Answer:
Annual depreciation= $28,000
Explanation:
Giving the following information:
Purchase price= $170,000
Salvage value= $30,000
Useful life= 5 years
To calculate the annual depreciation, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (170,000 - 30,000) / 5
Annual depreciation= $28,000
Under the straight-line method, the annual depreciation is constant.
Strong, Inc., bundles two kinds of service activities into a single $6,000 fixed-price contract, yielding two distinct performance obligations, A and B. Each activity has a stand-alone selling price of $3,200. Obligation A is satisfied immediately upon contract signing. Obligation B is satisfied evenly over an eight-month period. After the date of contract signing and the satisfaction of obligation A, two months have passed. Cumulatively, how much revenue should Strong, Inc., recognize by the end of the second month
Answer:
the revenue recognized is $3,750
Explanation:
The computation of the revenue that recognized by the end of the second month is given below:
= $6,000 ÷ $6,400 × $3,200 + $6,000 ÷ $6,400 × $3,200 × 2 months ÷ 8 months
= $3,750
The $6,400 comes from
= $3,200 + $3,200
= $6,400
Hence, the revenue recognized is $3,750
A production process consists of a three step operation. The scrap rate is 10% for the first step and 6 percent for each of the other two steps.
a. If the desired daily output is 450 units, how many units must be started to allow for loss due to scrap?
b. If the scrap rate for each step could be cut in half, how many units would this save in terms of the scrap allowance?c. If the scrap represents a cost of $10 per unit, how much is it costing the company per day for the original scrap rate?
Answer:
a. The number of units that must be started to allow for loss due to scrap is 566 units.
b. The number of units that this would save in terms of the scrap allowance is 63 units.
c. The scrap is costing the company $1,160 per day.
Explanation:
a. If the desired daily output is 450 units, how many units must be started to allow for loss due to scrap?
Let x represent the original quantity.
Therefore, we have:
Scrap from the first step operation = 0.10x
Remaining quantity after the first step operation = Original quantity - Scrap of the first step operation = x – 0.10x = (1 – 0.10)x = 0.90x
Scrap from the second step operation = Remaining quantity after the first step operation * 0.06 = 0.90x * 0.06 = 0.054x
Remaining quantity after the second step operation = Remaining quantity after the first step operation - Scrap from the second step operation = 0.90x - 0.054x = (0.90 - 0.054)x = 0.846x
Scrap from the third step operation = Remaining quantity after the second step operation * 0.06 = 0.846x * 0.06 = 0.05076x
Remaining quantity after the third step operation = Remaining quantity after the second step operation - Scrap from the third step operation = 0.846x - 0.05076x = (0.846 - 0.05076)x = 0.79524x
Since the desired daily output is 450 units, we can solve for x as follows:
0.79524x = 450
x = 450 / 0.79524 = 565.866908103214, or 566 units
Therefore, the number of units that must be started to allow for loss due to scrap is 566 units.
b. If the scrap rate for each step could be cut in half, how many units would this save in terms of the scrap allowance?
Scrap rate of first operation is = 10%/2 = 5%, or 0.05
Scrap rate of second and third operations = 6%/2 = 3%, or 0.03 each
Let x also represent the original quantity.
Therefore, we have:
Scrap from the first step operation = 0.05x
Remaining quantity after the first step operation = Original quantity - Scrap of the first step operation = x - 0.05x = (1 – 0.05)x = 0.95x
Scrap from the second step operation = Remaining quantity after the first step operation * 0.03 = 0.95x * 0.03 = 0.0285x
Remaining quantity after the second step operation = Remaining quantity after the first step operation - Scrap from the second step operation = 0.95x - 0.0285x = (0.95 - 0.0285)x = 0.9215x
Scrap from the third step operation = Remaining quantity after the second step operation * 0.03 = 0.9215x * 0.03 = 0.027645x
Remaining quantity after the third step operation = Remaining quantity after the second step operation - Scrap from the third step operation = 0.9215x - 0.027645x = (0.9215 - 0.027645)x = 0.893855x
Since the desired daily output is 450 units, we can solve for x as follows:
0.893855x = 450
x = 450 / 0.893855 = 503.437358408243, or 503 units
Number units to save = Calculated x from part a above - Calculated x in part 2 here = 566 – 503 = 63
Therefore, the number of units that this would save in terms of the scrap allowance is 63 units.
c. If the scrap represents a cost of $10 per unit, how much is it costing the company per day for the original scrap rate?
Quantity to be introduced at the original scrap rate = Calculated x from part a above = 566
Remaining quantity after the third step operation = 450
Scrap = Quantity to be introduced at the original scrap rate - Remaining quantity after the third step operation = 566 – 450 = 166 units
Total cost of scrap = Scrap * Cost of each unit of scrap = 166 * $10 = $1,160
Therefore, the scrap is costing the company $1,160 per day.
His decision on what price to charge and how much to produce in the long run will be A. based on optimal plant size determination based on cost minimization. B. to charge even higher prices and produce less quantity compared to short run. C. the same as his short run profit maximizing decision. D. dependent on loss minimization principle.
Answer: A. based on optimal plant size determination based on cost minimization
Explanation:
The information given isn't complete as there are some diagrams attached which I saw online.
Based on the information gotten, the decision on the price to charge and the quantity to produce in the long run will be based on optimal plant size determination based on cost minimization.
It should be noted that the quantity of goods produced in the long run, and the price that'll be charged will depends on optimal size of the plant. In the long, there can be an alteration of the plant size and therefore, the output and price will be determined by the optimal plant size.
In much of the country, homeowners choose to heat their houses with either natural gas or heating oil, both of which are normal goods. Which factor would cause an increase in the demand for natural gas
Group of answer choices.
a. an increase in consumer incomes
b. an increase in the price of natural gas
c. a decrease in the price of heating oil
d. a decrease in the price of natural gas
Answer:
a. an increase in consumer incomes
Explanation:
A market demand curve is used to graphically represent the quantity of goods demanded by all the buyers or consumers at different price points.
This ultimately implies that, a market demand curve can be determined by the horizontal summation of the various quantities for which, each buyer or consumer in a market is willing to pay for at different prices.
Thus, the market demand curve is downward sloping due to the fact that as the price of a product increases, the quantity demanded by the consumer decreases.
Generally, the demand for a good or service increases when consumer income increases and it decreases when the income earned by consumers fall. Thus, the demand for goods or services is directly proportional to consumer income.
Hence, a factor which would cause an increase in the demand for natural gas is an increase in consumer incomes.
Kentucky Corporation uses a process-cost accounting system. The company adds direct materials at the start of its production process; conversion cost, on the other hand, is incurred evenly throughout manufacturing. The firm has no beginning work-in-process inventory; its ending work in process is 40% complete. Which of the following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory?
A. Materials, 40%; conversion cost, 40%.
B. Materials, 40%; conversion cost, 100%.
C. Materials, 100%; conversion cost, 40%.
D. Materials, 100%; conversion cost, 60%.
E. Materials, 100%; conversion cost, 100%.
Answer:
The following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory:
D. Materials, 100%; conversion cost, 60%.
Explanation:
The above is actually the best option which would be used to calculate the correct number of equivalent units in the ending work-in-process inventory.
Perpetual Life Corp. has issued consol bonds with coupon payments of $50. (Consols pay interest forever and never mature. They are perpetuities.)a. If the required rate of return on these bonds at the time they were issued was 5.0%, at what price were they sold to the public
Answer: $1,000
Explanation:
The price of a perpetual bond is calculated like a perpetuity and this is calculated by dividing the coupon payment of the bond by the prevailing required rate of return.
Price of this bond is:
= Coupon payment / Required return
= 50 / 5%
= $1,000
Three broad categories of definitions of quality are: product quality, service quality, and organizational quality. user based, manufacturing based, and product based. internal, external, and prevention. low-cost, response, and differentiation. Pareto, Shewhart, and Deming.
Answer:
user based, manufacturing based, and product based.
Explanation:
Quality is the degree in which the commodity meets the customer requirement at the beginning of its life as per ISO 9000
The impact of the quality could experience from the customer. The perception with regard to the quality of the product comes by the design & specifications and the accomplishment of the manufactured standards. The perception related to the service quality would arrive from the design of the process and the standard of the delivery
So as per the given situation, the above should be the answer
If an asset costs $16,000, has an expected useful life of 8 years, is expected to have a $2,000 salvage value and generates net annual cash inflows of $2,000 a year, the cash payback period is:________
Answer:
It will take 7.5 years to cover the initial investment. If the company take into account the tax shield of the depreciation expense, the payback period will be lower.
Explanation:
Giving the following information:
Initial investment= $16,000
Useful life= 8 years
Salvage value= $2,000
Cash inflows= $2,000
The payback period is the time required to cover the initial investment.
Year 1= 2,000 - 16,000= -14,000
Year 2= 2,000 - 14,000= -12,000
Year 3= 2,000 - 12,000= -10,000
Year 4= 2,000 - 10,000= -8,000
Year 5= 2,000 - 8,000= -6,000
Year 6= 2,000 - 8,000= -4,000
Year 7= 2,000 - 4,000= -2,000
Year 8= 4,000 - 2,000= 2,000 (Assuming the asset is sold for its salvage value)
To be more accurate:
(2,000/4,000)= 0.5
It will take 7.5 years to cover the initial investment. If the company take into account the tax shield of the depreciation expense, the payback period will be lower.
Case Study
Imagine working in an organization where employee morale is low, turnover is high, and the costs of hiring are astronomical. If that were the case, you'd imagine the employer would go to great lengths to find, attract, and retain quality employees. Couple this goal with the reality of the economic picture -you simply cannot afford to provide expensive benefits for employees who may leave you for a different employer offering an extra $1,000 in salary or benefits. Knowing that 41 percent of all employees have no loyalty to their employers and will move on if a better offer comes adds to the dilemma. These issues clearly are a concern for organizations like Genentech or Zappos. But they don't fret over them. That's because they have found that treating employees with respect, and giving them such things as bonuses, rewards for longevity, onsite child care, lunches, and sending employees home with prepared dinners really works. Genentech is a California company that "develops and produces drugs that cure diseases," according to the company website. The company celebrated its thirteenth year on Fortune's "Best Places to work" list in 2011, also receiving "Best Places to Work" honors from Working Mother, LGBT Equality, and Computerworld. The reasons for this recognition are the important work that they do and the strong company culture that values equality and communication. Any discussion of how great it is to work at Genentech always circles back to the benefits that show a real respect for employees. In addition to traditional benefits like retirement and healthcare, they provide family friendly perks such as unlimited sick leave, personal concierge service, flexible work scheduling, childcare, nursing mother's rooms, onsite nurses, adoption assistance, and company sponsored family events. The list of innovative benefits goes on to include unusual benefits like pet insurance, free snacks, and paid six-week sabbaticals every six years! Zappos, the online shoe retailer, offers perks that match their fun-loving culture like pajama parties, nap rooms, regular happy hours, and a full-time life coach. Have these benefits worked for Genentech and Zappos? Ifyou translate longevity to morale and loyalty, you'd say they have. Both boast low turnover rates and high employee ratings for workplace satisfaction.
Q1) Describe the importance of employee benefits as a strategic component of fulfilling the goals of HRM at Genentech and Zappos?
Q2) Explain how Genentech and Zappos use employee benefits as a motivating tool?
Q3) Do you believe the incentive benefits such as those offered at Genentech and Zappos can be used in other organizations? Why or why not?
Answer:
1) Through employee benefits, the goals of HRM are achieved in effective ways.
2) Genentech also Zappos, try to make it a fun place to go to work at. Genentech and Zappos offer many benefits to employees that would attract and keep employees within the organization.
3) From a knowledgeable view, I actually believe that the motivation benefits as presented by the Genentech and Zappos Corporations can't be employed by other major or maybe small corporations.
Explanation:
1) The importance of employee benefits as a strategic component fulfilling the goals of HRM at Zippos and Genentech is that it can boost low turnover rates and high employee ratings for fulfillment. With placing benefits, employees will have the sensation of being more of an asset to the corporate instead of just being a worker. Thereupon employees would dedicate and put far more effort and time for better for the corporate which might then increase and generate more productivity and profit. When employees desire they need to be benefited from the organization successively they might become loyal to the organization and can stay rather than likely move to a different organization. Employees will tend to be more motivated to figure. Through employee benefits, the goals of HRM are achieved in effective ways.
2) Genentech also Zappos, struggle to form a fun place to travel to figure at. Genentech and Zappos offer many benefits to employees that might attract and keep employees within the organization. The good thing about benefits it can provide meaning and value to employees which will increase the worker's enthusiasm and morale within the work environment. With this, employees will then become more motivated to extend performance and feel secure within the organization which may cause low turnover rates and highly satisfied employees.
3) From a knowledgeable view, I actually believe that the motivation benefits as presented by the Genentech and Zappos Corporations can't be employed by other major or maybe small corporations. The motivation benefits offered at Genentech and Zappos Corporations are unique to their companies. I think that if other Corporations attempt to mirror the efforts of both Genentech and Zappos that their businesses would simply cease to exist. Companies today just don’t have the sustainability to take care of these lofty incentive packages for a three-year, five years, or even ten-year plan. Most companies simply don’t have the financial capital that the efforts of the Genentech and Zappos Corporations.
Tanouye Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Hours Wait time 24.9 Process time 2.6 Inspection time 0.5 Move time 2.2 Queue time 11.5 The throughput time was:
Answer: 16.8 hours
Explanation:
The throughput time will be calculated thus:
Inspection time = 0.5
Add: Process time = 2.6
Add: Move time = 2.2
Add: Queue time = 11.5
Throughput time = 16.8 hours
Therefore, the throughput time will be 16.8 hours.
When 30-year-old Lindsay was in a coma for 3 months, her friend Corey had the legal authority to handle her personal, financial, and medical affairs. Why did Corey have the legal right to do this? A. Corey was her life insurance agent. B. She had chosen Corey as her executor. C. Corey was named as her guardian. D. Corey had designated power of attorney.
Answer:
The correct answer is C. Corey was named as her guardian.
Explanation:
A legal guardian is a person appointed by a guardianship authority or a district court to represent a principal in matters where he or she is unable to control his or her own interests or manage his or her affairs himself or herself for other reasons, usually health. A legal guardian cannot act as such in matters where he or she and the principal could have a conflict of interest. Thus, in short, the guardian has the power to make decisions by and for the principal, without requiring the consent of the principal, who consents to his actions by means of a prior mandate.
What is result driven
Answer:
Being result-driven means that you are driven by the outcome of your goal rather than the process itself. It means that you put in effort and energy in order to get the best results in the end. I think I'm a result-driven person since I strive to get high grades and also because I'm a perfectionist. All in all being result-driven means that you are an individual that strives for the end goal/result that comes from your exertion of effort in that subject area.
Hope I helped, have a nice day :)
Morrison Company manufactures two products: digital cameras and video cameras. The company uses an activity-based costing system. The annual production and sales volume of digital cameras is 10,000 units and of video cameras is 8,000 units. Direct costs for the digital cameras are $122; for the video cameras, direct costs are $153.
For overhead costs, there are three activity cost pools with the following expected activities and estimated total costs:
Activity Cost Pool Estimated Cost Expected Activity Digital Cameras Expected Activity Video Cameras Total
Activity 1$30,000 100 500 600
Activity 2 $45,000 600 300 900
Activity 3 $96,600 400 2,000 2,400
Refer to Morrison Company. Using ABC, the total cost per digital camera is approximately:
Please show calculations!
Answer:
"$127.11 per unit" is the correct approach.
Explanation:
The activity cost as per the questions will be:
Activity 1:
= [tex]\frac{30,000}{600}[/tex]
= [tex]50[/tex] ($)
Activity 2:
= [tex]\frac{45000}{900}[/tex]
= [tex]50[/tex] ($)
Activity 3:
= [tex]\frac{96600}{2400}[/tex]
= [tex]40.25[/tex] ($)
Now,
The overhead cost for digital cameras will be:
= [tex](50\times 100)+(50\times 600)+(40.25\times 400)[/tex]
= [tex]5000+30000+16.100[/tex]
= [tex]51100[/tex] ($)
Per unit overhead cost will be:
= [tex]\frac{51100}{10000}[/tex]
= [tex]5.11[/tex] ($)
hence,
The total cost will be:
= [tex]Direct \ costs+Indirect \ costs[/tex]
= [tex]122+5.11[/tex]
= [tex]127.11 \ per \ unit[/tex] ($)
Jeff is a member of Go Big Red, LLC. Jeff decides he does not like the color red, preferring instead the colors black and gold. Jeff leaves the LLC for that reason. Upon dissociation all of the following apply to Jeff except:________.
a. duty of loyalty immediately ceases in all regards.
b. loses the right to manage the LLC.
c. right to have his interests to be bought out.
d. duty of care immediately ceases in all regards.
Answer:
Option "D" is correct.
Explanation:
Option "D" is correct because When a person or member dissociates then the person loses the right to manage, losses the right to act, ceases from their duty of loyalty, ceases from the duty of care immediately if any event occurs after dissociation and the member has the right to find their interest. Therefore, from the given options it can be seen that the duty of care remains intact when only to that event that had occurred before the dissociation.
What would cause an economy to be producing at a point inside its production possibilities curve?
Answer:
The correct answer is: the lack of effectivization in the use of their resources inside the economy to obtain the best outcomes possibles.
Explanation:
To begin with, in the economic theory the term known as production possibilities curve refers to a strategic tool, a graphic that can be used by the professionals of the area in order to understand how the economy is working with its resources, if the economy is producing well enough then the economy should be getting great development results and the point inside the graphic should be in the limit of the curve, but if the point is in the inside of the curve then that means that the resources inside that particulary economy are not being fully use to their best in order to obtain the best outcome so that will explain that there is still possibility to expand the production according to the theory of the tool itself.
U.S.-based Myva Foods Inc. is expanding its business to the Asian market. Which of the following will NOT be effective in the company's efforts to expand to international markets?
A) paying close attention to the cultural differences between Myva's home country and the host countries.
B) finding new ways to blend the Four Ps of the marketing mix in the new market by making an effort to understand the local culture.
C) applying the same marketing mix Myva uses in the U.S.market to the Asian market.
D) putting more effort into planning strategies for the international markets,even though it has experienced success in the U.S.market.
Answer:
Myva Foods Inc.
The attempt that will NOT be effective in the company's efforts to expand to international markets is:
C) applying the same marketing mix Myva uses in the U.S. market to the Asian market.
Explanation:
Expanding to the Asian market requires a different marketing mix than Myva is currently using in its U.S. home market. This means that if it applies the same marketing mix in the Asian market, it may likely remain unsuccessful. The two markets have cultural differences. So, it must find new ways to blend the Four Ps of Price, Product, Promotion and Place, to reflect its understanding of the Asian culture.
The attempt that will NOT be effective in the company's efforts to expand to international markets is: Applying the same marketing mix Myva uses in the U.S. market to the Asian market.
What is international market?International market refers to any geographical region where a company conducts business that is outside the territorial boundaries of its company's home country.
With regards to the above, expanding to the Asian market requires a different marketing mix than Myva is currently using in its U.S. home market. This is because if it applies the same marketing mix in the Asian market, it may likely remain unsuccessful.
Also, the two markets have different culture. It must therefore find new ways to blend the Four Ps of Price, Product, Promotion and Place, to reflect its understanding of the Asian culture.
Hence, the attempt that will NOT be effective in the company's efforts to expand to international markets is: Applying the same marketing mix Myva uses in the U.S. market to the Asian market
Learn more about international market here : https://brainly.com/question/20860719
Think of a product that you purchased within the past 6 months
Discuss these questions relative to the purchased product. Your answers should align with how these stages are done based on the consumer decision model in text.
How did you recognize that you needed the product?
Where or how you search for information on alternative products that would satisfy this need (product)?
What alternatives did the search process generate and what variables did you use to make the final decision to buy?
Where did you buy the product and why?
Were you satisfied after using or consuming the product? Explain.
There are 5 categories of influences as outlined by your text:economic, psychological. social, culture and ethnicity, purchase situation. Which one(s) do you think had the greatest effect on your purchasing decision? Please explain.
Answer:
Product purchased: a purse
How did you recognize that you needed the product?
Through a need for more space to carry personal items to work.
Where or how do you look for information about alternative products that meet this need (product)?
Buying online is one of the facilities made possible by new technologies, which allows us to choose the product that meets our desires and needs without having to go to a physical store, in addition to the possibility of comparing prices and getting special discounts.
What alternatives did the research process generate and what variables did you use to make the final purchase decision?
The alternatives found were fast fashion sites that offered a bag of the ideal size, with the expected quality and defined average price.
Where did you buy the product and why?
I bought the product at Zara, which is a top quality fashion department store that would meet all requirements and needs with the purchase.
Were you satisfied after using or consuming the product? Explain.
Yes, because the benefits added to the product met my needs and desires.
There are 5 categories of influences as described in your text: economic, psychological. social, culture and ethnicity, purchasing situation. Which one(s) do you think had the greatest effect on your purchase decision? Please explain.
The item that had the most effect on the purchase decision was the psychological and economic item, as the choice of the product was made due to a need for work, but whose purchase decision process took into account factors such as brand, quality and the price of the product.
Pick the correct statement related to pro forma statements from below. Multiple Choice Fixed assets must increase if sales are projected to increase. Net working capital is affected only when a firm's sales are expected to exceed the firm's current production capacity. The addition to retained earnings is equal to net income less cash dividends. Long-term debt varies directly with sales when a firm is currently operating at maximum capacity.
Answer:
The correct statement related to the pro forma statements is:
The addition to retained earnings is equal to net income less cash dividends.
Explanation:
When the beginning retained earnings are increased by the addition to retained earnings, it means that the cash dividends have been subtracted from the net income. This addition is the leftover net income after offsetting the dividends. It increases the retained earnings by the end of the financial period.
Dermody Snow Removal's cost formula for its vehicle operating cost is $3,080 per month plus $338 per snow-day. For the month of December, the company planned for activity of 20 snow-days, but the actual level of activity was 22 snow-days. The actual vehicle operating cost for the month was $10,130. The spending variance for vehicle operating cost in December would be closest to:
Answer:
$386 U
Explanation:
Calculation to determine what The spending variance for vehicle operating cost in December would be closest to:
Actual results $10,130
Less Flexible budget $10,516
($3,080+($338 per*22 snow-days)
Spending variance $386 Unfavorable
Therefore The spending variance for vehicle operating cost in December would be closest to:
$386 Unfavorable
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 40,000 units and sold 32,000 units at a price of $110 per unit. Manufacturing costs Direct materials per unit $ 42 Direct labor per unit $ 16 Variable overhead per unit $ 5 Fixed overhead for the year $ 360,000 Selling and administrative costs Variable selling and administrative cost per unit $ 10 Fixed selling and administrative cost per year $ 115,000 1a. Assume the company uses absorption costing. Determine its product cost per unit.
Answer:
Cool Sky
The product cost per unit under absorption costing is:
= $7.20
Explanation:
a) Data and Calculations:
First year production units = 40,000
First year sales units = 32,000
Ending inventory = 8,000 (40,000 - 32,000)
Selling price per unit = $110
Sales revenue = $3,520,000 (32,000 * $110)
Manufacturing costs
Direct materials per unit $ 42
Direct labor per unit $ 16
Variable overhead per unit $ 5
Fixed overhead for the year $ 360,000
Selling and administrative costs:
Variable selling and administrative cost per unit $ 10
Fixed selling and administrative cost per year $ 115,000
Production Cost per Unit under Absorption Costing:
Manufacturing costs: Unit Total
Direct materials per unit $ 42
Direct labor per unit $ 16
Variable overhead per unit $ 5
Total variable cost per unit $63 $2,520,000
Fixed overhead for the year $ 360,000
Total production cost for 40,000 $2,880,000
Unit product cost = $7.20 ($2,880,000/40,000)
The downward slope of the demand curve again illustrates the pattern that as _____________ rises, ______________ decreases.
Answer:
price; quantity demanded.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal.
According to the law of demand, there exist a negative relationship between the quantity of goods demanded and the price of a good i.e when the prices of goods and services in the market increases or rises: there would be a significant decline or fall in the demand for this goods and services.
This ultimately implies that, an increase in the price level of a product usually results in a decrease in the quality of real output demanded along the aggregate demand curve.
In conclusion, the downward slope of the demand curve again illustrates the pattern that as price of goods and services rises, quantity of goods and services demanded decreases.
Seldomridge, Inc., manufactures and sells two products: Product I5 and Product U0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product I5 700 7.0 4,900 Product U0 200 10.0 2,000 Total direct labor-hours 6,900 The direct labor rate is $24.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product I5 $116.10 Product U0 $212.10 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product I5 Product U0 Total Labor-related DLHs $ 246,468 4,900 2,000 6,900 Product testing tests 10,494 500 400 900 Order size MHs 837,660 4,700 4,500 9,200 $ 1,094,622 The unit product cost of Product U0 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
Seldomridge, Inc.
The unit product cost of Product UO under activity-based costing is closest to:
= $2,930.77
Explanation:
a) Data and Calculations:
Direct labor rate = $24.40
Product I5 Product U0 Total
Expected Production 700 200 900
Direct Labor-Hours Per Unit 7.0 10.0
Total Direct Labor-Hours 4,900 2,000 6,900
Total direct labor costs $119,560 $48,800 $168,360
Direct Materials Cost per Unit $116.10 $212.10
Total direct materials cost $81,200 $42,420 $123,620
Activity Estimated Activity Measures
Activity Cost Pools Measure Overhead Product I5 Product U0 Total
Labor-related DLHs $ 246,468 4,900 2,000 6,900
Product testing tests 10,494 500 400 900
Order size MHs 837,660 4,700 4,500 9,200
Total $ 1,094,622
Overhead Rates
Labor-related $35.72 ($246,468/6,900)
Product testing $11.66 ($10,494/900)
Order size $91.05 ($837,660/9,200)
Overhead applied to Product UO:
Labor-related = $71,440 ($35.72 * 2,000)
Product testing 4,664 ($11.66 * 400)
Order size 418,830 ($91.05 * 4,600)
Total overhead $494,934
Product UO
Direct labor costs $48,800
Direct materials costs 42,420
Overhead costs 494,934
Total product costs $586,154
Expected production units 200
Unit product cost = $2,930.77
Payment of an above-market wage reduces shirking by employees and reduces worker turnover because it multiple choice 2 decreases worker productivity. raises the opportunity cost of losing a job. lowers the opportunity cost of losing a job. creates more supervisory positions.
Answer:
raises the opportunity cost of losing a job.
Explanation:
Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
For example, when a business firm makes payment of an above-market wage, it reduces shirking (avoiding responsibilities) by employees and reduces worker turnover because it raises the opportunity cost of losing a job. Thus, employees take their jobs seriously and do not miss work unnecessarily due to the payment of an above-market wage.
PillPack is an example of a startup organization that grew out of the identification of a problem that needed a solution.
a. True
b. False
Answer:
True
Explanation:
What actions might be taken to reduce the risk associated with a loan to start the business? Give examples please
Answer:
funny business has the word loan in it never trusted cuz one they might take away all your money and use it for something else like spending it on spoiled Rich daughters and pretty much just using your own money on random things that they don't need
Every state allows an entrepreneur to form an L3C in that state (i.e., each state gives the option to establish an L3C just like it gives the option to establish an LLC in that state). Is this statement true or false
Answer:
True.
Explanation:
L3C is is a setup which requires program related investment PRI, which makes an investment foundation for profit to support philanthropic activities. There are various states which allows L3C formation just like LLC to the entrepreneurs.
Galaxy Corp. is considering opening a new division to make iToys that it expects to sell at a price of $15,250 each in the first year of the project. The company expects the cost of producing each iToy to be $6,700 in the first year; however, it expects the selling price and cost per iToy to increase by 3.00% each year.
Based on the preceding information and rounding dollar amounts to the nearest whole dollars, the company expects the selling price in the fourth year of the project to be_______ , and it expects the cost per unit in the fourth year of the project to be _______.
Which of the following statements about inflation’s effect on net present value (NPV) is correct?
A. When the selling price and cost per unit are expected to increase at the same rate, forgetting to take inflation into account in a capital budgeting analysis will typically cause the estimated NPV to be lower than the true NPV.
B. When the selling price and cost per unit are expected to increase at the same rate, you do not need to take inflation into account when performing a capital budgeting analysis.
Answer and Explanation:
The computation is shown below:
1
The calculation of the Expected selling price in the fourth year is
Expected Selling Price in year 1 $15,250
Expected Annual Growth rate is 3%
So,
Expected Selling Price in year 4 = 15250 × (1+3%)^3
= $16,664
2
The Calculation of Expected Cost per unit in the fourth year is
Expected Selling Price in year 1 = $6,700
Expected Annual Growth rate = 3%
So,
Expected Selling Price in year 4 = 6700 × (1+3%)^3
= $7,321
3
Inflation’s effect on net present value (NPV):
In the case when the selling price and the cost per unit rises at the similar rate so it is forgot to considered the inflation this will result in NPV that should be lower than the true NPV
explain its pros and cons of three bin system
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3 advantages and disadvantages of using Bin cards
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Advantages of Bin Cards :
(i) There would be less chances of mistakes being made as entries will be made at the same time as goods are received or issued by the person actually handling the materials.
(ii) Control over stock can be more effective, in as much as comparison of the actual quantity in hand at any time with the book balance is possible.
ADVERTISEMENTS:
(iii) Identification of the different items of materials is facilitated by reference to the Bin Card the bin or storage receptacle.
Disadvantages of Bin Cards :
(i) Store records are dispersed over a wide area.
(ii) The cards are liable to be smeared with dirt and grease because of proximity to material and also because of handling materials.
ADVERTISEMENTS:
(iii) People handling materials are not ordinarily suitable for the clerical work involved in writing Bin Cards.
please make my answer as a brainlist answer
A stock has an average expected return of 10.1 percent for the next year. The beta of the stock is 1.45. The T-Bill rate is 5.5% and the T-Bond rate is 3.5 %. What is the market risk premium?
a. 3.17%.
b. 4.60%.
c. 14.60%.
d. 2.48%.
e. 4.93%.
Answer:
The right solution is "4.55%".
Explanation:
Given that,
Expected return,
= 10.1%
Risk-free rate,
= 3.5%
Beta,
= 1.45
Now,
The market risk premium will be:
⇒ [tex]Expected \ return=Risk-free \ rate+Beta\times (Market \ risk \ premium)[/tex]
⇒ [tex]Market \ risk \ premium=\frac{Expected \ return-Risk -free \ rate}{Beta}[/tex]
By putting the values, we get
⇒ [tex]=\frac{10.1-3.5}{1.45}[/tex]
⇒ [tex]=\frac{6.6}{1.45}[/tex]
⇒ [tex]=4.55[/tex] (%)
Irwin Company has budgeted direct labor hours for the coming three months as follows: July, 6,500 hours; August, 8,100 hours; and September, 8,300 hours. Manufacturing overhead is budgeted at $13,300 per month plus $3.30 per direct labor hour. What is the budgeted manufacturing overhead for August
Answer:
the budgeted manufacturing overhead for August is $40,030
Explanation:
The computation of the budgeted manufacturing overhead for August is shown below:
= Budgeted manufacturing overhead + direct labor hour rate × direct labor hours for august
= $13,300 + $3.30 × 8,100 hours
= $13,300 + $26,730
= $40,030
Hence, the budgeted manufacturing overhead for August is $40,030
