Answer: See explanation
Explanation:
Absolute advantage simply means when an economic entity such as individuals or the firms can produce a particular good more efficiently than others who produce similar good. In this case, a larger quantity is produced when compared to others.
Comparative advantage is when an economic agent can actually produce goods at an opportunity cost that's lower than the opportunity cost of its competitors. Due to this, such economic agent can sell its good at a cheaper price than others and therefore make more revenue.
Assume the following adjustment data.
1. Supplies on hand at October 31 total $500.
2. Expired insurance for the month is $100.
3. Depreciation for the month is $75.
4. As of October 31, services worth $800 related to the previously recorded unearned revenue had been performed.
5. Services performed but unbilled (and no receivable has been recorded) at October 31 are $280.
6. Interest expense accrued at October 31 is $70.
7. Accrued salaries at October 31 are $1,400.
Prepare the adjusting entries for the items above.
Answer:
1.Dr Supplies Expense $2,000
Cr Supplies $2,000
2. Dr Insurance Expense $100
Cr Prepaid Insurance $100
3. Dr Depreciation Expense $75
Cr Accumulated Depreciation- Equipment $75
4. Dr Unearned Service Revenue $800
Cr Service Revenue $800
5. Dr Accounts Receivable $280
Cr Service Revenue $280
6. Dr Interest Expense $70
Cr Interest Payable $70
7. Dr Salaries & Wages Expense $1,400
Cr Salaries & Wages Payable $1,400
Explanation:
Preparation of the adjusting entries
1. Dr Supplies Expense $2,000
Cr Supplies $2,000
[$2,500 - $500]
2. Dr Insurance Expense $100
Cr Prepaid Insurance $100
3. Dr Depreciation Expense $75
Cr Accumulated Depreciation- Equipment $75
4. Dr Unearned Service Revenue $800
Cr Service Revenue $800
5. Dr Accounts Receivable $280
Cr Service Revenue $280
6. Dr Interest Expense $70
Cr Interest Payable $70
7. Dr Salaries & Wages Expense $1,400
Cr Salaries & Wages Payable $1,400
. The equality of MR and MC is essential for profit maximization in all market structures because if multiple choice 1 MR and MC are equal, economic profits will be zero. MR is less than MC, producing more will increase profits. MR and MC are equal, any other output level will result in reduced profits. MR is greater than MC, producing more will lower profits.
Answer:
MR and MC are equal, any other output level will result in reduced profits.
Explanation:
Marginal cost is the increase in the total cost as a result of producing one additional unit. Marginal revenue is the increase in revenue resulting from the sale of one additional unit. Profit-maximization is the process by which a firm determines the price and output level that will result in the largest profit. The reason behind this strategy is that the total profit reaches its maximum point where marginal revenue equals marginal cost and the firm will continue to produce until marginal profit is zero. The marginal profit equals the marginal revenue minus the marginal cost.
Olympic Sports has two issues of debt outstanding. One is a 5% coupon bond with a face value of $33 million, a maturity of 10 years, and a yield to maturity of 6%. The coupons are paid annually. The other bond issue has a maturity of 15 years, with coupons also paid annually, and a coupon rate of 6%. The face value of the issue is $38 million, and the issue sells for 90% of par value. The firm's tax rate is 30%.
a. What is the before-tax cost of debt for Olympic? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
b. What is Olympic's after-tax cost of debt? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Answer and Explanation:
The computation is shown below
a. For before tax cost of debt
But before that following calculations need to be determined
For Bond 1:
Face value = $33,000,000
Coupon payment = 0.05 × $33,000,000 = $1,650,000
The Price of the bond is
= Coupon × [ 1 - 1 ÷ ( 1 + r)^n] ÷ r + FV ÷ ( 1 + r)^n
= $1,650,000 × [ 1 - 1 ÷ ( 1 + 0.06)^10] ÷ 0.06 + $33,000,000 ÷ ( 1 + 0.06)^10
= 1,650,000 × 7.360087 + 18,427,027.64
= $30,571,171.196
For Bond 2:
Price = 0.9 × $38,000,000
= $34,200,000
Now
Coupon = 0.06 × $38,000,000
= $2,280,000
Now before tax cost of debt is
Given that
PV -$34,200,000,
FV $38,000,000,
N 15,
PMT $2,280,000
The formula is shown below:
= RATE(NPER,PMT, PV,FV,TYPE)
After applying the above formula, the Before tax cost of debt of bond is 7.1053%
Now
Total market value is
= $34,200,000 + $30,571,171.196
= $64,771,171.19
And,
finally
Before tax cost of debt for olympic is
= ($30,571,171.196 ÷ 64,771,171.19) × 0.06 + ($34,200,000 ÷ 64,771,171.19) × 0.071053
= 0.028319 + 0.037517
= 0.0658 or 6.58%
b)
And,
After tax cost of debt is
= 0.0658× ( 1 - 0.3)
= 0.0461 or 4.61%
Assuming that turkey chicken pork and beef are substitues supppose that the price of turkey had fallen. This will, other things being equal
wait where did the turkey fall?
FORco, a country F corporation, wants to open a sales office in the United States. FORco does not form a U.S. subsidiary, but instead operates in the U.S. as a branch. Country F does not have a income tax treaty with the U.S. If FORco loans operating funds to the U.S. branch, when the U.S. branch makes interest payment to FORco, the interest payment will be subject to:____.
Answer:
C. Subject to 30% withholding tax under the Branch Interest Withholding tax rules.
Explanation:
Options are "A. No interest withholding as the interest is deemed paid by the foreign corporation, since the U.S. branch is not a U.S. corporation. B. No interest withholding tax since the recipient of the interest is a foreign corporation. C. Subject to 30% withholding tax under the Branch Interest Withholding tax rules. D. Subject to 15% withholding tax under the Branch Profits tax rules. Reset Selection"
The interest payment will be subject to 30% withholding tax under the Branch Interest Withholding tax rules. Interest paid by a branch's U.S. trade or business, is considered U.S. source income and is subject to U.S. withholding tax at a rate of 30%, unless the tax is reduced or eliminated by a specific treaty or Code provision.
Which of the following are mechanisms that have evolved to mitigate potential agency problems?
I) Using the firm's stock options for compensation
II) Hiring bickering family members as corporate spies
III) Boards of directors forcing out underperforming management
IV) Security analysts monitoring the firm closely
V) Takeover threats
Answer:
I) Using the firm's stock options for compensation
III) Boards of directors forcing out underperforming management
IV) Security analysts monitoring the firm closely
V) Takeover threats
Explanation:
Agency problem can be regarded as
conflict of interest which are inherent that can exist between management of a company and its stockholders. It exist when there is expectation that one party act in the best interest of other.
It should be noted that Mechanism that are used in mitigation of potential agency problems are;
I) Using the firm's stock options for compensation
III) Boards of directors forcing out underperforming management
IV) Security analysts monitoring the firm closely
V) Takeover threats
Prepare a journal entry for the purchase of office equipment on February 19 for $31,700, paying $7,600 cash and the remainder on account. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is enter.
CHART OF ACCOUNTS
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Office Supplies
14 Prepaid Insurance
15 Land
16 Office Equipment
17 Automobiles
LIABILITIES
21 Accounts Payable
22 Unearned Rent
23 Notes Payable
24 Salaries Payable
EQUITY
31 John Doe, Capital
32 John Doe, Drawing
Journal
Prepare a journal entry for the purchase of office equipment on October 27 for $32,750, paying $6,550 cash and the remainder on account. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
GENERAL JOURNAL
DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT
1
2
3
REVENUE
41 Fees Earned
42 Sales Commission
Answer:
A. Dr Office equipment $31,700
Cr Cash $7,600
Cr Accounts payable $24,100
B. Dr Office equipment $32,750
Cr Cash $6,550
Cr Accounts payable $26,200
Explanation:
Preparation of the journal entry
A. Based on the information given if the purchase of office equipment on February 19 was the amount of $31,700 in which the amount of $7,600 was paid as cash while the remainder on account which means that the journal entry will be:
Dr Office equipment $31,700
Cr Cash $7,600
Cr Accounts payable $24,100
($31,700-$7,600)
B. Based on the information given if the purchase of office equipment on February 19 was the amount of $32,750 in which the amount of $6,550 was paid as cash while the remainder on account which means that the journal entry will be:
Dr Office equipment $32,750
Cr Cash $6,550
Cr Accounts payable $26,200
($32,750-$6,550)
Onisha manages a group of apartment complexes and is trying to create a budget for next year. Below are the monthly expenses for the last three years, in thousands of dollars. Help her by finding the appropriate seasonal indices for April and October.
Year 1 Year 2 Year 3
January 170 180 195
February 180 205 210
March 205 215 230
April 230 245 282.3
May 240 265 290
June 315 330 390
July 360 400 420
August 290 335 330
September 240 260 290
October 240 270 294.8
November 230 255 280
December 195 220 250
Select one:
a. April = 0.24, October = 268.27
b. None of the other options.
c. April = 2.86, October = 1.01
d. April = 0.95, October = 1.01
e. April = 252.43, October = 268.27
f. April = 0.95, October = 22.36
Answer:
Onisha
The appropriate seasonal indices for April and October are:
d. April = 0.95, October = 1.01
Explanation:
a) Data and Calculations:
Year 1 Year 2 Year 3 Yearly Averages
January 170 180 195 181.67
February 180 205 210 198.33
March 205 215 230 216.67
April 230 245 282.3 252.43
May 240 265 290 265
June 315 330 390 345
July 360 400 420 393.33
August 290 335 330 318.33
September 240 260 290 263.33
October 240 270 294.8 268.27
November 230 255 280 255
December 195 220 250 221.67
Total average 264.92 (31,79.03/12)
April = 252.43/264.92 = 0.95
October = 268.27/264.92 = 1.01
b) A season index is defined by the value for the season divided by the seasonal average.
true or false the only reason to protect intellectual property is financial?
Answer:
false
Explanation:
Bledsoe Corporation has provided the following data for the month of November: Beginning Ending Raw materials $ 25,100 $ 21,100 Work in process $ 17,100 $ 10,100 Finished Goods $ 48,100 $ 56,100 Additional information: Raw materials purchases $ 72,100 Direct labor cost $ 92,100 Manufacturing overhead cost incurred $ 42,110 Indirect materials included in manufacturing overhead cost incurred $ 4,010 Manufacturing overhead cost applied to Work in Process $ 41,100 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.
Answer:
Bledsoe Corporation
Schedule of Cost of goods manufactured
Particulars Amount
Direct materials:
Beginning material inventory $25,100.00
Add: Purchases $72,100.00
Raw material available for use $97,200.00
Less: Ending material inventory $21,100.00
Raw material used in production $76,100.00
Less: Indirect material $4,010.00 $72,090.00
Direct labor $92,100.00
Manufacturing overhead applied $41,100.00
Total manufacturing costs $205,290.00
Add: Beginning WIP $17,100.00
Total cost of work in process $222,390.00
Less: Ending WIP $10,100.00
Cost of goods manufactured $212,290.00
Bledsoe Corporation
Schedule of COGS
Particulars Amount
Cost of goods sold:
Beginning finished goods inventory $48,100.00
Add: Cost of goods manufactured $212,290.00
Cost of goods available for sale $260,390.00
Less: Ending finished goods inventory $56,100.00
Unadjusted cost of goods sold $204,290.00
Add: Underapplied overhead $1,010.00 ($42,110 - $41,100)
Adjusted cost of goods sold $205,300.00
Question 6 of 10
Match each company, organization, or agency with the correct label.
Consumer
Reports
?
consumer advocacy
publication
Federal Trade
Commission
(FTC)
?
consumer protection
agency
Food and Drug
Administration
(FDA)
?
competition regulator
Answer:
I. Consumer Reports: consumer advocacy publication.
II. Federal Trade Commission (FTC): competition regulator.
III. Food and Drug Administration (FDA): consumer protection agency.
Explanation:
I. Consumer Reports: consumer advocacy publication. It is a non-profit organization in the United States of America saddled with the responsibility of consumer advocacy, investigative journalism, product testing and the enlightening of the general public.
II. Federal Trade Commission (FTC): competition regulator. It is an agency of the government of the United States of America saddled with the responsibility of promoting consumer protection and the enforcement of all civil antitrust laws.
III. Food and Drug Administration (FDA): consumer protection agency. It is a federal agency of the government of the United States of America saddled with the responsibility of protecting the consumers of edible products and public health safety.
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:
Cutting Finishing
Direct labor-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 30,000
Machine-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000 5,000
Total fixed manufacturing overhead cost . . . . . . . . . . . . . . . . $264,000 $366,000
Variable manufacturing overhead per machine-hour . . . . . . ....$2.00 ______
Variable manufacturing overhead per direct labor-hour . . . . . _____ $4.00
Required:
Compute the predetermined overhead rate to be used in each department.
Answer and Explanation:
The computation of the predetermined overhead rate is shown below:
For Cutting department
= Variable manufacturing overhead per machine hour + (Total fixed manufacturing overhead ÷ machine hours)
= $2 + ($264,000 ÷ 48,000)
= $2 + $5.50
= $7.50
For finishing department
= Variable manufacturing overhead per direct labour + (Total fixed manufacturing overhead ÷ direct labor hours)
= $4 + ($366,000 ÷ 30,000)
= $4 + $12.20
= $16.20
The income approach The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars.
Billions of Dollars
Gross private domestic investment $2,300
Depreciation $1,987
Exports $3,120
Imports $200
Government purchases of goods and services $4,521
Personal consumption expenditures $6,300
Indirect business taxes and misc. items $1,341
Income received from other countries $1,118
Income paid to other countries $1,022
Compensation of employees (wages) $8,174
Corporate profits $1,895
Rental income $365
Net interest $903
Proprietors’ income $1,343
If you calculate GDP by adding together the final demands of consumers, business firms, the government, and foreigners (i.e., using the expenditure approach), GDP for this economy is ________$ billion. Given this information, the statistical discrepancy between national income and net national product, obtained when GDP is measured using the expenditure approach, is________ $ billion.
Answer:
A. $16,041 billion
B. $33 billion
Explanation:
A. Calculation to Determine what GDP for this economy is using the expenditure approach
Using this formula
GDP by expenditure method=C+I+G+X-M
Let plug in the formula
GDP by expenditure method= 6,300+2,300+4,521+3,120-200
GDP by expenditure method=$16,041 billions
Therefore GDP for this economy is $16,041 billion
B. Calculation to determine the statistical discrepancy.
First step is to calculate GDP at MP by income method
GDP at MP by income method=8,174+365+903+1,895+1,343+1,987+1,341
GDP at MP by income method=$16,008 billions
Now let calculate the Statistical discrepancy using this formula
Statistical discrepancy= GDP by expenditure method - GDP by income method
Let plug in the formula
Statistical discrepancy=$16,008-$16,041
Statistical discrepancy=$33 billions
Therefore the statistical discrepancy between national income and net national product, obtained when GDP is measured using the expenditure approach is $33 billion.
It's best if you share the details of a personal appointment when you need to request time off work. True Or False
Answer:
False
Explanation:
the majority of retailers are what
Consider two neighboring island countries called Arcadia and Dolorium. They each have 4 million labor hours available per week that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor.
Country Jeans (Pairs per hour of labor) Corn(Bushels per hour of labor)
Arcadia 5 10
Dolorium 4 16
Initially, suppose Arcadia uses 1 million hours of labor per month to produce corn and 3 million hours per month to produce jeans, while Dolorium uses 3 million hours of labor per month to produce corn and 1 million hours per month to produce jeans. Consequently, Arcadia produces 8 million bushels of corn and 48 million pairs of jeans, and Dolorium produces 15 million bushels of corn and 20 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of corn and jeans it produces.
Arcadia's opportunity cost of producing 1 pair of jeans is _____ of corn, and Dolorium's opportunity cost of producing 1 pair of jeans is _____ of corn. Therefore, ____ has a comparative advantage in the production of jeans, and ____ has a comparative advantage in the production of corn.
Answer:
Arcadia's opportunity cost of producing 1 pair of jeans is 2 bushels of corn, and Dolorium's opportunity cost of producing 1 pair of jeans is 4 bushels of corn. Therefore, Arcadia has a comparative advantage in the production of jeans, and Dolorium has a comparative advantage in the production of corn.
Explanation:
maximum production
jeans corn
Arcadia 20 40
Dolorium 16 64
initial production
jeans corn
Arcadia 15 10
Dolorium 4 48
Arcadia's opportunity costs:
jeans = 40 / 20 = 2 bushels of corn
corn = 20 / 40 = 0.5 pairs of jeans
Dolorium's opportunity costs:
jeans = 64 / 16 = 4 bushels of corn
corn = 16 / 64 = 0.25 pairs of jeans
Papa John’s is one of the fastest-growing pizza delivery and carry-out restaurant chains in the country. Presented here are selected income statement and balance sheet amounts (dollars in thousands). Current Year Prior Year Net sales $ 1,242,087 $ 1,242,087 Net income 51,796 22,735 Average shareholders' equity 121,445 134,536 Average total assets 390,143 397,728 Required: 1. Compute ROA for the current and prior years. (Round your answers to 3 decimal places.)
Answer and Explanation:
The computation of the return on assets for the current and prior years are as follows:
As we know that
Return on assets = Net income ÷ average total assets
For current year
= $1,242,087 ÷ $390,143
= 3.184
And, for the prior year
= $1,242,087 ÷ $397,728
= 3.123
Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.88. Stock Investment Beta A $50,000 0.50 B $50,000 0.80 C $50,000 1.00 D $50,000 1.20 Total $200,000 If Jill replaces Stock A with another stock, E, which has a beta of 1.45, what will the portfolio's new beta be
Answer:
1.11
Explanation:
Calculation for what will the portfolio's new beta be
First step is to Calculate the weight of each investment
Stock E $ 50,000 / $ 2,00,000
Stock E= 0.25
Stock B $ 50,000 / $ 2,00,000
Stock B= 0.25
Stock C $ 50,000 / $ 2,00,000
Stock C = 0.25
Stock D $ 50,000 / $ 2,00,000
Stock D = 0.25
Now let calculate the portfolio new beta
Weight Beta
Stock E 0.25* 1.45 = 0.36
Stock B 0.25 * 0.80 = 0.20
Stock C 0.25* 1.00 = 0.25
Stock D 0.25 * 1.20 = 0.30
Total 1.11
(0.36+0.20+0.25+0.30)
Therefore portfolio's new beta will be 1.11
A firm now operates as a C-Corporation. The firm has earnings before taxes of $433,743 per year and pays out all its net earnings as dividends. The firm has a corporate tax rate is 24 percent. The firm has only one owner who faces a personal income tax rate of 27 percent. What is the spendable income for the owner of the C-Corporation
Answer:
The Spending income for the owner of the C-Corporation is:
= $240,641.
Explanation:
a) Data and Calculations:
Earnings before taxes = $433,743
Corporate tax rate = 24%
Corporate tax expense = 104,098 ($433,743 * 24%)
Net Earnings after taxes = $329,645
Dividends paid out = $329,645
Retained earnings = $0
Taxable income for the owner of the C-Corporation = $329,645
Income tax rate for the owner of the C-Corporation = 27%
Income tax for the owner of the C-Corporation = $89,004 ($329,645 * 27%)
Spending income for the owner of the C-Corporation = $240,641
b) The owner of this C-Corporation cannot avoid double taxation at the corporate and individual levels. To avoid this, the owner can choose an S-Corporation.
-At which point are you producing all running shoe
inserts and no hiking boot inserts?
-Which production point would be a goal for the future
but cannot be attained now?
Answer is A,X
Answer:
the guy above is right trust me (kid in all cp classes)
Explanation:
but yea he is correct
100 POINTS PLS HELP
In the hiring process are people who are willing to confirm the job candidate's previous employment
and discuss the candidate's qualifications for the job being applied for
A. Subcontractors
В. Classifieds
C. Personnel
D. References
Answer:
D. references
Explanation:
:)
the balance in the supplies account, before adjustment at the end of the year is 2750. the inventory of supplies at the end of the year was determined to be 600. the estimated depreciation on equipment at the end of the year is 1600. journalize the adjusting entries required at the end of the year to recognize
A. supplies used during the year and
B. depreciation expense for the year.
Answer and Explanation:
The adjusting entries are shown below:
a. Supplies Expense Dr ($2,750 - $600) $2,150
To Supplies $2,150
(being supplies expense is recorded)
Here supplies expense is debited as it increased the expense and credited the supplies as it decreased the assets
b. Depreciation expense $1,600
To Accumulated depreciation $1,600
(being depreciation expense is recorded)
Here depreciation expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets
Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records.
Production Activity
Indirect Labor
Indirect Materials
Other Overhead
Grinding
$320,000
Polishing
$135,000
Product modification
600,000
Providing power
$255,000
System calibration
500,000
Additional information on the drivers for its production activities follows.
Grinding
13,000 machine hours
Polishing
13,000 machine hours
Product modification
1,500 engineering hours
Providing power
17,000 direct labor hours
System calibration
400 batches
Required
1. Classify each activity as unit level, batch level, product level, or facility level.
2. Compute the activity overhead rates using ABC. Form cost pools as appropriate.
3. Determine overhead costs to assign to the following jobs using ABC.
Job 3175
Job 4286
Number of units
200 units
2,500 units
Machine hours
550 MH
5,500 MH
Engineering hours
26 eng hours
32 eng. hours
Batches
30 batches
90 batches
Direct labor hours
500 DLH
4,375 DLH
4. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286?
5. If the company used a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286?
6. Compare the overhead costs per unit computed in requirements 4 and 5 for each job. Which method more accurately assigns overhead costs?
Answer:
Craftmore Machining
1. Classification of activity as unit level, batch level, product level, or facility level:
Production Activity Level
Indirect Labor Facility
Indirect Materials Product
Grinding Product
Polishing Product
Product modification Product
Providing power Facility
System calibration Batch
2. The Activity Overhead Rates using ABC:
Grinding = $24.62/machine hour
Polishing = $10.38/machine hour
Product modification = $400/eng.h
Providing power = $15/DLH
System calibration = $1.25/batch
3. Assignment of overhead costs:
Job 3175 Job 4286
Number of units 200 units 2,500 units
Machine hours 550 MH 5,500 MH
Engineering hours 26 eng hours 32 eng. hours
Batches 30 batches 90 batches
Direct labor hours 500 DLH 4,375 DLH
Job 3175 Job 4286
Grinding = $24.62/machine hour $13,541 $135,410
Polishing = $10.38/machine hour 5,709 57,090
Product modification = $400/eng.h 10,400 12,800
Providing power = $15/DLH 7,500 65,625
System calibration = $1.25/batch 37.50 112.50
Total costs allocated $37,187.50 $271,037.50
Cost per unit $185.94 $108.42
4. Overhead cost per unit:
Job 3175 , Overhead cost per unit = $185.94 ($37,187.50/200)
Job 4286 Overhead cost per unit = $108 ($271,037.50/2,500)
5. Plantwide overhead rate
Total overhead costs = $1,810,000
Total direct labor hours = 4,875
Overhead rate = $1,810,000/4,875 = $371.28
Job 3175 Job 4286
Direct labor hours 500 DLH 4,375 DLH
Total overhead cost $185,640 $1,624,350
Overhead cost per unit $928.20 $649.74
6. Overhead cost per unit Job 3175 Job 4286
Using ABC $185.94 $108.42
Using Plantwide rate $928.20 $649.74
ABC rate more accurately assigns overhead costs than using plantwide rate.
Explanation:
a) Data and Calculations:
Production Activity
Indirect Labor
Indirect Materials
Other Overhead Costs Usage Usage Rate
Grinding $320,000 13,000 machine hours $24.62/mh
Polishing $135,000 13,000 machine hours $10.38/mh
Product modification 600,000 1,500 engineering hours $400/eng.h
Providing power $255,000 17,000 DLH $15/DLH
System calibration 500,000 400 batches $1.25/batch
Total overhead $1,810,000
b) Craftmore incurs unit-level costs each time a unit is produced. It incurs batch-level costs each time it produces a batch of goods. It incurs product-level costs to support the production of each type of product. Finally, Craftmore's facility-level costs sustain the facility's general manufacturing process.
The organizational structure is sometimes used in conjunction with the traditional line-and-staff structure.
A. functional
B. product
C. process
D. matrix
An article in The Globe and Mail, February 16, 2002, reported that IBM used the $300 million proceeds of a sale of one of its business units to reduce operating expenses in its fourth quarter 2001 income statement. This added about 8 cents per share to its fourth quarter earnings. As a result, IBM beat analysts' forecasts by 1 cent per share.
IBM defended its treatment by claiming that buying and selling businesses is a normal business practice, and that most of the sale proceeds related to intellectual property that it had developed. The article quotes a Merrill Lynch analyst as saying, "Our only concern is that the company could have done more to call out the magnitude of the transaction." According to the article, IBM's share price fell by 4% as a result of this news.
While not mentioned in this article, the SEC opened a preliminary inquiry into IBM's accounting practice, expressing concerns that IBM had let it be known that the reason for its higher operating earnings was tight cost controls, rather than the sale proceeds. This inquiry was subsequently dropped, but the SEC issued a bulletin reminding firms to report gains or losses on asset sales separately from operating costs.
Required
Explain why IBM's share price dropped following the Merrill Lynch analyst's comment and the news of the SEC's preliminary inquiry.
Answer:
The sale of business units are one time events that should not be common. If the only way that IBM can show profit is by selling business divisions, in a very short time it will run out of divisions to sell. A company's intrinsic value is given by its cash flows, especially the operating cash flow.
Compute the future value of $1,900 continuously compounded for: a. 7 years at an annual percentage rate of 8 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. 5 years at an annual percentage rate of 11 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. 8 years at an annual percentage rate of 5 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. 5 years at an annual percentage rate of 7 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
$14,407.72
$10,604.64
$15,979.32
Explanation:
The formula to be used is :
FV = PV x е^r x N
FV = Future value
P = Present value
R = interest rate
N = number of years
$1,900 x e^0.08 x 7 = $14,407.72
$1,900 x e^0.11 x 5 = $10,604.64
$1,900 x e^0.05 x 8 = $15,979.32
find three examples of managers
you would describe as master managers. Write a paper describing these individuals
as managers and why you think they deserve this title.
ms
Answer:
All managers must be comfortable with three main types of activities or roles. To do their jobs, managers assume these different roles. No manager stays in any one role all of the time, but shifts back and forth. These roles are leadership (or interpersonal), informational, and decision making.
Explanation:
Hope it helps kahit na ndi ko na sagot ung main question.
The three examples of managers that we would describe as master managers are advertisement manager, accounting manager and analytics manager. The roles of managers are leadership, informational, and decision making.
What is an information?An information refers to something that has the power to inform. At the most fundamental level information pertains to the interpretation of that which may be sensed.
The digital signals and other data use discrete signs or alogrithms to convey information, other phenomena and artifacts such as analog signals, poems, pictures, music or other sounds, and the electrical currents convey information in a more continuous form.
Information is not knowledge itself, but its interpretation is important. An Information can be in a raw form or in an structured form as data. The information available through a collection of data may be derived by analysis by expert analysts in their domain.
Learn more about information here:
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An investor obtained a fully amortizing mortgage five years ago for $95,000 at 11-percent for 30 years. Mortgage rates have dropped, so that a fully amortizing 25-year loan can be obtained at 10-percent. There is no prepayment penalty on the mortgage balance of the original loan, but three points will be charged on the new loan and other closing costs will be $2,000. All payments are monthly.
Required:
a. Should the borrower refinance if he plans to own the property for the remaining loan term? Assume that the investor borrows only an amount equal to the outstanding balance of the loan.
b. Would your answer to part (a) change if he planned to own the property for only five more years?
Answer:
a) yes, you should refinance the loan
b) yes, you should refinance the loan
Explanation:
the original monthly payment = $904.71
after 60 payments, the principal owed = $838.79
the difference between both payments = $904.71 - $838.79 = $65.92
in order to determine whether the loan should be refinanced or not, we must find the present value of refinancing costs:
are 300 payments of $65.92 worth more than $2,000?
PV = $65.92 x 110.162 (PVIFA, 0.833%, 300 periods) = $7,261.88 ≥ $2,000
PV = $65.92 x 47.07(PVIFA, 0.833%, 60 periods) = $3,102.85 ≥ $2,000
Garcia Company issues 8.50%, 15-year bonds with a par value of $390,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 12.50%, which implies a selling price of 79. The effective interest method is used to allocate interest expense. 1. Using the implied selling price of 79, what are the issuer's cash proceeds from issuance of these bonds.
Answer:
$308,100
Explanation:
Calculation for what are the issuer's cash proceeds from issuance of these bonds
Using this formulaIssuer's cash proceeds from issuance of bonds=Fave value*Implies a selling price percentage
Let plug in the formula
Issuer's cash proceeds from issuance of bonds=$390,000*79/100
Issuer's cash proceeds from issuance of bond=$308,100
Therefore the issuer's cash proceeds from issuance of these bonds will have be $308,100
Which of the statements is the best description of inflation? The prices of only consumer goods are increasing. The price of all goods and services have increased proportionately. The price of all goods and services in the economy are increasing. Real GDP is rising. An increase in the overall price level has occurred.
Answer:
An increase in the overall price level has occurred.
Explanation:
Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.
Mathematically, inflation is given by the formula;
Inflation = Nominal interest - Real interest rate
Hence, the best description of inflation is an increase in the overall price level has occurred.
Additionally, economics can be classified into two (2) main categories, namely;
1. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
2. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets. Simply stated, it focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
Hence, macroeconomic is a kind of externalities that affects the levels of unemployment, inflation, or growth in the economy as a whole.
