Business

Extreme Builders constructs houses. The standard labor rate is $25 per hour and the standard number of hours is 15,000 hours per home. During the year, it constructed 12 homes using 18,000 labor hours per home and a rate of $28 per hour. Calculate the Extreme Builders' labor rate variance. a.$648,000 F b.$540,000 F c.$648,000 U d.$540,000 U
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Farrugia Corporation produces two intermediate products, A and B, from a common input. Intermediate product A can be further processed into Product X. Intermediate product B can be further processed into Product Y. The common input is purchased in batches that cost $89 each and the cost of processing a batch to produce intermediate products A and B is $36. Intermediate product A can be sold as is for $53 or processed further for $33 to make Product X that is sold for $79. Intermediate product B can be sold as is for $113 or processed further for $66 to make Product Y that is sold for $158.Required: A. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of the common input into the end products X and Y? B. Should each of the intermediate products, A and B, be sold as is or processed further into an end product?
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which of the following functions of money would owning a house in a stable market be classified under?A. medium of exchange B. imports and exportsC. impact valueD. storing value
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Jane earned a lot of money from her money market funds even though the economy wasstruggling. Her financial adviser made the decisions of where to invest her money.internalexternal
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Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 4,600 Variable costs per unit: Direct materials $ 91 Direct labor $ 85 Variable manufacturing overhead $ 7 Variable selling and administrative expense $ 10 Fixed costs: Fixed manufacturing overhead $ 161,000 Fixed selling and administrative expense $ 326,600 There were no beginning or ending inventories. The absorption costing unit product cost was:
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When we purchase certificates of deposit or bonds, we forgo ________ in exchange for interest.A) Liquidity B) Purchasing PowerC) Tax Payments
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Which one of the following is NOT part of the estimated net investment (NINV) for a capital budgeting project? The estimated salvage value of the new assets at the end of their 10-year expected economic life. The immediate increase in net working capital required by the project. The after-tax salvage value of assets to be replaced by the project. The cost of new assets required by the project
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Assume that Parker Company will receive SF200,000 in 360 days. Assume the following interest rates: the 360-day borrowing rate in U.S. is 7% while the 360-day borrowing rate in Switzerland is 5%. The 360-day deposit rate in U.S. is 5% while the 360-day deposit rate in Switzerland is 4%. Assume the forward rate of the Swiss franc is $0.50 and the spot rate of the Swiss franc is $0.48. If Parker Company uses a money market hedge, it will receive ____ in 360 days.
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Crowl Corporation is investigating automating a process by purchasing a machine for $793,800 that would have a 9-year useful life and no salvage value. By automating the process, the company would save $133,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $21,200. The annual depreciation on the new machine would be $88,200. The simple rate of return on the investment is closest to a. 5.80% b. 11.12% c. 16.72% d. 5.12%
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For the next ten questions, use the following information: Stlyez Corp. has a monthly demand of 2,000 units for a product. The product is used at a constant rate over the 365 days. The annual holding cost for the product is estimated to be $4.00 per unit and the cost of placing each order is $150.00. Current order quantity (lot size) is 1000 units. What is the annual holding cost for Stlyez Corp. for their current lot size of 1000 units?
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Fresher Foods, Inc., orally agreed to purchase one thousand bushels of corn for $1.25 per bushel from Dale Vernon, a farmer. Fresher Foods paid $125 down and agreed to pay the remainder of the purchase price on delivery, which was scheduled for one week later. When Fresher Foods tendered the balance of $1,125 on the scheduled day of delivery and requested the corn, Vernon refused to deliver it. Fresher Foods sued Vernon for damages, claiming that Vernon had breached their oral contract. Can Fresher Foods recover? If so, to what extent?
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An investment, which has an expected return of 15%, is expected to make annual cash flows forever. The first annual cash flow is expected today and all subsequent annual cash flows are expected to grow at a constant rate of 5% per year. The cash flow expected today is expected to be $20000. What is the present value (as of today) of the cash flow that is expected to be made in 9 years from today?
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Imagine that your goal is to retire 34 years from today with \$1,000,000$1,000,000 in savings. Assuming that you currently (i.e., today) have \$5,000$5,000 in savings, what rate of return must you earn on that savings to hit your goal? (Hint: Solve your future value formula for the discount rate, RR) *Make sure to input all percentage answers as numeric values without symbols, and use four decimal places of precision. For example, if the answer is 6%, then enter 0.0600.
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Under its executive stock option plan, B Corporation granted options on January 1, 2021, that permit executives to purchase 24 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures were anticipated; however, unexpected turnover during 2022 caused the forfeiture of 5% of the stock options. Ignoring taxes, what is the effect on earnings in 2022? (Round your answer to the nearest dollar amount.)
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Yogi expects to produce 1 comma 700 units in January and 2 comma 180 units in February . The company budgets 3 pounds per unit of direct materials at a cost of $ 15 per pound. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 5 comma 200 pounds. Yogi desires the ending balance in Raw Materials Inventory to be 60 % of the next month's direct materials needed for production. Desired ending balance for February is 4 comma 300 pounds. Prepare Yogi 's direct materials budget for January and February .
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A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $12,000 indicates that Dept. Y had a direct expense of $1,300 for deliveries and Dept. Z had no direct expense. The indirect expenses are $10,700. The analysis also indicates that 60% of regular delivery requests originate in Dept. Y and 40% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are: Multiple Choice $7,330; $6,000. $7,330; $4,670. $7,720; $4,280. $7,200; $4,800. $6,000; $6,000.
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In what kind of situation would a silent partner be better than a partner who is very active in the business?
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Public policy toward monopolies Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. Which of the following policy options might most effectively enable the government to achieve its objectives in this situation? A. Do nothing at all. B. Use antitrust laws to increase competition. C. Turn the company into a public enterprise. D. Regulate the firm's pricing behavior.
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company is considering establishing a new machine to automate a packing process. The machine will save $ 50,000 in labor annually. The machine can be purchased for $ 250,000 today and will be used for 10 years. It has a salvage value of $5,000 at the end of its useful life. The new machine will require an annual maintenance cost of $ 11,000. The company has a minimum rate of return of 10%. What is the Net present worth and should they buy the machine
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Suppose that initially, the economy is in long-run macroeconomic equilibrium at point A. If there is increased pessimism about the future of the economy, the AD curve will shift from . The new short-run macroeconomic equilibrium occurs at point A point B point C . Long-run adjustment will shift the SRAS curve from SRAS 0 to SRAS 1 SRAS 1 to SRAS 0 as workers adjust to lower-than-expected prices. The new long-run macroeconomic equilibrium occurs at point A point B point C .
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Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $52,000 to produce 2,325 units that can be sold now for $81,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $265 per unit. If Holmes processes further, the units can be sold for $410 each. Compute the incremental income if Holmes processes further.
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Freeman, Inc., reported net income of $40,000 for 20A. The income tax return excluded a revenue item of $3,000 (reported on the income statement) because under the tax laws the $3,000 would not be reported for tax purposes until 20B. Assuming a 30% income tax rate, this situation would cause a 20A deferred tax amount of A) $3,000 (debit). B) $3,000 (credit). C) $ 900 (debit). D) $ 900 (credit).
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Fallow Corporation has two separate profit centers. The following information is available for the most recent year: West Division East Division Sales (net) $ 400,000 $ 550,000 Salary expense 46,000 60,000 Cost of goods sold 140,000 255,000 The West Division occupies 10,000 square feet in the plant. The East Division occupies 6,000 square feet. Rent, which was $ 80,000 for the year, is an indirect expense and is allocated based on square footage. Compute operating income for the West Division.
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Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.Current liabilities $ 197 Income before interest and taxes $ 11610% Bonds, long-term 370Interest expense 37Total liabilities 567Income before tax 79Shareholders' equity Income tax 22Capital stock 210 Net income $ 57Retained earnings 291Total shareholders' equity 501Total liabilities and equity $1,068HHF's times interest earned ratio is (Round your answer to two decimal places.):a. 10.00.b. 3.14.c. 1.54.d. 2.14.Current liabilities $ 180 Income before interest and taxes $ 11810% Bonds, long-term 360Interest expense 36Total liabilities 540Income before tax 82Shareholders' equity Income tax 20Capital stock 201 Net income $ 62Retained earnings 283Total shareholders' equity 484Total liabilities and equity $1,024HHF's debt to equity ratio is:_____________. (Round your answer to two decimal places.):a. 0.74.b. 0.56.c. 1.12.d. 1.90.
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