Answer:
Matrixed organisations can be more efficient than conventional hierarchical organisations in maximising resource use and delivering job development at a faster rate. They could also be slightly frustrating, noisy and more effective if performed incorrectly.
Potential drawbacks in answering to several executives:
Specific Management goals
Diverse modes of service
Varying political strategies
Related Space Access
Specific timescales of their intentions
Potential benefits of answering to several executives:
Connection to a broader network
Chances to switch to other areas of the company improved
Project development opportunities to develop organisational skills
Expanded capabilities for the company to see the larger picture
RATIO CALCULATIONS Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.4x Return on assets (ROA) 6% Return on equity (ROE) 9% Calculate Caulder's profit margin assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. 4.29 % Calculate Caulder's debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. %
Answer:
33.33%
Explanation:
The solution of debt-to-capital ratio is provided below:-
Here, to find out the debt to capital ratio we need to follow some steps which is following below:-
Step 1
Return on equity = Return on assets × (Assets ÷ Equity)
9% = 6% × (Assets ÷ Equity)
(Assets ÷ Equity) = 9% ÷ 6%
= 1.5%
Step 2
Debt ÷ Equity = (Assets ÷ Equity) - 1
= 1.5% - 1
= 0.5%
and finally
Debt-to-capital = 0.5% ÷ (1 + (Debt ÷ Equity)
= 0.5% ÷ (1 + 0.5%)
= 0.5% ÷ 1.5%
= 33.33%
So, we have calculated the debt to capital by using the above formula.
Scenario: Your best friend works for an In-Home Health Provider Company (IHHPC) in Palm Beach County, Florida. Your friend comes to you and explains that the In-Home Health Provider Co. wants to expand the next year to Broward County and Dade County. Your friend explains the company is dealing with a cash flow problem and if it is not figured out over the next six months the IHHPC will not meet the asset requirement for the expansion loan. IHHPC Revenue:
80% private pay patients.
10% Health insurance.
10% Long Term Care Insurance Policy.
Process at IHHPC: Your friend explains this is how the IHHPC works. A patient would call in and request a nurse for eight hours, seven days a week, starting the next day. The company would send the nurse the next day, then bill the patient on a weekly cycle. The IHHPC would mail a statement to the patient at the end of the first week of service. By the time the patient would get around to writing a check, and mailing it back in to the IHHPC, sometimes the company would not receive payment for six to eight weeks. The company would be paying the nurse weekly although not receiving payment for services yet.
What would you advise him or her and explain why?
Answer: Please refer to Explanation
Explanation:
Advise I would give.
1. The process for the collection of cash should be changed to bring in revenue faster. This can be done in a variety of ways,.
- By including in the terms of the contract that the service has to be paid for within a certain period such as a maximum of 4 weeks and then follow up each week on the customer so that they remember that they have a due bill.
- Giving payment based discounts such as a 5% discount if the service is paid for within a fortnight.
- Telling the customer to pay first, if not the full amount, at least a down payment with the total being settled at a later date.
These are but just some ways of getting the money faster but the bottomline is that payment needs to be received faster because the nurses are paid on a weekly basis.
2. Focus more on Patients with Insurance.
The company has a very low clientele base that use insurance and they should aim to increase that figure. This is because Insurance pays out timely and IHHPC will be sure that their payment will come because an Insurance company is bound by certain rules and regulations. For security of payments therefore, they should increase their insurance based clientele.
On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $490,000 to its supplier using a 12-month, 10% note.
Required:
The loan of $490,000 and acceptance of the note receivable on April 1, 2021.
The adjustment for accrued interest on December 31, 2021.
Cash collection of the note and interest on April 1, 2022.
Record the above transactions for Shoemaker Corporation. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Record the loan of $490,000 and acceptance of the note receivable on April 1, 2021.
Note: Enter debits before credits.
Date General Journal Debit Credit
April 01, 2021
Record the adjusting entry for accrued interest.
Note: Enter debits before credits.
Date General Journal Debit Credit
December 31, 2021
Record the cash collection.
Note: Enter debits before credits.
Date General Journal Debit Credit
April 01, 2022
Answer:
Shoemarket Corporation
Journal Entries:
April 1, 2021:
Debit Notes Receivable $490,000
Credit Cash Account $490,000
To record the issue of notes.
December 31, 2021:
Debit Interest on Notes Receivable $36,750
Credit Interest on Notes $36,750
To accrue interest on notes for the year.
April 1, 2022:
Debit Cash Account $539,000
Credit Notes Receivable $490,000
Credit Interest on Notes Receivable $36,750
Credit Interest on Notes $12,250
To record cash collection of the note and interest.
Explanation:
a) The acceptance of notes receivable increases the Notes Receivable account and reduces the Cash Account by $490,000.
b) Due to the accrual concept and the matching principle, on December 31, 2021, interest on notes receivable will be accrued. This is calculated as follows:
Interest for 9 months = $490,000 x 10% x 9/12 = $36,750.
c) On April 1, 2022, when the cash collection of the note and interest is made, the Cash received will total $539,000 ($490,000 + 10% Interest for a year). This is worked as $490,000 x 10% = $49,000. But, already interest for 2021 had been accrued. The difference is now accrued in 2022.
d) The entries required are a debit to the Cash Account $539,000, a credit to Interest on Notes Receivable $36,750, to Interest on Notes $12,250, and Notes Receivable Accounts $490,000 respectively.
Answer:
Explanation:
Journal entry is a record of transactions in respective accounts using the debit and entry system. Debit entry represents an inflow and credit entry represents an outflow.
Date General journal Debit Credit
April 2021 Note receivable 490,000
Credit Cash 490,000
Dec. 31 Interest Receivable 36750
(Year end)
Interest revenue 36,750
Cash Collection
April 1 ,2022 Cash 539,000
Note receivable 490,000
( Principal )
Interest receivable (2021) 36750
Interest revenue (2022) 12,250
Workings.
Loan note rate = 10%
Issue date = April 1, 2012
( months to the year end )
Interest receivable = 490,000*10%*9/12 = 36,750
January 1, 2022 - March 31 , 2022 (maturity ) =3 months
Interest revenue = 490000*10%*3/12 = 12,250
Brick Co. has 170,000 shares of common stock outstanding at January 1, year 8. On May 1, year 8, it issued 30,000 additional shares of common stock. Outstanding all year were 12,000 shares of convertible cumulative preferred stock. Each share of the convertible preferred stock, which was dilutive in year 8, is convertible into one share of Bricks common stock. What is the number of shares that Brick should use to calculate year 8 diluted earnings per share
Answer:
202,000 shares
Explanation:
170,000 common stocks outstanding, January 1
30,000 additional common stock issued, May 1 ⇒ 30,000 x 8/12 = 20,000
diluted shares = 12,000 (since each preferred stock is convertible to common stock, then all of them must be included as diluted stocks)
total number of shares = 170,000 +20,000 + 12,000 = 202,000 shares
Given the following information for Watson Power Co., find the WACC. Assume the companyâs tax rate is 21 percent.
Debt: 15,000 bonds with a 5.8 percent coupon outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par; the bonds make semiannual payments.
Common stock: 575,000 shares outstanding, selling for $64 per share; the beta is 1.09.
Preferred stock: 35,000 shares of 2.8 percent preferred stock outstanding, currently selling for $65 per share.
Market: 7 percent market risk premium and 3.2 percent risk-free rate.
Required:
What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16)
Answer:
8.60%
Explanation:
For computing the WACC first we need to find the following items
Debt:
Value of Debt is
= Number of bonds × Par value × Given percentage
= 15,000 × $1,000 × 108%
= $16,200,000
Now
Par Value = $1,000
So,
Current Price is
= 108% × $1,000
= $1,080
Given that
Annual Coupon Rate = 5.8%
So, Semiannual Coupon Rate = 2.90%
Now its Semiannual Coupon amount is = 2.90% × $1,000 = $29
Time period = 25 years
Semiannual time period = 50 years
Let we assume the semiannual yield to maturity be x%
Current Price = Coupon amount × PVIFA (x%, time period) + Par value × PVIF(x%, time period)
$1,080 = $29 * PVIFA(x%, 50) + $1,000 × PVIF(x%, 50)
Using financial calculator:
N = 50
PV = -$1,080
PMT = 29
FV = $1,000
We got the X i.e interest rate is 2.612%
Semiannual YTM = 2.612%
Annual YTM = 2 × 2.612% = 5.224%
Now this is a before tax cost of debt
So, after cost of debts is
= Before tax cost of debt × (1 - tax rate)
= 5.224% × (1 - 0.21)
= 4.127%
For Common Stock:
As we know that
Expected Rate of Return = Risk Free Rate + Beta × Market Risk Premium
= 0.032 + 1.09 × 0.07
= 0.032 + 0.0763
= 0.1083 or 10.83%
Now
Value of Equity is
= Number of outstanding shares × selling price per share
= 575,000 × $64
= $36,800,000
For Preferred Stock:
Cost of Preferred Stock = Expected Dividend ÷ Current Price
where,
Expected Dividend = $100 × 2.8% = $2.80
So,
Cost of Preferred Stock = 2.80 ÷ $65
= 4.308%
Now
Value of Preferred Stock = 35,000 × $65
= $2,275,000
So,
Value of Firm = Debt value + Common Stock value + Preferred Stock value
= $16,200,000 + $36,800,000 + $2,275,000
= $55,275,000
Weight of Debt is
= Debt value ÷ Total value of firm
= $16,200,000 ÷ $55,275,000
= 0.2930
Weight of Common Stock
= Common stock value ÷ Total firms value
= $36,800,000 ÷ $55,275,000
= 0.6658
Weight of Preferred Stock
= Preferred stock value ÷ Total firms value
= $2,275,000 ÷ $55,275,000
= 0.0412
Now
WACC = (Weight of Debt × After-tax Cost of Debt) + (Weight of Common Stock × Cost of Common Stock)+ (Weight of Preferred Stock × Cost of Preferred Stock )
= (0.2930 × 0.04127) + (0.6658 × 0.1083) + (0.0412 × 0.04308)
= 1.209211 + 7.210614 + 0.17749
= 8.60%
what is socail engineering?
Answer:
Social engineering, in the context of information security, is the psychological manipulation of people into performing actions or divulging confidential information. This differs from social engineering within the social sciences, which does not concern the divulging of confidential information.
Explanation:
Answer:
Explanation:
1. the use of centralized planning in an attempt to manage social change and regulate the future development and behavior of a society.
2.
(in the context of information security) the use of deception to manipulate individuals into divulging confidential or personal information that may be used for fraudulent purposes.
"people with an online account should watch for phishing attacks and other forms of social engineering"
A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 76 pounds of Kona coffee beans a day. (Demand can be assumed to be distributed normally with a standard deviation of 13 pounds per day). After ordering (fixed cost = $19 per order), beans are always delivered from Hawaii in exactly 4 days. Per-pound annual holding costs for the beans are $2. Refer to the standard normal tableLOADING... for z-values.
Answer:
Explanation:
Base on the scenario been described in the question, we use the following method to solve the question
d = 75 lbs/day 200 days per year
D= 15,000 lb/year H= $3/lb/year S= $16/order
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions:
May
3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500.
5. Received cash from clients on account, $2,450.
9. Paid cash for a newspaper advertisement, $225.
13. Paid Office Station Co. for part of the debt incurred on April 5, $640.
15. Recorded services provided on account for the period May 1â15, $9,180.
16. Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.
17. Recorded cash from cash clients for fees earned during the period May 1â16, $8,360.
Record the following transactions on Page 6 of the journal:
20. Purchased supplies on account, $735.
21. Recorded services provided on account for the period May 16â20, $4,820.
25. Recorded cash from cash clients for fees earned for the period May 17â23, $7,900.
27. Received cash from clients on account, $9,520.
28. Paid part-time receptionist for two weeks' salary, $750.
30. Paid telephone bill for May, $260.
31. Paid electricity bill for May, $810.
31. Recorded cash from cash clients for fees earned for the period May 26â31, $3,300.
31. Recorded services provided on account for the remainder of May, $2,650.
31. Kelly withdrew $10,500 for personal use.
Instructions:
Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet using the following adjustment data.
Insurance expired during May is $275.
Supplies on hand on May 31 are $715.
Depreciation of office equipment for May is $330.
Accrued receptionist salary on May 31 is $325.
Rent expired during May is $1,600.
Unearned fees on May 31 are $3,210.
If an amount box does not require an entry, leave it blank or enter "0".
Kelly Consulting End-of-Period Spreadsheet (Work Sheet) For the Month Ended May 31, 20Y8:
Unadjusted Adjustments Adjusted Income Balance
Trial Balance Trial Balance Statement Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash
Accounts Receivable
Supplies
Prepaid Rent
Prepaid Insurance
Office Equipment
Accum. Depreciation
Accounts Payable
Salaries Payable
Unearned Fees
Common Stock
Retained Earnings
Dividends
Fees Earned
Salary Expense
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
Net income
Missing information:
Kelly Consulting POST-CLOSING TRIAL BALANCE April 30, 2016
ACCOUNT TITLE DEBIT CREDIT
1 Cash 22,100.00
2 Accounts Receivable 3,400.00
3 Supplies 1,350.00
4 Prepaid Rent 3,200.00
5 Prepaid Insurance 1,500.00
6 Office Equipment 14,500.00
7 Accumulated Depreciation 330.00
8 Accounts Payable 800.00
9 Salaries Payable 120.00
10 Unearned Fees 2,500.00
11 Common Stock 30,000.00
12 Retained Earnings 12,300.00
13 Totals 46,050.00 46,050.00
Answer:
Kelly Consulting
Income statement
May 31st, 2016
Fees earned $40,000
Salary expense ($1,705)
Rent expense ($1,600)
Supplies expense ($1,370)
Depreciation expense ($330)
Insurance expense ($275)
Miscellaneous expense ($1,295)
Net income $33,425
Kelly Consulting
Balance Sheet
May 31st, 2016
Assets:
Cash $44,195
Accounts receivable $8,080
Supplies $715
Prepaid rent $1,600
Prepaid Insurance $1,225
Equipment $14,500
Accumulated depreciation office equipment ($660)
Total assets = $69,655
Liabilities:
Unearned fees $3,210
Accounts payable $895
Wages payable $325
Equity:
Capital, Kelly Pitney $30,000
Drawings, Kelly Pitney ($10,500)
Retained Earnings $45,725
Total liabilities and equity = $69,655
Explanation:
cash $4,500 + $2,450 - $225 - $640 - $750 + $8,360 + $7,900 + $9,520 - $750 - $1,070 + $3,300 - $10,500
unearned fees $4,500 - $1,290
accounts receivable -$2,450 + $9,180 + $4,820 - $9,520 + $2,650
advertising expense $225
accounts payable -$640 + $735
service revenue $9,180 + $8,360 + $4,820 + $7,900 + $3,300 + $2,650 + $3,790
wages expense $750 + $750 + $325 - $120
wages payable $325
supplies $735 - $20
utilities expense $260 + $810
drawings Kelly $10,500
insurance expense $275
supplies expense $1,370
depreciation $330
rent expense $1,600
Answer 1:
Kelly Consulting
POST-CLOSING TRIAL BALANCE April 30, 2016
Account - Debit and Credit
1 Cash 22,100.00
2 Accounts Receivable 3,400.00
3 Supplies 1,350.00
4 Prepaid Rent 3,200.00
5 Prepaid Insurance 1,500.00
6 Office Equipment 14,500.00
7 Accumulated Depreciation 330.00
8 Accounts Payable 800.00
9 Salaries Payable 120.00
10 Unearned Fees 2,500.00
11 Common Stock 30,000.00
12 Retained Earnings 12,300.00
13 Totals 46,050.00 46,050.00
Answer 2:
Kelly Consulting
Income statement
May 31st, 2016
Fees earned $40,000
Salary expense ($1,705)
Rent expense ($1,600)
Supplies expense ($1,370)
Depreciation expense ($330)
Insurance expense ($275)
Miscellaneous expense ($1,295)
Net income $33,425
Answer 3 :
Kelly Consulting
Balance Sheet
May 31st, 2016
Assets:
Cash $44,195Accounts receivable $8,080Supplies $715Prepaid rent $1,600Prepaid Insurance $1,225Equipment $14,500Accumulated depreciation office equipment ($660)Total assets = $69,655Liabilities:
Unearned fees $3,210Accounts payable $895Wages payable $325Equity:Capital, Kelly Pitney $30,000Drawings, Kelly Pitney ($10,500)Retained Earnings $45,725Total liabilities and equity = $69,655Working notes:
Cash =$4,500 + $2,450 - $225 - $640 - $750 + $8,360 + $7,900 + $9,520 - $750 - $1,070 + $3,300 - $10,500
Unearned fees $4,500 - $1,290
Accounts receivable -$2,450 + $9,180 + $4,820 - $9,520 + $2,650
Advertising expense $225
Accounts payable -$640 + $735
Service revenue $9,180 + $8,360 + $4,820 + $7,900 + $3,300 + $2,650 + $3,790
Wages expense $750 + $750 + $325 - $120
Wages payable $325
Supplies $735 - $20
Utilities expense $260 + $810
Drawings Kelly $10,500
Insurance expense $275
Supplies expense $1,370
Depreciation $330
Rent expense $1,600
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The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August.
Costs:
Actual labor rate $12 per hour
Actual materials price $190 per ton
Standard labor rate $11.50 per hour
Standard materials price $193 per ton
Quantities:
Actual hours incurred and used 4,100 hours
Actual quantity of materials purchased and used 1,500 tons
Standard hours used 4,140 hours
Standard quantity of materials used 1,490 tons
Required:
(a) Compute the total, price, and quantity variances for materials and labor.
Answer:
Total Materials Variance = $2,570 Favorable
Materials Price Variance = $ 4,500 Favorable
Materials Quantity Variance = $ 1,930 Unfavorable
Total Labor Variance = $ 1,590 Unfavorable
Labor Price Variance = $ 2,050 Unfavorable
Labor Quantity Variance = $ 460 Favorable
Explanation:
Find the given attachments
Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings $ 86,000 $ 17,500 Shares outstanding 43,000 18,000 Per-share values: Market $ 58 $ 14 Book $ 18 $ 9 Assume that Firm X acquires Firm Y by issuing long-term debt for all the shares outstanding at a merger premium of $7 per share, and that neither firm has any debt before the merger. List the assets of the combined firm assuming the purchase accounting method is used.
Answer:
Total assets X Y 1,152,000
Explanation:
Since both the firms do not have any liability -Book value of equity = Carrying value of assets
Goodwill = Net consideration - Market Value of Assets of Y
Assets from X 18 x 43000 774000
Assets From y 14 x 18000 252000
Goodwill (18000 x (14+7)) - 252000 = 126000
Total assets X Y 1152000
Using the following information, compute the direct materials used. Raw materials inventory, January 1 $ 20000 Raw materials inventory, December 31 40000 Work in process, January 1 18000 Work in process, December 31 12000 Finished goods, January 1 40000 Finished goods, December 31 32000 Raw materials purchases 1800000 Direct labor 760000 Factory utilities 150000 Indirect labor 50000 Factory depreciation 400000 Operating expenses 420000
Answer:
$1,320,000
Explanation:
According to the scenario, computation of the given data are as follow:-
Purchase of raw material = $1,800,000
Opening stock of raw material = $20,000
Closing stock of raw material = -$3,140,000
Direct Material Used = Purchase of Raw Material + Opening Stock of Raw Material - Closing Stock of Raw Material
= $1,800,000 + $20,000 - $3,140,000
= $1,320,000
Neosho Corporation's Gauge Division manufactures and sells product no. 24, which is used in refrigeration systems. Per-unit variable manufacturing and selling costs amount to $23 and $7, respectively. The Division can sell this item to external domestic customers for $40 or, alternatively, transfer the product to the company's Refrigeration Division. Refrigeration is currently purchasing a similar unit from Taiwan for $36. Assume use of the general transfer-pricing rule. Required: A. What is the most that the Refrigeration Division would be willing to pay the Gauge Division for unit? B. If Gauge had excess capacity, what transfer price would the Division's management set? C. If Gauge had no cxecss capacity, what transfer price would the Division's management sct? D. Repeat part "C," assuming that Gauge was able to reduce the variable cost of internal transfers b $5 per unit
Answer:
(a) Refrigeration would be willing to pay a maximum of Rate 36 to gauge division for unit. because its outside purchase price. (b) $30 (c) $40 (d) $35
Explanation:
Solution
Given that:
(A) The Refrigeration would be willing to pay a maximum of Rate 36 to gauge division for unit. because its outside purchase price.
(B) If Gauge had excess capacity, The Division's Management set the transfer price would be $30. this is because transfer price be set as sum of Total Outlay cost and Opportunity Cost. So, ($23 + $7) + $0 = $30
(C) iF Gauge had no excess capacity, the transfer price would be $40.
The Calculation of Transfer price is as follows:
($23 + $7) = $30
Add :- ($40 - $23 -$7) = $10
Hence, the transfer Price = $40
(D) If Gauge was able to reduce the variable cost of internal transfers b $5 per unit then Transfer Price Would be $35.
Thus,
The calculation of transfer price is as follows:-
($23 + $7 - $5) = $25
Add :- ($40 - $23 -$7) = $10
The transfer Price = $35
For each of the following characteristics, indicate whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither. (Note: If the characteristic describes neither, leave the entire row unchecked.) Check all that apply.
Characteristic Perfectly Competitive Monopolistically Competitive
Sells a product identical to that of its competitors
Can earn economic profit in the short run
Produces above the minimum of average total cost in the long run
Charges a price that is the same as marginal cost
Produces welfare-maximizing level of output
Has marginal revenue less than price
Answer:
Monopolistically competitive Monopolistically competitive Perfectly competitive Monopolistically competitive Perfectly competitive Monopolistically competitiveExplanation:
Monopolistic competition is the representative of a company in which the multiple companies is providing the identical but not ideal replacements for the goods or the services. All such companies that have no capacity to decide the supply reductions or to raise the profits are comes under the Monopolistic competitive for example In the short to mid term obtain economic profit, Has lower marginal profit than cost etc.
Perfect competition is a standard with which the real-life family firms could be the measured, to the optimal form. Perfect competition is the opposite of monopolistic competition.In the Perfect competition there are several buyers and sellers, and costs represent market forces. Industries only gain sufficient income to keep in the business environment such as Brings in welfare-maximizing efficiency rates.
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy:
Direct materials: 6 microns per toy at $0.34 per micron
Direct labor: 1.2 hours per toy at $6.90 per hour
During July, the company produced 5,100 Maze toys. The toy's production data for the month are as follows:
Direct materials: 76,000 microns were purchased at a cost of $0.33 per micron. 37,750 of these microns were still in inventory at the end of the month.
Direct labor: 6,620 direct labor-hours were worked at a cost of $48,326.
Required:
1. Compute the following variances for July:a. Direct materials price and quantity variances.b. Direct labor rate and efficiency variances.2. Prepare a brief explanation of the possible causes of each variance.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct materials: 6 microns per toy at $0.34 per micron
Direct labor: 1.2 hours per toy at $6.90 per hour
During July, the company produced 5,100 Maze toys.
Direct materials: 76,000 microns were purchased at a cost of $0.33 per micron. 37,750 of these microns were still in inventory at the end of the month.
Direct labor: 6,620 direct labor-hours were worked at a cost of $48,326.
1) To calculate the direct material price and quantity variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (0.34 - 0.33)*76,000
Direct material price variance= $760 favorable
This variance can be explained by negotiation with the supplier, finding a new supplier, or a market decrease in the price of the part.
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (5,100*6 - 38,250)*0.34
Direct material quantity variance= $2,601 unfavorable
This variance can be explained by a decrease in the quality of the part, mishandlings, and breakage of parts, or an inexperienced worker.
2) To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (5,100*1.2 - 6,620)*6.9
Direct labor time (efficiency) variance= $3,450 unfavorable
This variance can be explained by an inexperienced worker or a trainee, a break down of a machine, a new part, etcetera.
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 48,326/6,620= $7.3
Direct labor rate variance= (6.9 - 7.3)*6,620
Direct labor rate variance= $2,648 unfavorable
Box Elder Power Company expects to operate at 85% of productive capacity during May. The total manufacturing costs for May for the production of 40,000 batteries are budgeted as follows:
Direct materials $240,000
Direct labor 100,000
Variable factory overhead 32,000
Fixed factory overhead 150,000
Total manufacturing costs $522,000
The company has an opportunity to submit a bid for 5,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal operation during May or increase the selling or administrative expenses.
Required:
1. What is the unit cost below which Box Elder Power Company should not go in bidding on the government contract?
Answer:
The company should not go below $9.30 in bidding on the government contract.
Explanation:
Given:
Direct materials = $240,000
Direct labor = 100,000
Variable factory overhead = 32,000
Fixed factory overhead = 150,000
Total manufacturing costs = $522,000
Direct Material p.u = $240,000 ÷ 40,000 = $6
Direct Labor p.u = $100,000 ÷ 40,000 = $2.5
Variable Factory overhead p.u = $32,000 ÷ 40,000 = $0.8
Total overhead = Direct Material p.u + Direct Labor p.u + Variable Factory overhead p.u
= $6 + $2.5 + $0.8
Thus total overhead = $9.3
Crystal Glasses recently paid a dividend of $2.70 per share, is currently expected to grow at a constant rate of 5%, and has a required return of 11%. Crystal Glasses has been approached to buy a new company. Crystal estimates if it buys the company, its constant growth rate would increase to 6.5%, but the firm would also be riskier, therefore increasing the required return of the company to 12%. Should Crystal go ahead with the purchase of the new company?
Answer:
The purchase of the new company increases the price per share of Crystal from $47.25 to $52.28.As the price of the share will increase from purchase of the new company, Crystal should go ahead with the project.
Explanation:
To determine whether to purchase the company or not, we first need to calculate the current share price or fair value of share. We will use the constant growth model of DDM to estimate the current fair value as the dividends are expected to grow at a constant rate. It bases the value of a share on the present value of the expected future dividends.
The share price today can be calculated as,
P0 = D1 / r - g
Where,
D1 is the dividend expected for the next periodr is the required rate of returng is the growth rate in dividendsP0 = 2.7 * (1+0.05) / (0.11 - 0.05)
P0 = $47.25
If the purchase of the new company increases the fair value of the share more than its current level, then Crystal Glasses should go ahead with the purchase. We estimate the price per share if the new company is purchased as,
P0 = 2.7 * (1+0.065) / (0.12 - 0.065)
P0 = $52.28
As the price of the share will increase from purchase of the new company, Crystal should go ahead with the project.
A refinery blends three petroleum components into three grades of gasoline –regular, premium, and diesel. The maximum quantities available of each component and the cost per barrel are as follows: Component Cost/Barrel Maximum Barrels Available/Day A 9 6,000 B 7 3,000 C 10 4,500 To ensure that each gasoline grade retains certain essential characteristics, the refinery has put limits on the percentages of the components in each blend. The limits, as well as the selling prices for the various grades, are as follows:
Grade Selling Price/Barrel Component Specifications
R (regular) 18 Not less than 30% of A
Not more than 30% of B
Not less than 30% of C
P (premium) 25 Not less than 60% of C
A (diesel) 15 Not more than 50% of B
less than 10% of A
The refinery wants to produce at least 5,000 barrels of each grade of gasoline. The management wishes to determine the optimal mix of the three components that will maximize profit.
a. Define the decision variables.
b. Build an objective function.
c. Build all the constraints.
Answer:
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Explanation:
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An external competitor to Construction (from another island) is offering to build the new homes for $1300 each. Here are facts about the each of the projects (incline, bridge, campground, new home) Construction is considering:
Revenue Variable Cost Incline $1,400 $600
Bridge $1,500 $950
Campground $2,700 $1,200
New Home ? $700
Island Evaluations only wants to hire one company to build all five homes. In other words, either Construction (internal) will build all five, or the competitor (from another island) will build all five new homes. Island Evaluations plans on selling the homes to new tenants for $2,500 each.
a) What is the minimum transfer price (per home) that Construction would be willing to accept?
b) What is the maximum transfer price (per home) Island Evaluations would be willing to accept?
Answer:
a. The minimum transfer price (per home) that Construction would be willing to accept would be $1,270
b. The maximum transfer price (per home) Island Evaluations would be willing to accept would be $1,300
Explanation:
a. According to the given data If Construction accepts the proposal of Island Evaluations, then it has to foregone the profits which could have been earned if Construction accepted the proposal of local villagers to build an incline, a bridge and a campground.
Hence, minimum transfer price (per home) for Construction should be such that it covers the profit foregone as given above:
Now, profit foregone is calculated as per the table below:
Figures in $
Particulars Revenue Cost Profit
Incline 1400 600 800
Bridge 1500 950 550
Campground 2700 1200 1500
Total 5600 2750 2850
Therefore, the transfer price should be such which can generate a profit of $2,850 for Construction.
Therefore, total revenue which should be generated = Cost of building five new homes + Profit foregone
= 700*5 + 2850 = $6,350
Hence, minimum transfer price (per home) should be = 6350/5 = $1,270
b. The maximum transfer price (per home) that Island Evaluations will be willing to accept is $1,300 per home as quoted by the external competitor from another island.
Motivational theory applications argue for recognizing individual differences. They also suggest paying attention to members of diverse groups. Is this a contradiction? Why or why not? Compare and contrast two motivational theories (one content and one process theory) regarding how they can support diversity within teams.
Explanation:
It is not a contradiction to say that motivational theory advocates the recognition of individual differences and at the same time also suggests paying attention to members of different groups.
This is due to the fact that people have distinct personality, values and skills, which in an organizational environment must be properly recognized and developed so that it can be integrated into a group and contribute to the different characteristics that integrated will assist the organization in reaching its goals. goals and objectives. It is important that the organization observes the strengths of each employee and seeks strategies to develop them to improve individual and collective work and productivity.
The theory of content in motivation is relevant in this context, as it is a theory that focuses on what motivates the human being and enables the process by which organizations are able to analyze and understand what are the main motivational sources of their employees in the company, which adds the benefits of working in a process of continuous improvement that involves satisfaction, motivation, innovation and maintenance of staff.
A mercury manometer (\rhorho= 13,600 kg/m^3) is connected to an air duct to measure the pressure inside. The difference in the manometer levels is 30 mm, and the atmospheric pressure is 100 kPa.
(a) Determine if the pressure in the duct is above or below the atmospheric pressure.
(b) Determine the absolute pressure in the duct.
Answer:
A) The pressure is below atm pressure
B) Pabs = 96 kPa
Explanation:
Pressure exerted by mercury = pgh
Where: p = density (13600 kg/m^3)
g = acceleration due to gravity 9.81 m/s^2
h = level difference within manometer = 30 mm = 30x10^-3 m
Pressure = 13600 x 9.81 x 30x10^-3
= 4002.43 Pa = 4.00243 kPa
This is below atmospheric pressure
Absolute pressure is calculated as:
Pabs = Pg + Patm
Pabs = -4 + 100 = 96 kPa
At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $840,000, and direct materials costs, $400,000. At year-end, the company’s records show that actual overhead costs for the year are $1,151,500. Actual direct materials cost had been assigned to jobs as follows.
Jobs completed and sold $390,000
Jobs in finished goods inventory 83,000
Jobs in work in process inventory 55,000
Total actual direct materials cost $528,000
Required:
a. Determine the predetermined overhead rate.
b. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied.
c. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.
Answer:
a) Predetermined overhead rate is 210%
b. Overhead is under-applied by $42,700
c. Particulars Debit credit
cost of goods sold $42,700 $42,700
factory overhead
Explanation:
Beginning of the year
Overhead costs = $840,000
Direct materials costs = $400,000
End of the year actual overhead cost = $1,151,500
Jobs completed and sold = $390,000
Jobs in finished goods inventory = $83,000
Jobs in work in process inventory = $55,000
Total actual direct materials cost = $528,000
a. Calculating the predetermined overhead rate= (Overhead ÷direct labor) × 100
Predetermined overhead rate= ($840,000 ÷ $400,000) × 100
= 210%
b. Factory overhead
Actual overhead = $1,151,500
Applied overhead = $528000 × 210% = $1,108,800
Difference = actual overhead- applied overhead
= $1,151,500 - $1,108,800
= $42,700 Under-applied overhead
c. Adjusting entry to allocate the above under-applied overhead cost of goods sold
Particulars Debit credit
cost of goods sold $42,700 $42,700
factory overhead
Four key markets and the circular flow of income
The circular-flow diagram is a visual model of the economy. The circular
flow of income is coordinated by four key markets.
1. The resource market coordinates businesses demanding resources and
households supplying them in exchange for income capital into balance with
the borrowing by businesses and governments. with sales (exports plus net
inflow of capital) to them government purchases, and net exports) with the
supply of domestically produced goods and.
2. The loanable funds market brings the net saving of households plus the net
inflow of foreign.
3. The foreign exchange market brings the purchases (imports) from foreigners into
balance.
4. The goods and services market coordinates the demand (consumption,
investment, services (real GDP). For each transaction in the following table,
identify which of the four key markets the transaction
Transaction Goods and Foreign Loanable Resource
Services Exchange Funds Market
Marke Market Market
A domestic car company purchases
a new welding machine from a local manufacturer.
The government spends more than it has in tax
revenue, running a budget deficit that is financed
with government bonds.
A local business borrows $100,000 from a bank.
A local business hires a consultant to retrain its employees.
Answer and Explanation:
As per the data given in the question,
1)
A domestic car company buys a new welding machine from a local manufacturer = Goods and service market
Goods and service market is that place where households purchase items and business person sell their products.This market includes stores, Internet, and other places where customer can exchange goods and services.
2)
Government pays more amount than it has it its tax revenue which indicates it's running budget deficit that is financed with government bonds = Foreign exchange market
Foreign exchange market is a platform where global decentralized trading of currencies takes place. This market defines foreign exchange rates for every currency.
3)
A local business takes $100,000 for temporary use form bank = Loanable fund market
loanable fund market determines the market interest rate. According to this, the interest rate is determined by demand and supply of loanable funds.
4)
A local business hires consultant to counsel its employee = Resource market
Resource market is a market in which the business person can go in the market to buy the resources in order to purchased the goods and services
the two mean sets of accounting standards followed by business are Gaapand IFRS. breifly explain how the balance sheet is formatted under each set??
Answer:GAAP arranged balance sheet in their order of liquidity. From current asset to non current asset then to current liabilities to non current liabilities and finally to owners Equity. Under IFRS they start with non current asset, then to current asset, then to owners Equity and from owners Equity to non current asset and finally to current liabilities.
Explanation:
A balance sheet is a classified list of the debit and credit balances remaining on the books after the preparation of the trading profit and loss account. The purpose of a balance sheet is to present a true and fair view of the financial position of the business at a given date. Under the GAAP, balance sheet are arranged in their order of liquidity. In other words asset are arranged in the reverse order of their realisability or in their ease of conversion into cash. Under GAAP, current asset comes first followed by non current asset, then followed by current liabilities, then by non current liabilities, and lastly by owners Equity.
Under IFRS, the order accepted by them is that balance sheet should be arranged in reverse order to that of GAAP. They start with non current asset, followed by current asset, then followed by owners equity, then followed by non current liabilities and lastly by current liabilities.
1. For each of the following payment schemes, choose which is better at an interest rate of 5%
a. Receiving $7,000 right now, or $750 per year for 12 years, starting next year.
b. Receiving $10,000 in 10 years, or receiving $1,000 per year for 5 years, starting now.
2. For each of the following pairs of options, find the interest rate which would make you indifferent between them.
a. Receiving $1,000 now, or $1,402.55 in five years.
b. Receiving $166,666.67 now, or $15,000 per year in perpetuity starting next year.
Answer:
Explanation:
The pictures attached shows the solution, and its explanatory i hope it helps you. Thank you
Fredrick Paulson Tie Co. manufactures neckties and scarves. Two overhead application bases are used; some overhead is applied on the basis of raw material cost at a rate of 150% of material cost, and the balance of the overhead is applied at the rate of $7.25 per direct labor hour. Required: Calculate the cost per unit of a production run of 540 neckties that required raw materials costing $2,110 and 69 direct labor hours at a total cost of $865. (Round your answer to 2 decimal places.)
Answer:
Unitary cost= $12.30
Explanation:
Giving the following information:
Overhead rate:
Rate 1= 150% of material costs
Rate 2= $7.25 per direct labor hour.
Production:
540 neckties
raw materials= $2,110
Direct labor hours= 69 direct labor hours at a total cost of $865.
First, we need to calculate the total cost:
Total cost= 2,110 + 865 + (1.5*2,110 + 7.25*69)
Total cost= $6,640.25
Unitary cost= 6,640.25/540= $12.30
MA-4 (Static) Recording a Bond Investment Held as Trading Securities LO A-1
On January 1, 2018, Brian Company purchased at par $800,000, 6 percent bonds issued by Laura Company to be actively traded. At December 31, 2018, the bonds had a fair value of $775,000. The bond investment was sold on July 1, 2019, for $802,000. Brian Company’s fiscal year ends on December 31.
Record (1) the adjustment of the bond investment on December 31, 2018, and (2) the sale of the bonds on July 1, 2019. Ignore interest. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Recognize the fair value of investments $775,000 on December 31, 2018.
2. Recognize the fair value of investments on July 01, 2019.
3. Recognize the cash received from sale of investments on July 01, 2019.
Date/General Journal/Debit/Credit/
Answer:
MA-4 Bond Investment Held as Trading Securities
1) Journal Entries:
December 31, 2018:
Debit Loss on Bond Investment $25,000
Credit Bond Investment (Held as Trading Securities) $25,000
To recognize the fair value of bonds.
July 1, 2019:
Debit Bond Investment (Held as Trading Securities) $27,000
Credit Gain on Bond Investment 27,000
To recognize the fair value of investments.
July 1, 2019:
Debit Cash Account $802,000
Credit Bond Investment 802,000
To recognize the cash from sale of investments.
Explanation:
a) Investments in Debt Securities, e.g. Bonds are classified into i) For Trading, ii) Available for Sale, and iii) Held to Maturity. They have different account treatments.
b) Debt Securities for Trading are held for short-term profits in the price movements of the investment. They are accounted for using the Fair Value method. With this method, the fair value of the investment is recognized and the Gains and Losses at each accounting period are taken to operating income.
The appropriate journal entries to record the adjustment of the bond investment on December 31, 2018, and the sale of the bonds on July 1, 2019 are:
1. December 31, 2018
Debit Unrealized holding loss $25,000
Credit Fair value adjustment- Trading Securities $25,000
($800,000-$775,000)
(To record unrealized loss on trading investment)
2. July 1, 2019
Debit Fair value adjustment-Trading Securities $27,000
Credit Unrealized holding gain $27,000
($802,000-$775,000)
(To record unrealized gain on trading investment)
July 1, 2019
Debit Cash $802,000
Credit Fair value adjustment-Trading Securities $802,000
(To record sale of trading securities)
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Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 22,200 units of product to finished goods inventory. Its 3,000 units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct material costs and $2,165,940 of conversion costs were charged to production.
Prepare the company's process cost summary for May using the weighted-average method.
Answer:
Valuation of output
$
Completed units = 2,544,000.
Closing WIP = 240,480
Explanation:
Equivalent unit for conversion cost
Item units equivalent unit
Completed 22,200 100%× 22,200 22,200
Closing WIP 2,2400 80%× 2,400 1,920
Total equivalent unit 24,120
Cost per equivalent unit for conversion cost =
(221,940 + 2,165,940)/=24,120= $99
Equivalent unit for material cost
Equivalent unit for Material = 22,200 + 2,400 =24,600
Cost per equivalent unit for material cost
= 19800+496800/24,600= $21
Valuation of output $
Completed units = (21+99)× 21,200 = 2,544,000.
Closing WIP = 99× 1920 + (21 × 2,400) = 240,480
The Finishing Department had 5,200 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,400 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,200 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.
Required:
A) How many units were transferred-out during the period?
Answer:
The total amount of units were transferred-out during the period iv 18,400 units
Explanation:
Beginning Work-in-Process = 5,200 incomplete units
Units received from previous department = 15,400 units
Ending Work-in-Process = 2,200 units
Units were transferred-out during the period = beginning Work-in-Process Inventory + units were received - ending Work-in-Process Inventory
Units were transferred-out during the period = 5,200 + 15,400 - 2,200
= 18,400 units
Schmidt Electronics offered an incentive stock plan to its employees. On January 1, Year 1, 90 comma 000 options were granted for 90 comma 000 $1 par common shares. The exercise price equals the $6 market price of the common stock on the grant date. The vesting period is 3 years. The options cannot be exercised before January 1, Year 4, and expire on December 31, Year 5. Each option has a value of $ 6 based upon an option pricing model. At the end of the first year, it is expected that 100% of employees will exercise the options. By the end of Year 2, it is expected that only 80% of the options will be exercised. Schmidt chooses to adjust the fair value of the options for the estimated forfeitures. What is the journal entry to record compensation expense for year 2? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.)
Answer:
China
Explanation:
China
Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can be used by the Cologne Division. The Bottle Division's variable manufacturing cost is $4.00, the shipping cost is $0.30, and the external sales price is $5.00. No shipping costs are incurred on sales to the Cologne Division, and the Cologne Division can purchase similar containers in the external market for $4.60. The Bottle Division has sufficient capacity to meet all external market demands in addition to meeting the demands of the Cologne Division. Using the general rule, the transfer price from the Bottle Division to the Cologne Division would be:
Answer: $4
Explanation:
The Bottle division is said to be able to meet all excess demand outside as well as that of the Cologne Division.
When this is the case in a company, individual divisions are allowed to transfer to each other at a rate equal to their Variable Costs. This is the general rule.
The Variable Costs for the containers is $4 so that is the transfer price as well.