Answer:
Break-even point in units= 100,000 units
Explanation:
Giving the following information:
Your variable costs to produce each bottle is $1.
Your fixed costs are $100,000/year.
How many bottles must you sell at $3/bottle to cover your fixed costs and earn your target profit of $100,000
To calculate the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit
Break-even point in units= (200,000) / (3 - 1)
Break-even point in units= 100,000 units
The number of bottles that must be sold at $3 per bottle to earn a target profit of $100,000 is 200,000 bottles.
Data and Calculations:
Variable cost per bottle = $1
Fixed cost per year = $100,000
Expected sales units in the first year = 300,000 bottles
Selling price per bottle = $3
Target profit = $300,000
Contribution margin per unit = $2 ($3 - $1)
Contribution margin ratio = 67% ($2/$3 x 100)
Sales units to achieve target profit = (Fixed Costs + Profit)/$2
= ($100,000 + $300,000)/$2
= 200,000 bottles
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Explain the 3 primary ingredients of Just in Time, and how it can be used in a transportation company.
Explanation:
Just in time can be understood as a strategic system that fundamentally seeks to achieve continuous improvement of processes by reducing costs and waste.
Its principles are total quality management, respect for people and just in time manufacturing.
Just in time can be understood as a strategic system that fundamentally seeks to achieve continuous improvement of processes by reducing costs and waste.
Its principles are total quality management, respect for people and just in time manufacturing.
In this strategy, the focus is that all activities must be carried out at the exact time, that is, eliminating any waste such as raw material, stock, production, etc., which eliminates costs and reduces failures, increasing all processes organizational changes that guarantee an increase in total quality.
The principle of respect for people is also given by the flexibility that this system gives to employees, by the management of total quality that gives a more dynamic work that guarantees the greatest engagement of employees.
In a transport company, the Just in time system would be effective if it were integrated into all operational areas of the company, involving all work hierarchies.
It would also be essential to have changes in internal policies to ensure that processes are improved in order to eliminate waste, which would require adequate training of employees, the implementation of control technologies, the adoption of a more effective and faster value chain , etc., in order to eliminate waste and increase total quality.
Consider a university that purchases replacement chairs for its classrooms. The purchasing manager knows that the annual demand for replacement chairs is 500. The pricing schedule is as follows: Use the following Excel solution to this quantity discount problem with constant carrying cost. Carrying cost = $ 15 Ordering cost = $ 200 Annual Demand = 500
Quantity Price Q Discount Q Total Cost
100 $130 115.47 115.47 $ 66,732.05
200 $122 115.47 200.00 $ 63,000.00
500 $120 115.47 500.00 $ 63,950.00
What is the inventory ordering cost using the economic order quantity?
A. $1,000
B. $866
C. $500
D. $200
Answer:
b. $866
Explanation:
Annual demand from the question = D = $500
the ordering cost = S = $200
then the cost of carrying H = $15
we have to calculate the economic order quantity
= sqr(2*D*S)/H
= sqr(2 x 500 x 200)/25
= sqr(13333.3333)
this equals 115.469
which is approximately 115.5
next we have to calculate inventory ordering cost
= (D * S)/EOQ
= 200 *500/115.5
= 865.5
When approximated becomes $866
The inventory ordering cost using the economic order quantity is: B. $866.
First step is to calculate the Economic order quantity
Economic order quantity =√(2×D×S)/H
Where:
D=Annual demand=$500
S=Ordering cost=$200
H=Holding cost =$15
Let plug in the formula
Economic order quantity =(2 x 500 x 200)/15
Economic order quantity =√200,000/15
Economic order quantity =√13333.3333
Economic order quantity =115.46
Economic order quantity = 115.5 (Approximately)
Second step is to calculate the inventory ordering cost using this formula
Inventory ordering cost= (Annual demand× Ordering cost )/Economic order quantity
Let plug in the formula
Inventory ordering cost= (200×500)/115.5
Inventory ordering cost=100,000/115.5
Inventory ordering cost=$865.8
Inventory ordering cost=$866 (Approximately)
Inconclusion the inventory ordering cost using the economic order quantity is: B. $866.
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TB MC Qu. 9-371 Irving Corporation makes a product with ... Irving Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct labor 0.2 hours $ 15.00 per hour $ 3.00 Variable overhead 0.2 hours $ 5.10 per hour $ 1.02 In November the company's budgeted production was 5,400 units, but the actual production was 5,200 units. The company used 1,660 direct labor-hours to produce this output. The actual variable overhead cost was $7,802. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for November is:
Answer:
Variable manufacturing overhead rate variance= $664 favorable
Explanation:
Giving the following information:
Variable overhead 0.2 hours $ 5.10 per hour
The company used 1,660 direct labor-hours to produce this output. The actual variable overhead cost was $7,802.
To calculate the variable overhead rate variance, we need to use the following formula:
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Actual rate= 7,802/1,660= $4.7
Variable manufacturing overhead rate variance= (5.1 - 4.7)*1,660
Variable manufacturing overhead rate variance= $664 favorable
February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of $112,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2018. Costs incurred during this period were: Item Amount Demolition dilapidated building $2,000 Architect Fees $11,250 Legal Fees - for title search $1,450 Interest During Active Construction Period $5,025 Real estate transfer tax $975 Construction Costs $605,000 Using this information, how much should be recorded as the cost of the land?
Answer:
The cost of the land should be recorded as $108,350
Explanation:
Land cost = $112,000
Demolition dilapidated building = $2,200
Legal fees - title search = $1,450
Cost of land = Land cost - Demolition dilapidated building - Legal fees - title search
Cost of land = $112,000 - $2,200 - $1,450
Cost of land = $108,350
Gretta's portfolio consists of $700,000 invested in a stock that has a beta of 1.2 and $300,000 invested in a stock that has a beta of 0.8. The risk-free rate is 6% and the market risk premium is 5%. Which of the following statements is CORRECT?
a. The required return on the market is 10%.
b. The portfolio's required return is less than 11%.
c. If the risk-free rate remains unchanged but the market risk premium increases by 2%, Gretta's portfolio's required return will increase by more than 2%.
d. If the market risk premium remains unchanged but expected inflation increases by 2%, Gretta's portfolio's required return will increase by more than 2%.
e. If the stock market is efficient, Gretta's portfolio's expected return should equal.
Answer: c. If the risk-free rate remains unchanged but the market risk premium increases by 2%, Gretta's portfolio's required return will increase by more than 2%.
Explanation:
To prove the above option, the Capital Asset Pricing Model can be used.
Required Return = Risk free rate + portfolio beta(market premium)
Portfolio Beta
This the weighted average of the individual betas.
Total portfolio value = 700,000 + 300,000 = $1,000,000
= ( 1.2 * 700,000/1,000,000) + ( 0.8 * 300,000/1,000,000)
= 0.84 + 0.24
= 1.08
Required return = 6% + 1.08 ( 5%)
= 6% + 5.4%
= 11.4%
Assuming risk-free rate remains unchanged but the market risk premium increases by 2%.
Required return = 6% + 1.08 ( 5% + 2%)
= 6% + 7.56%
= 13.56%
The change in required return
= (13.56% - 11.4%)/11.4%
= 18.9%
Proving that if the risk-free rate remains unchanged but the market risk premium increases by 2%, Gretta's portfolio's required return will increase by more than 2%.
A newer form of performance appraisal is called the ___________ because it encourages feedback from all around the employee including those who report to him/her.
Answer:
360-degree review
Explanation:
A 360-degree review is a process in which a company gathers information about the performance and behavior of an employee from different sources that can be coworkers, supervisors and subordinates but also from people outside the company that have to interact with the person like suppliers to evaluate the employee and help him/her to develop skills. According to this, the answer is that a newer form of performance appraisal is called the 360-degree review because it encourages feedback from all around the employee including those who report to him/her as in this form of evaluation the company obtains feedback about the employee's performance from different sources.
Martin Shkreli, former CEO of pharmaceutical company Retrophin,, has many traits of a leader. He is very intelligent, brash, extroverted, and driven to succeed. But he lacks the key trait to keep the confidence of others, which eventually led to a fraud conviction. He lacks
Answer:
Integrity.
Explanation:
In this scenario, Martin Shkreli, former CEO of pharmaceutical company Retrophin, has many traits of a leader. He is very intelligent, brash, extroverted, and driven to succeed. But he lacks the key trait to keep the confidence of others, which eventually led to a fraud conviction. Hence, he lacks integrity.
Integrity can be defined as an attribute which involves being honest, sincere, upright, adherence to strong moral and ethical principles or morally based values.
In this context, Martin Shkreli was eventually convicted for fraud because he lacked the quality of being trustworthy, truthful, honest and keeping the confidence of others.
The term used to describe the degree to which tasks in an organization are subdivided into separate jobs is called ________.
Answer:
work specialization
Explanation:
The term being described is known as work specialization. This term, also known as division of labor, is mainly used by companies in order to divide a large job position into smaller, single tasks that can be completed by one individual. The individual that is given such a task is trained thoroughly in order for them to become a specialist in that task and output more precise workloads.
After the initial offering, the bonds are trading in the secondary market at 105, while the stock is trading at $10. Which statements are TRUE?
Answer:
B I and IV
Explanation:
Each bond could be transformed into common stock at $10.50 par value. So the bond should be equivalent to the 95 shares that comes from
= $1,000 ÷ $10.50 per share
= 95 shares
Currently price of the bond is $1,050
Now each share price is
= $1,050 ÷ 95 shares
= $11.05
As the common stock is traded at $10 that represents the stock is less than parity and therefore there is no means to transform the shares
hence, B option is correct
A manager is attempting to assess the probability of a recession ending in the next six months and its impact on expected profitability. The manager believes there is a 75 percent chance the recession will end in six months and profits will return to $400 million. However, there is a 25 percent chance the recession will not end in six months, resulting in a $5 million loss. The expected profits over the next six months are:
Answer:
Expected profit = $298.75 million
Explanation:
To calculate the expected return or expected profits, we will simply multiply the probability of each event by the return expected in that event and take a sum the answers. Thus, the expected profit can be calculated as follows,
Expected profit = Probability of recession ending * Profit if recession ends + Probability of recession not ending * profit or loss if recession does not end
Expected profit = 0.75 * 400 + 0.25 * -5
Expected profit = $298.75 million
Two investment advisors are comparing performance. Advisor A averaged a 20% return with a portfolio beta of 1.5 and Advisor B averaged a 15% return with a portfolio beta of 1.2. If the T-bill rate was 5% and the market return during the period was 13%, which advisor was the better stock picker?
Answer:
Advisor A
Explanation:
t bill rate = 0.05
market rate = 0.13
the beta of the market is always 1
the rate of return= 0.05 + (0.13 - 0.05) x 1
= 0.13
which is 13%
this is for advisor A.
with a return of 20% and 1.5 beta
0.05 + ( 0.20 - 0.05) x 1.5
= 27.5% for advisor b
when the return is 15% and beta is 1.2
0.05 + (0.15 - 0.05) x 1.2
= 17%
Therefore advisor a is better
Consider the economies of Gobbledigook and Hermes, both of which produce agricultural products using only land and labor. The following tables show the supply of land, population size, and real GDP for these two economies from 2015 to 2018.
Calculate real GDP per capita for the two economies, and complete the last column of the following two tables.
Gobbledigook
Year Land Population Real GDP Real GDP per Capita
(Acres)
2011 20,000 500 $3,500
2012 20,000 1,000 $8,000
2013 20,000 1,500 $13,500
2014 20,000 2,000 $20,000
Blahnik
Year Land Population Real GDP Real GDP per Capitl
(Acres)
2011 20,000 1,000 $11,000
2012 20,000 2,000 $20,000
2013 20,000 3,000 $27,000
2014 20,000 4,000 $32,000
Answer:
Kindly check explanation and attached picture
Explanation:
Real GDP per capita = (Real GDP / Population)
Gobbledigook Real GDP per capita:
2011: ($3500 / 500) = $7
2012: ($8000 / 1000) = $8
2013: ($13,500 / 1,500) = $9
2014: ($20,000 / 2000) = $10
BLAHNIK Real GDP per Capita:
2011: ($11,000 / 1000) = $11
2012: ($20,000/2000) = $10
2013: ($27,000 / 3000) = $9
2014: ($32,000 / 4000) = $8
An investor has a 25% chance of making $1000 if the stock market is good, and a 50% chance of making $600 if the market is average. The investor expects to lose $800 if the market is bad. The expected monetary value is:
Answer: $350
Explanation:
The expected monetary value is the weighted average of the outcomes.
25% - Stock Market is good
50% - Stock Market is average
25% - Stock market is bad
Expected Monetary Value = ( 0.25 * 1,000) + (0.5* 600) + ( 0.25 * -800)
= 250 + 300 - 200
= $350
Domingo Corporation uses the weighted...
Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,300 units. The costs and percentage completion of these units in beginning inventory were:
Cost Percent Complete
Materials costs $7,400 50%
Conversion costs $3,600 20%
A total of 8,700 units were started and 8,000 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Cost
Materials costs $160,600
Conversion costs $122,300
The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs. How many units are in ending work in process inventory in the first processing department at the end of the month?
a. 700.
b. 1,700.
c. 6.400.
d. 2,700.
Answer:
3,000 units
Explanation:
Calculation for How many units are in ending work in process inventory
Using this formula
Ending work in process units =Beginning work in process units + Units started into production - Transferred to the second processing department units
Let plug in the formula
Ending work in process units= 2,300 units + 8,700 units - 8,000 units
Ending work in process units= 3,000 units
Therefore 3,000 units are in the ending work in process inventory in the first processing department at the end of the month.
Group-oriented negotiators are concerned about their own interests above all else. Is this statement true or false?
Answer: False
Explanation:
Negotiation is a dialogue taht takes place between two to more individuals so that a common stand can be reached on a subject.
Group-oriented negotiators are concerned about the interest of their teams or groups and not their own interests. Therefore, the above question is wrong.
Suppose you observe the following situation: Security Beta Expected Return A 1.16 .1137 B .92 .0984 Assume these securities are correctly priced. Based on the CAPM, what is the return on the market
Answer: 10.35%
Explanation:
The Capital Asset Pricing Model is used to calculate the expected return of a security with the expression
Expected return = Risk free rate + Beta ( Market return - risk free rate)
( Market return - risk free rate) is also known as the market premium and can be calculated by;
= [tex]\frac{Expected return on A - Expected return on B}{Beta for A - Beta for B}[/tex]
= [tex]\frac{0.1137 - 0.0934}{1.16 - 0.92}[/tex]
= 0.0153/0.24
= 6.375%
= 6.38%
Expected return A = Risk free rate + Beta A ( Market return - risk free rate)
0.1137 = Risk free rate + 1.16 (6.38%)
Risk free rate = 0.1137 - 1.16(6.38%)
Risk free rate = 3.97%
Market Expected return = Market Risk Premium + risk free rate
= 6.38% + 3.97%
= 10.35%
conduct an internet search to locate a copy of the sarbanes oxley act of 2002. read and sumarize the requirements of section 302 of the act. Discuss how those provisions would or would not have deterred the actions of scott sullivan, cfo at worldcom
Answer:
Sarbanes Oxley act of 2002 is law of United States passed on 30th July 2002. This act helps to protect investor from fraudulent financial reporting by organizations. The act requires all companies to include report on their internal controls in the Financial reports.
Explanation:
The section 302 of the act directs the Securities and Exchange Commission to adopt rules to adopt financial officer who certify company's annual, interim and quarterly financial reports. The main purpose is to minimize any chance of intentional frauds or deceive investors. The officers review financial reports of the company and certify that these reports does not cover any significant wrong statement, Financial statements of the company are fairly presented based on the knowledge of the officer. He is also responsible to review the report of internal controls of the company to ensure that there is no weakness in controls which can lead to frauds in the organization.
NIKE, Inc., is the best-known sports shoe, apparel, and equipment company in the world because of its association with athletes such as LeBron James, Roger Federer, and Madison Keys. Some of the items included in its recent statement of cash flows presented using the indirect method are listed here. Indicate whether each item is disclosed in the operating activities (O), investing activities (I), or financing activities (F) section of the statement or use (NA) if the item does not appear on the statement.1. Additions to long-term debt.2. Depreciation3. Additions to equipment.4. Increase (decrease) in notes payable. (The amount is owed to financial institutions.)5. (Increase) decrease in other current assets6. Cash received from disposal of equipment.7. Reductions in long-term debt.8. Issuance of stock.9. (Increase) decrease in inventory.10. Net income
Answer and Explanation:
The statement of cash flow involves 3 kinds of activities mentioned below:
1. Operating activities: Many transactions are based that affect the working capital following net income. It would increase the growth in current assets and a decrease in current liabilities, whereas adding the decrease in current properties and an increase in current liabilities.
This should mitigate any work capital shifts. Furthermore, the cost of depreciation is attributed to the net income and the loss on the sale of assets is attributed while the benefit on the sale of assets is deducted
2. Investing: it monitors activities involving the acquisition and selling of long-term assets. The purchase is cash outflow while the selling is cash inflow
3. Financing activities: it monitors activities that impact on the shareholders' long-term debt and equity balance. Share issue is cash inflow whereas cash outflows are redemption and dividend.
Therefore based on the above explanation, the classification is as follows
1 Financing Activity
2. Operating activity
3 Investing activity
4 Financing Activity
5 Operating activity
6 Investing activity
7 Financing Activity
8 Financing Activity
9 Operating activity
10 Operating activity
The date the directors vote to pay a dividend is called the: Multiple Choice Date of declaration. Date of record.
Answer: Date of declaration
Explanation:
The declaration date is also known as announcement date. The date of declaration is the date when the board of directors announces when the next dividend will be paid.
It should be noted that the statement consist of the size of the dividend, date of the previous dividend and also the next dividend payment date.
Consider the following scenario analysis:
Rate of Return
Scenario Probability Stocks Bonds
Recession 0.20 -5 % 14 %
Normal economy 0.60 15 8
Boom 0.20 25 4
Assume a portfolio with weights of .60 in stocks and .40 in bonds.
a. What is the rate of return on the portfolio in each scenario? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)
b. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Answer:
a. Rate of Return on the portfolio in each scenario:
Scenario Analysis:
Rate of Return
Scenario Probability Stocks Bonds Return of Return
Recession 0.20 -5 % 14 %
= 0.20((-5% x 60%) + (14% x 40%)) = 0.0052 = 0.5%
Normal economy 0.60 15 8
= 0.60((15% x 60%) + (8% x 40%)) = 0.0732 = 7.3%
Boom 0.20 25 4
= 0.20((25% x 60%) + (4% x 40%) = 0.0332 = 3.3%
Weights 1.00 0.60 0.40
b. Expected rate of return =
Recession = 0.0052
Normal economy = 0.0732
Boom = 0.0332
Total expected returns = 0.1116 = 11.2%
Mean = 3.72% (11.2%/3)
Variance = 0.001168
Standard Deviation = 0.034 = 0.03
Explanation:
a) Data:
Scenario Analysis:
Rate of Return
Scenario Probability Stocks Bonds
Recession 0.20 -5 % 14 %
Normal economy 0.60 15 8
Boom 0.20 25 4
Weights 1.00 0.60 0.40
b) The rate of return for each portfolio is derived by weighing the securities, adding the resultant figures and applying the scenario probability. The expected rate of return is the addition of the returns of all the portfolio under the three scenarios. The step for obtaining the standard deviation is to calculate the mean, the variance, and getting the square root of the variance.
7. Ms. House utilizes a strategy of "Check 1 – 2- 3". Why does she do this? How do you think this was initially taught?
Explanation:
To get her student's attention. Remember, the check 1 2 3 strategy allows teachers to get an inside into the students understanding.
However, in this scenario, Ms. House uses the strategy to lower her student's voices, so as to get their attention. She likely started using this strategy at the start of the school year and kept doing it.
Mangum Co. is a large company that segments its business into cost and profit centers. The Cost center for the manufacture of Product M2T incurred the following costs in October:
Direct Labor: $25/unit
Direct Materials: $80/unit
Variable Overhead: $15/unit
Traceable Fixed Costs: $62,000
Common Fixed Costs: $100,000
Sales were 2,000 units in October. Each unit sells for $210. The M2T Department is being evaluated on overall profitability. In September, the department margin was $100,000. By how much did the department margin increase or decrease in October?
a. $100,000 decrease
b. $118,000 increase
c. $18,000 increase
d. $82,000 decrease
Answer: c. $18,000 increase
Explanation:
Department margin was $100,000 in September.
October Margin = Sales - Variable Costs - Traceable Fixed Costs
= (2,000 *( 210 - 25 - 80 - 15) ) - 62,000
= (2,000 * 90) - 62,000
= $118,000
= October Margin - September Margin
= 118,000 - 100,000
= $18,000 increase
Company FM2 must pay 100,000 in 4 years. In order to fully immunize from changes in interest rate, the company invests in a 3 year zero coupon bond that matures for 45,000 and a 5 year zero coupon bond that matures for X. The actuary for Company FM2 determined that their portfolio fully immunized their ability to meet their obligations at the current interest rate i. Calculate i.
Answer:
5. 11.1%
Explanation:
the options for this question are missing:
5%7.8%10%10.5%11.1%I prepared the following equation:
$100,000 = $45,000(1 + i)³ + x(1 + i)⁵
There is something that we must remember about zero coupon bonds, and that is that they are sold in thousands. This equation is complex, but there is an easier way to solve it. We can plug in the options to determine which % will result in a possible answer.
The answer is 11.1%, since the other options resulted in numbers which are not even close to a thousand.
$100,000 = $45,000(1.111)³ + x(1.111)⁵
$100,000 = $61,709.88 + 1.2763x
$38,290.12 = 1.2763x
x = $38,290.12 / 1.2763 = $30,000
A share of stock is now selling for $120. It will pay a dividend of $10 per share at the end of the year. Its beta is 1. What must investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 6% and the expected rate of return on the market is 18%. (Round your answer to 2 decimal places.)
Answer:
P1 = 131.6566627 rounded off to $131.66
Explanation:
To calculate the price of the stock at the end of the year or P1, we first need to determine the required rate of return on the stock and the growth rate in dividends.
The required rate of return can be found using the CAPM equation. The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free rate rM is the return on market
r = 0.06 + 1 * (0.18 - 0.06)
r = 0.18 or 18%
Now we assume that the stock is a constant growth stock which means that the growth in dividends is expected to be constant throughout. The price of such a stock is found using the constant growth model of DDM. The formula for price today under the constant growth model is,
P0 = D1 / (r - g)
Where,
P0 is price today D1 is expected dividend for the next period g is the growth rate in dividends
Plugging in the available variables, g is,
120 = 10 / (0.18 - g)
120* (0.18 - g) = 10
21.6 - 120g = 10
g = (10 - 21.6) / -120
g = 0.096667 or 9.6667% rounded off to 9.67%
So to calculate the price at the end of the year or P1, we will use D2.
P1 = 10 * (1+0.0967) / (0.18 - 0.0967)
P1 = 131.6566627 rounded off to $131.66
When Marine Midland Bank sent market researchers with surveys door-to-door in the neighborhoods of their branch banks to ask people with savings accounts why they did not also have checking accounts and credit cards with Marine Midland, they were gathering __________ data.
Answer:
questionnaire
Explanation:
In the scenario being described, the researchers were gathering questionnaire data. A questionnaire is a research instrument that consists of a set of questions that are asked to the individual with hopes of collecting that respondent's information regarding the subject. Which in this scenario, the subject in question is why the individual does not have checking accounts and credit cards with the company. These answers are usually used by the company in order to better their services and provide a better customer experience.
Eliminating the queue of work dramatically quickens the time it takes apart to flow through the system. What are the disadvantages of removing those queues?
Answer:
quality may sufferexcess output mayExplanation:
Note that quality does not necessarily come quickly, and so even though eliminating the queue of work dramatically quickens the time it takes apart to flow through the system, it may result in excess output and poor quality.
Take for a stadium that has no entrance way (or doors) that is hosting an event, evidently it is less likely there will be a queue, as everyone would be rushing in quickly, but with possible consequences of overpopulation etc.
g Mason Company paid its annual property taxes of $240,000 on February 15, 20X9. Mason also anticipates that its annual repairs expense for 20X9 will be $1,200,000. This amount is usually incurred and paid in July and August when operations are shut down so that machinery and equipment can be repaired. What amount should Mason deduct for property taxes and repairs in each quarter for 20X9?
Answer:
$360,000
Explanation:
The total cost would be estimated as the expense anticipated plus the property taxes paid previously.
Now
Total Cost = $240,000 Property Taxes paid + $1,200,000 Property repairs anticipated
= $1,440,000
Now we will distribute the annual cost over the four quarters which mean we will divide the total annual cost by 4.
Quarterly Expenses = $1,440,000 / 4 = $360,000
At the beginning of June, Bezco Toy Company budgeted 5,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $50,000 Direct labor 36,000 Total $86,000 The standard materials price is $4.00 per pound. The standard direct labor rate is $18.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $49,600 Actual direct labor 34,020 Total $83,620There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 4,850 units during June.Required:Determine the direct materials quantity and direct labor time variances.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard quantity:
Direct materials (pounds)= 50,000/4= 12,500 pounds
Direct materials (pounds)= 12,500/5,000= 2.5 pounds per unit
Direct labor (hours)= 36,000/18= 2,000 hours
Direct labor (hours)= 2,000/5,000= 0.4 hours
Actual quantity:
Actual direct materials= (49,600/4)= 9,920 pounds
Actual direct labor= 34,020/18= 1,890 hours
Production= 4,850
To calculate the direct labor quantity variance, we need to use the following formula:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 2.5*4,850= 12,125
Direct material quantity variance= (12,125 - 9,920)*4
Direct material quantity variance= $8,820 favorable
To calculate the direct labor time variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Standard quantity= 0.4*4,850= 1,940
Direct labor time (efficiency) variance= (1,940 - 1,890)*18
Direct labor time (efficiency) variance= $900 favorable
The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 2200 units, the actual direct labor cost was $65600 for 4100 direct labor hours worked, the total direct labor variance is
Answer:
400 favorable
Explanation:
The computation of total direct labor variance is presented below:-
Total direct labor variance = (Standard rate - Standard hours) × (Actual rate - Actual hours)
= ($15 × (2 × 2,200)) - $65,600
= ($15 × 4,400) - $65,600
= $66,000 - $65,600
= 400 favorable
Therefore for determining the total direct labor variance we simply applied the above formula.
Self minus Defense Schools, Inc. is authorized to issue 200,000 shares of $2 par common stock. The company issued 73,000 shares at $ 5 per share. When the market price of common stock was $ 7 per share, Self minus Defense Schools declared and distributed a 14% stock dividend. Later, Self minus Defense Schools declared and paid a $ 0.70 per share cash dividend.
Required:
a. Journalize the declaration and the distribution of the stock dividend.
b. Journalize the declaration and the payment of the cash dividend.
Answer: Please see answer in explanation column
Explanation:
Number of outstanding shares =73,000
Stock Dividend declared % 14%
Market value per share $7
a) journal entry to record the declaration of stock dividend
Account Debit Credit
Stock dividend $71,540
Commo9n stock divo9dend redistributable $20,440
Paid in capital in excess of par
($71,540 - $20,440) $51,100
Calculations
Stock dividend = 73,000 x 14% x $7=$71,540
Common stock dividend redistributable =73,000 X 14% X $2=$20,440
b) journal entry to record the distribution of stock dividend
Account Debit Credit
Common stock dividend redistributable $20,440
Common stock $20,440
Calculation= Common stock dividend redistributable =73,000 X 14% X $2=$20,440
c) journal entry to record the declaration of cash dividend
Account Debit Credit
Cash dividend $58,254
Dividend payable - common stock $58,254
Calculations
Cash dividend= Numberof shares outstanding×Cash dividend per share
=[73, 000 shares+(73,000 shares×14%)]×$0.70 each
=[73,000 shares+ 10,220 shares]×$0.70 each
=83,220 shares×$0.70 each
= $58,254
d)journal entry to record the payment of cash dividend
Account Debit Credit
Dividend payable - common stock $58,254
Cash dividend $58,254
