You want a mountain cabin built for weekend trips, vacations, to host family, and perhaps eventually to retire in. After discussing the project with a local contractor, you receive an estimate that the total construction cost of your 2000 ft^2 lodge will be $150,000. The percentage of costs is broken down as follows: (a) What is the cost per square foot of the 2000 ft lodge? (b) If you arc also considering a. 4000 ft layout option, estimate your construction costs if: i. All cost items (in the table) change proportionately to the size increase. ii. The first two cost items do not change at all: all others are proportionate.
Answers
Answer:
(a) What is the cost per square foot of the 2000 ft lodge?
construction cost per sq foot = $150,000 / 2,000 = $75 per square foot(b) If you arc also considering a. 4000 ft layout option, estimate your construction costs if: i. All cost items (in the table) change proportionately to the size increase.
total construction costs for a 4,000 sq ft layout = $150,000 x 2 = $300,000 since all costs vary proportionally to the size of the cabinii. The first two cost items do not change at all: all others are proportionate.
total construction costs = (23% x $150,000) + (77% x $300,000) = $34,500 + $231,000 = $265,500
Related Questions
Question 3
When a court hears a breach of contract dispute, its job is to:
Answers
2. Why is defining activities a process of project schedule management instead of project scope management
Answers
Answer:
Explanation:
Project schedule management is the allocation of timeframe to the task s to be done for a project to be successful while project scope management show the work that needs to be done.
Defining activities is a process of project schedule management, because it simply concentrates on how and when a task will be carried out while in project scope management l, the focus is on the work that will be performed on a project.
The smartphone market has been dominated by Apple, but recently the Droid has been able to leverage Google's information services into market gains, while Blackberry, known for its secure business-oriented network, has attempted to become more attractive with a "friendlier" interface. At the same time, a number of less capable fringe firms are emerging. Suppose an economist analyzes this industry as follows:
ECONOMIST: Each firm brings its own distinct capabilities to its product design, with each product design appealing to a different segment of the market. Apple is known for the aesthetics of its products; Google is known for its ability to manage information effectively; and Blackberry is known for its more secure data network. Each of these distinct capabilities is likely to be sustainable for some time and will be a source of competitive advantage for each. Fringe firms, on the other hand, do not appear to be able to replicate these capabilities; thus, they are more homogeneous and more likely to compete on price
True or False: This analysis is consistent with the industrial organization
a) True
b) False
Answers
Answer:
Smartphone Market
Apple, Google, and Blackberry:
This analysis is consistent with the industrial organization model:
a) True
Explanation:
Industrial organization is the application of the economic theory of price, the structure of markets, and the strategic moves by firms to industrial analysis. According to investopedia.com, "Industrial organization is a field of economics dealing with the strategic behavior of firms, regulatory policy, antitrust policy and market competition."
The industrial organization model is a way of explaining the forces outside an organization that exert influences on a firm's strategic actions. It is based on the assumptions that decision-makers act rationally, have mobile resources that they control, and that pressures and constraints are imposed by the external environment.
How much would you need to deposit in an account now in order to have $4000 in the account in 5 years? Assume the account earns 3% interest compounded monthly.
Answers
Answer:
PV= $3,443.48
Explanation:
Giving the following information:
Future value= $4,000
Interest rate= 0.03/12= 0.0025
Number of months= 5*12= 60
To calculate the initial investment required, we need to use the following formula:
PV= FV/(1+i)^n
PV= 4,000/(1.0025^60)
PV= $3,443.48
Basic FLows, Equivalent Units
Thayn Company produces an arthritis medication that passes through two departments: Mixing and Tableting. Thayn uses the weighted average method. Data for February for Mixing is as follows: BWIP was zero; EWIP had 36,000 units, 50% complete; and 420,000 units were started. Tabletingâs data for February is as follows: BWIP was 24,000 units, 20% complete; and 12,000 units were in EWIP, 40% complete.
Required:
1. For Mixing, calculate the (a) number of units transferred to Tableting, and (b) equivalent units of production.
2. For Tableting, calculate the number of units transferred out to Finished Goods.
3. CONCEPTUAL CONNECTION Suppose that the units in the mixing department are measured in ounces, while the units in Tableting are measured in bottles of 100 tablets, with a total weight of eight ounces (excluding the bottle). Decide how you would treat units that are measured differently, and then repeat Requirement 2 using this approach.
Answers
Answer:
1.(a) Number of units transferred to Tableting, 384,000 ounces
(b) Equivalent units of production. Materials 420,000 , Conversion 402,000
2. For Tableting, the number of units transferred out to Finished Goods. 396,000 ounces
3. Units Transferred to Finished Goods 396000 ounces = 49500 bottles or 4,950,000 tablets.
Explanation:
Thayn Company
Weighted Average Method
Mixing
First we calculate the number of units transferred out.
BWIP zero;
Units Started 420,000
Total Units 420,000
The total units remain the same . They are obtained either by adding BWIP and units started or by adding EWIP or units transferred.
EWIP 36,000 units,
Units Transferred 384,000
Total Units 420,000
Equivalent Units
Particulars Units % of Completion Equivalent Units
Mat. Conversion Materials Conversion
Units Transferred 384,000 100 100 384,000 384,000
EWIP 36,000 100 50 36000 18000
Equivalent Units 420,000 402,000
Tableting
The total units remain the same . They are obtained either by adding BWIP and units started or by adding EWIP or units transferred.
BWIP 24,000 units
Units Received 384,000
Total Units 408,000
EWIP 12000 units
Transferred To FG 396,000
Total Units 408,000
3. CONCEPTUAL CONNECTION
Given
8 ounces = 100 Tablets contained in 1 bottle
408000 ounces = 408000/8 = 51000 bottles of 100 tablets each.
Total Tablets = 51000*100= 5100,000 tablets
Units Transferred to Finished Goods 396000 ounces which is equal to 396000/8= 49500 bottles or 4,950,000 tablets.
Number of units transfer is 434,000 units
Work in progress and Ending product:Computation:
1) a) Number of units transfer = Opining units - Ending work in progress
Number of units transfer = 470,000 - 36,000
Number of units transfer = 434,000 units
b) Equivalent units = Units completed and transferred + 50% of Ending work in progress
Equivalent units = 434,000 + 50% of 36,000
Equivalent units = 434,000 + 18,000
Equivalent units = 452,000 units
2) Number unit transferred out to finished goods = Beginning work in progress + units transferred from Mixing department - Ending work in progress
Number unit transferred out to finished goods = 34,000 + 434,000 - 12,000
Number unit transferred out to finished goods = 456,000 units.
3) Number of bottles' = 456,000 / 100
Number of bottles' = 4560 bottles
Weight transferred = 4560 × 8
Weight transferred = 36480 ounce
Units transferred = 4560 units
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Given a risk-free rate of return of 3.7 percent and a market risk premium of 8.8 percent, one of these stocks has an expected return that matches the market’s required rate of return. For the other stock, the expected return does not equal the market’s required rate of return. Expected Stock Beta Return A 0.65 6.80 B 1.22 14.44% For the incorrectly priced stock, according to the SML/CAPM at what rate of return would that stock’s price then be in equilibrium with the market?
Answers
Answer:
9.42%
Explanation:
According to the CAPM,
market required rate of return = risk free rate + (beta x market risk premium)
for stock A :
3.7% + (0.65 X 8.8%) = 9.42%
The market required rate of return isn't equal to the expected return based on the calculation.
for stock B :
3.7% + (1.22 X 8.8%) = 14.44%
for stock B, they both match
The market required rate of return will be 9.42%.
According to the information given, the market required rate of return for stock A will be calculated thus:
= Risk free rate + (Beta × Market risk premium)
= 3.7% + (0.65 × 8.8%)
= 9.42%
The market required rate of return for stock B will be calculated thus:
= Risk free rate + (Beta × Market risk premium)
= 3.7% + (1.22 × 8.8%)
= 14.44%
For stock A, the market required rate of return isn't equal to the expected return while it's equal for stock B.
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A $120 temporary difference existed for the Orland Company, caused by accelerated tax depreciation on 12/31/17. The difference will reverse evenly over the next three years. Tax Rates are 30% in 2017, 25% in 2018, and 20% in 2019 and beyond. Pretax book income in 2017 is $1,000. What is 12/31/17 Income Tax Payable?
Answers
Answer: $252
Explanation:
The temporary tax difference exists because the company was depreciating assets at a rate different from that of the Tax authority. As such, the difference will reverse over 3 years but the difference will need to be accounted for in current 2017 income to ascertain how much is to be paid as tax.
Taxable Income = 1,000 - 120
= $840
Income Tax Payable = 840 * 30%
= $252
In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base related to
Answers
Answer: c. machine hours.
Explanation:
In reference to Automated Operations, the Activity base that is usually used to in determining a pre-determined overhead rate are Machine hours.
It is standard practice to relate overhead to the Direct Labor involved in the production of a commodity and since in this case the direct Labor mostly consists of Machines (Automated) then it is best to relate activities to the Machine hours involved instead.
In the money creation process, the simple money multiplier assumes that banks hold no excess reserves. What is the consequence of a bank holding excess reserves?
Answers
Answer:
If banks hold excess reserves, then the money multiplier will be smaller.
Explanation:
It is easier to understand using an example:
required reserve rate = 5%
money multiplier = 1 / 5% = 20
if $100 are injected in to the economy and they are deposited in the banking system, the money supply will increase by $100 x 20 = $2,000. But this calculation only works if banks lend 100% of the loanable funds, but if instead banks only lend $90, instead of $95 ($100 x 95%), then the money multiplier will be 1 / 10% = 10. In this case, the money supply will only increase by half
Raven Corporation owns three machines that it uses in its business. It no longer needs two of these machines and is considering distributing them to its two shareholders as a property dividend. All three machines have a fair market value of $20,000 each. Their basis is as follows: Machine A, $27,000; Machine B, $20,000; and Machine C, $12,000. The corporation has asked you for advice.
A. If Raven distributes Machine A, the result will be a_______loss of $_______.
B. If Raven distributes Machine B, the result will be_______of $______.
C. If Raven distributes Machine C, the result will be a______of $______.
D. Therefore, to________on Machine A, Raven should consider______Machine A. Raven should consider distributing Machine B because there will be______on the distribution. To______on Machine C, Raven should consider_______Machine C.
Answers
Answer:
A.If Raven distributes Machine A, the result will be a NONDEDUCTIBLE LOSS of $7,000
B. If Raven distributes Machine B, the result will be NO GAIN OR LOSS OF $0
C. If Raven distributes Machine C, the result will be a TAXABLE GAIN of $8,000
D.Therefore to PRESERVE THE LOSS on Machine A, Raven should consider SELLING Machine A. Raven should consider distributing Machine B because there will be NO RECOGNIZED GAIN OR LOSS on the distribution. To AVOID RECOGNIZING THE GAIN on Machine C, Raven should consider NEITHER SELLING NOR DISTRIBUTING Machine C
Explanation:
A. If Raven distributes Machine A, the result will be a NONDEDUCTIBLE LOSS of $7,000
Calculation as
(20,000 – 27,000) =-$7,000
B. If Raven distributes Machine B, the result will be NO GAIN OR LOSS OF $0
Calculated as :
(20,000-20,000)=$0
C. If Raven distributes Machine C, the result will be a TAXABLE GAIN of $8,000
Calculated as:
(20,000-12,000)=$8,000
D.Therefore to PRESERVE THE LOSS on Machine A, Raven should consider SELLING Machine A. Raven should consider distributing Machine B because there will be NO RECOGNIZED GAIN OR LOSS on the distribution. To AVOID RECOGNIZING THE GAIN on Machine C, Raven should consider NEITHER SELLING NOR DISTRIBUTING Machine C
Tom and Suri decide to take a worldwide cruise. To do so, they need to save $15,000. They plan to invest $2,500 at the end of each year for the next six years to earn 9% compounded annually. Calculate the future value of the investment. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)
Answers
Answer: $18,808.25
Explanation:
There is a constant cashflow of $2,500 making this an annuity.
The future value of the $2,500 paid every year for 6 years at 9% will be;
Future value of Annuity = 2,500 * Future Value of Annuity factor, 6 periods, 9%) (refer to attached table)
= 2,500 * 7.5233
= $18,808.25
The future value of the amount is more than the amount they would require.
Ken works in a U.S. based pharmaceutical company that sells antibiotics at a low cost to several African countries. He later learns that most of these drugs are expired antibiotics that have been repackaged by the company. Ken immediately informs one of his friends, a federal agent, regarding his company’s illegal activities. Which of the following statements is true of the given scenario?A) There are no implications because the shelf-life of pharmaceuticals is typically much longer than as dated.B) Ken’s constitutional right to freedom of speech would protect him from any form of retaliation by his employer.C) Ken would receive no protection since no comprehensive whistle-blowing law protects the right to free speech.D) Ken would be protected by law from retaliation by his employer.
Answers
Answer: D) Ken would be protected by law from retaliation by his employer.
Explanation:
Ken would be protected from any retaliation from his employer by the Sarbanes-Oxley Act under section §1514A of the act that protects Whistleblowers.
The act directly prohibits the discharging, demotion, suspension, harassment, or in any other type discriminate against a a whistleblower.
Ken in his actions acted as a Whistleblower and as such would be afforded due protection by the law.
Several years after reengineering its production process, King Corporation hired a new controller, Christine Erickson. She developed an ABC system very similar to the one used by King's chief rival. Part of the reason Erickson developed the ABC system was because King's profits had been declining, even though the company had shifted its product mix toward the product that had appeared most profitable under the old system. Before „ adopting the new ABC system, the company had used a plantwide overhead rate, based on direct labor hours developed years ago. For the upcoming year, King's budgeted ABC manufacturing overhead allocation rates are as follows:
Activity Allocation Base Activity Cost allocation rate
Materials handling Number of parts $4.00 per part
Machine setup Number of setups $375.00 per setup
Insertion of parts Number of parts $28.00 per part
Finishing Finishing direct labor hours $54.00 per hour
The number of parts is now a feasible allocation base because King recently purchased bar-coding technology. King produces two wheel models: Standard and Deluxe Budgeted data for the upcoming year are as follows:
Standard Delux
Parts per wheel 8 10
Setups per 1,000 wheels 20 20
Finishing direct labor hours per wheel 2 3.5
Total direct labor hours per wheel 2.6 3.4
The company's managers expect to produce 1,000 units of each model during the year.
Required:
a. Compute the total budgeted manufacturing overhead cost for the upcoming year.
b. Compute the manufacturing overhead cost per wheel of each model using ABC.
c. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system.
Answers
Answer:
King Corporation
a. Computation of total budgeted manufacturing overhead cost:
Activities Standard Deluxe Total
Materials handling (number of parts):
Standard = 8 x $4 x 1,000 $32,000
Deluxe = 10 x $4 x 1,000 $40,000 $72,000
Machine setup (number of parts):
= 20 x $375 $7,500 $7,500 $15,000
Insertion of parts (number of parts):
Standard = 8 x $28 x 1,000 $224,000
Deluxe = 10 x $28 x 1,000 $280,000 $504,000
Finishing (direct labor hours):
Standard = 2 x $54 x 1,000 $108,000
Deluxe = 3.5 x $54 x 1,000 $189,000 $297,000
Total $371,500 $516,500 $888,000
b. Computation of the manufacturing overhead cost per wheel of each model using ABC:
Standards = $371,500/1,000 = $371.50
Deluxe = $516,500/1,000 = $516.50
c. Computation of the company's traditional plantwide overhead rate to determine manufacturing overhead cost per wheel:
Overhead rate = $888,000/6,000 = $148
Manufacturing overhead cost per wheel:
Standard = $148 x 2.6 = $384.80
Deluxe = $148 x 3.4 = $503.20
Explanation:
a) Calculations:
Total overhead cost = $888,000
Allocation based on total direct labor hours per wheel
Plantwide overhead rate:
Total labor hours:
Standard 2.6 x 1,000 = 2,600 hours
Deluxe 3.4 x 1,000 = 3,400 hours
Total labor hours = 6,000 (2,600 + 3,400)
= $888,000/6,000 = $148 per direct hour
b) According to wikipedia.com, "Activity-based costing is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. This model assigns more indirect costs into direct costs compared to conventional costing."
All of the following are economic resources, or factors of production EXCEPT Group of answer choices land. entrepreneurship. physical capital. money.
Answers
Answer:
The correct answer is:
Money
Explanation:
Economic resources or factors of production are the inputs required for the creation of goods or services. They are divided into four categories:
Land: includes physical land and any other natural resources needed for production. Examples are water, natural gas, oil etc. Its reward is rent
Labour: This refers to human efforts contributed to the production of goods or services. Its reward is wages
Capital: this refers to machinery, tools and buildings that are used by humans for production. Its reward is interest
Entrepreneurship: refers to someone who combines the other three factors; land, labour and capital, to earn a profit. Its reward is profit
Money is not a factor of production because it is not directly involved in production of goods or services. However, it facilitates the processes of production like enabling purchase of machinery, payment of wages etc.
A nation's central bank makes an open market purchase of 20-year bonds. What is the short-run effect on the nation's economy
Answers
Answer:
The answer is:
when a nation's central bank makes an open market purchase of 20-year bonds, short-run effect is that the quantity of money in circulation increases, interest rates are low because the nation's commercial banks have more money to lend. Households and businesses are motivated to borrow money because of low rates
Explanation:
This is a monetary tool - open-market operation which is a situation in which when the central bank purchases securities inorder to increase the money supply and sells securities to decrease the money supply.
So when a nation's central bank makes an open market purchase of 20-year bonds, short-run effect is that the quantity of money in circulation increases, interest rates are low because the nation's commercial banks have more money to lend. Households and businesses are motivated to borrow money because of low rates.
This is usually done to stimulate the economy i.e to stop the economy from slowing down.
Chang Industries has 2,000 defective units of product that have already cost $14 each to produce. A salvage company will purchase the defective units as they are for $5 each. Chang's production manager reports that the defects can be corrected for $6 per unit, enabling them to be sold at their regular market price of $21. The incremental income or loss on reworking the units is:
Answers
Answer:
$20,000 income
Explanation:
Computation
Particulars Amount
Sale Value of corrected product= $42,000.00
(2,000 * 21)
Less : Costs of Correction = ($12,000.00)
(2000 * 6)
Less : Opportunity costs - Salvage Value Lost = ($10,000.00)
(2,000 * 5)
Incremental Revenue= $20,000.00
In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each year, what period would the first revision and update to the January through December 2017 budget cover
Answers
Answer: April 1, 2017 through March 31, 2018.
Explanation:
The company employs continuous budgeting on a quarterly basis. This means that they make budgets for the year in quarters and move with those quarters.
The first revision therefore for the year 2017 will happen on the first day of the second quarter which is April 1. On this date the first quarter will be removed from the budget because it has been passed. However, since the budget always has to be in total of a year, another quarter is included which will be the next quarter on the calendar, the January 1 2018 to the March 31st 2018 quarter.
The period will thus cover April 1, 2017 through March 31, 2018.
Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted cash balance per books on May 31. Cash balance per books, 5/31 $5,400 Deposits in transit 375 Notes receivable and interest collected by bank 650 Bank charge for check printing 40 Outstanding checks 2,400 NSF check 140
Answers
Answer:
$5,870
Explanation:
Preparation for Rodgers Company Bank Reconciliation Statement
Cash balance per books, 5/31 $5,400
Add :Notes receivable and interest collected by bank $650
Total $6,050
Less: Bank charge for check printing ($40)
NSF check ($140)
Adjusted Cash Balance $5,870
Therefore the Adjusted Cash Book for Rodgers Company Bank Reconciliation Statement will be $5,870
You have just won the lottery and will receive a lump sum payment of $22.93 million after taxes. Instead of immediately spending your money, you plan to deposit all of the money into an account that will earn 5.11 percent. If you make equal annual withdrawals for the next 35 years, how much can you withdraw each year starting exactly one year from now
Answers
Answer:
The amount you can withdraw each year is $1,419,926
Explanation:
In order to calculate the amount you can withdraw each year starting exactly one year from now we would have to make the following calculation:
amount you can withdraw each year=r*PV/1-(1+r)∧-n
According to the given we have the following:
PV=$22,930,000
r=5.11%
n=35
Therefore, amount you can withdraw each year=5.11%*$22,930,000/1-(1+5.11%)∧-35
amount you can withdraw each year=$1,171,723/0.8252
amount you can withdraw each year=$1,419,926
The amount you can withdraw each year is $1,419,926
Obama drives up miles-per-gallon requirements Emissions from all new vehicles must be cut from 354 grams to 250 grams. To meet this new standard, the price of a new vehicle will rise by $1,300. Source: USA Today, May 20, 2009 What is the opportunity cost of reducing the emission level by 1 gram?
Answers
Answer:
$12.5 per gram
Explanation:
Opportunity cost is the cost which is:
Future related costCash flow in natureIncremental Cost or DifferentialIn simple words, opportunity cost is the benefit lost due to given up another best alternative.
To reduce the pollution level from 354 to 250 gram, the price of new vehicle will increase by $1300.
Hence
The increase in price per gram = $1,300 / (354 - 250) = $12.5 per gram
This is the opportunity cost per gram increase in Carbon dioxide emission which the companies will have to bear if they don't opt to environmental free vehicles.
An investor must choose between two bonds:
Bond A pays $80 annual interest and has a market value of $800. It has 10 years to maturity.
Bond B pays $85 annual interest and has a market value of $900. It has two years to maturity.
a. Compute the current yield on both bonds.
b. Which bond should he select based on your answer to part a?
c. A drawback of current yield is that it does not consider the total life of the bond. For example, the approximate yield to maturity on Bond A is 11.36 percent. What is the approximate yield to maturity on Bond B?
d. Has your answer changed between parts b and c of this question in terms of which bond to select?
Answers
Answer:
a. Compute the current yield on both bonds.
Current yield = Annual coupon payment / current market price of bond
Bond A current yield = $80 / $800 = 0.1
Bond B current yield = $85 / $900 = 0.09
b. Which bond should he select based on your answer to part a?
Bond A, because it has a higher current yield.
What is the approximate yield to maturity on Bond B?
Approximate Yield to Maturity (YTM) = [C+ (F-P) / n] / [(F+P) / 2]
Where:
C = Coupon payment
F = Face value
P = Price
n = years to maturity
Because the face value is not specified in the question, we will assume is the same as the price.
Bond B YTM = [85 + (900-900) / 2] / [(900+900) / 2]
= 0.09
d. Has your answer changed between parts b and c of this question in terms of which bond to select?
Under the assumption that the price and face value of Bond b are the same, we can see that the YTM and the current yield are the same, so the choice of the bond (bond A) has not changed.
However, if the face value was higher or lower than the price, the YTM would be different to the current yield, for that reason, it is always best to check Yield to Maturity instead of current yield when choosing which bond to invest in.
Costs that remain constant in total dollar amount as the level of activity changes are called Group of answer choices
Answers
Answer: Fixed Costs
Explanation:
Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of peanut butter each quarter. The following data are available for the third quarter of 2017. Total fixed manufacturing overhead $120,000 Fixed selling and administrative 20,000 Sales price per case 34 Direct materials per case 16 Direct labor per case 7 Variable manufacturing overhead per case 3 Required a. Compute the cost per case under both absorption costing and variable costing. Absorption $Answer Variable $Answer b. Compute net income under both absorption costing and variable costing. Do not use a negative sign with your answers. SMUCKERS Absorption Costing Income Statement For the Third Quarter of 2017 Sales Answer Answer Answer Answer Answer Answer Answer Net income Answer SMUCKERS Variable Costing Income Statement For the Third Quarter of 2017 Sales Answer Answer Answer Answer Answer Fixed expenses: Answer Answer Selling and administrative Answer Answer Net income Answer
Answers
Answer:
a:Total Variable Costs $26
a:Total Manufacturing Costs = $ 30
b:Net Income Variable Costing $100,000
b: Net Income Absorption Costing $ 100,000
Explanation:
Smuckers Manufacturers
Costs per case under Variable Costing
Direct materials per case 16
Direct labor per case 7
Variable manufacturing overhead per case 3
Total Variable Costs $26
Costs per case under Absorption Costing
Direct materials (30,000*16) 480,000
Direct labor (30,000*7) 210,000
Variable manufacturing overhead (30,000*3) 90,000
Total Variable Costs 780,000
Total fixed manufacturing overhead $120,000
Total Manufacturing Costs $ 900,000
Total Manufacturing Costs per Case= $ 900,000/ 30,000= $ 30
The difference between the variable and absorption costing is that the product costs include variable and fixed costs in absorption costing. But in variable costing the product costs include only variable costs.
SMUCKERS
Variable Costing Income Statement
For the Third Quarter of 2017
Sales (30,000*34) 1020,000
Direct materials (30,000*16) 480,000
Direct labor (30,000*7) 210,000
Variable manufacturing overhead (30,000*3) 90,000
Total Variable Costs 780,000
Contribution Margin 240,000
Fixed Expenses 140,000
Total fixed manufacturing overhead $120,000
Fixed selling and administrative 20,000
Net Income 100,000
In this case the net income under both variable and absorption costing does not change because the units produced are units sold. No cost is charged to ending inventory under absorption costing.
SMUCKERS
Absorption Costing Income Statement
For the Third Quarter of 2017
Sales (30,000*34) 1020,000
Direct materials (30,000*16) 480,000
Direct labor (30,000*7) 210,000
Variable manufacturing overhead (30,000*3) 90,000
Total fixed manufacturing overhead $120,000
Total Manufacturing Costs 900,000
Gross Profit 120,000
Fixed Expenses 20,000
Fixed selling and administrative 20,000
Net Income 100,000
Which is an example of an electronic storefront?
O A. A hair salon
B. An online bidding service
C. A taco stand
D. A pet store
Answers
Answer:
B......................
An online bidding service is an example of an electronic storefront. Hence, option B is correct.
What is meant by electronic storefront?For business owners who want to host a website that promotes their products and services and enables for online sales from clients, an electronic storefront is an eCommerce alternative.
Three of the greatest examples of contemporary companies are Amazon, J. Crew, and Etsy. They all employ a headless CMS, a pricing and promotions engine, and a custom search engine.
With a headless CMS like fabric XM, retailers can instantly update and modify their shop. A platform-based online shopping centre that houses a variety of online shops. With the use of the internet, all transactions—from choosing products to purchasing and selling goods and services—can be completed.
Thus, option B is correct.
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The common stock of Flavorful Teas has an expected return of 17.96 percent. The return on the market is 14 percent and the risk-free rate of return is 4.1 percent. What is the beta of this stock
Answers
Answer:
Beta= 1.4
Explanation:
The Capital Asset pricing Model (CAPM) can be used to determined the beta. According to the Capital Asset pricing Model the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate (treasury bill rate), β= Beta, Rm= Return on market.
Using this model,
17.96%= 4.1% + β× (14% - 4.1%)
β× (9.9 %)= 17.96% - 4.1%= 13.86%
β× (9.9 %)= 13.86%
β= 1.4
Beta= 1.4
A customer buys 100 shares of ABC stock at $44 and sells 1 ABC Jan 45 Call at $5. Subsequently, the market price of ABC goes to $59 and the call contract is exercised. The customer has a:
Answers
Answer:
loss = $1,000
Explanation:
the customer will receive $5 (call price) + $44 (call price) = $49 for every share that he/she owns.
since the market price was $59, then the customer lost $59 - $49 = $10 for every share that he/she owned, resulting in a total loss = $10 per share x 100 shares = $1,000
A call option gives the buyer the option to purchase a stock at a set price during a specific time frame.
McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information:
20Y5
Retail $249,570
Wholesale $366,685
Total Revenue $616,255
20Y4
Retail $265,500
Wholesale $324,500
Total Revenue $590,000
Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers
Answers
Answer:
McHale Company
Horizontal Analysis of the segments
For the years 20Y4 and 20Y5
20Y5 20Y4 Difference amount Difference Percent
Retail $249,570 $265,500 $15,930 6.0%
Wholesale $366,685 $324,500 $42,185 13.0%
Total revenue $616,255 $590,000 $58,115 3.85%
Difference Percent Working
Retail= $15,930 / $265,500 * 100 = 6%
Wholesales = $42,185 / $324,500 * 100 = 13%
Total revenue = $58,115 / $590,000 * 100 = 3.85%
On June 1, 2021, Duncan Inc. purchased equipment for $74,000. The equipment
had an estimated life of 10 years, an estimated residual value of $8,000,
and was expected to be used to produce 120,000 units over its life. During
2021, the equipment was used to produce 11,000 units and during 2022 it was
used to produce 19,000 units.
Assume the company employs the units of production method of depreciation.
Calculate the amount of accumulated depreciation on the equipment shown in
the company's December 31, 2022 balance sheet.
Answers
Answer:
The amount of accumulated depreciation on the equipment shown in
the company's December 31, 2022 balance sheet is $16,500.
Explanation:
Depreciation Expense (Units of Production) = (Cost - Residual Value) × (Period`s Production / Total Estimated Production)
2021.
Depreciation Expense = ($74,000 - $8,000) × ( 11,000 units / 120,000 units )
= $6,050
2022
Depreciation Expense = ($74,000 - $8,000) × ( 19,000 units / 120,000 units )
= $10,450
Accumulated Depreciation - December 31, 2022
2021 = $6,050
2022 = $10,450
Total = $16,500
In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and understated ending inventory by $10,000. Determine how this error effects each of the following. (a) Year 1 cost of goods sold. Overstates Year 1 cost of goods sold. Understates Year 1 cost of goods sold. None of the above. (b) Year 1 net income. Understates Year 1 net income Overstates Year 1 net income None of the above. (c) Year 2 cost of goods sold. Understates Year 2 cost of goods sold. Overstates Year 2 cost of goods sold. None of the above.
Answers
Answer:
a. Overstates Year 1 cost of goods sold.
b. Understates Year 1 net income
c. Understates Year 2 cost of goods sold
Explanation:
a. The formula for Calculating the Cost of Goods sold is;
Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.
If the closing inventory is understated, it will reduced the amount being subtracted from Purchases and Opening inventory which would means that Cost of Goods sold will be overstated.
b. The Cost of goods sold is deducted from sales to give Gross profit. If Cost of goods is overstated, it will reduce Gross Profit higher than it should. A lower Gross Profit equates to a lower Net Income.
c. Going by the formula in a;
Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.
In Year 2, the understated Year 1 closing stock will become the understated Year 2 Opening stock. With the opening stock understated, the Cost of goods will be understated as well because Opening stock is meant to increase Cost of goods sold as the formula shows. If it is understated, the amount that it will add will be understated as well.
a. Cost of goods sold should be Overstates for Year 1
b. The net income for the year 1 should be Understated
c. The cost of goods sold for year 2 should be Understated.
Understated and overstated of net income& cost of goods sold:a.
We know that
Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.
In the case when the ending inventory is understated so this decreased the amount that should be deducted from the purchase and the beginning inventory due to this there is overstated of the cost of goods sold.
b.
We know that
Gross profit = Sales - cost of goods sold
In the case when there is overstated of the cost of goods sold so it decreased the gross profit due to this the net income should be lower.
c. G
For the year 2, the closing stock i.e. understated in the year 1 should be the opening stock for the year 2. Due to the understated of the beginning stock, the cost of the goods sold should be understated
Learn more about stock here: https://brainly.com/question/24471789
Webby Inc. is a web development company. Webby’s monthly production function for developing websites is given in the table below. Webby pays $4,000 a month in rent for office space and equipment. It pays each programmer $3,000 a month. There are no other production costs. Fill in the table of production costs.
Answers
Answer and Explanation:
The computation of the filling of the given table for the production cost is shown in the attachment below:
As we know that
Total cost = Fixed cost + variable cost
Average fixed cost = fixed cost ÷ websites
Average Variable cost = Variable cost ÷ websites
Therefore the average total cost is
= Average fixed cost + average variable cost
The marginal cost is
= Change in total cost ÷ change in quantity
These formulas are used to complete the table as given below.