Answer: A. Rivalry
Explanation:
Microsoft seems to be operating in an oligopolistic market where it is the dominant business and there are other smaller competitors. A common factor in such a market is rivalry.
Rivalry occurs when a company in such a market, reduces their prices to a lower level than others so as to capture market share. This is what Microsoft did in this place and it enabled them to capture the market share that Corus was targeting until Corus went out of business.
Your roommate John is an employee at a property management company. His employer asks him to
travel to a remote town in Yukon to meet with a prospective client.
A. Accommodation
Not knowing what type of accommodation would be available, John and his employer agree in
advance to pay John $300 for the 3-night accommodation in Yukon. Because of the high cost of living
in Yukon, John actually spends $400.
B. Parka for Extreme Cold
Yukon happens to be experiencing a record cold period, with temperatures as low as -40C. Since John
does not have any outerwear suitable for such severe weather, his employer also gives him $200 to
buy a a very warm parka jacket. After receiving the $200, John manages to find one on sale for
$198.99 that is perfect for the business trip. Assume John is very adverse to cold weather and plans
never to go to any place that cold or wear that jacket again after this business trip.
Required:
Explain to John the tax effects of the two events on his employment income. Note that your grade is
based on how you explain the tax treatment, demonstrating your understanding of the tax framework
and relevant provisions. Almost no mark is given just on comments such as "include $x" or "deduct
$y".
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May.
11 Sydney accepts delivery of $40,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $30,000. Sydney pays $345 cash to Express Shipping for delivery charges on the merchandise.
12 Sydney returns $1,400 of the $40,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,050.
20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. (Both Sydney and Troy use a perpetual inventory system and the gross method.)
Required:
a. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.
b. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
Answer:
1. Sydney Buyer
11 Dr Accounts Payable $40,000
Cr Merchandise Inventory $40,000
11 Dr Merchandise Inventory $345
Cr Cash $345
12 Dr Merchandise Inventory $1,400
Cr Accounts Payable $1,400
20 Dr Accounts Payable $38,600
Cr Merchandise Inventory $1,158
Cr Cash $37,442
2. Troy - Seller
11 Dr Accounts Receivables $40,000
Cr Sales $40,000
Dr Cost of Goods Sold $30,000
Cr Merchandise Inventory $30,000
13 Dr Sales Returns and Allowances $1,400
Cr Accounts Receivables $1,400
Dr Cost of Good Sold $1,050
Cr Merchandise Inventory $1,050
21 Dr Cash $37,442
Dr Sales Discount $1,158
Cr Accounts Receivables $38,600
Explanation:
1. Preparation of journal entries that Sydney Co. records for these transactions.
1. SYDNEY BUYER
11 Dr Accounts Payable $40,000
Cr Merchandise Inventory $40,000
11 Dr Merchandise Inventory $345
Cr Cash $345
12 Dr Merchandise Inventory $1,400
Cr Accounts Payable $1,400
20 Dr Accounts Payable $38,600
($40,000-$1,400)
Cr Merchandise Inventory $1,158
($38,600-$37,442)
Cr Cash $37,442
[$38,800- [($1,400 × (100% – 3%)]
2. Preparation of the journal entries that Troy Corporation records for these transactions.
TROY - SELLER
11 Dr Accounts Receivables $40,000
Cr Sales $40,000
Dr Cost of Goods Sold $30,000
Cr Merchandise Inventory $30,000
13 Dr Sales Returns and Allowances $1,400
Cr Accounts Receivables $1,400
Dr Cost of Good Sold $1,050
Cr Merchandise Inventory $1,050
21 Dr Cash $37,442
[$38,800- [($1,400 × (100% – 3%)]
Dr Sales Discount $1,158
($38,600-$37,442)
Cr Accounts Receivables $38,600
($40,000-$1,400)
Workings:
May 11 Purchased goods=($40,000 × [100% – 3%])
May 11 Purchased goods= $38,800
May 12 Returned goods= ($1,400 × [100% – 3%]) May 12 Returned goods= $1,358
May 20 Paid balance within the discount period= ($38,800 – $1,358)
May 20 Paid balance within the discount period= $37,442
Suppose you have $100 of endowment, and you are offered a chance to buy a lottery which costs $36. The lottery has 25% of chance to win a prize of $G, or you just lose and get nothing. Suppose your utility function on wealth is . What is the least prize size G that you will be willing to buy the lottery
Answer:
The least prize size G that I will be willing to buy the lottery is 192
Explanation:
First, Calculate the expected utility
Expected utility = [tex]\sqrt{100}[/tex] = 10
There are two cases
Case 1
I win = 100 - 36 + G = 64 + G
Case 2
I lose = 100 - 36 = 64
Hence the expected utility can be calculated as follow
Expected utility = Chance to win x [tex]\sqrt{( 64 + G )}[/tex] + Chance to lose x [tex]\sqrt{64}[/tex]
10 = 25% x [tex]\sqrt{( 64 + G )}[/tex] + ( 100% - 25% ) x [tex]\sqrt{64}[/tex]
10 = 25% x [tex]\sqrt{( 64 + G )}[/tex] + 75% x 8
10 = 25% x [tex]\sqrt{( 64 + G )}[/tex] + 6
10 - 6 = 25% x [tex]\sqrt{( 64 + G )}[/tex]
4 = 25% x [tex]\sqrt{( 64 + G )}[/tex]
4 / 25% = [tex]\sqrt{( 64 + G )}[/tex]
16 = [tex]\sqrt{( 64 + G )}[/tex]
[tex]16^{2}[/tex] = [tex](\sqrt{( 64 + G )})^{2}[/tex]
256 = 64 + G
G = 256 - 64
G = 192
1) (1 pt.) Consumers who put a high value on a service A) are better off with perfect price discrimination. B) are better off under a single-price monopoly. C) are indifferent between perfect price discrimination and a single-price monopoly. D) incur deadweight loss under either single-price monopoly or perfect price discrimination.
Answer:
B) are better off under a single-price monopoly.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
A single-price monopoly can be defined as a situation in which a business firm sells each unit of its product or service at the same price for all of its customers. Thus, it requires charging the same amount of money (price) from its customers for each unit of the product it sells.
Hence, any consumer that place or put a high value on a service are better off under a single-price monopoly because the price is universal across the company.
Determine the amount of teller cost in total and the average teller cost per branch for Seattle Bank, assuming that the start-up division operates 10, 15, 20, or 25 branches. In this case (the activity base is the number of branches), is the teller cost a fixed or a variable cost
Answer:
Explanation:
According to the question, each branch has three tellers and the total cost per branch is 96,000. Meaning that we can divide this cost by 3 to get the cost per teller.
96,000 / 3 = $32,000 average teller cost.
To calculate the total cost for different number of branches we multiply the number of branches by 96,000 like so...
96,000 * 10 = $960,000 per year
96,000 * 15= $1,440,000 per year
96,000 * 20 = $1,920,000 per year
96,000 * 25 = $2,400,000 per year
The teller cost is a fixed cost because the total cost per branch does not change.
Answer:
The previous person is correct except that it is a variable cost (at least that is what my McGraw hill connect said was the answer.
Explanation:
According to the question, each branch has three tellers and the total cost per branch is 96,000. Meaning that we can divide this cost by 3 to get the cost per teller.
96,000 / 3 = $32,000 average teller cost.
To calculate the total cost for different number of branches we multiply the number of branches by 96,000 like so...
96,000 * 10 = $960,000 per year
96,000 * 15= $1,440,000 per year
96,000 * 20 = $1,920,000 per year
96,000 * 25 = $2,400,000 per year
The teller cost is a variable cost
After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the Debit and Credit columns are $74,440 and $93,750, respectively. What is the amount of the net income or net loss for the period
Christmas Express makes wreaths in batch sizes of 30. The cutting and assembly process takes 3 minutes per wreath, and the decorating process time is 9 minutes per wreath. It takes 4 minutes to move the wreaths from the cutting and assembly process to the decorating process. a. Compute the value-added, non-value-added, and total lead times of the wreath process.
Answer and Explanation:
The computation is shown below:
The Value added lead time is
= (cutting & assembly + decorating process time)
= 3 minutes + 9 minutes
= 12 minutes
For Non-value added lead time :
Move time = 4 minutes
Now
within batch wait time = value added time × ( batch size - 1)
= (3 + 9) × ( 12 - 1)
= 132 minutes
So,
Total lead time = 144 minutes
Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 35,000 cases of cola were sold every week at a price of $4 per case. After the tax, 30,000 cases of cola are sold every week; consumers pay $6 per case, and producers receive $3 per case (after paying the tax).
The amount of the tax on a case of cola is $__________ per case. Of this amount the burden that fails on consumer is $_________
Siobhan Roy has a$100,000 ring and keeps$100,000 cash in a checking account that paysno interest. If the ring is stolen, Siobhan will be forced to replace it at a cost of$100,000. Thechance of this happening is 1/100. She can, however, get insurance that would completelyreimburse to her the$100,000 if her ring was stolen.
What is the largest premium she would be willing to pay and what's the certainty equiv- alent of the event if her U-function is:
(i) U = y1/4
(ii) U = y*
(iii) U = Y?
where Y denotes the amount of cash she has. (Note that her utility function does not include the value of the ring, since she always has the ring.)
Answer:
i) $4048.74
ii) $250.94
iii) $1000
Explanation:
cost of ring = $100,000
P( stolen ring ) = 1/100 = 0.01
i) U = y^1/4
expected utility without insurance
Eu = 100,000^1/4 ( 0.99) + 0^1/4 ( 0.01 ) = 17.60
∴ largest premium equivalent utility = ( 17.60 )^4 = $95951.26
Largest premium = 100,000 - 95,951.26 = $4048.74
ii) U = y4
attached below
iii) U = Y
attached below
Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. The broker quotes a price of $1,180. Jim is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 14 percent interest, and it has 25 years remaining until maturity. The current yield to maturity on similar bonds is 12 percent. Compute the new price of the bond.
Answer:
Jim Busby and Bonds of Disk Storage Systems
The new price of the bond is:
= $21,059
Explanation:
a) Data and Calculations:
Quoted price of bond = $1,180
Face value of bond = $1,000
Coupon interest rate = 14%
Bond's maturity period = 25 years
Current yield to maturity = 12%
Therefore, new price of the bond is computed as follows:
Bond Price = C* (1-(1+r)-n/r ) + F/(1+r)n
where C = Periodic coupon payment = $140 ($1,000 * 14%)
• F = Face / Par value of bond = $1,000
• r = Yield to maturity (YTM) = 12% and
• n = No. of periods till maturity = 25 years
= $140 * (1 – (1+0.12)^-25)/0.12 +$1000/(1+0.12)^25
= $140 * (1 - -17.00)/0.12 + $1,000/17.00
= $140 * (18.00)/0.12 + $1,000/17.00
= $140 * 150 + $59
= $21,000 + $59
= $21,059
The Winter Wear Company has expected earnings before interest and taxes of $3,800, an unlevered cost of capital of 15.4 percent and a tax rate of 22 percent. The company also has $2,600 of debt with a coupon rate of 5.7 percent. The debt is selling at par value. What is the value of this firm
Answer:
$ 19,819
Explanation:
Calculation to determine the value of this firm
Using this formula
Firm Value = [ [ Earnings before interest and tax x (1 - tax rate) ] / Unlevered cost of capital ] + Amount of debt x tax rate
Let plug in the formula
Firm value= [ [ $ 3,800 x (1 - 0.22) ] / 0.154 ] + $ 2,600 x 22%
Firm value=[($3,800×.78)/0.154]+$572
Firm value=($2,964/0.154)+$572
Firm value=$19,246.75+$572
Firm value=$19,818.76
Firm value= $ 19,819 Approximately
Therefore the value of this firm will be $ 19,819
Privett Company
Accounts payable $32,581
Accounts receivable 74,771
Accrued liabilities 6,290
Cash 24,116
Intangible assets 42,381
Inventory 74,844
Long-term investments 95,587
Long-term liabilities 79,677
Marketable securities 31,145
Notes payable (short-term) 24,824
Property, plant, and equipment 671,789
Prepaid expenses 2,412
Based on the data for Privett Company, what is the amount of quick assets?
a. $1,660,292
b. $823,594
c. $119,071
d. $53,633
Answer:
$130,032
Explanation:
Calculation to determine the amount of quick assets
Using this formula
Quick assets=Accounts receivable +Cash+Marketable securities
Let plug in the formula
Quick assets=$74,771+$24,116+31,145
Quick assets= $130,032
Therefore the amount of quick assets is $130,032
A company's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130. The amount of sales required to realize an operating income of $200,000 is Group of answer choices
Answer:
The answer is 14,167 units
Explanation:
Target sales is the amount of sales a company has projected itself to sell within a particular period.
Target sales(in units) =
(Fixed cost + target income) / contribution margin
Where contribution margin is sales in unit minus variable costs
($1,500,000 + $200,000) / $250 - $130
$1,700,000/$120
=14,167 units
Therefore, 14,167 units is the amount of sales that will need to be recorded to generate an operating income of $200,000
What is the power to make the decision necessary to complete a task called
has issued bonds that have a 8% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 5%. What is the price of the bonds
Answer:
Bond Price= $1,195.82
Explanation:
Giving the following information:
Face value= $1,000
YTM= 0.05/2= 0.025
Years tomaturity= 8*2= 16 semesters
Coupon= (0.08/2)*1,000= $40
To calculate the price of the bond, we need to use the following formula:
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 40*{[1 - (1.025^-16)] / 0.025} + [1,000/(1.025^16)]
Bond Price= 522.2 + 673.62
Bond Price= $1,195.82
Sherry is known for being very task oriented in her approach to manage subordinates. Which at the following statement is noot likely to describe sherry?
a. She tends to work to develop trusting relationships with subordinates.
b. She tends to be very involved in task assignments and defining work schedules.
c. She tends to write standard operating procedures for her employees.
d. She tends to be one-way and top-down in her
Answer:
a. She tends to work to develop trusting relationships with subordinates.
Explanation:
since in the given situation it is mentioned that sherry to be called as the very task oriented person in order to manage the subordinates so as per the given situation the first option is correct as it is not describe her behavior that she develop the relationship with the subordinates in a trust worthy way
So the option a is correct
4. Problems and Applications Q4 For each of the following statements, indicate which argument for restricting trade is being utilized. Statements The Jobs Argument The National-Security Argument The Infant-Industry Argument The Unfair-Competition Argument The Protection-as-a-Bargaining-Chip Argument (A) We should restrict the importation of electric cars until our own electric car industry is mature enough to compete with foreign firms. (B) We should limit the importation of Japanese automobiles unless Japan reduces its restrictions on agricultural imports. (C) We should place a tariff on Chinese-made tires to help prevent domestic tire employees from being laid off. (D) We should subsidize our computer industry because China subsidizes its computer industry.
Answer:
Statements Arguments
A The Infant-Industry Argument
B The Protection-as-a-Bargaining-Chip Argument
C The Jobs Argument
D The Unfair-Competition Argument
Explanation:
The Jobs Argument: Domestic jobs need to be protected for the good of the national economy, according to this argument.
The National-Security Argument: Some products and services are, by their nature, issues reserved under national security. To expose the internal security systems of a nation may have untold consequences.
The Infant-Industry Argument: Nascent industries require domestic protection from foreign competitors if they must grow to competitive levels.
The Unfair-Competition Argument: This is more pronounced in developing countries without the manufacturing facilities to compete fairly with developed economies.
The Protection-as-a Bargaining-Chip Argument is argues that trade restrictions may be imposed to force other countries to reverse or remove trade restrictions.
¿Cuáles son los tramites para que una empresa se vuelva persona jurídica?
Answer: Crea una LLC o Corporación. ...
Registre su nombre comercial. ...
Solicite un número de identificación fiscal federal. ...
Determine si necesita un número de identificación fiscal estatal. ...
Obtenga permisos y licencias comerciales. ...
Proteja su negocio con un seguro. ...
Abra una cuenta bancaria comercial.
Explanation:
with the aid of graphs, illustrate the effect of a change in demand for chicken by restaurants to a chicken farmer
Answer:
Systematic component of demand = (level + trend) X seasonal factor
Explanation:
Now in the given case, we can use the above equation as well as graphs based on historical trends to define the demand of chicken during each season. When the demand is high, chicken prices can lead to an increase with more pressure on chicken farmer to supply more chicken.
Rula has purchased a new car for $15000. She paid $2,000 as a down payment, and she paid the remaining balance by a loan from her hometown bank. Rula will pay off the loan by equal annual installments of $4280. How many years will it take Rula to pay off the loan, given an opportunity cost of 12%?
Answer: 4 years
Explanation:
First find the amount Rula borrowed from her hometown bank:
= Price of car - Down payment
= 15,000 - 2,000
= $13,000
The amount that Rula is to pay is an annuity. The loan is the present value of that annuity.
Present value of annuity = Annuity * Present value interest factor of annuity
13,000 = 4,280 * Present value interest factor of annuity
Present value interest factor of annuity = 13,000 / 4,280
= 3.0373
Use an annuity table to find out the year that 12% as a discount rate intersects with, such that the present value of interest factor of annuity is 3.0373.
That number is:
= 4 years
Automaton, Inc.'s current stock price is $57. Analysts forecast a price of $45 in one year. Automaton's Beta is 1.2. The Risk-Free Rate is 3% and Return of the Market Portfolio is 7%. Assuming Automaton pays a $5 dividend at the end of the year, what is the Holding Period Return?
Answer:
-12.28%
Explanation:
Holding period return is the total return on an investment in the period when the investment is held by an investor.
Holding period return = price appreciation + dividend yield
price appreciation = (price in on year - initial price) / initial price
(45 - 57) / 57 = -0.21053 = -21.05%
dividend yield = dividend / initial price
$5 / 57 = 0.0877 = 8.77
Holding period return = -21.05% + 8.77 = -12.28%
Assume that sales are predicted to be $3,750, the expected contribution margin is $1,500, and a net loss of $250 is anticipated. The break-even point in sales dollars is:_______.
a. $1,750b. $2,500c. $4,000d. $4,250e. $4,375
Answer:
e. $4,375
Explanation:
Calculation to determine what The break-even point in sales dollars is:
Using this formula
Break-even point in sales dollars=Predicted Sales+[Net loss/(Contribution margin/Sales)]
Let plug in the formula
Break-even point in sales dollars=$3,750+[$250/($1,500/$3,750)]
Break-even point in sales dollars=$3,750+($250/.40)
Break-even point in sales dollars=$3,750+$625
Break-even point in sales dollars=$4,375
Therefore The break-even point in sales dollars is:$4,375
For the year ending August 31, Solstice Medical Co. mistakenly omitted adjusting entries for (1) depreciation of $8,400, (2) fees earned that were not billed of $64,400, and (3) accrued wages of $10,600. Indicate the effect of the errors on (a) revenues, (b) expenses, and (c) net income for the year ended August 31.
Answer:
Solstice Medical Co.
For the year ended August 31:
Effects of Omissions on (a) revenues (b) expenses (c) net income
(1) depreciation of $8,400 ($8,400)
(2) fees earned not billed $64,400 64,400
(3) accrued wages of $10,600 (10,600)
Net effect +$64,400 +$19,000 +$45,400
Explanation:
a) Data and Analysis of Omitted Adjusting Entries:
(1) depreciation of $8,400: increase expenses and reduce net income
(2) fees earned that were not billed of $64,400: increase revenue and net income
(3) accrued wages of $10,600: increase expenses and reduce net income
Alfred derives utility from consuming iced tea and lemonade. For the bundle he currently consumes, the marginal utility he receives from iced tea is 16 utils, and the marginal utility he receives from lemonade is 8 utils. Instead of consuming this bundle, Alfred should:______.
a. buy more iced tea and less lemonade.b. buy more lemonade and less iced tea.c. buy more iced tea and lemonade.d. buy less iced tea and lemonade.e. none of these.
Answer:
A
Explanation:
Marginal utility is the additional utility derived from consuming one more unit of a good
the consumption decision is to consume more units of a good that gives the higher utility per good.
Marginal utility per good = marginal utility / price of the good
When marginal utility is positive, it means that increasing consumption by one unit increases total utility
When marginal utility is negative, it means that increasing consumption by one unit decreases total utility
When marginal utility is zero, total utility has reached its maximum and no more units of goods would be consumed
An example of marginal utility. Imagine a traveller arriving from the desert where he hadn't had a drink of water in days .he is offered his first glass of water. the first cup of water he drinks would give him the highest utility. As more and more cups of water is drank, marginal utility decreases. At the point where he is fully satisfied, he stops drinking water and marginal utility becomes zero.
In the first few minutes of your speech to the new product team, you show the members that you feel comfortable with them and that you are confident that the team will be successful.
a. True
b. False
Answer: True
Explanation:
Being in good spirits at the beginning of the project among team members is vital. What is communicated at the beginning plays a vital role of how the project will go. If a project manager begins his address with negative words, threats and accusation, it would rub off on all the team members and might kill corporation but when his first speech is encouraging, energetic and inspiring, they would want to do better.
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 44,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $521,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris’s actual manufacturing overhead cost for the year was $687,120 and its actual total direct labor was 44,500 hours. Required: Compute the company’s plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.)
Answer:
Predetermined manufacturing overhead rate= $13.84 per direct labor hour
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (521,000 / 44,000) + 2
Predetermined manufacturing overhead rate= 11.84 + 2
Predetermined manufacturing overhead rate= $13.84 per direct labor hour
An example of a push strategy is ________. organizing couponing campaigns utilizing newspaper advertising using television advertising employing direct marketing paying a shelf fee
Answer: Using television advertising
Explanation:
Push marketing strategy, refers to the strategy whereby take its products to the consumers in order to increase the exposure of the product.
Push marketing simply means pushing the brand through the use of promotions and paid advertisiment. On the other hand, pull strategy draws customers towards the product.
Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift a. demand, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially sweetened beverages. b. supply, raising the equilibrium price and lowering the equilibrium quantity in the market for artificially sweetened beverages. c. supply, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially sweetened beverages. d. demand, raising both the equilibrium price and quantity in the market for artificially sweetened beverages.
Answer:
b. supply, raising the equilibrium price and lowering the equilibrium quantity in the market for artificially sweetened beverages.
Explanation:
In the case when the government impose the tax of 20% on sweetened beverages so here the price should be increased but at the same time the quantity is decreased as the supply curve shifted to the leftward where the demand curve is not impacted at all due to this things the price increased and the demand is decreased
Therefore the option b is correct
Wieters Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows:
Activity Activity Overhead $ Cost Driver Cost Driver Quantity
Machine setup $200,000 # of setups 800
Inspection 120,000 # of quality tests 400
Materials receiving 252,000 # of purchase orders 1,800
The budgeted data for smartphone case production are as follows.
Direct materials $2.50 per unit
Direct labor $0.54 per unit
Number of setups 92
Number of quality tests 400
Number of purchase orders 50
Production 15,000 units
Required
a. Calculate the activity rate for each cost pool.
b. Calculate the activity-based unit cost of the smartphone case.
Answer:
Wieters Industries
a. Activity Rates:
Machine setup = $250
Inspection = 300
Materials receiving 140
b. The activity-based unit cost of the smartphone case is:
= $13.04
Explanation:
a) Data and Calculations:
Activity Activity Overhead $ Cost Driver Cost Driver Quantity
Machine setup $200,000 # of setups 800
Inspection 120,000 # of quality tests 400
Materials receiving 252,000 # of purchase orders 1,800
Total overhead costs $572,000
Activity Rates:
Machine setup = $250 ($200,000/800)
Inspection = 300 ($120,000/400)
Materials receiving 140 ($252,000/1,800)
Budgeted data for smartphone case production:
Direct materials $2.50 per unit
Direct labor $0.54 per unit
Number of setups 92
Number of quality tests 400
Number of purchase orders 50
Production 15,000 units
Overhead Applied to Smartphone Case:
Number of setups 92 * $250 = $ 23,000
Number of quality tests 400 * $300 = 120,000
Number of purchase orders 50 * $140 = 7,000
Total overhead applied = $150,000
Overhead per unit = $10 ($150,000/15,000)
Unit Cost of Smartphone Case:
Direct materials per unit $2.50
Direct labor per unit $0.54
Overhead per unit $10.00
Total unit cost = $13.04
You are a certified fraud examiner, and a local community group, the Silver Years Senior Squad, has requested that you give a presentation about consumer fraud. They want to hear about examples of recent scams that have happened to people and how they can avoid being scammed. What advice you would give to the Silver Years Senior Squad to help them avoid becoming a victim of a telemarketing fraudster?
Answer:
The answer is below
Explanation:
To avoid becoming a victim of a telemarketing fraudster, here some of the necessary things you should not and eventually do:
1. Usually telemarketing fraudsters require the victim involvement or participation, always say NO when you suspect a fraud
2. Old people are more vulnerable to telemarketing fraud, hence, the elderly ones need to be more careful and watch over if necessary.
3. To guide against telemarketing fraud effectively it is to carry out fast and direct reporting of any telemarketing calls suspected to be fraudulent to the Federal Trade Commission
4. Be alert and understand that fraudsters are very manipulative and focus on greed, fear, excitement, and gullibility.
5. Give them none of your information, including those you think is not sensitive or vital, you might never know how ell they could use that information
