Answer:
Missing word "a. Direct labor usage. b. Indirect labor usage. c. Total payroll paid in cash. Prepare journal entries for the above transactions for the month of May"
S/n General Journal Debit Credit
a Work in Process inventory $265,000
($345,000 - $80,000)
Factory wages payable $265,000
(To record for Direct labor usage)
b Factory overhead $80,000
Factory wages payable $80,000
(To record for Indirect labor usage)
c Factory wages payable $345,000
Cash $345,000
(To record for Total payroll paid in cash)
The secret to effective sales is to have a
unique selling proposition.
good personality.
memorized pitch.
fantastic product.
Answer:
unique selling proposition.
Explanation:
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
Generally, the secret to effective sales is to have a unique selling proposition that makes consumers patronize you.
The contribution margin ratio is interpreted as the percent of: Multiple choice question. each variable cost dollar that remains after deducting fixed costs each sales dollar that remains after deducting fixed costs each sales dollar that remains after deducting unit variable cost
Answer: each sales dollar that remains after deducting unit variable cost
Explanation:
The contribution margin ratio is interpreted as the percent of each sales dollar that remains after the deduction of unit variable cost.
The contribution margin ratio refers to the difference between the sales that a company makes and its variable costs which is expressed as a percentage. The ratio simply indicates the amount of money that is available to cover the fixed costs.
You are selling an asset. you can earn an interest rate of 7% per yer on your savings. You receive the following two (risk less) offers:
Offer 1: receive $400,000 today
Offer 2: Receive $500,000 in 4 years
a. Which offer should you choose?
b. At what interest rate would you be indifferent between the two offers?
Answer:
Option 1
5.737126344%
Explanation:
to determine which option i would prefer today, i would need to determine the present value of offer 2
Present value is the sum of discounted cash flows
[tex]\frac{500,000}{1.07^{4} }[/tex] = $381,447.61
I would prefer the first option because its present value is greater than that of option 2
The interest rate that would make me indifferent between either options would be the interest at which the present value of $500,000 in 4 years is $400,000
$400,000 = [tex]\frac{500,000}{(1 + x)^{4} }[/tex]
$400,000[tex](1 + x)^{4}[/tex] = $500,000
500,000 / 400,000= (1 + x)^{4}
1.25 = (1 + x)^{4}
[tex]1.25^{0.25}[/tex] = 1 + x
x = 5.737126344%
Which of these is NOT a barrier to trade?
a) Tariff
b) Quota
C) All the options are correct
D) Embargo
Answer:
All the options are correct
Direct Labor Variances Advanced Micro Devices develops high-performing computing products. Assume one of its processors, Ryzen 7 Pro, has a standard labor time of 0.25 hours and a standard labor rate of $20 per hour. During February, the following activities pertaining to direct labor for Ryzen 7 Pro were recorded: Direct labor hours used 64,000 Direct labor cost $1,248,000 Units of Ryzen 7 Pro manufactured 250,000
(a) Determine the labor rate variance.
(b) Determine the labor efficiency variance.
(c) Determine the total flexible budget labor cost variance.
Answer and Explanation:
The computation is shown below:
a. The labor rate variance is
= (standard rate - actual rate) × actual labor hours
= ($20 - $19.50) × 64,000
= $32,000 favorable
b. The labor efficiency variance is
= (standard hours - actual hours) × standard rate
= (62,500 - 64,000) × $20
= -$30,000 unfavorable
c. the total flexible budget variance is
= standard cost - actual cost
= ($1,250,000 - $1,248,000)
= $2,000 favorable
g A person with a diminishing marginal utility of income: Group of answer choices will be risk neutral will be risk averse will be risk loving
Answer: Risk averse
Explanation:
A person with a diminishing marginal utility of income will derive less utility from income as income increases. A risk averse person is one who would rather avoid risk but still prefers a high income.
Such a person will have a diminishing marginal utility in income because income increases more when there is more risk. A risk averse person does not want that risk and so will go for a lower income which means that they don't want more income as it is riskier to them.
Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 61% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 26,400 curtain rods per year.
A supplier offers to make a pair of finials at a price of $13.30 per unit. If Pottery Ranch accepts the supplier’s offer, all variable manufacturing costs will be eliminated, but the $40,400 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products.
Required:
Prepare the incremental analysis for the decision to make or buy the finials.
Answer:
Pottery Ranch Inc.
Incremental Analysis
Make Buy Incremental
Production costs:
Variable manufacturing costs per unit:
Direct materials per unit $4.00
Direct labor per unit $5.00
Variable manufacturing per unit $3.05
Total variable manufacturing costs $12.05 $13.30 $1.25
Annual units of curtain rods 26,400 26,400 26,400
Variable manufacturing costs $318,120 $351,120 $33,000
Explanation:
a) Data and Calculations:
Production capacity = 100%
Variable manufacturing overhead = 61% of direct labor cost
Direct materials per unit = $4
Direct labor per unit = $5
Variable manufacturing per unit = $3.05 (61% of $5)
Total variable manufacturing cost per unit = $12.05
Normal production per year = 26,400 units
Total variable manufacturing costs = $318,120 ($12.05 * 26,400)
Fixed manufacturing overhead = $40,400
On Mar 3, Lyons Company paid dividends of $1,000. Use your knowledge of what a correct journal entry should look like to identify what would be include
Answer:
Debit : Dividend $1,000
Credit : Cash $1,000
Explanation:
The Journal entry to record dividend payment include a Debit to Dividend Account and a Credit to Cash Account to depict the outflow of cash.
On December 15, 2016, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2017, of $0.94 per share on the 2,000,000 common shares outstanding. On December 15, 2016, Cross Corporation should:__________.a. not prepare a journal entry because the event had no effect on the corporation's financial position until 2017.b. decrease cash $1.88 million and decrease retained earnings $1.88 million.c. decrease retained earnings $1.88 million and increase expenses $1.88 million.d. decrease retained earnings $1.88 million and increase liabilities by $1.88 million.
Answer:
d. decrease retained earnings $1.88 million and increase liabilities by $1.88 million
Explanation:
Jake lives in Detroit and runs a business that sells boats. In an average year, he receives $722,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jake does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Felix’s costs in the following table as either an implicit cost or an explicit cost of selling guitars.
Implicit Cost Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturer
The rental income Felix could receive if he chose to rent out his showroom
The salary Felix could earn if he worked as a paralegal
The wages and utility bills that Felix pays
Complete the following table by determining Felix’s accounting and economic profit of his guitar business. Profit (Dollars)Accounting Profit Economic Profit
Answer:
Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturerThe wages and utility bills that Felix paysImplicit Cost
The salary Felix could earn if he worked as a paralegal The wages and utility bills that Felix paysAccounting profit = $32,000
Economic profit = $9,000
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate whether more job training makes workers more productive. However, rather than having data on individual workers, you have access to data on manufacturing firms in Ohio. In particular, for each firm, you have information on hours of job training per worker (training) and number of non-defective items produced per worker (output).
Required:
a. Carefully state the ceteris paribus thought experiment underlying this policy question.
b. Does it seem likely that a firm’s decision to train its workers will be independent ofworker characteristics? What are some of those measurable and unmeasurable workercharacteristics?
c. Name a factor other than worker characteristics that can affect worker productivity.
d. If you find a positive correlation between output and training, would you haveconvincingly established that job training makes workers more productive? Explain.
Solution :
a). There is a way to state the question :
If there are two firms, firm A and firm B. Both the forms are same in all the respects but differ in only one thing, that firm A provides job training 1 hour per worker more than the number of hours of training of firm B, by how much the output of firm A would differ than the output from firm B?
b). The manufacturing firms that are located in Ohio will provide the job training based on the characteristics of workers. Some of the determining factors includes years of schooling, experience in a particular job, etc. The firms can even consider the worker's age, race or gender. The training will be provided to the less efficient workers based on their ability.
c). The amount of the capital as well as the technology that is available to the workers would affect the output of the firm. Thus the firms having the same kind of employees would have different outputs when the firms used different technology or different amount of capital.
d). No, unless the training is randomly assigned. The factors are listed above which can contribute to the finding of a positive correlation between the output and the training even when the job training does not improve the productivity of the worker.
Pretzelmania, Inc., issues 5%, 10-year bonds with a face amount of $68,000 for $68,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid annually on December 31.
Required:
Record the bond issue and first interest payment on June 30, 2021.
Answer:
Here the answer is given as follows,
I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is 0, when the beta is really 1, how much more will I offer for the firm than it is truly worth? Assume the risk-free rate is 4% and the expected rate of return on the market is 10%. (Input the amount as a positive value.)
Answer:
$15,000
Explanation:
Value of a perpetuality = cash flow / r
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
4 + 0 (10 - 4) = 4
1,000/ 0.04 = 25,000
4 + 1 (10 - 4) = 10
1000 / 0.1 = 10,000
25,000 - 10,000 = 15,000
If a firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from :___________
a. declining interest rates.
b. rising interest rates.
c. inflation.
d. changes in hedging activities.
Answer:
b. rising interest rates.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.
In Economics, bonds could either be issued at discount or premium.
Generally, if a business firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from rising interest rates.
If there is a greater quantity supplied than the quantity demaded ( an excess supply of a good or service) you are most likely dealing with:_______.
A- price ceiling set below the equilibrium price
B- price floor set above equilibrium price
On January 1, 2013, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,546. During the first 11 months of the year, bad debts expense of $21,399 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2013, was $9,859. Required: (a) What was the total of accounts written off during the first 11 months
Answer: $25,086
Explanation:
The bad debt written off is calculated by:
= Opening balance in Allowance for bad debts account + Bad debt expense - Closing balance in Allowance for bad debt
= 13,546 + 21,399 - 9,859
= $25,086
Economists use the term inflation to describe a situation in which a. some prices are rising faster than others. b. the economy's overall price level is rising. c. the economy's overall price level is high, but not necessarily rising. d. the economy's overall output of goods and services is rising faster than the economy's overall price level.
Answer:
b
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.
Menu costs are the costs of changing price constantly as a result of inflation, When there is inflation, prices increases regularly. As a result prices needs to be updated regularly.
This morning you purchased one share of stock for $14. The stock pays $.20 per share each quarter as a dividend. What must the stock price be one year from now if you want to earn a total return of 12 percent for the year
Answer:
$14.88
Explanation:
The computation of the stock price is given below:
A total return of 12% means that
= 0.12 × 14
= $1.68 in a year.
Now
The total dividend payments for 4 quarters is
= 0.2 × 4
= $0.8.
Now the price of the stock should increase by
= 1.68 - 0.8
= 0.88
So the stock price one year from now is
= 14 + 0.88
= $14.88
Over the last year, Calzone Corporation paid a quarterly dividend of $0.10 in each of the four quarters. The current stock price of Calzone Corporation is $39.78. What is the dividend yield for Calzone stock
Answer: 1.0%
Explanation:
Dividend yield = Annual dividend / Current stock price
Annual dividend = (0.10 * 4 quarters)
= $0.40
Dividend yield = 0.40 / 39.78
= 1.0%
Splish Brothers Inc. uses a perpetual inventory system. Data for product E2-D2 include the following purchases.
Date Number of Units Unit Price
May 7 105 $7
July 28 63 18
On June 1, Splish Brothers sold 55 units, and on August 27, 84 more units. Prepare the perpetual inventory schedule for the above transactions using moving average cost.
Answer:
Splish Brothers Inc.
Perpetual Inventory Schedule using moving average costs:
Date Description Number Average Cost Total Cost Cost
of Units Balance
May 7 Purchase 105 $7 $735 $735
June 1 Sales (55) $7 385 350
July 28 Purchase 63 $18 1,134 1,484
August 27 Sales (84) $13.1327 1,103 381
Explanation:
a) Data and Calculations:
Date Number of Units Unit Price Total Costs
May 7 Purchase 105 $7 $735
June 1 Sales (55) $7 385
July 28 Purchase 63 $18 1,134
August 27 Sales (84) $13.1327 1,103
Cost of goods sold = $1,488 ($385 + $1,103)
Ending inventory = $381
To obtain an FHA-insured loan, the buyers will have to pay a MIP of 1.75 points, which will be financed into the loan. What will be the amount of their loan if FHA insures 96.5% of the appraised value and this property appraises for $210,000 (the maximum loan the FHA will insure in their area is $271,000)?
Answer:
$206,196.38
Explanation:
Calculation to determine what will be the amount of their loan
Loan Amount=($210,000 × 0.965)+[($210,000 × 0.965)×0.0175]
Loan Amount=$202,650+ ($202,650 × 0.0175)
Loan Amount=$202,650 + $3,546.38
Loan Amount= $206,196.38
Therefore What will be the amount of their loan is $206,196.38
You are given the following data Stock A Expected return 8.00% Standard deviation 23.00% Stock B Expected return 7.50% Standard deviation 33.00% The correlation of Stock A and Stock B is 0.05. What is the variance of risky portfolio P with 43% in Stock A and the rest in Stock B
Answer:
Variance of risky portfolio P = 4.61%
Explanation:
WA = Weight of stock A = 43%, or 0.43
WB = Weight of stock B = 1 - 0.43 = 0.57
SA = Standard deviation of stock A = 23%, or 0.23
SB = Standard deviation of stock B = 33%, or 0.33
Cab = Correlation of Stock A and Stock B = 0.05
Therefore, we have:
Variance of risky portfolio P = (WA^2 * SA^2) + (WB^2 * SB^2) + (WA * SA * WB * SB * Cab) = (0.43^2 * 0.23^2) + (0.57^2 * 0.33^2) + (0.43 * 0.23 * 0.57 * 0.33 * 0.05) = 0.0461, or 4.61%
If the coupon rate on a bond is higher than the yield to maturity, Multiple Choice the bond sells at a discount. the coupon rate on the bond has decreased. interest rates have probably increased since the bond was issued. the current yield on the bond is lower now than when the bond was originally issued.
Answer:
the current yield on the bond is lower now than when the bond was originally issued.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
A yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.
Hence, if the coupon rate on a bond is higher than the yield to maturity, the current yield on the bond is lower now than when the bond was originally issued.
An outside supplier offers to provide Factor with all the units it needs at $44.45 per unit. If Factor buys from the supplier, the company will still incur 70% of its overhead. Factor should choose to:
Answer:
Factor must opt to agree as well as purchase the deal from the provider. A further explanation is provided below.
Explanation:
The given problem seems to be incomplete. Find the attachment of the complete question below.
Given:
Direct material,
= $8.70
Direct labor,
= 24.70
Overhead,
= 43.50
Now,
If the offer is accepted, the cost per unit will be:
= [tex]44.45 + (43.50\times 70 \ percentage)[/tex]
= [tex]44.45 + 30.45[/tex]
= [tex]74.90[/tex] ($)
Thus the above is the correct answer.
A US Treasury is quoted at $137.111 based on $100 par. Today is 12/31/2020. Assume that transaction date and settlement date is the same. The coupon rate is 8%. The bond has 30-year maturity. What is the yield-to-maturity
Answer: 5.46%
Explanation:
You can use excel to solve for this.
Number of periods = 30
Coupon = Payment = 8% * 100 = $8
PV = $137.11
FV = $100 par value
Do this and the YTM would be: 5.46%
This makes sense because the bond is trading at a premium which means that the YTM is less than the coupon rate.
MC Qu. 117 Cosi Company uses a job order costing... Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Cosi expects to incur $830,000 of overhead during the next period, and expects to use 53,000 labor hours at a cost of $10.00 per hour. What is Cosi Company's overhead application rate
Answer:
157%
Explanation:
Calculation to determine Cosi Company's overhead application rate
First step is to calculate Total DL Cost
Total DL Cost = 53,000 hours * $10/hr
Total DL Cost= $530,000
Now let determine the overhead application rate
OH rate = $830,000/$530,000*100
OH rate= 157%
Therefore Cosi Company's overhead application rate is 157%
Choose the correct objective statement for this task.
Suppose that you have been given the task of organizing a graduation open house party for your younger brother who is graduating from high school.
a. To throw a graduation party Saturday afternoon after graduation for 50 guests, that provides ample entertainment and food, and allows my younger brother time to socialize with all the guests, at a cost of $400 or less, and all guests will be pleased with the party.
b. To throw a graduation party.
c. To throw a graduation party Saturday afternoon after graduation for 50 guests, that provides ample entertainment and food, and allows my younger brother time to socialize with all the guests.
d. To throw a graduation party Saturday afternoon after graduation for 50 guests, that provides ample entertainment and food, and allows my younger brother time to socialize with all the guests, at a cost of $400 or less.
Answer:
The correct objective statement for this task is:
b. To throw a graduation party.
Explanation:
Option b is the correct answer because it is concise and straight to the point. It does not start enumerating unnecessary details about the graduation party. Like a good objective statement, option b focuses the reader's attention to the main purpose of the task at hand. This is not so with options a, c, and d, which added details that were not covered by the task description.
A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $60,000; the land at $46,600, and the parking lot at $18,400. Land should be recorded in the accounting records with an allocated cost of
Answer:
$37,280
Explanation:
We use the appraised values to apportion the Purchase Cost of the Property to determine the Cost of Land as follows :
Land Cost = $46,600 / $125,000 x $100,000
= $37,280
Land should be recorded in the accounting records with an allocated cost of $37,280.
11. (-/1 Points] DETAILS BRECMBC9 5.11.010.
MY NOTES
Set up and solve an equation for the following business situation.
Pitt's Pit Stop sold $16,003.50 worth of gasoline yesterday. Regular sold for $3.30 a gallon and premium sold for $3.45 a gallon. If the station sold 370 more gallons of regular than premium, answer the
following questions.
(a) How many gallons of each type of gasoline were sold?
regular
gal
premium
gal
(b) If the profit on regular gas is $0.15 per gallon and on premium is $0.18 per gallon, what was the station's total profit (in dollars)?
$
Answer:
2190 ; 2560 ;
$778.2
Explanation:
Total worth of gasoline sold = 16003.50
Cost of regular = 3.30
Cost of premium = 3.45
Let :
premium Gallon sold = x
Regular gallon sold = 370 + x
Hence, mathematically;
(3.45*x) + (3.30 * (x + 370)) = 16003.50
3.45x + 3.30x + 1221 = 16003.50
6.75x = 16003.50 - 1221
6.75x = 14782.5
x = 14782.5 / 6.75
x = 2190
Premium Gallon sold = 2190 gallons
Regular gallon sold = 2190 + 370 = 2560 gallons
Profit per regular gallon sold = $0.15
Progit per premium Gallon sold = $0.18
Total profit = (2190 * 0.18) + (2560 * 0.15) = $778.2
Market efficiency is probably the most controversial concept in finance. Even recent winners of the Nobel Prize in Economics come down on opposite sides of the issue. Nonetheless, it is important for you to grapple with this idea. It has very important practical implications for investment decisions, including (especially) for your personal investment decision. In particular, should you pursue active or passive strategies
Answer:
Active strategies should be pursued when the market is more volatile, with larger fluctuations over a shorter period of time, that require a more active management of a portfolio, in order to take advantage of fast changing positions in different assets, and also in order to avoid possible losses due to staying in particular positions for too long.
Passive strategies is more long-term focused, and should be pursued when the economy is more stable. Passive strategies should be analyzed carefully before execution because once the passive investment is made, the idea is to keep the position for a long period of time instead of buying and selling constantly as in a active strategy.