Answer:
Fortune, Inc.
Budgeted Income Statement for the first quarter ended March 31
Sales revenue $3,750,000
Cost of goods sold 1,800,000
Gross profit $1,950,000
Expenses:
Commission 375,000
Advertising 412,500
Office salaries 222,000
Depreciation 165,000
Interest expense 10,075
Total expenses $1,184,575
Net income $765,425
Explanation:
a) Data and Calculations:
Selling price per unit = $25
Forecast sales units:
January 40,000
February 60,000
March 50,000
Total sales for the quarter = 150,000 units
Sales revenue = $3,750,000 (150,000 * $25)
Cost of goods sold = $12 per unit
Cost of goods sold = $1,800,000 (150,000 * $12)
Commission = 10% of sales dollars
Commission = $375,000 ($3,750,000 * 10%)
Rent = $17,000 per month (Total for quarter = $51,000)
Advertising = 11% of sales dollars
Advertising = $412,500 ($3,750,000 * 11%)
Office salaries = $74,000 per month (Total for quarter = $222,000)
Depreciation = $55,000 per month (Total for quarter = $165,000
Interest expense = 13% of $310,000 annually
Interest expense for the quarter = $10,075 ($310,000 * 13% * 1/4)
Which one of the following statements is TRUE?
a. The supervisor-employee relation between a production line supervisor and a production line operator is an example of an agency relationship.
b. An example of an agency relationship is when the CEO nominates a slate of candidates to be on the board of directors.
c. An example of an agency relationship is when a supervisor hires a forklift operator.
d. In an agency relationship, the principal delegates decision-making authority to the agent.
e. In an agency relationship, the agent delegates authority to the principal."
Answer:
D.
Explanation:
Agency relationship implies that one person referred as principal allows another person agent to take decision or act on former's behalf.
In an agency relationship, the principal delegates decision-making authority to the agent.
The Labor Market — End of Chapter Problem
The number of bank tellers declined from an aver-age of 20 per branch in 1988 to 13 in 2004, as ATMs replaced human tellers. This meant that the cost of running each branch fell. Banks responded by increasing the number of urban bank branches by 43% in the same time period, which increased the total number of bank employees. So ATMs shifted employees' work from routine tasks like deposits and withdrawals towards skills machines cannot provide, such as sales and customer service.
When the use of ATMs became more prevalent, reducing the banks' overall costs, the ______ was dominant. On net, labor and capital would be considered _______ in this industry.
Answer: scale effect; complement
Explanation:
When the use of ATMs became more prevalent, reducing the banks' overall costs, the (scale effect) was dominant while on net, labor and capital would be considered (complement) in this industry.
Labor and Capital are regarded as complement because they work alongside each other. The ATM machines can only work with the labor available who operates it. Therefore, they go hand in hand as one can't function without the other.
A company paid an old bill from a previous month for $300 cash. The effect of this transaction in the basic accounting equation is *
A decrease in Cash and an increase in Accounts Payable
A decrease in Cash and an increase in Owner’s Capital
An increase in Accounts Payable and a decrease in Owner’s Capital
None of the above
Answer:
None of the above
Explanation:
Given the situation described above in the question and considering the available options, the right answer to
-The effect of this transaction in the basic accounting equation is that "the account payable decreases and the cash increases"
This answer is not part of the available option. Hence, the correct answer is "None of the above"
An oligopolistic market structure is distinguished by several characteristics, one of which is difficult entry because barriers are significant. What are some other characteristics of this market structure? Check all that apply. Market control by a few large firms Either homogeneous or differentiated products Interdependence among firms Neither interdependence nor dependence among firms Market control by many small firms
Answer:
Market control by a few large firms Either homogeneous or differentiated products Interdependence among firmsExplanation:
An Oligopolistic market structure is very concentrated which means that it is controlled by a few large firms who can decide to collude to influence market prices.
There is interdependence among the firms as the pricing decision of one firm affects the rest because it could either increase or decrease the market share that each firm enjoys. e.g. if one firm charges a lower price and the other firms don't, the lower price company will gain market share.
The goods sold in this market are either homogeneous or differentiated products which is why there is so much interdependence because products can be substituted.
Marriott International is a worldwide operator, franchisor, and licensor of hotels, residential, and timeshare properties totaling nearly $1.8 billion in net property and equipment. Assume that Marriott replaced furniture that had been used in the business for five years. The records of the company reflected the following regarding the sale of the existing furniture:
Furniture (cost) ............................... $8,000,000
Accumulated depreciation .............. ...7,700,000
Required:
1. Give the journal entry for the disposal of the furniture, assuming that it was sold for
a. $300,000 cash
b. $900,000 cash
c. $100,000 cash
2. Based on the three preceding situations, explain the effects of the disposal of an asset.
Answer:
Marriott International
Journal Entries:
a. $300,000 cash
Debit Sale of Assets $8,000,000
Credit Furniture $8,000,000
To transfer the account to sale of assets account.
Debit Accumulated Depreciation $7,700,000
Credit Sale of Assets $7,700,000
To transfer the account to sale of assets account.
Cash $300,000
Sale of Assets $300,000
To record the cash receipts from the sale of assets.
No gain or loss on disposal.
b. $900,000 cash
Debit Sale of Assets $8,000,000
Credit Furniture $8,000,000
To transfer the account to sale of assets account.
Debit Accumulated Depreciation $7,700,000
Credit Sale of Assets $7,700,000
To transfer the account to sale of assets account.
Debit Cash $900,000
Credit Sale of Assets $900,000
To record the cash receipts from the sale of assets.
Sale of Assets $600,000
Gain on Disposal $600,000
To record the gain on the disposal of the furniture.
c. $100,000 cash
Debit Sale of Assets $8,000,000
Credit Furniture $8,000,000
To transfer the account to sale of assets account.
Debit Accumulated Depreciation $7,700,000
Credit Sale of Assets $7,700,000
To transfer the account to sale of assets account.
Debit Cash $100,000
Credit Sale of Assets $100,000
To record the cash receipts from the sale of assets.
Loss on Disposal $200,000
Sale of Assets $200,000
To record the loss on disposal of the furniture.
2. The disposal of an asset creates either a loss on disposal or a gain on disposal, which is normally regarded as a capital loss or a capital gain, as the case may be.
Explanation:
a) Data and Calculations:
Furniture (cost) ............................... $8,000,000
Accumulated depreciation .............. ...7,700,000
Net book value = $300,000
a. $300,000 cash
Sale of Assets $8,000,000
Furniture $8,000,000
Accumulated Depreciation $7,700,000
Sale of Assets $7,700,000
Cash $300,000
Sale of Assets $300,000
b. $900,000 cash
Sale of Assets $8,000,000
Furniture $8,000,000
Accumulated Depreciation $7,700,000
Sale of Assets $7,700,000
Cash $900,000
Sale of Assets $900,000
c. $100,000 cash
Sale of Assets $8,000,000
Furniture $8,000,000
Accumulated Depreciation $7,700,000
Sale of Assets $7,700,000
Cash $100,000
Sale of Assets $100,000
Logan Township acquired its water system from a private company on June 1. No receivables were acquired with the purchase. Therefore, total accounts receivable on June 1 had a zero balance. Logan plans to bill customers in the month following the month of sale, and 70% of the resulting billings will be collected during the billing month. In the next following month, 90% of the remaining balance should be collectable. The remaining uncollectible amounts will relate to citizens who have moved away. Such amounts are never expected to be collected and will be written off.
Water sales during June are estimated at $4,000,000, and expected to increase 30% in July. August sales will be the same as July sales.
Required:
Estimate the monthly cash collections for June, July, August, and September.
Answer:
Logan Township
Estimate of the monthly cash collections for June, July, August, and September:
June July August September
Sales of water $4,000,000 $5,200,000 $5,200,000
Cash Collections:
70% month of sale 2,800,000 3,640,000 3,640,000
27% following month 1,080,000 1,404,000 $1,404,000
Monthly cash
collections $2,800,000 $4,720,000 $5,044,000 $1,404,000
Explanation:
a) Data and Calculations:
Collections:
70% month of sale
90% of 30% following month of sale = 27%
10% of 30% Uncollectible = 3%
Water sales in June = $4,000,000
Water sales in July = $5,200,000 ($4,000,000 * 1.3)
Water sales in August = $5,200,000
June July August September
Sales of water $4,000,000 $5,200,000 $5,200,000
Cash Collections:
70% month of sale 2,800,000 3,640,000 3,640,000
27% following month 1,080,000 1,404,000 $1,404,000
Monthly cash
collections $2,800,000 $4,720,000 $5,044,000 $1,404,000
We have implicitly assumed that Ace Airline starts paying the salary of $15,000 per month only at the end of the two-month school. Such a practice drew significant complaints from the trainees. Ace decided to change its practice and pay the trainees during the training session as well. How would the new policy change Ace's class size
Answer:
Ace Airline class size will increase as more trainees would be willing to work with Ace Airlines.
Explanation:
Ace airlines is paying trainees $15,000 per month after they complete their training. There was a complain by trainees that they are not paid for the training and the training expense is born by the trainees themselves. Ace decides to pay the trainees for the training sessions as well and this will attract more trainees to work for Ace.
Based on the readings: match the following business example with its associated product cost term A businessowner pays for rent and equipment at their office An airline considers the costs of serving food and beverages to its passengers A company considers the costs it pays to its employees A clothing manufacturer buys new machines for its factory A. variable costs B. fixed costs C. fixed cost D. variable costs
Answer:
A business owner pays for rent and equipment at their office ⇒ FIXED COSTs since the amount of rent paid should be the same year after year
An airline considers the costs of serving food and beverages to its passengers ⇒ VARIABLE COSTS since the cost of serving food will increase as the number of passengers increase, or will decrease if the number of passengers decrease
A company considers the costs it pays to its employees ⇒ VARIABLE COSTS since the number of employee can vary and the number of hours worked can also vary
A clothing manufacturer buys new machines for its factory ⇒ FIXED COSTS since the machines are depreciated at a predetermined rate that doesn't depend on the factory's output
Relevance has always been the challenge of the advertising industry. Summarize Kristi Roger's assessment of the advertising industry in her Ted Talk. Considering her hypothesis and results, what are some implications for marketing managers as they seek to improve the ROI of marketing expenditures on all forms of marketing communications
Answer:
Advertising is a paid sort of promotion utilized by organizations for product promotion, hence being of a vital usage and a significant part in organizations. The achievement of any firm is reliant on the correct sort of advertising channels utilized.
Explanation:
In her Ted talk, it is clear Kristi Roger had conducted an extraordinary advertising analysis, in this way contending that relevance is a fundamental factor assuming an enormous part in advertising. She contends that the planned message of promotion should contact the perfect person at the perfect time. To guarantee this assertion is accomplished, an advertiser has the obligation to utilize the correct technology undeniably to make a pertinent directive for the correct crowd.
In addition, marketing managers are obligated to recognize the significant challenges in the market. They ought to get updated changes occurring in the market to stay away from any significant impacts on the Return On Investment (ROI).
To profit more from advertising, marketing managers should recruit the ideal person who is acceptable in quantitative skills rather than creative skills in light of the fact that the market analysis is of more significance than benefiting creative products into the market. A person with extraordinary quantitative skills can examine the market situations appropriately, henceforth s/he can dispose of a portion of the cycles that occur in computerized crusade improvement. To carry extraordinary outcomes to the organization, quantitative specialists guarantee important advertisements contact the perfect person at the perfect time.
The Toronto Maple Company (TMC) produces maple syrup and syrup based products. During the current period, the firm's Production Department started production of 210,000 gallons of syrup. During the period, the firm completed and transferred 205,000 gallons to the Shipping Department. The firm ended the period with 12,500 gallons in ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted-average costing is used by the company. Part 1 (4 points): What were the equivalent units for conversion costs for the period if the beginning inventory was 75% complete as to conversion costs and the ending inventory was 40% complete as to conversion costs
Answer:
Equivalent units of production= 210,000 units
Explanation:
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
We need to use the following formula:
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 205,000 + (12,500*0.4)
Equivalent units of production= 210,000 units
Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished automobile. Because more firms increase competition in the market, the market price falls as more firms enter an automobile market, or specifically P = 17,000 + (150/n), where n represents the number of firms in a market. Assume that the initial size of the U.S, and the European automobile markets are 300 million and 533 million people, respectively.
a. Calculate the equilibrium number of firms in the U.S. and European automobile markets without trade.
b. What is the equilibrium price of automobiles in the United States and Europe if the automobile industry is closed to foreign trade?
c. Now suppose that the United States decides on free trade in automobiles with Europe. The trade agreement with the Europeans adds 533 million consumers to the automobile market, in addition to the 300 million in the United States. How many automobile firms will there be in the United States and in Europe combined? What will be the new equilibrium price of automobiles?
d. Why are prices in the United States different in (c) than in (b)? Are consumers better off with free trade? In what ways?
Answer:
Explanation:
Given that:
[tex]P =17000+(\dfrac{150}{n})[/tex]
where;
P = the price and;
n is the number of firms.
Now, Recall that:
[tex]AC = \dfrac{F}{Q}+C = \dfrac{F}{\dfrac{S}{n}}+C[/tex] [tex](for \ Q = \dfrac{S}{n})= n \times \dfrac{F}{S} + C[/tex]
where:
AC = average cost
F = fixed cost
Q = output of firm C
C = variable cost (The marginal cost is determined by variable costs and is influenced by fixed costs.)
S = The automobile sector's demand in each nation
But since avg. cost per unit, as well as the price, are just the same;
Then;
AC= P
[tex]17000+(\dfrac{150}{n})= n \times \dfrac{F}{S}+C --- (1)[/tex]
So, S is now worth $300 million in the United States.
Then, we get the value of n for the United States by replacing the values of S, F, and C in equation (1).
By solving:
n = 3
Similarly, S is valued at $53 million in Europe.
We get the estimated value of n for Europe by replacing the necessary values in equation (1).
Thus, by solving:
n = 4
Hence;
In the United States, the equilibrium number of companies is 3.
In Europe, the equilibrium number of firms is 4.
B)
Replacing the values for n in the equation:
[tex]P = 17000 +( \dfrac{150}{n})[/tex] we can determine the value of P in the United State:
[tex]P_{US} = 17000 + ( \dfrac{150}{3})[/tex]
= $17050.
Similarly, replacing the value for n in the equation;
[tex]P = 17000 +( \dfrac{150}{n})[/tex] we can determine the value of P in Europe
i.e.
[tex]P_{E} = 17000 + (\dfrac{150}{4})[/tex]
= $17037.50
C)
S is worth $833 million in the United States and Europe combined.
i.e (300 million + 533 million).
Replacing the values for S, F, and C in equation (1);
By solving;
The estimated value of n for both the United States and Europe is n = 5
However, replacing the value for n in the equation below, we have:
[tex]P = 17000 + ( \dfrac{150}{n})[/tex]
[tex]P = 17000+(\dfrac{150}{5})[/tex]
= $17030
Thus, the new equilibrium price of automobiles = $17030
D) Automobile prices have dropped to $17,030 per vehicle for both countries as a result of free trade. As a result, after the exchange is opened, customers would have to pay a reduced amount for an automobile purchase. Not only that but after the exchange, customers in each country have a wider range of products to choose from.
The amount of brands in the United States has increased from three to five, while in Europe it has increased from four to five. As a result, trade benefits customers in both countries.
X Company uses determined that the net realizable value of its accounts receivable at December 31, 2018, based on an aging of the receivables, was $63,500. Additional information is as follows:
Allowance for doubtful account, 1/1/2018 $3,200 Uncollectible accounts written off during 2018 $650 Uncollectible accounts recovered during 2018 $300 Unadjusted accounts receivable at 12/31/2018 $67,200
For the year ended December 31, 2018, Ace's bad debt expense would be:_______.
Answer:
$850
Explanation:
Calculation to determine what Ace's bad debt expense would be:
First step is to calculate Ending Allowance for doubtful account
Ending Allowance for doubtful account=$67,200-$63,500
Ending Allowance for doubtful account=$3,700
Now let calculate what Ace's bad debt expense would be
Using this formula
Bad debt expense=[Ending Allowance for doubtful account-(Beginning Allowance for doubtful account-Uncollectible accounts written off+Uncollectible accounts recovered)]
Let plug in the formula
Bad debt expense=[$3,700-($3,200-$650+$300)]
Bad debt expense=$3,700-$2,850
Bad debt expense=$850
Therefore For the year ended December 31, 2018, Ace's bad debt expense would be:$850
Speedy Delivery Company purchases a delivery van for $32,000. Speedy estimates that at the end of its four-year service life, the van will be worth $6,000. During the four-year period, the company expects to drive the van 130,000 miles. Actual miles driven each year were 35,000 miles in year 1 and 38,000 miles in year 2.
Required:
Calculate annual depreciation for the first two years of the van using each of the following methods.
Answer:
(1) Straight-line.
Year 1 depreciation expense = $6,500
Year 2 depreciation expense = $6,500
(2) Double-declining-balance.
Year 1 depreciation expense = $16,000
Year 2 depreciation expense = $8,000
(3) Activity-based.
Year 1 depreciation expense = $7,000
Year 1 depreciation expense = $7,600
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Speedy Delivery Company purchases a delivery van for $32,000. Speedy estimates that at the end of its four-year service life, the van will be worth $6,000. During the four-year period, the company expects to drive the van 130,000 miles. Actual miles driven each year were 35,000 miles in year 1 and 38,000 miles in year 2.
Required:
Calculate annual depreciation for the first two years of the van using each of the following methods.
(1) Straight-line.
(2) Double-declining-balance.
(3) Activity-based.
The explanation of the answers is now given as follows:
(1) Straight-line.
Depreciable amount = Cost of the delivery van – Salvage value = $32,000 - $6,000 = $26,000
Annual depreciation rate = 1 / Number of useful years = 1 / 4 = 0.25, or 25%
Year 1 depreciation expense = Depreciable amount * Annual depreciation rate = $26,000 * 25% = $6,500
Year 2 depreciation expense = Depreciable amount * Annual depreciation rate = $26,000 * 25% = $6,500
(2) Double-declining-balance.
Note: The salvage value is taken care of in the computation of the depreciation expense for the last useful year under the double-declining-balance method.
Therefore, we have:
Cost of the delivery van = $32,000
Annual depreciation rate = Straight line annual depreciation rate * 2 = 25% * 2 = 50%
Year 1 depreciation expense = Cost of the delivery van * Annual depreciation rate = $32,000 * 50% = $16,000
Book value at the end of year 1 = Cost of the delivery van - Year 1 depreciation expense = $36,000 - $16,000 = $16,000
Year 2 depreciation expense = Book value at the end of year 1 * Annual depreciation rate = $16,000 * 50% = $8,000
(3) Activity-based.
Depreciable amount = Cost of the delivery van – Salvage value = $32,000 - $6,000 = $26,000
Depreciation rate = Actual miles driven each year / Expected driven miles for four years ……….. (1)
Depreciation expense for each year = Depreciable amount * Depreciation rate …………… (2)
Using equations (2), we have:
Year 1 depreciation expense = $26,000 * (35,000 / 130,000) = $7,000
Year 1 depreciation expense = $26,000 * (38,000 / 130,000) = $7,600
Which of these best describes the Federal
Reserve System?-
It is an independent agency that
supervises and manages the financial
system.
-It is an agency through which Congress
supervises and manages the financial
system.
-It is an agency through which the judiciary
supervises and manages the financial
system.
-It is an agency through which the
executive branch supervises and manages
the financial system.
Answer:
Option A
Explanation:
The Federal Reserve System was created by Congress in order to provide an independent agency to the nation that can deal with the national monetary and financial system. It is the central bank of US that make monetary policies to maximize employment and stabilize inflation and interest rates.
Hence, option A is correct
Max wanted to open a pizza and sub restaurant. He compared purchasing a well-known franchise to opening his own restaurant as a small business. Which of the following would be a disadvantage to the franchise option? • Max will be able to use the business model provided by the franchise. • Max will have many competitors that offer pizzas and similar Italian fast food. • Max will have to use his savings and borrow some money to start his business. • Max will have to use the franchise's pizza sauce instead of his family recipe
Answer:
Max will have to use his savings and borrow some money to start his business
Explanation:
Max will be able to employ the franchise's offered business plan.A marketing concept that can be used by an organization as a strategy for business expansion is franchising. Hence option B is correct .
What was Franchise ?Where applicable, a franchisor grants a franchisee a license to use all or part of its operational methods, intellectual property, business model, brand, and rights to market and sell its branded goods and services. In exchange, the franchisee agrees to pay certain fees and adhere to specific requirements, usually outlined in a franchise agreement.
The word "franchise" is Anglo-French in origin, deriving from the French verb "francer," which means "to be free." Instead than expanding through acquisition, the franchisor's utilization of a franchise system is an alternate corporate growth approach.
Chains of stores controlled by corporations. For the selling and distribution of goods and services, a franchise system business growth plan reduces the franchisor's capital investment and liability risk.
Particularly in the conventional structure where the franchisee is an individual, franchising is rarely an equal partnership.
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Faux Stamp company contemplating the acceptance of a special order has the following cost behavior, based on production of 10,000 units. The company is currently operating at 70% of its manufacturing capacity. A customer wants to purchase 2,000 units at a special unit price of $25. The normal price per unit is $50. Direct materials are $4 per unit, direct labor is $10 per unit, variable overhead is $8 per unit, and fixed overhead is $60,000 total. Perform an incremental analysis to determine the effect on net income if the special order is accepted, and decide whether management should accept the special order. What is the impact on net income if you accept the order?
Answer:
Management should accept the order because it increases net income by $6,000.
Explanation:
Giving the following information:
Number of units= 2,000
Unit selling price= $25
Direct material= $4
Direct labor= $10
Variable overhead= $8
Because it is a special order and there is unused capacity, we won't take into account the fixed costs.
To calculate the effect on income, we need to use the following formula:
Effect on income= number of units*unitary contribution margin
Effect on income= 2,000*(25 - 4 - 10 - 8)
Effect on income= $6,000 increase
Management should accept the order because it increases net income by $6,000.
Anna Conda purchased a new Toyota Tundra pickup truck for $45,000 and financed $41,000 with a 5 year, 3.5% loan. Following the format of the loan disclosure statement, answer the following question. What is the total of all of the loan payments made?
Answer:
Anna Conda
The total of all the loan payments made is
= $48,708.
Explanation:
a) Data and Calculations:
Cost of the new Toyota Tundra pickup truck = $45,000
Loan to finance the purchase of the truck = $41,000
Period of loan = 5 years
Interest rate on the loan for financing the purchase = 3.5%
Future Value Factor at 3.5% for 5 years from a FV table = 1.188
Future Value of the loan = $41,000 * 1.188 = $48,708
The total interest on the loan = $7,708 ($48,708 - $41,000)
Based on the available data, the total of all of the loan payments made would be:
$48,708.According to the given question, we need to find the total of all the loan payments which have been made by Anna Conda based on her purchase of a new Toyota Tundra and her repayment plan.
As a result of this, we can see that we would use the available data to make the necessary calculations which would be first listed out as:
Price of the truck= $45,000
Loan gotten= $41,000
Time duration of loan= 5 years
Interest rate= 3.5%
Future Value at 3.5% for 5 years would be= 1.19
Therefore, the FV of the loan would be $41,000 x 1.19 = $48,708
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uestion 31 Oriole Company has the following inventory data: July 1 Beginning inventory 114 units at $19 $2166 7 Purchases 399 units at $20 7980 22 Purchases 57 units at $22 1254 $11400 A physical count of merchandise inventory on July 30 reveals that there are 190 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is $3686. $3914. $7486. $7714.
Answer:
$7,714
Explanation:
The computation of the cost of good sold under LIFO method is shown below
But before that following calculations need to be done
Goods sold = Beginning inventory + Purchases - Ending inventory
= 114 + (399 + 57) - 190
= 380 units
Now 380 units sold would include 57 units of July 22 purchases and balance i.e. (380-57) 323 units of July 7 purchases
So, cost of goods sold
= (57 × 22) + (323 ×20)
= $7,714
Wings Co. budgeted $570,000 manufacturing direct wages, 3,000 direct labor hours, and had the following manufacturing overhead:
Overhead Cost Budgeted Budgeted Level for Overhead
Pool Overhead Cost Driver Cost Driver
Cost
Materials handling $188,000 4,700 pounds Weight of materials
Machine setup 21,600 540 setups Number of setups
Machine repair 1,260 31,500 machine
hours Machine hours
Inspections 12,400 310 inspections Number of inspections
Requirements for Job 971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours $15.000 machine hours
Inspections 15 inspections
1. Using ABC, overhead cost assigned to Job #971 for machine setup is:____.
a. $2,300.
b. $990.
c. $6,500.
d. $690.
e. $1,020 .
2. Using ABC, overhead cost assigned to Job #971 for machine repair is:____.
a. $2,300.
b. $990.
c. $6,500.
d. $690.
e. $1,020.
Answer:
Results are below.
Explanation:
First, we need to calculate the allocation rates:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setup= 21,600/540= $40 per setup
Machine repair= 1,260/31,500= $0.04 per machine hour
Now, we can allocate costs to Job 971:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Machine setup= 40*30= $1,200
Machine repair= 0.04*15,000= $600
Explain Business Management Definition
Answer:
The process of organization coordinations for business activities
Explanation:
Business Management Definition and Its Functions in the Company
Definition of business management. The word business management comes from two words, namely management and business.
Business management function. The main objective of business management is the effective use of various resources within...
The type of management needed in business. The function of business Cordiantions
Part of the screening process when choosing which markets to expand to involves gathering information on local markets. One way to gain information is by participating in trade fairs and trade missions. However, companies will often need additional information on markets that require further research. Collecting primary data in foreign markets can present some challenges in researchers especially because of cultural and technical differences between the markets. Identify whether each statement about the research process is most kikely to be associated with cuftural differences between markets or technical differences.
a. The meaning of words can change from one region to another.
b. Research instruments may need to be translated.
c. Social desirability bias may exist.
d. Street signs may be unreadable.
e. Mail service may be unreliable.
1. Cultural Differences
2. Technical Differences
Answer:
Cultural and Technical Differences Between Markets
a. Cultural
b. Cultural
c. Cultural
d. Technical
e. Technical
Explanation:
1. Cultural Differences: Cultural differences are the unique beliefs, behaviors, languages, practices, and expressions arising from differences in ethnic, racial, or national origins. For example, if the researcher is not versed in the local language, the research instruments or the researcher's answers will require translation.
2. Technical Differences: These differences arise from educational, legal, scientific, engineering, and business practice differences. For example, the "street signs may be unreadable" because there are no updated maps.
quarter of employees in the US do not trust their employers, and only about 50% of them believe that their bosses are open with them.
True
False
Universal Foods has a debt-to-value ratio of 36%, its debt is currently selling on a yield of 8%, and its cost of equity is 12%. The corporate tax rate is 40%. The company is now evaluating a new venture into home computer systems. The internal rate of return on this venture is estimated at 13.4%. WACCs of firms in the personal computer industry tend to average around 14%.
a. What is Universal's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
WACC
b. Will Universal make the correct decision if it discounts cash flows on the proposed venture at the firm's WACC?
A. Yes
B. No
c. Should the new project be pursued?
A. Yes
B. No
Answer:
A. 9.41%
B. No
C. No
Explanation:
a. Calculation to determine Universal's WACC
Using this formula
rEquity = (D / V) × (1 - Tc)rDebt + (E / V) × rEquity
Let plug in the formula
rEquity= 0.36× (1 - 0.40)(0.08) + (1 - 0.36) × 0.12
rEquity=0.36×(0.60)(0.08)+(0.64)×0.12
rEquity=(0.36×0.048)+0.0768
rEquity=0.01728+0.0768
rEquity=0.0941*100
rEquity=9.41%
Therefore Universal's WACC is 9.41%
b. No. Based on the above calculation the Universal would not make the correct decision if it discounts cash flows on the proposed venture at the firm's WACC reason been that it is above the company WACC.
c. No. The new project should not be pursued reason been that the INTERNAL RATE OF RETURN( IRR ) is lower than the required discount rate of 14% and it tend to have a negative NET PRESENT VALUE (NPV).
Using these data from the comparative balance sheet of Rollaird Company, perform horizontal analysis.
December 31, 2020 December 31, 2019
Accounts receivable $524,000 $400,000
Inventory 868,000 620,000
Total assets 3,018,600 2,580,000
Increase or (Decrease)
December 31, 2020 December 31, 2019 Amount Percentage
Accounts receivable $524,000 $400,000 $ %
Inventory 868,000 620,000 $ %
Total assets 3,018,600 2,580,000 $ %
Answer:
Increase
2020 - 2019 Amount Percentage
Accounts receivable 524,000 400,000 $124,000 31%
Inventory 868,000 620,000 $248,000 40%
Total Assets 3,018,600 2,580,000 $438,600 17%
Percentage increase:
Accounts receivable = 124,000 / 400,000 = 31%
Inventory = 248,000 / 620,000 = 40%
Total Assets = 438,600 / 2,580,000 = 17%
Identify which of the following statements are true for the corporate form of organization.
a. Shareholders are not personally liable for corporate acts.
b. The sale of shares from one stockholder to another does not impact operations.
c. An exception is when it changes the makeup or directors It has many of the same rights as an individual it does not end with the death of an owner.
d. Corporations are often subject to fewer regulations than partnerships
e. Stockholders are expected to hire and fire key executives.
f. The president and vice presidents choose the board of directors.
Answer:
?
Explanation:
The statements are true for the corporate form of organization is-
Shareholders are not personally liable for corporate acts.An exception is when it changes the makeup or directors It has many of the same rights as an individual it does not end with the death of an owner.The sale of shares from one stockholder to another does not impact operations.Corporations are often subject to fewer regulations than partnerships.Stockholders are expected to hire and fire key executives.What is the Importance of a corporate form of organization?A corporation protects its owners' personal assets from liabilities and improved opportunities for financial resources, expert management, continuity, and the ability to continue operating in the event of a death.
In comparison to partnerships, corporations frequently face fewer restrictions. Key executives should be hired and fired by stockholders. Corporate actions are not personally accountable to shareholders so their personal assets are protected.
Learn more about the corporate form of organization, here:
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Teal Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $3,420,000 on March 1, $2,280,000 on June 1, and $5,700,000 on December 31. Teal Company borrowed $1,900,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 5-year, $3,800,000 note payable and an 11%, 4-year, $6,650,000 note payable. Compute avoidable interest for Teal Company. Use the weighted-average interest rate for interest capitalization purposes
Answer:
$418,790
Explanation:
Computation for the avoidable interest for Teal Company using the weighted-average interest rate for interest capitalization purposes
First step is to calculate the Expenditure for the year
Expenditure for the year
Mar-01 $3,420,000*10/12=$2,850,000
Jun-01 $2,280,000 *7 12=$1,064,000
Dec-31 $5,700,000*0/ 12=$ -
Total $ 11,400,000 $3,914,000
Second step is to compute the Weighted Average rate of all debt
Weighted Average rate of all debt:-
$3,800,000*12%=$456,000
$6,650,000*11%=$731,500
Total $10,450,000 $1,187,500
Weighted Average rate of all debt=($1,187,500 / $10,450,000)
Weighted Average rate of all debt = 11.36%
Now let compute the avoidable interest
AVOIDABLE INTEREST
$3,914,000
Less:$1,900,000*10%=$190,000
Balance$ 2,014,000*11.36% =$228,790
($3,914,000-$1,900,000=$ 2,014,000)
Avoidable Interest =$418,790
($190,000+$228,790)
Therefore the avoidable interest for Teal Company using the weighted-average interest rate for interest capitalization purposes will be $418,790
The customer-service department at Park-E Bank complains it is unable to keep track of its new business clients as the department handling data compilation has failed to enable a free exchange of information between the two departments. This has hindered the customer-service department to follow up on its customers' queries and update their relationship status with the bank. This has also impacted the department's sales target. This scenario exemplifies conflict due to
Answer:
task interdependence
Explanation:
Task interdependence is a form of conflict that occurs when there is more than one department needed to complete a task, and when one of them fails, consequently the other is affected and the task is not completed effectively. This is the case of Park-E Bank, which complains that it is unable to keep up with its new commercial customers, as the department that deals with the compilation of data has failed to allow the free exchange of information between the two departments.
The interdependence of tasks is a conflict that affects organizational activities as a whole, and can bring essential problems for the correct flow of business, it is necessary then that there is a correct management, control and coordination of tasks to reduce the bottlenecks found in organizational processes and improve continuous improvement that is beneficial for all organizational systems to operate correctly.
Kier Company issued $700,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 4-year term to maturity. The bonds have a 6.50% stated rate of interest and interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1
Answer: Interest expense = $45500
Cash outflow = $45500
Explanation:
Based on the information that were given in the question, the amounts of interest expense and cash flows from operating activities, that will be reported in the financial statements for the year ending December 31, Year 1 will be calculated thus:
Interest expense = $700,000 × 6.50%
= $700,000 × 0.065
= $45500
The interest expense of $45500 will be reported on December 31, Year 1 in the income statement and will also be reported in the cash outflow as well. Therefore,
Interest expense = $45500
Cash outflow = $45500
Click this link to view O*NET’s Skills section for General and Operations Managers. Note that common skills are listed toward the top and less common skills are listed toward the bottom. According to O*NET, what are common skills needed by General and Operations Managers? Select four options.
speaking
critical thinking
active listening
computer repair
reading comprehension
equipment selection
Answer:
i got bcde
Explanation:
abce
Explanation:
Describing Skills for General and Operations Managers
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match each of the following transactions to the journal in which it would be entered.
Clear All
Revenue journal Cash receipts journal Purchases journal Cash payments journal General journal Recognized depreciation on the building Journalized the adjusting entry for supplies used during the period Closed the revenue account at the end of the period Received cash from the bank in exchange for a note payable Withdrew cash for personal use (by owner)
Answer:
Matching transactions to the journal in which they would be entered:
Transactions Journal Type
1. Recognized depreciation on the building General Journal
2. Journalized the adjusting entry for supplies
used during the period General Journal
3. Closed the revenue account at the end
of the period General Journal
4. Received cash from the bank in exchange
for a note payable Cash Receipts Journal
5. Withdrew cash for personal use (by owner) Cash Payments Journal
Explanation:
Revenue journal records revenue transactions.
Cash receipts journal records all cash receipts.
Purchases journal records all purchases on account.
Cash payments journal records all cash payments.
General journal is used for all transactions, especially those that cannot be recorded in any of the other specialized journals.