Answer:
Results are below.
Explanation:
a)
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 313,020 / 58,000
Predetermined manufacturing overhead rate= $5.4 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Standard= 5.4*26,500= $143,100
Deluxe= 5.4*31,500= $170,100
b)
First, we need to calculate the allocation rates:
Material handling= 183,750 / 1,550= $118.55 per material moves
Setup= 179,180 / 660= $271.48 per setup
Now, we can allocate overhead:
Standard= 118.55*625 + 271.48*85= $97,169.55
Deluxe= 118.55*925 + 271.48*575= $265,759.75
As 2017, Buttle Corp. has $10 par, 2% preferred stock, 6,500 shares outstanding, and $1 par common stock with 32,000 shares outstanding. The preferred stock is cumulative and preferred stockholders last received a dividend in 2014. If the company wants to distribute $4 per share to the common stockholders in 2017, what is the total amount of dividends that the company must pay at the end of the current year
Answer:
$131,900
Explanation:
Th computation of the total amount of dividend is shown below:
dividend per year for preferred stock is
= (10 × 6500) × 2%
= $1300
Now the total dividend for preferred stock is
= ($1300 × 3)
= $3900
And, the Total common dividend is
= (4 × 32,000)
= $128,000
So, the total dividend to be paid is
= $3,900 + $128,000
= $131,900
In previous years, Cox Transport reacquired 2 million treasury shares at $24 per share and, later, 1 million treasury shares at $27 per share. If Cox now sells 2 million treasury shares at $29 per share and determines cost as the weighted-average cost of treasury shares, by what amount will Cox’s paid-in capital - share repurchase increase?
Answer:
the increase in the paid in capital is $4 million
Explanation:
The computation of increase in paid in capital is shown below:
The weighted ratio is 2:1 i.e. 66.67%, 33.33%
Now weighted average price is
= (0.6667 × $24) + (0.3333 × $27)
= $25
Now the increase in paid in capital is
= ($29 - $25) × 1 million
= $4 million
Hence, the increase in the paid in capital is $4 million
Suppose the United States decides to reduce export subsidies on U.S. agricultural products, but it does not decrease taxes or increase any other government spending.
Initially, a reduction in export subsidies decreases net exports at any given real exchange rate, causing the demand for dollars in the foreign exchange market to decrease. This leads to a decrease in the real exchange rate, which, in turn, decreases imports to negate any decrease in exports, leaving the equilibrium quantity of net exports and the trade deficit unchanged at this point.
1. However, the reduction in expenditure on export subsidies ___________ the fiscal deficit, thereby ___________ public saving.
2. Indicate the effect this has on the U.S. market for loanable funds. (Supply and demand shift?)
3. Given the change in the real interest rate, show the effect this has on net capital outflow.
4. This causes the supply of dollars in the foreign exchange market to ______________, the real exchange rate to ______________, and the equilibrium level of net exports to _____________.
Answer:
1. Decrease, increase
2. Supply curve shifts to the right
3. NCO will rise
4. Real exchange rate falls and net exports rises
Explanation:
Fiscal deficit occurs when government spending's exceed government revenue. When the government lowers its export subsidies while keeping other spending's and taxes unchanged, it leads to a fall in the fiscal deficit.
1. However, the reduction in expenditure on export subsidies decreases the fiscal deficit, thereby increases public savings.
2. As public savings increase it leads to an increase in funds available to be loaned out. So the supply curve for loanable funds will shift to the right from S1 to S2. This will lead to a fall in the interest rate.
3. As we know that net capital outflow is inversely related to the interest rate. A fall in the interest rate above will lead to a rise in net capital outflow.
4. When net capital outflow increases, people move funds out of the country. Thus, supply of dollars will increase. While demand for dollars has remained unchanged, it leads to a fall in the real exchange rate. As exchange rate falls, the equilibrium level of net exports will rise.
1. Decrease, increase; 2. Supply curve shifts to the right; 3. NCO will rise;
and last 4. The real exchange rate falls and net exports rises
What is the Supply Curve?
A fiscal deficit happens when government spending surpasses government revenue.
When the government diminishes its export subsidies while maintaining different spending and taxes unchanged, it leads to a decline in the fiscal deficit.
1. However, the reduction in expense on export sponsorships decreases the fiscal deficit, thereby increasing general savings.
2. As public savings increase it rules to an increase in funds known to be loaned out. So the supply curve for loanable funds will shift to the right from S1 to S2. This will direct to a fall in the interest rate.
3. As we comprehend that net capital outflow is inversely correlated to the interest rate. A fall in the interest rate overhead will lead to a rise in the net capital outflow.
4. When net capital outflow increases, individuals transfer funds out of the country. Therefore, the supply of dollars will increase. While demand for dollars has stayed unchanged, it directs to a fall in the real exchange rate. As the conversation rate falls, the equilibrium grade of net exports will rise.
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1) The company purchased $12,100 of merchandise on account under terms 3/10, n/30. 2) The company returned $1,600 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $18,200 cash. What is the gross margin that results from these four transactions
Answer:
$8,910
Explanation:
Trading Account for the year
Sales $18,200
Less Cost of Sales
Purchases $12,100
Less Purchases Returns ($1,600)
Less Discounts Received ($12,100 x 10%) ($1,210) ($9,290)
Gross Profit $8,910
Conclusion :
thus, the gross margin that results from these four transactions is $8,910.
You are the manager of a firm that manufactures front and rear windshields for the automobile industry. Due to economies of scale in the industry, entry by new firms is not profitable. Toyota has asked your company and your only rival to simultaneously submit a price quote for supplying 100,000 front and rear windshields for its newest version of the Highlander. If both you and your rival submit a low price, each firm supplies 50,000 front and rear windshields and earns a zero profit. If one firm quotes a low price and the other a high price, the low-price firm supplies 100,000 front and rear windshields and earns a profit of $11 million and the high-price firm supplies no windshields and loses $2 million. If both firms quote a high price, each firm supplies 50,000 front and rear windshields and earns a $6 million profit. Determine your optimal pricing strategy if you and your rival believe that the new Highlander is a "special edition" that will be sold only for one year. Would your answer differ if you and your rival were required to resubmit price quotes year after year and if, in any given year, there was a 60 percent chance that Toyota would discontinue the Highlander? Explain.
Answer:
a. The optimal pricing strategy will be one-shot Nash equilibrium in which “You” charge low price, “Your Rival” charge low price and then the payoff is ($0, $0)
b. Yes, the anwer will differ becuase it is not possible to sustain the collusive outcome as a Nash equilibrium because [tex]\pi ^{Cheat}[/tex] > [tex]\pi ^{Cooperate}[/tex].
Explanation:
a. Determine your optimal pricing strategy if you and your rival believe that the new Highlander is a "special edition" that will be sold only for one year.
Note: See the attached excel file for the Representation of one shot normal for of the game played between "You" and "Your Rival" together with the payoffs.
From the attached excel file, the dominant strategy is for “You” and “Your Rival” to charge “Low Price” each. If the dominant strategy is played by “You” and “Your Rival”, the optimal pricing strategy will be one-shot Nash equilibrium in which “You” charge low price, “Your Rival” charge low price and then the payoff is ($0, $0).
b. Would your answer differ if you and your rival were required to resubmit price quotes year after year and if, in any given year, there was a 60 percent chance that Toyota would discontinue the Highlander? Explain.
When we have a year-after-year competition between “You” and “Your Rival” but with a 60 percent chance that Toyota would discontinue the Highlander, the payoffs of the firm that continue to comply with the collusive strategy of charging “High Price” by each firm under the normal trigger strategy whereby “You” and “Your Rival” agree to charge high price as long as there is no past deviation by any of the firm, otherwise charge a low price is as follows:
[tex]\pi ^{Cooperate}[/tex] = $6 + $6(100% - 60%) + $6(100% - 60%)^2 + 6(100% - 60%)^2 …….
[tex]\pi ^{Cooperate}[/tex] = $6 / 6% = $10
Therefore, what the firm that cheats earn today is $11 million and it earns $0 forever. The implication of this is that [tex]\pi ^{Cheat}[/tex] = $11
Therefore, the anwer will differ becuase it is not possible to sustain the collusive outcome as a Nash equilibrium because [tex]\pi ^{Cheat}[/tex] > [tex]\pi ^{Cooperate}[/tex].
Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows: ProductSelling Price per UnitVariable Cost per UnitFixed Costper UnitDL Hoursper UnitA (Anchor bolts)$4.00 $1.00 $2.00 2 B (Bearings)$3.50 $0.50 $2.00 2 C (Castings)$6.00 $2.00 $3.00 3 There are 150 direct labor hours available. Machine-hour capacity allows 100 anchor bolts, only; 50 bearings, only; 40 casters, only; or any combination of the three that does not exceed the capacity. The direct labor hour constraint for Harrington's linear programming model is: ___________
Answer:
Labour hours constraint : 2a + 2b + 3c ≤ 150
Explanation:
Linear programming is a mathematical model that is used to solve a problem when a firm wants to maximize profit in the midst of multiple resource constraints.
The following steps should be followed:
Step 1: Define the variables
a= the units of product Anchor
b= the units of product Bearing
c= the units of product Casting
Step 2: Define the constraints:
The constraints represent the limitations which could be resource; in this case machine hours and direct labour hours. Since the constraint in focus is labour hours , so we only consider it.
Subject
Constraints: Labour hours : 2a + 2b + 3c ≤ 150
Non-negativity constraints a, b , c ≥ 0
Since the total available labour hours is 150 hours then the total consumption hours can either be equal to or less than 150, but can never be higher than 150.
The labour hours constraint is represented by 2a + 2b + 3c ≤ 150
Quaker State Inc. offers a new employee a single-sum signing bonus at the date of employment. Alternatively, the employee can receive $10,000 at the date of employment plus $40,000 at the end of each of his first two years of service. Assuming the employee's time value of money is 9% annually, what lump sum at employment date would make him indifferent between the two options
Answer:
$80.364.45
Explanation:
The lump sum that would make the employee indifferent can be determined by calculating the present value of the annuity
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 0 = $10,000
Cash flow in year 1 = $40,000
Cash flow in year 2 = $40,000
I = 9%
PV = $80,364.45
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Rupali’s financial advisor tells her that she needs a personal balance sheet. Rupali has no idea what this is. What should the financial advisor tell her about a personal balance sheet?
a) Her bank can print one out for her if she requests it.
b) Emergency expenses are listed at the top of this document.
c) It ultimately will show her what her net worth totals.
d) It describes her cash flow situation over the past few months.
Answer:
d) It describes her cash flow situation over the past few months.
Explanation:
Balance sheet is a statement of account of an individual, which showcases the cash flow situation of that particular individual. That is, the debt and the credit associated with the bank account statement of the individual in question.
It is used to keep track of the financial growth and net-worth which helps in making a balanced decision. In her case, assuming she is applying for a loan, the cash flow situation of hers would enable the financial advisor in a bank to be clear on the actual amount she could eligible to get as a loan.
Answer:
It ultimately will show her what her net worth totals.
Explanation:
Correct for Gradpoint
The management of Gibraltar Brokerage Services anticipates a capital expenditure of $26,000 in 2 yr for the purpose of purchasing new computers and has decided to set up a sinking fund to finance this purchase. If the fund earns interest at the rate of 11%/year compounded quarterly, determine the size of each (equal) quarterly installment that should be deposited in the fund. (Round your answer to the nearest cent.)
Answer:
$2,949.91.
Explanation:
The size of the quarterly installment can be determined by finding the (Payment) PMT amount using tie value of money principles.
Here I used a financial calculator to set my values and calculate PMT as :
PV = $0
N = 2 x 4 = 8
P/yr = 4
I = 11 %
FV = $26,000
PMT = ?
Therefore the (Payment) PMT is $2,949.91. The size of each (equal) quarterly installment should be $2,949.91.
which activity is an economic activity?
a / watching tv
b / reading a book
c / playing video games
d / helping a friends decorate for a party
e / selling vegetables and fruits
Answer:
e
Explanation:
by buying goods you are stimulating the economy
A portfolio manager plans to use a Treasury bond futures contract to hedge a bond portfolio over the next three months. The portfolio is worth $100 million and will have a duration of 5.6 years in three months. The futures price is 112, and each futures contract is on $100,000 of bonds. The bond that is expected to be cheapest to deliver will have a duration of 9.0 years at the maturity of the futures contract. What position in futures contracts is required
Answer: 556
Explanation:
The position in futures contracts that is required will be calculated thus:
= (100,000,000 × 5.6) / (112,000 × 9)
= 560,000,000 / 1,008,000
= 555.5
= 556 approximately
Therefore, based on the calculation, the answer is 556.
Q 10.7: Melbee Farms is considering purchasing a new combine that would help them finish their harvesting faster, thus allowing them to pick up extra revenue by doing custom combining for other farmers. The combine and headers cost $487,000. They expect to have net cash flows of $157,000 in year 1, $182,000 in year 2, $202,000 in year 3, and $213,000 in year 4. If they discount the cash flows by 7%, what is the discounted payback period for the combine
Answer:
Discounted payback period= 3 years 1 month
Explanation:
The discounted payback period is the estimated length of time in years it takes the present value of net cash inflow from a project to equate the net cash the initial cost
To work out the discounted payback period, we will compute present value of the cash inflow and then determine how long it will take for the sum to be equal to the initial cost. This is done as follows:
Year Cash flow DF Present value
0 487,000 × 1 = (487,000)
1 157,000 × 1.07^(-1) = 146,729.0
2 182,000 × 1.07^(-2) = 158965.8
3 202,000 × 1.07^(-3) = 164,892.2
4 213,000 × 1.07^(-4) =162,496.7
Total PV for 2 years = 146729 +158965+164892= 470587.0
Balance of cash flow remaining to equal = 487,000-470587 = 16413.0
Discounted payback period = 3 years + 16413.0 /162,496.7 × 12 months
= 3year , 1.2months
Discounted payback period= 3 years 1 month
Alex has saved $30 per week to buy a new Blu-Ray player. He compares two different models: a Panaview that is priced at $130 and a Zony model that is priced at $140. Alex decides to purchase the Zony Blu-Ray player for $140 Identify what role money plays in each of the following parts of the story. Hint: Select each role only once.
Role of Money Medium of Exchange Unit of Account Store of Value
Alex can easily determine that the Panaview model has a lower price than the Zony model.
Alex saved $30 per week.
Alex pays $140 for the Blu-Ray player
Answer and Explanation:
The classification is as follows:
Alex could easily measured that Panaview have the less price - Unit of account as the money represent the measurement of unit of price
Alex saved $30 per week - Store of value as Alex is saving for use the money in near future
Alex pays $140 - Medium of exchange. In this alex would pay the money to purchase the Blu-ray
Which of the following actions should the customer support manager take to best motivate these employees? Share trends in average customer ratings at quarterly staff meetings, emphasizing the importance of customer satisfaction. Each year, hold an award ceremony and give a bonus to the employee who has served the highest volume of customers and the one who has the highest average customer ratings. Track a great deal of data on customer interactions and send it to a consultant for detailed analysis, which can help improve procedures. Place a widget on employees’ computer screens that flashes a happy face every time the average customer wait is less than 2 minutes.
Answer: Place a widget on employees’ computer screens that flashes a happy face every time the average customer wait is less than 2 minutes.
Explanation:
Good emotional display go a long way in encouraging people who work for an organization and it in turn reflects on how well they would treat the customer's. Employees are further encouraged when they are not under excessive pressure by either employer or the customer's but are rather given an environment void of worries, it helps them respond well and carefully. The customer support manager placing a widget on employees’ computer screens that flashes a happy face every time the average customer wait is less than 2 minutes sends a relief message to the employees to carry out their work with ease.
which of the following users of accounting information are interested in the quality of a company assets?
a government agencies
b loan creditors
c employees
d public
Answer:
D
Explanation:
Well public is all about quality
Valentina recently made a friend from another country who works as a buyer at a large business firm. They get together with a group of friends and have a fun time hanging out. Valentina works at a computer firm, and when she finds out her friend's firm is looking to purchase new computers, she schedules an appointment with her friend. When they get together, Valentina is surprised when her friend quickly kisses her on both cheeks as a form of greeting. She is not sure what to do in return. This type of _________________ is not common in the United States as a form of greeting among new friends or business associates. Group of answer choices tactile communication integrated marketing communication kinesic communication proxemic communication paralinguistic
Answer:
Tactile communication
Explanation:
Options are: "a. kinesic communication b. integrated marketing communication c. paralinguistic d. proxemic communication e. tactile communication"
This type of tactile communication is not common in the United States as a form of greeting among new friends or business associates. Tactile communication is a form of non-verbal communication in which the sender sends the message either by a handshake, kiss or simply by appropriate touching to the receiver. In this case, the friend kissed Valentina this is a form of tactical communication.
A- Tactile communication is not a common practice in the America as they are known to be more subtle and direct in their way of communication and most of their communication is straight.
The tactile communication is a way of greeting and talking by means of non-verbal communication. The way of this communication is mostly not accepted in the countries with a developed or a developing status.
When Valentina was greeted in this way she could simply respond in the most comfortable manner by giving more focus on the matter of the meeting and not the way she is greeted.Valentina also could ask about the correct way of responses she could give talking to him. She could also respond that if she likes or dislikes the way she has been greeted.Tactile communication is the way of communicating with other person by way of gestures rather than verbal ones. Like shaking hands, kissing, wink an eye.Hence, the correct option is A that the tactile communication is not an adopted way of communication in the united states.
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This year Randy paid $28,900 of interest on his residence. (Randy borrowed $462,000 to buy his residence, and it is currently worth $512,000.) Randy also paid $2,800 of interest on his car loan and $4,650 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances
Answer:
a. Interest Deductible = $31,100
b. Interest Deductible = $28,900
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
This year Randy paid $28,900 of interest on his residence. (Randy borrowed $462,000 to buy his residence, and it is currently worth $512,000.) Randy also paid $2,800 of interest on his car loan and $4,650 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances?
a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.
Interest Deductible $.......
b. Randy had no investment income this year, and his AGI is $75,000.
Interest Deducttible $.......
The explanation of the anwer is now given as follows:
a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.
Randy may choose to deduct the interest of $28,900 on his residence as an itemized deduction.
The $2,800 of interest on his car loan is a nondeductible personal interest.
The $2,200 interest income received can be regarded as an investment income.
The $4,500 margin interest to his stockbroke is likely investment interest. But since Randy has only $2,200 interest income, his deduction is limited to the $2,200.
Therefore, we have:
Interest Deductible = Interest on his residence + $2,200 = $28,900 + $2,200 = $31,100
b. Randy had no investment income this year, and his AGI is $75,000.
Since there is no investment income, Randy can only dedcut the interest of $28,900 on his residence based on the explanation in part a above.
Therefore, we have:
Interest Deductible = $28,900
What macroeconomic goal is Real GDP used to measure for?
Answer:
"Economic growth " would be the correct answer.
Explanation:
Throughout a particular year, real GDP tests the overall production as well as commodities of the economy, including light of the price adjustments.People should measure or equate GDP throughout the year as inflation would be factored into the equation which would be a fair predictor about wherever the market cycle goes.Thus the above is the right answer.
If the denominator activity is less than the standard hours allowed for the actual output, one would expect that: Multiple Choice the variable overhead efficiency variance would be unfavorable. the fixed overhead volume variance would be favorable. the fixed overhead budget variance would be unfavorable. the variable overhead efficiency variance would be favorable.
Answer:
The variable overhead efficiency variance would be favorable.
Explanation:
Variable overhead efficiency variance: Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.
Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance
A favourable variance would occurs when actual hours is less than the standard hours allowed for the actual output.
The variance in Dollars is the difference in actual hours and standard hours for actual output multiplied by the standard variable overhead rate
Suppose that Nevada Co., a US-based MNC, makes regular, monthly purchases of materials from a German supplier named Spicurity. These regular payments are typically in the amount of 300,000 euros. Last month the exchange rate was $1.93 per euro. Nevada Co. only has cash reserves in dollars, while Spicurity only has cash reserves in euros. Suppose both companies use the same bank.
In order to conduct this transaction last month, Nevada Co.
Required:
a. $_____ to pay for the materials. Thus, the bank handling the transaction reduced Nevada’s account by this amount, denominated in
b. __________( euros OR dollars). The bank then converted this amount to c. ___________ d. ________________( euros OR dollars). and credited it to Spicurity’s account.
Answer:
In order to conduct this transaction last month, Nevada Co.
Required:
a. $_579,000____ to pay for the materials. Thus, the bank handling the transaction reduced Nevada’s account by this amount, denominated in
b. __dollars___( euros OR dollars). The bank then converted this amount to c. ___euros________ from d. ______dollars_____( euros OR dollars). and credited it to Spicurity’s account.
Explanation:
a) Data and Calculations:
Importer = Nevada Co., a US-based MNC
Exporter = Spicurity, a German supplier
Amount of regular payments = 300,000 euros
Exchange rate = $1.93 per euro
Amount in dollars = $579,000 (300,000 euros * $1.93)
b) To convert to dollars from euro, when the exchange rate is $1.93 per euro, we multiply the euro-based amount by the exchange rate. To convert the dollars to the euro, we divide by the exchange rate. To multiply or divide depends on which currency has a higher value (e.g. euro vs dollars).
Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 29 percent for the next three years, with the growth rate falling off to a constant 6.3 percent thereafter.
If the required return is 15 percent and the company just paid a dividend of $2.90, what is the current share price?
Biarritz Corp. now has a share price of $84.55.
The dividend will grow by 29 percent yearly over the following three years. the following dividends will be paid throughout the first three years:
Dividend for year 1 equals $2.90 times (1 + 29%) to equal $3.75.
Dividend for year 2 equals $3.75 x (1 + 29%) = $4.84
Dividend for year 3 equals $4.84 times (1 + 29%), which equals $6.25.
The rate of dividend growth will eventually slow to a steady 6.3% after three years. the dividend growth formula can be used to determine the dividend for the upcoming year.
Dividend for year 4 equals $6.25 times (1 + 6.3%), or $6.65. The dividend will increase at a 6.3 percent annual pace after the fourth year. The dividend for year five will therefore be $6.65 times (1 + 6.3%) = $7.08
Dividend for year 1 divided by year 2 divided by dividend for year 1 divided by dividend for year 2Dividend for year n+1 = (1 + r) + 2 +...n+1 ÷ (r - g) Where,g = the dividend growth rate and r = the needed rate of return
Dividends for the first year were $3.75,
The second was $4.84, the third was $6.25, and the fourth was $8.00. Dividend for year 5 is $7.08, with r = 15%g = 29% for years 1 through 3 and 6.3% after that.
Consequently, the share price of Biarritz Corp. is currently $84.55.
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Topic: How Banks Create Money
Skill: Definition
33) Suppose the required reserve ratio is 20%, A $40 million cash deposit will, at most, allow an
expansion of the money supply to
Answer:
$200 million
Explanation:
Increase in the total value of checkable deposit is determined by the money multiplier
Money multiplier = amount deposited /required reserve requirement
Required reserve requirement is the percentage of deposits required of banks to keep as reserves by the central bank
$40 million / 0.2 = $200 million
Reddy Corporation has collected the following data for the month of June: Actual total factory overhead incurred $61,150 Budgeted fixed factory overhead costs $40,700 Activity level, in direct labor hours 14,800 Actual direct labor hours 17,800 Standard hours for output this period 16,800 Total factory overhead rate $4.30 What is the variable overhead efficiency variance
Answer:
Variable overhead efficiency variance = $8,600 favorable
Explanation:
Variable overhead efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours for same multiplied by the standard variable overhead rate
Variable overhead efficiency variance is determined as follows:
Hours
standard hours for actual output 16,800
Actual hours 14,800
Efficiency variance 2,000 favorable
× standard variable OH rate × $4.30
Variable overhead efficiency variance ($) $8,600 favorable
Marcy wanted to buy Lucy's land and use it to breed small pigs to be kept as pets. Marcy told Lucy that having water on the property was very important. Lucy assured her that a spring ran through one corner of the property. Therefore, Marcy agreed to buy the farm. Although she did not ask Lucy anything about it, Marcy, who loved pigs, assumed that the neighbors would be pleased with the pigs being in the area. In a separate contract, Lucy also agreed to sell Marcy a used truck for $5,000. After the contract for the land sale was entered into, it was discovered that actually the spring did not run through the corner of Lucy's property. The area in which the spring ran actually belonged to a neighbor. Additionally, when Lucy brought Marcy the used truck, Marcy said, "That's not the truck!" It was discovered that Lucy, who had two trucks, thought that Marcy had bought the older truck when Marcy thought she had purchased the newer truck. Marcy was also surprised when she received a petition signed by all surrounding landowners objecting to the presence of the pigs and threatening to sue Marcy for nuisance. Which of the following would be the result if Marcy attempts to rescind the contract and recover damages only on the basis of the neighbors' objection to a pig farm?
1) Marcy may rescind the contract and recover damages because Lucy made an implied misrepresentation.
2) Marcy may rescind the contract, but she may not recover damages because the situation involved a mutual mistake.
3) Marcy may recover damages, but she may not rescind the contract because Lucy made an implied misrepresentation.
4) Marcy may not rescind the contract or recover damages because Marcy made a unilateral mistake.
5) Marcy may rescind the contract, but she may not recover damages because Marcy made a unilateral mistake.
Answer:
5. Marcy may rescind the contract , but she may not recover damages because the situation involved unilateral mistake.
Explanation:
In the given situation marcy could be able to rescind the contract but she could not claim for the damages as the given situation represent the unilateral mistake that means one party mistake. If the mistake is of both the parties than she is able to recover the damages
But in this case this would cant be happen
hence, the last option is correct
Consider two perfectly negatively correlated risky securities, A and B. Security A has an expected rate of return of 12% and a standard deviation of return of 17%. B has an expected rate of return of 9% and a standard deviation of return of 14%.
Required:
a. What are the weights of A and B in the global minimum variance portfolio respectively?
b. What is the rate of return on the risk-free portfolio that can be formed with the two securities ?
Answer:
A) Weight of Security A = 0.45
Weight of Security B = 0.55
B)Risk free rate = 10.35%
Explanation:
We are given;
A) Expected rate of return for Security A; ERR = 12%
Standard deviation of return for Security A; SD = 17%
Expected rate of return for Security B; ERR = 9%
Standard deviation of return for Security B; SD = 14%
Now, formula for weight of Security A is;
Weight of security A = SD of security B ÷ (SD of security B + SD of security A)
Weight of Security A = 14%/(14% + 17%)
Weight of Security A ≈ 0.45
Weight of Security B = 1 - weight of Security A
Weight of Security B = 1 - 0.45
Weight of Security B = 0.55
B) Formula for the risk free rate is;
Risk free rate = (weight of Security A × ERR of security A) + (weight of Security B × ERR of security B)
Risk free rate = (0.45 × 12%) + (0.55 × 9%)
Risk free rate = 10.35%
Jim is a manager of a restaurant. He is very concerned with efficiency and goal accomplishment as well as very intent on making employees happy through lots of participation and open-mindedness. Whats the answer?
A. Jim is a high-high style leader.
B. Jim is low in initiating structure and high in consideration.
C. Jim is an impoverished leader.
D. Jim is a compromiser.
Answer:
A. Jim is a high-high style leader.
Explanation:
As in the given situation it is mentioned that Jim would be very concerned with the efficiency and the accomplishment of the goal so this means he is a high-high style leader as these type of leaders would try to collaborate and cooperate in order to motivate for work in an efficient manner so that the company goals could be achieved
hence, the first option is correct
The Technology department at Watkins Transit has a budgeted annual cost of $65,000. The department has a capacity to handle 250 work stations per year. Currently, purchasing, shipping, and administrative departments have 20, 45, and 135 work stations, respectively. If practical capacity is used to allocate costs, how much cost is allocated to shipping
Answer: $14,625
Explanation:
Based on the information given, if practical capacity is used to allocate cost, the cost that is allocated to shipping will be:
= Budgeted annual cost/200 × Number of shipping work stations
= 65000/200 × 45
= $14,625
Cost Allocation is the process of allocating an item of cost to an item of cost, which is directly followed. The cost that is allocated to shipping will be $14,625.
What is called costs allocation?
Cost Allocation is the process of identifying, accumulating, and allocating costs to expense items such as departments, products, systems, and many others.
Based on the information given, if practical capacity is used to allocate cost, the cost that is allocated to shipping will be:
[tex]\rm\, Cost \;that \;is \; allocated \; to \;shipping = \rm\, \frac{ \;Budgeted \; Annual \;Cost}{200} \times \;Number \;of \; shipping \;work \;stations\\\\= \dfrac{65000}{200} \times 45\\\\= \$14,625[/tex]
Hence, the cost that is allocated to shipping is $14,625.
To learn more about costs allocation, refer:
https://brainly.com/question/26978647
The double-entry principle in the balance-of-payments
How will the following transactions affect the U.S. balance-of-payments? For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit
Transaction Account with Account with
Credit Debit
Miguel, a U.S. resident, buys an HDTV set for
$2,500 and sends it to Mexico as a gift to his parents.
Arielle, a French tourist, stays at a hotel in San
Francisco and pays $400 for it with her debit
card issued by a French bank.
A U.S. computer manufacturer purchases hard
drives from a Korean company, paying the funds
from its bank account in Korea.
Answer:
The Current account is for goods and services.
The Financial account is for exchange of currencies and financial assets across countries.
Miguel, a U.S. resident, buys an HDTV set for $2,500 and sends it to Mexico as a gift to his parents. DEBIT CURRENT ACCOUNT. CREDIT CURRENT ACCOUNT.
Miguel buys the good in the U.S. and then sends it so this falls under the current account alone.
Arielle, a French tourist, stays at a hotel in San Francisco and pays $400 for it with her debit card issued by a French bank. DEBIT FINANCIAL ACCOUNT. CREDIT CURRENT ACCOUNT.
The Financial account should be debited to show that currency is coming into the U.S. from outside the country and current account should be credited for services rendered.
A U.S. computer manufacturer purchases hard drives from a Korean company, paying the funds from its bank account in Korea. DEBIT CURRENT ACCOUNT. CREDIT FINANCIAL ACCOUNT.
Current account should be debited to reflect that goods are coming into the country but the financial account should be credited to show that currency is leaving the ownership of an American entity so it is passing out of American hands.
Bushard Company (buyer) and Schmidt, Inc. (seller) engaged in the following transactions during February 2019:
Bushard Company
DATE TRANSACTIONS
2019
Feb. 10 Purchased merchandise for $5,000 from Schmidt, Inc., Invoice 1980, terms 1/10, n/30.
13 Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling $200 that was returned; the goods were purchased on Invoice 1980, dated February 10.
19 Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010. Schmidt, Inc.
DATE TRANSACTIONS
2019
Feb. 10 Sold merchandise for $5,000 on account to Bushard Company, Invoice 1980, terms 1/10, n/30.
13 Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling $200 that was returned; the goods were purchased on Invoice 1980, dated February 10.
19 Received payment from Bushard Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.
Required:
Journalize the transactions above in a general journal for both Bushard Company and Schmidt, Inc.
Answer:
Bushard Company (buyer) and Schmidt, Inc. (seller)
Journal Entries:
Bushard Company
Feb. 10 Debit Inventory $5,000
Credit Accounts payable (Schmidt, Inc.) $5,000
To record the purchase of goods on account, via Invoice 1980, terms 1/10, n/30.
13 Debit Accounts payable (Schmidt, Inc.) $200
Credit Inventory $200
To record the return of damaged goods and received Credit Memorandum 230.
19 Debit Accounts payable (Schmidt, Inc.) $4,800
Credit Cash $4,752
Credit Cash Discounts $48
To record the payment on account and discounts.
Schmidt, Inc.
Feb. 10 Debit Accounts receivable (Bushard Company) $5,000
Credit Sales revenue $5,000
To record the sale of goods on account, Invoice 1980, terms 1/10, n/30.
13 Debit Sales returns $200
Credit Accounts receivable (Bushard Company) $200
To record the return of damaged, issuing Credit Memorandum 230.
19 Debit Cash $4,752
Debit Cash Discounts $48
Credit Accounts receivable (Bushard Company) $4,800
To record the receipt of cash from customer, including discounts.
Explanation:
a) Data and Analysis:
Bushard Company
Feb. 10 Inventory $5,000 Accounts payable (Schmidt, Inc.) $5,000, Invoice 1980, terms 1/10, n/30.
13 Accounts payable (Schmidt, Inc.) $200 Inventory $200 Credit Memorandum 230, damaged merchandise.
19 Accounts payable (Schmidt, Inc.) $4,800 Cash $4,752 Cash Discounts $48
Schmidt, Inc.
Feb. 10 Accounts receivable (Bushard Company) $5,000 Sales revenue $5,000, Invoice 1980, terms 1/10, n/30.
13 Sales returns $200 Accounts receivable (Bushard Company) $200 Credit Memorandum 230, damaged merchandise.
19 Cash $4,752 Cash Discounts $48 Accounts receivable (Bushard Company) $4,800
Department A had no Work-in-Process at the beginning of the period, 4,400 units were completed during the period, 540 units were 50% completed at the end of the period, and the following manufacturing costs were debited to the departmental Work-in-Process account during the period: Direct materials (1,540 at $10) $ 15,400 Direct labor 32,173 Factory overhead 25,735 Assuming that all direct materials are added at the beginning of production and Department A uses weighted-average process costing, what is the total cost of the departmental Work-in-Process Inventory at the end of the period
Answer:
the ending inventory is $8,748
Explanation:
The computation of the total cost of the departmental Work-in-Process Inventory at the end of the period is shown below:
Materials is $10 per unit
And, the conversion cost is
= ($32,173 + $25,735) ÷ (4,400 units + 540 units ÷ 2)
= $57,908 ÷ 4,670
= $12.4
Now the ending inventory is
= 540 units × $10 per unit + 270 units × $12.4
= $8,748
Hence, the ending inventory is $8,748