Barbara's Bakery purchased three new 7-year assets last year. She chose NOT to use Section 179 immediate expensing or take bonus depreciation. The furnishings were purchased for $15,000 in April, the equipment for $6,000 in July, and the appliances for $40,000 in November. Using the appropriate MACRS depreciation tables in the Appendix, what amount of depreciation expense is allowable in the current (second) year of ownership?
a) $16,806
b) $14,939
c) $16,163
d) $16,072
Answer:
$ 4,748
Explanation:
The depreciation expenses = [tex]$(\$ 15000 \times 17.85 \%) + (\$ 6000 \times 10.71 \%)+(\$ 40000 \times 3.57 \%)$[/tex]
[tex]$= \$ 2677.50 + \$ 642.6 + \$ 1428$[/tex]
= $ 4748
Generally we have use half year convention for assets that are purchased during the year but here we used the mid quarter as of more than the 40% of the assets are being purchased in last quarter of the year
[tex]$=\frac{\text{assets purchased in last quarter}}{\text{total assets purchased in the year}} \times 100$[/tex]
[tex]$=\frac{40000}{61000} \times 100$[/tex]
[tex]$=65.57 \%$[/tex] (it is more than 40%)
Thus we can use the mid quarter mars depreciation rates for the 7 years assets that are purchased this year.
The following information is available for Wonderway, Inc., for 2015:
Factory rent $28,700
Company advertising 19,900
Wages paid to laborers 83,600
Depreciation for president's vehicle 8,050
Indirect production labor 1,990
Utilities for factory 31,400
Production supervisor's salary 31,600
President's salary 61,300
Direct materials used 35,600
Sales commissions 7,640
Factory insurance 13,600
Depreciation on factory equipment 28,000
Required:
a. Calculate the direct labor cost for Wonderway.
b. Calculate the manufacturing overhead cost for Wonderway.
c. Calculate the prime cost for Wonderway.
d. Calculate the conversion cost for Wonderway.
e. Calculate the total manufacturing cost for Wonderway.
f. Calculate the period expenses for Wonderway.
Answer:
a. $81,610
b. $135,290
c. $117,200
d. $216,900
e. $252,490
f. $96,890
Explanation:
direct labor cost = $83,600 - $1,990 = $81,610
manufacturing overhead cost = $28,700 + $1,990 + 31,400 + $31,600 + $13,600 + 28,000 = $135,290
prime cost = $35,600 + $81,610 = $117,200
conversion cost = $81,610 + $135,290 = $216,900
total manufacturing cost = $135,290 + $117,200 = $252,490
period expenses = $19,900 + $8,050 + $61,300 + $7,640 = $96,890
External hiring reduces organizational diversity.
Answer:
The statement is not true.
Explanation:
External hiring does not reduce organizational diversity, it actually does the opposite: it increases organizational diversity.
External allows managers to include in their working teams new mebers who bring different knowledge and experience to the organization. In fact, one of the main motivations for managers to engage in external hiring is precisely increasing the variety of viewpoints inside the firm.
In the Investment marketplace, Investors will likely accept a high-risk investment only if it promises
Select the best answer from the choices provided.
А.
real returns
B.
nominal returns
C. high returns
D. low, constant returns
Answer: C. high returns
Explanation: Risk-return tradeoff is an investing theory which indicates that as higher the risk, the greater the return reward. In order to determine an acceptable risk-return tradeoff, investors need to weigh several aspects, including total risk exposure, the ability to substitute missing capital, and more.
Damian invests $5,000 today in an account earning 6% per year. How much is the investment worth in 4 years
Answer:
$6,312
Explanation:
The amount that the investment will be worth in 4 years is known as the future value. We compound the Present Value using the interest rate to determine the future value.
Note : Here I will use a financial calculator to compute the future value
PV = $5,000
r = 6 %
P/yr = 1
n = 4
Pmt = $0
Fv = ?
Thus, the investment will be worth $6,312 in 4 years.
Sofia worries that if something happens to her husband and he dies, she will lose everything—their home, their cars, etc. Which type of business should Sofia consult to see if there is a plan available to cover her expenses if her husband dies?
A.
stock-held savings institution
B.
web-only financial institution
C.
mutual fund company
D.
life insurance company
Answer:
D
Explanation:
She is worried about losing everything and having life insurance is what everyone does when wanting to keep something after a love one dies.
Answer:
D.
life insurance company
Explanation:
D.
life insurance company
A company is currently selling 10,000 units of product monthly for $40 per unit. The unit contribution margin is $27. The company believes that spending $50,000 per month on advertising will allow them to increase the selling price to $45 and that sales will increase by 750 units per month. The company should ______.
Answer:
The company should accept the idea reason been that the profit will increase by $24,000
Explanation:
Calculation to determine What should the company do
First step
Increased CM = [10,750 x (27+(40-45))]- (10,000 x 27)
Increased CM = [10,750 x(27+5)]- (10,000 x 27)
Increased CM = (10,750 x 32) - (10,000 x 27)
Increased CM = $344,000-$270,000
Increased CM = $74,000
Now let calculate the profit
Profit =$74,000-$50,000
Profit=$24,000 Increase
Therefore based on the above calculation The company should accept the idea reason been that the profit will increase by the amount of $24,000