Given the following information, determine the activity rate for setups.

Activity Pool Activity Base Budgeted Amount
Setups 10,000 $180,000
Inspections 24,000 $120,000
Assembly (DLH) 80,000 $400,000

a. $58.00
b. $0.75
c. $5.09
d. $18

Answers

Answer 1

Answer:

Set up= $18 per set up

Explanation:

Giving the following information:

Activity Pool Activity Base Budgeted Amount

Setups 10,000 $180,000

To calculate the activity rate, we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Set up= 180,000 / 10,000

Set up= $18 per set up


Related Questions

Berkeley Corporation has a policy of furnishing new automobiles to the athletic department of the local university. The automobiles are used for short periods of time by the extremely popular head basketball coach. When the automobiles are returned to Berkeley Corporation, they are sole to regular customers. The owner of Berkeley Corporation maintains that any such cars held for more than one year should qualify as Sec. 1231 property. Do you agree?

Answers

Answer:

Berkeley Corporation

No.  I do not agree with the owner of Berkeley Corporation.

Vehicles or automobiles are section 1245 property and not section 1231.

Explanation:

The IRS regards Section 1231 properties to include buildings, machinery, land, timber, and other natural resources, unharvested crops, cattle, livestock, and leaseholds that are held in a business or trade for at least one year.  They are used in trade and not for sale. On the other hand, Section 1245 properties include all depreciable or amortizable tangible personal property, such as furniture, automobiles, and equipment, or other intangible personal property, such as a patent or license.

Based on the information given, it's not section 1231. Therefore, I do not agree with the owner of Berkeley Corporation.

Section 1231 simply means a term that is used to describe a property relating to the United States Internal Revenue Code. Vehicles or automobiles are section 1245 property and not section 1231.

The Internal Revenue Service regards Section 1231 properties like buildings, machinery, land, timber, and other natural resources, unharvested crops, cattle, livestock, etc. Section 1245 represents properties that are depreciable like furniture, automobiles, equipment, etc.

Learn more about section 1231 on:

https://brainly.com/question/17157656

Your company is considering a project that will cost $100. The project will generate after-tax cash flows of $37.50 per year for five years. The WACC is 10 percent and the firm's D/A ratio is 0.70. The flotation cost for equity is 6 percent, the flotation cost for debt is 3 percent, and your firm does not plan on issuing any preferred stock within its capital structure. If your firm follows the practice of incorporating flotation costs into the project's initial investment, what is the weighted average flotation cost for the firm

Answers

Answer:

3.9%

Explanation:

Calculation to determine the weighted-average flotation cost for the firm

Using this formula

Weighted-average flotation cost =D/A ratio(Flotation cost for debt)+ Flotation cost for debt(Flotation cost for equity)

Let plug in the formula

Weighted-average flotation cost=.7(3%) + .3(6%)

Weighted-average flotation cost=.0021+.0018

Weighted-average flotation cost=.0039*100

Weighted-average flotation cost= 3.9%

Therefore the weighted-average flotation cost for the firm is 3.9%

Selected current year company information follows:
Net income $15,953
Net Sales 712,855
Total liabilities, beginning-year 83,932
Total liabilities, end-of-year 103,201
Total stockholders' equity, beginning-year 198,935
Total stockholders' equity, end-of-year 121,851
Total asset turnover is:________.
a. 2.24 times
b. 2.81 times
c. 3.64 times
d. 4.67 times
e. 6.28 times

Answers

Answer:

b. 2.81 times

Explanation:

Calculation to determine Total stockholders' equity, end-of-year 121,851

Total asset turnover is:

First step is to calculate the Total assets

Beginning Ending

Total liabilities $83,932 $103,201

Total equity 198,935 121,851

Total assets $282,867 $225,052

Now let determine the Total asset turnover

Total asset turnover = $712,855/[($282,867 + $225,052)/2]

Total asset turnover= 2.81 Times

Therefore Total stockholders' equity, end-of-year 121,851

Total asset turnover is:2.81 Times

Daphne Inc., a steel manufacturing company, is planning to buy a new plant at $1,090,000. The life of the plant is estimated to be 5 years and has cash flows of $109,000, $218,000, $327,000, $436,000, and $545,000. Calculate the payback period for the new plant.
a. 5 years
b. 2 years
c. 4 years
d. 3 years

Answers

Answer:

The payback period is exactly 4 years.

Explanation:

Giving the following information:

Initial investment= $1,090,000

Cf1= 109,000

Cf2= 218,000

Cf3= 327,000

Cf4= 436,000

Cf5= 545,000

The payback period is the time required to cover the initial investment:

Year 1= 109,000 - 1,090,000= -981,000

Year 2= 218,000 - 981,000= -763,000

Year 3= 327,000 - 763,000= 436,000

Year 4= 436,000 - 436,000= 0

The payback period is exactly 4 years.

Give examples if operational conflicts that could occur in a cross- cultural context because of different attitudes towards:1) time, 2) individualism. Give a country or region that would be different from the US for each of the two variables.

Answers

The correct answer to this open question is the following.

Give examples of operational conflicts that could occur in a cross-cultural context because of different attitudes towards:1) time, 2) individualism.

Well, let's start with time. In the United States, time is of the utmost importance. There we have the old saying: "Time is money."

In the workplace, everything is based on the smart and efficient use of time. No time must be wasted in the workplace.

Individual effort is important in the American culture, but the team effort, the concept of being a good team player is very important under the following premise: teams can accomplish more than individuals.

What most Americans desire is individual recognition through team effort.

That is why team sports are so good in the United States because they exemplify the way teams function and what they can accomplish. For instance, college and pro football, basketball, and baseball.

The region that has a different approach, is Latin America. This does not mean that is better than the other, just that there are major differences between the two.

The management of time is very different in Latin American countries. It is not as important as the US. People in Latin America approach the concept of time in a more relaxed way. In Latin America, there is a more relaxed approach to time. Nothing is urgent, Things take time. Things are made at a different pace compared to the US.

And regarding individualism, Latin American people tend to prefer to be more individualistic to do things trying to get some recognition, The team concept is not as developed as in the US.

You purchased an automobile a year ago for $10,000. Its current market price is $6,000, and the expected market value one year from now is $4,000. If the interest rate is 10 percent, how much will it cost you to keep the car for an additional year (over and above operation and maintenance costs)

Answers

Answer: $2600

Explanation:

From the information given, the cost price of the automobile is $10000 but the current market price is $6000. If the automobile is old now for $6000 and the money is kept in a bank for.one year at an interest rate of 10%, then the interest gotten on it will be:

= $6000 × 10% × 1

= $600

In a situation whereby the automobile is sold the following year, then the price will be $4,000 and I will get $4,000. Therefore, the cost for keeping the car for an additional year will then be:

= (Current price - Future price) + Interest amount

= ($6,000 - $4,000) + $600

= $2,600.

Rev. Elvin Snider is the ordained minister at Crossroads United Methodist Church. His salary on his Form W-2 is $20,000. He also receives a $12,000 housing allowance. His housing costs for the year are $14,000. What is Rev. Snider's self-employment income?

Answers

Answer: $32000

Explanation:

It should be noted that ministers or clergymen can exclude the home rental value or housing cost from the calculation of the gross income

Rev. Snider's self-employment income

Therefore, in this case, Rev. Snider's self-employment income will be:

Salary = $20,000

Add: Housing allowance = $12000

Total = $32000

phân tích phạm trù hàng hoá sức loa động theo quan điểm cua chủ nghĩa mác.Thực trạng thị trường sức lao động ở nước ta hiện nay. Là sinh viên trường đại học anh chị nhận thấy mình có trách nhiệm gì trong việc nâng cao chất lượng nguồn nhân lực đáp ứng yêu cầu của sự nghiệp công nghiệp hoá đất nước

Answers

I don’t understand what this says sorry

Efficiency in a market is achieved when:_______.
a. a social planner intervenes and sets the quantity of output after evaluating buyers' willingness to pay and sellers' costs.
b. the sum of producer surplus and consumer surplus is maximized.
c. all firms are producing the good at the same low cost per unit.
d. no buyer is willing to pay more than the equilibrium price for any unit of the good.

Answers

Answer:

B. The sum of producer surplus and consumer surplus is maximized.

Use the cost information below for Laurels Company to determine the manufacturing costs added during the current year:

Direct materials used $5,000
Direct labor used 7,000
Total factory overhead 5,100
Beginning work in process inventory 3,000
Ending work in process inventory 4,000

Answers

Answer:

$17,100

Explanation:

Calculation to determine the manufacturing costs added during the current year

Direct materials used $5,000

Add Direct Labor $7,000

Add Total Factory overhead $5,100

Total manufacturing $17,100

($5,000+$7,000+$5,100)

Therefore the manufacturing costs added during the current year is $17,100

The strategy underlying price discrimination is Group of answer choices to charge higher prices to customers who have good substitutes available to them and lower prices to customers without many substitutes available to them.. to charge everyone the same price but limit the quantity they are allowed to buy. to increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand. to reduce per-unit cost by charging higher prices to those with the most inelastic demand and lower prices to those with the most elastic demand.

Answers

Answer:

to increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand.

Explanation:

Price discrimination is when the same product is sold at different prices to customers in different markets

types of price discrimination

1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.  

3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students  

Requirements to practice successful price discrimination  

1. The firm must have market power. If the firm does not have market power and attempts to price discriminate they would lose customers

2. The firm must have different elasticities of demand for their product in different markets. the firm should charge the higher price in the market with the less elastic demand.

3. The firm must be able to segment the market for their products  

4. the firm's product should have a lot of close substitutes.

A portfolio manager believes interest rates will drop and decides to sell short-duration bonds and buy long-duration bonds. This is an example of _____________ swap.

a. a pure yield pickup
b. a substitution
c. a rate anticipation
d. an intermarket spread

Answers

Answer:

C) a rate anticipation

Explanation:

A rate anticipation swap can be regarded as a bond trading strategy that is used whereby there is exchange of exchanges of bond portfolio by trader in anticipation of expected interest rate movements.

Rate anticipation swap can be regarded as trading strategy involving

bonds swapping on the basis of varying maturity dates. this bond swapping are done according to their present period as well as their movement rate prediction.

Which of the following describe management's use of a master budget: Multiple select question. Helps in determining bonuses to managers who meet budgets Helps analyze differences between actual and budgeted results Helps to place blame on managers who do not meet budgets Helps reveal undesirable outcomes Helps in planning and control activities

Answers

Answer:

Helps analyze differences between actual and budgeted results

Helps reveal undesirable outcomes

Helps in planning and control activities

Explanation:

A master budget comprised of future income statement or planned operating budget and the future balance sheet or financial budget that represent the goals and objectives of the organization and the ways to achieve them. It identified the actual & budgeted results difference, It disclosed the non-desirable results and also it helps in activities that deals in planning & controlling

Therefore the above statements should be correct

High-Low Method
The manufacturing costs of Ackerman Industries for the first three months of the year follow:
Total Costs Units Produced
January $1,900,000 20,000 units
February 2,250,000 27,000
March 2,400,000 30,000
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
a. Variable cost per unit $
b. Total fixed cost $

Answers

Answer:

Variable cost per unit= $50

Fixed costs= $900,000

Explanation:

Giving the following information:

Total Costs Units Produced

January $1,900,000 20,000 units

February 2,250,000 27,000

March 2,400,000 30,000

To calculate the unitary variable cost and the fixed cost under the high-low method, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (2,400,000 - 1,900,000) / (30,000 - 20,000)

Variable cost per unit= $50

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 2,400,000 - (50*30,000)

Fixed costs= $900,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 1,900,000 - (50*20,000)

Fixed costs= $900,000

Kết luận sự thích ứng tâm lý của sinh viên năm nhất

Answers

Answer:

I think I should ask in English language

Using the reciprocal services method, which of the following equations represents the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $500,000 of direct costs but also 20% of the Maintenance Department (M) cost and a Maintenance Department that includes not only $250,000 of direct costs but also 40% of the Janitorial Department? (Hint: This equation is derived from the two separate equations representing each department's costs.)

Answers

a. J = ($500,000 × 0.20) + [($250,000 × 0.20) + J]

b. J = $500,000 – (0.20 × $250,000) – (0.20 × J)

c. J = $500,000 + [(0.20 ÷ $250,000) + (0.40 ÷ J)]

d. J = $500,000 + {0.20 × [$250,000 + (0.40 × J)]}

Answer:

The equation that represents the algebraic expressions for the two equations needed to capture the total costs of the Janitorial Department is:

d. J = $500,000 + {0.20 × [$250,000 + (0.40 × J)]}

Explanation:

a) Data and Calculations:

                                                 Direct costs   Percent of Service Dept.

Janitorial Department (J)          $500,000          20% of M

Maintenance Department (M)  $250,000          40% of J

b) The reciprocal services method reapportions the costs of the service departments to other service departments using a system of simultaneous equations.  With its complications, the reciprocal method is the most accurate and equitable method for apportioning service departments' costs to production departments.

What are the purposes of the Democratic leadership style?​

Answers

Answer:

#It brings peace in the society.

#It increases the growth/development of a society.

#It enables civilians of a society to express themselves.

Answer:

Democratic leadership is a type of leadership in which the Group's members play a more participatory role.

Explanation:

This leadership style allows everyone to participate, discuss ideas, hear their views, and encourage debate. However, the group leader still needs guidance and guidance to achieve the goals and goals.

Members of the Group are encouraged to share opinions and ideas, even if the leader retains the last say in decisions.Group members feel more committed to the process.Creativity is promoted and recompensed.

As there is group engagement and discussion, more thoughts and ideas lead to better ideas and solutions, the main benefit of a democratic leadership style.

The participants in a group participate more in and engage in projects that increase their investment in the final results. In essence, they care more and increase productivity.

The following is the data for Lauren Enterprises:
Selling and administrative expenses $75,000
Direct materials used 265,000
Direct labor (25,000 hours) 300,000
Factory overhead application rate $16 per DLH
Inventories
Beginning Ending
Direct materials $50,000 $45,000
Work in process 75,000 90,000
Finished goods 40,000 25,000
What is the cost of goods manufactured?
a. $1,115,000
b. $965,000
c. $955,000
d. $950,000

Answers

Answer:

b. $965,000

Explanation:

Calculation of Cost of Goods Manufactured

Particulars                                      Amount

Direct material used                     $265,000

Direct labor                                   $300,000

Factory overhead                         $400,000

Total manufacturing cost           $965,000

Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report. Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss's time is $1,200. Assume that Iris and Daphne do not know each other. Which of the following statements is true?

a. only Iris will purchase Joss's services and Joss will undertake the job for her.
b. only Daphne will purchase Joss's services and Joss will undertake the job for her.
c. both Iris and Daphne will purchase Joss's services and Joss will undertake the job.
d. both Iris and Daphne will want to purchase Joss's services but Joss will not be willing to undertake the job.

Answers

Answer: d. both Iris and Daphne will want to purchase Joss's services but Joss will not be willing to undertake the job.

Explanation:

Iris will want Joss's services but they will be unable to afford them as Iris is only willing to pay $500 whereas Joss wants $1,200 for the job.

The same goes for Daphne who is only willing to pay $800.

Both of them will therefore want to hire Joss but will be unable to.

Joss could however charge both of them their willingness to pay and then sum the cash up and give them both the research whilst still making a profit.

The following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1 (35% completed) 5,000 units Completed units during June 64,500 units Ending inventory (63% complete) 4,400 units What is the number of material equivalent units of production in the June 30, Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process?
a. 4,400 units
b. 59,500 units
c. 68,900 units
d. 63,900 units

Answers

Answer:

d. 63,900 units

Explanation:

Particulars                                     Unit

Beginning inventory                        -

Units started and completed      59,500 [64,500 - 5,000]

Closing WIP for materials            4,400

Equivalent units for materials   63,900

So, the number of material equivalent units of production in the June 30, Finishing Department inventory is 63,900 units

Bow-Wow Company manufactures a product with a unit variable cost of $50 and a unit sales price of $88. Fixed manufacturing costs were $240,000 when 10,000 units were produced and sold. The company has a one-time opportunity to sell an additional 1,000 units at $70 each in a foreign market which would not affect its present sales. If the company has sufficient (excess) capacity to produce the additional units, acceptance of the special order would affect net income as follows:

a. Income would decrease by $4,000.
b. Income would increase by $4,000.
c. Income would increase by $70,000.
d. Income would increase by $20,000.

Answers

20,000 dollars at least could be it

At the end of the first year of operations, 21,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:

Direct materials $30
Direct labor 18
Fixed factory overhead 22
Variable factory overhead 14

Required:
Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.

Answers

Answer and Explanation:

The computation of the cost of the finished goods inventory reported is as follows:

Absorption costing is

= ($30  + $18 + $22 + $14) × 21,500 units

= $1,806,000

And,

Variable costing is

= ($30 + $18 + 14) × 21,500

= $1,333,000

In this way the cost of the finished goods inventory should be determined

Front Company had net income of $73,500 based on variable costing. Beginning and ending inventories were 900 units and 1,400 units, respectively. Assume the fixed overhead per unit was $7.95 for both the beginning and ending inventory. What is net income under absorption costing

Answers

Answer:

$77,475

Explanation:

Calculation to determine net income under absorption costing

Using this formula

Net income=Net income+(Ending inventories×fixed overhead per unit)- (Beginning Inventories × Fixed overhead per unit)

Let plug in the formula

Net income=$73,500 + (1,400 units x $7.95) - (900 x $7.95)

Net income=$73,500+$11,130-$7,155

Net income=$77,475

Therefore net income under absorption costing is $77,475

On January 1, 2016, Tessa loaned $12,000 to another company on a three-year, 4% note. No interest was accrued in 2016. Cash will not be received for the interest until the end of the three-year period. The error was discovered before adjusting and closing entries were posted on December 31, 2017. Ignoring income taxes, what should be the correct journal entry on December 31

Answers

The journal entry is as follows:

On December 31

Interest Receivable ($12,000 × 4% × 2 years) $960  

        To Interest Revenue ($12,000 × 4% × 1 year)  $480

        To Retained Earnings ($12,000 × 4% × 1 years  $480

(Being the correct journal entry is recorded)

Here the interest receivable should be debited as it increased the assets and credited the interest revenue & the retained earnings as it increased the revenue and the stockholder equity

Therefore we can conclude that the above journal entry should be recorded.

Learn more about the journal entry here: brainly.com/question/17439126

A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $120,000, and the following quantities of product and sales revenues were produced.
Product Pounds Price per Pound
Feed 100,000 $ 0.70
Flour 50,000 2.20
Starch 20,000 1.00
How much of the $120,000 cost should be allocated to flour if the value basis is used?
a) $24,500.
b) $84,000.
c) $66,000.
d) $70,000.
e) $200,000.

Answers

Answer:

c) $66,000.

Explanation:

The computation is shown below:

The value allocated is as follows:

Feed (100,000 × 0.7)=70,000

Flour (50,000 × 2.2)=110,000

Starch (20,000 × 1)=20,000

Total 200,000

Now allocation to the flour is

= (110,000 ÷ 200,000 × 120,000)

= $66,000

hence, the option c is correct

The Assembly Department produced 1,000 units of product during March. Each unit required 1.25 standard direct labor hours. There were 1,300 actual hours used in the Assembly Department during March at an actual rate of $12 per hour. The standard direct labor rate is $12.5 per hour.

Required:
Assuming direct labor for a month is paid on the fifth day of the following month, journalize the direct labor in the Assembly Department on March 31.

Answers

Answer:

Debit Work in process for $15,625

Debit Direct labor time variance for $625

Credit Direct labor rate variance for $650

Credit Wage payable for $15,600

Explanation:

Before preparing the journal, the following calculations are done first:

Wage payable = Actual hours * Actual rate per hour = 1,300 * $12 = $15,600

Direct labor time variance = (Actual hours - Standard hours) * Standard direct labor rate = (1,300 - (1,000 * 1.25)) * $12.50 = $625 Unfavorable

Note: Direct labor time variance is Unfavorable because Actual hours is greater than Standard hours.

Direct labor rate variance = (Actual rate - Standard rate) * Actual hours = ($12 - $12.50) * 1,300 = -$650 Favorable

Note: Direct labor rate variance if Favorable because Actual rate is lower than the Standard rate.

Work in process = Wage payable + Absolute value of direct labor rate variance - Direct labor time variance = $15,600 + $650 - $625 = $15,625

The journal entries will now look as follows:

Date           Particulars                                         Debit ($)           Credit ($)  

Mar. 31       Work in process                                  15,625

                  Direct labor time variance                      625

                  Direct labor rate variance                                                 650

                  Wage payable                                                               15,600

                  (To record the direct labor in the Assembly Department.)      

If contribution margin is $220000, sales is $400000, and net income is $180000, then variable and fixed expenses are:________

Answers

Answer:

Total variable cost= $180,000

Fixed costs= $40,000

Explanation:

Giving the following information:

Contribution margin= $220,000

Sales= $400,000

Net income= $180,000

The contribution margin formula is as follow:

Total Contribution margin= sales - total variable cost

Therefore, we need to isolate the total variable cost and replace the variable with the data:

Total variable cost= sales - total contribution margin

Total variable cost= 400,000 - 220,000

Total variable cost= $180,000

Finally, the fixed costs:

Fixed costs= total contribution margin - net income

Fixed costs= 220,000 - 180,000

Fixed costs= $40,000

When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, dS/dt=rS, where r is the annual rate of interest.
a) Find the amount of money accrued at the end of 5 years when $6000 is deposited in a savings account drawing 534% annual interest compounded continuously. (Round your answer to the nearest cent.)
b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.)
c) Use a calculator to compare the amount obtained in part a) with the amount S=6000(1+14(0.0575))5(4) that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)

Answers

Answer:

See explanation

Explanation:

Given that;

A = P(1 + r/n)^nt

Where;

P= $6000

r = 5 3/4%

t = 5 years

n= 1

A = 6000(1 + 0.0575)^5

A= $ 7935

b) What time will A become $12,000

12000 = 6000(1 + 0.0575)^t

12000/6000 = (1 + 0.0575)^t

2 = (1 + 0.0575)^t

Take logarithm of both sides

log2 = t log(1 + 0.0575)

t= log2/log(1 + 0.0575)

t= 0.3010/0.0243

t = 12 years

c) when compounded quarterly;

S= 6000(1 + 1/4(0.0575))^(5)(4)

S= $7982

The amount when interest is compounded quarterly is higher than when it is compounded annually because the interest increases as the number of compounding periods increases.

Prove shylock is stubborn​

Answers

Because I said so. Could be a right answer

Emmitt uses his leadership and position to produce effects on others and influence his followers. What term is used to describe this ability of leadership?
a. Coercion
b. Force
c. Power
d. Authority

Answers

Answer:

c. Power

Explanation:

Leadership can be defined as a process which typically involves motivating, encouraging and inspiring employees working under an individual to be innovative and create positive changes that will foster growth and enhance the success of a business firm or company in the future.

A leader can be defined as an individual who is saddled with the responsibility of controlling, managing and maintaining a group of people under him or her. Some types of power expressed by leaders are referent power, legitimate power, coercive power, etc.

Generally, leaders use their powers to get other people to follow them. Some forms of power result from a formalized position in the organization while others are derived from personal characteristics or knowledge.

In this scenario, Emmitt uses his leadership and formal position to produce effects on others and influence his followers. Thus, the terminology which is used to describe Emmit's ability of leadership is power.

In conclusion, power is based on three (3) main factors, which are leader, follower and situation.

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