Answer:Please see explanation for answers
Explanation:
1. Journal to record the investment in bonds
Date Account title and explanation Debit Credit
July, 1 2018 Investment in Bonds $300,000,000
To Premium on Bond Investment $50,000,000
To Cash $350,000,000
2. To record interest on Bonds
Date Account title and explanation Debit Credit
December 31,2018 Cash $9,000,000
(300,000,000 x 6% x 6/12)
Interest Revenue
($350,000,000 × 4% x 6/12) $7,000,000
To Premium on bonds $2,000,000
3. The Amount to be reported in balance sheet is
Investment in Bonds $300,000,000
+Premium on bonds
(Original Premium $50,000,000 -Amortization (2,000,000) =48,000,000
Amount to be reported in Balance sheet= $348,000,000
4. Date Account title and explanation Debit Credit
January 2, 2019 Cash $360,000,000
To gain on sale $12,00,000 ($348,000,000 - $360,000,000)
To Investment in bonds $300,000,000
To Premium on bonds $48,000,000
which of the following is a reason to approach smaller banks for a business loan
The Davis family grows organic vegetables to sell at a local farmer’s market. Which are factors that directly affect their profit? Check all that apply.
an increase in the cost of farm equipment
a rise in demand for organic produce
an increase in customers at the market
a change in the market price for non-organic fruit
a sale on organic meats at the market
(answer is abc)
Answer:
an increase in the cost of farm equipment
Explanation:
With the Davis family continuously growing and selling vegetables they would need to repair or get new equipment
Answer:
a b c
Explanation:
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $2,000,000 at 13% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021: $5,000,000, 17% bonds $3,000,000, 13% long-term note Construction expenditures incurred during 2021 were as follows: January 1 $ 820,000 March 31 1,420,000 June 30 1,064,000 September 30 820,000 December 31 620,000 Required: Calculate the amount of interest capitalized for 2021 using the specific interest method.
Answer:
999,999,999 because we'll 999,999,999
g Customers arrive at the window at a rate of 12 per hour and it take the teller 4 minutes, on average, to serve a customer. Use this information to calculate the requested items in columns a and b. The BHFC's operations manager is considering adding a second window to this branch which would cost the bank $20,000 annually. The operations manager also estimates the bank's revenue will increase by $2,000 annually for each minute of reduction in custimer waiting time. Should the BHFC add the second window?
Answer:
The BHFC
The BHFC should add the second window as it will half customer's waiting time and increase revenue for the branch.
Explanation:
a) Data and Calculations:
Customers arrival rate at the window = 12/hour
equivalent to 12/60 minutes or 1/5 minutes
Time the teller takes to serve a customer = 4 minutes
Total time to serve 12 customers in an hour = 48 minutes
Cost of adding a second window to the branch = $20,000
Savings in reducing customer waiting time = $2,000
Average customer waiting time = 4 minutes
Total time to serve 12 customers in an hour using the second window = 24 minutes (48/2)
Therefore, customers waiting time will half to 2 minutes (4/2)
Increase in revenue by the reduction in customer waiting time = $2,000 * 24 = $48,000
Net saving = $28,000 ($48,000 - $20,000)
Present Value of Ordinary Annuity Period/Rate 5% 6% 7% 8% 9% 10 7.7217 7.3601 7.0236 6.7101 6.4177 11 8.3064 7.8869 7.4987 7.1390 6.8052 12 8.8633 8.3838 7.9427 7.5361 7.1607 13 9.3936 8.8527 8.3577 7.9038 7.4869 Knowledge Check 01 Clean Tel, Inc. is considering investing in an 11-year project with annual cash inflows of $1,000,000. These cash inflows have an initial investment of $7,139,000. At what discount rate would this present value be the same as the initial investment
Answer:
The discount rate of 8% for 11 year period provides the present value of annual cash flows to be equal to the initial investment.
Explanation:
Using the table of present value of annuity provided, we can check the rate and time period which is return the present value of cash flows from the project to be equal to initial Investment.
We are told that the Project's life is expected to be 11 Years. Thus using the 11 year period from the table we can see the following rates,
11 Year Period
Rate = 5% , Annuity Factor = 8.3064
Rate = 6% , Annuity Factor = 7.8869
Rate = 7% , Annuity Factor = 7.4987
Rate = 8% , Annuity Factor = 7.1390
Rate = 9% , Annuity Factor = 6.8052
We know that the annual cash flows from the project is $1,000,000 and we know the Initial Outlay is $7,139,000.
Multiplying the annual cash flow from the above annuity factors for each rate we can see which rate provides the present value of annual cash flows to be equal to initial outlay.
Rate = 5% , Present value = 8.3064 * 1000000 = $8,306,400
Rate = 6% , Annuity Factor = 7.8869 * 1000000 = $7,886,900
Rate = 7% , Annuity Factor = 7.4987 * 1000000 = $7,498,700
Rate = 8% , Annuity Factor = 7.1390 * 1000000 = $7,139,000
Rate = 9% , Annuity Factor = 6.8052 * 1000000 = $6,805,200
From the above calculation we can see that the rate of 8% provides the present value of annual cash flows to be equal to the initial investment.
Simon's most recent income statement is given below. Sales (8,000 units) $160,000 Less variable expenses (68,000) Contribution margin 92,000 Less fixed expenses (50,000) Net income $42,000 Required: a. Contribution margin per unit is b. If sales are doubled total variable costs will equal c. If sales are doubled total fixed costs will equal d. If 20 more units are sold, profits will increase by e. Compute how many units must be sold to break even. f. Compute how many units must be sold to achieve operating income of $60,000. g. Compute the revenue needed to achieve an after tax income of $30,000 given a tax rate of 30%.
Answer:
a. $11.50
b. $136,000
c. $50,000
d. $230
Explanation:
Contribution = sales - variable costs
Fixed costs do not vary with level of sales or production.
Bonita Industries had 80000 shares of treasury stock ($10 par value) at December 31, 2020, which it acquired at $11 per share. On June 4, 2021, Bonita issued 40000 treasury shares to employees who exercised options under Bonita's employee stock option plan. The market value per share was $13 at December 31, 2020, $15 at June 4, 2021, and $18 at December 31, 2021. The stock options had been granted for $12 per share. The cost method is used. What is the balance of the treasury stock on Bonita's balance sheet at December 31, 2021
Answer:
$440,000
Explanation:
Calculation to determine the balance of the treasury stock on Bonita's balance sheet at December 31, 2021 using The cost method
Using this formula
Treasury stock= Share of treasury stock acquired*Treasury shares
Let plug in the formula
Treasury stock= $11 per share* 40000
Treasury stock= $440,000
Therefore the balance of the treasury stock on Bonita's balance sheet at December 31, 2021 is $440,000
Net Zero Products, a wholesaler of sustainable raw materials, prepares the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 185,000 $ 100,000 $ 38,000 $ 17,000 $ 14,000 $ 16,000 Percent uncollectible 1 % 2 % 4 % 6 % 10 % 1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. 2. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $3,000 credit.
Answer:
1)
Days Past Due
Total 0 1 to 30 3 1 to 60 61 to 90 Over 90
$185,000 $100,000 $38,000 $17,000 $14,000 $16,000
1% 2% 4% 6% 10%
Bad debts $1,000 $760 $680 $840 $1,600
Total bad debt = $4,880
2)
Dr Bad debt expense 4,880
Cr Allowance for doubtful accounts 4,880
Dana Ashbrook Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $19,384 plus trade-in, f.o.b. factory. Dana Ashbrook Inc. paid $19,384 cash and traded in used equipment. The used equipment had originally cost $150,226; it had a book value of $101,766 and a secondhand fair value of $115,819, as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of $2,665.
1) Prepare the general journal entry to record this transaction, assuming that the exchange has commercial substance.
2) Assuming the same facts as in (a) except that fair value information for the assets exchanged is not determinable. Prepare the general journal entry to record this transaction.
Answer:
A) Dr Equipment $137,868
Dr Accumulated Depreciation $48,460
Cr Equipment $150,226
Cr Cash $22,049
Cr Gain on disposal $14,063
B) Dr Equipment $123,815
Dr Accumulated Depreciation $48,460
Dr Equipment $150,226
Dr Cash $22,049
Explanation:
Preparation of the journal entries
A) Dr Equipment $137,868
($115,819+$19,384+$2,665)
Dr Accumulated Depreciation $48,460
($150,226-$101,766)
Cr Equipment $150,226
Cr Cash $22,049
($19,384+$2,665)
Cr Gain on disposal $14,063
($137,868+$48,460-$150,226-$22,049)
B) Dr Equipment $123,815
($150,226+22,049-48,460)
Dr Accumulated Depreciation $48,460
($150,226-$101,766)
Dr Equipment $150,226
Dr Cash $22,049
($19,384+$2,665)
Oriole Corporation has retained earnings of $682,100 at January 1, 2020. Net income during 2020 was $1,558,700, and cash dividends declared and paid during 2020 totaled $81,300. Prepare a retained earnings statement for the year ended December 31, 2020. Assume an error was discovered: land costing $89,160 (net of tax) was charged to maintenance and repairs expense in 2019.
Answer:
$2,248,660
Explanation:
According to the scenario, computation of the given data are as follows,
Particulars Amount
Retained Earning $682,100
Correction of repairs expense (Add) $89,160
Net income (Add) $1,558,700
Dividend Paid (Less) $81,300
Net retained earning $2,248,660
Baltimore Inc. reported pretax GAAP income of $45,000 in 2020. In analyzing differences between GAAP income and taxable income, the company determined that it had deducted $5,000 in nondeductible fines and added $2,800 in tax-exempt municipal interest revenue to GAAP income. The statutory tax rate is 25%. Determine the following:
a. Taxable income
b. Income tax payable
c. Income tax expense
d. Net income
Answer:
Baltimore Inc.
a. Total taxable income = $47,200
b. Income tax payable = $11,800
c. Income tax expense = $11,250
d. Net income = $33,750
Explanation:
a) Data and Calculations:
GAAP determined pretax income = $45,000
Add nondeductible fines 5,000
Less exempt municipal interest revenue 2,800
Total taxable income $47,200
Income tax (25%) 11,800
Income tax expense:
GAAP determined pretax income = $45,000
Income tax (25%) 11,250
Net income $33,750
b) The differences between the GAAP determined pretax income and the tax determined taxable income are due to permanent differences (not temporary). This implies that there are no deferred tax assets and liabilities and no recoveries from deferred taxes. However, in reporting its financial performance for the year, Baltimore Inc. still has to comply with the GAAP rules and not the tax rules.
Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $560,000, and factory payroll cost in April is $368,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $23,000; factory rent, $39,000; factory utilities, $24,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow.
Job 306 Job 307 Job 308
Balances on March 31
Direct materials $ 31,000 $ 37,000
Direct labor 21,000 18,000
Applied overhead 10,500 9,000
Costs during April
Direct materials 135,000 200,000 $ 115,000
Direct labor 102,000 153,000 104,000
Applied overhead ? ? ?
Status on April 30 Finished (sold) Finished (unsold) In process
a. Materials purchases (on credit).
b. Direct materials used in production.
c. Direct labor paid and assigned to Work in Process Inventory.
d. Indirect labor paid and assigned to Factory Overhead.
e. Overhead costs applied to Work in Process Inventory.
f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
g. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
h. Cost of goods sold for Job 306.
i. Revenue from the sale of Job 306.
j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)
2. Prepare journal entries for the month of April to record the above transactions.
Transaction General Journal Debit Credit
a. Raw materials inventory 560,000
Accounts payable 560,000
b. Work in process inventory 450,000
Raw materials inventory 450,000
c. Work in process inventory 359,000
Cash 359,000
d. Factory overhead 23,000
Cash 23,000
e. Work in process inventory
Factory overhead
f(1). Factory overhead
Raw materials inventory
f(2). Factory overhead 24,000
Cash 24,000
f(3). Factory overhead 56,000
Accumulated depreciation-factory equipment 56,000
f(4). Factory overhead 39,000
Cash 39,000
g. Factory overhead
Work in process inventory
h. Cost of goods sold
Finished goods inventory
i. Cost of goods sold
Finished goods inventory
j. Cost of goods sold
Factory overhead
Answer:
Marcelino Co.
1. Assignment of underapplied or overapplied overhead to the Cost of Goods Sold account:
a. Materials purchases (on credit) = $560,000
b. Direct materials used in production = $450,000
c. Direct labor paid and assigned to Work in Process Inventory = $359,000
d. Indirect labor paid and assigned to Factory Overhead = $23,000
e. Overhead costs applied to Work in Process Inventory = $179,500
f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) = $196,000
g. Transfer of Jobs 306 and 307 to Finished Goods Inventory = $844,000
h. Cost of goods sold for Job 306 = $350,500
i. Revenue from the sale of Job 306 = $655,000
j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) = $16,500
2. Journal Entries:
Debit Cost of Goods Sold $16,500
Credit Manufacturing Overhead $16,500
To assign underapplied overhead to the cost of goods sold.
Journal Entries to record April Transactions:
a. Debit Raw materials inventory $560,000
Credit Accounts payable $560,000
To record the purchase of raw materials on account.
b. Debit Work in process inventory $450,000
Credit Raw materials inventory $450,000
To record the materials used in production.
c. Debit Work in process inventory $359,000
Credit Cash 359,000
To record payment for direct labor costs.
d. Debit Factory overhead $23,000
Credit Cash $23,000
To record payment for indirect labor costs.
e. Debit Work in process inventory $179,500
Credit Factory overhead $179,500
To record overhead assigned to WIP.
f(1). Debit Factory overhead $54,000
Credit Raw materials inventory $54,000
To record indirect materials used in production.
f(2). Debit Factory overhead $24,000
Credit Cash $24,000
To record payment for factory utilities.
f(3). Debit Factory overhead $56,000
Credit Accumulated depreciation-factory equipment $56,000
To record factory equipment depreciation.
f(4). Debit Factory overhead $39,000
Credit Cash $39,000
To record payment for factory rent.
g. Debit Finished Goods Inventory $844,000
Credit Work in process inventory $844,000
To record the transfer of Jobs 306 and 307 to Finished Goods Inventory.
h. Debit Cost of goods sold $350,500
Credit Finished goods inventory $350,500
To record the cost of Job 306 sold.
i. Debit Cash $655,000
Credit Sales Revenue $655,000
To record the sale of Job 306.
j. Debit Cost of goods sold $16,500
Credit Factory overhead $16,500
To assign the underapplied overhead.
Explanation:
a) Data and Calculations:
March 31 Inventory of raw materials = $90,000
Raw materials purchases in April = $560,000
Factory payroll cost in April = $368,000
Overhead costs incurred in April:
Indirect materials, $54,000
Indirect labor, $23,000
Factory rent, $39,000
Factory utilities, $24,000
Factory equipment depreciation, $56,000
Total overhead costs $196,000
Predetermined overhead rate = 50% of direct labor costs
Sale of Job 306 = $655,000
Cost Sheet:
Job 306 Job 307 Job 308
Balances on March 31
Direct materials $31,000 $37,000 $68,000
Direct labor 21,000 18,000 39,000
Applied overhead 10,500 9,000 19,500
Beginning work in process $62,500 $64,000 $126,500 $253,000
Costs during April
Direct materials 135,000 200,000 $115,000 450,000
Direct labor 102,000 153,000 104,000 359,000
Applied overhead 51,000 76,500 52,000 179,500
Total cost of production $350,500 $493,500 $397,500 $1,241,500
Status on April 30 Finished (sold) Finished (unsold) In process Total
Underapplied or Overapplied Overhead:
Actual overhead costs = $196,000
Overhead assigned = 179,500
Underapplied overhead $16,500
Jameson Corporation was organized on May 1. The following events occurred during the first month.
A. Received $67,000 cash from the five investors who organized Jameson Corporation. Each investor received 110 shares of $10 par value common stock.
B. Ordered store fixtures costing $10,000.
C. Borrowed $16,000 cash and signed a note due in two years.
D. Purchased $18,000 of equipment, paying $1,400 in cash and signing a six-month note for the balance.
E. Lent $1,700 to an employee who signed a note to repay the loan in three months.
F. Received and paid for the store fixtures ordered in (b).
Required:
Prepare journal entries for each transaction.
Answer:
Transaction A
Debit : Cash $67,000
Credit : Common Stock $67,000
Transaction B
Debit : Store fixtures $10,000
Credit : Accounts payable $10,000
Transaction C
Debit : Cash $16,000
Credit : Note Payable $16,000
Transaction D
Debit : Equipment $18,000
Credit : Cash $1,400
Credit : Note Payable $16,600
Transaction E
Debit : Note Receivable $1,700
Credit : Cash $1,700
Transaction F
Debit : Accounts Payable $10,000
Credit : Cash $10,000
Explanation:
When there is no immediate payment of cash recognize a liability accounts payable otherwise recognize cash.
Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,740 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Fixed element per month Variable element per tenant-day Revenue - $ 34.60 Wages and salaries $ 2,600 $ 7.60 Food and supplies 1,600 14.10 Facility expenses 8,100 3.10 Administrative expenses 6,600 0.10 Total expenses $ 18,900 $ 24.90 Actual results for March: Revenue $ 125,356 Wages and salaries $ 28,560 Food and supplies $ 54,875 Facility expenses $ 19,150 Administrative expenses $ 7,096 The spending variance for food and supplies in March would be closest to:
Answer:
$541 Unfavorable
Explanation:
Flexible budget for food and supplies = Fixed expenses + (Actual activity * Variable cost per tenant day)
Flexible budget for food and supplies = $1,600 + (3,740 * $14.10)
Flexible budget for food and supplies = $1,600 + $52,734
Flexible budget for food and supplies = $54,334
Spending variance = Actual results - Flexible budget
Spending variance = $54,875 - $54,334
Spending variance = $541 Unfavorable
Someone who gives money or goods to an organization
A. Donor
B. Provider
Answer:
Donor
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has any questions or problems.
4. It is the development of an ongoing connection between a company and its customers. The
relationship involves marketing communications, sales support, technical assistance and
customer service
Answer:
Customer relationship management (CRM).
Explanation:
CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction. Therefore, these employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.
This ultimately implies that, customer relationship is focused on developing an ongoing connection between a business firm (organization) and all of its customers, as well as potential customers. The fundamentals of customer relationship is based on improving marketing communications, sales support, technical assistance and customer service so as to bring satisfaction to the customers.
Hence, the degree of satisfaction received by customers throughout their lifecycle is largely dependent on customer relationship management.
Rabbit Foot Motors has been approached by a new customer with an offer to purchase 5,000 units of its hands-free, Wi-Fi-enabled automotive model—the SMAK—at a price of $18,000 per automobile. Rabbit Foot’s other sales would not be affected by this new customer offer. Rabbit Foot normally produces 100,000 units of its SMAK model per year but only plans to produce and sell 90,000 in the coming year. The normal sales price is $35,000 per SMAK. Unit cost information for the normal level of activity is as follows:
Fixed overhead will not be affected by whether or not the special order is accepted.
1. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)?
a. Special order price, direct materials, direct labor, and variable overhead.
b. Special order price, direct materials, direct labor, variable overhead, and fixed overhead
c. Normal price, direct materials, direct labor, and variable overhead.
d. Normal price, direct materials, direct labor, variable overhead, and fixed overhead.
2. By how much will operating income increase or decrease if the order is accepted?
a. increase by $_______
b. decrease by $_________
Answer: 1. Special order price, direct materials, direct labor, and variable overhead.
2. Increases by $10,000,000
Explanation:
1. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)
These include special order price, direct materials, direct labor, and variable overhead.
2. By how much will operating income increase or decrease if the order is accepted?
This will be:
= Units × (special order price-variable costs)
= 5000 × ($18000 - $10000 - $2000 - $4000)
= 5000 × $2000
=$10,000,000
Therefore, it increases by $10,000,000
Jayden, a calendar year taxpayer, paid $16,000 in medical expenses and sustained a $20,000 casualty loss in 2020 (the loss occurred in a Federally declared disaster area). He expects $12,000 of the medical expenses and $14,000 of the casualty loss to be reimbursed by insurance companies in 2021. Before considering any limitations on these deductions, how much can Jayden include in determining his itemized deductions for 2020
Answer:
$16,000;$6,000
Explanation:
Calculation to determine how much can Jayden include in determining his itemized deductions for 2020
Based on the information given he can include $16,000 of the medical expenses amount paid and $6,000 calculated as ($20,000-$14,000) of the casualty loss amount when determining his itemized deductions for the year 2020.
Therefore the amount he can include in determining his itemized deductions for 2020 are :$16,000;$6,000
Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Calculate the equivalent units of production for the year: Beginning Work in Process (30% complete, $2,500) 340 units Ending inventory of Work in Process (70% complete) 540 units Total units started during the year
Answer: See explanation
Explanation:
Your question isn't complete as you didn't provide the value for the total units started during the year. Let's assume that it is 3000.
Firstly, the units transferred for the year will be:
= Opening Stock + Total units started during the year - Ending inventory
= 340 + 3000 - 540
= 2800
Therefore, the equivalent units of production for the year will be:
= Transferred Units + (Closing work in progress × percentage of completion)
= 2800 + (70% × 540)
= 2800 + (0.7 × 540)
= 2800 + 378
= 3178
Therefore, the equivalent units of production for the year is 3178.
Which of the following is NOT an example of fixed expenses?
Select the best answer from the choices provided.
A.
Health insurance premium
B.
Interest on college loans
C.
Apartment Rent
D.
The amount of gas to fill up your tank
Answer:
A.
Health insurance premium
Explanation:
helping
Novak Corp. has 6000 shares of 5%, $100 par value, cumulative preferred stock and 12000 shares of $1 par value common stock outstanding at December 31, 2020. There were no dividends declared in 2018. The board of directors declares and pays a $55800 dividend in 2019 and in 2020. What is the amount of dividends received by the common stockholders in 2020
Answer:
See below
Explanation:
Given the above data,
Preferred shares = 6,000 shares × $100 = $600,000
Dividend on preference shares = $600,000 × 5% = $30,000 per year
Dividend declared in 2019
= $55,800
Preferred dividend in 2019 = $30,000 × 2 = $60,000
Dividend declared in 2020 =$55,800
Preferred dividend declared in 2020 = $30,000 + $4,200 = $34,200
Dividend paid to common stock holders = $55,800 - $34,200 = $21,600
Scarcity occurs when supply exceeds demand.
True of False
Answer:
false
Explanation:
demand must be greater than supply
Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 3.0 ounces $ 7.50 per ounce $ 22.50 Direct labor 0.6 hours $ 13.50 per hour $ 8.10 Variable overhead 0.6 hours $ 6.00 per hour $ 3.60 The company reported the following results concerning this product in February. Originally budgeted output 7,600 units Actual output 7,400 units Raw materials used in production 22,040 ounces Actual direct labor-hours 4,640 hours Purchases of raw materials 23,640 ounces Actual price of raw materials $ 7.25 per ounce Actual direct labor rate $ 12.10 per hour Actual variable overhead rate $ 5.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for February is:homeworklib
Answer:
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Explanation: I don’t think I can do that too much lol lol I don’t know what In is going on there and you
This entire rach of children's clothes has a 25% off sign. Can you tell me how much this coat is with the discount? It's priced at $54.99?
Answer:
41.25
Explanation:
54.99x 25=13.75 off
54.99-13.75=41.25
Connolly Company produces two types of lamps, classic and fancy, with unit contribution margins of $13 and $21, respectively. Each lamp must spend time on a special machine. The firm owns four machines that together provide 18,000 hours of machine time per year. The classic lamp requires 0.20 hours of machine time, the fancy lamp requires 0.50 hours of machine time.
How many of each type of lamp must be sold to optimize total contribution margin?
a. 90,000 classic lamps; 0 fancy lamps
b. 0 classic lamps; 9,000 fancy lamps
c. 18,000 classic lamps; 0 fancy lamps
d. 0 classic lamps; 30,000 fancy lamps
e. 10,000 classic lamps; 10,000 fancy lamps
Answer:
a. 90,000 classic lamps; 0 fancy lamps
Explanation:
To determine the optimise total contribution, we need to calculate the contribution margin per hour of machine time for both the lamps. Then the result of whichever is higher would be produced.
Moreover, as there is no limitation on how many lamps can be produced, therefore, we would assume that we can make as many as we want up to the limit of machine-hours available. The calculation is done as follows:
Contribution margin per hour of machine time for classic lamp = Contribution/machine hours to build one classic lamp
Contribution margin per hour of machine time for classic lamp = 13 / 0.2
Contribution margin per hour of machine time for classic lamp = 65
Contribution margin per hour of machine time for fancy lamp = Contribution/machine hours to build one fancy lamp
Contribution margin per hour of machine time for fancy lamp = 21 / 0.5
Contribution margin per hour of machine time for fancy lamp = 42
Since classic lamp has the higher contribution margin per hour. Therefore, all the machine hours would be used to make classic lamps.
= 18,000 / 0.2
= 90,000
Hence, 90,000 classic lamps would be sold while no fancy lamps will be sold to optimise total contribution (which would be 65 x 18,000 = $1,170,000).
You discover a technical ‘anomaly’ in the US stock market. You find that stocks that go up X% or more 2 days in a row have an expected alpha of X/100% the following day (for example if a stock goes up 6% and 9%, then the next day its expected alpha is 0.06%). Suppose stock A has a BID-ASK spread of 0.2%, and has gone up 10% and 15% percent in the last 2 days. What is your expected profit (in dollars) if you choose to implement your strategy and take a $1000 position in the stock for one day?
Answer:
expected profit = -$ 1 ( this means that you incurred a loss )
Explanation:
Given that the alpha is calculated as : X / 100%
And
stock A has a spread of = 0.2% and has gone up by 10% and 15%
The alpha = 10 / 100% = 0.10%
Hence when you take a $1000 position the profit = 1000 * (0.001 - 0.002 )
= 1000 * (-0.001 ) = -$1
Before negotiating a long-term construction contract, build- ing contractors must carefully estimate the total cost of completing the project. Benzion Barlev of New York University proposed a model for total cost of a long-term contract based on the normal distribution(Journal of Business Finance and Accounting, July 1995). For one particular construction contract, Barlev assumed total cost, x, to be normally distributed with mean $850,000 and standard deviation $170,000. The revenue, R, promised to the contractor is $1,00,000.
Required:
a. The contract will be profitable if revenue exceeds total cost. What is the probability that the co ntract will be profitable for the contractor?
b. What is the probability that the project will result in a loss for the contractor?
c. Suppose the contractor has the opportunity to renegotiate the contract. What value of R should the contractor strive for in order to have a .99 probability of making a profit?
Answer:
Benzion Barlev of New York UniversityNEGOTIATION OF A LONG-TERM CONSTRUCTION CONTRACT
a. The probability that the contract will be profitable for the contractor is:
= 81%
b. The probability that the project will result in a loss for the contractor is:
= 19%
c. The value of R that the contractor should strive for in order to have a .99 probability of making a profit is:
= $1,246,100.
Explanation:
a) Data and Calculations:
Mean total cost (x) = $850,000
Standard deviation = $170,000
Revenue = $1,000,000
Probability of being profitable = (R - x)/std deviation
= ($1,000,000 - $850,000)/$170,000
= $150,000/$170,000
= 0.882
From Z table, 0.882 = 0.81057 = 81%
Probability of loss = 19% (100 - 81%)
To have a 99% (0.99) probability of making a profit, Z value = 2.33 from the Z table:
(R - x)/std deviation = 2.33
(R - x) = 2.33 * $170,000
= $396,100
(R - $850,000) = $396,100
R = $396,100 + $850,000
R = $1,246,100
Q4) The price of a luxury car increased from 42.000 euros to 44.000 euros. Then the demand for
this car declined from 100 units to 20 units. Calculate the price elasticity of demand for the car.
Answer:
Price elasticity of demand = 28.67 (Approx.)
Explanation:
Given:
Old price of car = 42.000 euros
New price of car = 44.000 euros
Quantity of car old = 100 units
Quantity of car new = 20 units
Find:
Price elasticity of car
Computation:
Price elasticity of demand = (Percentage change in quantity)/(Percentage change in price)
Price elasticity of demand = [{(Q2-Q1)100}/{(Q1+Q2)/2}] / [{(P2-P1)100}/{(P1+P2)/2}]
Price elasticity of demand = [{(20-100)100}/{(20+100)/2}] / [{(44000-42000)100}/{(44000+42000)/2}]
Price elasticity of demand = [{-8000}/{60}] / [{200000}/{(43000}]
Price elasticity of demand = 133.33 / 4.65
Price elasticity of demand = 28.67 (Approx.)
The statement of cash flows (as well as the balance sheet) includes within cash the notion of cash equivalents. The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: 1. Obtain the relevant authoritative literature on cash equivalents using the FASB Accounting Standards Codification at the FASB website (www.fasb.org). What is the specific seven-digit Codification citation (XXX-XX-XX) that describes the guidelines for determining what items should be deemed cash equivalents
Answer: FASB ACS 305-10-20
Explanation:
The FASB Accounting Standards Codification simply refers to the source with regards to accounting principles that are generally accepted.
It should be noted that the specific seven-digit Codification citation that describes the guidelines for determining the items that should be deemed cash equivalents is FASB ACS 305-10-20. The main guideline contained here is that cash equivalents can be changes easily to cash.
Hoda is creating a report in Access using the Report Wizard. Which option is not available for adding fields using the wizard?
Tables
Queries
Reports
All are available options.
Answer:
Report is not available
Explanation:
From the given options, only the Reports is not an available option for adding fields using the wizard.
To create a report using the wizard, you have to navigate through
Create -> Reports Group -> Report Wizard
The attached image will be displayed after clicking the report wizard.
See that the available options to select are (Tables/Queries).
Hence, (c) is true