Answer:
$774 unfavorable
Explanation:
The computation of the direct material quantity variance is shown below:
= Standard Price × (Standard Quantity - Actual Quantity)
= $8.60 × (1,910 kilograms - 2,000 kilograms)
= $8.60 × 90 kilograms
= $774 unfavorable
Since it is unfavorable as it derives that actual quantity is more than the standard quantity and in the case of favorable, the actual quantity is less than the standard quantity
Market size and growth rates in different countries can be influenced positively or negatively by A. population sizes, income levels and cultural influences, the current state of the infrastructure, and distribution and retail networks available B. the ability of management to tailor a strategy to take into consideration country differences C. the large size of emerging markets such as China and India D. competitive rivalry that is only moderate in some countries E. All of these choices are correct
Answer:
A. population sizes, income levels and cultural influences, the current state of the infrastructure, and distribution and retail networks available
Explanation:
For market to grow and develop, there are many basic elements that are required to influence this growth, either positively or negatively. Some of these factors are:
i) Size of population
ii) Current level and state of infrastructural facilities
iii) Level of availability of retail and distribution networks
iv) Level of income of the general population in the particular country
v) Cultural influence
vi) Religious influence, etc
From the explanation above, we can see that option A is correct.
Market size and growth rates in different countries can be influenced positively or negatively by population sizes, income levels and cultural influences, the current state of the infrastructure, and distribution and retail networks available.
Giantco is a large oil company that operates throughout the United States. With respect to the states that Giantco does business in, the UCC has been adopted by, and applies in:_________
a. all of the states, in whole or in part.b. only the states on the Atlantic and Pacific coasts.c. none of the states, to date.d. only the lower forty-eight states—not Alaska or Hawaii.
Answer:
a. all of the states, in whole or in part.
Explanation:
In this scenario, Giantco is a large oil company that operates throughout the United States of America. With respect to the states that Giantco does business in, the Uniform Commercial Code (UCC) has been adopted by, and applies in all of the states, in whole or in part because the U.C.C applies only to the extent that it has been adopted by a state.
The Uniform Commercial Code (UCC) is a set of comprehensive, codified, and modernized business laws that regulate commercial transactions and financial contracts across different state in the United States of America.
The U.C.C isn't a federal law, but a uniformly adopted state law with the sole aim and purpose to create uniformity of law across multiple court jurisdictions in the United States of America. It is called the backbone of American commerce because it has been adopted by all 50 states, in whole or in large part and thus, enhancing commercial transactions or business to thrive significantly.
The units of an item available for sale during the year were as follows: Jan. 1 Inventory 9 units at $47 $423 Aug. 13 Purchase 19 units at $50 950 Nov. 30 Purchase 13 units at $51 663 Available for sale 41 units $2,036 There are 16 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) $ b. Last-in, first-out (LIFO) $ c. Weighted average cost
Answer:
a. First-in, first-out (FIFO) $813
b. Last-in, first-out (LIFO) $773
c. Weighted average cost $795
Explanation:
Date transaction units unit cost total cost
Jan. 1 Inventory 9 units at $47 $423
Aug. 13 Purchase 19 units at $50 $950
Nov. 30 Purchase 13 units at $51 $663
Available for sale 41 units $2,036
Ending inventory 16 units
a. First-in, first-out (FIFO) $
ending inventory = (13 x $51) + (3 x $50) = $813
COGS and ending inventory are calculated based on the oldest units purchased
b. Last-in, first-out (LIFO) $
ending inventory = (9 x $47) + (7 x $50) = $773
COGS and ending inventory are calculated based on the last units purchased
c. Weighted average cost
ending inventory = ($2,036 / 41) x 16 = $795
COGS and ending inventory are calculated using an average
In March 2015, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $2,000 in March 2040, but investors would receive nothing until then. Investors paid DMF $740 for each of these securities; so they gave up $740 in March 2015, for the promise of a $2,000 payment 25 years later.
Required:
a. Assuming you purchased the bond for $740, what rate of return would you earn if you held the bond for 25 years until it matured with a value $2,000?
b. Suppose under the terms of the bond you could redeem the bond in 2023. DMF agreed to pay an annual interest rate of 1.4 percent until that date. How much would the bond be worth at that time?
c. In 2023, instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in 2040. What annual rate of return will you earn over the last 17 years?
Answer:
a. 4.06%
b. $827.06
c. 5.33%
Explanation:
a. Assuming you purchased the bond for $740, what rate of return would you earn if you held the bond for 25 years until it matured with a value $2,000?
Rate of return = [(Promised payment / Bond purchase price)^(1 / 25)] - 1 = [(2,000 / 740)^(1/25)] - 1 = 1.0406 = 0.0406 = 4.06%
Therefore, the rate of return that you would earn is 4.06%.
b. Suppose under the terms of the bond you could redeem the bond in 2023. DMF agreed to pay an annual interest rate of 1.4 percent until that date. How much would the bond be worth at that time?
Since 2015 to 2023 is 8 years, the worth of the bond after 8 years at 1.4 percent can be computed as follows:
Worth after 8 years = Bond purchase price * (1 + r)^n
Where;
r = annual interest rate = 1.40%, or 0.014
n = number years after = 8
Therefore, we have:
Worth after 8 years = 740 * (1 + 0.014)^8 = $827.06
c. In 2023, instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in 2040. What annual rate of return will you earn over the last 17 years?
Return in last 17 years = [(Bond purchase price / Worth after 8 years)^(1/17)] - 1 = [(2,000 / 827.06)^(1/17)] - 1 = 1.0533 - 1 = 0.0533 = 5.33%
On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $294,000. The machine is expected to last five years and have a salvage value of $47,000. Compute depreciation expense for both years ending December 2016 and 2017 assuming the company uses the straight-line method.
Answer:
2016:
Annual depreciation= $37,050
2017:
Annual depreciation= $49,400
Explanation:
Giving the following information:
April 1st= $294,000.
Useful life= 5 years
Salvage value= $47,000.
First, we need to calculate the annual depreciation expense. Under the straight-line method, depreciation remains constant during the life of the asset. We will use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (294,000 - 47,000)/5= $49,400
2016:
Annual depreciation= (49,400/12)*9= $37,050
2017:
Annual depreciation= $49,400
Dave Fletcher was able to determine the activity times for constructing his laser scanning machine. Fletcher would like to determine ES, EF, LS, LF, and slack for each activity. The total project completion time and the critical path should also be determined. Here are the activity times: Activity Time (weeks) Immediate Predecessor(s) Activity Time (weeks) Immediate Predecessor(s) A 5 minus E 4 B B 6 minus F 5 B C 4 A G 11 C, E D 2 A H 6 D , F
Answer:
Project completion time: 21 weeksCritical Path: B - E - GES, EF, LS, LF are shown belowExplanation:
The earliest start is the latest of the earliest finish times of the predecessors. The earliest finish is the sum of earliest start and duration.
The latest finish is the earliest of the latest start times of the successors. The latest start is the difference of latest finish and duration.
The slack is the difference between earliest start (or finish) and latest start (or finish).
Project duration is the earliest start of the "Project Done" task. For purposes of computing slack, this (project duration) is taken to be the latest finish of the immediate predecessors.
The critical path is the sequence of tasks with 0 slack.
The amount of minutes you were active during the day is referred to as activity.
It's essentially the total amount of time you spent exercising in a 24-h cycle, and it may be anything from a gym aerobic or prenatal yoga class to brisk strolling.
Time to complete the project: 21 weeks
Below are the Critical Paths: B - E - G ES, EF, LS, LF.
The calculation has been attached below.
The earliest start is the latest of the predecessors' earliest finish times. The combination of the oldest start and endurance represents the earliest conclusion.
The latest finish is the earliest of the successors' latest start timings. The deviation between the newest finish and the length is the latest start.
The slack is the time between the earliest start (or finish) and the latest start (or complete) (or finish).
The beginning of the "Program Complete" task is termed the construction length. This (project duration) is regarded to be the most recent finish of the predecessors for the sake of computing slack. This (project duration) is regarded to be the most recent finish of the predecessors for the sake of computing slack.
The critical route is a set of jobs with no slack in between them.
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Linea, an employee of Hard Labor Industries (HLI), is injured in a work-related accident. Based on the diagnosis of Newt, a doctor, Linea accepts $50,000 from HLI and waives the right to future claims. Newt's diagnosis later proves to have been wrong. In terms of the impact on Linea's agreement with HLI, Newt's mis-diagnosis is:_______.
a. obtain damages from HLI.
b. recover nothing.
c. set aside the settlement withHLI.
Answer: set aside the settlement withHLI.
Explanation:
From the question, Linea, who is an employee of Hard Labor Industries (HLI), is injured in a work-related accident and based on the diagnosis of Newt, who is a doctor, Linea accepts $50,000 from HLI and waives the right to future claims.
We are also informed that Newt's diagnosis later proves to have been wrong. In terms of the impact on Linea's agreement with HLI, Newt's mis-diagnosis is to set aside the settlement with HLI.
This will be necessary to make them understand that it was a mistake and make a settlement with Hard Labor Industries so that Linea won't be affected as they make think she has it planned in order to collect money from them so the hospital should make a settlement.
On May 10, a company issued for cash 1,100 shares of no-par common stock (with a stated value of $2) at $15, and on May 15, it issued for cash 5,000 shares of $15 par preferred stock at $59. Journalize the entries for May 10 and 15, assuming that the common stock is to be credited with the stated value. If an amount box does not require an entry, leave it blank. May 10 May 15
Answer:n Please see explanation column
Explanation:
To record issue of common stock
Date Account Debit Credit
May 10 Cash $16,500
Common stock $2,220
Additional paid in excess of par common stock $14,430
to record issue of preferred stock
May 15 Cash $295,000
Preferred stock $75,000
Additional paid in excess of par preferred stock $220,000
Calculation.
Cash received = no of shares issued x issue per share
=1100 x $15= $16,500
Common stock = Number of share issue x stated value per share = 1,110 x $2 =$2,220
Additional paid in capital= Number of shares issue x ( issue per share - stated value per share )= 1,110 x ($15-$2)= 1,110 x $13 = $14,430
Cash = no of shares of preferred stock x issue per share
= 5000 x $59= $295,000
par value at preferred stock n = Number of share preferred issue x stated value per share n= 5000 x 15 =$75,000
Additional paid in capital= Number of sharesof preferred stock issue x ( issue per share - stated value per share )= 5,000 x ($59-$15)= 5,000 x $44 = $220,000
Item 6Item 6 Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500. What is the marginal cost
Answer:
$1.07
Explanation:
The marginal cost measures the change in total cost of adding on more worker divided by the change in product for this additional worker (marginal product of labor). When adding one more worker, costs will increase by $80 (wage rate), while product will increase by 75. Therefore, the marginal cost is:
[tex]MC=\frac{80}{75}\\MC=\$1.07[/tex]
The marginal cost is $1.07.
g n a certain economy, when income is $100, consumer spending is $60. The value of the multiplier for this economy is 4. It follows that, when income is $101, consumer spending is a. $60.25. b. $60.75. c. $61.33. d. $64.00.
Answer:
The answer is option (b) $60.75
Explanation:
Solution
Given that
A certain economy, Income is =$100
Consumer spending is =$60
The value of multiplier is =4
Now we need to know when the income is $101, consumer spending, the customer spending will be what?
Now,
Multiplier (k)= 1/1-MPC (marginal propensity to consume)
4=1/1-MPC
Thus
MPC= 1-1/4
MPC=3/4
MPC=.75
So,
MPC= Change in consumption/change in income.
.75=Change in C/101-100
Change in C=.75*1
Change in C=.75
Hence
The new consumption =60+.75=60.75
Therefore, when the income is $101, the consumer spending is $60.75
Based on the income and the amount of money spent from it, the consumer spending at that amount will be b. $60.75
The question can be answered with the Marginal Propensity to Consume (MPC) which is calculated as:
Multiplier = 1 / (1 - MPC)
4 = 1 / (1 - MPC)
MPC = 0.75
If the income is $101, the amount that will be spent is:
= Income + (Increase in income x Marginal Propensity to Consume)
= 100 + (1 x 0.75)
= $60.75
In conclusion, $60.75 will be the consumer spending.
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Hazel's receipts for the year are as follows: Gain on sale of Augusta County bonds $800 Interest on U.S. government savings bonds 400 Interest on state income tax refund 200 Interest on Augusta County bonds 700 a. Classify the following items as "Included" or "Excluded" in Hazel's gross income. Included in/Excluded from Gross Income Gain on sale of Augusta County bonds Interest on U.S. government savings bonds Interest on state income tax refund Interest on Augusta County bonds b. Hazel's gross income is $ .
Answer:
A.Gain on sale of Augusta County bonds $800
INCLUDED
Interest on U.S. government savings bonds 400
INCLUDED
Interest on state income tax refund 200
INCLUDED
Interest on Augusta County bonds 700
EXCLUDED
B.$1,400
Explanation:
A.
Gain on sale of Augusta County bonds $800
INCLUDED
Interest on U.S. government savings bonds 400
INCLUDED
Interest on state income tax refund 200
INCLUDED
Interest on Augusta County bonds 700
EXCLUDED
B. Hazel's gross income is $1,400
Gain on sale of Augusta County bonds $800
Interest on U.S. government savings bonds 400
Interest on state income tax refund 200
Total =$1,400
After your project team has completed the task to develop potential ideas to increase productivity, as the project team leader, what would be your FIRST step (message-sending process) when presenting your ideas for approval and further guidance.
Answer:
b) Develop Rapport
Explanation:
As the project team leader, the first step in submitting your ideas for approval and additional guidance is to develop a rapport. Through rapport it is possible to establish meaningful connections and bonds with people and create a relationship of trust, which can generate increased focus and mutual attention to what the person wants to share, positivity that increases integration and a friendly relationship between a group, coordination, which increases the level of synchrony and greater understanding of a message, etc.
This is an effective tool to build trust, influence, learning and teaching, which is characterized by significant advantages when the objective is to positively influence people for greater acceptance of their ideas, positions and information sharing.
Raphael and Susan Firth live in Swarthmore, PA. Their son, Alex, owns his own plumbing business.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.
a. Susan gets a new video camera made in the United States.
b. Alex buys a new set of tools to use in his plumbing business.
c. Raphael buys a sweater made in Guatemala.
d. Raphael's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China.
e. The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Raphael and Susan's house.
Answer:
a. Consumption (C).
b. Investment (I).
c. Imports (M) and consumption (C).
d. Exports (X).
e. Investment (I) and government purchases (G).
Explanation:
a. Susan gets a new video camera made in the United States: this is a consumption (C).
b. Alex buys a new set of tools to use in his plumbing business: this is an investment (I).
c. Raphael buys a sweater made in Guatemala: this is both an import (M) and consumption (C).
d. Raphael's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China: this is an export (X).
e. The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Raphael and Susan's house: this both an investment (I) and government purchases (G).
The Gross Domestic Products (GDP) is the measure of the total market value of all finished goods and services made within a country during a specific period.
Ultimately, this implies that Gross Domestic Products (GDP) is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
Hence, GDP is the summation of the consumption (C), investment (I), net exports (N) [exports (x) - imports (M)] and government purchases (G).
Mathematically, GDP is given by the equation; [tex]GDP = C + I + N + G[/tex]
Where, consumption (C) is the personal spending by households on various goods and services for their own pleasure.
Investment is the spending by business owners on equipments and other inventories to enhance productivity.
Government purchases is the expenditures made by state, local and federal government on goods and services for the general public.
Net exports (N) is the subtraction of imports (M) from exports (X) in a country at a particular period of time.
During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $205,171.00 instead of the correct amount of $174,118.00. What would be the effect on the balance sheet and income statement
Answer:
Correct amount of the inventory = $174,118
Inventory incorrectly recorded = $205,171
The inventory was overstated by = 205,171 - 174,118
=$31,053
As a result of the overstated ending inventory, the net income would be overstated by $31,053 as well.
As a result of the overstated net income, the retained earnings would be overstated by $31,053 as well.
Ending inventory is a part of Assets, thus due to overstated ending inventory, assets would also be overstated by $31,053.
If Decker had a financing deficit, it could remedy the situation by a. paying down its long-term debt b. paying a special dividend c. borrowing on its line of credit d. borrowing from retained earnings e. buying back common stock
Answer:
c. borrowing on its line of credit.
Explanation:
Line of credit denoted as LOC is a form of borrowing which is known to be a flexible form of taking loans. In this borrowing platform, one can borrow a certain amount of money and still borrow more even without paying the initial dept, this primarily makes it flexible. In giving this loans their a certain factors that aid qualify one in getting access to this loan, and this includes the individual credit score and good usage of his/her online purchasing medium without faulting or breaking codes of conducts.
Williamson Industries has $6 billion in sales and $1.1 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity. What level of sales could Williamson Industries have obtained if it had been operating at full capacity
Answer:
$6,666,666.67
Explanation:
The computation of the level of sales operating at full capacity is as follows
= Sales ÷ Operating capacity percentage
where,
Sales is $6,000,000
And, the operating capacity percentage is 90%
Now placing these values to the above formula
So, the level of sales operating at full capacity is
= $6,000,000 ÷ 90%
= $6,666,666.67
Hence, the level of sales is $6,666,666.67
You Just won a prize that will pay you $800 today and $500 a year for the next three years. Which is the correct formula for computing the present value as of today at 6 percent?
PV = $500/1.06 + $500/1.062+ $500/1.063
PV = $800 PV $800/1.06$500/1.06+$500/1.06 $500/1.06
PV =$800+ $500/1.06 $500/1.06+ $500/1.061
PV = $800(1.06)+ $500 +$500/1.06 $500/1.06
Answer:
The correct answer is PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3
Explanation:
Solution
Given that:
A price was wan by you today at =$800
For the next three years =$500 a year
Now
We compute for the present value of today at 6%
Thus
Present value (PV) = $800 + $500/1.06 + $500/1.062 + $500/1.063
Because $800 is receivable today, its present value is equal to $800,
So,
500 receivable after a year will be divided by 1.06
PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3
Therefore the right formula for computing the present value as of today at 6 percent is PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3
Sometimes, customers can tell if they received good service. For example, vacations, haircuts, and restaurants all have ________ attributes that allow customers to decide whether they will repeat the purchase another time.
Answer:
experiential
Explanation:
All of these have experiential attributes that allow customers to decide whether they will repeat the purchase another time. Experiential attributes are those that are based on experience and observation. The customer is able to judge different aspects of their purchase and experience in order to decide how good the service was. Such as in a vacation, the individual can rate the service of the food, hotel, attractions etc.
Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ACME Wayne ($ in millions) Corporation Enterprises Current assets: Cash and cash equivalents $ 407 $ 165 Current investments 6 463 Net receivables 706 86 Inventory 10,653 7,409 Other current assets 1,215 135 Total current assets $ 12,987 $ 8,258 Current liabilities: Current debt $ 7,421 $ 4,229 Accounts payable 1,687 941 Other current liabilities 1,193 2,375 Total current liabilities $ 10,301 $ 7,545 Required: 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) 1-b. Which company has the better ratio
Answer:
1-a. ACME corporation is 1.26
Wayne corporation is 1.09
1-b. ACME corporation
Explanation:
ACME ($ in millions) Wayne ($ in millions)
Total current assets $ 12,987 $ 8,258
Total current liabilities $ 10,301 $ 7,545
1-a) Formula for calculating current ratio: Current ratio = Current assets ÷ Current liabilities
ACME corporation, current ratio = $ 12,987 million ÷ $ 10,301 million = 1.26
Wayne corporation, Current ratio = $ 8,258 million ÷ $7,545 million = 1.09
1-b. The higher the current ratio, the better the liquidity position. ACME corporation has the better ratio.
1-The current ratio of. ACME corporation is 1.26 and Wayne corporation is 1.09.
1-b. ACME corporation
Calculation of the current ratio:ACME ($ in millions) Wayne ($ in millions)
Total current assets $ 12,987 $ 8,258
Total current liabilities $ 10,301 $ 7,545
1-a) The Formula for calculating current ratio is
Current ratio = Current assets ÷ Current liabilities
For ACME corporation
= $ 12,987 million ÷ $ 10,301 million
= 1.26
And,
Wayne corporation
= $ 8,258 million ÷ $7,545 million
= 1.09
1-b. The higher the current ratio, the better should be the liquidity position. ACME Corporation has the better ratio.
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Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.'s accounting equation
Answer:
Megginson, Inc.
Effect of the Bond Issuance on Megginson, Inc.'s accounting equation:
(The account equation states that Assets = Liabilities + Equity.)
With the bond issuance, the Assets (Cash) will increase by $290,000 and the Liabilities (Bonds Payable) will increase by $300,000, and there will be a loss (Equity - Retained Earnings) of $10,000 in the form of Discount on Bonds. This discount on bonds is usually amortized over the bonds' life, thus increasing the interest payable.
Explanation:
The issuance of bonds is one of the means of obtaining finance for business operations. It is a long-term borrowing, which entities use to finance the activities when funds cannot be sourced from other sources or when it is considered cheaper to borrow from outside sources.
Journalize the following merchandise transactions. The company uses the perpetual inventory system.
a. Sold merchandise on account, $17,300, with terms 2/10, net 30. The cost of the goods sold was $12,600.
Sale Accounts Receivable
Cost of Goods Sold
Cost Inventory
Cash
b. Received payment within the discount period.
Sales
Accounts Receivable
Are these categories and $ amounts correct?
Answer:
a.
Accounts Receivable $17,300 (debit)
Cost of Goods Sold $12,600 (debit)
Sales Revenue $17,300 (credit)
Inventory $12,600 (credit)
b.
Cash $15,916 (debit)
Accounts Receivable $15,916 (credit)
Explanation:
The Perpetual Inventory system records the cost of inventory after every sale.
a. Sale of Sold merchandise on account
Recognize the Revenue and Cost of Sale as follows :
J1
Accounts Receivable $17,300 (debit)
Sales Revenue $17,300 (credit)
J2
Cost of Sales $12,600 (debit)
Merchandise $12,600 (credit)
b.Received payment within the discount period
Recognize the Cash receipts to the extend of amount paid less cash discount of 2%
Cash $15,916 (debit)
Accounts Receivable $15,916 (credit)
Cash Receipt = $17,300 × 92% = $15,916
Instant Access Services Inc. leases access to high-speed computers to small businesses. It provides the following information for the year:
Budgeted Actual
Overhead cost $2,100,000 $1,900,000
Computer hours 100,000 90,000
Direct labor hours 200,000 180,000
Overhead is applied on the basis of computer hours.
Instructions
a. Compute the predetermined overhead rate.
b. Determine the amount of overhead applied for the year.
Answer:
Predetermined overhead rate= $21 per hour
Applied overhead= $1,890,000
Explanation:
Overhead absorption rate (OAR)= Budgeted Overhead/Budgeted computer hours
= $2,100,000/100,000 computer hours= $21 per hour
Predetermined overhead rate= $21 per hour
Applied overhead= OAR × Actual hours
Overhead applied = $21 per hour × 90,000 = $1,890,000
Applied overhead= $1,890,000
Based upon Booked Orders and Sales Predictions, we expect to need the following finished goods over the planning period: 120 Product A We currently have the following Finished Goods Products in Inventory: 60 Product A We have scheduled the following to be produced in the factory within the planning period: 50 Product A How many products should we include on future Planned Production Orders
Answer:
10 product
Explanation:
Calculation of how many products should we include on future Planned Production Orders
Product A
Finished goods over the planning period =120
Finished Goods Products in Inventory= 60
Scheduled of what will be produced in the factory within the planning period =50
Hence
120-60-50=10
Therefore the amount of products should we include on future Planned Production Orders should be 10 products.
The receiving department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $3,600 per year. Other operating costs (maintenance) for the forklift total $1,500 per year. Inspection uses some special testing equipment that has depreciation of $1,200 per year and an operating cost of $750. Receiving has three employees who have an average salary of $50,000 per year. The work distribution matrix for the receiving personnel is as follows:
Activity Percentage of Time on Each Activity
Unloading 40%
Counting 25
Inspecting 35
No other resources are used for these activities.
Required:
Calculate the cost of each activity.
Unloading $
Counting $
Inspecting $
Answer:
Calculating the cost of each activity,
Unloading = $ 80,100
Counting = $ 37,500
Inspecting = $54,450
Explanation:
Given:
Unloading lease = $15,000 per year
Fuel for the forklift = $3,600 per year
Maintenance for the forklift = $1,500 per year
Inspection uses some special testing equipment that has depreciation of $1,200 per year
Operating cost = $750.
Receiving employees average salary = $50,000 per year
Salaries; 3 × 50,000 = 150,000
Unloading salary = 40% × 150,000 = 60,000
Counting salary = 25% × 150,000 = 37,500
Inspecting salary = 35% × 150,000 = 52,500
Unloading Counting Inspection
Equipment 15,000 1,200
Fuel 3,600
Operation cost 1,500 750
Labor 60,000 37,500 52,500
Total cost 80,100 37,500 54,450
You expect to receive annual gifts of $1,000 at the end of Years 1 and 2 and $1,500 at the end of Years 3 and 4. What is the correct present value of multiple annuities formula if the rate is 6 percent?
Answer:
PV of annuities =$3,021.53
Explanation:
The present value of the annuity would be as follows;
First annuity of $1000:
PV = A × (1- (1+r)^(-n)/r
PV = Present Value , r- rate of return, n-number of years
PV = 1000× (1- (1.06)^(-2)
PV= $1,833.39
The second annuity
PV = 1,500 x (1-1.06^(-2)× 1.06^(-2)= 1,188.140
PV = $1,188.140
PV of the annuities = $1,833.39 + $1,188.140 =$3,021.53
PV of annuities =$3,021.53
Snap Dragon Photo reported the following figures on its December 31, 2016, income statement and balance sheet:Net Sales $440,000 Dec 31 2016 Dec 31 2015Cash $26,000 $28,000Accounts Receivable 56,000 58,000Merchandise Inventory 79,000 76,000Prepaid Expenses 8,000 14,000Property, plant and equipment, net 180,000 11,000Compute the asset turnover ratio for 2016.
Answer:
Assets turnover ratio= 1.64 times
Explanation:
The asset turnover is the he amount of sales generated by one dollar invested in asset. it measures how efficient the business is in generating sales using assets
Assets turnover ratio = net sales / Average assets
Asset at the beginning of year 2016
=26,000 + 56,000 + 79,000 + 8,000 + 180,000 = 349 ,000
Asset at the end of year 2016
$28,000 + 58,000 + 76,000 + 14,000 + 11,000= 187 ,000
Average assets = Opening value of asset+ closing value of assets/2
= 349 ,000 + 187 ,000= 268 ,000
Assets turnover ratio = net sales / Average assets
=440000/268,000= 1.64 times
Assets turnover ratio= 1.64 times
Total assets =
A company received a bank statement with a balance of $ 6 comma 000.Reconciling items included a bookkeeper error of $ 300long dasha$ 300check recorded as $ 700long dashtwooutstanding checks totaling $ 810,a service charge of $ 21,a deposit in transit of $ 250,and interest revenue of $ 22.What is the adjusted bank balance?
Answer:
The adjusted bank balance is $5,293
Explanation:
In order to calculate the adjusted bank balance we would have to make the following calculation:
adjusted bank balance=Bank balance as per bank statement+Deposit in transit+Bank Service Charge+Interest revenue-Outstanding Checks-Error made by book keeper
adjusted bank balance=$6,000+$250+$21+$22-$700-$300
adjusted bank balance=$5,293
The adjusted bank balance is $5,293
If the government sets a price ceiling of $4, market forces will cause:
a. the quantity demanded to drop and the quantity supplied to rise.
b. a shortage will exist. a surplus will exist.
c. market forces will cause demand to drop and supply to rise.
d. market forces will cause supply to drop and demand to rise.
The table for the question is in the attachment.
Answer:
b. a shortage will exist.
Explanation:
Considering the table from the diagram, it shows that, when the price of Refrigerator Magnet is at 4 dollars, the Quantity demanded is 9, while the Quantity supplied is 4. This equates that, there is shortage of 5 in quantity supplied.
In other words, at the price of 4 dollars, the Quantity demanded is greatee than the Quantity supplied by 5.
Hence, the correct answer is B. A shortage will exist.
Celgene Corporation, a biopharmaceutical company based in New Jersey, develops cutting-edge drugs in a highly regulated environment. Areas such as informatics and functional genomics evolve on a daily basis, as do the regulations that control the pharmaceutical industry. The stem cell lines Celgene needs for research are very expensive and can be hard to acquire.
At Celgene, the environment is_______________ because of the___________________ and because of the______________ . Resources are_______________ .
The managers at Celgene are facing conditions of_______________ uncertainty. This means that it will be______________ for them to make strategic decisions about the types of products the company will offer in the future.
Answer:
At Celgene, the environment is dynamic because of the speed of change and because of the number of changing factors . Resources are scarce .
The managers at Celgene are facing conditions of high uncertainty. This means that it will be difficult for them to make strategic decisions about the types of products the company will offer in the future.
Explanation:
From the short passage leading to the question the following points have been used in the answers provided:
a. dynamic: the change in the areas such as informatics, functional genomics and regulations means that the operating environment is dynamic not static
b. speed of change: the statement "evolve on a daily basis" shows a fast pace of changing conditions
c. number of changing factors: the factors changing include informatics, functional genomics and regulations.
d. resources are scarce due to expensive researches and difficulty in acquisition of stem cells.
e. high uncertainty: due to the rapid evolution, the managers do not predict accurately, hence a high degree of uncertainty
e. increase in uncertainty makes decision making difficult.
The futures price of gold is $1,250. Furutes contracts are for 100 ounces of gold and the requirement is $5,000 per contact. The maintenacnce margin requirement is $1,500. You expect the price of gold to rise and enter into a contract to buy gold.
Required:
a. How much must you initially remit?
b. If the futures price of gold rises to $1,255, what is the profit and percentage return on your position?
c. If the futures price of gold declines to $1,248, what is the loss and percentage return on the position?
d. If the futures price falls to $1,238, what must you do?
e. If the futures price continues to decline to $1,210, how much do you have in your account?
f. How do you close your position?
Answer and Explanation:
a) The amount of initially rent equal to the requirement per contact i.e $5,000
b) Now the Profit is
= Future contract × (rise future prices - initial future prices)
= 100 × ($1,255 - $1,250)
= $500
And, the percentage return is
= Profit ÷ requirement
= $500 ÷ $5,000
= 10.00%
c) Now the loss is
= Future contract × (decline future prices - initial future prices)
= 100 × ($1,248 - $1,250)
= -$200
And, the loss percentage return is
= Loss ÷ requirement
= -$200 ÷ $5,000
= -4.00%
d) Now of the price of future price falls so the balance in account left is
= Requirement - future contract × (future price of gold - declined future prices)
= $5,000 - 100 × ($1,250 - $1,238)
= $3,800
Since as we can see the balance is more than the maintenance margin so there is nothing to be done
e) Now if the future price continues to falls to $1,210 so
Balance in the account is
= Requirement - future contract × (future price of gold - declined future prices)
= 5000 - 100 × ($1,250 - $1,210)
= $1,000
As we can see that the balance of the margin account is less than the maintenance margin so the initial margin i.e $5,000 is to be deposited
So, the amount deposited is
= $5,000 - $1,000
= $4,000
f)Now for closing the position can be done by entering into the inverse transaction i.e by selling off one futures contract.