Answer:
Machine setups= $70 per setup
Machining= $10 per machine hour
Inspection= $45 per inspection
Explanation:
To calculate the allocation rate for each activity, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setups= 140,000 / 2,000= $70 per setup
Machining= 240,000 / 24,000= $10 per machine hour
Inspection= 54,000 / 1,200= $45 per inspection
AJ Manufacturing Company incurred $54,500 of fixed product cost and $43,600 of variable product cost during its first year of operation. Also during its first year, AJ incurred $17,350 of fixed and $13,900 of variable selling and administrative costs. The company sold all of the units it produced for $178,000. Required Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). Prepare an income statement using the contribution margin approach.
Answer and Explanation:
The preparation of the income statement under following approaches are
Under generally accepted accounting Principles (GAAP)
Sales $178,000
Less: cost of goods sold ($54,500 + $43,600) -$98,100
Gross margin $79,900
Less: selling & general admin ($17,350 + $13,900) -$31,250
Net income $48,650
Under contribution margin approach
Sales $178,000
Less: variable cost ($43,600 + $13,900) -$57.5
Contribution margin $120,500
Less: fixed cost ($54,500 + $17,350) -$71,850
Net income $48,650
Sheridan Industries reported actual sales of $2,125,000 and fixed costs of $562,275. The contribution margin ratio is 30%. Compute the margin of safety in dollars and the margin of safety ratio. (Round margin of safety ratio to 1 decimal place, e.g. 52.7.)
Answer:
Margin of safety $250,750
Margin of safety ratio 11.8%
Explanation:
Computation for the margin of safety in dollars and the margin of safety ratio
First step is calculate the Break even point in dollars
Break even point in dollars = Fixed costs / Contribution margin ratio
Break even point in dollars=$562,275/0.30
Break even point in dollars = $1,874,250
Now let determine the the margin of safety in dollars and the margin of safety ratio
Margin of safety = Actual Sales - Break even sales
Margin of safety= $2,125,000 -$1,874,250
Margin of safety=$250,750
Margin of safety ratio= Margin of safety/Actual Sales
Margin of safety ratio = $250,750/$2,125,000
Margin of safety ratio = 0.118*100
Margin of safety ratio = 11.8%
Thereforethe margin of safety in dollars and the margin of safety ratio will be:
Margin of safety $250,750
Margin of safety ratio 11.8%
A lender uses these tools to help prequalify you for a mortgage
Answer:
Following are the summary of tools/documents that are used by lenders to pre-qualify their customers for a mortgage :
1. Tax returns, W-2s, and 1099s are examples of income as well as employment records.
2. Bank, pension, and brokerage accounts property declarations
3. Settlements on your obligations on a regular basis as well as any real estate debt statements.
4. Rent deposits, divorce, insolvency, and repossession records are all kept on file.
How much does international trade affect you personally?
Answer:
maybe a lot for me ok
maybe you
Suppose you entered a contract to buy your friend's iPad. Without your knowledge, it was malfunctioning at the time you bought it, and it died soon after you started using it. Your friend had recently removed a large number of applications from the iPad that were not working. Although he honestly thought the problem was with the applications and not the iPad itself, he failed to tell you about the problem. You reasonably concluded, based on your inspection of all of the current applications on the iPad, that it was functioning properly. Can you rescind the contract to buy the iPad?
a. Yes, due to fraud.
b. Yes, due to innocent misrepresentation.
c. Yes, due to mutual mistake.
d. Yes, due to undue influence.
e. No, the latent malfunction was not material, because the iPad was functioning when you bought it.
Answer:
Can you rescind the contract to buy the iPad?
b. Yes, due to innocent misrepresentation.
Explanation:
You can rescind the contract without damages or you claim damages based on the loss that you have already incurred for the contract. An innocent misrepresentation occurs when the misrepresentation is not fraudulent nor negligent. Therefore, you can rescind the contract or affirm it. But if the misrepresentation is fraudulent or negligent, you can rescind the contract as well as claim damages.
Freelife, New Hampshire has a labor force of 78,567 persons and employment of 74,382. The unemployment rate for the city is: Group of answer choices 5.3%. 5.6%. 6.0%. 7.1%
Answer:
5.3%
Explanation:
There are 4,185 unemployment person(78,567-74,382)
So the rate of unemployment persons = ( the number of unemployment / the total number of persons) × 100
= (4,185/78,567) ×100
In Freelife, New Hampshire, there are 74,382 people employed and 78,567 people in the labor force. The city's unemployment rate is 5.3%.
What is the cause of unemployment?When someone is actively seeking employment even if they are employable, they are said to be unemployed. Individuals who are employed but do not have the right jobs are included in this group. One of the indices of a nation's economic health is unemployment,
which is typically calculated as the unemployment rate, which is calculated by dividing the number of jobless persons by
the total number of workers. It is common to misunderstand the definition of unemployment, which includes persons who are waiting to start working again after being discharged but excludes those who have given up seeking for a job. Those that aren't looking for work right now.
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An employee earned $1,000 in the first pay period of the current year. How much is the total employer and employee social security taxes on these earnings? (Use the simplified rate shown in illustrations.)
Answer: $120
Explanation:
The total employer and employee social security taxes is 6% fir the employee and 6% for the employee which then makes up 12%.
Since the employee earned $1,000 in the first pay period of the current year, then the total employer and employee social security taxes on these earnings will be:
= 12% × $1000
= 0.12 × $1000
= $120
Question 4 James Bennett also allocates wealth between youth and old age. He has no cash currently (in his youth), but will inherit $3000 in his old age. He can lend and borrow at the bank at 18% (that is, lending $1 in youth will give him $1.18 in old age). He has an investment opportunity that costs $12,000 now in his youth and has a payoff of $15,000 in his old age. This is the only investment opportunity available to him. What is the most he can consume in his youth
James Bennet needs us to locate investment opportunities for him.
James divides his fortune between youth and old age, as is shown to us. He is currently cashless.
He has access to bank borrowing and lending at 18%.
Some investment opportunities are presented to him.
Investing is the act of placing money into a bank, a piece of property, or a company.
Savings can also take the form of investments.
The most he should spend while still young is $15,254.23.
This calculation is displayed.
The future value is the present value times 1.18.
Future worth = $15,000 + $3,000
= $ 18,000
Therefore, the present value is equal to $18,000 divided by 1.18.
= $ 15, 254.23.
The value that represents today's value is referred to as present value.
Consequently, we might infer that the greatest amount is $15,254.23 that he can spend during his childhood.
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Fina Corp. had the following transactions during the quarter ended March 31, 2018: Payment of fire insurance premium for calendar year 2018 800,000 What amount should be included in Fina's income statement for the quarter ended March 31, 2018?
Answer:
$200,000
Explanation:
When a company prepays for a service, the amount prepaid is recognized as an asset until the service is enjoyed (usually with the passing of time).
This is recorded as follows
Dr Prepaid expense
Cr Cash account
Being entries to recognize amount prepaid.
As the service is enjoyed,
Dr Expense
Cr Prepaid expense
Being entries to recognize expense incurred.
Since 800,00 was the amount prepaid for the calendar year 2018, by 31 March 2018, the amount used up (to be recognized as expense in the income statement) will be
3/12 * $800,000
= $200,000
The price of lemonade is $1.50; the price of popcorn is $0.75. If Fred has maximized his utility by purchasing lemonade and popcorn, his marginal rate of substitution will be: Group of answer choices 1/2 lemonade for each popcorn. indeterminate unless more information on Fred's marginal utilities is provided. 2 lemonades for each popcorn. none of these options is correct
Answer: 1/2 lemonade for each popcorn
Explanation:
Price of lemonade = $1.50
Price of popcorn = $0.75
Let good 1 = popcorn
Let good 2 = lemonade
MRS = MU1/MU2 = P1/P2
= 0.75/1.50
= 1/2
Therefore, the marginal rate of substitution will be 1/2 lemonade for each popcorn.
Therefore, the correct option is A.
8794979666++++45626563.
Meyer Company reported the following for its recent year of operation:
From Income Statement:
Depreciation Expense $1,000
Loss on the Sale of Equipment (3,000)
From the comparative balance sheet:
Beginning balance, equipment $12,500
Ending balance, equipment 8,000
Beginning balance, accumulated depreciation 2,000
Ending balance, accumulated depreciation 2,600
No new equipment was purchased during the year. What was the selling price of the equipment?
Answer:
$900
Explanation:
Calculation to determine the selling price of the equipment
First step
Cost of equipment sold = Beginning balance - Ending balance
Cost of equipment sold=$12,500-$8,000
Cost of equipment sold=$4,500
Second step
Ending balance= Beginning balance + Depreciation expense - Accumulated depreciation on equipment sold
Ending balance=$2,000+$1,000-$600
Ending balance=$2,400
Third step
Book value = Cost of equipment sold - Accumulated depreciation on equipment sold
Book value=$4,500-$600
Book value=$3,900
Now let determine the selling price of the equipment
Selling price=$3,000-$3,900
Selling price=$900
Therefore the selling price of the equipment.is $900
An electronics company makes communications devices for military contracts. The company just completed two contracts. The navy contract was for 2,540 devices and took 27 workers two weeks (40 hours per week) to complete. The army contract was for 5,940 devices that were produced by 37 workers in three weeks (40 hours per week). a. Calculate the productivity for navy and army contracts in units produced per labor hour.
Answer:
Explanation:
For Navy contract, the total number of man hours put into production will be:
= 27 × 40 × 2
= 2160 man hours
Then, the units produced per labor hour will be:
= 2540 devices / 2160
= 1.176 units per labor hour.
For Army contracts, the total number of man hours put into production will be:
= 37 × 40 × 3
= 4440 man hours
Then, the units produced per labor hour will be:
= 5940/4440
= 1.338 units per labor hour.
Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are: M N OUnit sales price$12 $10 $11Unit variable costs 9 8 9Total fixed costs are $585,000. The selling price per composite unit for the current sales mix (rounded to the nearest cent) is:
Answer:
Selling price per composite unit= $11.3
Explanation:
Giving the following information:
Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2.
Unit price and cost data are: M N OUnit sales price$12 $10 $11
First, we need to calculate the sales proportion for each product:
M= 3/6= 0.5
N= 1/6= 0.17
O= 2/6= 0.33
Now, the selling price per composite unit:
Selling price per composite unit= (0.5*12) + (0.17*10) + (0.33*11)
Selling price per composite unit= $11.3
g If there is a breach of contract, the objective of the remedy in the breach contract case will be to: Question 21 options: place the parties back into the position that they would have been in had there been no contract punish the party that committed breach of contract provide both parties relief place the non breaching party into the position that they would have been had the contract not been breached
Answer: place the non breaching party into the position that they would have been had the contract not been breached
Explanation:
A contract is meant to satisfy the reasons for which the contract was gone into for both parties. If one party breaches the contract, the party that did not breach should still have their reason for entering the contract satisfied because they did what they were supposed to do according to the contract.
This is why the purpose of a breach of contract remedy is to ensure that this non-breaching party does indeed get what was supposed to come to them by the contract.
A sporting equipment store expects to purchase $8,200 of ski boots in October. The store had $2,800 of ski boots in merchandise inventory at the beginning of October, and expects to have $1,800 of ski boots in merchandise inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?
a) $7,000.
b) $9,000.
c) $8,000.
d) $12,000.
e) $11,000.
Answer:
$9,200
Explanation:
Calculation to determine the budgeted cost of goods sold for October
Using this formula
Budgeted cost of goods sold for October =Cost of ski boots + Inventory at the beginning - Inventory at the end
Let plug in the formula
Budgeted cost of goods sold for October = $2800 + $8200 - $1800
Budgeted cost of goods sold for October= $9200
Therefore the budgeted cost of goods sold for October is $9,200
On January 1, 20X1 when the effective interest rate was 14%, a company issued bonds with a maturity value of $1,000,000. The stated rate of interest is 12%, the bonds pay interest semi-annually and sold for $893,640. The amount of bond discount amortized on July 1, 20X1 is approximately:__________.
Answer: $2,555
Explanation:
Bond discount amortization = Interest cost - Coupon payment
Coupon payment = Stated interest * Par value
= 12% * 1,000,000 * 6/12 months
= $60,000
Interest cost = Issue price * effective interest
= 893,640 * 14% * 6/12
= $62,554.80
Amortized amount:
= 62,554.80 - 60,000
= $2,554.80
= $2,555
Andrews Corporation has income from operations of $240,000. In addition, it received interest income of $24,000 and received dividend income of $29,500 from another corporation. Finally, it paid $11,800 of interest income to its bondholders and paid $45,000 of dividends to its common stockholders. The firm's federal tax rate is 21%. What is the firm's federal income tax
Answer: $54,820.50
Explanation:
Federal income tax = Taxable income * tax rate
Taxable income = Income from operations + Interest income received + Dividend income received - Interest income paid
= 240,000 + 24,000 + (30% * 29,500) - 11,800
= $261,050
Federal income tax = 261,050 * 21%
= $54,820.50
Note: Only 30% of Dividends received are taxable
bRamapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 1,048 4 7 Dinks 2,236 5 6 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $82,200. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $102,000. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Dinks is
Answer:
Ramapo Company
The factory overhead allocated per unit of Dinks is:
= $56.94.
Explanation:
a) Data and Calculations:
Product Number of Units Direct Labor Machine
Hours Per Unit Hours Per Unit
Blinks 1,048 4 7
Dinks 2,236 5 6
Fabrication Assembly
Estimated overhead $82,200 $102,000
Machine hours:
Blinks 7,336
Dinks 13,416
Total machines hours 20,752
Direct Labor hours:
Blinks 4,192
Dinks 11,180
Total machines hours 15,372
Total factory overhead Blinks Dinks
Fabrication department $29,058 $53,142
Assembly department 27,816 74,184
Total allocated overhead $56,874 $127,326
Units produced 1,048 2,236
Factory overhead per unit $54.27 $56.94 ($127,326/2,236)
Question 4
Which of the following is an example of an asset?
A. Repairs and Maintenance
B. Accounts Receivable
C. Accounts Payable
D. GST Collected
Answer:
Accounts Receivable
Explanation:
A is an expense, C and D are liabilities
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $4 per unit, Direct labor, $2 per unit, Variable overhead, $3 per unit, and Fixed overhead, $160,000. The company produced 20,000 units, and sold 15,000 units, leaving 5,000 units in inventory at year-end. What is the value of ending inventory under absorption costing
Answer: $85,000
Explanation:
Find out the cost of per unit of inventory under absorption costing:
= Direct materials + Direct labor + Variable overhead + Fixed overhead per unit
= 4 + 2 + 3 + 160,000 / 20,000 units
= 4 + 2 + 3 + 8
= $17 per unit
If 5,000 units are left, the value of those units are:
= 5,000 * 17
= $85,000
Which of the following food borne illness has a preventative vaccine
A. E.coli
B.norovirus
C. Hep. A
D. Shigella
Answer:
C. Hep. A
Explanation:
From the available options, Hep. A is preventable with a vaccine. The vaccine was created in 1995. It is administered to individuals in two seperate doses and usually done with a time span of 6 months between dose. Having both doses administered helps prevent the individuals from the Hep. A virus long term. Like most vaccines, this one has a 95% effectiveness for preventing the virus from affecting the individual's body.
What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment
Answer:
$882.03
Explanation:
Interest rate used is 7.23%
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 to 12 = 58
cash flow in year 13 = 1058
I = 7.23
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Well Water Inc. wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2.00 per 12 oz. bottle. The following data has been collected:
Annual sales......................................................50,000 bottles
Projected selling and administrative costs.....$8,000
Desired profit.....................................................$80,000
The target cost per bottle is:__________
Answer:
The answer is "0.4".
Explanation:
[tex]\\\to \text{Total Cost of Goods Sold = Sales revenue - Desired profit}[/tex]
[tex]= (2\times 50,000) - 80,000\\\\= 1,00,000 - 80,000\\\\= 20,000[/tex]
Calculating the target cost per bottle:
[tex]= \frac{\text{Total cost of goods sold}}{ \text{units sold}}\\\\= \frac{20,000}{50,000}\\\\= \frac{2}{5}\\\\= 0.4[/tex]
On Jan. 1, 2018, your cousin, Laura, purchased one $1,000, 5-year semiannual bond with a coupon rate of 8%. The yield of the bond was 8% at the time. How much did Laura pay for the bond?
Answer:
the amount pay for the bond is $1,000
Explanation:
The computation of the amount pay for the bond is shown below:
Given that
Future value be $1,000
NPER is 5 × 2 = 10
RATE = 8% ÷ 2 = 4%
PMT = $1,000 × 8% ÷ 2 = $40
The formula is given below:
=-PV(RATE,NPER,PMT,FV,TYPE)
After applying the above formula, the present value is $1,000
Hence, the amount pay for the bond is $1,000
Money markets trade securities that: _______________
I. mature in one year or less.
II. have little chance of loss of principal.
III. must be guaranteed by the federal government.
a. I and III only
b. I only
c. I and II only
d. I, II, and III
Han Products manufactures 29,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is:
Direct materials $3.70
Direct labor 12.00
Variable manufacturing overhead 2.30
Fixed manufacturing overhead 9.00
Total cost per part $27.00
An outside supplier has offered to sell 29,000 units of part S-6 each year to Han Products for $23 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $79,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier.
Required:
What is the financial advantage (disadvantage) of accepting the outside supplier’s offer?
Answer:
Financial advantage of accepting supplier's offer = $21,000
Explanation:
Relevant costs saved by outsourcing production:
Direct materials $3.70
Direct labor $12.00
Variable manufacturing overhead $2.30
Fixed manufacturing overhead $9.00 * 1/3 = $3
Total cost per part $21.00
Total savings per year = $21 * 29,000 = $609,000
Additional rental income = $79,000
Total = $688,000
Cost of purchasing 29,000 parts = $23 * 29,000 = $667,000
Financial advantage of accepting supplier's offer = $21,000
An organization's job structure consists of relative pay for different functions and different levels of responsibility.
a. True
b. False
Answer:
a). True
Explanation:
The given statement asserts a true claim that the job structure of an organization comprises of corresponding pay scales for the different employees performing different activities and functions according to the levels of authority or leadership they have been provided. The job structure is the aspect that establishes the hierarchy or of various ranks and positions in which the company is organized to aptly manage the running of the business and its associated activities successfully and efficiently. Thus, the statement is true.
Dunbar sold 640 units of inventory during the month. Ending inventory assuming weighted-average cost would be: (Round weighted-average unit cost to 4 decimal places and final answer to the nearest dollar amount.)
Answer:
$428.13
Explanation:
Note The missing word have been attached as picture below
Weighted average cost per unit = [(450*$2.18) + (370*$2.62)] / (450 + 370)
Weighted average cost per unit = ($981 + $969.4) / 820
Weighted average cost per unit = $1950.4 / 820
Weighted average cost per unit = 2.378536585365854
Weighted average cost per unit = $2.3785
Ending inventory unit = 450 + 370 - 640
Ending inventory unit = 180
Value of ending inventory = $2.3785 * 180 units
Value of ending inventory = $428.13
Tucker Company's Work in Process account decreased by $1,000, while its Finished Goods Inventory account increased by $500. Assuming total manufacturing costs were $5,000, what was the company's cost of goods sold amount?
Answer:
$5500.
Explanation:
The computation of the cost of goods sold is shown below:
Let us assume beginning WIP be $2000
So,
ending WIP is
= ($2000 - $1000)
= $1000
And,
Let us assume the beginning finished goods be $1000
So, the ending finished goods is
= ($1000 + $500)
= $1500
Now as we know that
Cost of goods manufactured = Total manufacturing cost + Beginning WIP - Ending WIP
= $5000 + $2000 - $1000
= $6000
Now
cost of goods sold=Cost of goods manufactured+Beginning finished goods-Ending finished goods
= $6000 + $1000 - $1500
=$5500.
