Answer:
the answer is 11,000
Explanation:
MC Qu. 152 Adams Manufacturing allocates... Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $364,800; materials of $418,000 and direct labor of $228,000. During the year Adams incurred $426,000 in materials costs, $415,400 in overhead costs and $232,000 in direct labor costs. Compute the overhead application rate.
Answer:
$1.60 per direct labor hour
Explanation:
Overhead application rate = Budgeted Overheads ÷ Budgeted Activity
hence,
Overhead application rate = $364,800 ÷ $228,000
= $1.60 per direct labor hour
On Mar 3, Lyons Company paid dividends of $1,000. Use your knowledge of what a correct journal entry should look like to identify what would be include
Answer:
Debit : Dividend $1,000
Credit : Cash $1,000
Explanation:
The Journal entry to record dividend payment include a Debit to Dividend Account and a Credit to Cash Account to depict the outflow of cash.
You just returned from some extensive traveling.You started your trip with $10,000 in your pocket.You spent 1.32 million pesos in Chile where Ps1 = $.001642.You spent Ps36,000 in Uruguay where Ps1 = $.03526.Then on the way home,you spent Ps29,000 in Mexico where $1 = Ps18.8709.How many dollars did you have left by the time you returned to the U.S.?
A) $3,889.07
B) $4,001.84
C) $4,110.27
D) $5,026.44
E) $4,299.03
Answer:
Option D = 5026.45
Explanation:
Amount at the start of the trip = $10000
Change the 1 million pesos into dollars, Chile = 1320000 x 0.001642 = 2167.44
Uruguay = 36000 x 0.03526 = 1269.36
Mexico = 29000 / 18.8709 = 1536.75
Dollars left at time return to U.S. = $10000 - 2167.44 - 1269.36 - 1536.75
Dollars left at time return to U.S. = 5026.45
Option D = 5026.44
A French family flies from Paris, France to New York City where they have a brief layover before flying to Montreal, Canada. While in New York the family has a $25 dollar lunch at a hot dog stand near Time Square. How does this lunch contribute to U.S. GDP?
a. U.S. GDP remains unchanged, but French GDP increases by 22 Euros ($25 U.S.).
b. GDP decreases by $25
c. GDP increases by $25
d. GDP does not change since the family is not from the U.S.
Answer:
C
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Consumption spending includes spending by households on goods and services. Consumption spending includes :
spending on durables - e.g. buying a laptop
spending on nondurables - e.g. buying clothes, food
spending on services - e.g. payment of hospital bill
the purchase of a textbook by a student is an example of consumption spending on durable goods
Investment - It includes purchases of goods and services made by businesses in the production of goods and services
Government spending - It includes government consumption expenditure and gross investment. The purchase of a new limousine for the president is an example of consumption expenditure
Net export = export - import
the purchase of hotdog constitutes consumption of non durable goods and this would increase US GDP by $25
A company has an overhead application rate of 124% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $24,000?
Answer:
$29,760
Explanation:
Overhead application rate = 124% of direct labor cost
The required total labor costing = $24,000
Total overhead applied = Overhead application rate * $24,000
Total overhead applied = 124% * $24000
Total overhead applied = $29,760
Read the following descriptions and identify the type of risk or term being described:
a. This type of risk relates to fluctuations in exchange rates.
b. This type of risk is inherent in a firmâs operations. A standard measure of the risk per unit of return. This can be used to reduce the stand-alone risk of an investment by combining it with other investments in a portfolio.
c. A standard measure of the risk per unit of return
d. This type of risk relates to fluctuations in exchange rates
Answer:
Foreign exchange risk
Explanation:
These are the risks that an international financial transaction could accrue because of fluctuations in the currency.
A standard measure of the risk per unit of return and this type of risk relates to fluctuations in exchange rates.
Therefore, according to the following descriptions, the type of risk or term being described is Foreign exchange risk.
A debit: Multiple Choice Always decreases an account. Is the left-hand side of a T-account. Is the right-hand side of a T-account. Is not needed to record a transaction. Always increases an account.
A debit side is the left-hand side of a T-account according to the Ledger's book of account.
The left side of the Account is always the debit side and the right side is always the credit side irrespective of what account is. Debit side represents money being paid out of a particular account. In the Ledger is a book of account, in which all types of accounts relating to assets liabilities, capital, expenses and revenues and maintained. it is a complete set of account of business enterprise.
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Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours 30,900 Total fixed manufacturing overhead cost $ 154,500 Variable manufacturing overhead per machine-hour $ 3
Recently, Job T687 was completed with the following characteristics:
Number of units in the job 10 Total machine-hours 30 rect materials $740 Direct labor cost $1,480
The amount of overhead applied to Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)
a. $240.00
b. $154.50
c. $48.00
d. $338.40
Answer:
a. $240.00
Explanation:
Total variable overhead estimated = $3 * 30,900
Total variable overhead estimated = $92,700
Total overhead estimated = Total variable overhead estimated + Total fixed overhead estimated
Total overhead estimated = $92,700 + $154,500
Total overhead estimated = $247,200
Predetermined overhead rate = $247,200 / 30,900
Predetermined overhead rate = $8
Total machine-hours = 30
Amount of overhead applied to Job T687:
= $8 * 30 hours
= $240.00
Your company is estimated to make dividends payments of $2.4 next year, $3.4 the year after, and $4.1 in the year after that. The dividends will then grow at a constant rate of 4% per year. If the discount rate is 13% then what is the current stock price
Answer:
40.78
Explanation:
During 2020, Morefield Building Company constructed various assets at a total cost of $14,700,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $10,700,000. The company had the following debt outstanding at December 31, 2020:
1. 10%, 5-year note to finance construction of various assets, dated January 1,
2020, with interest payable annually on January 1 $6,300,000
2. 12%, ten-year bonds issued at par on December 31, 2014, with interest payable
annually on December 31 7,000,000
3. 9%, 3-year note payable, dated January 1, 2019, with interest payable annually
on January 1 3,500,000
Instructions:
Compute the amounts of each of the following (show computations).
1. Avoidable interest.
2. Total interest to be capitalized during 2020.
Answer:
1. $1,015,000
2. $1,015,000
Explanation:
1. Computation for the Avoidable interest.
First step is to Compute the weighted average interest rate:
Principal Interest
12% ten-year bonds$ 7,000,000 $840,000
9% 3-year note $3,500,000 $315,000
Total $10,500,000 $1,155,000
Weighted average interest rate = $1,155,000 ÷ $10,500,000
Weighted average interest rate= 11%
Now let compute the Avoidable Interest
Weighted Average Accumulated Expenditures *Applicable interest rate = AVOIDABLE INTEREST
$6,300,000 *.10 = $630,000
$3,500,000 *.11= $385,000
Total $9,800,000 $1,015,000
Therefore the Avoidable Interest is $1,015,000
2. Computation for Total interest to be capitalized during 2020
2020 Actual interest cost
Construction note $6,300,000 × .10 =$630,000
12% ten-year bonds, $7,000,000 × .12 =$840,000
9% three-year note, $3,500,000 × .09=$315,000
Total $1,785,000
Therefore Total interest to be capitalized during 2020 will be $1,015,000 which is the LESSER of
$1,785,000
Peterson Company billed its customers a total of $840,000 for the month of November. The total includes a 5% state sales tax.
(a) Determine the proper amount of revenue to report for the month.
(b) Prepare the general journal entry to record the revenue and related liabilities for the month.
Answer:
a. $800000
b. Account receivable Dr. 840000
To sales revenue 800000
To sales tax payable 40000
Explanation:
a. Given the total billed amount = $840000
Sales tax = 5%
Total revenue for the month = 840000 x (100 / 105) = $800000
b. Account receivable Dr. 840000
To sales revenue 800000
To sales tax payable 40000
On December 1, 2020, Junction Company issued at 104, 800 of its 9%, 10-year, $1,000 par value, nonconvertible bonds with detachable stock purchase warrants. Each bond carried two detachable warrants; each warrant was for one share of common stock at a specified option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the bonds without the warrants. Interest is payable on December 1 and June 1. Provide the entry to record issuance of the bonds by Junction Company on December 1, 2020.
Answer:
Junction Company
Journal Entry
December 1, 2020:
Debit Cash $832,000
Credit Bonds Payable $800,000
Credit Bonds Premium $27,038
Credit Warrants Liability $4,962
To record the issuance of the bonds.
Explanation:
a) Data and Calculations:
December 1, 2020:
Face value of nonconvertible bonds with detachable stock purchase warrants = $800,000
Issue price of bonds = $832,000 (1.04 * 800 * $1,000)
Number of bonds issue = 800
Par value per bond = $1,000
Maturity period = 10 years
Coupon interest rate = 10%
Option price of each warrant = $15 per common stock share
Market price of the option = $3
Value of warrant = $4,800 ($3 * 800 * 2)
Allocation of bond price:
Bonds = $827,038 ($800,000/$804,800 * $832,000)
Warrants = $4,962 ($4,800/$804,800 * $832,000)
What is the role of a consumer in the economy nation
An investor currently holds stock in Giggle Corporation and is considering buying stock in either Macrosoft Corporation or Faceplant Corporation. All three stocks have the same expected return and risk. The correlation between Giggle & Macrosoft is 0.25. The correlation between Giggle and Faceplant is -0.10. Portfolio risk is expected to:
a. Increase regardless of whether she buys Macrosoft or Faceplant since they are equally risky
b. Decline more when the investor buys Faceplant
c. Cannot tell from information provided – need to know risk, return and proportion of each stock in the portfolio
d. Stay the same regardless of whether Macrosoft or Faceplant is added since all three have the same risk
e. Decrease more when the investor buys Macrosoft
Answer:
b
Explanation:
Portfolio diversification is the process of holding different asset and security classes in order to minimise the non systemic risk of the portfolio
Correlation is a statistical measure used to measure the relationship that exists between two variables.
1. Positive correlation : it mean that the two variables move in the same direction. If one variable increases, the other variable also increases. It increases the risk of the portfolio
For example, there should be a positive correlation between quantity supplied and price
When there is a positive correlation, the graph of the variables is upward sloping
2. Negative correlation : it mean that the two variables move in different direction. If one variable increases, the other variable decreases. It decreases the risk of the portfolio
For example, there should be a negative correlation between quantity demanded and price
When there is a negative correlation, the graph of the variables is downward sloping
3. Zero correlation : there is no relationship between the variables. It decreases the risk of the portfolio
A bond has a yield to maturity (YTM) of 9.00%. If the YTM decreases to 8.90%, then the price of the bond will_____.
Answer:
increase
Explanation:
The Cavy Company accumulated
560 hours of direct labor on Job 345
800 hours of direct labor on Job 777
The direct labor incurred at a rate of:
$20 per direct labor hour for Job 345
$21 per direct labor hour for Job 777
Journalize the entry and record the flow of labor costs in production.
Answer:
Date Journal Entry Debit Credit
Work in Process $28,000
((560*$20) + (800*$21)
Wages payable $28,000
(To record the flow of labor costs in production)
It's time to buy pet food again and Lisa heads to the grocery store with $40 in her purse, leaving her four hungry dogs and seven hungry cats at home. Dog food costs $1 per can and cat food costs $0.50 per can. Lisa wants to minimize her pet food cost. What is an appropriate objective function for this scenario?
Answer: Min Z = X1 + 0.50X2
Explanation:
Based on the information given in the question, the appropriate objective function for this scenario will be explained this:
Let X1 be the number of dog food cans which will be bought
Let X2 be the number of cat food cans which will be bought
Then, the objective function will be:
Min Z = 1X1 + 0.50X2
The appropriate objective function for this scenario is Min Z = X1 + 0.50X2
Objective function:Since in her purse there is $40 also there is four hungry dogs and seven hungry cats at home. Dog food costs $1 per can and cat food costs $0.50 per can.
So based on this, here we assume that X1 be the no of dog And, X2 should be no of cat
So, the objective function is Min Z = X1 + 0.50X2
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Larry estimates that the costs of insurance, license, and depreciation to operate his car total $460 per month and that the gas, oil, and maintenance costs are 33 cents per mile. Larry also estimates that, on average, he drives his car 2,000 miles per month.
Required:
a. How much cost would Larry expect to incur during April if he drove the car 1,545 miles? (Round your answer to 2 decimal places.)
b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 2,000-mile month?
a. Yes
b. No
Answer and Explanation:
a The computation of the cost is
= $460 + 1,545 miles × 0.33
= $460 + $509.85
= $969.85
b. It should not be considered as the meaningful as the fixed cost would remains the fixed i.e. $460 also the 0.33 per mile should be considered as the variable cost that change with the change in the no of miles covered
Therefore the same should be considered
Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $7; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $3; and fixed selling and administrative costs, $263,000. The company sells its units for $48 each. Additional data follow. Planned production in units 10,000 Actual production in units 10,000 Number of units sold 9,500 There were no variances. The income (loss) under absorption costing is
Answer:
Favaz
The income (loss) under absorption costing is
= $41,000.
Explanation:
a) Data and Calculations:
Variable manufacturing cost per unit, $7
Fixed manufacturing costs, $60,000
Variable selling and administrative costs per unit, $3
Fixed selling and administrative costs, $263,000
Selling price per unit = $48
Planned production in units = 10,000
Actual production in units = 10,000
Number of units sold = 9,500
Ending inventory = 500 (10,000 - 9,500)
Income Statement
Sales revenue ($48 * 9,500) $456,000
Cost of production:
Variable manufacturing $70,000 ($7 * 10,000)
Fixed manufacturing costs, 60,000
Total cost of production $130,000
Less Ending inventory 6,500 ($13 * 500)
Cost of goods sold 123,500
Gross profit $332,500
Expenses:
Variable selling and administrative
costs per unit, ($3 * 9,500) $28,500
Fixed selling and
administrative costs, 263,000
Total expenses $291,500
Net income $41,000
A student is deciding whether to take an additional class or work extra hours. Which amounts are relevant to this decision
Answer:
a. Out-of-pocket costs
c. opportunity costs
Explanation:
Out of pocket costs are those that have to be incurred by the student for having to take the additional classes if there are any. This needs to be considered as they are a cost that the student will need to pay for to take the classes and therefore might need budgeting.
Opportunity costs are the returns offered by the next best alternative to the current decision being taken. In other words, the student needs to consider what will happen if they pick additional class over work and vice versa.
Answer:
pocket and opportunity
Explanation:
If unit sales prices are $7 and variable costs are $5 per unit, how many units would have to be sold to break-even if fixed costs equal $8,000?
Answer: 4,000 units
Explanation:
The breakeven point of sales can be calculated by the formula:
= Fixed costs / Contribution margin
Contribution margin = Sales price - Variable cost
= 7 - 5
= $2
Breakeven point in sales:
= 8,000 / 2
= 4,000 units
Bailey Company incurred the following costs in manufacturing desk calculators: Direct materials $18 Indirect materials (variable) 3 Direct labor 9 Indirect labor (variable) 7 Other variable factory overhead 13 Fixed factory overhead 34 Variable selling expenses 26 Fixed selling expenses 12 During the period, the company produced and sold 2,000 units. What is the inventory cost per unit using absorption costing
Answer:
$84
Explanation:
Calculation to determine the inventory cost per unit using absorption costing
Direct materials $18
Indirect materials (variable) $3
Direct labor $9
Indirect labor (variable) $7
Other variable factory overhead $13
Fixed factory overhead $34
Inventory cost per unit $84
($18 + $3 + $9 + $7 + $13 + $34 = $84
Therefore the inventory cost per unit using absorption costing is $84
A risky fund has an expected return of 17% and standard deviation of 25%. The risk-free rate is 9%. The expected return of the optimal complete portfolio is 12%. The Sharpe ratio of the optimal complete portfolio is:
Answer:
the Sharpe ratio of the optimal complete portfolio is 0.32
Explanation:
The computation of the sharpe ratio is shown below:
= (Return of portfolio - risk free asset) ÷ Standard deviation
= (17% - 9%) ÷ 25%
= 8% ÷ 25%
= 0.32
Hence, the Sharpe ratio of the optimal complete portfolio is 0.32
We simply applied the above formula
any traditional costing systems: Multiple Choice write off manufacturing overhead as an expense of the current period. combine widely varying elements of overhead into a single cost pool. produce results far superior to those achieved with activity-based costing. use a host of different cost drivers (e.g., number of production setups, inspection hours, orders processed) to improve the accuracy of product costing. trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates.
Answer:
combine widely varying elements of overhead into a single cost pool
Explanation:
A Traditional cost system is the system where the overhead cost are allocated that depend upon the cost driver volume. It determined the overhead cost per unit by measuring the total overhead cost i.e. incurred and this is be divided by the number of units produced
So as per the given options, the above option should be considered
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Pay $1,160,000 in cash immediately. 2. Pay $461,000 immediately and the remainder in 10 annual installments of $94,000, with the first installment due in one year. 3. Make 10 annual installments of $156,000 with the first payment due immediately. 4. Make one lump-sum payment of $1,730,000 five years from date of purchase. Required: Determine the best alternative for Harding, assuming that Harding can borrow funds at a 8% interest rate. (Round your final answers to nearest whole dollar amount.)
Answer:
Option-2 is best alternative
Explanation:
Option-1
Present value of lumpsum amount -1160000
Option-2
Annual paymentt for 10 yrs -94000
Annuity for 10 yrs at 8% 6.7101
Present value of outflowws -630749
Add: Initial amount paid -461000
Present value of outflowws -1091749
Option-3
Annual paymentt for 9 yrs -156000
Annuity for 10 yrs at 8% 6.24689
Present value of outflowws -974515
Add: Initial amount paid -156000
Present value of outflowws -1130515
Option-4
Amount paid after 5 yrs -1730000
PVF at 5 yrs at 8% 0.680583
Present value -1177409
Option-2 is best alternative
If you could invent something what would it be
Eileen transfers property worth $200,000 (basis of $190,000) to Goldfinch Corporation. In return, she receives 80% of the stock in Goldfinch Corporation (fair market value of $180,000) and a long-term note (fair market value of $20,000) executed by Goldfinch and made payable to Eileen. Eileen recognizes gain on the transfer of:______.a. $0.b. $10,000.c. $20,000.d. $190,000.e. None of the above.
Answer:
b. $10,000
Explanation:
Calculation to determine Eileen recognizes gain on the transfer
Recognized gain=Basis -Fair market value
Recognized gain=$190,000 -$180,000
Recognized gain=$10,000 gain
Therefore Eileen recognizes gain on the transfer of:$10,000
The material cost per equivalent unit using the weighted average costing method is calculated as a.total material costs to account for divided by equivalent units for materials. b.total material costs to account for divided by number of partially completed units for materials
Answer:
total material costs to account for/equivalent units for materials
Explanation:
The formula to calculate the material cost per equivalent unit is given below:
= Total material cost ÷ material equivalent units
It means that if we divide the total material cost by the material equivalent unit so we can ge the material cost per equivalent unit
Hence, the above should be the answer
________duties are tailored at the request of the Program Manager (PM) and are written in the Memorandum of Agreement, signed by both the PM and the Contract Administration Office (CAO) Commander (Please note the CAO Commander was previously referred to as the Contract Management Office (CMO) Commander).
a. Program Support Team
b. Administrative Contracting Officer
c. Program Integrator
d. Procuring Contracting Officer
Answer:
b. Administrative Contracting Officer
Explanation:
The officer who is given the responsibility of administering the U.S. government contracts in the Contract Administration Office is called the Administrative Contracting Officer (ACO). For the U.S. military, this office is led by the Contract Administration Office (CAO) Commander. The ACO in the CAO is just one of the officers under the CAO Commander, and she can negotiate contracts on behalf of the U.S. government.
Glen Pool Club, Inc., has a $150,000 mortgage liabilty. The mortgage is payable in monthly installments of $1,543 , which include interest computed at an annual rate of 12 percent (1 percent monthly). Prepare a partial amortization table showing (1) the original balance of this loan, and (2) the allocation of the first two monthly payments between interest expense and the reduction in the mortgage`s unpaid balance. Prepare the journal entry to record the second monthly paymment. Will monthly interest increase, decrease or stay the same over the life of the loan? Explain.
Answer:
Glen Pool Club, Inc.
1. Monthly Pay: $1,542.92
2. Monthly Amortization Schedule
Monthly Amortization Schedule
Date Beginning Balance Interest Principal Ending Balance
1 7/2021 $150,000.00 $1,500.00 $42.92 $149,957.08
2 8/2021 $149,957.08 $1,499.57 $43.35 $149,913.73
3. Journal Entry:
Debit Interest $1,499.57
Debit Mortgage Liability $43.35
Credit Cash $1,542.92
To record the second monthly payment.
4. Monthly interest will continue to decrease over the life of the loan because part of the principal is being repaid with each monthly payment. Therefore, the next monthly balance will reduce. It is with this monthly balance that the interest for the month is computed. So, interest will continue to decrease.
Explanation:
a) Data and Calculations:
Mortgage liability = $150,000
Monthly installment payment = $1,543
Annual interest rate = 12%
Monthly Pay: $1,542.92
Home Price 150000
Down Payment 0 %
Loan Term 30 years
Interest Rate 12
Calculate
Monthly Pay: $1,542.92
Total of 360 Mortgage Payments $555,450.80
Total Interest $405,450.80
