Answer:
The cash conversion cycle of a firm is the amount of time required for a company to convert cash invested in its operations to cash received as a result of its operations.
Revenue of a segment includes A. only sales to unaffiliated customers B. Sales to unaffiliated customers and intersegment sales c. Sales to unaffiliated customers and interest revenue d. Sales to unaffiliated customers and other revenue and gains
Answer: Sales to unaffiliated customers and intersegment sales
Explanation:
A segment refers to a business component of a business which generates its own revenues.
Revenue of a segment includes the sales to unaffiliated customers and intersegment sales. Therefore, the correct option is B.
Cal Lury owes $21,000 now. A lender will carry the debt for five more years at 6 percent interest. That is, in this particular case, the amount owed will go up by 6 percent per year for five years. The lender then will require that Cal pay off the loan over the next 13 years at 9 percent interest. What will his annual payment be
Answer:
$3,753.59
Explanation:
Value of debt at end of 5 years = $21,000 * (1 + 6%)^5
Value of debt at end of 5 years = $21,000 * 1.3382255776
Value of debt at end of 5 years = $28102.7371296
Value of debt at end of 5 years = $28,102.74
Let x be the annual payments:
x*[1 - (1 + 9%)^-13] / 9% = $28,102.74
x * [1-0.32617864688] / 0.09 = $28,102.74
x * 7.486904 = $28,102.74
x = $28,102.74 / 7.486904
x = 3753.58626
x = $3,753.59
At a total cost of $2,480,000, Herrera Corporation acquired 160,000 shares of Tran Corp. common stock as a long-term investment. Tran Corp. has 400,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation.
Required:
Journalize the entries by Herrera Corporation.
Answer:
Explanation:
Journalizing is the approach taken by corporate organizations for recording daily operations and transactions in the organization. Organizations use it to produce the final accounts and assess the company's performance and productivity.
Assuming:
the current net income of the Tran Corp. = $510,000 &
A cash dividend of $1.10 / common share is paid by Tran Corp.
Then:
To record entry for income of Trans Corp:
Description Debit ($) Credit($)
Investment - Tran Corp. stock
(510000*(160000/400000) 204000
Tran Corp COmpany Income 204000
(To record income of Tran Corp Company)
The entry record for dividend received by cash:
Description Debit ($) Credit ($)
Cash (160000/1.10) 145,455
Investment - Tran Corp stock 145,455
(Record recieved dividend)
g A machine costing $58,944 with a 6-year life and $55,853 depreciable cost was purchased January 1. Compute the yearly depreciation expense using straight-line depreciation. Round your answer to the nearest whole dollar.
Answer:
$9,309
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
DEPRECIABLE COST / USEFUL LIIFE
$55,853 / 6 = $9,309
It has been argued that the traditional model of a full-service, lead advertising agency is becoming obsolete. Discuss the changes occurring in the industry and how they are affecting the traditional lead agency model.
Answer:
Quilt
Explanatio
Hope it's right
Answer:
to complex to solve without the artical.
Explanation:
because there is no artical it cant be answered.
Your grandparents would like to establish a trust fund that will pay you and your heirs $205,000 per year forever with the first payment 12 years from today. If the trust fund earns an annual return of 4 percent, how much must your grandparents deposit today?
Answer:
PV= $3,201,059.88
Explanation:
Giving the following information:
Annual cash flow= $205,000
First payment= 12 years from today
Interest rate= 4%
First, we need to calculate the value of the account 12 years from today. We need to use the following formula:
FV= Cf/ i
FV= 205,000 / 0.04
FV= $5,125,000
Now, the amount to be deposited today:
PV= FV / (1 + i)^n
PV= 5,125,000 / (1.04^12)
PV= $3,201,059.88
At Cool Clothes Inc., there is a total focus on providing care and satisfaction to each customer. In the major clients division, each manager is assigned three employees to supervise, whereas in the product assembly division, each manager supervises about 15 employees. The major clients division managers can be described as having _____, as opposed to _____ for the product assembly division managers.
Answer: a narrow span of control; a wide span of control
Explanation:
Based on the information given, the major clients division managers can be described as having a narrow span of control, as opposed to a wide span of control for the product assembly division managers.
The span of control simply means the number of subordinates that are under the direct control and supervised by a certain manager.
Since we are informed that while in the major clients division, every manager is assigned three employees to supervise, whereas in the product assembly division, each manager supervises about 15 employees, then product assembly division managers has a wide span of control.
Three months of rent were prepaid on May 1 for $7,200, but two months have now expired, leaving only one month prepaid at June 30. What is the amount of rent expense that will be recorded in the related adjusting entry dated June 30?a- $0b- $2,400c- $4,800d- $7,200
Answer:
b- $2,400
Explanation:
The computation of the amount that should be recorded is given below:
= 3 months rent ÷ number of months
= $7,200 ÷ 3 months
= $2,400
Hence, the amount of rent that should be recorded is $2,400
Therefore the option b is correct
The same should be considered
A zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value. If stated interest rates are 5% annually (with monthly compounding) how much would you pay today for a zero-coupon bond with a face value of $1,900 that matures in 8 years
Answer:
Zero-cupon bond= $1,286
Explanation:
Giving the following information:
Interest rate= 5%
Face value= $1,900
Years to maturity= 8 years
To calculate the value of the bond, we need to use the following formula:
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,900 / (1.05)^8]
Zero-cupon bond= $1,286
A director who becomes involved in litigation because of his or her position has no right to be indemnified for the costs. a. True b. False
Answer:
b. False
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.
It is considered to be one of the most complicated and expensive type of organization.
Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity.
One of the advantage of a corporation is that, owners have limited liability for debt to the extent to which they have invested and as such are not personally liable for some of debt owed by corporation.
Hence, a director who becomes involved in litigation because of his or her position has a right to be indemnified or reimbursed for the costs involved or incurred.
Shidan Apartments purchased an apartment building to rent to university students on November 18, 2017. The following costs were incurred during 2017, before the tenants moved in: Purchase price of the building $220,000 Purchase price of the land 100,000 Transfer taxes 10,000 Interest incurred on the mortgage loan to purchase 4,000 Attorney and real estate agent's fees 15,000 Repave the parking lot 6,000 How much will Shidan Apartments record as an asset
Answer:
$351,000
Explanation:
The computation of the amount of an asset is as follows;
Purchase price of the building $220,000
Purchase price of the land $100,000
Transfer taxes $10,000
Attorney and real estate agent's fees $15,000
Repave the parking lot $6,000
Cost of apartment $351,000
hence, the cost of an apartment is $351,000
Claire and Don are farmers who produce beef and corn. In a year, Claire can produce 40 tons of beef or 160 bushels of corn. In a year, Don can produce 10 tons of beef or 20 bushels of corn. How do Clair and Don maximize their total output of beef and corn?
A. Claire produces beef and corn while Don produces nothing.
B. Claire produces beef and Don produces com.
C. Claire and Don each spend half of their time producing beef and the other half producing corn.
D. Don produces beef and Claire produces com.
Select financial statement data for two recent years for Davenport Company are as follows:
20Y5 20Y4
Sales $1,776,000 $1,020,000
Fixed assets: Beginning of year 720,000 640,000
End of year 760,000 720,000
a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round to one decimal place.
20Y5 20Y4
Fixed Asset Turnover Ratio
b. Does the change in the fixed asset turnover ratio from 20Y4 to 20Y5 indicate a favorable or an unfavorable change?
Answer:
20Y5 = 2.4
20Y4 = 1.5
It is favourable
Explanation:
Fixed asset turnover = revenue / average net fixed assets
Average fixed asset =( fixed asset at the beginning of year + fixed asset at the end of year) / 2
20y5 = (720,000 + 760,000) / 2 = 740,000
20y4 = (720,000 + 640000) / 2 = 680,000
Fixed asset turnover = $1,776,000 / 740,000 = 2.4
$1,020,000 / 680,000 = 1.5
the higher the ratio, the better for a firm. it means that less fixed asset is generating higher revenues
Sheridan Company's prepaid insurance was $192000 at December 31, 2021 and $89600 at December 31, 2020. Insurance expense was $62000 for 2021 and $53300 for 2020. What amount of cash disbursements for insurance would be reported in Sheridan's 2021 net cash provided by operating activities presented on a direct basis
Answer:
$164,400
Explanation:
Calculation to determine What amount of cash disbursements for insurance would be reported in Sheridan's 2021 net cash provided by operating activities presented on a direct basis
Using this formula
Cash disbursements for insurance =2021 prepaid insurance +Insurance expense-BOY prepaid insurance
Let plug in the formula
Cash disbursements for insurance=$192,000+ $62,000-$89,600
Cash disbursements for insurance=$164,400
Therefore the amount of cash disbursements for insurance that would be reported in Sheridan's 2021 cash provided by operating activities presented on a direct basis is $164,400
A total materials variance is analyzed in terms of quantity and quality variances. tight and loose variances. price and quantity variances. buy and sell variances.
Answer:
price and quantity variances.
Explanation:
In Financial accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Manufacturing costs can be defined as the overall costs associated with the acquisition of resources such as materials and the cost of converting these raw materials into finished goods. Manufacturing costs include direct labor costs, direct materials cost and manufacturing overhead costs.
Total direct materials variance gives the difference between the budgeted cost and actual cost of a unit of goods produced.
Generally, a total materials variance is analyzed in terms of price and quantity variances used by a manufacturer in the manufacturing of a particular product.
You are now 20 years of age and decide to save $100 at the end of each month until you are 65. If the interest rate is 9.2%, how much money will you have when you are 65?
Answer:
FV= $804,326.91
Explanation:
Giving the following information:
Monthly deposit (A)= $100
Interest rate (i)= 0.092/12= 0.0077
Number of periods= 45*12= 540 months
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {100*[(1.0077^540) - 1]} / 0.0077
FV= $804,326.91
Product G10 used the following quantity of activity drivers to produce 100 units of final product: 12 setups 22 material moves, and 32 machine hours. The total ABC cost and unit ABC cost assigned to Product G10 is:
Complete Question:
Ace, Inc. has three activity pools which have the following costs: Machine setups $15,000 Material moves $22,000 Machine operations $14,000 The activity cost drivers (and driver quantity) for the three pools are, respectively, number of setups (100), number of material moves (220), and number of machine hours (175). Product G10 used the following quantity of activity drivers to produce 100 units of final product: 12 setups, 20 material moves, and 32 machine hours. The total ABC cost and unit ABC cost assigned to Product G10 is: Select one: A. $3,630 total ABC cost and $36.30 unit ABC cost B. $10,300 total ABC cost and $103. unit ABC cost C. $6,360 total ABC cost and $63.60 unit ABC cost D. $3,300 total ABC cost and $330 unit ABC cost
Answer:
Ace, Inc.
The total ABC cost is:
= $6,560 and
Unit ABC cost assigned to Product G10 is:
= $65.60.
Explanation:
a) Data and Calculations:
Activity Pools Costs Cost Drivers Activity Rate
Machine setups $15,000 number of setups (100) $150/setup
Material moves $22,000 number of material moves (220) 100/move
Machine operations $14,000 number of machine hours (175) 80/m.hr
Product G10
Number of units produced = 100
Machine setups cost = $1,800 (12 * $150)
Material moves cost = 2,200 (22 * $100)
Machine operations cost 2,580 (32 * $80)
Total ABC cost = $6,560
Unit ABC cost = $65.60 ($6,560/100)
Carol Co. prepares a statement of cash flows starting with net income and then adjusting for items necessary to obtain net cash provided or used by operating activities. Carol Co. must be using the______method of reporting the statement of cash flows.
Answer:
indirect
Explanation:
From the question we are informed about Carol Co. prepares a statement of cash flows which start with net income and then adjusting for items necessary to obtain net cash provided or used by operating activities. In this case, Carol Co. must be using the
indirect method of reporting the statement of cash flows. In financial accounting, cash flow statement can be regarded as financial statement which express the way changes in balance sheet accounts as well as income affect cash and cash equivalents, and also give the analysis breakdown to operating, financing as well as investingactivities.
The methods for reporting statement of cash flows could be Direct or indirect method.
The indirect method can be regarded as method that gives presentation of the statement of cash flows by strating
with net income or net loss, along with deduction or additions to the amount for non-cash revenue and expense items or from them which comes subsequently, which then results to cash flow from operating activities.
In evaluating the profit center manager, the income from operations should be compared a.across profit centers b.to historical performance or budget c.to the competitor's net income d.to the total company earnings per share
Answer: to historical performance or budget
Explanation:
A profit center in a business is a division that is able to make revenues independently and contribute to the revenue of the entire business. In evaluating the performance of a profit center manager, it is best to compare the performance to a budget or their historical performance.
This is because profit centers engage in different businesses and so their revenue making style will be unique. Some profit centers will make more than others because of the goods they produce or the way they produce it. It is therefore best to compare a profit center to an internal measure such as the budget and historical performance.
If the profit center exceeds either of these then they are performing well.
Given the following data: Treasury Bill Maturity DTM Bid Asked Mar 90 1.20 1.15 If you invest $10,000 today at the risk-free rate, how much will you receive in 90 days
Answer: $10029
Explanation:
Based on the information given in the question, if $10000 is invested today at the risk-free rate, the amount that'll be received in 90 days will be calculated thus:
= Investment × (1 + Asked) × (DTM/360)
= 10000 + (1 + 0.0115) × (90/360)
= 10000 + 1.011 × 0.25
= 10029
Therefore, the answer is $10029
Wild Flowers Express has a debt-equity ratio of .60. The pretax cost of debt is 9 percent while the unlevered cost of capital is 14 percent. What is the cost of equity if the tax rate is 23 percent
Answer:
0.1631 ; 16.31%
Explanation:
Given:
Cost of capital = 14% = 0.14
Debt to equity ratio = 60% = 0.6
Cost of debt = 9% = 0.09
Tax rate = 23% = 0.23
Cost of equity : cost of capital + debt - to - equity ratio * (1 - tax rate) * (cost of capital - cost of debt)
Cost of equity = 0.14 + 0.60 × (1 - 0.23) × (0.14 - .09)
Cost of equity :
0.14 + 0.60 * 0.77 * 0.05
0.14 + 0.0231
= 0.1631 ; 0.1631 * 100% = 16.31%
Here are the U.S. tax rates and their corresponding tax brackets based on filing status for single individuals (i.e. not corporations) If taxable income is: Then income tax equals: Not over $9,875 10% of the taxable income Over $9,875 but not over $40,125 $987.50 plus 12% of the excess over $9,875 Over $40,125 but not over $85,525 $4,617.5 plus 22% of the excess over $40,125 Over $85,525 but not over $163,300 $14,605.5 plus 24% of the excess over $85,525 Over $163,300 but not over $207,350 $33,271.5 plus 32% of the excess over $163,300 Over $207,350 but not over $518,400 $47,367.5 plus 35% of the excess over $207,350 Over $518,400 $156,235 plus 37% of the excess over $518,400 Layla's taxable income for 2019 was $182,431. How much are her federal income taxes to the nearest dollar
Answer:
Layla's federal income taxes to the nearest dollar are:
= $39,393.
Explanation:
a) Data and Calculations:
Layla's taxable income
for 2019 = $182,431 Income Tax
Income tax on (163,300) = $33,271.50
Excess of $163,300 19,131 = $6,121.92 ($19,131 * 32%)
Total income tax payable = $39,393.42
U.S. Tax Rates and Corresponding Tax Brackets (Single Individuals)
If taxable income is: Then income tax equals:
Not over $9,875 10% of the taxable income Over $9,875 but not over $40,125 $987.50 plus 12% of the excess over $9,875
Over $40,125 but not over $85,525 $4,617.5 plus 22% of the excess over $40,125
Over $85,525 but not over $163,300 $14,605.5 plus 24% of the excess over $85,525
Over $163,300 but not over $207,350 $33,271.5 plus 32% of the excess over $163,300
Over $207,350 but not over $518,400 $47,367.5 plus 35% of the excess over $207,350
Over $518,400 $156,235 plus 37% of the excess over $518,400 Layla's taxable income for 2019 was $182,431
The cost of preferred stock is different from the cost of _____ because there is no maturity date on which principal must be paid.
Answer:
debt
Explanation:
One of the cheapest source used by organizations to finance their businesses after financing a debt they incurred is preferred stock.
Cost of preferred stock can be defined as the rate or price that a company pays their investors in return for the income generated through the issuance and sales of its stocks.
Generally, the cost of preferred stock is different from the cost of debt because there is no maturity date on which principal must be paid by the company to the investors.
A bill was introduced into Congress last year suggesting changes to the income tax code. Congress now passed this new tax reform act in the last session and over the next few years the new laws will begin to impact the nation. This is an example of what type of policy
Answer:
Macroeconomic fiscal policy.
Explanation:
Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.
Which of the following statements are true about the chart of accounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Answer:
The following statements are true about the chart of accounts:
a. Different companies use different charts of accounts based on individual company need.
c. The chart of accounts should be ordered in a logical sequence based on type of account.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Which of the following statements are true about the chart of accounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
a. Different companies use different charts of accounts based on individual company need.
b. The chart of accounts contains the balance of all of the accounts in a ledger.
c. The chart of accounts should be ordered in a logical sequence based on type of account.
d. The chart of accounts can be ordered in any sequence because they are not formal financial systems.
The explanation of the answer is now provided as follows:
A chart of accounts can be described as a list of financial accounts that an accountant sets up for an organization and makes available to the bookkeeper for inputting transactions into the general ledger.
Therefore, the chart of accounts for each account type should be organized in a logical sequence. Depending on the needs of the business, different organizations employ different charts of accounts.
Based on the explanation above, the following statements are true about the chart of accounts:
a. Different companies use different charts of accounts based on individual company need.
c. The chart of accounts should be ordered in a logical sequence based on type of account.
The annual demand of a product is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year. Calculate the optimal order quantity using the fixed-order quantity model. [Select the appropriate range in which your answer falls.]
Answer: 240
Explanation:
Since the annual demand of a product is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, then the optimal order quantity will be calculated as:
Optimal order quantity = √(2 × Annual demand × Ordering cost / Holding cost)
where,
Annual demand = 12000
Ordering cost = 6
Holding cost = 2.5
Optimal order quantity will be:
= √(2 × 12000 × 6/2.5)
== √(144000/2.5)
= ✓57600
= 240
Miracle Clean's variable costs are $3.00 per bottle and Fixed Expenses are $350,000 per year. The company currently sells 150,000 bottles for $6.50 which results in profit of $175,000. The company is considering raising the selling price to $7.00 per bottle which is expected to decrease sales by 20%. If the price is raised, the number of units that must be sold to keep the profits unchanged is
Answer:
131,250= number of units
Explanation:
Giving the following information:
We need to calculate the number of units to be sold to maintain a profit of $175,000.
Unitary variable cost= $3
Fixed expenses= $350,000
Selling price= $7
Net income= total contribution margin - fixed cost
175,000= number of units*(7 - 3) - 350,000
525,000 = number of units*4
525,000 / 4= number of units
131,250= number of units
Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 115,200 $ 80,000 $ 18,000 $ 7,200 $ 4,000 $ 6,000 Percent uncollectible 1 % 3 % 5 % 8 % 11 % 1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. 2. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000 credit.
Answer:
Net Zero Products
1. The balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method is:
= $2,680.
2. The Adjusting Entry:
Debit Bad Debts Expense $1,680
Credit Allowance for Doubtful Accounts $1,680
To record bad debts expense and to bring the balance of the Allowance for Doubtful Accounts to a credit balance of $2,680.
Explanation:
a) Data and Calculations:
Days Past Due Total Percent Amount
AR Uncollectible Uncollectible
0 $80,000 1 % $800
1 to 30 $18,000 3 % 540
31 to 60 $7,200 5 % 360
61 to 90 $4,000 8 % 320
Over 90 $6,000 11 % 660
Total $ 115,200 $2,680
Allowance for Doubtful Accounts:
Unadjusted balance = $1,000
Adjusted balance 2,680
Bad Debts Expense = $1,680
Tri Town Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Middleton Home and Garden Expo. The exhibit will cost the company $14,980 for space. At the show, Tri Town Interiors will present a slide show on a laptop, pass out brochures that were printed previously (the company printed more than needed), and show its portfolio of previous jobs.
The company estimates that revenue will increase by $40,060 over the next year as a result of the exhibit. For the previous year, profit was as follows: $213,615 $18,106 81,459 56,285 18,811 Revenue Less: Design supplies Salary of Samantha Spade (owner) Salary of Kim Bridesdale (full-time employee) Rent Utilities Depreciation of office equipment Printing of advertising materials Advertising in Middleton Journal Travel expenses other than depreciation of autos Depreciation of company cars Net income 6,570 4,000 812 3,080 2,890 9,930 201,943 $11,672
Assume that design supplies and travel other than depreciation are variable costs.
Calculate the impact of the exhibit on company profit. (Round intermediate calculations to 4 decimal places, e.g. 0.3215 and final answer to 0 decimal places, e.g. 125.)
Company profit will _______ by _______
Should the company exhibit at the home show?
The company ________ exhibit at the home show.
Answer:
Tri Town Interiors
Company profit will increase by $21,272.
The company should exhibit at the home show.
Explanation:
a) Data and Calculations:
Cost of the exhibit = $14,980
Increase in revenue from the exhibit = $40,060
Increase in revenue from the exhibit = 19% ($40,060/$213,615 * 100)
Design supplies = $21,365 ($18,106 * 1.19)
Travel expenses other than depreciation of autos = $3,439 ($2,890 * 1.19)
Revenue $213,615 $253,675
Less:
Design supplies $18,106 $21,365
Salary of Samantha Spade (owner) 81,459 81,459
Salary of Kim Bridesdale
(full-time employee) 56,285 56,285
Rent 18,811 18,811
Utilities 6,570 6,570
Depreciation of office equipment 4,000 4,000
Printing of advertising materials 812 812
Advertising in Middleton Journal 3,080 3,080
Travel expenses other than
depreciation of autos 2,890 3,439
Cost of exhibit 14,980
Depreciation of company cars 9,930 201,943 9,930 220,731
Net income $11,672 $32,944
Increase in net income = $21,272 ($32,944 - $11,672)
Flagstaff Company has budgeted production units of 9,000 for July and 9,200 for August. The direct labor requirement per unit is 0.50 hours. Labor is paid at the rate of $22 per hour. The total cost of direct labor budgeted for the month of August is:
Answer:
the total cost of direct labor budgeted for the month of August is $101,200
Explanation:
The computation of the total cost of direct labor budgeted is shown below:
Direct labor cost is
= 9,200 × .50 hours × $22 per hour
= $101,200
Hence, the total cost of direct labor budgeted for the month of August is $101,200
The same should be relevant
