Answer:
The amount of job costs added to Work in Process Inventory during October is $26,950
Explanation:
Computation of manufacturing overheads is given below:
Manufacturing Overheads=Direct Labor × 200%
=($3,400 + $5,500) × 150%
=$8,900 × 150%
=$13,350
Job Cost = Direct Materials+ Direct Labor+ Overheads Cost
=($1,900+$2,400) + ($3,400+$5,900) + $13,350
=$4,300 + $9,300 + $13,350
=$26,950
A class of stock that provides no preference rights to shareholders Answer 2 The number of shares currently held by stockholders Answer 3 The number of shares sold to stockholders Answer 4 The account used to record the difference when issue price exceeds par value of stock Answer 5 The maximum number of shares a company can issue to shareholders Answer 6 A financial institution that records and maintains records of another company's stockholders. Answer 7 A class of stock having first rights to dividends of a corporation
Answer: Please refer to Explanation.
Explanation:
A class of stock that provides no preference rights to shareholders. COMMON STOCK.
The number of shares currently held by stockholders. OUTSTANDING SHARES.
The number of shares sold to stockholders. ISSUED SHARES.
The account used to record the difference when issue price exceeds par value of stock. PAID-IN CAPITAL IN EXCESS OF PAR.
The maximum number of shares a company can issue to shareholders. AUTHORIZED SHARES.
A financial institution that records and maintains records of another company's stockholders. TRANSFER AGENT.
A class of stock having first rights to dividends of a corporation. PREFERRED STOCK.
[10 points] Suppose Wilwaukee Telecom offers its users the option of paying either (a) $2.00 per minute for telephone service or (b) a $125 flat charge for a year of unlimited toll-free calls. Consider a customer with an annual demand for telephone service of P = 11 – 0.1Q, where P is the price per minute and Q is the number of minutes of calls made per year. Calculate the consumer surplus for each of the plans (a) and (b).
Answer:
For plan A, P = 2.
Then from demand curve, 2 = 11-.1Q
So .1Q = 9
Q* = 90
B) under plan b, P = zero
So make 11 = .1Q
Q* = 110
Now Consumer surplus from a)
CS = .5*(11-2)*90 = ∆ABC
= .5*9*90 = 405
From b)
CS = .5*11*110 - 125 = ∆ ADE - fixed fee
= 605-125 = 480
Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-maximizing level of output. How will the market adjust over time? Firms will exit the market, causing price to fall until positive profits are eliminated. Firms will exit the market, causing price to rise until losses are eliminated. Firms will enter the market, causing price to rise until losses are eliminated. Firms will enter the market, causing price to fall until positive profits are eliminated.
Answer: Firms will exit the market, causing price to rise until losses are eliminated
Explanation:
When there is a decrease in demand in a Perfectly Competitive Market, firms will have to start producing at a lower Quantity to manage their Marginal cost. This leads to Economic losses on their part in the short run.
In the long run however, should the situation remain the same, the new price would be less than their Average Cost which would deepen Economic losses. Firms would respond by exiting the market in the long run.
As the firms exit, the supply curve shifts left as supply drops. This drop in supply leads to a price rise. The exits will continue until enough firms leave that the market's remaining firms will stop suffering economic losses.
A brown-eyed father and a green-eyed mother have a 25% chance of having a green-eyed child. What is the probability that, in a family of four children, three of them have green eyes?
a.0.421 875
c 0.011 718 75
b. 0046 875
d. 0.1875
Answer:t
Explanation:
Wehrs Corporation has received a request for a special order of 9,300 units of product K19 for $46.80 each. The normal selling price of this product is $51.90 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials $ 17.60 Direct labor 6.90 Variable manufacturing overhead 4.10 Fixed manufacturing overhead 7.00 Unit product cost $ 35.60 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product K19 that would increase the variable costs by $6.50 per unit and that would require a one-time investment of $46,300 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: Determine the effect on the company's total net operating income of accepting the special order.
Answer:
Effect on income= $62,510 increase
Explanation:
Giving the following information:
Offer= 9,300 units of product K19 for $46.80 each.
Direct materials $ 17.60
Direct labor $6.90
Variable manufacturing overhead $4.10
The customer would like some modifications made to product K19 that would increase the variable costs by $6.50 per unit and that would require a one-time investment of $46,300 in special molds that would have no salvage value.
Because it is a special offer and there is unused capacity, we will take into account only the incremental fixed costs.
First, we need to calculate the total cost of the offer:
Unitary variable cost= 17.6 + 6.9 + 4.1 + 6.5= $35.1
Total variable cost= 35.1*9,300= $326,430
Total fixed costs= 46,300
Total cost= $372,730
Finally, we can determine the effect on income:
Effect on income= 9,300*46.8 - 372,730
Effect on income= $62,510 increase
You are the CEO and Manager of MathFair (a Math based theme park, obviously) that charges: children $2, adults $5, and vets $3. You are looking over the books for last weekend. 1,900 people came to the park. You took in $6,300. There were 100 unaccompanied children (that is, the number of children was 100 more than the number of adults and vets combined). How many children, adults, and vets visited Math Fair last weekend
Answer:
700 adults
800 children
400 vets
Explanation:
children $2
adults $5
vets $3
1,900 came to the park, total revenue = $6,300
number of children was 100 more than adults
Let:
C = number of children
A = number of adults
V = number of vets
2C + 5A + 3V = 6,300
C + A + V = 1,900
C = A + 100 (we can replace C with A)
2(A + 100) + 5A + 3V = 6,300 ⇒ 2A + 200 + 5A + 3V = 6,300
7A + 3V = 6,100
A + 100 + A + V = 1,900 ⇒ 2A + V + 100 = 1,900
2A + V = 1,800
7A + 3V = 6,100
2A + V = 1,800 ⇒ V = 1,800 - 2A (we can replace V)
7A + 3 (1,800 - 2A) = 6,100
7A + 5,400 - 6A = 6,100
A = 6,100 - 5,400 = 700
C = A + 100 = 800
V = 1,900 - 700 - 800 = 400
Selected information from Frosty Freeze Corporation's accounting records and financial statements for 2022 is as follows ($ in millions): Cash paid to acquire machinery$34 Reacquired Peridot common stock 54 Proceeds from sale of land 93 Gain from the sale of land 54 Investment revenue received 73 Cash paid to acquire office equipment 87 In its statement of cash flows, Frosty Freeze should report net cash outflows from investing activities of: Multiple Choice $101 million. $28 million. $80 million. $33 million.
Answer:
$45 million
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
An increase in assets other than cash is an outflow of cash while an increase in liabilities is an inflow of cash.
Hence, the net cash outflows from investing activities (in $'million)
= -$34 + $93 + $73 - $87
= $45
Assess the benefits and drawbacks of the high-speed rail project. In your opinion, do benefits outweigh drawbacks, or vice versa? Why? Justify your answer. What are the implications of starting a project based on tenuous projections that may or may not come true 10 years from now? Could you justify the California high-speed rail project from the perspective of a massive public works initiative? In other words, what other factors enter into the decision of whether to pursue a high-speed rail project? Why are they important?
Answer:
The benefits of a High Speed Rail in California:
It becomes a feasible alternative to air travel, because it can be either cheaper, or even faster, since passengers do not have to spend as much time on a train station as they do on an airport.If demand is high enough, state highways can become less congested, because many people who would otherwise travel by car, would take a high speed train instead.Because the trains are electric, they are likely to help reduce pollution.The cons would be:
We cannot know for sure how many people would take the high speed trains. Demand could not be high enough to justify the cost.The line would be very costly.It could end up benefit only a small section of the population who would take the trains, or who travel often.I believe that the benefits outweigh the drawbacks, as can be seen in most countries where high speed lines have been made between large cities. For example, in Spain, the line between Madrid and Barcelona is profitable. The same would likely happen for a line between Los Angeles and San Francisco.
What are the implications of starting a project based on tenuous projections that may or may not come true 10 years from now?
If demand projections are tenous, there is always the possiblity that the high speed line could not be profitable. However, this risk can be lowered if the line is made between highly populated cities.
Could you justify the California high-speed rail project from the perspective of a massive public works initiative?
Yes, a high speed rail would be a project that could massively impact California. The benefits of its operation could outweight the cost.
In other words, what other factors enter into the decision of whether to pursue a high-speed rail project?
As I said before, the most important factor is to construct line between highly populated cities in order to reduce the risk of not having enough demand. It has been demonstrated around the world, in Spain, in Italy, in Japan, in China, that high speed lines that connect very populated regions, can be profitable.
The benefits of a High Speed confine California:
It becomes a feasible alternative to air, because it may be either cheaper, or perhaps faster since passengers don't must spend the maximum amount of time on a railroad terminal as they are doing at an airport.
High Speed Demand of CaliforniaIf demand is high enough, state highways can abate congested, because many of us who would otherwise locomote car, would take a high-speed train instead.
Because the trains are electric, they're likely to assist reduce pollution.
The cons would be: We cannot know obviously what percentage of people would take the high-speed trains. Demand couldn't be high enough to justify the price.
The line would be very costly.
It could find yourself benefit only a little section of the population who would take the trains, or who travel often.
I believe that the advantages outweigh the drawbacks, as are often seen in most countries where high-speed lines are made between large cities. for instance, in Spain, the road between Madrid and Barcelona is profitable. the identical would likely happen for a line between l. a. and urban center.
If demand projections are tenuous, there's always the possibility that the high-speed line couldn't be profitable. However, this risk will be lowered if the road is formed between highly populated cities.
Yes, a high-speed rail would be a project that might massively impact California. the advantages of its operation could out weight the value.
As I said before, the foremost important factor is to construct a line between highly populated cities to cut back the danger of not having enough demand. it's been demonstrated around the world, in Spain, in Italy, in Japan, in China, that top speed lines that connect very populated regions may be profitable.
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On January 1, a company issued and sold a $408,000, 9%, 10-year bond payable, and received proceeds of $403,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:
Answer and Explanation:
The Journal entry is shown below:-
Bond interest expense Dr, $18,610
To Cash $18360
To Discount on bonds $250
(Being first interest payment is recorded)
For recording the first interest payment we simply debited the bond interest expenses as it increased the expenses and we credited cash and discount on bonds as it reduced the assets and the discount should be credited
Working Note
Total discount on bonds issued = Sold bonds - Received proceeds
= $408,000 - $403,000
= $5,000
Amortization of Semi Annual Discount = Total discount on bonds issued ÷ Number of periods
= $5,000 ÷ 20
= $250
Cash interest paid = Sold bonds × Interest rate × From Jan to June ÷ Total number of months in a year
= $408,000 × 9% × 6 ÷ 12
= $18,360
Total Interest expense = Cash interest paid + Amortization of Semi Annual Discount
= $18,360 + $250
= $18,610
The December 31, 2020 inventory of Carla Vista Company consisted of four products, for which certain information is provided below. Product Original Cost Replacement Cost Estimated Disposal Cost Expected Selling Price Normal Profit on Sales A $30.00 $28.00 $8.00 $44.00 25.00% B $44.00 $42.00 $10.00 $54.00 20.00% C $124.00 $119.00 $29.00 $210.00 30.00% D $18.00 $15.40 $6.00 $30.00 20.00% Using the lower-of-cost-or-market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2020. (Round answers to 2 decimal places, e.g. 52.75.)
Answer:
Product Lower of cost or market value
A $28
B $42
C $119
D $18
Explanation:
Particulars a b c d e f = d - c
Product Cost Replacement cost Estimated disposal cost Estimated selling price Normal profit in sales Ceiling
A $30 $28 $8 $44 25% $36
B $44 $42 $10 $54 20% $44
C $124 $119 $29 $210 30% $181
D $18 $15.4 $6 $30 20% $24
Product g = f - d × e h = middle value of b , f ,g i j = lower of I and h
Product Floor Designated market value Cost Lower of cost or market value
A $25 $28 $30 $28
B $33.2 $42 $44 $42
C $118 $119 $124 $119
D $18 $18 $18 $18
As we know that the inventory should be recognized at lower value of cost or market value and the same is considered
When I called about the cost of these items, it was implied that my total would only be $35.00
Answer:
Each Item Cost 11.6666667
Explanation:
35.00 / 3 = 11.6666667
So each item cost about 11.66 or 11.67
On December 31, 2017, Berclair Inc. had 560 million shares of common stock and 5 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 168 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $1,050 million.
Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2017, for 30 million common shares at an exercise price of $56 per share. During 2018, the market price of the common shares averaged $70 per share.
Required:
a. Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2018.
Answer:
Basic Earnings Per Share = $1,44
Diluted Earnings Per Share = $1,38
Explanation:
Basic Earnings Per Share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Shares
Calculation of Earnings Attributable to Holders of Common Stock
Net income for the year ended December 31, 2018, $1,050,000,000
Less cumulative preferred stock dividend ($45,000,000)
Earnings Attributable to Holders of Common Stock $1,005,000,000
Calculation of Weighted Average Number of Common Shares
1 January Outstanding Common Shares 560,000,000
March 1 - Purchases (10/12×168,000,000) 140,000,000
October 1 - Sold (3/12×4,000,0000) (1,000,000)
Weighted Average Number of Common Shares 699,000,000
Basic Earnings Per Share = $1,005,000,000/699,000,000
= $1,44
Diluted Earnings Per Share = Adjusted Earnings Attributable to Holders of Common Stock / Adjusted Weighted Average Number of Common Shares
Calculation of Adjusted Weighted Average Number of Common Shares
Weighted Average Number of Common Shares (Basic) 699,000,000
Incentive Stock Options 30,000,000
Adjusted Weighted Average Number of Common Shares 729,000,000
Diluted Earnings Per Share = $1,005,000,000/ 729,000,000
= $1,38
Ahmed, a lawyer, sold his car to Carlos. Has an implied warranty of merchantability been created by this transaction? No, because Ahmed is not a merchant. Yes, because if the car is defective Carlos will have a right to return in to Ahmed. No, Ahmed has not implied so either orally or in written. Yes, because a car is "goods" and the Uniform Commercial Code applies to contracts for the sale of goods.
Answer:
A. No, because Ahmed is not a merchant.
Explanation:
Implied warranty of merchantability is a law in contract which states that when there is a transaction between a seller (the merchant), and a buyer, there is an unwritten guarantee from the seller, that the product meets up to the ordinary standards of care. This means that the goods must be fit to do what the merchant says it will do. Therefore, if the seller finds it defective, he could return it to the seller. and if the seller refuses to make a change, a legal case could be established. The merchant by law is a wholesaler or retailer, who sells goods in which he has expertise or special skills.
Ahmed in the question could be argued in court to not be a merchant of cars and as such, has no expertise with which he can make a guarantee for the car being sold to Carlos.
In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 150 units at $7 on January 1, (2) 590 units at $8 on January 8, and (3) 890 units at $10 on January 29. M7-12 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under Periodic LIFO [LO 7-3] Assume 1,110 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under the LIFO. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.
Answer:
Goods available for sale = $14,670
Ending inventory = $9,470
Cost of goods sold = $5,200
Explanation:
As per the data given in the question,
Total units purchased = 150 + 590 + 890 = 1,630
Ending inventory = 1,110
Sales units = 1,630 units - 1,110 units = 520 units
Goods available for sale = 150 × $7 + 590 × $8 + 890 × $10
= $14,670
Ending inventory = 150 × $7 + 590 × $8 + 370 × $10
= $9,470
Cost of goods sold = $14,670 - $9,470
= $5,200
Beverage International reports net credit sales for the year of $252,000. The company's accounts receivable balance at the beginning of the year equaled $48,000 and the balance at the end of the year equaled $58,000. What is Beverage International's receivables turnover ratio
Answer:
4.8
Explanation:
The formular to find the receivable turn over ratio is
= net credit sales/average.
account receivable
The values given are:
Net credit sales for the year=$252,000
Company account receivable balance at the beginning of the year= $48,000
Company account receivable balance at the end of the year= $58,000
To find the average account receivable we will sum both balance and divide by 2
= 48,000+58,000/2
= 106,000/2
= $53,000
Average account receivable is $53,000
Therefore, receivable turn over ratio is
= $252,000/$53,000
= 4.8
Thus, Beverage international's receivables turn over ratio is 4.8
Under the allowance method of accounting for uncollectible accounts, a. the cash realizable value of accounts receivable is greater before an account is written off than after it is written off. b. Bad Debts Expense is debited when a specific account is written off as uncollectible. c. the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off. d. Allowance for Doubtful Accounts is closed each year to Income Summary.
Answer:
c. the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off.
Explanation:
Under the allowance method of accounting for uncollectible accounts, the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off and bad debt expenses is debited.
This means that in the period in which an account previously written off is collected, the income is unaffected.
Also, under the allowance method of accounting, total assets will remain unchanged when a particular account is being written off.
Alex Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2018, Alex Company reports the following activity: Sales on account $2,100,000 Cash sales 1,110,000 Decrease in accounts receivable 915,000 Increase in accounts payable 108,000 Increase in inventory 72,000 Cost of good sold 1,575,000 What is the amount of cash collections from customers reported by Alex Company for the year ended December 31, 2018
Answer:
The amount of cash collections from customers reported by Alex company for the year ended December 31, 2018 is $4,125,000.
Explanation:
Cash collection refers to the collection of cash from from an individual or a business whom invoice has been issued to. Any invoice unpaid are noted as being outstanding.
Cash collection fomular is therefore;
Cash collection = Sales on account + Cash sales + Decrease in accounts receivable
=$2,100,000 +$1,110,000 + $915,000
=$4,125,000
TechSolvers produces 8-foot USB cables. During the past year, the company purchased 500,000 feet of plastic-coated wire at a price of $0.25 per foot. The direct materials standard for the cables allows 8.5 feet of wire at a standard price of $0.23. During the year, the company used a total of 535,000 feet of wire to produce 63,000 8-foot cables. Calculate TechSolvers’ direct materials quantity variance for the year. (Round answer to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Answer:
$8050
Explanation:
The direct materials quantity variance is the difference between the standard cost and the actual quantity at standard price. This variance in quantity is as a result of the difference between the actual and expected quantity of materials used. The formula for direct materials quantity variance is given as:
Direct materials quantity variance = Standard Price x (Standard Quantity – Actual Quantity)
Given that: Standard Price = $0.23, Standard Quantity = 535000, Actual Quantity = 500000.
Direct materials quantity variance = $0.23 × (535000 - 500000) = $8050
Moto Win Auto Superstore is thinking about offering a two-year limited warranty for $978 on all new cars of a certain model. The terms of the warranty would be that Moto Win would replace the car free of charge under certain, specified conditions. Replacing the car in this way would cost MotoWin $16,300. Suppose that under the warranty, there is a 6% chance that Moto Win would have to replace the car one time and a 94% chance they wouldn't have to replace the car. If MotoWin knows that it will sell many of these warranties, should it expect to make or lose money from offering them? How much?
Answer:
they would expect to lose 58.68 dollars on each warranty visit.
Explanation:
We can use the following method to solve the given problem in the question;
Solution
Expected value for Motowin = $978*0.94 - $16300*0.06 = - $ 58.68
Hence, In the long run, they would expect to lose 58.68 dollars on each warranty visit.
We can use the following method to solve the given problem in the question;
Expected value for Motowin = $978*0.94 - $16300*0.06
Expected value for Motowin = - $ 58.68
Therefore, in the long run, they would expect to lose 58.68 dollars on each warranty visit.
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The following information was drawn from the Year 1 accounting records of Ozark Merchandisers:
a. Inventory that had cost $17,400 was sold for $31,320 under terms 2/20, net/30.
b. Customers returned merchandise to Ozark five days after the purchase.
c. The merchandise had been sold for a price of $784.
d. The merchandise had cost Ozark $560.
e. All customers paid their accounts within the discount period.
f. Selling and administrative expenses amounted to $3,132.
g. Interest expense paid amounted to $240.
h. Land that had cost $6,400 was sold for $8,640 cash.
Required:
1. Determine the amount of net sales.
2. Prepare a multistep income statement.
Answer and Explanation:
1. The computation of net sales is shown below:-
Net sales = Gross Sales - Sales Returns - Sales Discounts
= $31,320 - $784 - ($$31,320 - $784) × 2%)
= $31,320 - $784 - $610.72
= $29,925.28
2. The preparation of multistep income statement is shown below:-
Income Statement
Net sales revenue $29,925.28
Cost of Goods Sold $16,840
($17,400 - $560)
Gross Profit $13,085.28
Selling and Administrative
Expenses $3,132
Income from Operations $9,953.28
Other Income / Expense
Gain on sale of land $2,240
($8,640 - $6,400)
Interest Expense $240 $2,000
Net income $11,953.28
Are monopolies economically efficient? Consider the market to the right. Compared to the perfectly competitive outcome, what would be the change in surplus if instead the market had one supplier that was a monopoly?
Answer:
Deadweight loss (Triangle between all three lines, hits all three points).
Explanation:
This is explained to be triangle between all three lines as it hits all three points involved.
It can also be explained to be Harberger's triangle in the sense that the loss occurring in the trade of a good or service due to market power of buyers or sellers or a government intervention, or other bodies concerned is lost due when it is not produced maximumly to reach everyone who meeds it.
Deadweight loss, also can be a measure of lost economic efficiency when the socially optimal quantity of a good or a service is not produced. Non-optimal production can be caused by monopoly pricing in the case of artificial scarcity, a positive or negative externality, a tax or subsidy, or a binding price ceiling or price floor such as a minimum wage.
After a retiring from a successful business career, you would like to make a donation to your university. This donation will go into the school’s endowment pool and the returns generated from the donation will support the salary of a new professor in the business school on a perpetual basis. The university expects to earn returns of 5.5% on its endowment pool. You may assume that any distributions to support the salary will be made annually.
Part A) You can make a donation today (t=0) in the amount of $2,500,000. The first cash flow distribution from your donation to cover the professor's salary will take place in one year (at t=1). Which of the following is closest to the annual salary payment that can be made as a result of your donation?
A. $2,500,000
B. $454,545
C. $100,000
D. $137,500
Part B) After further discussions, the university determines that the employment agreement with the new professor will call for annual salary increases of 2%. Given this new requirement, and assuming the first salary distribution will still occur one year from today, what is the starting salary (at t=1) that can be supported with your $2,500,000 donation?
A. $50,000
B. $187,500
C. $140,250
D. $87,500
Answer:
Part A) D. $137,500
Part B) C. $140,250
Explanation:
Part A) The computation of annual salary payment is shown below:-
Annual salary = Donation made × Interest rate
= $2,500,000 × 5.5%
= $137,500
So, for computing the annual salary we simply multiply the donation made with interest rate.
Part B) The computation of starting salary is shown below:-
Starting salary = Annual salary + Increased annual salary
= $137,500 + 2%
= $140,250
Therefore for computing the starting salary we simply added the annual salary with increased annual salary.
Xion Co. budgets a selling price of $80 per unit, variable costs of $35 per unit, and total fixed costs of $270,000. During June, the company produced and sold 10,800 units and incurred actual variable costs of $351,000 and actual fixed costs of $285,000. Actual sales for June were $885,000. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)
Answer and Explanation:
The preparation of flexible budget report is shown below:-
Xion CO.
Flexible budget report
Flexible budget Actual results Variances Favorable/
Unfavorable
Sales $864,000 $885,000 $21,000 Favorable
(10,800 × $80)
(-) Variable
cost $378,000 $351,000 $27,000 Favorable
(10,800 × $35)
Contribution $486,000 $534,000 $48,000 Favorable
(-) Fixed cost $270,000 $285,000 $15,000 Unfavorable
Net income $216,000 $249,000 $33,000 Favorable
A strategic business unit (SBU) refers to:_________.
a. a single product or service identification code used to identify items for strategic marketing planning purposes.
b. a small number of people from different departments in an organization who are mutually accountable to accomplish a task or common set of performance goals.
c. a strategic product that has a unique brand, size, or price. a privately-owned franchise under the auspices of a larger group or organization bearing the same name.
d. a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.
Answer:
D.
Explanation:
Strategic Business unit is also popularly known as SBU. It is an independent entity of a large company. This entity have its own aims and visions, and operates individually but report its working to the headquarter. The aim of this entity is target market.
An example of SBU is Samsung. The company have different categories of product under one name. It is an electron company that makes phones, televisions, refrigators, camera, etc. All these sub-categories or divison of Samsung are SBU.
From the given options the correct one is D.
Evanson Company expects to produce 512,000 units of their product during the year. Monthly production is expected to range from 40,000 to 80,000 units. The company has budgeted manufacturing costs per unit to be as follows: Direct materials $ 7 Direct labor 8 Variable manufacturing overhead 9 Fixed manufacturing overhead 3 Prepare a flexible manufacturing budget using 20,000 unit increments.
Answer:
Total Cost using 20,000 increments is as follows:
40,000 units - $1,080,000 (Total Cost)
60,000 units - $1,620,000 (Total Cost)
80,000 units - $2,160,000 (Total Cost)
Explanation:
Monthly Flexible Manufacturing Budgets
Units Produced 40,000 60,000 80,000
Direct Material (7/unit) 280,000 420,000 560,000
Direct Labor (8/unit) 320,000 480,000 640,000
Variable Overhead (9/unit) 360,000 540,000 720,000
Total Variable Cost 960,000 1,440,000 1,920,000
Fixed Overhead (3/unit) 120,000 180,000 240,000
Total Cost $1,080,000 $1,620,000 $2,160,000
Determine whether each of the following events causes a shift of a curve or a movement along a curve in the short run. Indicate which curve is involved and the direction of the change. As a result of an increase in the value of the dollar relative to other currencies, American producers pay less in dollar terms for foreign steel, a major commodity used in production. This will cause a the aggregate curve to the .
Answer:
Check the explanation
Explanation:
Increase in value of dollar has made the foreign steel (a major commodity used in production) cheaper for American producers.
This will reduce the cost of production of American Producers and would increase their profit-margin.
This will induce US firms to produce more and therefore there will be increase in short-run aggregate supply.
So, the given scenario will involve short-run aggregate supply curve and would shift the curve to the right.
Kindly check the attached image below to see the required graph -
Swift Company purchased a machine on January 1, 2010, for $500,000. At the date of acquisition, the machine had an estimated useful life of six years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2013, Swift determined, as a result of additional information, that the machine had an estimated useful life of eight years from the date of acquisition with no salvage. An accounting change was made in 2013 to reflect this additional information. What is the amount of depreciation expense on this machine that should be charged in Swift's income statement for the year ended December 31, 2013
Answer:
Swift Company should charge depreciation expense of $55,556 to income statement for the year ended December 31, 2013.
Explanation:
Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($500,000 - 0) / 6 years = $83,333 yearly depreciation expense.
Accumulated depreciation as at end of 20212 = $83,333 x 2 = $166,667
Net book value (NBV) becomes $500,000 - $166,667 = $333,333
New depreciation is ($333,333 - $0) / 6 years = $55,556 yearly depreciation expenses from 2013 onward.
Mr. Etemadi has prepared the following list of statements about service companies and merchandisers. Identify each statement as true or false.
1. Measuring net income for a merchandiser is conceptually the same as for a service company.
2. For a merchandiser, sales less operating expenses is called gross profit.
3. For a merchandiser, the primary source of revenues is the sale of inventory.
4. Sales salaries and wages is an example of an operating expense.
5. The operating cycle of a merchandiser is the same as that of a service company.
Answer:
Explanation:
1. Measuring net income for a merchandiser is conceptually the same as for a service company. TRUE
2. For a merchandiser, sales less operating expenses is called gross profit.
FALSE
For a merchandiser,sales subtracted from cost of goods sold is called gross profit.
3. For a merchandiser, the primary source of revenues is the sale of inventory.
TRUE
4. Sales salaries and wages is an example of an operating expense. TRUE
5. The operating cycle of a merchandiser is the same as that of a service company.
FALSE
A perpetual inventory system continuously leeps detailed records of the cost of the each purchase and sale. It shows the inventory that should be on hand for energy item.
Money's power to buy goods and services changes ________.
Answer:
...with rates of inflation.
Explanation:
The more that a particular currency appears in the market without any work (value) being associated with that currency, the smaller the value of that particular form of currency (For example, the U.S. dollar). When inflation is high, banks will increase interest rates on loans in order to get rid of some of the of the surplus currency in the market, bringing down inflation and increasing the total value of a particular form of currency.
Dax Pet Foods compiled the following information for the year for its dog division Average operating assets $3,500,000 Controllable margin $315,000 Dax’s corporate office expects the division to earn a minimum return of 8%. Suppose the dog division invests in a new machine that will produce a new dog food product. The machine is expected to generate $19,500 of controllable profit and will cost $150,000. If Dax buys the new machine, what happens to ROI?
Answer:$2836360
Explanation:
