Answer:
$2,540
Options are inconsistent with given question
Explanation:
Allowance for uncollectible accounts is a contra asset account and it has credit nature. It needs to be debited to decrease the balance and credited to increase the balance. Balance of this account is adjusted in the account receivable to report the net receivable balance in the balance sheet.
As per given data
Beginning allowance for uncollectible accounts balance = $3,700
Write off is the adjustment mad in this account and it needs to be debited in this account, this transaction will reduce the balance.
Adjusted Balance = $3,700 - 2,700 = $1,000
Credit sales = $118,000
Estimated allowance for uncollectible accounts balance = $118,000 x 3% = $3,540
As allowance for uncollectible accounts has already have balance of $1,000, Bad debt expense for the year is $2,540 ($3,540 - $1,000).
If the government set a price ceiling of $40, there would be: Group of answer choices a shortage (or excess supply) of about 8 units a shortage (or excess supply) of about 12 units a surplus (or excess demand) of about 8 units a surplus (or excess demand) of about 12 units
Answer:
A surplus (or excess demand) of about 8 units
Explanation:
The picture attached shows the diagram necessary for the question which is part of the question. Solution is given below;
At the above ceiling at price of 40$
Quantity supplied will be 16
Quantity demanded will be 24
So when demand is more than supply than there will be a shortage in quantity by (24-16) 8 units.
When there is demand more than supply than it is an excess demand.
So surplus or excess demand by 8 units.
At the beginning of 2020, Vaughn Company acquired a mine for $1,965,400. Of this amount, $115,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 11,010,000 units of ore appear to be in the mine. Vaughn incurred $195,500 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $46,000. During 2020, 2,433,000 units of ore were extracted and 2,081,000 of these units were sold.
Compute the total amount of depletion for 2020.
Answer:
$462,270.00
Explanation:
The first task is to determine the depletion rate per unit of ore extracted from the mine.
depletion rate=total cost the mine/total units of ore extract
total cost of mine=acquisition cost-land value+development costs+removal cost
total cost of mine=$1,965,400-$115,000+$195,500+$46,000=$2,091,900.00
total units of ore extract is 11,010,000 units
depletion rate= 2,091,900.00/11,010,000=$0.19 per unit of ore
depletion amount in 2020=depletion rate*ore extracted in 2020=2,433,000*$0.19 =$462,270.00
Answer:
$408,903
Explanation:
Depletion is an estimated cost of a natural resource that is extracted. This resource is expensed as the extraction is made.
As per given data
Total Payment = $1,965,400
Land Value = $115,000
Value of Rights = $1,965,400 - $115,000 = $1,850,400
Estimated resources = 11,010,000 units
Resources extracted in the period = 2,433,000 units
Depletion expense is based on ratio of the amount of extraction in period to the total expected resource.
Depletion Expense = $1,850,400 x 2,433,000 / 11,010,000 units = $408,903
Ann and Jack have been partners for several years. Their firm, A & J Tax Preparation, has been very successful, as the pair agree on most business-related questions. One disagreement, however, concerns the legal form of their business. For the past two years, Ann has tried to convince Jack to incorporate. She believes that there is no downside to incorporating and sees only benefits. Jack strongly disagrees; he thinks that the business should remain a partnership forever. First, take Ann's side, and explain the positive side to incorporating the business. Next, take Jack's side, and state the advantages to remaining a partnership. Lastly, what information would you want if you were asked to make the decision for Ann and Jack?
Answer and Explanation:
The partnership refers to the agreement between the two or more persons, who works as a partners in an organization. The motive of establishing the partnership is to divide the profit and losses in their respective ratio or profit or loss ratio.
On the other hand, the corporation refers to the business organization that reflects the different legal entity with respect to its owners and moreover it involves more statutory compliance.
Based on this the advantage of partnership is to attractive less taxes and less expensive for creating this business organization as it easy to form.
And, the advantage of corporation is limited liability, long life or unlimited life, and the ownership is easily transferable
The Berkel Corporation manufactures Widgets, Gizmos, and Turnbols from a joint process. June production is 5,000 widgets; 8,750 gizmos; and 10,000 turnbols. Respective per unit selling prices at splitoff are $75, $50, and $25. Joint costs up to the splitoff point are $187,500. If joint costs are allocated based upon the sales value at splitoff, what amount of joint costs will be allocated to the widgets
Answer:
Allocated join cost = $66,176.47
Explanation:
The joint cost is allocated using sales. This is done by using the proportion of sales of the total which is attributed to the sales value of widget
Total sales value of the three products=
(75 × 5,000) + ($50× 8,750) + ( $25× 10,000)= 1,062,500
Joint cost = $187,500.
Joint costs allocated to Widget
= (75 × 5,000)/1,062,500 × $187,500. = 66,176.47
Allocated join cost =$66,176.47
Garcia's Garage desires to create some colorful charts and graphs to illustrate how reliably its mechanics "get under the hood and fix the problem." The historic average for the proportion of customers that return for the same repair within the 30-day warranty period is 0.09.Each month, Garcia tracks 100customers to see whether they return for warranty repairs. The results are plotted as a proportion to report progress toward the goal. If the control limits are to be set at twostandard deviations on either side of the goal, determine the control limits for this chart. In March, 5of the 100customers in the sample group returned for warranty repairs. Is the repair process in control?
Answer:
the given question historic average is given as 0.09 for 100 customers.
Therefore,
P = 0.09 and n = 100
The control liimits are to be set two standard deviation around the mean.
Standard deviation =
\sigma = \sqrt{p(1-p)/n)}
Therefore substitutin g the value in the above formula:
\sigma = \sqrt{0.09(1-0.09)/100)}
After soving we get result as:
\sigma = 0.0286
Upper Control Limit = 0.09 + 2 * \sigma = 0.09 + (2 * 0.0286) = 0.1472
Lower Control Liimit = = 0.09- 2 * \sigma = 0.09 - (2 * 0.286) = -0.0328
For March, 5 out of 100 customers returned for warranty repairs, therefore,
p for March = 5/100 = 0.05
The process doses not fall under control limits, so it is out of control for March.
Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted) Units Work in process, November 1st 16,000 Started in production during November 100,000 Work in process, November 30th 24,000 The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs. Costs pertaining to November are as follows: Beginning inventory: direct materials, $54,560; direct labor, $20,320; manufacturing overhead, $15,240. Costs incurred during the month: direct materials, $468,000; direct labor, $182,880; manufacturing overhead, $391,160. What is the equivalent unit cost for materials assuming Bentley uses first-in, first-out (FIFO) process costing?
Answer:
Material Cost per equivalent unit =$4.87
Explanation:
First in First out (FIFO)methods separates completed units into fully worked and opening inventory
Fully worked units: These represent units of inventory that were started in a current period and completed that same period. The fully worked units are calculated in order to separate the opening inventory from the the newly introduced when accounting for completed units under the FIFO.
For Bentley , fully worked units is
Fully worked = Newly introduced - closing work in progress
= 100,000- 24,000 = 76,000 .
Opening inventory = 16,000
Item Units Equivalent Units
Opening inventory 16,000 × 40%= 9,600
Completed unit 76,000 × 100% = 480,000
Closing inventory 24,000 × 90% = 21,600
Total equivalent units 107,200
Cost per equivalent unit = Total cost/ equivalent inits
= 54560 +468,000/ 107,200 = $4.87
Material Cost per equivalent unit =$4.87
The equivalent unit cost for materials assuming Bentley uses first-in and first-out (FIFO) process costing:
For Bentley , fully worked units is
Fully worked = Newly introduced - closing work in progressFully worked= 100,000- 24,000 = 76,000 .Opening inventory = 16,000
Item Units Equivalent Units
Opening inventory 16,000 × 40%= 9,600
Completed unit 76,000 × 100% = 480,000
Closing inventory 24,000 × 90% = 21,600
Total equivalent units 107,200
Cost per equivalent unit = Total cost/ equivalent inits
Cost per equivalent unit= 54560 +468,000/ 107,200 = $4.87
The Material Cost per equivalent unit =$4.87.
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Gambarini Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $197.80 per unit. Sales volume (units)............... 6,000 7,000 Cost of sales.......................... $ 486,600 $ 567,700 Selling and administrative costs $ 612,600 $ 624,400 The best estimate of the total monthly fixed cost is:
Answer:
$541,800
Explanation:
Total cost of 6,000 units = $486,600 + $612,600 = $1,099,200
Total cost of 7,000 units = $567,700 + $624,400 = $1,192,200
Change in total cost = $1,192,200 - $1,099,200 = $92,900
Change in unit = 7,000 - 6,000 = 1,000
Variable cost per unit = Change in total cost/Change in unit = $92,900 / 1000 = $92.90
Using information on either 7,000 units or 6,000 units to calculate the variable cost, we have:
Total monthly Fixed Cost = Total Cost - Variable Cost = $1,099,200 - ($92.90 * 6,000) = $541,800
Assume that an economy is initially in long-run equilibrium. Explain the short-run effect of monetary policy that causes an increase in interest rates. As a result of higher interest rates, the A. long-run aggregate supply curve will shift left. B. aggregate demand curve will shift left. C. short-run aggregate supply curve will shift left. D. aggregate demand curve will shift right. The new equilibrium will be A. where the original aggregate demand curve intersects the original short-run aggregate supply curve. B. where the new aggregate demand curve intersects the original short-run aggregate supply curve. C. where the new aggregate demand curve intersects the original aggregate demand curve.
Answer:
As a result of higher interest rates, the
B. aggregate demand curve will shift left.The new equilibrium will be
B. where the new aggregate demand curve intersects the original short-run aggregate supply curve.Explanation:
A contractionary monetary policy will increase the interest rates, lowering investment and consumption. This will result in a leftward shift of the aggregate demand curve.
The new equilibrium (E1) will be at the point where the new aggregate demand curve (AD1) intersects the original short run aggregate supply curve (SRAS) and the long run aggregate supply curve (LRAS).
Milton Friedman argues that __________.
O corporations today should adopt a broader view of their social responsibilities than they have in the past.
O corporate officials have a social responsibility that goes beyond serving the interests of their stockholders.
O strict governmental controls are necessary if society is to maximize its overall economic well-being.
O a business's only social responsibility is to maximize profits within the rules of the game.
Answer:
Milton Friedman argues that a business's only social responsibility is to maximize profits within the rules of the game.
Explanation:
Milton Friedman is known to hold an opposing view when compared to that of John Keynes about economic theory.
Whereas Milton Friedman believes that the utmost responsibility of any company is to the shareholders, the Keynesian are more consumer focused.
Milton Friedman believes strongly in free capitalism and as a result does not advocate for any company offering corporate social responsibility to the society or public.
According to an article in the Wall Street Journal, KB Home and other builders found demand for new houses increasing in 2017 as a result of an increase in the formation of new households. In the long run, formation of new households depends on population growth. Source: Laura Kusisto and Sarah Chaney, "U.S. Housing Starts Fell in April for Third Time in Four Months," Wall Street Journal, May 16, 2017. Are firms like homebuilders that sell products whose demand depends partly on demographic factors likely to be more or less affected by the business cycle than are other firms whose products are less dependent on these factors (holding constant other factors that affect the demand for new houses)? Briefly explain.
Answer:
Generally speaking, demographic growth can affect the economy quite a lot, but the economy has a very little effect on demographic growth. E.g. the baby boomers were great for the economy during several decades, but there is no clear relationship between population growth and economic activity.
This means that companies like home builders whose demand depends on other factors besides the economy, will be less affected by economic recessions or expansions. E.g. the demographic growth in America was around 0.7% during 2019 and the economy was growing that year.
Actually, the US population has been declining over the last decades. The real growth factor in population has been immigration in the last decades, and that has also been declining lately.
JB Instruments is analyzing a proposed project. The company expects to sell 1,600 units, ±3 percent. The expected variable cost per unit is $220 and the expected fixed costs are $438,000. Cost estimates are considered accurate within a ±2 percent range. The depreciation expense is $64,000. The sales price is estimated at $647 per unit, ±2 percent. What is the sales revenue under the worst-case scenario?
Answer:
$984,061.12
Explanation:
The computation of sales revenue under the worst-case scenario is shown below:-
Sales revenue under the worst-case scenario = Quantity sold × Price
= (1,600 - 1,600 × 3%) × ($647 - $647 × 2%)
= (1,600 - 48) × ($647 - 12.94)
= 1,552 × 634.06
= $984,061.12
Therefore for computing the sales revenue under the worst-case scenario we simply applied the above formula.
Please help ASAP giving BRAINLIEST , Did I get this correct?
Answer:
Yes you are correct on this researched it
Answer:
YEAH:)
Explanation:
In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information: Cash balance per company books on April 30 $ 6,245 Deposits in transit at month-end $ 1,360 Outstanding checks at month-end $ 680 Bank charge for printing new checks $ 75 Note receivable and interest collected by bank on Donahue’s behalf $ 710 A check paid to Donahue during the month by a customer is returned by the bank as NSF $ 540 The adjusted cash balance per the books on April 30 is:
Answer:
$5,660.
Explanation:
The adjusted cash balance = Cash balance per company books on April 30 - Deposits in transit + Outstanding checks - Bank charge + Note receivable and interest - NSF check = $6,245 - $1,360 + $680 - $75 + $710 - $540 = $5,660.
Therefore, the adjusted cash balance per the books on April 30 is $5,660.
Byron Books Inc. recently reported $6 million of net income. Its EBIT was $12.6 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $6 million of net income by (1 - T) = 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.
Answer:
he35
Explanation:
h
On January 1, 2011, G Corp. granted stock options to key employees for the purchase of 80,000 shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2013, by the grantees still in the employ of the company. No options were terminated during 2011, but the company does have an experience of 20% forfeitures over the life of the stock options. The market price of the common stock was $31 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $10. What amount should G charge to compensation expense for the year ended December 31, 2011
Answer:
The amount should G charge to compensation expense for the year ended December 31, 2011 is $320,000
Explanation:
In order to calculate the amount should G charge to compensation expense for the year ended December 31, 2011 we would have to calculate the following formula:
amount should G charge to compensation expense for the year ended December 31, 2011=Total compensation/2
Note: company does have an experience of 20% forfeitures over the life of the stock options, therefore, 100%-20%=80%
Total compensation= 80,000 options × $10 × 80%
Total compensation= $640,000
amount should G charge to compensation expense for the year ended December 31, 2011=$640,000/2
amount should G charge to compensation expense for the year ended December 31, 2011=$320,000
A company incurs $3,600,000 of overhead each year in three departments: Processing, Packaging, and Testing.
The company performs 800 processing transactions, 200,000 packaging transactions, and 2,000 tests per year in producing 400,000 drums of Oil and 600,000 drums of Sludge.
The following data are available:
Department Expected Use of Driver Cost
Processing 800 $1,500,000
Packaging 200,000 1,500,000
Testing 2,000 600,000
Production information for the two products is as follows:
Oil Sludge
Department Expected Use of Driver Expected Use of Driver
Processing 300 500
Packaging 120,000 80,000
Testing 1,600 400
The amount of overhead assigned to Sludge using ABC is
a. $1,800,000.
b. $1,657,500.
c. $1,942,500.
d. $1,380,000.
Answer:
its 1,800,000
because it the answer
The Essex Company found that an average of 10 days elapses between when customer payments are received and the deposited funds clear the customer's bank and become usable by the firm. Essex's annual sales are $240 million. (Assume 365 days per year when converting from annual data to daily data or vice versa.) What is the increase in Essex's average cash balance assuming that it can reduce the time required to process customer payments by 3 days through more efficient payment processing methods
Answer:
$1,972,602.74
Explanation:
According to the scenario, computation of the given data are as follow:-
Increase in Essex’s Average Cash Balance = (Annual Sales ÷ Days Per Year) × Required Process Customer by Days
= (240,000,000 ÷ 365) × 3
= 657,534.25 × 3
= $1,972,602.74
According to the analysis, Increase in Essex’s average cash balance is $1,972,602.74
Explain how strong enforcement of carefully designed patent laws affects the growth rate of an economy. (5 points) Explain how tax incentives can be used to promote faster economic growth. (5 points) Explain the "infant industry argument" and its relationship to a country’s growth rate. (5 points) Explain what incentives can be used to increase the savings rate in an economy (as another way to promote faster economic growth). (5 points)
Answer:
1.In simple words, strong enforced patent laws will work as a motivation to innovation and innovation always results in better outcomes for thee economy as the output in the economy could be increased dramatically through technology advances.
2. By simply decreasing the tax rates on income from middle class households, Government can increase the demand of goods due to higher income in hand which further results in growth of economy.
3. Such argument states the new industries must be protected from foreign competitors until they are stable on their own. This is completely true as new industrious lead to better employment opportunities which further leads to economic growth.
4. For first tax rates can be decreased for more income in hand and also interest rates on savings could be increased.
Precise Machinery is analyzing a proposed project. The company expects to sell 2,100 units, give or take 5 percent. The expected variable cost per unit is $260 and the expected fixed costs are $589,000. Cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $129,000. The sales price is estimated at $750 per unit, give or take 2 percent. The tax rate is 35 percent. The company is conducting a sensitivity analysis on the sales price per unit using a sales price estimate of $755. What is the operating cash flow based on this analysis
Answer:
$337,975
Explanation:
Operating Cash Flow:
Operating Cash Flow
{[($755 - $260) x 2,100 units] - $589,000} {1 - 0.35} + {$129,000 x 0.35}
{[$495 x 2,100 units] - $589,000} {0.65} + {$129,000 x 0.35}
{$1,039,500 - $589,000} {0.65} + $45,150
{$450,500} {0.65} + $45,150
$292,825 + $45,150
$337,975
Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2021, for $3.4 million. The patent will be used for five years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for $110,000 at the end of five years. Compute Granite's patent amortization for 2021, assuming the straight-line method is used
Answer:
$658,000
Explanation:
According to the scenario, computation of the given data are as follows:
Granite Enterprises Patent acquired = $3.4 million
Used years = 5 years
Rocky corporation purchase after 5 years = $110,000
So, we can calculate the Granite's patent amortisation by using following formula:
Granite's patent amortisation = ($3,400,000 - $110,000) ÷ 5
= $3,290,000 ÷ 5
= $658,000
Berne, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $5.00 Indirect materials 2.50 Maintenance .80 Utilities .30 Fixed overhead costs per month are: Supervision $800 Insurance 200 Property taxes 300 Depreciation 900 The company believes it will normally operate in a range of 2,000 to 4,000 machine hours per month. Prepare a flexible manufacturing overhead budget for the expected range of activity, using increments of 1,000 machine hours. (List variable costs before fixed costs.)
Answer and Explanation:
As per the data given in the question,
Flexible manufacturing overhead budget
Activity level :
Machine hours 2,000 hours 3,000 hours 4,000 hours
Variable costs :
Indirect labor $5 $10,000 $15,000 $20,000
Indirect material $2.50 $5,000 $7,500 $10,000
Maintenance $0.80 $1,600 $2,400 $3,200
Utilities $0.30 $600 $900 $1,200
Total variable cost $22,600 $25,800 $34,400
Fixed costs :
Supervision $800 $800 $800
Insurance $200 $200 $200
Property taxes $300 $300 $300
Depreciation $900 $900 $900
Total Fixed cost $2,200 $2,200 $2,200
Total Cost $24,800 $28,000 $36,600
The following data concerning the retail inventory method are taken from the financial records of Welch Company. Cost Retail Beginning inventory $ 196,000 $ 280,000 Purchases 896,000 1,280,000 Freight-in 24,000 — Net markups — 80,000 Net markdowns — 56,000 Sales — 1,344,000 If the ending inventory is to be valued at approximately the lower of cost or market, what is the cost-to-retail ratio?
Answer:
$ 168,000
Explanation:
Include both Mark-ups and Mark-Downs and Exclude beginning inventory
When LIFO Inventory Method is used to find out Ending inventory retail Value. Cost to Retail Ratio will be Applied for both Previous year ending Inventory and the Current Year addition To Calculates
the Previous year Ending inventory :
Cost to Retail Ratio : Ending inventory at cost / Ending inventory at Retail
For Current year Addition :
Cost to Retail Ratio : Current Year Addition in Cost /Current Year Addition in Retail
Current year addition in retail includes : Markup ,Markdown purchases
Kindly check the attached images below to see the step by step explanation to the question above.
Proper payroll accounting methods are important for a business for all of the following reasons except a.payroll is subject to various federal and state regulations b.good employee morale requires timely and accurate payroll payments c.to help a business with cash flow problems by delayed payments of payroll taxes to federal and state agencies d.payroll and related payroll taxes have a significant effect on the net income of most businesses
Answer:
Option C
Explanation:
In simple words, Payroll Accounting refers to the task of estimating and delivering to workers and other organizations pay , bonuses and allowances. That is usually achieved by various papers, including time sheets, earnings, as well as an accounting register.
Payroll management actually tracks an enterprise's payroll costs through accounting records. Payroll planning covers both cost and liability reports which including FICA Payable Payments, fed and provincial taxes Payable, Life Care Contributions Payable, etc.
Royal Dutch Shell(RDS) acquires ethanol fuel from Brazilian Cosan energy company. The Ethanol costs 500 million Brazilian Real(BRL) to grow the corn and convert it to ethanol. RDS doesn't have BRL, so they must use the futures market to acquire the currency. If 1 BRL/USD futures contract is for 100,000 reals What is the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery.
Answer:
The answer is 5000 future contracts
Explanation:
Solution
Given that:
Royal Dutch buys ethanol fuel from Brazilian energy company
Nowm,
The Required coverage = 500,000,000
The BRL/USD futures contract size = 100,000
Number of contracts required = 500,000,000/100,000
So,
= 500,000,000/100,000 = 5000
Therefore, the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery is 5000
The 2016 financial statement of Willamette Valley Vineyards reported Cost of goods sold of $7,204,884. Note 3 to the financial statements reported that Inventories consisted of: 2016 2015 Winemaking and packaging materials $ 817,836 $ 690,292 Work-in-process 6,634,014 6,058,701 Finished goods 4,518,806 3,883,469 Total inventories $11,970,656 $10,632,462 The inventory turnover for 2016 was:__________
a, 0.57
b. 0.64
c. 0.59
d. 1.71
Answer:
b. 0.64
Explanation:
The computation of the inventory turnover for the year 2016 is shown below:
Inventory turnover = Cost of goods sold ÷ Average inventories
where,
Average inventories is
= ($11,970,656 + $10,632,462) ÷ 2
= $11,301,559
And the cost of goods sold is $7,204,884
So, the Inventory turnover is
= $7,204,884 ÷ $11,301,559
= 0.64 times
We simply applied the above formula
8-27 Basic Flexible Budget The budgeted prices for materials and direct labor per unit of fi nished product are $8 and $7, respectively. The production manager is delighted about the following data: Static Budget Actual Costs Variance Direct materials $59,200 $49,900 $9,300 F Direct labor 51,800 39,200 12,600 F Is the manager’s happiness justifi ed? Prepare a report that might provide a more detailed explanation of why the static budget was not achieved. Good output was 5,300 units.
Answer:
Basic Flexible Budget
Flexible Budget:
Differential Analysis
Reject Order (Alt. 1) or Accept Order (Alt. 2)
September 5
Flexible Actual Variance
Costs: 5,300 units 5,300 units 0
Direct Materials $42,400 $49,900 $7,500 U
Direct Labor $ 37,100 $39,200 $2,100 U
Total Variable costs $79,500 $89,100 $9,600 U
Explanation:
Using the good output and a flexible budget, the static budget was not achieved favorably as depicted.
A flexible budget varies the budgeted units to agree with the volume of activity. This produces a different result from the static budget, which does not vary the budgeted units according to the volume of activity.
A flexible budget is preferable as it reflects the correct performance given the activity level or volume of production or sales.
As marketing tools, how do blogs benefit companies? A. Demographic information about customers can be easily discovered. B. Blogs can offer a fresh, original, personal, and cheap way to enter into consumer conversations. C. Blogs are online selling platforms for people located in hard-to-reach places. D. Blogs provide companies with a platform to help portray wider merchandise. E. Blogs help reach a wider audience compared to other online direct marketing tools.
Answer:
The correct answer to the following question will be Option B.
Explanation:
A blog seems to be a new website where items are frequently published being presented in reverse order, can give a new, initial, personal as well as inexpensive chance of engaging in conducting this survey.The benefit of utilizing a company blog though is that the content provides faith to your clients or clients to support you as well as your organization as such a professional in your specialized subject or area.The other choices have no relation to the given circumstance. So choice B seems to be the perfect solution to that.
Merritt Equipment Company sells computers for $1,630 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2017, the company sold 950 computers. Based on past experience, the company has estimated the total 2-year warranty costs as $40 for parts and $60 for labor. (Assume sales all occur at December 31, 2017.)
In 2018, Merritt incurred actual warranty costs relative to 2017 computer sales of $11,200 for parts and $16,800 for labor.
Required:
a. Under the expense warranty approach, give the entries to reflect the above transactions (accrual method) for 2017 and 2018.
i. To record sale of computers
ii. To record estimated warranty expense
iii. To record expenditures towards warranty
Answer:
For this given question, find the entries recorded on the transactions (accrual method) for 2017 and 2018.
Explanation:
Solution
Entries on the above transactions (accrual method) for 2017 and 2018.
Date Particulars Debit ($) Credit ($)
2017 Accounts Receivable
(1630*950) 1548500
Sales revenue 1548500
(To record sale of computers)
2017 Warranty Expense
(40+60)*950 95000
Warranty Liability 95000
To record liability against warranty costs)
2018 Warranty Liability 28000
Inventory 11200
Cash, Accrued payroll 16800
The economy is in equilibrium, TP = TE. Then, autonomous consumption rises. As a result, __________ rises, the __________ curve shifts __________, inventory levels unexpectedly __________, and business firms __________ the quantity of goods and services they produce. Group of answer choices consumption; TE; downward; fall; increase consumption; TE; upward; fall; increase consumption; TE; upward; rise; decrease investment; TE; upward; fall; increase investment; TP; leftward; fall; increase
Explanation:
The economy is in equilibrium, TP = TE. That is total production is equal to total production.
Then, autonomous consumption rises. As a result, consumption rises, the TE(total expenditure) curve shifts upwards, inventory levels unexpectedly falls, and business firms increases the quantity of goods and services they produce.
Seven, Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 3.5 feet $ 8.20 per foot Direct labor 1.75 hours $ 7.00 per hour Variable manufacturing overhead 1.75 hours $ 2.60 per hour The company planned to produce 23,100 units of output during June and has reported the following actual results for the product for June: Actual output 24,000 Units Raw materials purchased/used 88,800 Feet Actual total cost of raw materials $ 706,560 Actual direct labor-hours 48,000 Hours Actual total direct labor cost $ 374,400 Actual total variable overhead cost $ 124,800 Assume all of the materials purchased was used during the month to produce the 24,000 units. The price variance for DM is:
Answer:
Material price variance $21,600 unfavorable
Explanation:
Material price variance
A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite
$
88, 800 feet should have cost (88, 800× $8.20) 728,160
but did cost 706,560
Material price variance 21,600 unfavorable
