allows individuals or project team make comparison between two sets of dates in order to track the progress of an acctivity against the original plan. Therefore, the tracking Gantt chart comsiders the performance and time.
Therefore cost is the only factor remaining
In early January 2019, Blue Corporation applied for a trade name, incurring legal costs of $15,400. In January 2020, Blue incurred $8,100 of legal fees in a successful defense of its trade name. Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years.
Answer:
2019 Amortization =$1,540
2019 Book Value=$13,860
2019 Amortization =$2,440
2019 Book Value=$19,520
Explanation:
Computation for 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years.
Calculation for 2019 Amortization (15,400 ÷ 10)
= 1,540
Calculation for Book Value of December 31, 2019
= 15,400 – 1,540
= 13,860
Calculation for 2020 Amortization will be:
(13,860 + legal fees 8,100) ÷ 9)
= 21,960÷9
= 2,440
Calculation for the Book Value of December 31, 2020
13,860 -2,440
=11,420
= 11,420+8,100
=$19,520
Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the lease will be $2,468. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 5%, the present value of the lease payments is closest to (Ignore income taxes.):
Answer:
$13,153.15
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash flow each year from year 0 to 5 = $2,468
I = 5%
PV = $13,153.15
To find the PV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $28 per share. Later in the year, the company decides to Purchase 100 shares at a cost of $31 per share. Record the transaction if California Surf resells the 100 shares of treasury stock at $33 per share.
Answer:
Dr Cash $3,300
Cr Treasury share $3,100
Cr Paid in capital Treasury stock $200
Explanation:
When the shares of a company is issued and bought back, it is called Treasury stock, and can be re-issued or cancelled by the company.
At the time of the purchase
Treasury shares = 100 × $31
= $3,100
Dr Treasury stock $3,100
Cr Cash $3,100
At the time of resale
It is to be noted that the difference in the issuance of Treasury stock is to be transferred to the Paid in capital Treasury stock account.
Proceeds = 100 × $33
= $3,300
Paid in capital Treasury stock.
= $3,300 - $3,100
= $200
Grand Garden is a luxury hotel with 165 suites. Its regular suite rate is $210 per night per suite. The hotel’s cost per night is $135 per suite and consists of the following.
Variable direct labor and materials cost $ 36
Fixed cost [($5,970,000/165 suites) ÷ 365 days] 99
Total cost per night per suite $ 135
The hotel manager received an offer to hold the local Bikers’ Club annual meeting at the hotel in March, which is the hotel’s low season with an occupancy rate of under 55%. The Bikers’ Club would reserve 45 suites for three nights if the hotel could offer a 55% discount, or a rate of $94 per night. The hotel manager is inclined to reject the offer because the cost per suite per night is $135.
Required:
Prepare an analysis of this offer for the hotel manager.
Answer:
rental price per night $210
variable direct labor and materials $36
fixed costs $5,970,000
assuming 100% occupancy rate during the whole year, fixed cost per unit = $99 per night
total cost per night $135
assuming a 55% occupancy rate = 90.75 rooms per night
fixed costs are equal in both scenarios, so they are not relevant
alternative A alternative B differential
not rent rent to bikers amount
rental revenue $19,057.50 $23,310 ($4,252.50)
per day
variable costs -$3,267 -$4,887 $1,620
total per night $15,790.50 $18,423 ($2,632.50)
x 3 nights $47,371.50 $55,269 ($7,897.50)
By not renting the rooms to the Biker Club, the hotel will be losing $7,897.50 during the 3 nights.
The allocation of fixed costs per night assumes that all the hotel rooms are being rented every night and that is not true, so the total cost per night is not a valid amount. They should allocate fixed costs based on the average occupancy rates per month.
Applying the Cost of Goods Sold Model The following amounts were obtained from the accounting records of Enderle Company: 2019 2020 2021 Beginning inventory $38,900 (b) (d) Net purchases (a) $71,200 $91,820 Ending inventory 42,100 (c) 42,350 Cost of goods sold 83,500 90,800 (e) Required: Compute the missing amounts.
Answer:
Find below a properly aligned details of the question:
The following amounts were obtained from the accounting records of Enderle Company:
2016 2017 2018
Beginning inventory $38,900 (b (d)
Net purchases (a) $71,200 $91,820
Ending inventory 42,100 (c) 42,350
Cost of goods sold 83,500 90,800 (e)
Find all the answers and computations below
Explanation:
In the year 2016, net purchases can be computed using the cost of sales formula below:
cost of sales=beginning inventory+purchases-ending inventory
purchases=cost of sales+ending inventory-beginning inventory
purchases=$83,500+$42,100-$38,900=$ 86,700.00
Ending inventory in 2016=beginning inventory in 2017=$42,100
Ending inventory in 2017=beginning inventory+purchases-cost of sales
Ending inventory in 2017=$42,100+$72,100-$90,800=$ 23,400.00
ending inventory in 2017=beginning inventory in 2018=$23,400.00
cost of sales in 2018=beginning inventory+purchases-ending inventory
cost of sales in 2018=$23,400+$91,820 -$42,350 =$72,870
Calculate Payroll An employee earns $25 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 48 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $239.15. a. Determine the gross pay for the week. $ b. Determine the net pay for the week. Round to two decimal places. $
Answer:
A) 1,400
B) 1,055.85
Explanation:
An employee earns $25 per hour at 2 times the rate for all hours in excess of 40 hours per week
The employee works for 48 hours in that week
Social security tax rate is 6.0%
Medicare tax rate is 1.5%
Federal income tax= $239.15
(a) Gross pay= Regular pay+overtime
The regular pay can be calculated by multiplying the amount earned by the number of hours spent in the week
Regular pay= 40×25
= 1,000
The overtime can be calculated by multiplying the extra hours spent (48 hours-40 hours= 8 hours) by the amount earned and the rate
Overtime = 8× 25× 2
= 400
Gross pay= 1,000+400
= 1,400
(B) Net pay= Gross pay-Federal taxes withheld-Taxes payable
= 1,400-239.15-(6.0% of 1400-1.5% of 1,400)
= 1,400-239.15-84-21
= 1,055.85
Hence the gross pay is 1,400 and the net pay is 1,055.85
D. Midway through the project your design and production people realize that a 75 percent improvement curve is more appropriate. What cost savings do you expect (neglect profit)
Answer:
Hello your question is in complete here is the complete question
NSDC has a contract to produce 7 satellites to support a worldwide telephone system (for Alaska Telecom, Inc.) that allows individuals to use a single, portable telephone in any location on earth to call in and out. NSDC will develop and produce the 7 units. NSDC has estimated that the R&D costs will be NOK (Norwegian Krone) 12,000,000. Material costs are expected to be NOK 7,000,000. They have estimated the design and production of the first satellite will require 100,000 labor hours and a(n) 75 percent improvement curve is expected. Skilled labor cost is NOK 300 per hour. Desired profit for all projects is 20 percent of total costs.
answer: 42022.34
Explanation:
On the new discovery using the formula
T(N) = T( N^log(L)/log(2) ) to calculate labor hours
T = 100000 , N = 1 then labor hours = 100000
T = 100000 , N = 2 then labor hours = 70000
T = 100000, N = 3 then labor hours = 56818.03
T = 100000, N = 4 then labor hours = 49000
T = 100000, N = 5 then labor hours = 43684.64
T = 100000, N = 6 then labor hours = 39772.62
T = 100000, N = 7 then labor hours = 36739.67
Total of labor hours = 396014.97
Therefore the cost savings to except = 438037.3031 - 396014.97 = 42022.34
Flagstaff, Inc. uses standard costing for its one product, baseball bats. The standards call for 3 board-feet of wood at $1.40 per board-foot, and 45 minutes of work at $12 per hour per bat. Total manufacturing overhead costs were estimated at $9,450, of which the variable portion was $0.50 per bat and the fixed portion was $1.00 per bat with an estimate of 6,300 bats to be produced. Flagstaff identifies price variances at the earliest possible point in time.During March, the company had the following results:Direct labor used = 4,800 hours at a cost of $56,400Actual manufacturing overhead fixed costs = $6,000Actual manufacturing overhead variable costs = $3,100Bats produced = 6,000InstructionsCompute the following variances for March.1. Labor quantity variance2. Total labor variancea3. Overhead controllable variancea4. Overhead volume variance2. Riggins, Inc. manufactures one product called tybos. The company uses a standard cost system and sells each tybo for $8. At the start of monthly production, Riggins estimated 9,500 tybos would be produced in March. Riggins has established the following material and labor standards to produce one tybo:Standard Quantity Standard PriceDirect materials 2.5 pounds $3 per poundDirect labor 0.6 hours $10 per hourDuring March 2013, the following activity was recorded by the company relating to the production of tybos:
1. The company produced 9,000 units during the month.
2. A total of 24,000 pounds of materials were purchased at a cost of $66,000.
3. A total of 24,000 pounds of materials were used in production.
4. 5,000 hours of labor were incurred during the month at a total wage cost of $55,000.Instructions
Calculate the following variances for March for Riggins, Inc.
(a) Materials price variance
(b) Materials quantity variance
(c) Labor price variance
(d) Labor quantity variance
Answer:
1a. Labour quantity variance =$3,600 Unfavorable
1b.Total labor variance= $2,400 Unfavorable
1c.Overhead controllable variance= $200 Favorable
1d.Overhead volume variance= $299 Unfavorable
2a.Material price variance $6,000 favorable
2b.Materials quality variance =$4,500 unfavorable
2c.Labor price variance $5,000 unfavorable
2d.Labor quantity variance= $4,000 favorable
Step by Step Explanation:
1.Flagstaff, Inc
a. Calculation for Labor quantity variance
Using this formula
Labor quantity variance = (Actual hours × Standard rate) – (Standard hours × Standard rate)
Let plug in the formula
Labor quantity variance= (4,800 × $12) – [(3/4 × 6,000) × $12]
Labour quantity variance= ($57,600-$54,000)
Labour quantity variance =$3,600 Unfavorable
b.Calculation for Total labor variance
Using this formula
Total Labor variance= (Actual hours × Actual rate) – (Standard hours × Standard rate)
Let plug in the formula
Total labor variance= (4,800 × $11.75) – [(3/4 × 6,000) × $12]
Total labor variance=$56,400-$54,000
Total labor variance= $2,400 Unfavorable
c. Calculation for Overhead controllable variance
Using this formula
Overhead controllable variance= Actual overhead – Overhead budgeted
Let plug in the formula
Overhead controllable variance= ($3,100 + $6,000) – [($0.50 × 6,000) + $6,300]
Overhead controllable variance=$9,100-($3,000+$6,300)
Overhead controllable variance =$9,100-$9,300
Overhead controllable variance= $200 Favorable
d. Calculation for Overhead volume variance
Using this formula
Overhead volume variance= (Normal hours – Standard hours) × Fixed overhead rate
Let plug in the formula
Overhead volume variance= [(6,300 × 3/4) – 4,500] × $1.33
Overhead volume variance =($4,725-$4,500)×$1.33
Overhead volume variance =$225×1.33
Overhead volume variance= $299 Unfavorable
2.Riggins, Inc.
a. Calculation for Materials price variance
Using this formula
Materials price variance= (Actual quantity purchased × Actual price) – (Actual quantity purchased × Standard price)
Let plug in the formula
Material price variance= (24,000 × $2.75) – (24,000 × $3)
Material price variance= $66,000-$72,000
Material price variance $6,000 favorable
b.Calaculation for Materials quantity variance
Using this formula
Materials quality variance= (Actual quantity used × Standard price) – (Standard quantity × Standard price)
Let plug in the formula
Materials quality variance= (24,000 × $3) – [(9,000 × 2.5) × $3]
Materials quality variance=$72,000-$67,500
Materials quality variance =$4,500 unfavorable
c.Calculation for Labor price variance
Using this formula
Labor price variance= (Actual hours x Actual rate) – (Actual hours × Standard rate)
Let plug in the formula
Labor price variance= (5,000 × $11) – (5,000 × $10)
Labor price variance=$55,000-$50,000
Labor price variance $5,000 unfavorable
d. Calculation for Labor quantity variance
Using this formula
Labor quantity variance= (Actual hours × Standard rate) – (Standard hours × Standard rate)
Let plug in the formula
Labor quantity variance= (5,000 × $10) – [(0.6 × 9,000) × $10]
Labor quantity variance=$50,000-$54,000
Labor quantity variance= $4,000 favorable
If the marginal cost of producing the fifth unit of output is higher than the marginal cost of producing the fourth unit of output, then at five units of output, average total cost must be rising.
a. True
b. False
Answer: a. True
Explanation:
Marginal Cost as well known is the cost of producing an extra unit of a good. Average Cost on the other hand is the cost of producing all the goods divided by the number of units that are produced.
It therefore stands to reason that if goods are getting more expensive to produce, the Average Cost will rise.
For example, take 2 scenarios.
Scenario 1.
Cost of producing units 1 to 5 is $2 each.
Average Cost = (2 + 2 + 2 + 2 + 2) / 5
= 10/5
Average Cost = $2
Scenario 2
Cost of Producing Units 1 to 5 are;
Unit 1 - $2
Unit 2 - $2
Unit 3 - $2
Unit 4 - $2
Unit 5 - $4
Average cost at unit 5 = (2 + 2 + 2 + 2 + 4)/5
= 12/5
= $2.40
Average Cost has increased by $0.40
The Anson Jackson Court Company (AJC) currently has $200,000 market value (and book value) of perpetual debt outstanding carrying a coupon rate of 6%. Its earnings before interest and taxes (EBIT) are $100,000, and it is a zero growth company. AJC's current cost of equity is 8.8%, and its tax rate is 40%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $60.00. Refer to the data for the Anson Jackson Court Company (AJC). Now assume that AJC is considering changing from its original capital structure to a new capital structure with 50% debt and 50% equity. If it makes this change, its resulting market value would be $820,000. What would be its new stock price per share?
a. $58
b. $60
c. $59
d. $61
e. $62
Answer:
e. $62
Explanation:
EBIT = $100,000
interests = $12,000
tax rate 40%
net income = ($100,000 - $12,000) x 60% = $52,800
value of shareholders' equity = $52,800 / 8.8% = $600,000
stock price $600,000 / 10,000 = $60
issue $200,000 to buy back 3,334 stocks, total debt $400,000)
total market value = $820,000
value of stockholders' equity = $820,000 /2 = $410,000
stock price = $410,000 / 6,666 stocks = $62
Jake, a pharmaceutical sales representative, often takes lunch to doctors' offices. Over lunch with the doctors and their staffs, he reviews his company's products. Jake does not try to close a sale during these lunches. What type of personal selling does this describe
Answer:
The correct answer is: order-creaters.
Explanation:
To begin with, the area of personal selling there are three types of different approaches regarding the sales person and his proper way of selling. According to this theory, one of those types is the one named "order-creaters" and that concept comprehends the type of sellers that primarily focos on not to close the sale, but to persuade the regular customer to promote the product to other clients from the same audience. Therefore that Jake, when goes to have launch in the same place as the doctors, even though he does not want to make a sale, he is looking forward to establish a relationship that later favoured him in promoting the product.
A corporate charter specifies that the company may sell up to 32 million shares of stock. The company issues 24 million shares to investors and later repurchases 9.0 million shares. The number of issued shares after these transactions have been accounted for is:
Answer: 15 million shares
Explanation:
From the question, we are given the information that a corporate charter specifies that the company may sell up to 32 million shares of stock and the company issues 24 million shares to investors and later repurchases 9 million shares.
The number of issued shares after these transactions have been accounted for will be the difference between the shares that were issued and the shares that were bought back. This will be:
= 24 million shares - 9 million shares
= 15 million shares
On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $15,300. What is the adjusting entry for the accrued interest at December 31 on the note
Answer:
DebitbAccrued Interest on Note receivable -$311.1
Credit Interest Income -$311.1
Explanation:
Preparation of the adjusting entry for the accrued interest at December 31 on the note for Alan Company
The Interest earned till 31 December will be :
(30+31 days)=61 days
=(15,300×12%×61days)÷360 days
=$111,996÷360 days
=$311.1
The Adjusting Entry for Alan Company will therefore be:
Debit Accrued Interest on Note receivable -$311.1
Credit Interest Income -$311.1
The adjusting entry for the accrued interest on December 31 on the note
Debit - Accrued Interest on Note receivable -$311.1
Credit - Interest Income -$311.1
An adjusting entry is an accounting entry made at the conclusion of an accounting period to update the accounts and put them in line with the accrual accounting method.
It is required because some transactions or occurrences may have been missed or recorded incorrectly throughout the period.
The Interest earned till 31 December will be :
(30+31 days)=61 days
=(15,300×12%×61days)÷360 days
=$111,996÷360 days
=$311.1
Learn more about adjusting entries, here:
https://brainly.com/question/28902824
#SPJ6
The duration of copyright protection for works not made for hire is: Select one: a. 20 years from the date of filing. b. Generally perpetually as long as the works are in print. c. One year if no registration has been f
Answer:
Life of the author plus 70 years
Explanation:
Copyright can be defined as the legal ways of protecting an author's work. It is a type of intellectual property right that protect authors from unauthorized individuals from publishing their work.
It is the right to copy given by an author to anyone to copy their work. Content that can be protected by copyright includes; books, poems, plays, songs, films, and artwork and website.
At the beginning of the period, the Cutting Department budgeted direct labor of $136,000, direct materials of $150,000 and fixed factory overhead of $11,900 for 8,000 hours of production. The department actually completed 10,600 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations.
Answer:
Total cost under flexible budgeting is $390,850
Explanation:
Calculation of Standard direct labor Cost
Standard Direct labor Cost=Budgeted Labor cost/Budgeted hour of Production
=$136,000 / 8,000
=$17 per hour
Calculation of Standard material Cost
Standard material Cost = Budgeted material Cost /Budgeted hour of Production
=$150,000 / 8,000
=$18.75 per hour
Calculation of Total cost under flexible budgeting
Direct Material Cost = 10,600 * $18.75 = $198,750
Direct Labour Cost= 10,600 * 17 = $180,200
Fixed factory overhead= $11,900
Total budgeted cost $390,850