Business

Bridges and Lloyd, an accounting firm, provides consulting and tax planning services. For many years, the firm's total administrative cost (currently $250,000) has been allocated to services on the basis of billable hours to clients. A recent analysis found that 65% of the firm's billable hours to clients resulted from tax planning services, while 35% resulted from consulting services. The firm, contemplating a change to activity-based costing, has identified three components of administrative cost, as follows: Staff Support $ 180,000 In-house computing charges 50,000 Miscellaneous office costs 20,000 Total $ 250,000 A recent analysis of staff support found a strong correlation between the number of staff personnel and the number of clients served (consulting, 20; tax planning, 60). In contrast, in-house computing and miscellaneous office cost varied directly with the number of computer hours logged and number of client transactions, respectively. Consulting consumed 30% of the firm's computer hours and had 20% of the total client transactions. If Bridges and Lloyd switched from its current accounting method to an activity-based costing system, the amount of administrative cost chargeable to consulting services would:________.a. decrease by $23,500. b. change, but the amount cannot be determined based on the information presented. c. increase by $23,500. d. decrease by $32,500. e. change by an amount other than those listed.
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On January 1, Smith Industries leased equipment to a customer for a four-year period, at which time possession of the leased asset will revert back to Smith. The equipment cost Smith $425,000 and has an expected useful life of six years. Its normal sales price is $425,000. The residual value after four years is $100,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 8%. Calculate the amount of the annual lease payments. (Round your answer to the nearest whole dollar.)
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what is a work bench
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Concord Corporation has issued 110,000 shares of $4 par value common stock. It had authorized 492,000 shares. The paid-in capital in excess of par value on the common stock is $259,000. The corporation has reacquired 6,400 shares at a cost of $52,000 and is currently holding those shares. It also had accumulated other comprehensive income of $68,000. The corporation also has 1,600 shares issued and outstanding of 10%, $103 par value preferred stock. It authorized 9,200 shares. The paid-in capital In excess of par value on the preferred stock is $29,900. Retained earnings is $369,000.Prepare the stockholders' equity section of the balance sheet.
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What factor reflects the 'cost of money'?The 'cost of money' is reflected in theO interest ratesinflation ratesO variable ratesO fixed rates
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If the technology, the nature of competition, or the regulatory environment changes in an industry, then: Question 2 options: organizations are created by random events, just like markets. the appropriate organizational architecture will change too. a good organizational architecture is always able to cope with changes. organizational architecture is able to restore the former market environment.
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What term is used for the extent to which an individual within an organization displays different behaviors in different situations?
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Whirly Corporations contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,600 units) $ 250,800 $ 33.00 Variable expenses 144,400 19.00 Contribution margin 106,400 $ 14.00 Fixed expenses 54,800 Net operating income $ 51,600 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 6,600 units?
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A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUs. Following are the characteristics of one item:Demand (D) = 72 units/week (Assume 48 weeks per year)Ordering and setup cost (S) = $55 /orderHolding cost (H) = $18 /unit/yearLead time (L) = 3 week(s)Standard deviation of weekly demand = 18 unitsCycle-service level = 90 percentEOQ = 145 unitsUnder the same information as above, develop the best policies for a periodic review system. 1. The value of P that gives the same approximate number of orders per year as the EOQ is weeks (Hint: please round your answer to the nearest positive integer number). 2. The target inventory level that provides an 88 percent cycle-service level is units (Hint: please round your answer to the nearest positive integer number).
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Which of the following statements are true of an installment loan?1) the term is much longer than other loans2) lower interest rates are charged to borrowers3) is technically an unsecured loan4) has a fixed number of payments in equal amounts
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Help please! Will mark brainliest!Which of these job descriptions is least likely to fall under an events' manager?
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The relationship between the type of diversification and overall firm performance Multiple Choice takes on the shape of an inverted U so related diversification has the best performance. is negative, meaning that more diversification always leads to lower firm performance. there is no relationship between the type of diversification and overall firm performance. takes on the shape of a U where modest diversification has the worst performance. is positive, meaning that more diversification always leads to higher firm performance.
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arrange the scrambled letterutsbetiusticeverspecitionmtoimclteantertsan
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We have a graduated tax system, and the tax brackets are listed in Appendix A. If you are not familiar with the Fair Tax and Flat Tax ideas, do a little research. Share what you think would be best for our country.
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what the role of marketing
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Freight TermsDetermine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paid Freight Terms Returns and Allowances (Invoice Amount) by Seller (Invoice Amount) a. $5,100 $200 FOB destination, 1/10, n/30 $1,700 b. 3,250 400 FOB shipping point, 2/10, n/30 1,000
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A for-profit institution that works with the general public to open and managesavings accounts is known as a(n).A. commercial bankB. savings bankC. credit unionD. investment bank
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Which of the following is an example of frictional unemployment? A former mayor doing volunteer work A former mayor doing volunteer work A factory worker who loses her job because of recession A factory worker who loses her job because of recession A college student working part-time at the campus bookstore A college student working part-time at the campus bookstore A college graduate interviewing for two available positions A college graduate interviewing for two available positions An architect whose job is replaced by computer software that designs buildings
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Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced. Overhead costs of $94,500 were estimated and allocated to the following activities: Activities Cost Drivers Total Cost Materials handling Number of requisitions $40,000 Machine setups Number of setups 21,500 Quality inspection Number of inspections 33,000 $94,500 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total Number of requisitions 400 600 1,000 Number of setups 200 300 500 Number of inspections 200 400 600 Instructions (a) Determine the overhead rates for each activity Expected Use Estimatedof Cost Driver/Activity-Based Activity Cost Pools Overhead Activity OH Rates Materials Handling/ requisition Machine Setups/setup Quality inspections/ inspection (b) Assign the manufacturing overhead costs for April to the two products using activity-based costing, and calculate a per unit OH cost.
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A non-current asset was depreciated at the end of the first year of ownership using the straight-line method based on the following information. Cost $20 000 Working life 4 years Residual value $4000 It was then found that the reducing balance method at 30% per annum should have been used. What was the effect on the profit for the year of correcting this error? A Decrease by $2000 B Increase by $2000 C Decrease by $6000 D Increase by $6000
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n many countries, one of the roles of the central bank is to provide loans to distressed financial institutions. What is the term for this? lender of last resort source of ultimate credit provider of fiduciary insurance liquidity resource bailout bank Another potential role of central banks is to foster confidence in the banking system by making sure that people can retrieve their money even if a bank goes bankrupt. What is the term for this? deposit guarantee banking promise deposit insurance financially distressed institution clause
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An error in the ending inventory balance in Year 1 will also affect: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 1. Year 1 cost of goods soldunanswered 2. Year 2 cost of goods soldunanswered 3. Year 2 ending inventoryunanswered 4. Year 2 beginning inventory
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Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories:Finished Goods $62,000Work in Process-Spinning Department 35,000Work in Process-Tufting Department 28,500Materials 17,000Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows:Jan.1 Materials purchased on account, $500,0002 Materials requisitioned for use:Fiber-Spinning Department, $275,000Carpet backing-Tufting Department, $110,000Indirect materials-Spinning Department, $46,000Indirect materials-Tufting Department, $39,50031 Labor used:Direct labor-Spinning Department, $185,000Direct labor-Tufting Department, $98,000Indirect labor-Spinning Department, $18,500Indirect labor-Tufting Department, $9,00031 Depreciation charged on fixed assets:Spinning Department, $12,500Tufting Department, $8,50031 Expired prepaid factory insurance:Spinning Department, $2,000Tufting Department, $1,00031 Applied factory overhead:Spinning Department, $80,000Tufting Department, $55,00031 Production costs transferred from Spinning Department to Tufting Department, $547,00031 Production costs transferred from Tufting Department to Finished Goods, $807,20031 Cost of goods sold during the period, $795,200Required:1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the Chart of Accounts for exact wording of account titles.2. Compute the January 31 balances of the inventory accounts.*3. Compute the January 31 balances of the factory overhead accounts.
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A sales clerk at Schackne Company correctly prepared a sales invoice for $5,200, but the invoice was entered as $2,500 in the sales journal and similarly posted to the general ledger and accounts receivable ledger. The customer remitted only $2,500, the amount on his or her monthly statement. The most effective procedure for preventing this type of error is to:
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