Answer:
1. An easement is the right given to a person by law to utilize a particular part of another person's land.
2. When an easement is obtained against the consent of the landowner it is known as Prescriptive easement.
3. An easement that is created by two adjacent landowners where one is landlocked by the other landowner is called Easement appurtenant.
Explanation:
An easement is the lawful right of a person to use another person's property. Ingress, egress, and drainage are common reasons why an easement might be needed. When a piece of land does not have access to a roadway, then an easement might be required.
Prescriptive easement occurs when a land has been used by another person who is not the legal owner for up to twenty years without the consent/knowledge of the original owner of the land.
Easement appurtenant occurs for example when a person cannot access his own land with passing through another person's land. An easement by necessity can be created in such situations to solve the problem.
What does the relationship between the unemployment rate and the natural unemployment rate tell us about cyclical unemployment?
When the unemployment rate is
than the natural unemployment rate, cyclical unemployment is
A. less; positive
B. greater, negative
C. less; negative
D. greater; is increasing
Answer:
C. less; negative
Explanation:
The unemployment rate=natural unemployment rate+cyclical unemployment rate
if The unemployment rate<natural unemployment rate then the cycalical rate of unemployment is negative.
Classify each of the following based on the macroeconomic definitions of saving and investment.
A. Caroline buys new bulldozers for her construction firm.
B. Dmitri purchases a new condominium in Detroit.
C. Frances purchases stock in NanoSpeck, a biotech firm.
D. Antonio purchases a corporate bond issued by a car company.
Answer:
A. Investment
B. Investment
C. Saving
D. Saving
Explanation:
Saving refers to the amount that is set aside that can be used for any future emergencies or purchases.
Investment refers to purchasing assets such as bonds, stocks, mutual funds that help in making money.
A. Caroline buys new bulldozers for her construction firm. - Investment
B. Dmitri purchases a new condominium in Detroit. - Investment
C. Frances purchases stock in Nano Speck, a biotech firm. - Saving
D. Antonio purchases a corporate bond issued by a car company. - Saving
AAA Advertising hires Christopher as a photographer to take photographs of products for AAA’s use in its advertising campaigns. Christopher is to use his own DSLR camera. Christopher will have an office at AAA but only needs to come in 10 hours a week, of his own choosing. Christopher will work under a supervisor who will tell him exactly what photos to take and how many of each product. He will be paid a flat $2,000 salary every other week, regardless of how much work he does. 1) What is Christopher’s employment status with AAA, is he an employee or independent contractor? 2) Discuss each of the applicable factors used to determine whether a worker is an independent contractor or employee.
Answer:
Christopher is an Employee
Explanation:
1) Christopher is an Employee because he is been paid a flat rate regardless of the amount of work he puts in, also he is directly supervised, has an office in AAA and also he must put in 10 hours of work per week
2) Factors that makes a worker an independent contractor or an Employee includes
level of instruction; If the company or its representative directs the worker on how, when and where a job can be done this indicates that the worker is an employee work schedule: An independent contractor is totally in control of his time and determines the amount of hours to put in but if the work schedule is determined by the company then it will be an employee arrangement form of payment ; Hourly, weekly and monthly payments are mostly used for employees ,most independent contractors collect their pay once a task is completed by themprofit or loss : Employees do not share in the profit or loss of the organization since they are paid a flat rate.small accounting firm is considering the purchase of a computer software package that would greatly reduce the amount of time needed to prepare tax forms. The software costs $2150 and this expense will be incurred immediately. The firm estimates that it will save $650 of cash flow at the end of each year beginning in one year for 5 consecutive years, and also save $1788 in year 6. What is the payback on the computer package
Answer:
Pay back period =3 years 4 months
Explanation:
The payback period is the estimated length of time it takes cash inflow from a project to recoup the cash outflow.
The payback period uses cash flows and not profit.
The payback period can be determined by accumulation the cash inflow consecutively to ascertain the length of time it will take the sum to equate the initial cost.
This will be done as follows:
The sum of the cash in flows for the first three years would equal
650× 3= 1,950
The balance required to equate 2,150 would be
balance = 2150-1950 = 200
Pay back period = 3 years + (200/650)× 12 months
= 3 years 3.6months
Pay back period =3 years 4 months
Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 3% rate after Year 3. Wilde's tax rate is 25%. Year 1 Year 2 Year 3 Interest expenses $80 $95 $140 What is the horizon value of the interest tax shield
Answer: $400.56
Explanation:
Horizon value = Tax shield in 3rd year * (1 + growth rate) / (Required return - Growth rate)
Tax shield in year 3 = Interest expense * tax rate
= 140 * 25%
= $35
Horizon value = 35 * ( 1 + 3%) / (12% - 3%)
= $400.56
One of the reasons we make bad decisions is because we have to rely on our perceptions.
a. True
b. False
Answer:
false??
Explanation:
1. The federal government is considering selling tracts of federally owned land to private developers and using the revenues to provide aid to victims of an earthquake in a foreign country. How would this policy affect the levels of federal revenues, expenditures, and deficits under a cash accounting system
Answer:
The responses to this question can be defined as follows:
Explanation:
In a currency system, its current amount of the debt is influenced by the cash financial statements, and sales will rise by amount and revenue would be compensated by spending increases on foreign aid. The financial accounting system must realize that its government sold a well-established resource and increased the overall scarcity.
Its capital account weakness relates to an undistorted added money from the currency exchange that would offset a decrease throughout the estimate of the benefits of Congress and lead to an increase in the utilization of the shortfall quickly.
Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,500 direct labor-hours will be required in August. The variable overhead rate is $1.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,410 per month, which includes depreciation of $8,940. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Answer:
Overhead cash disbursement= $102,720
Explanation:
First, we need to allocate variable overhead using the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.5*7,500
Allocated MOH= $11,250
Now, we can calculate the cash disbursement for August. Depreciation is not a cash expense. We should deduct it from fixed costs.
Overhead cash disbursement= 11,250 + 100,410 - 8,940
Overhead cash disbursement= $102,720
Culver Company is involved in four separate industries. The following information is available for each of the four industries. Operating Segment Total Revenue Operating Profit (Loss) Identifiable Assets W $63,278 $14,930 $155,962 X 10,900 2,380 77,981 Y 27,275 (2,980) 18,823 Z 7,647 1,070 16,134 $109,100 $15,400 $268,900 Determine which of the operating segments are reportable based on the: Reportable Segments (a) Revenue test. select an operating segment (b) Operating profit (loss) test. select an operating segment (c) Identifiable assets test. select an operating segment eTextbook and Media
Answer:
Reportable Segments
(a) Revenue test. W and Y
(b) Operating profit (loss) test. W, X and Y
(c) Identifiable assets test. W and X
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answers is now given as follows:
Note: See the attached excel file for the determination of the operating segments which are reportable (in bold red color).
Note that the criterion is that a segment is reportable if it contains an amount that is greater than 10% of the total amount. Otherwise, it is nonreportable.
Based on this criterion, we have the following from the attached excel file:
Reportable Segments
(a) Revenue test. W and Y
(b) Operating profit (loss) test. W, X and Y
(c) Identifiable assets test. W and X
eamish Incorporated, which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 10,700 Variable costs per unit: Direct materials $ 108 Direct labor $ 51 Variable manufacturing overhead $ 7 Variable selling and administrative expense $ 9 Fixed costs: Fixed manufacturing overhead $417,300 Fixed selling and administrative expense $834,600 There were no beginning or ending inventories. The absorption costing unit product cost was:
Answer:
$205 per unit
Explanation:
Calculation to determine what The absorption costing unit product cost was:
Using this formula
Absorption costing unit product cost = Direct material + Direct labour + Variable manufacturing overheads + (Fixed manufacturing overheads / Number of units produced)
Let plug in the formula
Absorption costing unit product cost= $108 + $51 + $7 + ($417,300 / 10,700)
Absorption costing unit product cost=$108 + $51 + $7 + $39
Absorption costing unit product cost= $205 per unit
Therefore The absorption costing unit product cost was:$205 per unit
Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Zolas' Heaters has excess capacity. The following per unit data apply for sales to regular customers: Direct materials $450.00 Direct manufacturing labor 160.00 Variable manufacturing support 100.00 Fixed manufacturing support 210.00 Total manufacturing costs 920.00 Markup (25% of total manufacturing costs) 230.00 Estimated selling price $1150.00 For Zolas' Heaters, what is the minimum acceptable price of this one-time-only special order
Answer:
Zolas' Heaters
The minimum acceptable price of this one-time-only special order is:
= $887.50.
Explanation:
a) Data and Calculations:
Direct materials $450.00
Direct manufacturing labor 160.00
Variable manufacturing support 100.00
Fixed manufacturing support 210.00
Total manufacturing costs 920.00
Markup (25% of total manufacturing costs) 230.00
Estimated selling price $1,150.00
The minimum acceptable price of this one-time-only special order:
Direct materials $450.00
Direct manufacturing labor 160.00
Variable manufacturing support 100.00
Total manufacturing costs 710.00
Markup (25% of total variable mfg costs) 177.50
Selling price $887.50
Income Statement; Net Loss The following revenue and expense account balances were taken from the ledger of Guardian Health Services Co. after the accounts had been adjusted on February 28, 20Y0, the end of the fiscal year: Depreciation Expense $15,600 Insurance Expense 7,640 Miscellaneous Expense 6,080 Rent Expense 63,000 Service Revenue 299,500 Supplies Expense 3,740 Utilities Expense 24,020 Wages Expense 235,600 Prepare an income statement. Use a minus sign to indicate a net loss.
Answer:
-$56,180
Explanation:
Preparation of an income statement
INCOME STATEMENT
Service revenue $299,500
Less Expenses:
Depreciation expense $15,600
Insurance expense $7,640
Miscellaneous expense $6,080
Rent expense $63,000
Supplies expense $3,740
Utilities expense $24,020
Wages expense $235,600
Total expenses $355,680
Net loss -$56,180
($299,500-$355,680)
Therefore the income statement balance will be -$56,180
The fact that most medical care purchases are financed through insurance Group of answer choices has no effect on health care consumption because aggregate costs are the same regardless of payment method. reduces the amount of health care consumed by raising the price of additional units of care. has decreased health care costs and therefore reduced aggregate health care expenditures. increases the amount of health care consumed by reducing the price of additional units of care.
Answer: increases the amount of health care consumed by reducing the price of additional units of care.
Explanation:
When individuals have health insurance, they pay only a certain amount of premiums per period yet when they have a health problem, the insurance company will cover the cost of that problem for the most part.
This means that the insured only have to pay a certain amount for healthcare which reduces their overall cost were they to consume additional units because they would not have to pay for those additional units.
McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: Direct materials $86,000 Direct labor 126,000 Variable factory overhead 58,000 Fixed factory overhead 138,000 Total costs 408,000 Of the fixed factory overhead costs, $55,000 is avoidable. Conners Company has offered to sell 12,000 units of the same part to McMurphy Corporation for $41 per unit. Assuming there is no other use for the facilities, Schmidt should ________. Group of answer choices buy the part, as this would save the company $192,000 buy the part, as this would save $16 per unit make the part, as this would save almost $14 per unit make the part, as this would save $16 per unit
Answer:
make the part, as this would save almost $14 per unit
Explanation:
We have to compare the total cost to make against the total cost to buy 12,000 units.
Total Cost to Make
Direct materials $86,000
Direct labor $126,000
Variable factory overhead $58,000
Fixed factory overhead $55,000
Total Cost $325,000
Total Cost to buy
Purchase Price = $41 x 12,000 units = $492,000
Difference
Financial Advantage = Total Cost to buy - Total Cost to Make
= $492,000 - $325,000
= $167,000
Conclusion :
Schmidt should make the part, as this would save almost $14 per unit
Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a ($15,000) loss; however, Michelle has sufficient tax basis and at-risk amounts to absorb the loss. If Michelle has $115,000 of salary, $10,000 of long-term capital gains, $3,000 of dividends, and no additional sources of income or deductions, how much loss can Michelle deduct
Answer: $11000
Explanation:
The total income earned by Mitchell will be the addition of the salary, long term capital gain and dividend. This will be:
= $115,000 + $10,000 + $3,000
= $128,000
The exception amount of $25000 can be gotten.
Modified adjusted gross income = $100,000
Phased out amount = ($128000 - $100000) × 50%
= $28000 × 0.5
= $14000
Mitchell's loss = $25000 - $14000 = $11000
Why were metal Coins suitable by then
Answer:
The coinage metals comprise, at a minimum, those metallic chemical elements which have historically been used as components in alloys used to mint coins. The term is not perfectly defined, however, since a number of metals have been used to make "demonstration coins" which have never been used to make monetized coins for any nation-state, but could be. Some of these elements would make excellent coins in theory (for example, zirconium), but their status as coin metals is not clear. In general, because of problems caused when coin metals are intrinsically valuable as commodities, there has been a trend in the 21st century toward use of coinage metals of only the least exotic and expensive types.
Explanation:
if it is helpful.......... plzzz. like and follow
Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $26,770 in the first quarter, and $5,240 increments are expected in the remaining quarters of 2020. Fixed expenses are expected to be $41,680 in each quarter. Prepare the selling and administrative expense budget by quarters and in total for 2020.
Answer:
Results are below.
Explanation:
Giving the following information:
Variable expense= $26,770 ($5,240 increase each quarter)
Fixed expense= $41,680
First, we will calculate the total cost per quarter:
Q1= 26,770 + 41,680
Q1= $68,450
Q2= (26,770 + 5,240) + 41,680
Q2= $73,690
Q3= (32,010 + 5,240) + 41,680
Q3= $78,930
Q4= (37,250 + 5,240) + 41,680
Q4= $84,170
Now, the total cost:
Total annual cost= $305,240
Flag As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March of 2012 were as follows: $120,000, $140,000 and $150,000. 20% of each months sales are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and for cash sales) in the month of february
Answer:
Grackle Company
The total cash collected (both from accounts receivable and for cash sales) in the month of february is:
= $133,600.
Explanation:
a) Data and Calculations:
January 1, Accounts receivables = $50,000
January 2012, Sales = $120,000
February 2012, Sales = $140,000
March 2012, Sales = $150,000
January February March
Sales $120,000 $140,000 $150,000
20% Cash Sales 24,000 28,000 30,000
80% Credit Sales 96,000 112,000 120,000
Cash Collections:
20% Cash Sales 24,000 28,000 30,000
60% month of sale 57,600 67,200 72,000
40% following month 50,000 38,400 44,800
Total collections $131,600 $133,600 $146,800
Cream 424,000 at $130 per gallon Liquid skim 344,500 at $115 per gallon The cost of purchasing 820,000 gallons of direct materials and processing it up to the split-off point to yield a total of 797,500 gallons of good product was $2,350,000. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to cream and liquid skim
Question Completion:
Production:
Cream = 443,000 gallons
Liquid skim = 354,500 gallons
Total production = 797,500 gallons
Answer:
The approximate amount of joint costs that will be allocated to cream and liquid skim =
Cream = $1,305,392
Liquid skim = $1,044,608
Explanation:
a) Data and Calculations:
Direct materials purchased = 820,000 gallons
Total yield at split-off = 797,500
Joint costs = $2,350,000
Cream Liquid Skim
Sales units at split-off 424,000 344,500 gallons
Selling price per unit $130 $115
Production Cream 443,000 354,500 gallons
Allocation of joint costs, using a physical volume measure:
Cream = $2,350,000 * 443,000/797,500 = $1,305,392
Liquid Skim = $2,350,000 * 354,500/797,500 = $1,044,608
A firm began the construction of its new manufacturing facility in January of 20x2. The following expenditures were made on construction in that year: Jan. 1 $40,000 Mar. 1 120,000 Oct. 31 96,000 Debt outstanding the entire year: 6%, $60,000 construction loan 4%, $90,000 note payable not related to construction 6%, $90,000 note payable not related to construction Compute interest to be capitalized using the weighted average method.
a. $6,720
b. $12,600
c. $8,400
d. $8,190
Answer:
d. $8,190
Explanation:
Firstly, average accumulated expenditures is ;
= $40,000 + $120,000 ( 10/12) + $960,000 (2/12)
= $156,000
The rate
= ($3,600 + $3,600 + $5,400) / $240,000
= 0.0525
Therefore, Interest capitalized is
= (0.0525) × $156,000
= 8,190
For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 280,000 Permanent difference (15,500 ) 264,500 Temporary difference-depreciation (19,300 ) Taxable income $ 245,200 Tringali's tax rate is 25%. Assume that no estimated taxes have been paid. What should Tringali report as its income tax expense for its first year of operations
Answer:
$61,300
Explanation:
Calculation to determine What should Tringali report as its income tax expense for its first year of operations
Using this formula
Income tax expense=Taxable income * Tringali's tax rate
Let plug in the formula
Income tax expense=$ 245,200*25%
Income tax expense=$61,300
Therefore What should Tringali report as its income tax expense for its first year of operations will be $61,300
North Company has completed all of its operating budgets. The sales budget for the year shows 50,900 units and total sales of $2,301,800. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $303,800. Interest is estimated to be $11,820. Income taxes are estimated to be $200,800. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.
Answer:
North Company
Budgeted multiple-step income statement for the year ending December 31, 2020
Sales $2,301,800
Less Cost of Goods Sold (50,900 units x $23) ($1,170,700)
Gross Profit $1,131,100
Less Expenses
Operating Expenses
Selling and administrative expenses $303,800
Operating Profit $827,300
Non Operating Expenses
Interest $11,820
Income taxes $200,800
Net Income (Loss) $614,680
Explanation:
North Company budgeted multiple-step income statement for the year ending December 31, 2020 is prepared above.
Total demand for Oxy is 10,000 units and for Sonic is 6,000 units. Machine time is a scarce resource. During the year, 50,000 machine hours are available. Oxy requires 4 machine hours per unit, while Sonic requires 2.5 machine hours per unit. What is the maximum contribution margin Garrison can achieve during a year
Answer:
$444,250
Explanation:
Calculation to determine the maximum contribution margin Garrison can achieve during a year
First step is to calculate the Contribution margin per hour
Oxy sonic
Sales $75 $44
Less: variable cost $40 $21
=Contribution margin per unit 35 23
÷Machine hour per unit 4 2.5
=Contribution margin per hour $8.75 $9.2
Ranking 2 1
Second step is to calculate the Hour required for sonic
Hour required for sonic = 6,000*2.5
Hour required for sonic= 15,000 hours
Third step is to calculate the Hour available for oxy
Hour available for oxy = 50,000-15,000
Hour available for oxy = 35,000 hours
Fourth step is to calculate the Production of Oxy
Production of Oxy = 35,000/4
Production of Oxy= 8,750 units
Now let calculate the Maximum contribution margin
Maximum contribution margin = 8,750*35+ 6000*23
Maximum contribution margin =306,250+,138,000
Maximum contribution margin = $444,250
Therefore the maximum contribution margin Garrison can achieve during a year is $444,250
RecRoom Equipment Company received an $12,600, six-month, 5% note to settle an $12,600 unpaid balance owed by a customer.
The note is accepted by RecRoom on November 1, causing the company to increase its Notes Receivable and decrease its Accounts Receivable.
RecRoom adjusts its records for interest earned to its December 31 year-end.
RecRoom receives the interest on the note's maturity date.
RecRoom receives the principal on the note's maturity date.
Make journal entries:
A) Record the receipt of a note on November 1 for $8,000 to settle an outstanding accounts receivable balance of a customer.
B) Record the interest accrued on the note as of December 31.
C) Record the receipt of the interest on the note’s maturity date.
D) Record the receipt of the payment for the full principal.
Answer:
A. Dr Notes Receivable $12,600
Cr Cash $12,600
B. Dr Interest Receivable $105
Cr Interest Revenue $105
C. Dr Cash $315
Cr Interest Receivable $105
Cr Interest Revenue $210
D. Dr Cash $12,600
Cr Notes Receivable $12,600
Explanation:
A. Preparation of the journal entry to Record the receipt of a note on November 1
November 1
Dr Notes Receivable $12,600
Cr Cash $12,600
(Being to record the receipt of a note )
B. Preparation of the journal entry to Record the interest accrued on the note as of December 31.
December 31
Dr Interest Receivable $105
Cr Interest Revenue $105
($12,600 x .05 x 2/12= $105)
(Being to record interest accrued on the note)
C. Preparation of the journal entry to Record the receipt of the interest on the note’s maturity date.
Dr Cash $315
($12,600 x .05 x 6/12= $315)
Cr Interest Receivable $105
($12,600 x .05 x 2/12= $105)
Cr Interest Revenue $210
($12,600 x .05 x 4/12= $210)
(Being to record receipt of the interest on the note’s maturity date)
D. Preparation of the journal entry to Record the receipt of the payment for the full principal.
Dr Cash $12,600
Cr Notes Receivable $12,600
(Being to to Record the receipt of the payment for the full principal)
A firm' s sales procedure involves preparing sales invoices based on shipping documents; posting the sales amounts to accounts receivable records; and posting quantities billed to the inventory records. Due to control weaknesses in the procedure, certain goods that are shipped may not be reflected in the sales invoices. The exposure from this risk can result in:
Answer: understatement of revenues and receivables and over statement of inventory
Explanation:
Control weakness simply refers to the failure by a company to implement the internal controls. Based on the information given, the exposure from this risk can result in understatement of revenues and receivables and over statement of inventory.
There'll be understatement of revenue and receivables since sales is not recorded while the inventory will be overstated.
Question 9 of 10 Which of the following is a good example of responsible concern for consumer rights? O A. A construction company advises a potential customer that he can accomplish his project much faster and cheaper by contacting a different company. Giving this advice will likely lead to the company's loss of the consumer's business, O B. A snack food manufacturer knows that their snacks contain only minor traces of common allergens, such as peanuts, and doesn't want to cause unnecessary worry, so they don't identify this on the food labels. C. An employer is very concerned about the well being of his employees. He decides to sponsor their membership to a health club and pay for routine consultations with a dietician D. A sales representative for a communications provider is trained to present the most expensive service packages to consumers first. If the consumer asks for cheaper options, however, the sales representative is to offer those
Answer:
D. A sales representative for a communications provider is trained to present the most expensive service packages to consumers first. If the consumer asks for cheaper options, however, the sales representative is to offer those
Explanation:
Answer:
A. A construction company advises a potential customer that he can accomplish his project much faster and cheaper by contacting a different company. Giving this advice will likely lead to the company's loss of the consumer's business.
Explanation:
It is correct.
Rainey Company's true cash balance at October 31 is $4,700. The following information is available for the bank reconciliation: Outstanding checks, $740 Deposits in transit, $540 Bank service charges, $110 The bank had collected an account receivable for Rainey Company, $1,200 The bank statement included an NSF check written by one of Ramsey's customers for $720. What was the unadjusted book balance at October 31
Answer: $4330
Explanation:
The unadjusted book balance at October 31 is calculated below:
True cash balance = $4700
Add: Bank service charge = $110
Add: NSF Check = $720
Less: Account receivable = $1200
Unadjusted book balance = $4330
Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 320, 300, 372, 332, and 400 respectively. Budgeted production in units for January, February, and March were 315, 318, and 362 respectively. Each unit requires 3 direct labor hours and Galactic’s hourly labor rate is $16 per hour. The company’s variable overhead is $5.00 per unit produced and its fixed overhead is $5,600 per month..
Required:
a. Determine Galactic's direct labor budget for the first quarter.
b. Determine Galactic's manufacturing overhead budget for the first quarter
Answer:
Direct labor costs= $47,760
total manufacturing overhead= $10,575
Explanation:
Giving the following information:
Production= 315 + 318 + 362= 995 units
Each unit requires 3 direct labor hours.
Hourly rate= $16
Variable overhead per unit= $5
Fixed overhead= $5,600
First, we need to calculate the direct labor hours:
Direct labor hours= 995*3= 2,985
Now, the direct labor costs:
Direct labor costs= $47,760
Finally, the total manufacturing overhead:
total manufacturing overhead= 5,600 + 5*995
total manufacturing overhead= $10,575
Journalize the following sales transactions for Straight Shot Archery using the periodic inventory system. E (Record debits first, then credits. Exclude explanations from journal entries.
Aug. 1 Sold $6,500 of equipment on account, credit terms are 1/10, n/30.
Aug. 8 Straight Shot received payment from the customer on the amount due from August 1, less the discount.
Aug. 15 Sold $3,100 of equipment on account, credit terms are n/45, FOB destination.
Aug. 15 Straight Shot paid $90 on freight out.
Aug. 20 Straight Shot negotiated a $500 allowance on the goods sold on August 15.
Aug. 24 Received payment from the customer on the amount due from August 15, less the allowance.
Answer:
Aug. 1
Debit :
Credit :
Aug. 8
Debit :
Credit :
Aug. 15
Debit :
Credit :
Aug. 15
Debit :
Credit :
Aug. 20
Debit :
Credit :
Aug. 24
Debit :
Credit :
Explanation:
Compute the cost of 1,000 gallons of each flavor of ice cream using the department allocation rates computed in requirement (b) if the number of machine-hours for 1,000 gallons of each of the three flavors of ice cream are as follows:
Strawberry Vanilla Chocolate
Direct labor (per 1,000 gallons) $766 $841 $1,141
Raw materials (per 1,000 gallons) 816 516 616
Required:
If the number of hours of labor per 1,000 gallons is 60 for strawberry, 70 for vanilla, and 100 for chocolate, compute the total cost of 1,000 gallons of each flavor using plantwide allocation.
Answer:
As you did not include the departmental allocation rate calculated or the question relating to it, I shall provide an allocation rate and you can relate this with your assignment.
Assume the allocation rate is $3.00
Labor, raw materials and overhead cost allocation hours are given in terms of 1,000 gallons already.
Cost of Strawberry:
= Direct labor + Raw materials + Overhead cost
= 766 + 816 + (60 hours * $3.00 allocation)
= 766 + 816 + 180
= $1,762
Cost of Vanilla:
= 841 + 516 + (70 * 3)
= 841 + 516 + 210
= $1,567
Cost of Chocolate:
= 1,141 + 616 + (100 * 3)
= 1,141 + 616 + 300
= $2,057