Answer:
Net Income 193,000
Non-monetary terms:
Depreciation expense 25,000
amortization expense 10,000
gain on disposal (7,000)
Adjusted Income 221,000
Change in Working Capital:
Increase in A/R (27,000)
Decreasein Inv 17,000
Increase in Prepaid (5,000)
Increase Accrued /P 11,000
Decreasein A/P (6,000)
Change In Working Capital (10,000)
From Operating Activities 211,000
Investing
Sale of Equipment 47,000
Financing
Bonds Issued 60,000
Cash Flow 318,000
Beginning Cash 99,000
Cash Flow 318,000
Ending Cash 417,000
Explanation:
We first remove the non.monetary concetps from the net income.
Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account
Increase in asset and decrease in liabilities represent cash outflow
while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)
Toward the end of the selection process, Eleanor is one of two final candidates. She meets with the company's executive vice-president in her third interview, and they spend most of the time discussing Eleanor's experiences working in different corporate cultures. This interview is likely a structured interview.A. TrueB. False
Answer:
The correct answer is the option A: True.
Explanation:
To begin with, the term of "structured interview" refers to the type of interview that is previously planned in order to already had the questions by the time the person comes to the interview, and therefore that it does not implicates to be doing questions at random. Moreover, it is used in order to gain time and to obtain the major amount of information about the person that the interviewer wants. That is why, that in this case is likely an structured interview due to the fact that the employeer already knew what he wanted to know about the person and therefore he is focus on having that information, in this case, previous experience work.
Assume that the full-employment level of output is $5000 billion and the natural unemployment rate is 5%. Suppose the current unemployment rate is 8%. What would be the current level of output according to Okun's law (when the Okun's law coefficient is 2)?
Answer:
$4700 Billion
Explanation:
Solution
Given that:
Assume that full-employment level of output is =$5000 billion
Natural employment rate is =5%
Current unemployment rate = 8%
Now,
We find the current level of output according to Okun's law when the Okun's law coefficient is 2 which is given below:
2 (unemployment rate -natural unemployment) = potential GDP - actual GDP/potential GDP *100% this is known as the Okun's law
Thus
2( 8 - 5 ) = 5000 - actual GDP / 5000 * 100
or (6 * 5000 ) / 100 = 5000 - actual GDP = $4700 Billion
or
300 = 5000 - actual GDP
Hence, the actual GDP or current output = 5000 - 300 = 4700 $ billion
The Fine Point Company currently produces all of the components for its one product, an electric pencil sharpener. The unit cost of manufacturing the motor for this pencil sharpener is: Direct materials$1.75 Direct labor$1.65 Variable overhead$0.75 Fixed overhead$0.60 The company is considering the possibility of buying this motor from a subcontractor and has been quoted a price of $3.60 per unit. The relevant cost of manufacturing the motor to be considered in reaching the decision is:
Answer:
$4.15 per unit
Explanation:
The computation of the relevant cost of manufacturing the motor is shown below:
Relevant cost per unit = Direct material per unit + direct labor per unit + variable overhead per unit
= $1.75 + $1.65 + $0.75
= $4.15 per unit
For reaching the decision, we simply added the direct material per unit, direct labor per unit and variable overhead per unit so that the correct answer could arrive
Suppose you have a linear integer optimization problem. You solve the problem as a linear optimization problem by ignoring the integer constraints and obtain an integer optimal solution (i.e., your model did not require the variables to be integer, but it turned out when you solved the problem Solver found an optimal answer where the variables are integer).
Which of the statements below are correct (choose only one):
A. You can categorically state that you have the optimal solution to the integer optimization problem.
B. You can categorically state that you do not have the optimal solution to the integer optimization problem.
C. None of the above.
Answer:
Option(A) is the correct answer to the given question .
Explanation:
The integer programming problem is also known as the computational optimization or the functionality method that main objective to limits the some or many of the parameters may be integer. The objective of linear optimization problem to make the objective function as well as integer constraints linear .
The integer programming problem conclusively specify of the optimised solution to the issue of the integral optimisation.All the other option are not correct for the linear integer optimization problem because they are not give objective function as well as integer constraints as linear .Using these data from the comparative balance sheet of Ramirez Company, perform horizontal analysis.
Dec. 31, 2014 Dec. 31, 2013 Amount Percentage
Accounts receivable $535,000 $450,000 _______ _________
Inventory $792,000 $606,000 _______ _______
Total assets $3,138,000 $2,707,000 _______ _______
Answer:
Ramirez Company comparative balance sheet
2014 2013
Particulars Amount Percent Amount Percent
Accounts receivable 535,000 17.05% 450,000 16.62%
Inventory 792,000 25.24% 606,000 22.39%
Other Assets 1,811,000 57.71% 1,651,000 60.99%
Total assets 3,138,000 100% 2,707,000 100%
2014 Workings
Account receivables= 535,000 / 3,138,000 * 100 = 17.05%
Inventory= 792,000 / 3,138,000 * 100 =25.24%
Other Assets= 1,811,000 / 3,138,000 * 100 = 57.71%
2013 Workings
Account receivables= 450,000/2,707,000 * 100= 16.62%
Inventory=606,000/2,707,000 * 100= 22.39%
Other Assets=1,651,000/2,707,000 * 100= 60.99%
In a closed system one kilogram of carbon dioxide (CO_2) is expanded reversibly from 30 degree C and 200 kPa to 100 kPa pressure. If the expansion is polytropic with n = 1.27, determine the total work, the change in total internal energy, and the total heat transferred in [kJ], Note that for CO_2, R = 188.9 J/kg.K and c_v = 655 J/kg.K. W = -29.05 kJ, DeltaU = -27.19 kJ, Q = 1.860 kJ
Answer:
the total work W = 29.05 kJ
the change in total internal energy is [tex]\mathbf{\Delta U = - 27.19 \ kJ}[/tex]
the total heat transferred in [kJ] is Q = 1.860 kJ
Explanation:
Given that
mass of carbon dioxide in the closed system = 1 kg
Temperature [tex]T_1= 30 ^0 C[/tex] = (273+30 ) K = 303 K
Pressure [tex]P_1 = \ 200 \ kPa[/tex]
Pressure [tex]P_2 = 100 \ kPa[/tex]
polytropic expansion n = 1.27
Note that we are also given the following data set:
R = 188.9 J/kg.K
c_v = 655 J/kg.K
So; for a polytropic process ; [tex]PV^{1.27} = c[/tex]
[tex]\dfrac{T_2}{T_1}= ( \dfrac{V_1}{V_2})^{n-1} = (\dfrac{P_2}{P_1})^{\frac{n-1}{n}[/tex]
[tex]T_2 = T_1 [\dfrac{P_2}{P_1}]^{\frac{n-1}{n}[/tex]
[tex]T_2 = 303 [\dfrac{100}{200}]^{\frac{1.27-1}{1.27}[/tex]
[tex]T_2 = 261.48 \ K[/tex]
Since the system does not follow the first order of thermodynamics; To calculate the total work by using the expression:
[tex]W = \dfrac{P_1V_1-P_2V_2}{n-1} = \dfrac{mR(T_1-T_2)}{n-1}[/tex]
[tex]W = \dfrac{1*188.9(303-261.48)}{1.27-1}[/tex]
W = 29048.62222 J
W = 29.05 kJ
Thus, the total work W = 29.05 kJ
The change in internal energy can be expressed by the formula:
[tex]\Delta U = mc_v (T_2-T_1)[/tex]
[tex]\Delta U = 1*655(261.48-303)[/tex]
[tex]\Delta U = -27195.6 \ J[/tex]
[tex]\mathbf{\Delta U = - 27.19 \ kJ}[/tex]
Hence; the change in total internal energy is [tex]\mathbf{\Delta U = - 27.19 \ kJ}[/tex]
Finally; to determine the total heat transferred in [kJ]; we go by the expression for the first order of thermodynamics which say:
Total Heat Q = ΔU + W
Q = (-27.19 + 29.05)kJ
Q = 1.860 kJ
Hence; the total heat transferred in [kJ] is Q = 1.860 kJ
Consider the following 2011 data for Newark General Hospital (in millions of dollars):__________.
Static Flexible Actual
Budget Budget Results
Revenues $4.7 $4.8 $4.5
Costs 4.1 4.1 4.2
Profits 0.6 0.7 0.3
Calculate and interpret the profit variance.
=Actual profit-Static profit
=$0.3-$0.6
=-$0.3
There is an unfavorable profit variance which means that the company earned less that it prepared for.
Calculate and interpret the revenue variance.
=Actual revenues-Static Revenues
=$4.5-$4.7
=-$0.2
There is an unfavorable revenue variance, because the company sold less than it planned for.
Calculate and interpret the cost variance.
=Static Cost-Actual Cost
=4.1-4.2
=-$0.1
There is an unfavorable cost variance, this means that the company spent more than it planned for.
Calculate and interpret the volume and price variances on the revenue side.
Volume variance=Flexible Revenue-Static Revenue
=$4.8-$4.7=$0.1
Favorable because the company sold more units than it planned for.
Price variance=Actual Revenues-Flexible Revenues
=$4.5-$4.8=-$0.3
The answer is unfavorable because the company sold it products at a lower price than plan which might have actually resulted to the increase in actual volume sold.
Calculate and interpret the volume and management variances on the cost side.
Volume variance=Static cost –Actual Cost
=$4.1-$4.1=$0
Favorable which means that regardless of the fact that the company sold more units, the company produce the same number of units it plan for.
Management variance=Flexible Cost –Actual Costs
=$4.1-$4.2=$0.1
This is unfavorable which means maybe as a result of the higher units sold, the company had to spend more in servicing these units resulting to cost inefficiency for the period.
How are the variances calculated above related?
The above variances are associated, as the increase in volume, should increase the revenue and cost proportionality. However, it has not increased in the same portion. Therefore, there are unfavorable variances.
Answer:
Calculate and interpret the profit variance.
profit variance = actual profit - budgeted profit = $0.3 - $0.7 = -$0.4 U
The profit variance is unfavorable because actual profit was lower than the budgeted profit. Whenever we have a static and a flexible budget, we must use the flexible budget to calculate the variances. Not only revenues were lower than expected, but also costs were higher than expected.
Calculate and interpret the revenue variance.
revenue variance = actual revenue - budgeted revenue = $4.5 - $4,8 = -$0.3 U
The revenue variance is unfavorable because revenue was lower than expected. This means that they either had less patients or charged less per patient.
Calculate and interpret the cost variance.
cost variance = actual costs - budgeted costs = $4.2 - $4,1 = $0.1 U
When we analyze costs variances, positive numbers represent unfavorable variances because actual costs were larger than budgeted. It is the opposite to what happens with revenue and profit variances.
In this case, actual costs were larger than expected, which means that the hospital spent more money than budgeted.
Calculate and interpret the volume and price variances on the revenue side.
volume variance = flexible revenue - static revenue = $4.8 - $4.7 = $0.1 F
the flexible budget shows higher numbers because the number of patients was higher than expected.
price variance = actual revenue - flexible revenue = $4.5 - $4.8 = -$0.3 U
even though the volume variance was favorable, more patients, the price charged was lower than expected because total revenue was lower than the flexible revenue.
Calculate and interpret the volume and management variances on the cost side.
volume variance (cost) = actual costs - budgeted costs = $4.2 - $4.1 = $0.1 U
When cost variances are positive, they are unfavorable because expenses were higher than expected. This means that the hospital spent more money than they had planned for carrying out the same amount of procedures.
management variance = actual costs - budgeted costs = $4.2 - $4.1 = $0.1 U
Since costs were higher than expected, this means that the hospital's management didn't perform properly. In this case, all variances show that management didn't work well. Revenues were lower than expected, costs were higher than expected and profits were lower. They should be glad that this is just a question, in real life they would be in serious problems for poor performance.
Explanation:
Static Flexible Actual
Budget Budget Results
Revenues $4.7 $4.8 $4.5
Costs $4.1 $4.1 $4.2
Profits $0.6 $0.7 $0.3
Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the Uniform Electronic Transactions Act (UETA), Relay's acceptance by e-mail will be considered effective when:
a. received
b. sent
c. followed up by a confirmation letter
d. sent by regular mail
According to the condition, of the Uniform Electronic Transactions Act (UETA), Relay's acceptance by e-mail will be considered effective when sent. Thus, the correct option is (B).
You can create, transmit, and receive information rapidly, and the users of your account may access information quickly, frequently mass-texting a large number of individuals at once.
The process of sending an email is immediate, but the writer should not anticipate an instant response.
Many people only manage their email during regular work hours since it is an essential component of their profession.
Therefore, the correct option is "B".
To know more about the e-mail, visit:
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Maxxie purchased a tract of land for $24,500. Today, the same land is worth $43,800. How many years have passed if the price of the land has increased at an annual rate of 6.4 percent
Answer:
9.35 years
Explanation:
To find the numbers of years that have passed, you can use the following formula:
n = ln(FV / IV)/ln(1 + r)
n= number of periods
FV= Future value= $43,800
IV= Initial value= $24,500
r= rate= 6.4%
n=ln(43,800/24,500)/ln(1+0.064)
n= ln1.79/ln1.064
n=0.58/0.062
n= 9.35
According to this, 9.35 years have passed.
The expected average rate of return for a proposed investment of $800,000 in a fixed asset with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $360,000 for the four years is
Answer:
22.5%
Explanation:
For computation of return on investment first we need to find out the average investment and average income per year which is shown below:-
Average investment = Proposed investment ÷ Average
= $800,000 ÷ 2
= $400,000
Now, the Average income per year = Expected total net income ÷ Number of year
= $360,000 ÷ 4
= $90,000
Return on investment = Average income per year ÷ Average investment
= $90,000 ÷ $400,000
= 0.225
or
= 22.5%
Suppose that the last four months of sales were 8, 10, 15, and 9 units, respectively. Suppose further that the last four forecasts were 5, 6, 11, and 12 units, respectively. What is the Mean Absolute Deviation (MAD) of this forecasting period?
A. 2
B. -10
C. 5.5
D. 9
E. 10.5
Answer:
-25.5
Explanation:
First, we find the Mean
= 5+6+11+12=34
Absolute mean value= (5-34) + (6-34) + (11-34) + (12-34) = -102/4=-25.5
Bob Clarke Corporation has provided the following data from its activity-based costing system: Activities Estimated Overhead Cost Expected Activity Assembly $1,005,040 68,000 machine-hours Processing orders $102,500 2,000 orders Inspection $139,840 1,900 inspection-hours The company makes 450 hockey sticks a year, requiring a total of 710 machine-hours, 42 orders, and 12 inspection-hours per year. The product's direct materials cost is $36.42 per hockey stick and its direct labor cost is $30.16 per hockey stick. Required: 1. Calculate the unit product cost of one hockey stick according to the activity-based costing system (Round your final answer to two decimal places).
Answer:
Total Unit Cost= $ 96.65
Explanation:
Bob Clarke Corporation
Activities Estimated Overhead Cost Expected Activity
Assembly $1,005,040 68,000 machine-hours
Processing orders $102,500 2,000 orders
Inspection $139,840 1,900 inspection-hours
First we find the overhead rates using ABC costing method.
Overhead Rates= Estimated Overhead Cost/ Expected Activity
Assembly Rate= $1,005,040 /68,000 = $ 14.78 per machine-hours
Processing rate= $102,500 / 2,000= $ 51.25 per orders
Inspection Rate= $139,840/ 1,900= $ 73.6 per inspection-hours
Then we find the overhead costs applying the ABC Costing rates
Overhead Costs Of 450 Hockey
Assembly= 710 machine-hours, * $ 14.78= $10493.8
Processing=42 orders, *$ 51.25= $ 2152.5
Inspection= 12 inspection-hours*$ 73.6 = $ 883.2
Total Overhead Costs of 450 Hockey = $ 13529.5
Overhead Cost of One Hockey= 13529.5/450= 30.065= $ 30.07
Then the:
Product Cost
Direct materials cost is $36.42 per hockey stick
Direct labor cost is $30.16 per hockey stick
Overhead Costs is $ 30.07
Total Unit Cost= $ 96.65
Peter Plaintiff’s son is killed while working overseas for a United States corporation that deals in proprietary petroleum extraction and production. Peter Plaintiff brings a wrongful death lawsuit on behalf of his son’s estate against this corporation and requests a wide scope of business documents related to the corporation and its overseas operations under the Freedom of Information Act (FOIA). What defenses, if any, does the corporation have against revealing the requested information under the FOIA?
Answer and Explanation:
The defenses or protections the business has been against releasing the relevant documents underneath the FOIA include whether Peter Plaintiff's required documentation is private and confidential as well as the business is not allowed to release this detail to anyone outside the organization.Because the statement is available nondisclosure, the company has to safeguard and defend this relevant data, and therefore not start sharing it with someone outside the establishment.Aston, a tenant in Jackie's apartment, had repeatedly complained about the leaky faucets in the apartment. However, Jackie was not interested in doing anything about it. Under the landlord and tenant law, what remedies did Aston have?
a. To terminate the lease, then seek damages or rent adjustment.
b. To seek constructive eviction.
c. To obtain a court order for quiet enjoyment.
d. To obtain the doctrine of caveat emptor under the common law.
e. None, because she was on a periodical tenancy.
Answer:
a. To terminate the lease, then seek damages or rent adjustment.
Explanation:
when a landlord breaches his/her duties, the tenant has three available remedies:
terminationdamages rent adjustmentGenerally when things like this happen, the tenant will terminate the contract and in order to do so must leave the premises and notify the landlord that he/she is doing so and the reasons why. Then the tenant can seek compensation for damages caused by the landlord's breach of duties. Damages are generally limited to relocation costs, e.g. costs of finding a new apartment and moving there.
If Aston decided to stay at the apartment, he could seek to fix the plumbing issues and seek compensation from the landlord.
Out of the possible options, option a is correct.
uppose McKnight Corp.'s breakeven point is revenues of $ 1 comma 100 comma 000. Fixed costs are $ 660 comma 000. Requirements 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $16 per unit. 3. Suppose 65 comma 000 units are sold. Compute the margin of safety in units and dollars. 4. What does this tell you about the risk of McKnight making a loss? What are the most likely reasons for this risk to increase?
Answer:
1. Compute the contribution margin percentage.
40%2. Compute the selling price if variable costs are $16 per unit.
$26.673. Suppose 65 comma 000 units are sold. Compute the margin of safety in units and dollars.
margin of safety in $ = $633,550margin of safety in % = 36.55%4. What does this tell you about the risk of McKnight making a loss? What are the most likely reasons for this risk to increase?
Since the contribution margin is relatively high, this means that the production costs are relatively low (compared to selling price). The associated risks may come from high leverage, e.g. machinery purchased on credit that results in high interest expense. For the most part, having a high contribution margin is generally very good, just ask Apple.Explanation:
break even point is $ = $1,100,000 (= break even point units x selling price)
fixed costs = $660,000
contribution margin % = (total sales - total variable costs) / total sales
total variable costs = $1,100,000 - $660,000 = $440,000
contribution margin % = ($1,100,000 - $660,000) / $1,100,000 = 40%
variable costs = $16 per unit
0.4 = (x - $16) / x
0.4x = x - $16
$16 = 0.6x
x = $26.67
65,000 x $26.67 = $1,733,550
margin of safety in $ = $1,733,550 - $1,100,000 = $633,550
margin of safety in % = $633,550 / $1,733,550 = 36.55%
Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% return on invested assets of $700,000. Fixed factory overhead cost $38,700 Fixed selling and administrative costs 7,500 Variable direct materials cost per unit 4.60 Variable direct labor cost per unit 1.88 Variable factory overhead cost per unit 1.13 Variable selling and administrative cost per unit 4.50 The markup percentage on total cost for Magpie's product is
Answer:
Mark-up =22.64%
Explanation:
Profit = Return on Investment (%) × assets\
Profit = 25% × 700,000 = 175,000
Total variable cost = (4.60+ 1.88+ 1.13+ 4.50 )× 60,000= 726600
Total cost = Total variable cost + total fixed cost
= 726600 + 38,700+ 7,500= 772800
Mark-up = profit/cost × 100
= 175,000/726,600 × 100 = 22.64%
Mark-up =22.64%
Ma Barker Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $100,000 and 40,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $5,000 in direct materials and $2,400 in direct labor. The labor rate is $6 per hour. If Job #334 contained 200 units, the unit product cost on the completed job cost sheet would be:___________.
a) $42.00
b) $39.50
c) $41.90
d) $37.00
Answer:
The correct answer is option (A) $42.00
Explanation:
Solution
Given that:
The established rate is given as = 100,000/40,000
= $2.5 per hour
Thus
The cost of the job is shown is shown below:
The direct material = $5,000
The direct labor = $2400
Then
The manufacturing overheard is = 400 * 2.5 = $1,000
So,
The total cost is = $5,000 + $2400 + $1000 = $8,400
To get our unit cost,
Unit cost = $8400/200 = $42.00
It is important to know that, the number of labor hours used in jobs = Total labor cost/Rate per hour
=2,400/6 = 400 hours
CalculatorPrint Item On October 1, Black Company receives a 6% interest-bearing note from Reese Company to settle a $15,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a.$225 b.$235 c.$232 d.$222
Answer:
Option A, $225 is correct
Explanation:
The interest revenue=face value of the note*interest rate*3/12
Three months of interest revenue is due from October 1st till December 31st.
The interest revenue that Black company would recognize =$15,000*6%*3/12=$225
The correct option is A,$225 amount of interest revenue would be recorded by Black Company in the year by debiting interest receivable(pending the maturity of the note) and crediting interest revenue
In the airline industry, frequent flyer programs, ticket kiosks, and e-ticketing are all examples of capabilities that are __________ but no longer __________. a. valuable; rare b. rare; valuable c. valuable; causally ambiguous d. socially complex; rare
Answer:
a. valuable; rare
Explanation:
There are various examples of capabilities like
1. Frequent flyer programs are nothing but while booking an online flight you just need to sign up so that the chances of earning reward points could be high
2. The ticket kiosks refer to the self service in which you can purchase the tickets related to the entertainment
3. E-ticketing is online ticketing which you can store online instead of keeping it with you in a paper form
These are valuable examples but there are no longer rare
Hence, the first option is correct
You own shares in Yahoo that were purchased at a price of $ 24 per share. Microsoft has offered to purchase Yahoo and buy your shares at a price of $ 34 per share. What will be your return if you tender your shares to Microsoft and the deal is completed
Answer:
Return = 41.67%
Explanation
The return on a share is the sum of e capital gains and the dividend received all expressed as a percentage of the of the amount invested.
In the absence of the payment of dividend, the return
Return = capital gain/ Price of share × 100
Capital gain= Price of shares now - cost of shares
Capital gain = 34- 24 = 10
Return = 10/24 × 100 = 41.66666667
Return (%) = 41.67%
Atkinson Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 2016, Atkinson budgets 2017 assembly-support costs to be $8,800,000 and 2017 direct labor-hours to be 220,000.At the end of 2017, Atkinson is comparing the costs of several jobs that were started and completed in 2017.Laguna Model Mission ModelConstruction period Feb-June 2017 May-0ct 2017Direct material costs $106,550 $127,450Direct labor costs $ 36,250 $41,130Direct labor-hours 970 1,000Direct materials and direct labor are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labor-hours are worked. The 2017 actual assembly-support costs were $8,400,000, and the actual direct labor-hours were 200,000.Required:1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ?2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b) actual costing?3. Why might Atkinson Construction prefer normal costing over actual costing?
Answer:
1. Compute the
(a) budgeted indirect-cost rate
$40 per labor hour
and (b) actual indirect-cost rate.
$42 per labor hour
Why do they differ?
Because total assembly support costs and labor hours were different.They both were actually lower than expected, but the labor hours were 9% lower while the costs were around 5% lower. That is why the actual rate increased (denominator decreased more than numerator).
2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing
Laguna Model Mission Model
assembly-support cost $38,800 $40,000
and (b) actual costing?
Laguna Model Mission Model
assembly-support cost $40,7400 $42,000
3. Why might Atkinson Construction prefer normal costing over actual costing?
The problem with actual costing is that they cannot be budgeted, you can only budget normal costing. Any business has to prepare budgets in order to control how their operations are being carried out and then they need to adjust them to the actual costs incurred.
Explanation:
Laguna Model Mission Model
Construction period Feb-June 2017 May-0ct 2017
Direct material costs $106,550 $127,450
Direct labor costs $36,250 $41,130
Direct labor-hours 970 1,000
budgeted indirect cost rate:
assembly-support costs $8,800,000
direct labor-hours 220,000
budgeted assembly-support cost per labor hour = $8,800,000 / 220,000 = $40 per hour
Laguna Model Mission Model
assembly-support cost $38,800 $40,000
actual indirect cost rate:
assembly-support costs $8,400,000
direct labor-hours 200,000
actual assembly-support cost per labor hour = $8,400,000 / 200,000 = $42 per hour
Laguna Model Mission Model
assembly-support cost $40,7400 $42,000
Discuss silence is golden in relation to ethics at the work place
Answer:
Silence is a golden virtue and it involves more of listening than speaking .It is required under certain circumstances and environment. It is always advisable to remain quite silent and not be too quick to respond to situations or issues so as to avoid making and saying wrong words.
The ethics in a workplace involves communicating with others with less amount of talking as possible and more of body languages and signs. This is because the workplace is meant to be a serene place. Lack of serenity can cause distractions and Lower the productivity of the workers.
Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $880. Selected data for the company’s operations last year follow:Units in beginning inventory 0Units produced 280Units sold 240Units in ending inventory 40Variable costs per unit: Direct materials $ 115 Direct labor $ 335 Variable manufacturing overhead $ 35 Variable selling and administrative $ 25 Fixed costs: Fixed manufacturing overhead $ 63,000 Fixed selling and administrative $ 23,000 The absorption costing income statement prepared by the company’s accountant for last year appears below:Sales $ 211,200Cost of goods sold 170,400Gross margin 40,800Selling and administrative expense 29,000Net operating income $ 11,800Required:Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.
Answer:
Fixed manufacturing cost allocated to inventory= $9,000
Explanation:
Giving the following information:
Units in beginning inventory 0
Units produced 280
Units sold 240
Units in ending inventory 40
Fixed manufacturing overhead $63,000
The absorption costing method includes all costs related to production, both fixed and variable.
First, we need to calculate the unitary fixed manufacturing cost:
unitary fixed manufacturing cost= 63,000/280= $225
Fixed manufacturing cost allocated to inventory= 40*225=$9,000
Kinds of managers
An example of a position that a team leader would hold is:_______
a. vice president.
b. department manager.
c. group facilitator.
d. divisional manager
Using your knowledge of the different levels of management in organizations, indicate whether each statement is most likely to apply to first-level, middle-level, or top-level managers.
Answer:
Option C
group facilitator.
Explanation:
A team leader would most likely be a group facilitator. This is because a team is usually a small unit assigned with the task of achieving a specific goal. Most of the time, teams are given small and well defined tasks which are not usually as complex as that of the whole organization.
A team leader would be a group facilitator because he is expected to coordinate the efforts of a small group of people to achieve a set goal. His scope of authority and influence is only limited to that of the group.
Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations:Selling price $123Units in beginning inventory 0Units produced 6,400Units sold 6,100Units in ending inventory 300Variable costs per unit: Direct materials $45 Direct labor $30 Variable manufacturing overhead $1 Variable selling and administrative $8Fixed costs: Fixed manufacturing overhead $140,800Fixed selling and administrative $91,500What is the net operating income for the month under variable costing?a) $12,200b) ($17,200)c) $5,600d) $6,600
Answer:
Instructions are below.
Explanation:
Giving the following information:
Selling price= $123
Units sold= 6,100
Variable costs per unit:
Direct materials $45
Direct labor $30
Variable manufacturing overhead $1
Variable selling and administrative $8
Fixed costs:
Fixed manufacturing overhead $140,800
Fixed selling and administrative $91,500
First, we need to calculate the total variable cost per unit:
Variable cost per unit= 45 + 30 + 1 + 8= $84
Income statement:
Sales= 6,100*123= 750,300
Total variable cost= 6,100*84= (512,400)
Contribution margin= 237,900
Fixed manufacturing overhead= (140,800)
Fixed selling and administrative= (91,500)
Net operating income= 5,600
A 22-year old, unmarried, new customer contacts you, explaining that he just inherited $10,000,000 and wishes to invest the money aggressively to produce superior returns. He is risk-tolerant and understands the use of leverage and shorting as ways of enhancing returns. For this client, the best recommendation would be a: A hedge fund B fund of hedge funds C growth fund D value fund
Answer:
B fund of hedge funds
Explanation:
The motive of the investor is to maximizing the return and minimizing the risk
The hedge fund refers to that fund in which the portfolio of investment is protected from the uncertainty of the market and at the same time it also generates the positive return when the market is at recession or in boom period
While on the other hand, the fund of the hedge fund is a portfolio or mix of hedge funds shares in which it is applied to any type of investment fund
According to the given situation, the new customers invest his money to generate high returns moreover he is also risk tolerant and finds the number of ways for enhancing the returns so for this situation, the best option fit is option B.
Adjustment for Unearned Revenue
On June 1, 20Y2, Herbal Co. received $41,250 for the rent of land for 12 months.
Journalize the adjusting entry required for unearned rent on December 31, 20Y2.
Set up an Unearned Fees T-account. Recall that the unearned revenue account is decreased (debited) for the amount of the revenue that has been earned, and the related revenue account is increased (credited). The balance before adjustment will be the normal balance for the unearned liability account. The number given for the end of the year is to be the new balance after adjusting out the revenue earned. What amount is this difference between the pre-adjustment balance and the post-adjustment balance?
Answer:
oshe mush have been out of her head
Explanation:
0she lost her dog in the microwave
Chang Industries has 1,200 defective units of product that have already cost $13.20 each to produce. A salvage company will purchase the defective units as they are for $4.20 each. Chang's production manager reports that the defects can be corrected for $6.80 per unit, enabling them to be sold at their regular market price of $19.40. The incremental income or loss on reworking the units is: Multiple Choice $18,240 income. $10,080 loss. $8,160 loss. $15,120 income. $10,080 income.
Answer:
$10,080 income
Explanation:
The computation of incremental income or loss on reworking the units is shown below:-
Incremental income on reworking unit = Sales after reworking - Sales to salvage company - Incremental cost
= (1,200 × $19.40) - (1,200 × $4.20) - (1,200 × $6.80)
= $23,280 - $5,040 - $8,160
= $10,080 income
Therefore for computing the Incremental income on reworking unit we simply applied the above formula.
Murphy Printers (MP) manufactures printers. Assume that MP recently paid $ 500 comma 000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only eight years.
Requirements
1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year.
2. After using the patent for four years, MP learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new information, MP decides, starting with year 5, to amortize the remaining cost of the patent over two remaining years, giving the patent a total useful life of six years. Record amortization for year 5.
Answer: The answer is given below
Explanation:
1. The journal entries to record the purchase of the patent and the amortization for the first full year has been solved and attached.
2. The amortization expense of he 4 years will be:
= $62500 × 4
= $250,000
Therefore, the book value of the patent will be:
= Cost of the patent - amortization expense
= 500,000 - 250,000
= $250,000
Amortization for year 5 = Book value/Estimated useful life remaining
= 250,000/2
= $125,000
The journal for the amortization expense for year 5 has been attached
At the beginning of the month, Arthur's Olde Consulting Corporation had two jobs in process that had the following costs assigned from previous months:
Job Number Direct Labor Applied Overhead
SY-400 $ 23,790 ?
SY-403 15,870 ?
During the month, Jobs SY-400 and SY-403 were completed but not billed to customers. The completion costs for SY-400 required $26,700 in direct labor. For SY-403, $79,500 in labor was used.
During the month, the only new job, SY-404, was started but not finished. Total direct labor costs for all jobs amounted to $150,570 for the month. Overhead in this company refers to the cost of work that is not directly traced to particular jobs, including copying, printing, and travel costs to meet with clients. Overhead is applied at a rate of 70 percent of direct labor costs for this and previous periods. Actual overhead for the month was $107,600.
Required:
(a) What are the costs of Jobs SY-400 and SY-403 at the beginning of the month and when completed?
(b) What is the cost of Job SY-404 at the end of the month?
(c) How much was under- or overapplied service overhead for the month?
Answer:
Cost at the beginning:
Cost of SY-400 $40,443.00
Cost SY-403 $ 26,979.00
Cost at month end:
Cost of SY-400 $85,833.00
Cost of SY-403 $162,129.00
Cost of SY-404 $75429
Overhead was under-applied by $2,201.00
Explanation:
At the beginning of the month costs of jobs SY-400 and SY-403 are the direct labor costs incurred already plus 70% of the direct labor cost as overhead applied:
Cost of SY-400=$23,790+($23,790*70%)=$40,443.00
Cost SY-403=$15,870+($15,870*70%) =$ 26,979.00
Costs at the end of the month would be cost at the beginning plus new direct labor cost incurred as well as the overhead on the new direct labor cost:
Cost of SY-400=$40,443.00+$26,700+($26,700*70%)=$85,833.00
Cost of SY-403=$ 26,979.00+$79500+(70%*$79500)=$162,129.00
Direct labor cost of SY-404=$150,570- $26,700-$79,500=$44370
Cost of SY-404=$44370+(70%*$44370)=$75429
Actual overhead is $107,600
Overhead applied=(70%*$44370)+(70%*$79500)+($26,700*70%)=$105,399.00
Under-applied overhead=$107,600-$105,399=$2,201.00
a) The cost of Jobs SY-400 and SY-403 at the beginning of the month and on completion are:
SY-400 SY=403
Beginning costs $40,443 $26,979
Total costs $85,833 $162,129
b) The cost of Job SY-404 at the end of the month is $75,429.
c) The Service Overhead for the month was underapplied by $2,201.
Data and Calculations:
Job Number Direct Labor Applied Overhead Total Costs
SY-400 $ 23,790 ? = $16,653 ($23,790 x 70%) $40,443
SY-403 15,870 ? = $11,109 ($15,870 x 70%) $26,979
SY-400 SY=403 SY404 Total Costs
Beginning costs $40,443 $26,979 $0 $67,422
Direct labor 26,700 79,500 $44,370 $150,570
Overhead applied 18,690 55,650 31,059 105,399
Total costs $85,833 $162,129 $75,429 $323,391
Overhead applied = $105,399
Actual overhead $107,600
Underapplied o/h = $2,201
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