Answer:
PED = -0.67 or |0.67| in absolute terms, price inelastic
Explanation:
price elasticity of demand = percentage change in quantity demanded / percentage change in price
percentage change in quantity demanded = (110 - 90) / 90 = 22.22%
percentage change in price = ($0.80 - $1.20) / $1.20 = -33.33%
PED = 22.22% / -33.33% = -0.67 or |0.67| in absolute terms, price inelastic
Membership in the Cape Fear Health Club has been recorded for the past nine years. Management wants to determine the trend of membership in order to project future space needs. This estimate would help the club determine whether a future expansion will be needed. Given the following time series data, develop a regression equation relating memberships to years. Based on your regression equation, what is your forecast for 2020 memberships? Memberships are in hundreds.
Year > 2011 2012 2013 2014 2015 2016 2017 2018 2019
#'s > 11 13 15 17 16 18 20 19 23
a. 22.b. 24.6.c. 23.3.d. 11.e. 25.9.
Answer:
c). 23.3
Explanation:
Period Demand X Y XY [tex]$X^2$[/tex]
1 11 1 11 11 1
2 13 2 13 26 4
3 15 3 15 45 9
4 17 4 17 68 16
5 16 5 16 80 25
6 18 6 18 108 36
7 20 7 20 140 49
8 19 8 19 152 64
9 23 9 23 207 81
∑ 45 152 837 285
Intercept[tex]$(B_0) = \Sigma Y \times \Sigma X^2 - \Sigma X \times \frac{\Sigma XY}{(N\times \Sigma X^2 - \Sigma X^2)} $[/tex]
Intercept [tex]$= (152\times 285)-\frac{45 \times 837}{(9 \times 285)-45^2}$[/tex]
= 10.47
Slope [tex]$(B_1)= ((N\times \Sigma XY) - (\Sigma X \times \Sigma Y)-(N \times \SIgma X^2 - \Sigma X^2)$[/tex]
Slope [tex]$=((9\times837)-\frac{(45 \times 152)}{(9 \times 285)-45^2} $[/tex]
= 1.28
Therefore, the equation is
Y = intercept + slope(X)
[tex]$Y=10.47 + (1.25 \times X)$[/tex]
For [tex]$X=10$[/tex] forecast [tex]$= 10.47 + (1.28 \times 10)$[/tex]
= 23.27 or 23.3
Swifty Company showed the following balances at the end of its first year: Cash $3930 Prepaid insurance 6910 Accounts receivable 4990 Accounts payable 3960 Notes payable 5930 Owner’s Capital 2090 Owner’s Drawings 960 Revenues 32100 Expenses 24800 What did Swifty Company show as total credits on its trial balance? a. $44080 b. $49070 c. $45040 d. $9390
Answer:
$44,080
Explanation:
The total credit for swifty company can be calculated as follows
Account payable + notes payable + common stock + revenue
= 3960 + 5930 + 2090 + 32100
= 44,080
Hence the total credits is $44,080
Tullius Corporation has received a request for a special order of 8,600 units of product C64 for $45.50 each. The normal selling price of this product is $50.60 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows:
Direct materials $ 16.30
Direct labor 5.60
Variable manufacturing overhead 2.80
Fixed manufacturing overhead 5.70
Unit product cost $ 30.40
Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product C64 that would increase the variable costs by $5.20 per unit and that would require a one-time investment of $45,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order.
Required: Determine the effect on the company's total net operating income of accepting the special order.
Answer:
Increase in Netcome$89,160
Explanation:
Calculation to Determine the effect on the company's total net operating income of accepting the special order.
Effect on the company's total net operating income of accepting the special order=(8,600units*$45.50)-[8,600units*($ 16.30+5.60+2.80+$5.20)]-$45,000
Effect on the company's total net operating income of accepting the special order=$391,300-$257,140-$45,000
Effect on the company's total net operating income of accepting the special order=$89,160 Increase
Therefore the effect on the company's total net operating income of accepting the special order will be increase in net income of the amount of $89,160
As noted in the case, HP considered approaching chain stores that sell store-brand cartridges compatible with its printers and offering them incentives if they end the practice. Considering the various types of allowances and discounts to channel members discussed within the chapter, what type of discount or allowance could the approach that HP is contemplating be most clearly identified as
Answer: a trade discount
Explanation:
Based on the information that was provided, the type of discount or allowance could the approach that HP is contemplating be most clearly identified as a trade discount.
A trade discount simply refers to the scenario when a manufacturer reduces the retail price it sells its good to the wholesaler or the retailer. Since HP approached chain stores, then a trade discount is considered here.
Consider a chemical factory that is situated next to a farm. Airborne emissions from the chemical factory damage crops on the farm. The marginal benefits of emissions to the factory and the marginal costs of damage to the farmer are as follows: Quantity of emissions (Q) 100 200 300 400 500 600 700 800 900 MB to factory 320 280 240 200 160 120 80 40 0 MC to farmer 110 130 150 170 190 210 230 250 270 Calculate the total net benefit to the farmer and factory at the economically and socially efficient quantity of emissions. A. $63000 B. $62000 C. $60750 D. $61000
Answer:
Marginal Benefits of Emissions
Total net benefit to the farmer and factory at the economically and socially efficient quantity of emissions is $30,000 when the quantity of emission is 200 tons.
Explanation:
a) Data and Calculations:
Quantity of Marginal Marginal Total Net Benefit
emissions (Q) Benefits Cost or Cost
100 320 110 21,000
200 280 130 30,000
300 240 150 27,000
400 200 170 12,000
500 160 190 -15,000
600 120 210 -54,000
700 80 230 -105,000
800 40 250 -168,000
900 0 270 -243,000
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments-Molding and Fabrication. It started, completed, and sold only two jobs during March- Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):
Molding Fabrication Total
Estimated total machine-hours used 2,500 1,500 4,000
Estimated total fixed manufacturing overhead $ 14,000 $ 17,400 $ 31,400
Estimated variable manufacturing overhead per machine-hour $ 3.00 $ 3.80
Job P Job Q
Direct materials $ 29,000 $ 16,000
Direct labor cost $ 33,800 $ 13,900
Actual machine-hours used:
Molding 3,300 2,400
Fabrication 2,200 2,500
Total 5,500 4,900
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
What was the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)
Answer:
Predetermined manufacturing overhead rate= $11.15 per machine hour
Explanation:
Molding Fabrication Total
Estimated total machine-hours used 2,500 1,500 4,000
Estimated total fixed manufacturing overhead $ 14,000 $ 17,400 $ 31,400
Estimated variable manufacturing overhead per machine-hour $ 3.00 $ 3.80
To calculate a single plantwide predetermined 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
Total fixed overhead= $31,400
Total variable overhead= (3*2,500) + (3.8*1,500)= $13,200
Total Machine hours= 4,000
Predetermined manufacturing overhead rate= (31,400 + 13,200) / 4,000
Predetermined manufacturing overhead rate= $11.15 per machine hour
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio Consider the following case: Crawford Construction has a quick ratio of 2.00x, $36,225 in cash, $20,125 in accounts receivable, some inventory, total current assets of $80,500, and total current liabilities of $28,175. The company reported annual sales of $100,000 in the most recent annual report. Over the past year, how often did Crawford Construction sell and replace its inventory? O 4.14 x 4.55 x 2.86x 8.01 x The inventory turnover ratio across companies in the construction industry is 4.55x. Based on this information, which of the following statements is true for Crawford Construction? O Crawford Construction is holding less inventory per dollar of sales compared to the industry average O Crawford Construction is holding more inventory per dollar of sales compared to the industry average You are analyzing two companies that manufacture electronic toys-Like Games Inc. and Our Play Inc. Like Games was launched eight years ago, whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal market share with sales of $100,000 each. You've collected company data to compare Like Games and Our Play. Last year, the average sales for all industry competitors was $255,000. As an analyst, you want to make comments on the expected performance of these two companies in the coming year. You've collected data from the companies' financial statements. This information is listed as follows: Data Collected (in dollars) Accounts receivable Net fixed assets Total assets Like Games 2,700 55,000 95,000 Our Play 3,900 80,000 125,000 Industry Average 3,850 216,750 234,600 Using this information, complete the following statements to include in your analysis days of sales tied up in receivables, which is much than the industry average. It takes Our Play 1. Our Play has time to collect cash from its customers than it takes Like Games. more than that of Our Play. This is because Like Games was formed eight years ago, so the 2. Like Games's fixed assets turnover ratio is acquisition cost of its fixed assets is recorded at historic values when the company bought its assets and has been depreciated since then Assuming that fixed assets prices (not book values) rose over the past six years due to inflation, Our Play paid a assets. amount for its fixed 3. The average total assets turnover in the electronic toys industry is 1.09x, which means that $1.09 of sales is being generated with every dollar of investment in assets. A are total assets turnover ratio indicates greater efficiency. Both companies' total assets turnover ratios than the industry average
Answer:
1. 4.14X
for the other parts of this question, i had to solve for the solution and fill it into the blank parts of the question.
Explanation:
part 1 solution:
annual sales - cash + account receivable
= 80500 - (36225 + 20125)
= 80500 - 56350
inventories = 24150
inventory turnover ratio = 100000/24150
= 4.14X
what is true for crawford is that crawford construction is holding more inventories per dollar compared to the industry average. we compared 4.14x with 4.55x to arrive at this conclusion.
part 2 solution:
Days sales outstanding = account receivable / average sales per day
like games = 2700/(100000/365)
= 9.855
our play = 3900/(100000/365)
= 14.235
industry average = 3850/(255000/365)
= 5.5
these values would be used to fill in this part of the question
our play has 14.235 days of sales which is much more than industry average. it is obvious that 14.235 is much greater than 5.5. It takes our play more time to time to collect colect cash from its customers than like games. this is as our play has 14.235 days and like games has 9.855 days.
fixed asset turn over ratio = sales/ net fixed assets
like games = 100000/55000
= 1.81X
our play = 100000/80000
= 1.25X
like games has fixed asset that is higher than that of our play. from the calculation above, 1.81X is greater than 1.25X. This is as like games was created 8 years ago.
Our Play paid a higher amount for its fixed assets.
part 3 solution;
total assets turn over ratio = sales / total assets
for industry average = 225000/234600 = 1.09X
for like games = 100000/95000 = 1.05X
For our play = 100000/125000 = 0.8X
A higher turn over ratio shows greater efficiency. Both companies have lower total turnover than the industry average. we can see obviously that 1.09X is greater than 1.05X and 0.8X.
thank you!
You have just purchased ten municipal bonds, each with a $1,000 par value, for $9,500. You purchased them immediately after the previous owner received semiannual coupon payments. The bond rate is 6.6% per year payable semiannually. You plan to hold the bonds for 5 years, selling them immediately after you receive the coupon payment. If your desired nominal yield is 12% per year compounded semiannually, what will be your minimum selling price for the bonds
Answer:
$12,663.26
Explanation:
The computation of the minimum selling price is shown below
Semi-annual = 12% ÷ 2 = 6%
Semi-annual compounding periods = 5 × 2 = 10
Semi-annual coupon (for 10 bonds) = $10,000 × 6.6% x (1 ÷ 2) = $330
as we know that
We assume the selling price be S
Present worth (PW) of the bond= PW of future cash flows
$9,500 = $330 × P/A(6%, 10) + S × P/F(6%, 10)
$9,500 = $330 × 7.3601 + S × 0.5584
$9,500 = $2,428.83 + S × 0.5584
S × 0.5584 = $7,071.17
= $7,071.17 ÷ 0.5584
= $12,663.26
USAco, a domestic corporation, manufactures widgets for sale worldwide. In year 2020, USAco had $10 million of net income related to sales of products it manufactures in the US, of which 3 million relates to sales to customers outside the US. USACO also owns a factory, which it uses to produce the above income, and which has an average adjusted U.S. tax basis of $40 million (taking into account the straight-line depreciation method). As a result of these activities, USACo will be allowed a Foreign Derived Intangible Income ("FDII") deduction of _______________
Answer:
USAco
As a result of these activities, USACo will be allowed a Foreign Derived Intangible Income ("FDII") deduction of _______________
$236,250.
Explanation:
a) Data and Calculations
Net income = $10 million
Export sales income = $3 million
Normal tax on $3 million at 21% = $630,000
FDII 13.125% tax on $3 million = $393,750
Difference = $236,250
b) A foreign derived intangible income (FDII) arises from the ownership, sale, or exchange of intangible property, patents, copyrights, trademarks, trade names, or other products tied to intangible assets by USACo, which entitles it to make a tax deduction of the calculated amount or to be taxed at a reduced tax rate of 13.125% instead of the normal 21% corporate tax rate. The FDII is aimed at encouraging US-based corporations to export more goods and services while locating more intangible assets in the US.
HW13. Suppose that you begin saving up to buy a car by depositing a certain amount at the end of each month in a savings account which pays 3.6% annual interest compounded monthly. If your goal is to have $15,000 in the account four and a half years from now, how much do you need to put into the savings account each month
Answer:
$256.31
Explanation:
Interest rate per annum = 3.6%
Number of years = 4.5
No of payment per annum = 12
Interest rate per period 3.6%/12 = 0.3%
Number of period = 4.5*12 = 54
FV of annuity = 15,000
Deposit in each month (P) = FVA / ([1+r)^n - 1]/r)
Deposit in each month (P) = 15,000 / ([1+0.3%]^54 - 1) / 0.3%)
Deposit in each month (P) = 15,000 / ([1.003^54 - 1]/0.003)
Deposit in each month (P) = 15,000 / (1.175575 - 1/0.003)
Deposit in each month (P) = 15,000 / (0.175575/0.003)
Deposit in each month (P) = 15,000 / 58.525
Deposit in each month (P) = 256.3007262
Deposit in each month (P) = $256.31
Kirk Enterprises offers rug cleaning services to business clients. Below is the adjustments data for the year ended July 31.Adjustments:
a. Depreciation expense, $1,000.
b. Wages accrued, but not paid, $2,000.
c. Supplies on hand, $8,000.
d. Of the unearned revenue, 75% has been earned.
e. Unexpired insurance at July 31, $9,000.
Question Completion:
KIRK Enterprises
Trial Balance as of July 31:
Account Titles Debit Credit
Cash 36,000
Prepaid Insurance 12,000
Fees Receivable 56,000
Supplies 12,000
Equipment 60,000
Accumulated Depreciation 12,000
Unearned Revenue 20,000
Accounts Payable 32,000
Common Stock 84,000
Dividends 4,000
Service Revenue 80,000
Advertising Expense 28,000
Wage Expense 20,000
Totals 228,000 228,000
Required:
Using this information along with the spreadsheet below, record the adjusting entries in proper general journal form.
Answer:
Kirk Enterprises
Unadjusted Adjustments Adjusted
Trial Balance Trial Balance
Account Titles Debit Credit Debit Credit Debit Credit
Cash 36,000 36,000
Prepaid Insurance 12,000 3,000 9,000
Fees Receivable 56,000 56,000
Supplies 12,000 4,000 8,000
Equipment 60,000 60,000
Accumulated Depreciation 12,000 1,000 13,000
Unearned Revenue 20,000 15,000 5,000
Accounts Payable 32,000 32,000
Wages Payable 2,000 2,000
Common Stock 84,000 84,000
Dividends 4,000 4,000
Service Revenue 80,000 15,000 95,000
Advertising Expense 28,000 28,000
Wage Expense 20,000 2,000 22,000
Insurance Expense 3,000 3,000
Supplies Expense 4,000 4,000
Depreciation Expense 1,000 1,000
Totals 228,000 228,000 25,000 25,000 231,000 231,000
Explanation:
a) Adjustments:
Depreciation expense $1,000 Accumulated Depreciation $1,000
Wages expense $2,000 Wages payable $2,000
Supplies expense $4,000 Supplies $4,000 ($12,000 - $8,000)
Unearned revenue $15,000 Service Revenue $15,000 ($20,000 * 75%)
Insurance expense $3,000 Prepaid Insurance $3,000 ($12,000 - 9,000)
Carla Vista Company has the following information available for September 2020.
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
Compute the unit contribution margin.
Unit contribution margin enter the unit contribution margin
Prepare a CVP income statement that shows both total and per unit amounts.
Compute Carla Vista’ break-even point in units.
Break-even point in units enter Break-even point in units units
Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Answer:
Carla Vista Company has the following information available for September 2020.
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
Compute the unit contribution margin.
Unit contribution margin enter the unit contribution margin
Prepare a CVP income statement that shows both total and per unit amounts.
Compute Carla Vista’ break-even point in units.
Break-even point in units enter Break-even point in units units
Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Suman said that, "she didn't understand the
direct and indirect speech
Explanation:
Indirect speech, also known as reported speech or indirect discourse (US), is a means of expressing the content of statements, questions or other utterances, without quoting them explicitly as is done in direct speech. For example, He said "I'm coming" is direct speech, whereas He said (that) he was coming is indirect speech. Indirect speech should not be confused with indirect speech acts.
Taxable income terminology Taxable Income Terminology Match the terms relating to the basic terminology and concepts of personal finance on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term These are not necessarily complete definitions, but there is only one possible answer for each term
Term Answer Description
A. To qualify for exclusion during this transaction, you must have owned and Gross income ▼ occupied for two of the five prior years
B. This term essentially includes all income subject to federal tax Active income Portfolio income
C. Using taxable income, it is based on tax tables or tax rate schedules Passive income
D. This term includes expenses that can only offset portfolio income.
E. This is used to offset passive income Investment expenses
F. This term includes income from self-employment Real estate or limited partnership expenses Capital gains
G. This item is taxed at different rates depending on the holding period Sale of a home A TH,
H. This is used to determine tax liability Taxable income
I. This term includes income gained from real estate and limited partnerships ▼ Tax liability C
J. This term refers to earnings and capital gains generated from investment holdings
Answer:
A. To qualify for exclusion during this transaction, you must have owned and occupied for two of the five prior years ⇒ Sale of a home.
B. This term essentially includes all income subject to federal tax ⇒ Gross Income.
C. Using taxable income, it is based on tax tables or tax rate schedules ⇒ Tax liability.
D. This term includes expenses that can only offset portfolio income. ⇒ Investment expenses.
E. This is used to offset passive income Investment expenses. ⇒ Real estate or limited partnership expenses.
F. This term includes income from self-employment ⇒ Active Income.
G. This item is taxed at different rates depending on the holding period ⇒ Capital gains.
H. This is used to determine tax liability ⇒ Taxable income.
I. This term includes income gained from real estate and limited partnerships. ⇒ Passive income.
J. This term refers to earnings and capital gains generated from investment holdings. ⇒ Portfolio income.
Pierre Corporation has a precredit U.S. tax of $315,000 on $1,560,000 of taxable income in the current year. Pierre has $312,000 of foreign source taxable income characterized as foreign branch income and $156,000 of foreign source taxable income characterized as passive category income. Pierre paid $63,000 of foreign income taxes on the foreign branch income and $27,000 of foreign income taxes on the passive category income. What amount of foreign tax credit (FTC) can Pierre use on its current U.S. tax return and what is the amount of the carryforward, if any
Answer:
the carryforward amount is $90,000
Explanation:
The computation of the carryforward amount is given below:
= Foreign income tax paid on the foreign branch income + foreign income taxes on the passive category income
= $63,000 + $27,000
= $90,000
hence, the carryforward amount is $90,000
Decision Point: International Market Analysis You've done a considerable amount of research and have determined the follöwing Approximately 75% of the population in Ethiopia does not have electricity. Approximately 55% of the population in Nigeria does not have electricity. Nearly 40% of the population in Bangladesh does not have electricity. Nearly 25% of the population in Indonesia does not have electricity. Approximately 25% of the population in India does not have electricity. * Yoè recognize, however, that it would be wise to consider the population of those countries before determining which market(s) would have the greatest potential for your products, so you obtain that information as well. Your research reveals the following population estimates: .
Population of Ethiopia: 102,000,000 .
Population of Nigeria: 187,000,000 .
Population of Bangladesh: 163,000,000
Population of Indonesia: 260,000,000
Population of India: 1,327,000,000
Based on the information presented above, calculate the number of people in each country who do not have access to electricity.
Answer and Explanation:
The computation is shown below:
Country Total population % without electricity No. of people without electricity
Ethiopia 102,000,000 75% 76,500,000
Nigeria 187,000,000 55% 102,850,000
Bangladesh 163,000,000 40% 65,200,000
Indonesia 260,000,000 25% 65,000,000
India 1,327,000,000 25% 331,750,000
The number of people in each country who do not have access to electricity will be:
Ethiopia = 76,500,000Nigeria = 102,850,000Bangladesh = 65,200,000Indonesia = 65,000,000.India = 331,750,000.In Ethiopia, the number of people without electricity will be:
= 75% × 102000000 = 76500000
In Nigeria, the number of people without electricity will be:
= 187000000 × 55% = 102850000
In Bangladesh, the number of people without electricity will be:
= 163000000 × 40% = 65200000
In Indonesia, the number of people without electricity will be:
= 260000000 × 25% = 65000000
In India, the number of people without electricity will be:
= 1327000000 × 25% = 331750000
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According to the Bureau of Labor Statistics, there are about 3 million temp employees in the U.S. out of 150 million employees overall. What percentage of workers are temporary workers?
Answer:2%
Explanation:
Answer:2%
Explanation:
Match each of the options above to the items below.
a. Revenues, expenses. and dividends,
b. List of permanent accounts and their balances.
c. Transfer of temporary balances to retained earnings.
d. List of permanent and temporary accounts and thejr balances.
e. Assets, liabilities, and stockholders' equity
1. Adjusted Trjal balance
2. Post-closing trial balance
3. Permanent accounts
4. Temporary accounts
5. Closing entries
Answer:
a. Revenues, expenses. and dividends - Temporary accounts
b. List of permanent accounts and their balances - Post-closing trial balance
c. Transfer of temporary balances to retained earnings - Closing entries
d. List of permanent and temporary accounts and their balances - Adjusted trial balance
e. Assets, liabilities, and stockholders' equity - Permanent accounts
Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $10.80 per unit, while product B has been assigned $3.60 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information:
Cost Pools Activity Costs Cost Drivers Driver Consumption
Machine setup $360,000 Setup hours 4,000
Materials handling 100,000 Pounds of materials 20,000
Electric power 40,000 Kilowatt-hours 40,000
The following cost information pertains to the production of A and B, just two of Hakara's many products:
A B
Number of units produced 4,000 20,000
Direct materials cost $42,000 $54,000
Direct labor cost $24,000 $40,000
Number of setup hours 400 200
Pounds of materials used 1,000 3,000
Kilowatt-hours 2,000 4,000
Required:
Use activity-based costing to determine a unit cost for each product.
Answer:
Results are below.
Explanation:
First, we need to calculate the activities rates of allocation:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setup= 360,000/4,000= $90 per set up hour
Materials handling= 100,000/20,000= $5 per pound of material
Electric power= 40,000/40,000= $1 per kilowwat hour
Now, we can allocate costs to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
A:
Allocated MOH= 90*400 + 5*1,000 + 1*2,000
Allocated MOH= $43,000
B:
Allocated MOH= 90*200 + 5*3,000 + 1*4,000
Allocated MOH= $37,000
Finally, the total and unitary cost:
A:
Total cost= 42,000 + 24,000 + 43,000
Total cost= $109,000
Unitary cost= 109,000/4,000
Unitary cost= $2.73
B:
Total cost= 54,000 + 40,000 + 37,000
Total cost= $131,000
Unitary cost= 131,000/20,000
Unitary cost= $6.55
The Activity-based costing (ABC) costing system is based on activities, overseen by any event, task unit, or targeted activity
What do you mean by Acitivity based costing?
Activity-based costing (ABC) is a way of providing assigning overhead and indirect costs such as salaries and services — to products and services.
Predetermined manufacturing overhead rate is equal to total estimated overhead costs for the period/ total amount of allocation base
[tex]\rm\,Machine \;setup= \dfrac{360,000}{4,000}= \$90 \; per \;set \;up \;hour\\\\Materials \;handling= \dfrac{100,000}{20,000}= \$5 \;per \;pound \;of \;material\\\\Electric \; power= \dfrac{40,000}{40,000}= \$1 \;per \; kilowatt \;hour[/tex]
We can allocate costs to each product:
Allocated manufacturing overhead is equal to Estimated manufacturing overhead rate multiplied by Actual amount of allocation base.
[tex]\rm\,A: Allocated MOH= 90 \times 400 + 5\times 1,000 + 1\times2,000\\\\Allocated MOH= \$43,000\\\\B: Allocated MOH= 90 \times200 + 5\times3,000 + 1\times4,000\\\\Allocated MOH= \$37,000[/tex]
The total and unitary cost:
[tex]\rm\, A. Total\; cost = 42,000 + 24,000 + 43,000\\\\Total \;cost= \$109,000\\\\Unitary \;cost= \dfrac{109,000}{4,000}\\\\Unitary \;cost= \$2.73\\\\B: Total \;cost= 54,000 + 40,000 + 37,000\\\\Total\; cost= \$131,000\\\\Unitary\; cost= \dfrac{131,000}{20,000}\\\\Unitary\; cost= \$6.55\\\\[/tex]
Thus, Activity based costing (ABC) is used to determine a unit cost for each product A and B.
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Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ACME Wayne ($ in millions)Corporation Enterprises Current assets:Cash and cash equivalents $499 $285 Current investments 7 530 Net receivables 751 206 Inventory 10,586 8,609 Other current assets 1,344 255 Total current assets $13,187 $9,885 Current liabilities:Current debt $8,621 $4,451 Accounts payable 1,807 1,061 Other current liabilities 1,179 2,381 Total current liabilities $11,607 $7,893 Required:1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.)
Answer: See explanation
Explanation:
We should note that the current ratio is calculated as:
= Current assets / Current liabilities
Therefore, the current ratio for ACME Corporation will be:
= Current assets / Current liabilities
= $13,187 / $11,607
= 1.136
The current ratio for Wayne Enterprises will be:
= Current assets / Current liabilities
= $9,885 / $7,893
= 1.25
For the current year, Power Cords Corp. expected to sell 42,100 industrial power cords. Fixed costs were expected to total $1,650,500; unit sales price was expected to be $3,800; and unit variable costs were budgeted at $2,300.
Power Cord Corp.'s margin of safety (MOS) in sales dollars is: (Do not round intermediate calculations.)
A. $155,798,733.
B. $189,973,732.
C. $161,718,730.
D. $173,523,730.
E. $145,348,733.
Answer:
A. $155,798,733.
Explanation:
The first task to determine the break-even point in sales dollars as shown below:
break-even point in sales dollars=fixed costs/contribution margin ratio
fixed costs=$1,650,500
contribution margin ratio=unit contribution margin/sales price
unit contribution margin=unit sales price- unit variable costs
unit contribution margin=$3,800-$2,300
unit contribution margin=$1,500
contribution margin ratio=$1500/$3,800
contribution margin ratio=39.47%
break-even point in sales dollars=$1,650,500/39.47%
break-even point in sales dollars=$4,181,657
margin of safety (MOS) in sales dollars=current sales- break-even point in sales dollars
current sales=42,100*$3,800=$159,980,000
margin of safety (MOS) in sales dollars=$159,980,000-$4,181,657=$155,798,343(closest to $155,798,733)
On January 1, 2020, Bridgeport Corporation issued $3,740,000 of 10-year, 8% convertible debentures at 102. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into 8 shares of Bridgeport Corporation $100 par value common stock after December 31, 2021. On January 1, 2022, $374,000 of debentures are converted into common stock, which is then selling at $111. An additional $374,000 of debentures are converted on March 31, 2022. The market price of the common stock is then $116. Accrued interest at March 31 will be paid on the next interest date. Bond premium is amortized on a straight-line basis. Make the necessary journal entries for: (a) December 31, 2021. (c) March 31, 2022. (b) January 1, 2022. (d) June 30, 2022.
Answer:
Bridgeport Corporation
Journal Entries:
(a) December 31, 2021.
Debit Interest on Debentures $149,600
Credit Cash $149,600
To record the interest expense and payment for the six months.
Debit Debentures Premium $3,740
Credit Interest on Debentures $3,740
To record the amortization of the debentures premium.
(b) January 1, 2022.
Debit Debenture $374,000
Credit Common Stock $299,200
Credit APIC $74,800
To record the conversion of debentures to shares.
(c) March 31, 2022.
Debit Debenture $374,000
Credit Common Stock $299,200
Credit APIC $74,800
To record the conversion of debentures to shares.
Debit Interest on Debentures $67,320
Credit Interest Payable $67,320
To accrue interest for the quarter.
Debit Debentures Premium $1,870
Credit Interest on Debentures $1,870
To record the amortization of the debentures premium for the quarter.
(d) June 30, 2022.
Debit Interest on Debentures $59,840
Credit Interest payable $59,840
To accrue interest for the quarter.
Debit Debentures Premium $1,870
Credit Interest on Debentures $1,870
To record the amortization of the debentures premium for the quarter.
Debit Interest Payable $127,160
Credit Cash $127,160
To record payment of interest for the six months.
Explanation:
a) Data and Calculations:
Issue of 10-year 8% Convertible Debentures at 102 = $3,814,800 (Cash)
Debenture premium $74,800
Half-yearly premium amortization = $74,800/20 = $3,740
Face value = $3,740,000
b) Interest on Debenture = $3,740,000 * 8% * 1/2 = $149,600
c) $374,000 debentures converted into 8 shares for every $1,000.
= $374,000/1,000 * 8 = 2,992 shares at $100 par value
d) Interest on Debentures ($3,740,000 - $374,000) * 8% * 1/4
= $3,366,000 * 8% * 1/4 = $67,320
Plus
$3,366,000 - $374,000 * 8% * 1/4 = $59,840
Total interest = $127,160
If a product's demand rises as income rises, ceteris paribus, the product is
a) an inferior good
b) not enough information
c) a notmal good
d) outside of the market equilibrium
Generally, when a product's demand rises as income rises, ceteris paribus, the product is outside of the market equilibrium
Market equilibrium occurs when a market price of quantity demanded is equal to the quantity supplied
Hence, when a product's demand rises as income rises, ceteris paribus, the product is outside of the market equilibrium
In conclusion, the Option D is correct.
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The partnership of Keenan and Kludlow paid the following wages during this year:
M. Keenan (partner) $85,000
S. Kludlow (partner) 75,000
N. Perry (supervisor) 53,000
T. Lee (factory worker) 34,600
R. Rolf (factory worker) 29,800
D. Broch (factory worker) 6,900 S.
Ruiz (bookkeeper) 25,400
C. Rudolph (maintenance) 5,100
In addition, the partnership owed $200 to Rudolph for work he performed during December. However, payment for this work will not be made until January of the following year. The state unemployment tax rate for the company is 2.95% on the first $9,000 of each employee's earnings. Compute the following:
a. Net FUTA tax for the partnership for this year.
b. SUTA tax for this year.
Answer:
a. The Net FUTA tax for the partnership for this year is $1,680.
b. The SUTA tax for this year is $1,062.
Explanation:
a) Data and Calculations:
M. Keenan (partner) $85,000
S. Kludlow (partner) 75,000
N. Perry (supervisor) 53,000
T. Lee (factory worker) 34,600
R. Rolf (factory worker) 29,800
D. Broch (factory worker) 6,900
Ruiz (bookkeeper) 25,400
C. Rudolph (maintenance) 5,100
Gross payroll = $314,800
FUTA rate is 6% for the first $7,000
Gross Pay FUTA SUTA
(first $7,000) (first $9,000)
N. Perry (supervisor) 53,000 $420 $265.50
T. Lee (factory worker) 34,600 420 265.50
R. Rolf (factory worker) 29,800 420 265.50
D. Broch (factory worker) 6,900 0 0
Ruiz (bookkeeper) 25,400 420 265.50
C. Rudolph (maintenance) 5,100 0 0
Payroll for employees = $154,800 $1,680 $1,062
b) The FUTA tax rate is 6.0%. The tax applies to the first $7,000 that Keenan and Kludlow paid to each employee as wages during the year. This first $7,000 is often referred to as the federal or FUTA wage base. The state's SUTA tax rate depends on each state where SUTA is collected. Note that the additional $200 owed to Rudolph does not alter his base wages which fall below $7,000.
What is another term for the buying and selling of stocks?
A.) Entrepreneurial ability.
B.) Trading.
C.) Shares.
D.) Lack of scarcity.
The general price level is 150.00 and people expect it to increase to 156.00 next year. Therefore, the expected rate of inflation equals percent. Moreover, there is a one-year bond that promises to pay $107,000.00 next year and is selling for $100,000.00 in the bond market today. So, the nominal interest rate equals percent, and the ex-ante real interest rate on this bond equals percent. Because of some news about the state of the economy, people revise their expectations of the future price level to 159.00. According to the Fisher Effect, the price of the bond today will change to_______ dollars.
Answer:
$98,165.14
Explanation:
Note: There are missing word but the full question is attached as picture below
Here, Initial Nominal Interest rate = 7%
Inflation expectation= 4%
So, real return = 3%
Now, investors would want same real return
New inflation = (159 - 150)/150 *100 = 6%
Nominal interest rate = 6 %+ 3% = 9%
Price after 1 year = $107,000
So, current price changes to = $107,000/(1+0.09) = $107,000/1.09 = $98,165.14
service that provide when the customer is still in the store
A bachelors degree in which of the following areas is a good choice for an arts an communication manager?
A. business
B. art history
C. theater
Mike Greenberg opened Cheyenne Window Washing Inc. on July 1, 2022. During July, the following transactions were completed.
July 1 Issued 9,800 shares of common stock for $9,800 cash.
1 Purchased used truck for $6,560, paying $1,640 cash and the balance on account.
3 Purchased cleaning supplies for $740 on account.
5 Paid $1,440 cash on a 1-year insurance policy effective July 1.
12 Billed customers $3,030 for cleaning services performed.
18 Paid $820 cash on amount owed on truck and $410 on amount owed on cleaning supplies.
20 Paid $1,640 cash for employee salaries.
21 Collected $1,310 cash from customers billed on July 12.
25 Billed customers $2,050 for cleaning services performed.
31 Paid $240 for maintenance of the truck during month.
31 Declared and paid $490 cash dividend.
Journalize the July transactions.
Post to the ledger accounts.
Prepare a trial balance at July 31.
Journalize the following adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
(1) Services performed but unbilled and uncollected at July 31 were $1,750.
(2) Depreciation on equipment for the month was $202.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows $320 of cleaning supplies on hand at July 31.
(5) Accrued but unpaid employee salaries were $415.
Answer:
Cash (Dr.) $9.800
Common Stock (Cr.) $9,800
Truck (Dr.) $6,560
Cash (Cr.) $1,640
Accounts Payable -Truck (Cr.) $4,920
Cleaning Supplies (Dr.) $740
Accounts Payable (Cr.) $740
Prepaid Insurance (Dr.) $1,440
Cash (Cr.) $1,440
Accounts Receivable (Dr.) $3,030
Service Revenue (Dr.) $3,030
Accounts Payable - Truck (Dr.) $820
Accounts Payable - Supplies (Dr.) $410
Cash (Cr.) $1,230
Cash (Dr.) $1,310
Accounts Receivable (Cr.) $1,310
Maintenance Expense Truck (Dr.) $240
Cash (Cr.) $240
Dividend paid (Dr.) $490
Cash (Cr.) $490
Explanation:
1) Accounts Receivable (Dr.) $1,750
Service Revenue (Cr.) $1,750
2) Depreciation expense (Dr.) $202
Accumulated Depreciation (Cr.) $202
3) Insurance Expense (Dr.) $120
Prepaid Insurance (Cr.) $120
4) Ending Inventory (Dr.) $320
Cleaning Supplies (Cr.) $320
5) Salaries Expense (Dr.) $415
Salaries Payable (Cr.) $415
After graduating college, you receive $10,000 and decide to put it in a high yield saving account. The account earns 0.50% compounded quarterly. a) (8 points) What is the effective annual interest rate? b) (7 points) If you leave your initial investment of $10,000 in the account without any withdrawals what would you expect the value of the account to be after 4 years?
Answer:
a)
The effective annual interest rate is 0.5009%
b)
I will expect $10,201.88 the value of the account after 4 years
Explanation:
a)
Use the following formula to calculate the effective annual interest rate
Effective annual Interest rate = ( ( 1 + Interest rate / Compounding period per year )^Compounding period per year ) - 1
Where
Interest rate = 0.50%
Compounding period per year = 4 quarters in a year
Placing values in the formula
Effective annual Interest rate = ( ( 1 + 0.5% / 4 )^4 ) - 1 = 0.005009 = 0.5009%
b)
Use the following formula to calculate the value after 4 years
Value after 4 years = Current Investment x ( 1 + Periodic Interest rate )^numbers of period
Where
Current Investment = $10,000
Periodic Interest rate = 0.50% / 4 = 0.125%
Numbers of period = Compounding Periods per year x Numbers of years = 4 quarters per year x 4 years = 16 quarters
Placing values in the formula
Value after 4 years = $10,000 x ( 1 + 0.125% )^16
Value after 4 years = $10,201.88