Answer:
Curiosity. Technology develops at different rates and in different ways around the world.
A Sense of Impatience. Entrepreneurs need impatience in order to recognize inefficiencies
Sociability. It’s important for any entrepreneur to have a good network of like-minded people to
Explanation:
elb Company currently manufactures 50,000 units per year of a key component for its manufacturing process. Variable costs are $2.95 per unit, fixed costs related to making this component are $67,000 per year, and allocated fixed costs are $61,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit. Calculate the total incremental cost of making 50,000 units and buying 50,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier
Answer: Please refer to Explanation
Explanation:
Incremental Cost of Making Product
Variable costs are $2.95 per unit and 50,000 units are to be made. Total Variable Cost is therefore,
= 2.95 * 50,000
= $147,500
Fixed costs associated with the production are$ 67,000 so added tl the variable costs is,
= 147,500 + 67,000
= $214,500
$214,500 is the cost making the product.
Cost of Buying Product
Component can be bought for $3.90 per unit. 50,000 units to be bought gives,
= 50,000 * 3.9
= $195,000
Cost of buying is $195,000
Decision
Company should buy the component as it spends less in buying it than I making it.
Note - Allocated fixed costs were not included in calculation because they will be there regardless of the decision. Hence the term, incremental costs.
Answer:
elb Company
a) Incremental Cost of making 50,000 units:
Variable costs = $2.95 x 50,000 = $147,500
Avoidable fixed costs = $67,000
Total = $214,500
b) Incremental Cost of buying 50,000
Buy-in costs =- $3.90 x 50,000 = $195,000
c) The company should buy this component from the outside supplier.
Explanation:
In make or buy decisions, only variable and avoidable costs are taken into consideration. Unavoidable fixed costs are sunk costs which must be incurred irrespective of the choice made.
Therefore, the unavoidable allocated fixed costs of $61,500 should not be taken into consideration. Afterall, no matter the decision, it would still be incurred and allocated.
The required reserve ratio is 0.05. If the Federal Reserve buys $1,000,000 worth of bonds from a bond dealer who has her account at Bank XYZ above and she deposits the entire $1,000,000 into a checking account at Bank XYZ, what will be the new required and excess reserves for this bank (assume no new loans are made)? (Remember that required reserves are found by applying the required reserve ratio to the amount of total checkable deposits.)
Missing information:
total deposits in bank XYZ = $4,000,000
total reserves = $3,800,000
Answer:
the required reserve = $250,000
excess reserves = $4,550,000
Explanation:
required reserve ratio = 5%
the Fed buys $1,000,000 worth of bonds
the $1,000,000 are deposited entirely in bank XYZ
total checkable deposits will increase to $5,000,000
the required reserve = $5,000,000 x 5% = $250,000
excess reserves = total checkable deposits - total loans - required reserves = $5,000,000 - $200,000 - $250,000 = $4,550,000
A translation adjustment (or translation gain) that is a consequence of translation of a functional currency that is different from the reporting currency should be:_______.
A. Included in net income in the period in which it occurs.
B. Deferred and amortized over a period not to exceed 40 years.
C. Deferred until a subsequent year when a loss occurs and offset it against that loss.
D. Included as a separate item in the equity section of the balance sheet.
Answer:
d
Explanation:
wild guess
The five-step procedure designed by ethics consultant Leonard H. Bucklin of Corporate-Ethics. US for investigating and solving ethics problems is known as a. the Bucklin Method. b. the Ethical Investigation Protocol. c. Business Process Pragmatism. d. Ethical Decision Determination.
The correct answer is C. Business Process Pragmatism
Explanation:
Leonard H. Bucklin was a recognized American attorney mainly known for his texts about laws, ethics, and related topics. In the field of Corporate-Ethics Bucklin designed a method with five different stages to deal with ethical problems. This method was known as the Business Process Pragmatism as it was a systematic approach to deal with ethical issues in business. Moreover, this method involved inquiring about the problem, discussing important aspects and possible solutions, deciding or selecting the best solution, justifying the solution, and evaluating the outcome.
Bass Accounting Services expects its accountants to work a total of 26 comma 000 direct labor hours per year. The company's estimated total indirect costs are $ 390 comma 000. The company uses direct labor hours as the allocation base for indirect costs. What is the indirect cost allocation rate? A. $ 18.00 per hour B. $ 30.00 per hour C. $ 15.00 per hour D. $ 150.00 per hour
Answer:
C) $ 15.00 per hour
Explanation:
total labor hours 26,000 per year
total indirect costs $390,000
if the company allocates indirect costs according to labor hours employed, the cost allocation rate should be:
$390,000 / 26,000 = $15 per direct labor hour
This means that for every labor hour employed, $15 will be allocated as indirect costs, e.g. a client requires 50 labor hours per year and $750 (= 50 x $15) in indirect costs.
Answer:
The correct answer is option (c) $15 per hour
Explanation:
Solution
Recall that:
Expected wok for accountants = 26,000
The company estimated total indirect costs - 390,000
The next step is to find the allocation base cost for indirect cost.
Now,
The indirect labor cost is calculated as follows:
indirect cost allocation rate:
= Total indirect costs/Labor hours
= $390,000/26,000
= $15 per hours
Who has the comparative advantageLOADING... in producing oil? A. Norway has a comparative advantage producing oil because its opportunity cost of producing oil is lower. B. Neither country has a comparative advantage producing oil because their opportunity costs of producing oil are equal. C. The United Kingdom has a comparative advantage producing oil because its opportunity cost of producing oil is lower. D. Norway has a comparative advantage producing oil because it can produce more oil. E. The United Kingdom has a comparative advantage producing oil because it can produce more oil.
Answer:
The answer is option D) Norway has a comparative advantage producing oil because it can produce more oil.
Explanation:
Norway currently produces 1,398 thousand barrels of crude oil per day. At this capacity, it can produce more oil in comparison to United Kingdom that produces 1000 thousand barrels per day.
This statistics gives Norway a comparative advantage over United Kingdom.
Also comparing the consumption rate for both countries with Norway having a population of 5,421,241 which is far less than 66, 650,000 of the United Kingdom, shows that Norway will have enough to cater for her citizens as well as for exports.
The following units of an item were available for sale during the year: Beginning inventory 8,100 units at $180 Sale 5,300 units at $300 First purchase 15,000 units at $185 Sale 13,000 units at $300 Second purchase 16,000 units at $192 Sale 14,000 units at $300 The firm uses the perpetual inventory system, and there are 6,800 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? $ b. What is the total cost of the ending inventory according to LIFO?
Answer:
a. $1,305,600
b. $1,258,000
Explanation:
FIFO - Assumes that the first goods received by the business will be first ones to be delivered to the final customer
FIFO Inventory = 6,800 units × $ 192 = $1,305,600
LIFO - Assumes that the last goods purchased are the first ones to be issued to the final customer
LIFO Inventory = 2,800 units × $180 = $ 504,000
2,000 units × $185 = $ 370,000
2,000 units × $ 192 = $ 384,000
Total = $1,258,000
HI Corporation is considering the purchase of a machine that promises to reduce operating costs by the same amount for every year of its 5-year useful life. The machine will cost $211,980 and has no salvage value. The machine has a 14% internal rate of return. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using the tables provided. Required: What are the annual cost savings promised by the machine? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Answer:
Annual savings = 61,746.
Explanation:
The Net Present Value (NPV) is the difference between the present value (PV) of cash outflows and PV of cash inflow
At the internal rate of return the PC of annual cash savings will be equal to the investment cost
Initial cost = 211980
PV = annual cash savings = A× (1- (1+r)^(-n)/ r
A=? r-internal rate of return, 14%, n-number of years- 5
211980 = A (1- (1.14)^(-5)/ 0.14
211,980 = A× 3.433080969
A= 211,980/3.43308
A= 61746.28619
Annual savings = 61,746.
On March 15, American Eagle declares a quarterly cash dividend of $0.045 per share payable on April 13 to all stockholders of record on March 30.
Required:
Record American Eagle's declaration and payment of cash dividends for its 226 million shares. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. $5.5 should be entered as 5,500,000).)
Answer and Explanation:
The journal entries are shown below:
On March 15
Dividend Dr $10,170,000 (226 million shares × $0.045 per share)
To Dividend payable $10,170,000
(Being the dividend is declared)
For recording this we debited the dividend as it increased the balance of dividend and credited the dividend payable as it increased the liabilities
On March 30
No journal entry is required for recording of dividend
On April 13
Dividend payable $10,170,000
To cash $10,170,000
For recording this we debited the dividend payable as it decreased the liabilities and credited the cash as it reduced the assets
(Being the dividend payable is recorded)
Opera Corp uses the periodic inventory system. For the current month, the beginning inventory consisted of 7,200 units that cost $10 each. During the month, the company made two purchases: 4,000 units at $13 each and 12,000 units at $13.50 each. Checkers also sold 12,900 units during the month. Using the average cost method, what is the amount of cost of goods sold for the month
Answer:
$159,057
Explanation:
The computation of cost of goods sold is shown below:-
Total cost of goods available for sale = (7,200 × $10) + (4,000 × $13) + (12,000 × $13.50)
= $72,000 + $52,000 + $162,000
= $286,000
Total units = 7,200 + 4,000 + 12,000
= 23,200
Average cost per unit = Total cost of goods available for sale ÷ Total units
= $286,000 ÷ 23,200
= $12.33
So,
Cost of Goods sold = Sold units during the month × Average cost per unit
= 12,900 × $12.33
= $159,057
Therefore for computing the cost of goods sold for the month we simply applied the above formula.
Suppose that output (Y ) in an economy is given by the following aggregate production function: Yt = Kt + Nt where Kt is capital and Nt is the population. Furthermore, assume that capital depreciates at rate δ and that savings is a constant proportion s of income. You may assume that δ > s. 1. Suppose that the population remains constant. Solve for the steady-state level of capital per worker. 2. Now suppose that the population grows at rate n. Solve for the steady-state level of capital per worker. 3. Based on your answer to part 2) above, solve for the steady-state growth rates (in terms of n) of the following: (a) capital per worker (b) output per worker (c) capital (d) output
Answer:
Check the explanation
Explanation:
Yt = Kt + Nt
Taking output per worker, we divide by Nt
Yt/Nt = Kt/Nt + 1
yt = kt + 1
where yt is output per worker and kt is capital per worker.
a) With population being constant, savings rate s and depreciation rate δ.
ΔKt = It - δKt
dividing by Nt, we get
ΔKt/Nt = It/Nt - δKt/Nt ..... [1]
for kt = Kt/Nt, taking derivative
d(kt)/dt = d(Kt/Nt)/dt ... since Nt is a constant, we have
d(kt)/dt = d(Kt/Nt)/dt = (dKt/dt)/Nt = ΔKt/Nt = It/Nt - δKt/Nt = it - δkt
thus, Capital accumulation Δkt = i – δkt
In steady state, Δkt = 0
That is I – δkt = 0
S = I means that I = s.yt
Thus, s.yt – δkt = 0
Then kt* = s/δ(yt) = s(kt+1)/(δ )
kt*= skt/(δ) + s/(δ)
kt* - skt*/(δ) = s/(δ)
kt*(1- s/(δ) = s/(δ)
kt*((δ - s)/(δ) = s/(δ)
kt*(δ-s)) = s
kt* = s/(δ -s)
capital per worker is given by kt*
b) with population growth rate of n,
d(kt)/dt = d(Kt/Nt)/dt =
= [tex]\frac{\frac{dKt}{dt}Nt - \frac{dNt}{dt}Kt}{N^{2}t}[/tex]
= [tex]\frac{dKt/dt}{Nt} - \frac{dNt/dt}{Nt}.\frac{Kt}{Nt}[/tex]
= ΔKt/Nt - n.kt
because (dNt/dt)/Nt = growth rate of population = n and Kt/Nt = kt (capital per worker)
so, d(kt)/dt = ΔKt/Nt - n.kt
Δkt = ΔKt/Nt - n.kt = It/Nt - δKt/Nt - n.kt ......(from [1])
Δkt = it - δkt - n.kt
at steady state Δkt = it - δkt - n.kt = 0
s.yt - (δ + n)kt = 0........... since it = s.yt
kt* = s.yt/(δ + n) =s(kt+1)/(δ + n)
kt*= skt/(δ + n) + s/(δ + n)
kt* - skt*/(δ + n) = s/(δ + n)
kt*(1- s/(δ + n)) = s/(δ + n)
kt*((δ + n - s)/(δ + n)) = s/(δ + n)
kt*(δ + n -s)) = s
kt* = s/(δ + n -s)
.... is the steady state level of capital per worker with population growth rate of n.
3. a) capital per worker. in steady state Δkt = 0 therefore, growth rate of kt is zero
b) output per worker, yt = kt + 1
g(yt) = g(kt) = 0
since capital per worker is not growing, output per worker also does not grow.
c)capital.
kt* = s/(δ + n -s)
Kt*/Nt = s/(δ + n -s)
Kt* = sNt/(δ + n -s)
taking derivative with respect to t.
d(Kt*)/dt = s/(δ + n -s). dNt/dt
(dNt/dt)/N =n (population growth rate)
so dNt/dt = n.Nt
d(Kt*)/dt = s/(δ + n -s).n.Nt
dividing by Kt*
(d(Kt*)/dt)/Kt* = s/(δ + n -s).n.Nt/Kt* = sn/(δ + n -s). (Nt/Kt)
[tex]\frac{sn}{\delta +n-s}.\frac{Nt}{Kt}[/tex]
using K/N = k
[tex]\frac{s}{\delta +n-s}.\frac{n}{kt}[/tex]
plugging the value of kt*
[tex]\frac{sn}{\delta +n-s}.\frac{(\delta + n -s)}{s}[/tex]
n
thus, Capital K grows at rate n
d) Yt = Kt + Nt
dYt/dt = dKt/dt + dNt/dt = s/(δ + n -s).n.Nt + n.Nt
using d(Kt*)/dt = s/(δ + n -s).n.Nt from previous part and that (dNt/dt)/N =n
dYt/dt = n.Nt(s/(δ + n -s) + 1) = n.Nt(s+ δ + n -s)/(δ + n -s) = n.Nt((δ + n)/(δ + n -s)
dYt/dt = n.Nt((δ + n)/(δ + n -s)
dividing by Yt
g(Yt) = n.(δ + n)/(δ + n -s).Nt/Yt
since Yt/Nt = yt
g(Yt) = n.(δ + n)/(δ + n -s) (1/yt)
at kt* = s/(δ + n -s), yt* = kt* + 1
so yt* = s/(δ + n -s) + 1 = (s + δ + n -s)/(δ + n -s) = (δ + n)/(δ + n -s)
thus, g(Yt) = n.(δ + n)/(δ + n -s) (1/yt) = n.(δ + n)/(δ + n -s) ((δ + n -s)/(δ + n)) = n
therefore, in steady state Yt grows at rate n.
We can consider the case where wine producers in Chile ask the government to tax imported wines from France with a tax. They consider that this tax would increase both the State's tax revenue and employment in the Chilean wine industry. What kind of economic argument is this in relation to international trade? Do you agree or not with the argument presented by wine producers in Chile? If the state government adopts this position, does it consider it to be good economic policy or not? Briefly explain your answers using the concepts of international trade discussed in your Textbook.
Answer:
If the Government executes taxes on lavender trade from France (therefore creating French wine beloved than national wine), the local wine manufacturers would take pleasure in such a strategy because it would create French wine much economical (since it'll value extra) and therefore doubtless growth in local wine drinking. This might additional because additional service chances within the national wine region and conjointly rise the Government's government revenue (income from taxes on the wine trade). Such a procedure is hidden wanting i.e. an advocate procedure in expressions of Global trade wherever the govt. is protective the benefits of the native wine manufacturers by heavy imports.
If the Chilean wine trade isn't terribly inexpensive in relations of value, feature etc. and remains at an emergent phase then it's vital to safeguard the local trade from global competition.
Costs of $6,500 were incurred to acquire goods and make them ready for sale. The goods were shipped to the buyer (FOB shipping point) for a cost of $350. Additional necessary costs of $700 were incurred to acquire the goods. No other incentives or discounts were available. What is the buyer’s total cost of merchandise inventory?
Answer:
Total cost of merchandise inventory = $7,550
Explanation:
The total cost of merchandise inventory, is the sum total of all the costs incurred in the acquisition of the goods, and it is calculated as shown below:
cost of goods = $6,500
cost of shipping = $350
Additional necessary cost = $700
∴ Total cost of merchandise inventory = cost of goods + cost of shipping + Additional necessary cost
Total cost of merchandise inventory = 6,500 + 350 + 700 = $7,550
General cultural factors driving global business are
A. the rise of a global workforce, global economies of scale, and global production and operations.
B. growth of a global village spurred by television, the Internet, and computerization.
C. the rise of the global workforce, political stability, and a global knowledge base.
D. global communication and transportation technologies, a global knowledge base, and global social norms.
E. the development of global markets, political stability, and a global workforce.
Answer:
D. global communication and transportation technologies, a global knowledge base, and global social norms.
Explanation:
Global business management process involves identifying, analyzing and planning a business at the international level.
General cultural factors driving global business are global communication and transportation technologies, a global knowledge base, and global social norms.
When starting up a business with the intention to break into the global market successfully, it is important and necessary to ensure the cultural factors driving a business are well managed.
The business should ensure it creates a medium for effective communication by using both the traditional and digital media such as television, radio, billboards, blogs etc. Efficient means of transportation or logistics should be developed for smooth export of their goods and services.
Also, having a well informed knowledge of their niche is key to the success of the business.
Lastly, the business should abide with the global social norms.
How are foreign exchange rates determined
Answer:
Currency prices can be determined in two main ways: a floating rate or a fixed rate. A floating rate is determined by the open market through supply and demand on global currency markets. ... 5 Therefore, most exchange rates are not set but are determined by on-going trading activity in the world's currency markets.
Answer: market forces for. a p e x
Explanation:
just did that bro
Your aunt is about to retire, and she wants to sell some of her stock and buy an annuity that will provide her with income of $53,000 per year for 30 years, beginning a year from today. The going rate on such annuities is 7.25%. How much would it cost her to buy such an annuity today
Answer:
Present Value= $641,494.12
Explanation:
Giving the following information:
Cash flow= $53,000 per year
Number of years= 30 years
Interest rate= 7.25%
First, we need to calculate the final value of the annuity:
FV= {A*[(1+i)^n-1]}/i
A= annual flow
FV= {53,000*[(1.0725^30)-1]} / 0.0725
FV= $5,237,351.32
Now, we can determine the present value:
PV= FV/(1+i)^n
PV= 5,237,351.32/ (1.0725^30)
PV= $641,494.12
Melrose Company has an investment in bonds issued by Roscoe Industries that are classified as available-for-sale securities. The bonds were purchased at par. At December 31, Year 2, the Investment in Roscoe bonds account had a debit balance of $200,000, representing its amortized cost, and its Fair value adjustment account had a credit balance of $5,000. On December 31, Year 3, the amortized cost of those bonds had not changed, but the fair value of those bonds was $225,000.
Which of the following will be included in the related journal entry dated December 31, Year 3?
a. Debit to Fair value adjustment for $20,000.
b. Credit to Fair value adjustment for $20,000.
c. Debit to Fair value adjustment for $30,000.
d. Credit to Fair value adjustment for $30,000.
Answer:
c. Debit to Fair value adjustment for $30,000.
Explanation:
The Journal entry is shown below:-
On Dec 31,
Fair value adjustment account Dr, $30,000 ($225,000 + $5,000 - $200,000)
To Unrealized holding gain on available for sale securities $30,000
(Being unrealized holding gain is recorded)
Here we debited the fair value adjustment account as it decreased the liabilities and we credited the unrealized holding gain on available for sale securities as it increased the gain so the same is recorded .
You should meet with your academic adviser at least once a __________.
Group of answer choices
Answer:
Once a Semester
Explanation:
Advisors can help you decide if you want to minor in something, and what the requirements are. They can ensure you're odds of graduating in four years is on track, or give you special permissions to take certain classes.
Brainliest for anyone if they get this CORRECT.
Answer:
UR FACE
Explanation:
magic
Answer:
6
Explanation:
Find the percentage for 24% of 25.
That's how I did mine.
• Why has the stock market declined so much?
We need a passage or something. not just the question
Margie Company produces a single product and has provided the following data concerning its most recent month of operations: Selling price $ 88 Units in beginning inventory 0 Units produced 5,200 Units sold 4,900 Units in ending inventory 300 Variable costs per unit: Direct materials $ 12 Direct labor $ 23 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $ 161,200 Fixed selling and administrative expense $ 63,700 The total contribution margin for the month under variable costing is:
Answer:
$225,400
Explanation:
The computation of total contribution margin under variable costing is shown below:-
Sales (4900 × $88) $431,200
Less:Variable cost
Direct material (4900 × $12) ($58,800)
Direct labor (4900 × 23) ($112,700)
Variable manufacturing overhead
(4900 × 2) ($9,800)
Variable selling and administrative
expenses (4900 × $5) ($24,500)
Total variable expenses ($205,800)
Contribution margin $225,400
Therefore the total contribution margin under variable costing is $225,400
To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 12% discount. During May, employees purchased 10,000 shares at a time when the market price of the shares on the New York Stock Exchange was $12 per share. KL will record compensation expense associated with the May purchases of:
Answer:
Dr Cash 105,600
Dr Compensation Expense 14,400
Cr Common Stock 10,000
Cr Paid-In Capital – Excess of Par 110,000
Explanation:
KL Corp Journal entry
Dr Cash 105,600
Dr Compensation Expense 14,400 (10,000*12*12%)
Cr Common Stock 10,000 (10,000*1)
Cr Paid-In Capital – Excess of Par 110,000
(10,000*(12-1))
The following account balances are taken from the December 31, 2018, financial statements of ABZ Advertising Company. The company uses accrual basis accounting. Advertising Revenue $ 58,322 Cash 51,907 Accounts Receivable 8,426 Interest Expense 2,530 Accounts Payable 5,500 Operating Expenses 47,241 Deferred Revenue 1,476 Equipment 22,746 Income Tax Expense 2,916 The following activities occurred in 2019: Performed advertising services on account, $69,000. Received cash payments on account, $13,400. Received deposits from customers for advertising services to be performed in 2020, $4,500. Made payments to suppliers on account, $5,500. Incurred $56,450 of operating expenses; $48,950 was paid in cash and $7,500 was on account and unpaid as of the end of the year. What is the balance of Accounts Receivable at December 31, 2019
Answer:
Check the explanation
Explanation:
Particulars Amt
Opening Cash 51907
Add: Cash Received (13400+4500) 17900
Less: Payment to supplier 5500
Less: Operating Expenses Paid 48950
Closing Cash Balance 15357
Grab Manufacturing Co. purchased a 10-ton draw press at a cost of $183,000 with terms of 4/15, n/45. Payment was made within the discount period. Shipping costs were $4,300, which included $270 for insurance in transit. Installation costs totaled $12,900, which included $3,700 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the 10-ton draw press is: Multiple Choice $192,880. $190,880. $196,380. $197,880.
Answer:
$192,880
Explanation:
According to the scenario, computation of the given data are as follow:-
Cost of 10-ton draw press is $183,000 and if the cost paid before 15 days, there will be a 4% discount.
Discount Value is
= Cost of Draw Press × Discount Rate
= $183,000 × 4%
= $7,320
Total Capitalized Amount is
= (Total Cost of Draw Press - Discount Value) + Shipping Cost + Installation Cost
= ($183,000 - $7,320) + $4,300 + $12,900
= $175,680 + $4,300 + $12,900
= $192,880
According to the analysis, the capitalized cost of the 10-ton draw press is $192,880.
Because any cost which incurred for using an asset should be capitalized.
Southern Rim Parts estimates its manufacturing overhead to be $318,000 and its direct labor costs to be $1,060,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $65,000 for Job 301, $90,000 for Job 302, and $175,000 for Job 303. For the year, actual manufacturing overhead was $399,000 and total direct labor cost was $834,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates.Required:a. How much overhead was assigned to each of the three jobs, 301, 302, and 303?b. What was the over- or underapplied manufacturing overhead for year 1?
Answer:
a. Job 301 = $19,500
Job 302 = $27,000
Job 303 = $52,500
b. Overhead applied for the year = $250,200
Under-applied overhead = $148,800
Explanation:
a. The computation of overhead was assigned to each of the three jobs, 301, 302, and 303 is shown below:-
Overhead application rate = Budgeted Overhead ÷ Application Base
Application base = Budgeted Overhead ÷ Budgeted Direct Labor costs
= $318,000 ÷ $1,060,000
= 0.3
Overhead assignment to jobs = Budgeted rate × Labor Cost
Job 301
= 0.3 × $65,000
= $19,500
Job 302
= 0.3 × $90,000
= $27,000
Job 303
= 0.3 × $175,000
= $52,500
b. The computation of over- or underapplied manufacturing overhead for year 1 is shown below:-
Overhead applied for the year = Total direct labor cost × Overhead rate
= $834,000 × 0.3
= $250,200
Under-applied overhead = Actual overhead - Applied overhead
= $399,000 - $250,200
= $148,800
Starbuck Corporation had a net income of $250,000 and paid dividends to common stockholders of $50,000 in Year 1. The weighted average number of shares outstanding in Year 1 was 50,000 shares. Starbuck Corporation's common stock is selling for $40 per share on the New York Stock Exchange. Starbuck's dividend payout ratio for Year 1 is _____. (Round your answer to three decimal places.)
Answer:
20%
Explanation:
The payout ratio can either computed as dividend per share divided by earnings per share or total dividends paid to common stock holders divided by net income for the year.
using the latter formula,the payout ratio of Starbuck Corporation is computed thus:
dividend payout ratio=dividends paid/net income
dividends paid to common stock holders were $50,000
net income for Starbuck for the year was $250,000
dividend payout ratio=$50,000/$250,000=20%
A Company manufactures coffee tables. The Company has a policy of adding a 20% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month: Output units 30,000 tables Machine-hours 6000 hours Direct manufacturing labor-hours 10,000 hours Direct materials per unit $50 Direct manufacturing labor per hour $12.00 Variable manufacturing overhead costs $322,500 Fixed manufacturing overhead costs $1,200,000 Product and process design costs $600,000 Marketing and distribution costs $1,290,000 For long-run pricing of the coffee tables, what price will most likely be used by the Company
Answer:
$201.30
Explanation:
Direct materials = $50
Total Direct manufacturing labor = $12.00 * 10,000 = $120,000
Variable manufacturing overhead costs = $322,500
Fixed manufacturing overhead costs = $1,200,000
Product and process design costs = $600,000
Marketing and distribution costs = $1,290,000
Total cost apart from direct material = $120,000 + $322,500 + $1,200,000 + $600,000 + $1,290,000 = $3,532,500
Cost per unit apart from direct material = $3,532,500 / 30,000 = $117.75
Total cost per unit = $117.75 + $50 = $167.75
Mark up per unit = $167.75 * 20% = $33.55
Price per unit = $167.75 + $33.55 = $201.30
Answer: $201.30
Explanation:
To solve this all the expenses incurred per unit need to be included in the unit.
Direct Materials $50
Direct Manufacturing Labour Hours per unit
= (10,000/30,000 units) * 12 (direct Manufacturing Labour per hour)
= $4
Variable Manufacturing Overhead Cost
= 322,500/30,000
= $10.75
Fixed manufacturing overhead costs
= 1,200,000/30,000
= $40
Product and process design costs
= 600,000/30,000
= $20
Marketing and distribution costs
= 1,290,000/30,000
= $43
Adding everything up,
= 50 + 4 + 10.75 + 40 + 20 + 43
= $167.75
Company adds 20% to costs so,
= 167.75 * ( 1 + 20%)
= $201.30
Company will most likely sell at $201.30
The single milling machine at Stout Manufacturing was severely overloaded last year. The plant operates eight hours per day, five days per week, and 50 weeks per year. Management prefers a capacity cushion of 15 percent. Two major types of products are routed through the milling machine. The annual demand for product A is 3000 units and 2000 units for product B. The batch size for A is 20 units and 40 units for B. The standard processing time for A is 0.5 hours/unit and 0.8 hours/unit for B. The standard setup time for product A is 2 hours and 8 hours for product B. How many new milling machines are required if Stout does not resort to any short-term capacity options
Answer:
If we assumes we setup machine for product A x times, and B y times, the total hours required is 0.5*3000 + 0.8*2000+ 2*x + 8 *y = 3100+2x+8y. Notice that due to the capacity restriction x has to be no smaller than 150 hours (3000/20) and y has to be no smaller than 50 hours (2000/40). so total required hours must exceed 3100+2*150+8*50=3800. The management prefer a 15% capacity cushion, which means the total duration prepared for the processing should be at least 3800*(1+15%)=4370 hours.
If one machine operates eight hours per day, five days per week and 50 weeks a year, it operates 5*8*50 = 2000 hours in total.
That's why we need 2 more machines ( 3 machines in total since 4370 > 2*2000).
The three service departments (indirect costs) are payroll, sales supervision and maintenance. The actual costs of these service departments are as follows:
Payroll Sales Supervision Maintenance
Salaries and wages $41,000 $80,000 $52,000
Office supplies $3,500 $1,600 $400
Supplies 0 $2,400 $7,500
The two operating departments and their statistics are as follows:
Square Footage Number of Employees Net Assets
Machining 14,500 78 $ 420,000
Assembly 46,000 42 280,000
If you allocate payroll department costs by number of employees then how much payroll cost is allocated to the Machining Department?
Answer:
$26,700
Explanation:
The solution of allocation of cost to machining department is provided below:-
First we need to find out the total payroll cost and total number of employees to reach the allocation of cost to machining department which is here below:-
Total Payroll costs = Payroll of salaries and wages + Payroll of office supplies
= $41,000 + $3,500
= $44,500
Total Number of employees = Machining number of employees + Assembly number of employees
= 78 + 52
= 130
Allocation of cost to Machining Department = Total Payroll costs ÷ Total Number of employees × Machining number of employees
= 44,500 ÷ 130 × 78
= $26,700
To reach allocation of cost to machining department we simply put the values into formula.
11. a. Suppose David spends his income M on goods x1 and x2, which are priced p1 and p2, respectively. David’s preference is given by the utility function
(1, 2) = √1 + √2.
(i) Derive the Marshallian (ordinary) demand functions for x1 and x2. (25 marks)
(ii) Show that the sum of all income and (own and cross) price elasticity of demand
for x1 is equal to zero. (25 marks) b. For Jimmy both current and future consumption are normal goods. He has strictly convex and strictly monotonic preferences. The initial real interest rate is positive. If the real interest rate falls, in each of the following cases, argue what will happen to his period 2 consumption level? Clearly illustrate your argument on a graph.
(i) He is initially a borrower. (25 marks)
(ii) He is initially a lender. (25 marks)
Answer:
Explanation:
D
