Answer: less than; higher
Explanation:
Since the unemployment rate is greater than the natural rate of unemployment, the economy's actual GDP will be less than potential GDP.
...the jobless rate among workers with only a high school diploma has tended to be higher than the jobless rate among college graduates.
When the economy is at its natural rate of unemployment, it means that the economy is producing at potential GDP. If however, the unemployment rate is more than this natural rate, it means that the economy is facing a downturn which is causing companies to not employ as much labor. Actual GDP is therefore lower than Potential GDP.
Workers with more specialized skills will usually feel the impact of an increase in unemployment less those with more general skills will. For this reason, college graduates will see less unemployment than those with only a high school diploma.
Which of these statements is true?
Answer:
The answer is C.
Help me ASAP. 50 Points.
How is social and domestic policy created and implemented? How involved should govemment be in solving various problems in our country? That is an enduring issue in the United States. For each of the examples, decide whether the hypothetical problem should be solved by (a) government, (b) government and the private sector acting together, or (c) the private sector (business and/or charity). Give your reasons for each. •A few ships have crashed near a harbor because it lacks a working lighthouse Americans' health is declining due to poor nutrition. Many high school graduates do not have the skills needed to be successful in the workforce . Sometimes, farmers or ranchers lose an entire crop or herd to bad weather. Such a loss can bankrupt a small farm. An alarming number of people have been injured while using chainsaws • Home prices fell sharply in some cities and many homeowners could not afford to pay their mortgages. • Fast-food workers complain that their pay-generally the federal minimum wage-is not enough to support their families • A business cannot market its products effectively because it does not have current information about the demographics of the community
Answer:
Explanation:
A process includes 9 tasks and there are 3 workers. Each task can be assigned to only one worker and each worker must be assigned consecutive tasks.
The time to complete tasks 1 to 9( in seconds) are as follows: 45 55 15 25 50 5 30 95 50
What is the capacity of this process in units per hour?
Answer:
24.8 per hour
Explanation:
There are 3 workers and hence are three workstations. Consecutive activities are assigned to each workstation such that workload is as uniform as possible
Hence the time in each workstation (WS) is,
WS1 = 45+55+15 = 115 seconds
WS2 = 25+50+5+30 = 110 seconds
WS3 = 95+50 = 145 seconds
Workstation 3 has the highest processing time and hence is the bottleneck and determines the capacity of the process
Therefore capacity = 1/145 per second = 3600/145 per hour = 24.8 per hour
There are 3 workers and hence are three workstations. Consecutive activities are assigned to each workstation such that workload is as uniform as possible
Hence, the time in each workstation (WS) is,
WS1 = 45+55+15 = 115 seconds
WS2 = 25+50+5+30 = 110 seconds
WS3 = 95+50 = 145 seconds
Workstation 3 has the highest processing time and hence is the bottleneck and determines the capacity of the process,
Therefore, capacity = 1/145 per second = 3600/145 per hour
= 24.8 per hour
What is capacity?
The capacity is the ability to contain or deal with something. It describes your ability to do something or the amount something can hold.
If your bird cage is at full capacity, you can't stuff one more feathered friend in there without causing birdie claustrophobia.
Thus, the capacity of this process in units per hour is 24.8 per hour
Learn more about capacity here,
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Required: a. - d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 30,000 and 32,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 32,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.,
Answer:
Favorable $16,000
Explanation:
Volume Variance : ( Actual production Units - Budgeted Units ) * Cost per unit
Volume Variance = (32,000 - 30,000) * $8 per unit
Volume variance = $16,000 Favorable
Volume variance is the measure of the units produced in comparison with the budgeted units. The favorable variance is one when actual units produced are more than budgeted.
Multiplication. Phyllis, who is 30 years old, works for We Add for You Accounting. Phyllis has worked there for a number of years and is considering quitting in order to spend more time with her three active triplets, Sunny, Fussy, and Perky. She asks her boss, Bolivar, about the pension plan at We Add for You. Her boss tells her that she is not entitled to that information until she is at least 60 years old. Phyllis also asks about retaining her medical insurance protection if she quits and is told that she would have no right to do so. Bolivar also throws in that he has been monitoring her conversations and that he particularly enjoys the conversations between her and her single female friends involving failed dating experiences. He asks her to keep those up. Phyllis tells him that her personal phone calls are none of his business. Bolivar says that he can listen if he wants because the phones are his. Phyllis ends up starting her own company called We Multiply for You, and makes much, much more money. (In answering the following questions, assume all federal laws apply and that any pension and medical plan qualifies for regulation under federal law.) Which of the following addresses the retention of medical benefits upon leaving a job?
a. The Medical Benefits Retention Act (MBRA)
b. The Comprehensive Medical Benefits Retention Act (CMBRA)
c. The Consolidated Omnibus Budget Reconciliation Act (COBRA)
d. The Health and Maintenance Act (HMA)
e. The Americans with Disabilities Act (ADA)
Answer:
c. The Consolidated Omnibus Budget Reconciliation Act (COBRA)
Explanation:
The act was created and implemented in the year 1985 and that was passed by Congress. In this act it create and retains the medical benefits after leaving the job.
So according to the question the act that should be retained medical benefits upon leaving the job is COBRA
Hence, the correct option is c.
g You have been hired to value a new 25-year callable, convertible bond with a par value of $1,000. The bond has a coupon rate of 6 percent, payable annually. The conversion price is $180 and the stock currently sells for $42.10. The stock price is expected to grow at 10 percent per year. The bond is callable at $1,200; but based on prior experience, it won't be called unless the conversion value is $1,300. The required return on this bond is 8 percent. What value would you assign to this bond
Answer:
The value that would be assigned to this bond is $1,209.36.
Explanation:
From the question, we have:
n = Number of years = 25
FV = Future value = $1,000
PMT = Coupon payment = Coupon rate * FV = 6% * $1000 = $60
r = required return rate = 8%, or 0.08
CP = Conversion price = $180
P = Current selling price = $42.10
t = number of years the bond will be called = ?
PV = [(PMT / r) * (1 - (1 / (1 + r)^n))] + (FV / (1 + r)^n) = [(60 / 0.08) * (1 - (1 / (1 + 0.08)^25))] + (1000 / (1 + 0.08)^25) = $786.50
Therefore, we have:
PV = Current value of the bond = $786.50
CR = Conversion ratio = FV/CP = 1000 / 180
CV = Conversion value = P * CR = $42.10 * (100 / 180) = $23.39
CCP = Current conversion price = CV = $23.39
CPB = Conversion price at which Bond will be called = $1,300
Therefore. we have:
CCP * CR^t = CPB ................... (1)
Substitute relevant values into equation (1) and solve for t, we have:
$23.39 * (1000 / 180)^t = $1,300
23.39 * 5.56^t = 1,300
5.56^t = 1,300 / 23.39
t = ln(1,300 / 23.39) / ln(5.56)
t = 2.34 years
Therefore, we have:
Value assigned to the bond = PV = [(PMT / r) * (1 - (1 / (1 + r)^t))] + (CPB / (1 + r)^t) = [(60 / 0.08) * (1 - (1 / (1 + 0.08)^2.34))] + (1300 / (1 + 0.08)^2.34) = $1,209.36
Stage 2 ABC for a Wholesale Company Information is presented for the activity costs of Oxford Wholesale Company: Activity Cost per Unit of Activity Driver Customer relations per month $95.00 per customer Selling 0.11 per sales dollar Accounting 5.00 per order Warehousing 0.50 per unit shipped Packing 0.25 per unit shipped Shipping 0.20 perpound shipped
The following information pertains to Oxford Wholesale Company’s activities in Massachusetts for the month of March 2014:_______.
Number of orders 240
Sales revenue $124,400
Cost of goods sold $ 68,940
Number of customers 30
Units shipped 4,700
Pounds shipped 70,500
Required:
Determine the profitability of sales in Massachusetts for March 2014.
Answer: $20,101
Explanation:
Profitability of sales = Sales revenue - Cost of goods sold - Activity costs
Activity costs = Customer relation cost + Selling costs + Accounting + Warehousing + Packing + Shipping
= (95 * 30) + (0.11 * 124,400) + (5 * 240) + (0.5 * 4,700) + (0.25 * 4,700) + (0.2 * 70,500)
= $35,359
Profitability of sales = 124,400 - 68,940 - 35,359
= $20,101
Banks are financial intermediaries that: have customer deposits as its primary asset and loans to borrowers as their primsry liability. have customer deposits as its primary asset and loans to borrowers as their primsry liability. provide liquid assets to lenders and long-term financing to borrowers. provide liquid assets to lenders and long-term financing to borrowers. are types of mutual fimds. are types of mutual fimds. have customer deposits as its primary asset and that provide liquid assets to lenders. have customer deposits as its primary asset and that provide liquid assets to lenders. ncrease transaction costs to both borrowers and depositors.
Answer:
have customer deposits as its primary asset and loans to borrowers are their primary liabilities.
Explanation:
Bank are the institution which provide liquid asset to borrowers and earn interest on the amount lend. Banks have primary assets which are the deposits from its customers. The bank invests those deposits in some profitable projects and then give interest to the customers based on a percentage.
At the beginning of Year 2, the Redd Company had the following balances in its accounts:
Cash $ 16,800
Inventory 9,000
Land 3,900
Common stock 17,000
Retained earnings 12,700
During Year 2, the company experienced the following events:
Purchased inventory that cost $13,100 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $990 were paid in cash.
Returned $900 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
Paid the amount due on its account payable to Ross Company within the cash discount period.
Sold inventory that had cost $12,500 for $21,500 on account, under terms 2/10, n/45.
Received merchandise returned from a customer. The merchandise originally cost $2,150 and was sold to the customer for $3,000 cash. The customer was paid $3,000 cash for the returned merchandise.
Delivered goods FOB destination in Event 4. Freight costs of $880 were paid in cash.
Collected the amount due on the account receivable within the discount period.
Sold the land for $7,300.
Recognized accrued interest income of $650.
Took a physical count indicating that $5,100 of inventory was on hand at the end of the accounting period. (Hint: Determine the current balance in the inventory account before calculating the amount of the inventory write down.)
Record the events in general journal format. Assume that the perpetual inventory method and gross method is used.
Answer:
Redd Company
Journal Entries:
1. Debit Inventory $13,100
Credit Accounts payable (Ross Company) $13,100
To record the purchase of inventory on account, terms 2/10, n/30.
2. Debit Freight-in Expense $990
Credit Cash $990
To record the payment for freight.
3. Debit Accounts payable (Ross Company) $900
Credit Inventory $900
To record the return of goods to supplier.
4. Debit Accounts payable (Ross Company) $12,200
Credit Cash $11,956
Credit Cash Discounts $244
To record the payment on account.
5. Debit Accounts receivable $21,500
Credit Sales Revenue $21,500
To record the sale of goods on account, terms 2/10, n/45
Debit Cost of goods sold $12,500
Credit Inventory $12,500
To record the cost of goods sold.
6. Debit Sales Returns $3,000
Credit Cash $3,000
To record the payment of cash for returned goods.
Debit Inventory $2,150
Credit Cost of goods sold $2,150
To record the cost of goods returned.
7. Debit Freight-out Expense $880
Credit Cash $880
To record the payment of freight.
8. Debit Cash $18,130
Debit Cash Discounts $370
Credit Accounts Receivable $18,500
To record the receipt of cash on account.
9. Debit Cash $7,300
Credit Land $7,300
To record the sale of land for cash.
10. Debit Interest Receivable $650
Credit Interest Revenue $650
To accrue interest income.
11. Debit Cost of goods sold $5,750
Credit Inventory $5,750
To record the cost of inventory write down.
Explanation:
a) Data and Analysis:
1. Inventory $13,100 Accounts payable (Ross Company) $13,100, terms 2/10, n/30.
2. Freight-in Expense $990 Cash $990
3. Accounts payable (Ross Company) $900 Inventory $900
4. Accounts payable (Ross Company) $12,200 Cash $11,956 Cash Discounts $244
5. Accounts receivable $21,500 Sales Revenue $21,500, terms 2/10, n/45
Cost of goods sold $12,500 Inventory $12,500
6. Sales Returns $3,000 Cash $3,000
Inventory $2,150 Cost of goods sold $2,150
7. Freight-out Expense $880 Cash $880
8. Cash $18,130 Cash Discounts $370 Accounts Receivable $18,500
9. Cash $7,300 Land $7,300
10. Interest Receivable $650 Interest Revenue $650
11. Cost of goods sold $5,750 Inventory $5,750
Inventory write down:
Beginning $9,000
Purchase 13,100
Return (900)
Sold (12,500)
Return 2,150
Net $10,850
Ending 5,100
Write down $5,750
Relevant Range and Fixed and Variable Costs Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 25,000 to 100,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
Memory chips produced ...............45,000 60,000 75,000
Total costs:
Total variable costs ................. $1,350,000 (D) (J)
Total fixed costs .................... 810,000 (E) (K)
Total costs .......................... $2,160,000 (F) (L)
Cost per unit:
Variable cost per unit ............... (A) (G) (M)
Fixed cost per unit .................. (B) (H) (N)
Total cost per unit .................. (C) (I) (O)
Required:
Complete the cost schedule. When computing the cost per unit, round to two decimal places.
Answer:
Results are below.
Explanation:
Relevant range= 25,000 to 100,000
In this range, fixed and variable (unitary) costs remain constant.
To calculate the unitary values, we need to use the following formulas:
Variable cost per unit= Total variable cost / Total number of units
Fixed cost per unit= Total fixed cost / total number of units
Memory chips produced= 45,000
Total variable cost= $1,350,000
Total fixed cost= 810,000
Variable cost per unit= 1,350,000 / 45,000= $30
Fixed cost per unit= 810,000 / 45,000= $18
Total cost per unit= 30 + 18= $48
Memory chips produced= 60,000
Total variable cost= 30*60,000= $1,800,000
Total fixed cost= 810,000
Total cost= $2,610,000
Variable cost per unit= $30
Fixed cost per unit= 810,000 / 60,000= $13.5
Total cost per unit= 30 + 13.5= $43.5
Memory chips produced= 75,000
Total variable cost= 30*75,000= $2,250,000
Total fixed cost= 810,000
Total cost= $3,060,000
Variable cost per unit= $30
Fixed cost per unit= 810,000 / 75,000= $10.8
Total cost per unit= 30 + 10.8= $40.8
David is trying to decide if it makes sense to outsource the purchasing function. He has a chain of 12 restaurants and employs two buyers at an annual fixed cost of $85,000. David estimates that the variable cost of each purchase order placed is $15. An outsourced company will perform the purchasing function for a fixed annual fee of $100,000 plus $5 for each purchase order placed. Last year, David placed 1400 purchase orders.
Required:
a. What was the in-house purchasing cost last year?
b. What would the cost be if outsourced?
c. If David estimates it will place 1600 purchase orders next year, should he outsourced?
Answer and Explanation:
The computation is shown below;
a) The In-house purchasing cost last year is
= Fixed costs + Variable costs
=$85,000 + Total number of purchase orders × cost per order
= $85,000 + 1400 × 15
= $106,000
b)
The outsourcing cost is
Outsourcing cost = Fixed costs +Variable costs
= $100,000 + Total number of purchase orders × cost per order
= $100,000 + 1400 × 5
= $107,000
c) Total number of purchase orders = 1600
In-house purchasing cost = 85,000 + 1600 × $15 = $109000
Outsourcing cost = $100,000 + 1600 × $5 = $108000
Yes, David should outsource as the outsourcing cost is less than the in-house purchasing cost.
Ten cavemen with a remaining average life expectancy of 10 years use a path from their cave to a spring some distance away. The path is not easily traveled due to 100 large stones that could be removed. The annual benefit to each individual if the stones were removed is $8.25. Each stone can be removed at a cost of $2.50. The interest rate is 2 %.
Required:
a. Compute the benefit/cost ratio for the individual if he alone removed the 100 stones.
b. Compute the benefit/cost ratio for the individual if the task was undertaken collectively, with each individual removing 10 stones.
c. What maximum amount may be charged by a manager who organizes the group effort if the minimum acceptable benefit/cost ratio is 2?
Answer:
a. B/C Ratio = 0.296
b. B/C Ratio = 2.964
c. Y = 12.05 USD will be the maximum amount charged by the manager.
Y = 12.05 x 10 = 120.54 USD for the whole group of 10
Explanation:
Solution:
Data Given:
Number of Individuals = 10
Number of Stones = 100
Life Expectancy = 10 Years
Annual benefit = 8.25 USD
Stone Removal Cost = 2.50 USD
Interest Rate = 2%
a. If all the stones are removed by one individual:
Cost = 100 stones x Stone Removal Cost
Cost = 100 x 2.50 = 250 USD
Now, we have to calculate the Benefit/Cost Ratio for this individual by using the following formula:
B/C Ratio = [tex]\frac{AB (P/A, 2, 10)}{Cost}[/tex]
Where,
AB = Annual Benefit = 8.25 USD
(P/A, 2%, 10) = 8.983 (From the compound interest table)
Cost = 250 USD
B/C Ratio = [tex]\frac{8.25 * 8.983}{250}[/tex]
B/C Ratio = 0.296
b. Each individual removing 10 stones.
Number of individuals = 10
So, the cost of removing the stones will be:
Cost = 10 x 2.50 = 25 USD
So,
B/C Ratio = [tex]\frac{AB (P/A, 2, 10)}{Cost}[/tex]
B/C Ratio = [tex]\frac{8.25 * 8.983}{25}[/tex]
B/C Ratio = 2.964
c.
In this part, we are already given the B/C ratio, now we need to calculate the maximum amount charged by the manager for the help.
B/C ratio = 2
Let, Y be the amount of the manager. So,
B/C Ratio = [tex]\frac{AB (P/A, 2, 10)}{Cost + Y}[/tex]
Plugging in the values and solving for Y:
2 = [tex]\frac{8.25 * 8.983}{25 + Y}[/tex]
50 + 2Y = 8.25 x 8.983
2Y = 74.109 - 50
2Y = 24.109
Y = 24.109/2
Y = 12.05 USD will be the maximum amount charged by the manager.
Y = 12.05 x 10 = 120.54 USD for the whole group of 10
A corporation reports the following year-end balance sheet data. The company's debt ratio equals:
Cash $ 53,000 Current liabilities $ 88,000
Accounts receivable 68,000 Long-term liabilities 30,000
Inventory 73,000 Common stock 113,000
Equipment 158,000 Retained earnings 121,000
Total assets $ 352,000 Total liabilities and equity $ 352,000
a. 0.50
b. 1.38
c. 0.34
d. 2.20
e. 0.66
Answer:
2.20
Explanation:
The company's debt ratio equals: 2.20
You are considering a stock investment in one of two firms (NoEquity, Inc. and NoDebt, Inc.), both of which operate in the same industry and have identical operating income of $23.5 million. NoEquity, Inc. finances its $70 million in assets with $69 million in debt (on which it pays 10 percent interest annually) and $1 million in equity. NoDebt, Inc. finances its $70 million in assets with no debt and $70 million in equity. Both firms pay a tax rate of 30 percent on their taxable income.
Required:
Calculate the net income and return on assets for the two firms.
Answer:
Investment in NoEquity, Inc. and NoDebt, Inc.
NoEquity, Inc. NoDebt, Inc.
Net Income $11.62 million $16.45 million
Return on assets 16.6% 23.5%
Explanation:
a) Data and Calculations:
NoEquity, Inc. NoDebt, Inc.
Investments:
Debt $69 million $0
Equity $1 million $70 million
Assets $70 million $70 million
Operating income $23.5 million $23.5 million
Interest (10%) 6.9 million 0
Income before tax $16.6 million $23.5 million
Tax expense (30%) 4.98 million 7.05 million
Net Income $11.62 million $16.45 million
Return on assets $11.62/$70 $16.45/$70
= 0.166 0.235
= 16.6% 23.5%
Marvin Industries must choose between an electric-powered and a coal-powered forklift machine for its factory. Because both machines perform the same function, the firm will choose only one. (They are mutually exclusive investments.) The electric-powered machine will cost more, but it will be less expensive to operate; it will cost $102,000, whereas the coal-powered machine will cost $69,500. The cost of capital that applies to both investments is 10%. The life for both types of machines is estimated to be 6 years, during which time the net cash flows for the electric-powered machine will be $26,150 per year, and those for the coal-powered machine will be $20,000 per year. Annual net cash flows include depreciation expenses.
Calculate the NPV for each type of truck. Round your answers to the nearest dollar.
Electric-powered truck $
Gas-powered truck $
Calculate the IRR for each type of truck. Round your answers to two decimal places.
Electric-powered truck %
Gas-powered truck %
Answer:
$11,890
13.89%
$17,605
18.25%
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
NPV can be calculated using a financial calculator
The electric-powered machine
Cash flow in year 0 = $-102,000
Cash flow in year 1 to 6 = $26,150
I = 10 %
NPV = $11,890
IRR = 13.89%
the coal-powered machine
Cash flow in year 0 = $-69,500
Cash flow in year 1 to 6 = $20,000
I = 10 %
NPV = $17,605
IRR = 18.25%
To find the NPV 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
To find the IRR 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 IRR button and then press the compute button.
During 2017, Waterway Industries expected Job No. 26 to cost $300000 of overhead, $500000 of materials, and $200000 in labor. Waterway applied overhead based on direct labor cost. Actual production required an overhead cost of $290000, $470000 in materials used, and $190000 in labor. All of the goods were completed. What amount was transferred to Finished Goods
Answer:
$945,000
Explanation:
The computation of the amount transferred to the finished goods is shown below:
= Material + labor + overhead
= $470,000 + $190,000 + $190,000 × $300,000 ÷ $200,000
= $470,000 + $190,000 + $285,000
= $945,000
hence, the amount transferred is $945,000
Eva received $68,000 in compensation payments from JAZZ Corp. during 2018. Eva incurred $13,500 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,000. Based on these facts answer the following questions: Use Tax Rate Schedule for reference.
a. Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year?
b. Assume that Eva is considered to be an employee. What is her regular income tax liability for the year?
c. Assume that Eva is considered to be a self-employed contractor. What is her self-employment tax liability and additional Medicare tax liability for the year?
I got answer b but you may wanna double check
Answer:
its b
Explanation:
i got it right on mine
Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $40,000 and $61,000, respectively. The company expects to collect 30% of its credit sales in the month of the sale, 60% in the following month, and 10% is deemed uncollectible. What amount of cash collections from credit sales would the company include in its cash budget for the second month
Answer:
Total cash collection= $42,300
Explanation:
Giving the following information:
Sales:
First month= $40,000
Second month= $61,000
The company expects to collect 30% of its credit sales in the month of the sale, 60% in the following month.
Cash collection Second month:
Cash collection credit sales from the second month= (61,000*0.3)= 18,300
Cash collection credit sales from the first month= (40,000*0.6)= 24,000
Total cash collection= $42,300
QUESTION 10
Branch Corp.'s total assets at the end of last year were $315,000 and its net income after taxes was $22,750. What was its return on total assets?
a.
7.22%
b.
8.78%
c.
7.96%
d.
8.36%
e.
7.58%
Answer:
a. 7.22%
Explanation:
The computation of the return on total assets is shown below:
= Net income after taxes ÷ total assets at the end of the last year
= $22,750 ÷ $315,000 × 100
= 7.22%
Hence, the return on total assets is 7.22%
Therefore the correct option is a.
Cost pools should be charged to responsibility centers by using: Multiple Choice budgeted amounts of allocation bases because the behavior of one responsibility center should influence the allocations to other responsibility centers. actual amounts of allocation bases because the behavior of one responsibility center should influence the allocations to other responsibility centers. actual amounts of allocation bases because the behavior of one responsibility center should not influence the allocations to other responsibility centers. some other approach. budgeted amounts of allocation bases because the behavior of one responsibility center should not influence the allocations to other responsibility centers.
Answer:
budgeted amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others.
Explanation:
The budgeted amount of allocation bases would be measured at the starting of the period and the same would be applied or used to charge the cost pool for the responsibility centers
Hence, according to the given situation, the above represent the answer
And, the same should be relevant
uses a periodic inventory system. The company has a beginning inventory of 350 units at $6 each on January 1. Hentertainment purchases 600 units at $5 each in February and 250 units at $7 each in March. There were no additional purchases or sales during the remainder of the year. Hentertainment sells 400 units during the quarter. If Hentertainment uses the LIFO method, what is its cost of goods sold
quipllAmredneck
kvtvfb to k
When using the cost of production report to analyze the change in direct materials cost per equivalent unit compared to conversion cost per equivalent unit, an investigation may reveal that direct materials costs a.may increase while conversion costs decrease because the two are separately calculated and depend on separate costs. b.will never decrease when conversion costs decrease. c.always increase between periods if conversion costs increase. d.always decrease between periods if conversion costs increase.
Answer: a.may increase while conversion costs decrease because the two are separately calculated and depend on separate costs.
Explanation:
When the cost of production report is being used to analyze change in direct materials cost per equivalent unit when compared to the conversion cost per equivalent unit, we should note that an investigation may end up showing that the fluctuation in the the direct materials costs which then brings about an increase or a decrease.
Therefore, the correct option is A "may increase while conversion costs decrease because the two are separately calculated and depend on separate costs".
The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 9,510 units started which is comprised of 6,510 units finished and transferred out and 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $35,948; labor $21,400; overhead $34,840.
Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25.)
QUIK FURNITURE COMPANY
Sanding Department
Production Cost Report
For the Month Ended March 31, 2017
Equivalent Units Physical Units Conversion Costs Quantities Units to be accounted for Materials Work in process, March 1 Started into production Total units Units accounted for Transferred out Work in process, March 31 Total units
Conversion Costs Total Costs Unit costs Materials Total Costs Equivalent units Unit costs Costs to be accounted for Work in process, March 1 Started into production Total costs Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, March 31 Materials Conversion costs Total costs
Answer:
Quick Furniture Company
The Sanding Department
Production Report
For the month of March 2017:
Materials Conversion Total
Manufacturing costs $35,948 $56,240 $92,188
Cost per equivalent unit:
Manufacturing costs $35,948 $56,240
Equivalent units 9,510 7,110
Cost per equivalent unit $3.78 $7.91
Cost assigned to:
Units transferred out $24,608 $51,494 $76,102
Ending Work in Process $11,340 $4,746 16,086
Total costs assigned $35,948 $56,240 $92,188
Explanation:
a) Data and Calculations:
Materials Conversion
Units started 9,510
Units completed 6,510 6,510 6,510
Ending WIP 3,000 3,000 600
Equivalent units 9,510 7,110
Production Cost Report:
Materials Conversion Total
Manufacturing costs $35,948 $56,240 $92,188
Cost per equivalent unit:
Manufacturing costs $35,948 $56,240
Equivalent units 9,510 7,110
Cost per equivalent unit $3.78 $7.91
Cost assigned to:
Units transferred out $24,608 $51,494 $76,102
($3.78 * 6,510) ($7.91 * 6,510)
Ending Work in Process $11,340 $4,746 16,086
($3.78 * 3,000) ($7.91 * 600)
Total costs assigned $35,948 $56,240 $92,188
Beck Manufacturing reports the following information in T-account form for 2019. Raw Materials Inventory Begin. Inv. 10,000 Purchases 45,000 Avail. for use 55,000 DM used 46,500 End. Inv. 8,500 Work in Process Inventory Begin. Inv. 14,000 DM used 46,500 Direct labor 27,500 Overhead 55,000 Manuf. costs 143,000 Cost of goods manuf. 131,000 End. Inv. 12,000 Finished Goods Inventory Begin. Inv. 16,000 Cost of goods manuf. 131,000 Avail. for sale 147,000 Cost of Goods Sold 129,000 End. Inv. 18,000 Required: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.
Both __________ and __________ affect the awareness and motivation of a firm to undertake actions and responses. a. first-mover advantages; corporate size b. market commonality; resource similarity c. management capabilities; competitive analysis d. speed of management decisions; management actions
Answer:
b. market commonality; resource similarity
Explanation:
The two things that can impact the awareness and the motivation so that the firm could take the actions and responses is that the market commodity where the company deals with and the similarity of the resources. These two things would be required that can impact the awareness and the motivation level of the firm
hence, the option b is correct
Select the correct answer.
Athletes can have short playing careers, so they are eager to leverage their fame through endorsements as much as possible. What is the risk of such an approach?
A.
There’s saturation of the market with multiple endorsements.
B.
Only certain companies will be interested.
C.
Consumers will start to lose interest.
D.
Their perceived endorsement value will be low.
Answer: I believe the answer is a
Explanation:
Journalize the following sales transactions for Straight Shot Archery using the periodic inventory system. E (Record debits first, then credits. Exclude explanations from journal entries.
Aug. 1 Sold $6,500 of equipment on account, credit terms are 1/10, n/30.
Aug. 8 Straight Shot received payment from the customer on the amount due from August 1, less the discount.
Aug. 15 Sold $3,100 of equipment on account, credit terms are n/45, FOB destination.
Aug. 15 Straight Shot paid $90 on freight out.
Aug. 20 Straight Shot negotiated a $500 allowance on the goods sold on August 15.
Aug. 24 Received payment from the customer on the amount due from August 15, less the allowance.
Answer:
Aug. 1
Debit :
Credit :
Aug. 8
Debit :
Credit :
Aug. 15
Debit :
Credit :
Aug. 15
Debit :
Credit :
Aug. 20
Debit :
Credit :
Aug. 24
Debit :
Credit :
Explanation:
Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased 140 shares of its common stock on May 1 for $7,000. On July 1, it reissued 70 of these shares at $52 per share. On August 1, it reissued the remaining treasury shares at $49 per share. What is the balance in the Paid-in Capital, Treasury Stock account on August 2
Answer: $70
Explanation:
First, we need to calculate the purchase price per share and this will be:
= Purchase amount / Number of shares bought
= $7000 / 140
= $50 per share
Therefore, the balance in the Paid-in Capital, Treasury Stock account on August 2 will be:
= [70 × ($52 - $50)] + [70 × ($49 - $50)]
= (70 × $2) + ($70 × $-1)
= $140 - $70
= $70
Bernie Company sells buttons to fabric stores. Sales are expected to be $2,046,299 in January, $2,484,001 in February and $3,162,122 in March. Bernie Company sets their prices so that they earn an average 46% gross profit on sales revenue. What is budgeted cost of goods sold for February? Round your answer to the nearest whole number. Don't enter commas or dollar signs.
Answer:
$1,701,371
Explanation:
Gross Profit = Sales - Cost of Sales
therefore,
In percentage this equation can be expressed according to the Company policy as :
46 % = 146 % - 100%
Cost of Sales = 100/146 x $2,484,001 = $1,701,371
Conclusion :
Budgeted cost of goods sold for February is $1,701,371
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below:
Activity Cost Pool (Activity Measure) Total Cost Total Activity
Customer deliveries (Number of deliveries) $630,000 7,000 deliveries
Manual order processing (Number of manual orders) 444,000 6,000 orders
Electronic order processing (Number of electronic orders) 231,000 11,000 orders
Line item picking (Number of line items picked) 955,500 490,000 line items
Other organization-sustaining costs (None) 610,000
Total selling and administrative expenses $2,870,500
Med Max gathered the data below for two of the many hospitals that it serves—City General and County General:
Activity
Activity Measure General City County General
Number of deliveries 10 20
Number of manual orders 0 40
Number of electronic orders 10 0
Number of line items picked 120 280
Required:
a. Compute the activity rate for each activity cost pool.
b. Compute the total activity costs that would be assigned to City General and County General.
Answer:
A. Customer deliveries $90
Manual order processing $74
Electronic order processing $21
Line item picking $1.95
B. CITY GENERAL
Activity cost pools City General
Customer deliveries $900
Manual order processing $0
Electronic order processing $210
Line item picking $234
Total Activity Costs $1,344
COUNTRY GENERAL
Activity cost pools Country General
Customer deliveries $1,800
Manual order processing $2,960
Electronic order processing $0
Line item picking $546
Total Activity Costs $5,306
Explanation:
a. Computation for the activity rate for each activity cost pool
Using this formula
Activity rate = Total cost / Total activity
Let plug in the formula
Activity cost pools Total Cost (a) Total activity (b) Activity rate (a/b)
Customer deliveries $630,000/ 7,000 =$90
Manual order processing $444,000/ 6,000 =$74
Electronic order processing $231,000/ 11,000 =$21
Line item picking $955,500/ 490,000=$1.95
Therefore the activity rate for each activity cost pool are:
Customer deliveries $90
Manual order processing $74
Electronic order processing $21
Line item picking $1.95
b. Computation for the total activity costs that would be assigned to City General and County General
Using this formula
Activity cost assigned = Actual activity * Activity rates
Cost drivers by product Overhead cost assigned
CITY GENERAL
Activity cost pools Activity rate (a) City General(b) City General (a*b)
Customer deliveries $90 *10 =$900
Manual order processing $74*0=$0
Electronic order processing $21* 10=$210
Line item picking $1.95*120=$234
Total Activity Costs $1,344
($900+$0+$210+$234)
COUNTRY GENERAL
Activity cost pools Activity rate (a) Country General(b) Country General (a*b)
Customer deliveries $90 *20 =$1,800
Manual order processing $74*40=$2,960
Electronic order processing $21* 0=$0
Line item picking $1.95*280=$546
Total Activity Costs $5,306
($1,800+$2,960+$0+546)
Therefore The the total activity costs that would be assigned to City General and County General
are:
CITY GENERAL
Activity cost pools City General
Customer deliveries $900
Manual order processing $0
Electronic order processing $210
Line item picking $234
Total Activity Costs $1,344
COUNTRY GENERAL
Activity cost pools Country General
Customer deliveries $1,800
Manual order processing $2,960
Electronic order processing $0
Line item picking $546
Total Activity Costs $5,306