Match the product cost variance with the manager most probably responsible. Some answers may be used more than once. Some answers may not be used.

1. Variable overhead cost variance
2. Direct matierals efficiency variance
3. Direct labor cost variance
4. Fixed overhead cost variance
5. Direct materials cost variance

CHOICES:

a. Human resources
b. Purchasing
c. Production

Answer:

Direct material price variance= $25,000 unfavorable

Explanation:

Giving the following information:

Standard price= $16

During March, Marks made 10,000 units of the product, using 50,000 pounds at a total purchase price of $825,000.

To calculate the direct material price variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Actual price= 825,000/50,000= $16.5

Direct material price variance= (16 - 16.5)*50,000

Direct material price variance= $25,000 unfavorable

Answer:

c. Report $10,000 revenue and expense | Disclose in the notes

Explanation:

Not-for-profit entities must report the fair value of all the goods they receive as donations. in this case, they would have to report the $10,000 worth of food received from a local supermarket. But they are not required to report the value of volunteer work, they only have to disclose it on the footnotes of their financial statements.

Answer:

prioritize goals according to their value to the organization

Explanation:

Goal setting is an action plan that is set to motivate someone towards achieving a goal. Individuals, organizations set goals as part of their personal development plans hence must be Specific, Measurable, Action oriented, Realistic and Timely(SMART).

With regards to the above scenario, prioritizing goals according to their value to the organization is wrong. While it is important to prioritize goals, such must however be made to align with the business's strategic objectives.

It is also important to stick to goals already set instead of constantly changing them. Sometimes too, customers put pressure on business owners to consider certain goals which might be beneficial; such should also be looked into after considering their pros and cons.

Answer:

$63

Explanation:

The computation of the expected common stock market price per share for the next year is shown below:

Price earning ratio = Share price ÷ earning per share

where

Price earning ratio is 7

Earning per share is

= (Net income - preference dividend) ÷ number of common shares outstanding

= {($45 million - $5 million) × (1 - 0.30) - $10 million)} ÷ 2 million shares

= $9

Now placing these values to the above formula

So, the expected common stock market price is

= 7 × $9

= $63

Answer:

Answers are calculated below

Explanation:

Financial ratios can be calculated according to their formulas. Both formulas and calculation are as follows

CURRENT RATIO

Current ratio = Current assets/current liabilities

Current ratio (2016) = $360,000/$250,000

Current ratio (2016) = 1.44

Current ratio (2017) = $450,000 / $300,000

Current ratio (2017) = 1.50

ACID RATIO

Acid ratio = (Current asset - inventory)/current liabilities

Acid ratio (2016) = (360,000 - 165,000)/250,000

Acid ratio (2016) = 0.78

Acid ratio (2017) = (450,000-225,000)/300,000

Acid ratio (2017) = 225,000/300,000

Acid ratio (2017) = 0.75

INVENTORY TURNOVER RATIO

Inventory turnover ratio = cost of good Sold / Average inventory

Inventory turnover ratio (2016) =  864,000/(360,000 ÷2)

Inventory turnover ratio (2016) = 864,000/180,000

Inventory turnover ratio (2016) = 4.80

Inventory turnover ratio (2017) = 1,023,750 / ( 390,000 ÷ 2)

Inventory turnover ratio (2017) = 1,023,750 / 195,000

Inventory turnover ratio (2017) = 5.25

DAYS SALE IN RECEIVABLE

Days sale in receivable = 365/Average receivable turnover ratio

Days sale in receivable (2016) = 365/ 12.67(w1)

Days sale in receivable (2016) = 28.81 days

Days sale in receivable (2017) =365/11.7(w1)

Days sale in receivable (2017) = 31.20 days

Working 1

Account receivable turnover ratio = Sales/ Average receivable

Account receivable turnover ratio (2016) = 1,752,000/138,288(w2)

Account receivable turnover ratio = 12.67 times

Account receivable turnover ratio (2017) = 1,642,500/140,351(w2)

Account receivable turnover ratio (2017) = 11.7 times

Working 2

Average receivable = (Opening + Closing) /2

Average receivable (2016) = (132,000 + 144,576) /2

Average receivable (2016) = 138,288

Average receivable (2017) = (144,576 +136,125 ) /2

Average receivable (2017) = 140,351

Answer:

A) Cash is debited for $294,000. and,

C) Common Stock is credited for $294,000.

Explanation:

When Shares are Issued for Cash, recognize the Assets of Cash (Debit) and also recognize an equity element - Common Stock (Credit).

Answer:

The company paid a lower cost per hour for labor than allowed by the standards.

Explanation:

The labour cost variance is the difference between the standard labour cost allowed for the actual hours worked and the actual labor cost for the same hours

The labour cost variance compares the actual cost  and the standard cost for the actual labour hours paid for.

Hence , Poseidon Marine Stores Company would have paid a sum for labour cost which is lower than the standard cost.

The company paid a lower cost per hour for labor than allowed by the standards.

Answer:

a. Journal Entry:

Investments in Debt securities (Dr.) $1500

Fair Value of Debt securities(Cr.) $1500

b. Equity Section:

Common Stock $65,000

Retained Earnings $22,000

Treasury Stock $13,400

Revaluation of Debt securities $1,500

Explanation:

Investments in AFS Debt securities 40,000

Fair value of the investment on 12/31/2018 is $41,500

The difference between fair value and reported value will be adjusted through journal entry. The difference is of $1500 (41,500 - 40,000) is the revaluation amount of the securities.

Answer:

1,768,913 new stocks

Explanation:

the company needs to raise amount needed to finance expansion plus SEC's filing and administrative fees = $74,000,000 + $825,000 = $74,825,000

net amount received per stock issued = stock price x (1 - underwriting fee) = $45 x (1 - 6%) = $42.30 per stock

the company needs to issue = $74,825,000 / $42.30 per stock = 1,768,912.53 = 1,768,913 new stocks

Answer:

The question is not complete, below is an example of the completely stated question:

A firm is producing 1,000 units at a total cost of $5,000. If it were to increase production to 1,001 units, its total cost would rise to $5,008. What does this information tell you about the firm?

a. Marginal cost is $5, and average variable cost is $8.

b. Marginal cost is $8, and average variable cost is $5.

c. Marginal cost is $5, and average total cost is $8.

d. Marginal cost is $8, and average total cost is $5.

Answer:

d. Marginal cost is $8, and average total cost is $5.  

Explanation:

Marginal cost of production is the change in cost, arising from the production of an additional unit of output. it is the cost of manufacturing one more unit of product. Mathematically, marginal cost is represented as:

[tex]Marginal\ cost = \frac{change\ in\ cost}{change\ in\ quantity\ produced} \\[/tex]

change in cost (ΔC) = C₂ - C₁ = 5,008 - 5,000 = 8

change in quantity produced = Q₂ - Q₁ = 1,001 - 1,000 = 1

[tex]Marginal\ cost = \frac{8}{1} = \$8[/tex]

∴Marginal Cost = $8

Average Total Cost (ATC) or average cost or unit cost is the total cost divided by the number of units produced. It is represented as

[tex]ATC =\frac{TC}{Q} \\where\\ATC = Average\ total\ cost\\\TC = Total\ cost\ = \$5,000\\Q = units\ of\ goods\ produced = 1,000\\[/tex]

∴ ATC = 5,000 ÷ 1,000 = $5

Answer:

$3,289.5

Explanation:

The computation of the amount of recorded interest expense for the first semiannual interest period is shown below:-

Amortization of premium = Premium amount ÷ Number of semi-annual periods

where

Premium amount = Par value - issue price

= $102,105 - $100,000

= $2,105

Number of semi-annual periods = 5 × 2

= 10 periods

Amortization of premium = $2,105 ÷ 10

= 210.5

Semi-annual interest expense = Face value × Coupon rate × (6 ÷ 12)

= $100,000 × 7% × (6 ÷ 12)

= $3,500

First semi-annual interest expense = $3,500 - 210.5

= $3,289.5

Answer:

7.4  

Explanation:

accounts receivable turnover  is ratio of total net sales and average account receivable.

accounts receivable turnover = total net sales/ average account receivable

Given

net sales = $821,400,

average accounts receivable = $111,000

accounts receivable turnover =$821,400/111,000 = 7.4  Answer

Answer:

enterprise value to EBITDA.

Explanation:

The computation of the value of the stock using P/E ratio is shown below:-

Stock value = (P/E ratio × EPS) × Number of shares outstanding

= (12.9 × $2.33) × 5.3 million

= 159.3021 million

Now, the computation of the value of the stock using EBITDA multiple is shown below:-

Stock value = (EBITDA multiple × EBITDA) - Net debt

= (7.1 × $29.3 million) - $125 million

= 208.03 - $125 million

= 83.03

There is no equivalent corporate debt. It is easier to make a comparison at the operating level and thus a better measure of valuation is the enterprise value to EBITDA.

Answer:

A. organizations affect and are affected by their external environments.

Explanation:

An organizational behavior can be defined as the study of people's opinions, feelings, actions and how people perceive an organization.

The open systems anchor of organizational behavior states that organizations affect and are affected by their external environments. The external environment comprises of factors such as;

1. Criteria set by the regulatory agencies where the organization is operating.

2. The state of the economy, either recessionary or inflationary.

3. The policies adopted by the government.

4. The investor's needs or requirements.

5. The culture of the business environment.

Answer:

the broker-dealer must notify the customer of the additional charges prior to executing the transaction

Explanation:

In such a scenario, the statement that would be completely true is that the broker-dealer must notify the customer of the additional charges prior to executing the transaction. Since the broker is acting on behalf of the customer, then the customer needs to be notified beforehand in order for him/her to be able to analyze and decide whether or not they still want to go ahead with the transaction.

Answer:

a. The answers are as follows:

(i) Expected of Return of Portfolio = 4%; and Beta of Portfolio = 0

(ii) Expected of Return of Portfolio = 6.25%; and Beta of Portfolio = 0.25

(iii) Expected of Return of Portfolio = 8.50%; and Beta of Portfolio = 0.50

(iv) Expected of Return of Portfolio = 10.75%; and Beta of Portfolio = 0.75

(v) Expected of Return of Portfolio = 13%; and Beta of Portfolio = 1.0

b. Change in expected return = 9% increase

Explanation:

Note: This question is not complete as part b of it is omitted. The complete question is therefore provided before answering the question as follows:

Suppose that the S&P 500, with a beta of 1.0, has an expected return of 13% and T-bills provide a risk-free return of 4%.

a. What would be the expected return and beta of portfolios constructed from these two assets with weights in the S&P 500 of (i) 0; (ii) 0.25; (iii) 0.50; (iv) 0.75; (v) 1.0

b. How does expected return vary with beta? (Do not round intermediate calculations.)

The explanation to the answers are now provided as follows:

a. What would be the expected return and beta of portfolios constructed from these two assets with weights in the S&P 500 of (i) 0; (ii) 0.25; (iii) 0.50; (iv) 0.75; (v) 1.0

To calculate these, we use the following formula:

Expected of Return of Portfolio = (WS&P * RS&P) + (WT * RT) ………… (1)

Beta of Portfolio = (WS&P * BS&P) + (WT * BT) ………………..………………. (2)

Where;

WS&P = Weight of S&P = (1) – (1v)

RS&P = Return of S&P = 13%, or 0.13

WT = Weight of T-bills = 1 – WS&P

RT = Return of T-bills = 4%, or 0.04

BS&P = 1.0

BT = 0

After substituting the values into equation (1) & (2), we therefore have:

(i) Expected return and beta of portfolios with weights in the S&P 500 of 0 (i.e. WS&P = 0)

Using equation (1), we have:

Expected of Return of Portfolio = (0 * 0.13) + ((1 - 0) * 0.04) = 0.04, or 4%

Using equation (2), we have:

Beta of Portfolio = (0 * 1.0) + ((1 - 0) * 0) = 0

(ii) Expected return and beta of portfolios with weights in the S&P 500 of 0.25 (i.e. WS&P = 0.25)

Using equation (1), we have:

Expected of Return of Portfolio = (0.25 * 0.13) + ((1 - 0.25) * 0.04) = 0.0625, or 6.25%

Using equation (2), we have:

Beta of Portfolio = (0.25 * 1.0) + ((1 - 0.25) * 0) = 0.25

(iii) Expected return and beta of portfolios with weights in the S&P 500 of 0.50 (i.e. WS&P = 0.50)

Using equation (1), we have:

Expected of Return of Portfolio = (0.50 * 0.13) + ((1 - 0.50) * 0.04) = 0.0850, or 8.50%

Using equation (2), we have:

Beta of Portfolio = (0.50 * 1.0) + ((1 - 0.50) * 0) = 0.50

(iv) Expected return and beta of portfolios with weights in the S&P 500 of 0.75 (i.e. WS&P = 0.75)

Using equation (1), we have:

Expected of Return of Portfolio = (0.75 * 0.13) + ((1 - 0.75) * 0.04) = 0.1075, or 10.75%

Using equation (2), we have:

Beta of Portfolio = (0.75 * 1.0) + ((1 - 0.75) * 0) = 0.75

(v) Expected return and beta of portfolios with weights in the S&P 500 of 1.0 (i.e. WS&P = 1.0)

Using equation (1), we have:

Expected of Return of Portfolio = (1.0 * 0.13) + ((1 – 1.0) * 0.04) = 0.13, or 13%

Using equation (2), we have:

Beta of Portfolio = (1.0 * 1.0) + (1 – 1.0) * 0) = 1.0

b. How does expected return vary with beta? (Do not round intermediate calculations.)

There expected return will increase by the percentage of the difference between Expected Return and Risk free rate. That is;

Change in expected return = Expected Return - Risk free rate = 13% - 4% = 9% increase

Answer:

1. $2,800

2. $40,000

Explanation:

1. The computation of cash dividends is paid during 2015 is shown below:-

                                      Retained earnings

Dividend paid               $2,800         Beginning balance   $8,400

($8,400 + $30,000

- $35,600)                                          Net income                $30,000

Total                              $2,800                                            $38,400

                                                          Ending balance         $35,600

Therefore cash dividends is paid during 2015 is 2,800

2. The computation of cash amount is paid to reduce the notes payable balance in 2015 is shown below:-

                                      Notes payable

Cash paid                        $40,000   Beginning balance   $69,000

($69,000 - $29,000)

Total                                 $40,000                                   $69,000

                                                         Ending balance       $29,000

Therefore cash amount is paid to reduce the notes payable balance

in 2015  is $40,000

Answer:

Explanation:

Consumer markets are where trade happens with consumption as the final aim. This means that in such markets, the end users are households as well as individual consumers who buy goods and services for their own use. Example; selling cars to people.

The Industrial Market is where trade happens between producers and manufacturers who want to turn the goods bought into finished goods or further processable goods. This is why it is also called the Business market.

In the Government market, the consumers or end users is the Government through it's various arms and levels such as state agencies at the Federal, state or municipal level.

Answer:

$96,154.20

Explanation:

We are to find the future value of the annuity

The formula for calculating future value = A (B / r)

B = [(1 + r)^n] - 1  

A = Amount

R = interest rate  

N = number of years

[(1.08)^9 - 1 ] / 0.08 = 12.487558

12.487558 x $7,700 = $96,154.20

Explanation:

Given: -

The number of ambulances is(m) =  2.

Arrival rate = 0.45 per hour

Service time = 2 per hour

Service rate =?

service time = 2 (Travel and assistance time averages two hours per call)

Therefore, Service rate will be 1/2 = 0.5 per hour.

a). System utilization(p) = arrival rate/mean of ambulances*service time

p = 0.45/2×0.5 = 0.45.

(b) :- The average number of customer waiting or waiting time for an ambulance is equal to:-

Arrival rate divided by the service rate ( on its corresponding service time as per table value)

I.e. Arrival time = 0.45 ÷ service rate =0.5

= 0.9 ( see table value for 0.9 with service rate as 2)

It comes to 0.229.

Therefore, the average number of customers waiting. 0.229.

(c) :- The average time customers wait for an ambulance is equal to :

No. of customers waiting for ÷ arrival rate

0.229 ÷ 0.45 = 0.508

Or 0.509 (approx. )

D) probability of Both ambulances is idle is Po = 0.378 (from the table for the value of and M=2)

So Probability of both ambulance is busy = 1-Po

= 1 - 0.378

= 0.622

Answer:

it would be 3 units for the first part then second answer would be 5 then the last one would be 13

Explanation:

that's why it would be asking for how many units for each storage units

Answer: Moderately slow introduction, followed by modest growth, gradually leveling off

Explanation:

The product life cycle is the time a product takes from the introduction stage to the decline stage when it's off the market.

Based on the above scenario, the product life cycle of this product will be moderately slow introduction, followed by modest growth, gradually leveling.

This is because since it's a new product, there will be a slow introduction as people will just be getting used to the product, then as customers begin to buy the product and it's brand becomes known, there'll be a modest growth before it levels off.

Answer:

The demand curve is less elastic.

Explanation:

The steeper demand curve shows that the demand had become less elastic because the steeper demand curve represents the less elastic demand while the flatter demand curve shows the more elastic demand. therefore, if the demand curve for a monopolistic competitor becomes steeper that means people are less responsive towards the quantity. So if the price increases or decreases, then people will not change their quantity more than the change in price.

Answer:

since the positive cash flows are blocked for one year, you have to adjust your cash flows:

year                 cash flow

0                      -$160,000

1                        $0

2                       $348,400

3                       $416,000

4                       $306,800

5                       $260,000

discount rate = 7%

using a financial calculator:

NPV = -$160,000 + $1,063,318.63 = $903,318.63

IRR  = 102.94%

Answer:

c.$27,284.90 unfavorable

Explanation:

Standard variable overhead rate                     =$27.00

Standard hours allowed per completed unit  =4.3

Actual production unit                                      =971

Actual variable overhead costs                       =$140,018

Variable factory overhead controllable variance = (Standard variable overhead rate * Standard hours allowed per completed unit * Actual production unit) - Actual variable overhead costs

Variable factory overhead controllable variance = ($27 * 4.3 * 971) - $140,018

Variable factory overhead controllable variance = $112,733.1 - $140,018

Variable factory overhead controllable variance = $27,284.9 (Unfavorable)

Answer:

$707,000

Explanation:

Calculation for Sam's appraisal cost for quality last year

Using this formula

Appraisal cost = Annual inspection costs + Annual testing cost

Where,

Annual inspection costs =$172,000

Annual testing cost=$535,000

Let plug in the formula

Appraisal cost = $172,000 + $535,000

Appraisal cost = $707,000

Therefore Sam's appraisal cost for quality last year will be $707,000.

Answer: a. I and III

Explanation:

As soon as word comes through that a client has passed on, the immediate thing to do is to note the date of death and then mark the account as deceased.

After this, all open orders should be immediately cancelled. It is also best to inform a superior of the development. Any other actions would from there henceforth regarding the account is to be determined by the executor of the estate.

Answer:

d. II and IV

Explanation:

The nephew cannot freeze or cause the account to be freezed because he is not considered an immediate family of the deceased or an executor for the deceased. The account cannot be marked as deceased and all open orders cannot be cancelled yet until the executor who was appointed to administer the deceased estate gives the instruction or announces to the representative of the person's death. The representative must therefore endeavor to make enquiries or call the right people to get needed information

Answer:

E. The manager is incorrect.

Explanation:

Since the car was stolen, ABC Motors never had good title of it. A car comes with a title and before ABC bought it from someone it should have verified that the title was good. They are merchants and their normal job is to deal with this kind of things. A car dealership cannot sell cars without a good title, and if they do, they will get in legals problems for doing so.Their problems will not only involve the buyer, but they will also be investigated to check if they were involved in the theft.

Answer:

Cost performance index is 81.25%

Explanation:

Actual cost = $80,000

Planned value = $70,000

Earned value = $65,000

Cost performance index (CPI) is the ratio of earned value to actual cost and can be used to estimate the projected cost of completing the project.

CPI = EV / AC

= $65,000 / $80,000

= 0.8125

= 0.8125 x 100

= 81.25%

Answer:

Budgeted total cost of Direct Material purchases ($) =$ 157,800

Explanation:

Raw material purchase budget is determined by adjusting the raw material usage budget for opening and closing inventory of materials.

Purchase budget = usage budgeted + closing inventory - Opening inventory

Material purchase budget = 53,000 + 2,700 - 3,100= 52,600  pounds

Note the closing inventory represents the stock of materials needed to be kept, hence it will increase the purchase budget. So we added.

On the other hand hands, the opening inventory represented what already existed , hence we subtracted it as it will reduce what will be required.

Material purchase budget ($) = purchase budget in quantity × standard price per quantity

Material purchase budget = 52,600 × $3 = $ 157,800

Budgeted total cost of Direct Material purchases ($) =$ 157,800