Answer:
b. Yes, but only if it were substantially certain that Baxter would experience apprehension of an imminent harmful or offensive contact;
Explanation:
I'm not really sure how someone cannot tell a film is being shot, but if Barbara Baxter can prove that she actually thought her life was in danger by the actor running with the fake gun, then she could sue Meadow and the production team. This is rather unusual since filming a scene requires a lot of people, but maybe they were all inside.
What are references?
Answer:
Explanation:
Let us say you are doing an essay on the gold trade on the comex. You have to read something to understand what it means to buy gold on the comex. You need to at least know what it takes to buy and sell on the comex.
What you read to find out is a reference. It has to be listed in a Bibliography which is a list of references.
The use of property, plant, and equipment and intangible assets represents a consumption of benefits, or service potentials, inherent in the assets.
a. True
b. False
Answer:
a. True
Explanation:
Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.
The four factors of production are;
I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.
II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.
III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.
IV. Entrepreneurship: it is intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).
The expense recognition principle is an accounting principle which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.
Additionally, the expense recognition principle helps business owners to calculate their taxes and profits or losses properly.
The use of property, plant, and equipment and intangible assets represents a consumption of benefits, or service potentials, inherent in the assets.
Generally, the cost associated with these service potentials or inherent consumption benefits should be considered or recognized by the business firm as expenses over the specific period they are used to generate revenue for the business.
Which of the following is step three in the six-step process for creating a financial plan?
implement a finalized plan
evaluate alternatives and risk factors
make a financial plan
work with the client to set financial goals
Answer:
evaluate alternatives and risks factors
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2015 $ 134 $ 3 2016 150 3 2017 125 3 2018 130 3 An investor buys five shares of XYZ at the beginning of 2015, buys another two shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all six remaining shares at the beginning of 2018. a. What are the arithmetic and geometric average time-weighted rates of return for the investor
Answer:
a. We have:
Arithmetic mean = 2.62%
Geometric mean = 1.82%
b. From the attached excel file, the total cash flow for each year are as follows:
January 1, 2015 Total Cash Flow = -$650
January 1, 2016 Total Cash Flow = -$273
January 1, 2017 Total Cash Flow = $141
January 1, 2018 Total Cash Flow = $768
Explanation:
Note: The requirement of this question is not complete. The complete requirement is therefore given before answering the question as follows:
a. What are the arithmetic and geometric average time-weighted rates of return for the investor.
b. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018.
The explanation of the answer is now given as follows:
The following sorted table is given in the question:
Year Beginning-of-Year Price Dividend Paid at Year-End
2015 $ 134 $ 3
2016 150 3
2017 125 3
2018 130 3
a. What are the arithmetic and geometric average time-weighted rates of return for the investor.
The arithmetic and geometric average time-weighted rates of return for the investor can be calculated as follows:
Arithmetic average return = Sum of returns/ number of years ………....….. (1)
Geometric average return = n * ((1+r1)*(1+r2)*(1+r3)…(1+rn)^(1/n) - 1 .……….. (2)
Where;
n = years 1, 2, 3….
r1, r2, r3… are the returns for year 1, 2, 3….
Return for each year = ((Current year Beginning-of-Year Price – Previous year Beginning-of-Year Price) + dividend) / Previous year Beginning-of-Year Price .................... (3)
Using equation (3), we have:
2016 Return = ((150 - 134) + 3) /134 = 0.141791044776119
2017 Return = ((125 - 150) + 3) /150 = -0.146666666666667
2018 Return = ((125 - 120) + 5) /120 = 0.0833333333333333
Using equation (1), we have:
Arithmetic mean = (2016 Return + 2017 Return + 2018 Return) / 3 = (0.1417910447761190 - 0.1466666666666670 + 0.0833333333333333) / 3 = 0.0262, or 2.62%
Using equation (2), we have:
Geometric mean = ((1 + 2016 Return) * (1 + 2017 Return) * (1 + 2018 Return))^(1/3) - 1 = ((1 + 0.141791044776119) * (1 - 0.146666666666667) * (1 + 0.0833333333333333))^(1/3) - 1 = 0.0182, or 1.82%
b. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018.
Note: See the attached excel file for the chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018.
In the attached excel file, Beginning-of-Year Price for January 1, 2015 and January 1, 2016 are negative because the purchase of stock is a cash outflow.
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 December 31 Direct materials $ 77,000 $ 40,000 Work in process 66,000 42,000 Finished goods 115,000 100,000 Other information Direct materials purchases $ 324,000 Cost of goods available for sale 950,000 Actual factory overhead costs 260,000 The cost of direct materials used for production is:
Answer:
$361,000
Explanation:
Direct materials used = Beginning Materials + Purchases - Ending Materials
therefore,
Direct materials used = $ 77,000 + $ 324,000 - $ 40,000 = $361,000
Conclusion
The cost of direct materials used for production is $361,000.
A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is _____________ and ___________. Thus, the visual appearance would be classified as a public good.
Suppose the college administrators estimate that the beautification initiative will cost $2,040. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 420 students, asking each of them their willingness-to-pay for the beautification project. The average willingness-to-pay, as revealed by the survey, is $12.
The benefit of the beatification initiative, as suggested by the survey, is $ __________ Because the estimated benefit is ____________ than the
cost, the college administrators ______________ undertake the beautification in initiative.
The calculation of the benefit of the beatification initiative relied on the ability of the administrators to accurately capture the true willingness-to-pay of each student.
Which of the following scenarios would cause the survey used by the college administrators to yield misleading willingness-to-pay data? Check all that apply.
a. Students believe that if the initiative does not happen, the funds for the initiative Will not be spent elsewhere.
b. An equal number of male and female students were surveyed.
Answer:
non rival, non excludable
$5040
greater
will
a. Students believe that if the initiative does not happen, the funds for the initiative Will not be spent elsewhere.
Explanation:
A public good is a good that is non excludable and non rivalrous.
Because a student is enjoying the visual appearance of the campus, another student is not prevented from enjoying the visual appearance of the campus. This means that the beautification initiative is non rivalrous
There is no way to prevent any student from viewing the initiative. This means it is non excludable
Benefit can be calculated using the willingness to pay of student
the price a student is willing to pay would be dependent on the amount of benefit she expects to derive from the project
benefit = 420 x $12 = $5040
The beautification initiative generates a positive externality
A good or initiative has positive externality if the benefits to third parties not involved in production is greater than the cost
Because the good generates positive externality, the initiative should be carried out
If . Students believe that if the initiative does not happen, the funds for the initiative Will not be spent elsewhere, they would quote a lower willingess to pay
A simple random sample of 60 items resulted in a sample mean of 76. The population standard deviation is 14.
a. Compute the 95% confidence interval for the population mean (to 1 decimal).
Answer: (72.383,79.617)
Round to: (72.4,79.6)
Explanation:
Go to stat, calc, 8-Tinterval, and then just plug in the given information
Ruben, Gerald, and Norma all work for the same company. Gerald and Norma both evaluate the company’s financial picture, but Gerald looks at liabilities and Norma looks at expenditures. Both Gerald and Norma make reports for Ruben, who makes the decisions for the company.
Which best describes the jobs of the three employees?
Ruben is the Risk Management Specialist, Gerald is the Budget Analyst, and Norma is the Treasurer.
Ruben is the Treasurer, Gerald is the Risk Management Specialist, and Norma is the Budget Analyst.
Ruben is the Treasurer and Gerald and Norma are the Risk Management Specialists.
Ruben is the Treasurer and Gerald and Norma are the Budget Analysts.
Answer:
The correct answer is (B)
Explanation:
Trust homie
Answer:
SUPPPERRR late but im dont the unit test right know
The answer is "Ruben is the Treasurer, Gerald is the Risk Management Specialist, and Norma is the Budget Analyst."
Welcome
Explanation:
Winnebagel Corp. currently sells 28,400 motor homes per year at $75,000 each and 7,400 luxury motor coaches per year at $117,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 23,400 of these campers per year at $21,000 each. An independent consultant has determined that if the company introduces the new campers, it should boost the sales of its existing motor homes by 3,000 units per year and reduce the sales of its motor coaches by 890 units per year.
Required:
What is the amount to use as the annual sales figure when evaluating this project?
Answer:
$820,530,000
Explanation:
Calculation to determine the amount to use as the annual sales figure when evaluating this project
Campers sale revenue $ 491,400,000 (23,400*$21,000)
Add: Increase in motor homes sales $
$225,000,000
( 3,000*$75,000)
Less: Decrease in luxury motor coaches $ 104,130,000 (890*$117,000)
Annual sales figure $820,530,000
Therefore the amount to use as the annual sales figure when evaluating this project will be $820,530,000
Gallerani Corporation has received a request for a special order of 4,300 units of product A90 for $26.90 each. Product A90's unit product cost is $26.40, determined as follows: Direct materials$2.55 Direct labor 7.85 Variable manufacturing overhead 6.95 Fixed manufacturing overhead 9.05 Unit product cost$26.40 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90 that would increase the variable costs by $3.30 per unit and that would require an investment of $22,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:
Answer:
Effect on income= $4,875 increase
Explanation:
Giving the following formula:
Production costs:
Direct materials$2.55
Direct labor 7.85
Variable manufacturing overhead 6.95
Total= $17.35
Special offer:
Selling price= $26.9
Number of units= 4,300
Increase in variable cost= $3.3
Increase in fixed costs= $22,000
Because it is a special offer and there is unused capacity, we will take into account only the incremental fixed costs.
To calculate the effect on income, we need to use the following formula:
Effect on income= incremental contribution margin - incremental fixed costs
Effect on income= 4,300*(26.9 - 17.35 - 3.3) - 22,000
Effect on income= $4,875 increase
In the context of customer benefit packages,__________are those that are not essential to the primary service, but enhance it.
a.
central services
b.
peripheral services
c.
tertiary services
d.
core services
Do you feel it is easier or harder to deliver a presentation online versus face to face? Why?
Answer:
I think it easier in person
Explanation:
This is due to the fact that I can see the people and can understand if people are paying attention or if I need to alter the material a bit.
The information content of a regular dividend increase generally signals that:Multiple Choicefuture dividends will be lower.the firm has recently sold a subsidiary.the firm has a one-time surplus of cash.the firm has more cash than it needs due to steadily declining sales.management believes the future earnings of the firm will be strong.
Answer:
management believes the future earnings of the firm will be strong
Explanation:
The information content with respect to the regular dividend would be increase when the company would have a greater amount of earnings in near future and they try to give the greater amount of dividend to the shareholders. This represent the management would trust that the earnings of the future of the firm would be strong
Hence, the last option is correct
Lakeside Rides is adding a new roller coaster to its amusement park. The firm expects this addition to increase its overall ticket sales and increase attendance at its park. In particular, the firm expects to sell more tickets for its current roller coaster and experience extremely high demand for its new coaster. Sales for its boat ride are expected to decline but food and beverage sales are expected to increase significantly. Which of the following are considered side effects associated with the new roller coaster?
a. ticket sales for the new roller coaster
b. change in ticket sales for the existing roller coaster
c. change in ticket sales for the boat ride
d. change in food and beverage sales
Answer:
b. change in ticket sales for the existing roller coaster
c. change in ticket sales for the boat ride
d. change in food and beverage sales
Explanation:
The side effects that along with the new roller coaster is as follows:
a. There should be the change in the sale of the ticket with respect to the existing roller coaster
b. There should be the change in the sale of the ticket with respect to the boat ride
c. Also, there should be the change in the sale for food & beverages
So the above represent the side effects
Hence, b, c and d are the correct options
Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones.
Pictech Pricing
High Low
Flashfone Pricing High 11, 11 2, 18
Low 18, 2 10, 10
For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $18 million, and Pictech will earn a profit of $2 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.
a. If Flashfone prices high, Pictech will make more profit if it chooses a (high,low) _____ price, and if Flashfone prices low, Pictech will make more profit if it chooses a(high,low)_______ price.
b. If Pictech prices high, Flashfone will make more profit if it chooses a(high,low)______price, and if Pictech prices low, Flashfone will make more profit if it chooses a (high,low) ______ price.
c. Considering all of the information given, pricing high (is, is not) ______ a dominant strategy for both Flashfone and Pictech.
Answer:
Flashfone and Pictech
a. If Flashfone prices high, Pictech will make more profit if it chooses a (high,low) __low___ price, and if Flashfone prices low, Pictech will make more profit if it chooses a(high,low)___low____ price.
b. If Pictech prices high, Flashfone will make more profit if it chooses a(high,low)__low____price, and if Pictech prices low, Flashfone will make more profit if it chooses a (high,low) __low____ price.
c. Considering all of the information given, pricing high (is, is not) _is not_ a dominant strategy for both Flashfone and Pictech.
Explanation:
a) Data and Calculations:
Pictech Pricing
High Low
Flashfone Pricing High 11, 11 2, 18
Low 18, 2 10, 10
b) A dominant strategy exists if Pictech or Flashfone would implement a particular strategy that benefits it no matter what the other firm does.
You are the president of an internet company that has enjoyed great success. You are considering expanding operations into the South American markets and need to raise $500 million of additional funding to do so. You are considering borrowing the money in the bond market at a 8% rate or issuing an additional public offering of common stock. The company treasurer, Chris, suggests an issuance of preferred stock instead. How is preferred stock different than bonds or common stock
Answer: See explanation
Explanation:
A bond is regarded as a fixed income instrument and it's a loan that an investor makes to a borrower. On the other hand, in preference shares, dividends have to be paid out to the shareholders before the issuance of common stock dividends.
We should note that whilw bonds typically have a maturity date, the preference shares do not have a maturity date.
During bankruptcy, bondholders are more likely to get paid than the holders of preference shares. When there's default, bondholders can go to court since they've a legal obligation to get paid unlike the holders of preference shares who do not.
Discounting Cash Flows and Earnings. Under the residual income approach and the discounted cash flow approach to firm valuation, carnings and cash flows, respectively, are discounted using a firm's cost of equity. Discuss why the cost of equity is the appropriate discount rate to use to discount a firm's camings and cash flows. Why is the cost of debt inappropriate to use to discount a firm's earnings or cash flows
Answer:
Cost of debt is used for external source of finance whereas cost of equity is used for internal source of finance.
Explanation:
Debt is the fund borrowed from lender at a standard rate of interest. Equity is fund acquired by the investors and shareholders. The required rate of return for equity is higher than the rate of return to the debt holders. This is because debt holders are safe and they are paid first in case of a bankruptcy and liquidity situation of a company. Debt is considered as cheap source of finance but acquiring higher debt will increase company gearing. It is not suitable to use cost of debt as discount factor for the cash flows of the company. The best and ideal discount factor is WACC which is derived by the combination of debt and equity.
Exercise 07-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co. budgets production of 2,850 units during the second quarter. Other information is as follows: Direct labor Each finished unit requires 6 direct labor hours, at a cost of $9 per hour. Variable overhead Applied at the rate of $11 per direct labor hour. Fixed overhead Budgeted at $640,000 per quarter. 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget.
Answer:
See below
Explanation:
1. Total Direct labor
Addison Co.
Direct labor budget for second quarter
Budgeted production units 2,850
Direct labor hour per one unit 6
Total direct labor hours needed 17,100
Cost per one direct labor $9
Total direct labor $153,900
2. Total factory overhead budget
Addison Co. Factory overhead for second quarter
Total direct labor hours needed 17,100
Variable rate per direct labor hour $11
Budgeted variable overhead $188,100
Budgeted fixed overhead $640,000
Total factory overhead $828,100
Home Inspirations. Hailey works for her father in a family-owned business called Home Inspirations, a bedding company that has been in operation since the 1800s. When her father retires, Hailey plans on taking over the business. Hailey is aware of many things about the company that she likes, and a few things that she does not. She has particularly noted that when the economy has low unemployment and high total income, sales are great. However, at any other time, sales are not so good.
Currently, all of the bedding items are created in one place and everyone works on various tasks every day. Hailey is thinking about streamlining the production process so that individuals would be responsible for only one task. She believes that if production would increases, she could sell her products at a lower price and increase revenue. She knows that most bedding products available in the market are very similar in nature and satisfy the same need. However, if she were able to lower prices, this might give her company the competitive advantage that it needs. She would then be able to invest money in differentiating her products by providing unique features, building the brand name, and offering services such as free delivery. She is also considering selling her products on the Internet. Hailey knows that her father does not like change very much, but she feels these changes are important for the future of the company.
Hailey feels that for productivity to improve, the company must practice: _________.
a. Free enterprise,
b. Work ethics,
c. Specialization,
d. Cultural diversity,
e. Pure competition.
Answer:
c. Specialization,
Explanation:
Since in the question it is mentioned that she selling her product on the internet and she knows her father does not like the changes but she knows that it would be important for the company .
So here if she wants to improve the productivity of the product so she must practice in specialization as if the product is different from the competitor in terms of quality, price, quantity, attractiveness, etc so the chances of increasing the sales would be high
Hence, the option c is correct
Focused reports help managers ____________ the challenge before recommending solutions. Reports that present data without conducting analysis arei ______________.
Like other business messages, reports can range from informal to formal depending on their purpose, audience, and setting. Which of the following contributes to an informal writing style?
a. Absence of humor
b. Passive voice verbs
c. Familiar words
d. Use of contractions
Answer: analyze, informational reports;
the use of contractions
Explanation:
Focused reports help managers (analyze) the challenge before recommending solutions. Reports that present data without conducting analysis are (informational reports)
b. The option that contributes to an informal writing style is ( the use of contractions). Other informal writing styles are:
• First-person pronouns
• Active-voice verbs
• Conversational language
Q 9.20: City Mission is a not-for-profit organization that provides hot meals, living quarters, and showers for homeless people. Based on their yearly budget, they expect to spend $450,000 on food expenses, $350,000 on housing expenses, $280,000 on staff salaries, $90,000 on utilities, and $118,000 on other expenses. How much will City Mission need to raise in donations
Answer:
at least $1,288,000 in donation
Explanation:
With regards to the above information, we would add up all the expenses to arrive at how much donation that need City Mission needs to raise.
= Expenses on food + Housing expenses + Staff salaries + Utilities + Other expenses
= $450,000 + $350,000 + $280,000 + $90,000 + $118,000
= $1,288,000
The above is a large sum of money to raise only from donations, and by right a level or various levels of government should help pay for these expenses as no one go homeless either that or provide low cost homes for the homeless.
CPU-on-Demand (CPUD) offers real-time high-performance computing services. CPUD owns 1 supercomputer that can be accessed through the Internet. Their customers send jobs that arrive on average every 5 hours. The standard deviation of the interarrival times is 5 hours. Executing each job takes on average 3 hours on the supercomputer and the standard deviation of the processing time is 4.5 hours. How long does the customer have to wait to have the job completed?
Answer:
61 hours
Explanation:
A sporting goods manufacturer budgets production of 59,000 pairs of ski boots in the first quarter and 50,000 pairs in the second quarter of the upcoming year. Each pair of boots requires 2 kilograms (kg) of a key raw material. The company aims to end each quarter with ending raw materials inventory equal to 20% of the following quarter's material needs. Beginning inventory for this material is 23,600 kg and the cost per kg is $8. What is the budgeted materials purchases cost for the first quarter?
Answer:
Purchases= 114,400 kg
Total purchase cost= $915,200
Explanation:
Giving the following information:
Beginning inventory= 23,600 kg
Cost per kg= $8
Production= 59,000 pairs
Desired ending inventory= (50,000*0.2)*2= 20,000 kg
To calculate the purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 59,000*2 + 20,000 - 23,600
Purchases= 114,400 kg
Total purchase cost= 114,400*8= $915,200
When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook. a) If the fixed cost in producing the bicycles is $2800, find the total cost to produce 30 bicycles. Answer: $ 4718.9869 equation editorEquation Editor b) If the bikes are sold for $200 each, what is the profit (or loss) on the first 30 bikes
The question is incomplete. The complete question is :
A manufacturer of mountain bikes has the following marginal cost function:
[tex]$C'(q)=\frac{700}{0.7q+8}$[/tex]
where q is the quantity of bicycles produced.
When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook.
a) If the fixed cost in producing the bicycles is $2800, find the total cost to produce 30 bicycles?
b) If the bikes are sold for $200 each, what is the profit (or loss) on the first 30 bikes?
Solution :
Given :
[tex]$C'(q)=\frac{700}{0.7q+8}$[/tex]
a). Fixed cost, FC = $ 2800
Total cost to produce 30 bicycles is :
[tex]$C = 2800 + \int_0^{30} C'(q) \ dq$[/tex]
[tex]$ = 2800 + \int_0^{30} \frac{700}{0.7q+8} \ dq$[/tex]
[tex]$= 2800+700\left[\frac{\ln (0.7q+8)}{0.7}\right]^{30}_0$[/tex]
[tex]$=2800+1000[\ln ((0.7 \times 30)+8)- \ln 8 ]$[/tex]
[tex]$= 2800 +1000 [\ln 29 - \ln 8]$[/tex]
= 2800 + 1287.85
= $ 4087.85
b). Total selling price = $ (200 x 30)
= $ 6000
Profit = 6000 - 4087.85
= $ 1912.15
Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April: Cutting Assembly Finishing direct materials $7,000 $10,000 $3,000 direct labor 3,000 14,000 2,000 applied overhead 4,000 5,000 6,000 There were no work in process inventories and 1,000 podiums were produced. What is the cost transferred out of the assembly department. a.$29,000 b.$43,000 c.$54,000 d.$14,000 e.None of these choices are correct.
Answer:
a. $29,000
Explanation:
With regards to the above, the cost transferred out of the assembly department is computed as;
We would sum up all the cost associated with the Assembly department.
= Direct materials + Direct labor + Overhead
Direct materials = $10,000
Direct labor = $14,000
Overhead = $5,000
Therefore, cost transfered out of the assembly department is
= $10,000 + $14,000 + $5,000
= $29,000
Gundy Company expects to produce 1,243,200 units of Product XX in 2020. Monthly production is expected to range from 79,000 to 121,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $3. In March 2020, the company incurs the following costs in producing 100,000 units: direct materials $425,000, direct labor $695,000, and variable overhead $1,005,000. Actual fixed costs were equal to budgeted fixed costs.
Required:
Prepare a flexible budget report for March.
Answer:
Gundy Company
Flexible Budget Report for the month of March, 2020:
Flexible Budget Actual Budget Variance
Direct materials $400,000 $425,000 $25,000 U
Direct labor $700,000 $695,000 $5,000 F
Overhead $1,000,000 $1,005,000 $5,000 U
Fixed Cost $632,000 $632,000 $0 None
Explanation:
a) Data and Calculations:
Expected production units for 2020 = 1,243,200
Monthly production range = 79,000 to 121,000
Budgeted variable manufacturing costs per unit are:
Direct materials $4
Direct labor $7
Overhead $10
Total variable cost $21
Budgeted fixed manufacturing costs per unit:
Depreciation $5
Supervision $3 $8
Total costs $29
Total fixed cost = 79,000 * $8 = $632,000
Actual costs incurred in March 2020:
Production units = 100,000
Direct materials = $425,000 ($4.25 per unit)
Direct labor = $695,000 ($6.95 per unit)
Variable overhead = $1,005,000 ($10.05 per unit)
Actual fixed costs = $632,000
Flexible Budget:
Direct materials $400,000 ($4 * 100,000)
Direct labor $700,000 ($7 * 100,000)
Overhead $1,000,000 ($10 * 100,000)
Fixed Cost $632,000
definition of business by different authors
Answer:
The term business has been defined by different authors from time to time as follows: “A business is nothing more than a person of group of persons properly organize to produce or distribute goods or services.
Explanation:
Answer:
The term business has been defined by different authors from time to time as follows: “A business is nothing more than a person of group of persons properly organize to produce or distribute goods or services.
Calculate the transaction value (in $ thousands) of a theoretical company based on the information provided below. Current Share Price $18.00 Shares Outstanding (Thousands) 5,000 Total Debt ($ Thousands) $3,700 Cash ($ Thousands) $2,100 Acquisition Premium 10% Review Later $82,600 $115,700 $97,600 $100,600
Answer:
The Transaction Value (in $ thousands) is:
= $97,240
Explanation:
a) Data and Calculations:
Current Share Price $18.00
Shares Outstanding (Thousands) 5,000
Total market value = $90,000 ($18 * 5,000)
Total Debt ($ Thousands) $3,700
Cash ($ Thousands) $2,100
Net liability = $1,600 ($3,700 - $2,100)
Net fair value = $88,400
Acquisition Premium 10%
Premium = $8,840 ($88,400 * 10%)
Acquisition or Transaction value = $97,240 ($88,00 * 1.1)
b) The transaction value is the acquisition value of the theoretical company.
Ruben, Gerald, and Norma all work for the same company. Gerald and Norma both evaluate the company’s financial picture, but Gerald looks at liabilities and Norma looks at expenditures. Both Gerald and Norma make reports for Ruben, who makes the decisions for the company.
Which best describes the jobs of the three employees?
Ruben is the Risk Management Specialist, Gerald is the Budget Analyst, and Norma is the Treasurer.
Ruben is the Treasurer, Gerald is the Risk Management Specialist, and Norma is the Budget Analyst.
Ruben is the Treasurer and Gerald and Norma are the Risk Management Specialists.
Ruben is the Treasurer and Gerald and Norma are the Budget Analysts.
Answer:
b:Ruben is the Treasurer, Gerald is the Risk Management Specialist, and Norma is the Budget Analyst.
Explanation:
The statement that best describes the jobs of the three employees is: b:Ruben is the Treasurer, Gerald is the Risk Management Specialist, and Norma is the Budget Analyst.
What is Treasurer, Risk management specialist and Budget Analyst?Ruben the Treasurer: A treasure is someone whose sole responsibility is:
To accept cashTo account for cash or money collectedTo manage finance etcGerald the Risk management Specialist: A risk management specialist is someone who is assign to effectively manage a company or an organization risk that can have a negative impact on the company.
Norma the Budget Analyst: A budget Analyst is someone whose duty is to evaluate and analyze a company or an organization budget.
Therefore the correct option is B.
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On January 1, 2021, Rapid Airlines issued $240 million of its 8% bonds for $221 million. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $229 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates.
Required:
Prepare the journal entries to record interest on June 30, 2021 (the first interest payment), on December 31, 2021 (the second interest payment) and to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet.
Answer:
June 30
Dr Interest expense $11,050,0000
Cr Discount on bond payable $1,450,000
Cr Cash $9,600,000
December 31, 2021
Dr Interest expense $11,122,500
Cr Discount on bond payable $1,522,500
Dr Cash $9,600,000
December 31, 2021
Dr Unrealized Holding loss -NI $1,000,000
Dr Unrealized Holding loss -OCI $9,972,500
Cr Fair value Adjustment $10,972,500
Explanation:
Preparation of the journal entries to record interest on June 30, 2021
June 30
Dr Interest expense $11,050,0000
($221 million*10%/2)
Cr Discount on bond payable $1,450,000
($11,050,000-$9,600,000)
Cr Cash $9,600,000
($240 million*8%/2)
(To record first interest payment)
Preparation of the journal entries to record interest on December 31, 2021
December 31, 2021
Dr Interest expense $11,122,500
[($221,000,000+$1,450,000)*10%/2]
Cr Discount on bond payable $1,522,500
($11,122,500-$9,600,000)
Dr Cash $9,600,000
($240 million*8%/2)
(To record second interest payment)
Preparation of the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet.
December 31, 2021
Dr Unrealized Holding loss -NI $1,000,000
Dr Unrealized Holding loss -OCI $9,972,500
($10,972,500-$1,000,000)
Cr Fair value Adjustment $10,972,500
($229 million-$221 million+$1,450,000+$1,522,500)
(To adjust the bonds to Fair value)