Answer:
You anticipate that you will have $432,522 in the account on your 65th birthday, following your final contribution.
Explanation:
To calculate this, we use the formula for calculating the future value (FV) and FV of ordinary annuity as appropriate as given below:
FVd = D * (1 + r)^n ......................................................................... (1)
FVo = P * {[(1 + r)^n - 1] ÷ r} ...................... (2)
Where,
FVd = Future value of initial deposit or balance amount as the case may be = ?
FVo = FV of ordinary annuity starting from a particular year = ?
D = Initial deposit = $5,000
P = Annual deposit =s $500
r = Average annual return = 12%, or 0.12
n = number years = to be determined as necessary
a) FV in five years from now
n = 5 for FVd
n = 4 for FVo
Substituting the values into equations (1) and (2), we have:
FVd = $5,000 * (1 + 0.12)^5 = $8,812
FVo = $500 * {[(1 + 0.12)^4 - 1] ÷ 0.12} = $2,390
FV5 = Total FV five years from now = $8,812 + $2,390 = $11,201
FVB5 = Balance after $5,000 withdrawal in year 5 = $11,201 - $5,000 = $6,201.
b) FV in 10 years from now
n = 10 - 5 = 5 for both FVd and FVo
Using equations (1) and (2), we have:
FV of FVB5 = $6,201 * (1 + 0.12)^5 = $10,928
FVo = $500 * {[(1 + 0.12)^5 - 1] ÷ 0.12} = $3,176
FV10 = Total FV 10 years from now = $10,928 + $3,176 = $14,104
FVB10 = Balance after $10,000 withdrawal in year 10 = $14,104 - $10,000 = $4,104
c) FV in 45 years from now
n = 45 - 10 = 35 for both FVd and FVo
Using equations (1) and (2), we have:
FV of FVB10 = $4,104 * (1 + 0.12)^35 = $216,690
FVo = $500 * {[(1 + 0.12)^35 - 1] ÷ 0.12} = $215,832
FV45 = Total FV 45 years from now = $216,690 + $215,832 = $432,522
Conclusion
Therefore, you anticipate that you will have $432,522 in the account on your 65th birthday, following your final contribution.
The following data is available for Oriole Company at December 31, 2020: Common stock, par $10 (authorized 29000 shares) $232000 Treasury stock (at cost $15 per share) $975 Based on the data, how many shares of common stock are outstanding
Answer:
23,125 shares
Explanation:
The computation of the number of outstanding common stock shares is shown below:
= (Common stock ÷ Par value per share) - (Treasury stock ÷ cost per share)
where,
Common stock is $232,000
Par value per share is $10
Treasury stock is $975
And, the cost per share is $15
Now placing these values to the above formula
So, the number of common stock outstanding shares is
= ($232,000 ÷ $10) - ($975 ÷ $15)
= $23,200 - $65
= 23,135 shares
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
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
On April 1, Telecom Manufacturing Company's beginning balances in manufacturing accounts and finished goods inventory were as follows: Raw Materials $16,000 Manufacturing Supplies 1,500 Work-in-Process 6,500 Manufacturing Overhead 0 Finished Goods 30,000 During April, Telecom Manufacturing completed the following manufacturing transactions: 1. Purchased raw materials costing $47,000 and manufacturing supplies costing $3,000 on account. (Single Transaction) 2. Requisitioned raw materials costing $45,000 to the factory. 3. Incurred direct labor costs of $27,000 and indirect labor costs of $4,800. 4. Used manufacturing supplies costing $2,500. 5. Recorded manufacturing depreciation of $15,000. 6. Miscellaneous payables for manufacturing overhead totaled $3,600. 7. Applied manufacturing overhead, based on 2,250 machine hours, at a predetermined rate of $10 per machine hour. 8. Completed jobs costing $90,000. 9. Finished goods costing $100,000 were sold.
(a) Prepare "T" accounts showing the flow of costs through all manufacturing accounts, Finished Goods Inventory, and Cost of Goods Sold.
(b) Calculate the balances at the end of April for Work-in-Process Inventory and Finished Goods Inventory.Enter transactions in the T-accounts in the order they appear using the first available answer box on the appropriate side.
Answer:
Raw Materials
Debit Credit
16,000
#1 Purchase 47,000
#2 requisitions 45,000
Ending 18,000
Manufacturing Supplies
Debit Credit
1,500
#1 Purchase 3,000
#4 Used 2,500
Ending 2,000
WIP - Inventory
Debit Credit
6,500
#2 Direct M 45,000
#3 Direct L 27,000
#7 Applied MO 22,500
#Complete Jobs 90,000
Ending 11,000
Manufacturing Overhead
Debit Credit
0
#3 Indirect L 4,800
#4 Indirect M 2,500
#5 depreciation 15,000
#6 Miscellaneous 3,600
#7 Applied 22,500
Ending 3,400
Adjustment
for underapplied 3,400
Balance 0
Finished Goods
Debit Credit
30,000
#8 Completed 90,000
#9 Sold 100,000
Ending 20,000
Cost of Good Sold
Debit Credit
#9 Sold 100,000
Adjustment
for underapplied MO 3,400
ending 103,400
(b)
WIP Ending Balances 11,000
Finished Goods 20,000
Explanation:
The origin of the cost is displatyed on the credit whilethe destination in the dbeit
For example:
when we complete a job we credit work in process inventory (origin) and debit finished good (destination of the cost)
when we transfer the requisitioned materials we credit raw materials (origin) and debit WIP-inventory (destination)
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.
Frantic Fast Foods had earnings after taxes of $900,000 in 20X1 with 301,000 shares outstanding. On January 1, 20X2, the firm issued 32,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 28 percent. a. Compute earnings per share for the year 20X1. (Round your answer to 2 decimal places.) b. Compute earnings per share for the year 20X2. (Round your answer to 2 decimal places.)
Answer:
A.$2.99
B.$1.15
Explanation:
Frantic Fast Foods
A.Computation of the earnings per share for the year 20X
Using this formula
Earnings per Share=Earnings after Taxes/Shares Outstanding
Let plug in the formula
900,000/301,000
=$2.99
The earnings per share for 20X1 will be $2.99
B. Computation of the earnings per share for the year 201X
Earnings after Taxes= 301,000 * 1.28 = 385,280
Shares Outstanding=301,000 + 32,000 = 333,000
Hence,
Earnings after Taxes/Shares Outstanding
385,280 / 333,000 = $1.15
Therefore the earnings per share for 20X1 will
be $1.15 .
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
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
Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 100,000 shares of $5 par value common stock. During 2021, Clothing Emporium had the following transactions relating to stockholders’ equity: Issued 30,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. What is the total stockholders' equity at the end of 2021?
Answer:
The total stockholders' equity at the end of 2021 is $250,000
Explanation:
In order to calculate the total stockholders' equity at the end of 2021 we would have to calculate the transactions relating to stockholders’ equity times the $5 par value common stock as follows:
stockholders' equity at the end of 2021=Issue of 30,000 shares*$5+Issue of 20,000 shares*$5
stockholders' equity at the end of 2021=$150,000+$100,000
stockholders' equity at the end of 2021=$250,000
The total stockholders' equity at the end of 2021 is $250,000
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.
Using the direct write-off method of accounting for uncollectible receivables. Feb. 20 Received $1,000 from Andrew Warren and wrote off the remainder owed of $4,000 as uncollectible. May 10 Reinstated the account of Andrew Warren and received $4,000 cash in full payment.
Required:Journalize the above transactions. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Entries for the journal are as follows
Explanation:
February 20
As we have received the cash from Andrew we will debit the cash and we know that we cant recover the remaining amount, we will debit the bad debt as expenses are of debit nature and will credit the account receivable as it is No more our receivable
Entry: Cash $1000 (Debit)
Bad debt $4000 (Debit)
Account receivable $5000(Credit)
May 10
Now we have received the payment from the Andrew that we wrote off on feb 20 Now we have to somehow reverse the entries as follows
Entry: account receivable $4000(Debit)
Bad debt expense $4000(credit)
Cash $4000(debit)
Account receivable $4000 (credit)
Answer:
Given:
Feb. 20: Received $1,000 from Andrew Warren and wrote off the remainder owed of $4,000 as uncollectible.
May 10: Reinstated the account of Andrew Warren and received $4,000 cash in full payment
Required: Journalize using direct write-off method of accounting for uncollectible receivables.
Journalize:
February 20
Bad Debt Expense Dr.: 4000(debit)
Cash Dr.: 1000(debit)
Accounts Receivable Cr.: (4000+1000) 5000(credit)
_______________________
May 10
Accounts Receivable Dr.: 4000(debit)
Bad Debt Expense Cr.: 4000(credit)
Cash Dr.: 4000(debit)
Accounts Receivable Cr. 4000(credit)
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
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
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
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
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
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
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.
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
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
We use 2,000 electric drills per year in our production process. The ordering cost for these is $100 per order and the Holding( carrying) cost is assumed to be 40% of the per unit cost. Each drill costs $78. What is the optimal quantity that would minimize the sum of Holding and Ordering costs.
Answer:
The Optimal Quantity to minimize Holding and Ordering Costs:
This is also known as the Economic Order Quantity (EOQ).
We can work it out using the EOQ formula.
The formula for EOQ is:
Q = √(2DS)/H
where:
Q=EOQ units
D=Demand in units (typically on an annual basis) = 2,000
S=Order cost (per purchase order) = $100
H=Holding costs (per unit, per year) = $31.20 ($78 x 40%)
Formula and Calculation of Economic Order Quantity (EOQ)
Q = √(2x2,000x $100)/$31.2
Q = √12,820.5 = 113.228 or 113 approximately.
Explanation:
EOQ is an important cash flow management tool. The formula assists a company to control the amount of cash tied up in inventory. For many companies, inventory is their largest asset. Companies hold enough inventory to meet customers' demand. Since EOQ minimizes the level of inventory, the cash savings can be used for some other business purposes or investments.
The goal of the EOQ formula is to identify the optimal number of product units to order. If achieved, a company can minimize its costs for buying, delivery, and storing units, including the costs from running out of inventory.
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.
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
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
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 .
Webster's Discount Appliances expects sales of $12,000, $15,000, and $25,000 during April, May, and June (big sale in June). To build business, Webster let's all customers buy on credit, and all do so. In the past, 20% of Webster's Discount Appliances sales have been collected during the month of sale, 65% are collected the following month, and 15% the month after that. If this trend continues, what will be Webster's total cash collections in the month of June
Answer:
$16,550
Explanation:
The computation of total cash collections in the month of June is shown below:-
Total cash collections in the month of June = (June sales × Percentage of collection) + (May sales × Percentage) + (April × Percentage)
= ($25,000 × 20%) + ($15,000 × 65%) + ($12,000 × 15%)
= $5,000 + $9,750 + $1,800
= $16,550
So, for computing the total cash collections in the month of June we simply applied the above formula.
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.
Required information
Great Adventures Problem
The following information applies to the questions displayed below.
Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2022, for $13,200. They expect to use the Suburban for five years and then sell the vehicle for $5,100. The following expenditures related to the vehicle were also made on July 1, 2022:
The company pays $2,100 to GEICO for a one-year insurance policy.
The company spends an extra $4,200 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.
An additional $2,300 is spent on a deluxe roof rack and a trailer hitch.
The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2022, the company pays $1,000 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.
Required:
Record the depreciation expense and any other adjustments related to the vehicle on December 31, 2022.
Answer:
book value = $13,200 (purchase price) + $4,200 (paint) + $2,300 (accessories) = $19,700
useful life 5 years, salvage value $5,100
assuming the company uses straight line depreciation:
depreciation per year = ($19,700 - $5,100) / 5 years = $2,920 per year
the journal entries to record the purchase of the vehicle and the improvements are:
July 1, 2022, vehicle is purchased
Dr Suburban SUV 13,200
Cr Cash 13,200
July 1, 2022, vehicle's paint and accessories
Dr Suburban SUV 6,500
Cr Cash 6,500
the journal entry to record depreciation expense ($2,920 x 6 months)
December 31, 2022, depreciation expense
Dr Depreciation expense 1,460
Cr Accumulated depreciation - Suburban SUV 1,460
the journal entry to record insurance expense ($2,100 x 6 months)
December 31, 2022, insurance expense
Dr Insurance expense 1,050
Cr Prepaid insurance 1,050
1) The depreciation expense is :
Book Value = Purchase price + Paint + Accessories
Book Value = $13,200+ $4,200 + $2,300
Book Value = $19,700
Selling Value after 5 years = $5,100
Assuming :
Straight Line Depreciation:
Depreciation per year = (Book Value-Selling Value )/5 Years
Depreciation per year = ($19,700 - $5,100) / 5 years
Depreciation per year = $2,920 per year
The journal entries to record the purchase of the vehicle and the improvements are:
July 1, 2022, vehicle is purchasedDr Suburban SUV $13,200
Cr Cash $13,200
July 1, 2022, vehicle's paint and accessoriesDr Suburban SUV $6,500
Cr Cash $6,500
Journal entry to record depreciation expense ($2,920 x 6 months)December 31, 2022,
Dr Depreciation expense $1,460
Cr Accumulated depreciation - Suburban SUV $1,460
Record insurance expense ($2,100 x 6 months)Dr Insurance expense $1,050
Cr Prepaid insurance $1,050
Learn more about "Depreciation":
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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.
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