Answer:
Wolfpack Company
Balanced Budget Sheet as of July 1st:
Wolfpack Company
Balance Sheet as of June 30
Assets
Cash $ 92,500
Accounts receivable 63,000
Inventory 22,000
Buildings and equipment, net of depreciation 147,000
Total assets $ 324,500
Liabilities and Stockholders’ Equity
Accounts payable $ 36,800
Common stock 100,000
Retained earnings 187,700
Total liabilities and stockholders’ equity $ 324,500
Explanation:
a) Data
Wolfpack Company
Balance Sheet as of June 30
Assets
Cash $ 75,000
Accounts receivable 50,000
Inventory 30,000
Buildings and equipment, net of depreciation 150,000
Total assets $ 305,000
Liabilities and Stockholders’ Equity
Accounts payable $ 35,300
Common stock 100,000
Retained earnings 169,700
Total liabilities and stockholders’ equity $ 305,000
b) Accounts Receivable
Beginning balance = 50,000
Sales 90,000
Cash receipts:
30% (27,000)
June balance (50,000) Total receipts = $77,000
Ending balance 63,000
30% receipts = $27,000 ($77,000 - 50,000)
Sales = $27,000/30% = $90,000
Ending balance = $63,000 ($90,000 x 70%)
c) Accounts Payable
Beginning balance 35,300
Purchases 46,000
Payments:
20% (9,200)
June balance (35,300) Disbursement = $44,500
Ending balance (80%) 36,800
20% cash payment = $9,200 ($44,500 - 35,300)
Purchases = $46,000 (9,200/20%)
Ending balance = $36,800 ($46,000 x 80%)
d) Cost of goods sold:
Beginning Inventory 30,000
Purchases 46,000
Available for sale 76,000
Ending inventory (22,000)
Cost of goods sold 54,000
Depreciation $3,000
e) Income Statement for July
Sales 90,000
Cost of goods sold 54,000
Gross profit 36,000
Depreciation (3,000)
Selling & Admin (15,000)
Net Income $18,000
f) Retained Earnings:
Beginning balance $169,700
Net income 18,000
Ending balance $187,700
g( Cash balance:
Beginning balance $75,000
Cash collections 77,000
Cash disbursements:
Purchases (44,500)
Selling & admin (15,000)
Ending balance $92,500
"Diversity on attributes such as cultural background, race, and attitudes is associated with communication problems and ultimately poor team effectiveness." This statement represents the theory of the ________ approach to diversity in teams.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Diversity combining
b) Cooperative diversity
c) Surface-level
d) Similarity-attraction
And the correct answer is the option D: Similarity-attraction
Explanation:
To begin with, the concept known as "Similarity-attraction" refers to a theory that mainly establishes that people like and are attracted to each other regarding their similarities and not their differences, therefore that this theory holds that the people will find more confidance in teams where the others are similar to one and that team will have mor effectiveness than those who are full of members with differences.
Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help in organizing its inventory. Due to the steep learning curve required to use the new software, Garrison must decide between hiring two part-time college students or one full-time employee. Each college student would work 20 hours per week, and would earn $15 per hour. The full-time employee would work 40 hours per week and would earn $15 per hour plus the equivalent of $2 per hour in benefits. Employees are given two polo shirts to wear as their uniform. The polo-shirts cost Garrison $10 each. What are the sunk costs for Garrison?
Answer:
the $4,000 spent on a new software
Explanation:
Sunk costs are costs that the business has already incurred and they cannot be recovered no matter what decision they make.
in this case, the company must decide whether to hire 2 part time employees or only on full time employee. But no matter which decision they make, the money spent on the new computer software cannot be recovered. That is why the money spent on the new software is considered a sunk cost.
The city of Modesto, California needs more water. The town engineer has selected two plans for comparison: a gravity-based plan (divert water from the Sierras and pipe it by gravity to the city) and a pumping plan (pump water from a closer water source to the city). The pumping plant would be built in two stages, with half-capacity installed initially and the other half installed 10 years later.The analysis should assume a 40-year life, 10% interest on the municipal loan used to finance the project, and no salvage value of the project or equipment and the end of its life. Gravity Pumping Initial investment $2.8 million $1.4 millionAdditional investment in year 10 None $200,000Operation and maintenance $10,000/yr $25,000/yr Power cost Average the first 10 years None $50,000/yr Average the next 30 years None $100,000/yr(a) Use an annual cash flow analysis to find out which plan is preferred(b) What is the breakeven investment cost in year 10 to make these two projects equally preferable?
Answer:
a pumping plan (pump water from a closer water source to the city) is prefered.
the breakeven investment cost in year 10 is $1311018. 802 in order to make these two projects equally preferable
Explanation:
From the given information; we are to :
(a) Use an annual cash flow analysis to find out which plan is preferred
(b) What is the breakeven investment cost in year 10 to make these two projects equally preferable?
The two plans selected by the engineer are:
a gravity-based plan (divert water from the Sierras and pipe it by gravity to the city)
a pumping plan (pump water from a closer water source to the city).
In order to achieve that; let's find out the Present Value for each plan.
The Present Value (PV) of cost related to a gravity-based plan is:
[tex]PV = 2800000 +1000 a_{40} _{\urcorner}[/tex] at 10%
[tex]PV = 2800000 +97790.50[/tex]
PV = $2897790.5
The Present Value (PV) of cost related to a pumping plan
[tex]PV = 1400000+ \dfrac{200000}{(1+i)^{10}}+ 25000 a_{40}_{\urcorner}+5000 a_{10}_{\urcorner} + \dfrac{100000 a_{30} _{\urcorner}}{(1+i)^{10}}[/tex] at 10%
PV = 1400000 + 77108.66 + 244476.27 + 307228.36+363448.36
PV = $2392261.65
Thus; we consider the PV with lower value in order to determine which plan is prefered.
Thus; a pumping plan (pump water from a closer water source to the city) is prefered.
(b).
What is the breakeven investment cost in year 10 to make these two projects equally preferable
Let assume that I = the break even investment cost in year 10 for the prefered pumping plan.
Then;
$2897790.5 = $2392261.65 + (I/(1+i)¹⁰) at 10%
$2897790.5 - $2392261.65 = (I/(1+i)¹⁰) at 10%
$505528.85 = (I/(1+i)¹⁰) at 10%
0.3856 I = 505528.85
I = 505528.85/0.3856
I = $1311018.802
Thus; the breakeven investment cost in year 10 is $1311018.802 in order to make these two projects equally preferable
You short-sell 200 shares of Rock Creek Fly Fishing Co. today at $50 per share. If you want to limit your loss to $2,500, $ Blank 1. Fill in the blank, read surrounding text. is the maximum price per share you should place when you close your position
Answer:
So, the maximum price per share that should place is $62.5
Explanation:
As per given data
Current Price of stock = $50
Numbers of share = 200 shares
Limit of loss = $2,500
We will use the following formula to calculate the Maximum price of stock
Total Maximum loss possible = [ ( Prefix Price of share - Current price of share ) x Numbers of shares of stock ]
$2,500 = [ ( Prefix Price of share - $50 ) x 200 ]
$2500 / 200 = Prefix Price of share - $50
$12.5 + $50 = Prefix Price of share
$62.5 = Prefix Price of share
Therefore, thee order will be stopped at $62.50
Prepare a cost of goods manufactured schedule and a partial income statement based off the following information.
Cepeda Corporation has the following cost records for June 2017.
Indirect factory labor $4500 Factory utilities $400
Direct materials used $20,000 Depreciation, factory equipment $1,400
Work in process, 6/1/17 3,000 Direct labor $40,000
Work in process, 6/30/17 3,800 Maintenance, factory equipment $1,800
Finished goods, 6/1/17 5, 000 Indirect materials $2,200
Finished goods, 6/30/17 7,500 Factory manager’s salary $3,000
Instructions:
A) Prepare a cost of goods manufactured schedule for June 2017
B) Prepare an income statement through gross profit for June 2017 assuming sales revenue is $92,100.
Answer:
A. Cost of goods manufactured schedule for June 2017
Indirect factory labor $4,500
Factory utilities $400
Direct materials used $20,000
Depreciation, factory equipment $1,400
Maintenance, factory equipment $1,800
Factory manager’s salary $3,000
Indirect materials $2,200
Add Opening Work in Process Inventory $3,000
Less Closing Work in Process Inventory ($3,800)
Cost of goods manufactured $32,500
B. Income statement for June 2017
Sales Revenue $92,100
Less Cost of Sales
Opening Finished Goods Inventory $5,000
Add Cost of goods manufactured $32,500
Less Closing Finished Goods Inventory ($7,500) ($30,000)
Gross Profit $62,100
Explanation:
The cost of goods manufactured schedule include all manufacturing costs for the production period.
Income statement calculates the gross profit as Sales less Cost of Goods Sold.
Human resource management as a value-chain activity consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports:_________.
Answer:
Support Both individual primary and support activities as well as the entire value chain
Explanation:
VALUE CHAIN can be defined as the chain of activities that occur within a firm’s operations reason been that all products and services often pass through or go through all activities of the chain in which at each value chain activity the product or service tend to gains more value which is why Human resource management as a value-chain activity help to shown the components as having both primary activities and support activities, with all the human resource management functions of recruiting, hiring, training , development, retaining as well as growing right-fit the human resources as the important part of the support component.
Therefore Human resource management as a value-chain activity supports: BOTH INDIVIDUAL PRIMARY AND SUPPORT ACTIVITIES AND THE ENTIRE VALUE CHAIN.
Answer:
Support Both individual primary and support activities as well as the entire value chain
Explanation:
Wheat Corporation pays $ 528 comma 000 for 100 comma 000 shares to acquire 45% common stock of Grain Investments, Inc. on January 5, 2018. Wheat Corporation sells 12 comma 000 shares for $ 54 comma 000 on January 6, 2018. What is the correct journal entry for the transaction on January 6, 2018? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Answer:
Explanation:
Based on the information given in the question, the following can be deduced:
The purchase price per share will be:
= $528,000/100,000
= $5.28
The selling price per share will be:
= $54,000/12,000 = $4.50
The loss on the sale of the marketable securities will then be:
= 12,000 x (4.50 - 5.28)
= 12,000 × 0.78
= $9,360
The file has been attached.
During the first year of operations, Shapiro Tool accumulated the following manufacturing costs:
Raw materials purchased on account $12,000
Factory labor accrued 6,000
Incurred manufacturing overhead on account 4,000
Required:
Prepare separate journal entries for each manufacturing cost.
Answer:
Journal Entries are given below
Explanation:
DEBIT CREDIT
Raw Material purchase on account
Raw material $12,000
Account payable $12,000
Factory Labor Accrued
Direct labor $6,000
Wages payable $6,000
Manufacturing Overhead
Manufacturing Overhead $4,000
Account payable $4,000
The journal entries based on the details given are:
Date Account Title Debit Credit
XX-XXXX Raw materials inventory $12,000
Accounts Payable $12,000
Date Account Title Debit Credit
XX-XXXX Factory Labor $6,000
Factory Wages Payable $6,000
Date Account Title Debit Credit
XX-XXXX Manufacturing Overhead $4,000
Accounts Payable $4,000
Find out more at https://brainly.com/question/15610378.
_____ uses an iterative process that repeats the design, development, and testing steps as needed, based on feedback from users.
Answer: Rapid Application Development (RAD)
Explanation:
Rapid Application Development (RAD) is a method of developing software that tries more to develop a working model first and then adjusts as it receives feedback from users. It essentially is evolving every time because instead of planning for what is needed ahead of time, it simply makes a product and changes it as needed to fit the actual needs of the customers.
Answer: Rapid Application Development
Explanation: got it right on edgen
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $17 per share 10 years from today and will increase the dividend by 3.9 percent per year thereafter. If the required return on this stock is 12.5 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Price of the stock today = $67.15
Explanation:
The current price of the stock can be calculated using the constant growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock.
The formula for the price of the stock today under the constant growth model is,
P0 = D1 / (r - g)
Where,
D1 is the dividend expected to be paid next periodr is the required rate of returng is the growth rate in dividendsTo calculate the price today, we use the dividend for the next period. Thus, we will use D11 to calculate the price of the stock at Year 10 and will discount it back to today to calculate the price today.
P10 = 17 * (1+0.039) / (0.125 - 0.039)
P10 = $218.0617284
Price of the stock today = 218.0617284 / (1+0.125)^10
Price of the stock today = $67.15
Matt is passionate about Hollister. It is the only place he'll buy his clothes. He hasn't shopped anywhere else in the last few years and will often write positive reviews on his blog about Hollister's merchandise. From a strictly marketing perspective, Matt's positive reviews reflect
Answer:
Bias
Explanation:
Bias is a preference towards something do to ignorance. he is being biased becuase he never goes to other stores to see if they are better
Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrews’s product Adam currently has an awareness level of 80% . While an important product for Andrews, Adam’s promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Adam loses one-third of its awareness each year, what will Adam’s awareness level be next year?
Answer:
52.88%
Explanation:
The computation of the awareness level for next year is shown below
But before that we need to find out the ending awareness i.e Y which is
= 80% × (1 - 1 ÷ 3)
= 53.33%
Now awareness after the promotion is
= 53.33% + 26%
= 79.33%
Now the ending awareness i.e (Y +1) is
= 79.33% × 2 ÷ 3
= 52.88%
Hence, the awareness level next year is 52.88%
In the current year, Norris, an individual, has $52,000 of ordinary income, a net short-term Capital loss (NSTCL) of $9,800 and a net long-term capital gain (NLTCG) of $2,900. From his capital gains and losses, Norris reports:
Answer:
The answer is an offset against normal income of $3,000 and a NSTCL move forward of $3,900.
Explanation:
Solution
Given that:
The net short term capital loss=$9800
The net Long term capital gain=$2900
The net short term capital loss is =$6900
Thus
In this case, 3000 is allowed to be set off against ordinary income and the balance of (6900 - 3000) = 3900 can be moved forward or over.
Therefore Norris report implies that an offset against normal income of $3,000 and a NSTCL carry forward of $3,900.
A corporation produces a single product and has the following cost structure
Number of units produced each year 7000
Variable costs per unit
Direct materials 51
Direct labor 12
Variable manufacturing overhead 2
Variable selling and administrative expense 5
Fixed costs per year
Fixed manufacturing overhead.. 441000
Fixed selling expense 112000
The absorption costing unit product cost is:______.
A) $149 per unit
B) $65 per unit
C) $63 per unit
D) $128 per unit
Answer:
D) $128 per unit
Explanation:
The computation of the unit product cost using the absorption costing is shown below:
= Direct materials per unit + direct labor per unit + Variable manufacturing overhead per unit + fixed manufacturing overhead per unit
= $51 + $12 + $2 + ($441,000 ÷ 7,000 units)
= $128
We simply added the direct material, direct labor, variable manufacturing overhead per unit, and the fixed manufacturing overhead per unit
This exit strategy allows the entrepreneur an opportunity to buy back venture capital stock at cost and an additional premium. a. buyback b. retract clause c. IPO d. exit clause
Answer:
A. Buyback
Explanation:
The exit strategy that provides the entrepreneur an opportunity to purchase back venture capital stock at cost and an additional premium is a Buyback
A buyback is when an entrepreneur buys its own shares in the stock market. It is a repurchase and minimizes/decreases the number of shares outstanding, which causes earnings per share to be inflated and, in many cases, the stock value also.
At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: Beginning WIP direct materials $ 38 comma 000 Beginning WIP conversion costs $20,250 Costs of materials added $ 393 comma 100 Costs of conversion added $271,125 WIP beginning (50% for conversion) 20 comma 200 units Units started 120 comma 500 units Units completed and transferred out 106 comma 700 units WIP ending (60% for conversion) 34 comma 000 units What is the cost per equivalent unit for direct materials? (Round your final answer to the nearest cent.)
Answer:
$2.79 per unit
Explanation:
Given that :
Beginning WIP direct materials $ 38, 000
Beginning WIP conversion costs $20,250
Costs of materials added $ 393, 100
Costs of conversion added $271,125
WIP beginning (50% for conversion) 20,200 units
Units started 120,500 units
Units completed and transferred out 106,700 units
WIP ending (60% for conversion) 34,000 units
We are to find the cost per equivalent unit for direct materials? (Round your final answer to the nearest cent.)
Let first calculate the total equivalent units for direct materials which is:
= Units completed and transferred out + WIP ending
= (106,700 + 34000) units
= 140700 units
The cost per equivalent unit for direct materials = Costs of materials added (a)/ equivalent number of unit (b)
The cost per equivalent unit for direct materials = $ 393, 100/140700 unit
The cost per equivalent unit for direct materials = $2.79 per unit
Jones Corp. reported current assets of $199,000 and current liabilities of $140,000 on its most recent balance sheet. The working capital is:
Answer: $59000
Explanation:
The working capital is the capital that a business uses in its daily operations. It should be noted that the working capital is calculated as the difference between the current assets and the current liabilities.
From the question, we are told that
Jones Corp. reported current assets of $199,000 and current liabilities of $140,000 on its most recent balance sheet. Therefore, the working capital will be:
= $199,000 - $140,000
= $59,000
Branch Company provided the following information: Standard fixed overhead rate (SFOR) per direct labor hour $5.00 Actual fixed overhead $305,000 BFOH $300,000 Actual production in units 16,000 Standard hours allowed for actual units produced (SH) 64,000 Required Enter amounts as positive numbers and select Favorable (F) or Unfavorable(U). 1. Using the columnar approach, calculate the fixed overhead spending and volume variances. (1) (2) (3) Spending Volume 2. Using the formula approach, calculate the fixed overhead spending variance. $ 3. Using the formula approach, calculate the fixed overhead volume variance. $ 4. Calculate the total fixed overhead variance. $
Answer:
1. $5000 unfavorable
2. 3000 hrs favorable
Explanation:
Fixed Overhead spending variance
Budgeted fixed overhead - Actual fixed overhead
$300,000 - $305,000
= $5,000 unfavorable
Fixed Overhead volume variance
Actual volume = actual fixed overhead / Actual fixed overhead per hr
= $305,000 / $5
= 61000 hrs
(Budgeted volume - Actual volume) * budgeted rate
64000 hrs - 61000 hrs
= 3000 hrs favorable
Creighton Construction ordered $200,000 worth of steel beams for a new project. The invoice listed trade discounts of 30/20/15. The Net Price = $95,200
A. True
B. False
Answer:
A. True
Explanation:
The trade discounts of 30/20/15 indicate that the discounts are deducted one after the other from the list price.
First, you calculate the price after the 30% discount from $200,000:
200,000*(1-0.3)=200,000*0.7= $140,000
Now, you have to calculate the new value after the 20% discount from $140,000:
140,000*(1-0.2)=140,000*0.8= $112,000
Then, you have to calculate the new value after the 15% discount from $1112,000:
112,000*(1-0.15)=112,000*0.85=$95,200
According to this, the Net Price is $95,200 and the statement is true.
2. Think about the pros and cons associated with the concept of market pricing. What have your personal experiences been in relation to fairness and equity of your own compensation where you have worked
Explanation:
The market pricing system is an approach that differs from the formal salary structure because it is not an organizational process where the levels of remuneration are assigned according to a certain function.
In this wage definition strategy, the remuneration is calculated according to a present value, determined by the market itself and defined by conducting surveys whose objective is to analyze the service pricing strategies practiced by competitors.
This strategy can guarantee several significant advantages for an organization, such as increasing competitiveness by establishing a remuneration structure based on market value.
However, if this strategy is not duly reviewed periodically, what can happen is that there are flaws in the calculation of the current value, which generates an outdated salary system for employees and the company.
Which of the following industries is most likely to exhibit the characteristic of free entry? a. nuclear power b. municipal water and sewer c. dairy farming d. airport security
Answer:
c. dairy farming
Explanation:
Free entry can be defined as the situation in which business firms such as sellers of goods or service providers can enter into the market freely and start selling to consumers.
This ultimately implies that, there are no legal barriers or just a minimum barrier, if any for new firms starting the same business as others.
Hence, dairy farming is the industry which is most likely to exhibit the characteristic of free entry.
A diary farming is one of such industries that allows new agents to come into the business without any barrier because it simply involves the production of essential commodities such as milk, beef etc which are usually required on a large scale in an economy.
At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $100,000. Blue's current E & P is $60,000, and at the end of the year, it distributes $200,000 ($100,000 each) to its equal shareholders, Pam and Jon. Pam's stock basis is $11,000, Jon's stock basis is $26,000. How is the distribution treated for tax purposes?
Answer:
Pam and Jon's dividend income = $80,000 each
[ ($100000 Accumulated E&P + $60000 current E&P ) / 2] = $80,000
Statement of distribution for shareholders for tax purpose
Pam Jon
Total distribution $100,000 $100,000
Less: Dividend income $80,000 $80,000
$20,000 $20,000
Less: Stock basis $11,000 $26,000
Capital gain $9,000 $0
Therefore, Pam has a taxable gain of $9000 which reduces the stock basis to $0, whereas Jon has not any taxable gain but the stock basis has reduced to $6000 [$26000 - $20000]
A firm's collection policy, i.e., the procedures it follows to collect accounts receivable, plays an important role in keeping its average collection period short, although too strict a collection policy can reduce profits due to lost sales.
a) true
b) false
Answer:
a) true
Explanation:
The average collection period could be computed by
= Total number of days in a year ÷ account receivable turnover ratio
It determines the number of days in which the customers pay the amount to the company.
If the payment is made within the prescribed time or early so it shows the goods performance else it reflects the worst performance
Therefore according to the given situation, if there is strictness in collection policy which ultimately reduced profit due to lost sales plays a very important role in shorten the collection period
During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. In addition, factory overhead charged to production was $32,000. The entry to record the direct labor costs is a. Work in Process150,000 Wages Payable150,000 b. Wages Payable150,000 Work in Process150,000 c. Wages Payable175,000 Work in Process175,000 d. Work in Process175,000 Wages Payable175,000
Answer:
d. Work in Process 175,000 Wages Payable 175,000
Explanation:
Production Orders and General factory expenses are all manufacturing costs and are included in Work In Process Cost for Inventory Valuation. Since the wages have not been paid yet, a Liability account - Wages Payable has to be credited in total of amount due.
Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs 0.60 15,000 units Sprockets 0.20 50,000 units Additional information about the company follows:
a. Hubs require $39 in direct materials per unit, and Sprockets require $18.
b. The direct labor wage rate is $12 per hour.
c. Hubs are more complex to manufacture than Sprockets and they require special equipment.
d. The ABC system has the following activity cost pools:
Estimated Activity Activity Cost Pool (Activity Measure) Overhead Cost Hubs Sprockets Total Machine setups (number of setups) $ 28,980 140 112 252 Special processing (machine-hours) $ 92,000 4,600 0 4,600 General factory (organization-sustaining) $ 89,000 NA NA NA
Required:
1. Compute the activity rate for each activity cost pool.
2. Determine the unit product cost of each product according to the ABC system. (Round intermediate calculations and final answers to 2 decimal places.)
Answer:
Fogerty Company
1. Computation of the activity rate for each activity cost pool:
a. Machine setups = Total machine setups overhead costs/total machine setups
= $28,980/252 = $115 per machine set up
b. Special processing = Total special processing overhead costs/total machine hours
= $92,000/4,600 = $20 per machine hour
c. General factory = $89,000/65,000 = $1.369 per unit produced
2. Determination of the unit product cost of each product using ABC system:
Hubs Sprockets
Total production costs $825,640 $1,101,340
Units produced 15,000 50,000
Unit product cost = $55.04 $22.03
Explanation:
a) Data and Calculations:
Activity Cost Pool Overhead Hubs Sprockets Total
(Activity Measure) Costs
Machine setups
(number of setups) $ 28,980 140 112 252
Special processing
(machine-hours) $ 92,000 4,600 0 4,600
General factory
(organization-sustaining) $ 89,000 NA NA NA
Direct labor-hours per unit 0.60 0.20
Total units produced 15,000 50,000 65,000
Direct materials required per unit $39 $18
Direct labor wage rate per hour $12 $12
b) Total direct labor-hours 9,000 10,000 19,000
c) Activity rate for each activity cost pool:
1. Machine setups = Total machine setups overhead costs/total machine setups
= $28,980/252 = $115 per machine set up
2. Special processing = Total special processing overhead costs/total machine hours
= $92,000/4,600 = $20 per machine hour
3. General factory = Total general factory overhead costs divided by total units produced
= $89,000/65,000 = $1.3692 per unit produced
d) Overhead Allocation:
Hubs Sprockets Total
Machine setups $16,100 $12,880 $28,980
Special processing 96,000 0 96,000
General factory 20,540 68,460 89,000
Total overhead costs $132,640 $81,340 $213,980
e) Total costs per product
Hubs Sprockets Total
Direct materials costs $585,000 $900,000 $1,485,000
Direct labor costs $108,000 $120,000 $228,000
Total overhead costs $132,640 $81,340 $213,980
Total production costs $825,640 $1,101,340 $1,926,980
Units produced 15,000 50,000
Unit product cost = $55.04 $22.03
f) Activity based costing system (ABC) is a costing technique that accumulates according to activity pools and allocates costs based on the activities carried out. For example, the general factory overhead costs, could be allocated based on direct labour hours, machine hours, or total units of production. It calculates the allocation rate based on the accepted activity pool.
Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/book ratio? a. 1.48 b. 1.63 c. 1.34 d. 1.41 e. 1.55
Answer:
C. 1.34
Explanation:
Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/book ratio?
To calculate the ratio:
stock price at the end of last year was $33.50 divided by value per share of $25.00
= 33.50/25.0
= 1.34
Jessica is very proud of herself for having $5,000 in her savings account that pays 4 percent interest. She currently has a balance of $2,300 on her credit card account that charges 21 percent interest. Jessica thinks she is making a wise financial decision by keeping her money in her savings account instead of paying off her credit card balance. What financial principle from Chapter 1 would you use to give her good advice
Missing options:
A. Taxes affect personal financial decisions.
B. The time value of money.
C. Mind games, financial personality, and your money
D. Both A and C.
Answer:
D. Both A and C.
Explanation:
Jessica earns a small interest on her savings account and she will need to include that earned interest in her tax returns. Her credit card also charges her an interest, which is much higher, but that interest is not tax deductible. So besides paying a lot of interest for money that she shouldn't owe, the small interest received will decrease since she will pay taxes for it.
Besides the tax effect on the interests that she earns, the interest charged by the credit card is much higher. Assuming Jessica only pays 10% marginal tax rate:
total interest earned by the $2,300 in savings account = $2,300 x 4% x (1 - 10%) = $82.80 total interest paid for $2,300 owed to her credit card company = $2,300 x 21% = $483.Suppose that a country has no public debt in year 1 but experiences a budget deficit of $50 billion in year 2, a budget deficit of $30 billion in year 3, a budget surplus of $20 billion in year 4, and a budget deficit of $2 billion in year 5. a. What is the absolute size of its public debt in year 5?
Answer:
= $62 billion
Explanation:
Since the country started year 1 with no public debt,
The country's debt at the end of year 5 = $50 (deficit year 2) + $30 (deficit year 3) - $20 (surplus year 4, negative deficit) + $2 (deficit year 5)).
= $62 billion
The country's debt at the end of year 5 = $62 billion
Public debt is the sum of deficits and surpluses (negative deficits) over time.
Travelwell manufactures and sells luggage and briefcases. Their marketing research indicates that durability is the attribute that consumers most desire in their luggage and briefcases. Travelwell now emphasizes durability in all of their promotional efforts. This strategy is intended to build brand equity.
a) true
b) false
Answer:
a) true
Explanation:
When we are talking about building brand equity, we are talking about increasing our customers' perception and value of our brand or company's name. Building brand equity emphasizes the brand itself over any specific product or service that our company offers. E.g. Rolls Royce is the most luxurious car manufacturer in the world, and they built brand equity upon luxury in all its vehicles, not one specific car.
In this case, Travelwell is emphasizing a characteristic that should apply to all its product line, not just one specific type of luggage.
Under NASAA rules, if a customer wishes to trade a margin account prior to returning the signed margin agreement, such an action is:
Answer:
Explanation:
This action is only permitted if the customer returns the signed margin agreement promptly. Since a margin agreement is an agreement between a brokerage and a client governing a margin account and allows the client to borrow from the brokerage in order to buy securities. Without agreeing to all the details in this contract the individual cannot trade on a margin account or borrow money.