Answer:
The company should continue with the old machine, because the company will lost $5,500 in 5 years with new machine.
Explanation:
Labor saving by using new machine in 5 years = 5* ($11,200 - $7,400) = $19,000
The cost for new machine = $75,000 for newly purchase – sell old one for $50,500 = $24,500
So the total lost for new machine = cost of $24,500 – labor saving of $19,000 = $5,500
E16-25 (EPS with Convertible Bonds and Preferred Stock) On January 1, 2014, Crocker Company issued10-year, $2,000,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Crockercommon stock. Crocker�s net income in 2014 was $300,000, and its tax rate was 40%. The company had100,000 shares of common stock outstanding throughout 2014. None of the bonds were converted in 2014.Instructions(a) Compute diluted earnings per share for 2014.(b) Compute diluted earnings per share for 2014, assuming the same facts as above, except that$1,000,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferredshare is convertible into 5 shares of Crocker common stock.
Answer:
The answer is given below;
Explanation:
EPS=Net income-preferred dividends/Weighted average shares outstanding
a.Net income=$300,000*(1-30%)=$210,000
Common stocks 100,000
Bonds assumed to be converted into common stocks =$2,000,000/$1,000=2,000*15=30,000
Total common stocks=100,000+30,000=130,000
Diluted EPS=$210,000/130,000=$1.615
b.
*Net income=210,000-(1,000,000*6%)=$150,000
Common stocks=100,000
Bonds =$1,000,000/$1,000=1,000*15=15,000
Preferred stocks=$1,000,000/$100=10,000*5=50,000
Total weighted average shares=100,000+15,000+50,000=165,000
Diluted EPS=Net income-preferred dividends/Weighted average shares
EPS=*$150,000/165,000=$.909
At the year-end, Encore Company has a product for inventory that was purchased at a cost of $23. The product's expected selling price is $36 and the cost of completing the sale is $15. Using the lower of cost or net realizable value rule, what amount should be reported on the balance sheet for inventory
Answer:
$21
Explanation:
As we know that
The inventory should be recorded in the books of accounts by applying the lower value of cost or net realizable value
In the given case
The cost is $23
And, the net realizable value is
= Expected selling price - selling cost
= $36 - $15
= $21
So by comparing the cost and net realizable value, the net realizable value contains the lower value i.e $21 and the same is recorded on the balance sheet for inventory
Which of the following would NOT generally be a motive for a firm to hold inventories? to hedge against inflation to decouple various parts of the production process to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand to minimize reordering costs
Answer:
The answer is to minimize the reodering cost
Explanation:
We have three motives for holding inventory
1. Transaction motives of holding inventory This is to enable day to day transaction running of inventories.
2. Precautionary motives of holding inventory: Holding inventory to guard against unforeseen circumstances or to meet emergencies. For example, unexpected increase in demand.
3. Speculative motives of holding inventory. This is the holding of inventory in order to take advantage of any potential Investments. For example, to hedge against risk, take advantage of discounts.
All the options EXCEPT 'to minimize reodering cost' option are the reasons holding inventories.
During the month of March, Olinger Company’s employees earned wages of $65,400. Withholdings related to these wages were $5,003 for Social Security (FICA), $7,664 for federal income tax, $3,168 for state income tax, and $409 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $715 for state unemployment tax.-Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date Account Titles and Explanation Debit CreditMar. 31 -Prepare the entry to record the company’s payroll tax expense.Date Account Titles and Explanation Debit CreditMar. 31
Answer and Explanation:
The journal entries are shown below:
1. Salaries and Wages Expense $65,400
To Wages Payable $49,156
To Federal Withholding Payable $7,664
To FICA Payable $5,003
To State Withholding Payable $3,168
To Union Dues Payable $409
(Being the salaries and wages expense and salaries and wages payable is recorded)
2.
Payroll Tax Expense $5,718
To FICA Payable $5,003
To State Unemployment Payable $715
(Being the payroll expense is recorded)
Mikkelson Corporation's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return? (Hint: First calculate the beta, then find the required return.)
Answer:
The new required rate of return is 14.41%
Explanation:
The required rate of return (r) is the minimum return that investors require to invest in a company's stock. The required rate of return can be calculated using the CAPM approach. The formula for required rate of return (r) is,
r = rRF + Beta * rpM
Where,
rRF is the risk free raterpM is the market risk premiumUsing the old values, we calculate the beta of stock to be,
0.1175 = 0.055 + Beta * 0.0475
0.1175 - 0.055 = Beta * 0.0475
0.0625 / 0.0475 = Beta
Beta = 1.3158 rounded off to 1.32
The new risk premium = 4.75% + 2% = 6.75%
The new required rate of return (r) is,
r = 0.055 + 1.32 * 0.0675
r = 0.1441 or 14.41%
The rounded off figure for beta is used in calculation of new required rate of return so the answer might differ a little if the figure for beta was not rounded off.
To find Mikkelson Corporation's new required rate of return, first calculate the beta using the CAPM formula, then apply the new market risk premium and compute the new rate. The new required rate of return is 14.41%.
To find the company's new required rate of return, we'll use the Capital Asset Pricing Model (CAPM). The CAPM formula is:
CAPM: E(Ri) = Rf + β(E(Rm) – Rf)
First, we'll need to calculate the beta (β) of Mikkelson Corporation.
Step 1: Calculate the Beta (β)
Given the old values: E(Ri) = 11.75%, Rf = 5.50%, and Market Risk Premium (Rm – Rf) = 4.75%, we substitute these into the CAPM formula to find the beta:11.75% = 5.50% + β(4.75%)Solving for β:11.75% - 5.50% = β(4.75%)6.25% = β(4.75%)β = 6.25% / 4.75% = 1.32Step 2: Calculate the New Required Rate of Return
With the increase in investor risk aversion, the new market risk premium is:New Market Risk Premium = Old Market Risk Premium + IncreaseNew Market Risk Premium = 4.75% + 2% = 6.75%Using the CAPM formula again to find the new required return:E(Ri) = Rf + β(New Market Risk Premium)E(Ri) = 5.50% + 1.32(6.75%)E(Ri) = 5.50% + 8.91% = 14.41%Therefore, the company's new required rate of return is 14.41%.Suppose that there are customers distributed evenly across a line which runs from 0 to 1. There are two competing vendors that choose where on the line to locate. Customers buy from whichever vendor is closest to their location. If the first vendor is located at 1/3, what is the best response for the second vendor?
a. 2/3
b. 1/2
c. Slightly to the left of 1/3
d. Slightly to the right of 1/3
Answer:
a. 2/3
Explanation:
The best response for second vendor is to locate at (1/3) position only because this way, it will be maximizing it's payoff .
Because first vendor serves all customers to left of (1/3) , It's market share is (1/3).
Now if second vendor locates at (1/3) , then it will get the entire market share to right hand side of (1/3) , which is (2/3) share.
Therefore, The best response for the second vendor is 2/3
You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labor obligations of $1,000,000 per month that you can’t get out of. You also have a marginal printing cost of $0.35 per paper as well as a marginal delivery cost of $0.10 per paper. Instructions: Round your answers to 2 decimal places. a. If sales fall by 20 percent from 1,000,000 papers per month to 800,000 papers per month, what happens to the AFC per paper? It from $ per paper to $ per paper. b. What happens to the MC per paper? . c. What happens to the minimum amount that you must charge to break even on these costs? It from $ per paper to $ per paper.
Answer:
1) fixed cot increase to $1,875 from $1.5
2) the marginal contribution per paper do not change as the change in volume do not make a change in the variable cost nor sales price.
3)
minimum to break-even at 1,000,000 units = $1.95
at 800,000 units: $2.4375
Explanation:
rent expense 500,000
labor 1,000,000
total fixed 1,500,000
variable cost:
0.35 printing and 0.10 delivery = 0.45
Fixed cost:
1,500,000 / 1,000,000 = 1.5
new fixed cost:
1,500,000 / 800,000 = 1,875
to break even:
[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]
1,500,000 / (selling price - 0.45 variale cost) = 1,000,000
selling price: (1,500,000 + 0.45 x 1,000,000) / 1,000,000
selling price: 1.95
1,500,000 / (selling price - 0.45 variale cost) = 800,000
selling price: (1,500,000 + 0.45 x 800,000) / 800,000
selling price: 2,4375
Johns Company manufactures products R, S, and T from a joint process. The following information is available: Product R S T Total Units produced 12,000 ? ? 24,000 Sales value at split-off ? ? $ 50,000 $ 200,000 Joint costs $ 48,000 ? ? $ 120,000 Sales value if processed further $ 110,000 $ 90,000 $ 60,000 $ 260,000 Additional costs if processed further $ 18,000 $ 14,000 $ 10,000 $ 42,000 Assuming that joint product costs are allocated using the relative-sales-value at split-off approach, what was the sales value at split-off for products R and S? Product R Product S A) $ 55,000 $ 75,000 B) $ 63,000 $ 81,000 C) $ 80,000 $ 70,000 D) $ 91,000 $ 83,000 E) $ 101,000 $ 92,000
Answer:
C) $ 80,000 $ 70,000
Explanation:
R = ($48,000/$120,000) x $200,000
=0.4×$200,000
= $80,000
S = $200,000-$50,000-$80,000
= $70,000
Therefore the sales value at split-off for products R is $80,000 and S $70,000
Kephlee is an amusement park operator and provided the following select financial data:
($ in millions) December 31, 2020
Revenue $121.5
Cash proceeds from the sale of a merry go round $15.4
Cash flows from operations $121.4
December 31, 2019 December 31, 2020
Accounts receivable 95.4 123.5
Deferred revenue 34.6 45.6
Based on the information provided, what were cash sales during 2020?
A. $136.9
B. $119.8
C. $104.4
D. $93.4
E. $82.4
To calculate cash sales during 2020, subtract the change in accounts receivable from the revenue.
Explanation:To calculate cash sales during 2020, we need to consider the change in the Accounts Receivable balance. Cash sales are the portion of revenue that is collected in cash rather than through accounts receivable. We can calculate cash sales by subtracting the change in accounts receivable from the revenue.
Change in Accounts Receivable = Ending Accounts Receivable - Beginning Accounts Receivable
Change in Accounts Receivable = $123.5 million - $95.4 million = $28.1 million
Cash Sales = Revenue - Change in Accounts Receivable
Cash Sales = $121.5 million - $28.1 million = $93.4 million
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How does a toehold help overcome the free rider problem? (Select the best choice below.) A. Free riders usually acquire a toehold in order to give an incentive for an acquirer to take over the remainder of the company and provide value-added improvements. B. Since the free riders gain the full amount of the value improvement on the shares acquired as a toehold, the free riders are likely to sell their shares to the acquirer, allowing the takeover to go forward. C. Since the acquirer gains the full amount of the value improvement on the shares acquired as a toehold, a toehold provides an incentive to undertake the acquisition, even if the acquirer must pay a price equal to the with-improvement value for the rest of the shares. D. Once the acquirer has a toehold, free riders no longer can make as much money as they would
Answer: Since the acquirer gains the full amount of the value improvement on the shares acquired as a toehold, a toehold provides an incentive to undertake the acquisition, even if the acquirer must pay a price equal to the with-improvement value for the rest of the shares (C)
Explanation:
When an offer for a firm is made by a bidder, the target shareholders will benefit by keeping their shares and allowing other shareholders to sell their shares at a low price.
However, because every shareholders have the incentive of keeping their shares, none of the shareholders will sell. This situation is referred to as the free rider problem. In order o overcome the free rider problem, the bidders can attempt a buyout, acquire a toehold in the target, or in cases wheeby the acquirer is a corporation, they offer a freezeout merger.
Final answer:
Toehold ownership provides an incentive for acquisition and helps overcome the free rider problem by allowing an acquirer to gain control of a company.
Explanation:
Toehold ownership can help overcome the free rider problem by providing an incentive for an acquirer to take over the remainder of the company. A toehold allows the acquirer to gain a foothold in the company by purchasing a small percentage of shares, which can then lead to full acquisition and value-added improvements.
Evan Engineering Group receives royalties on a technical manual written by two of its engineers and sold to a publishing company. Royalties are 10% of net sales, receivable on October 1 for sales in January through June and on April 1 for sales in July through December of the prior year. Sales of the manual began in July 2015, and Evan accrued royalty revenue on $30,010 of sales at December 31, 2015. Evan received royalties of $2,613 on April 1, 2016. On October 1, 2016 Evan received royalties of $4,631. The 2nd half of 2016 sales were estimated to be $43,220 What is Evan's 2016 royalty revenue
Answer:
$8,565
Explanation:
Sales revenue of the year 2015 = $30,010
Accrued royalty revenue on December 31, 2015 = 30,010 x 10%
= $3,001
Evan received royalties of $2,613 on April 1, 2016.
Hence, royalty receivable for the year ended December 31, 2015 = 3,001- 2,613
= $388
On October 1, 2016, Evan received royalties of $4,631.
Thus, royalty received for the first half of the year 2016 = 4,631 - 388
= $4,243
The 2nd half of 2016 sales were estimated to be $43,220
Hence, royalty for the second half of the year 2016 = 43,220 x 10%
= $4,322
Evan's 2016 royalty revenue = Royalty revenue for the first half + Royalty revenue for the second half
= 4,243 + 4,322
= $8,565
Riverbed Company designated Jill Holland as petty cash custodian and established a petty cash fund of $236. The fund is reimbursed when the cash in the fund is at $31, which it is. Petty cash receipts indicate funds were disbursed for office supplies $94 and miscellaneous expense $89. Prepare journal entries for the establishment of the fund and the reimbursement
To establish the petty cash fund, debit petty cash and credit cash. When the fund is reimbursed, debit the expenses (office supplies and miscellaneous expenses), the cash over and short (if any), and credit cash.
Explanation:The journal entries to establish the fund and the reimbursement would be as follows:
Firstly, when the Riverbed Company established the petty cash fund, the journal entries would be: Petty Cash $236, with the corresponding entry being Cash $236. This debits the petty cash and credits the cash, indicating the funding of the petty cash fund.When it's time to reimburse the fund, we add up the receipts to determine the total expenditure, which is $94 (office supplies) + $89 (miscellaneous expense) = $183. The entries would be: Office Supplies $94, Miscellaneous Expense $89, and Cash Over and Short $2 (because $236 - $31 - $183 = $22 which is the amount unaccounted for, this is considered a cash over and short), with the corresponding entry being Cash $205 (the amount to bring the petty cash back to the established limit of $236).Learn more about journal entries here:https://brainly.com/question/33762471
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Cars from an online service were examined to see how fuel efficiency (highway mpg) relates to cost (in dollars). According to the regression equation, a used car that costs $13,000 is predicted to get about 30.24 miles per gallon. According to the data, the car got 35 miles per gallon. What is the value of the residual for this car?
Answer:
The correct answer is 4.76.
Explanation:
According to the scenario, the computation of the given data are as follows:
Actual value = 35 Miles
Predicted value = 30.24 Miles
So, we can calculate the residual value of the car by using following formula:
Residual Value = Actual Value - predicted value from independent variables
By putting the value in the formula, we get
Residual value = 35 - 30.24
= 4.76
Scott has just been given a project that has a specific completion date. After a discussion with top management he finds that while the date is important the cost is more important and a slip in delivery would be acceptable if required to meet the cost targets. The completion date is best classified asd-structure-flash-cards/
Answer:
Accept
Explanation:
When the importance of the cost of a project outweighs that of the completion time, such completion date is known as Accepted.
In project management, Scott's completion date would be classified as a constraint. Time, cost, and scope are common project constraints, and in this case, cost takes priority over time, making it the primary constraint.
Explanation:In the context of project management, which is the scenario for Scott, the completion date he has been given is best classified as a constraint. A project constraint is essentially a factor that can limit the options of the project team and impact the final outcome of the project. Time, cost, and scope are the three most common project constraints, often depicted as a triangle where one side cannot be changed without impacting the others. In Scott's case, the date of completion is flexible to meet cost targets, meaning the cost is the more significant or primary constraint, as stated by the top management.
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ncentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par value. During its first year, the following selected transactions were completed:
a.Issued 5,100 shares of common stock for cash at $21 per share.
b. Issued 1,100 shares of common stock for cash at $24 per share.
Prepare the journal entry required for each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer and Explanation:
The journal entries are as follows
a. Cash A/c Dr $107,100 (5,100 shares × $21)
To Common Stock $10,200 (5,100 shares × $2)
To Additional Paid-in Capital in excess of par - Common Stock $96,900
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
b. Cash A/c Dr $26,400 (1,100 shares × $24)
To Common Stock $2,200 (1,100 shares × $2)
To Additional Paid-in Capital in excess of par - Common Stock $24,200
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
It increased the both cash and common stock stock and the additional paid in capital account as well
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $900,000. According to independent appraisals, the fair values were $450,000 (building A) and $250,000 (building B) for the buildings and $300,000 for the land. Required: Determine the initial valuation of the buildings and the land.
Answer:
Buildings = $630,000
Land = $270,000
Explanation:
When a lump purchase price is given on buildings and land, the costs of Building and Land must be determined separately using fair values.
This is because Depreciation on Land and Building is different.
Buildings
Cost = (450,000+250,000)/ 1000,000 × $900,000
= $630,000
Land
Cost = (300,000)/ 1000,000 × $900,000
= $270,000
Donald and Hanes shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit May to the partnership with a 35% interest in partnership capital and net income. May invested $100,000 cash, and no goodwill was recognized. What is the new total balance of the partnership accounts?
Answer: Donald - $176,000, May $100,000 and Hanes $84,000.
For a total of $360,000
Explanation:
The question was incomplete so I took the liberty of attaching the original question.
From the question, we see that the total amount becomes,
= 200,000 + 100,000 + 100,000
= $400,000
However, May was supposed to invest enough to give him 35% which would have been,
= 35% * 400,000
= $140,000
This means that May put in $40,000 less (140,000 - 100,000)
This $40,000 must therefore be withdrawn by the 2 other partners to balance it off.
They shall be withdrawn in the original proportion.
Donald
= 3/5 * 40,000
= $24,000
Hanes
= 2/5 * 40,000
= $16,000
Reducing their balanced we have,
Donald.
= 200,000 - 24,000
= $176,000
Hanes
= 100,000 - 16,000
= $84,000
Therefore the new total balance of the partnership accounts are Donald - $176,000, May $100,000 and Hanes $84,000.
For a total of $360,000
Kier Company issued $660,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 5-year term to maturity. The bonds have a 6.00% stated rate of interest and interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1?
Answer:
Interest Expense $39,600
Cash Flow from Operating Activities $39,600
Explanation:
Payment of Interest Expense is the cash expense paid during the year which is deducted from the operating profit in the calculation of net income which is used to determine the cash flow from operating activities.
Interest on the Bond = $660,000 x 6% = $39,600
At the time of payment Journal Entry will be as follow
Dr. Interest Expense $39,600
Cr. Cash $39,600
As the cash is paid against the operating activities.
Your investment portfolio consists of $15 comma 000 invested in only one stocklong dashAmazon. Suppose the risk-free rate is 5 %, Amazon stock has an expected return of 12 % and a volatility of 40 %, and the market portfolio has an expected return of 10 % and a volatility of 18 %. Under the CAPM assumptions, a. What alternative investment has the lowest possible volatility while having the same expected return as Amazon? What is the volatility of this investment? b. What investment has the highest possible expected return while having the same volatility as Amazon? What is the expected return of this investment? Hint: Make sure to round all intermediate calculations to at least five decimal places.
Answer:
a)
The CAPM hypothesis states that the effective market is utilized place in the market and has the maximum eminent expected return of any assortment for a given randomness and the smallest variability for a assumed expected return. By allotment utilized place in the market assortment, you can achieve a standard return,
Thus,
Expected Rate of Return = [Risk free Rate + Beta × (Market Risk - Risk free Rate)]
Beta = [Expected Rate of Return – Risk Free Rate] / [Market Risk - Risk free Rate]
Beta = [12% - 5%] / [10% -5%]
Beta = 7/5
Beta =1.4
The final possible instability while taking the same estimated rate of return as Amazon is $21,000 ($15,000 × 1.4) which indicate that it borrows $6,000 ($21,000 - $15,000). Now the -$6,000 is specified as strength benefit. So the volatility of the asset is,
Volatility = [Volatility of Asset x Beta]
Volatility = [18% × 1.4]
Volatility = 0.252 or 25.20%
Therefore the volatility is less than the volatility of Amazon.
b)
The market share has a instability of "n". The corresponding instability of Amazon will be 2.22 (40%/18%). So the assortment with the most notable predictable give back that has a faint variability from Amazon is $33,333.33 ($15,000x 2.22) which will be the market assortment and it also uses $18,333.33 ($33,333.33 - $15,000). Here the -$18,333.33 is specified as strength asset. So the return is,
Expected Return = [Risk free Rate + Beta × (Market Risk – Risk free Rate)]
Expected Return = [5%+ 122 × (10% - 5%)]
Expected Return = [5%+ 122 × 5%]
Expected Return = [0.05+0.111111]
Expected Return = 0.161111 or1 6.11%
Therefore the volatility is higher than the expected return of Amazon.
The country of Meditor, a small country with a closed economy, uses the merit as its currency. Recent national income statistics showed that it had GDP of $600 million merits, taxes of $150 million merits, a budget surplus of $40 billion merits, and investment of $100 billion merits. What were its consumption and government expenditures on goods and services?
Answer:
d. $390 million merits and $110 million merits
Explanation:
The computation of the consumption and the government expenditure is shown below:
As we know that
Budget Surplus = Taxes - government expenditure
$40 = $150 - government expenditure
So, the government expenditure is $110 million
In addition,
Gross domestic product = Consumption + investment + government expenditure + net exports
$600 = Consumption + $100 + $110 + $0
So, the consumption is
= $600 - $100 - $110
= $390 million
We simply applied the above formulas in order to find out the consumption and government expenditure
The consumption in Meditor was $390 million merits, and government expenditures on goods and services were $110 million merits, calculated using national income accounting for a closed economy with given GDP, taxes, investment, and budget surplus figures.
Explanation:The question is related to the topic of national income accounting, which is a concept within the field of economics. Specifically, it involves calculating the consumption and government expenditures on goods and services for the country of Meditor. To find the answers, we need to understand the following equation that defines Gross Domestic Product (GDP) for a closed economy:
GDP = Consumption (C) + Investment (I) + Government Spending (G) + (Exports (X) - Imports (M))
As Meditor is a closed economy, it does not have exports or imports. Thus, the equation simplifies to:
GDP = C + I + G
We are given that GDP = $600 million merits, Investment (I) = $100 million merits, and we have a budget surplus, which is defined as:
Budget Surplus = Taxes (T) - Government Spending (G)
With Taxes (T) = $150 million merits and the Budget Surplus = $40 million merits, we can find Government Spending (G) as follows:
G = T - Budget Surplus
G = $150 million merits - $40 million merits
G = $110 million merits
Now, to calculate the consumption (C), we use the GDP equation:
C = GDP - I - G
C = $600 million merits - $100 million merits - $110 million merits
C = $390 million merits
So, the consumption in Meditor was $390 million merits, and government expenditures on goods and services were $110 million merits.
Jeremy Corporation estimated manufacturing overhead costs for the year to be $ 550 comma 000. Jeremy also estimated 8 comma 000 machine hours and 3 comma 000 direct labor hours for the year. It bases the predetermined overhead allocation rate on machine hours. On January 31, Job 25 was completed. It required 5 machine hours and 1 direct labor hours. What is the amount of manufacturing overhead allocated to the completed job?
Answer:
$343.75
Explanation:
The computation of amount of manufacturing overhead is shown below:-
For computing the amount of manufacturing overhead first we need to find out the predetermined overhead rate which is shown below:-
Predetermined overhead rate = Estimated manufacturing overhead costs ÷ Estimated machine hours
= $550,000 ÷ 8,000
= $68.75 per machine hour
Overhead allocated = Predetermined overhead rate × Machine hours
= $68.75 × 5
= $343.75
1. What are KPI’s in the hospitality industry? a.Key Personal Indicators b.Key Performance Indicators c.Key Pathways Into Success d.Data that is seldom looked at by senior leadership 2. Which of the following is a labor KPI as discussed in the lecture notes. a.Covers per hour b.# of Employees c.Number of employees needed to run a shift d.# of Managers
Answer:
1) Key Performance Indicators (KPIs)
2) Covers per hour
Explanation:
Critical success factors (CSFs) are fundamental requirements for competitive success. They represent what a business must excel at to make it very competitive and successful.
For example, customer satisfaction, quality product, employee satisfaction, productivity
Key Performance Indicators (KPI) are metrics which are used to measure whether or a business is achieving its CSFs
For example, a measure (KPI) of employee productivity would be amount of covers achieved per hour of labour
19. Beth saves $2,500 a year from age 25 until age 34 (inclusive) and invests the money in an account earning 5% annually. Beth stops investing at age 34, but does not withdraw the accumulation until age 65. In contrast, Bill saves $2,500 a year from age 35 until age 65 inclusively and invests in a similar account to Beth, earning 5% annually. Bill will have accumulated significantly more than Beth at age 65. True False
Final answer:
The statement given in the question is False. While it is true that saving money early in life and utilizing the power of compound interest can lead to significant accumulation over time, the difference in starting age between Beth and Bill outweighs the difference in the length of time they save.
Explanation:
The statement given in the question is False. While it is true that saving money early in life and utilizing the power of compound interest can lead to significant accumulation over time, the difference in starting age between Beth and Bill outweighs the difference in the length of time they save.
If Beth saves $2,500 a year from age 25 to age 34 at an annual interest rate of 5%, her savings will accumulate to:
$2,500 × (1 + 0.05)⁹ = $2,500 × 1.638 = $4,095
On the other hand, if Bill saves $2,500 a year from age 35 to age 65 at the same interest rate, his savings will accumulate to:
$2,500 × (1 + 0.05)³⁰ = $2,500 × 4.3219 = $10,805
Therefore, Bill will have accumulated significantly more than Beth at age 65. So, the statement is False.
On August 1, Ernie wrote to Elsie offering to sell Elsie his car for $7,600, and he promised to hold the offer open for ten days. On August 4 Ernie changed his mind; he sent Elsie a letter revoking the offer. On August 5 Elsie e-mailed Ernie, accepting the offer. Ernie’s letter of revocation arrived on August 6. Is there a contract? Explain.
Answer:
Yes, the contract is still valid.
Explanation:
Let us first clarify some terms first.
A contract is referred to as a legally binding agreement that is recognized, known and governs the rights and duties of the parties involved in an agreement. A contract is legally enforceable because it meets the features and approval of the law. An agreement basically involves the exchange of goods, transactions, services, money, or promises. In the case of breach of contract, the law awards the injured party access to legal remedies which include damages and cancellation.
Letter of revocation is an act by which a person having authority, calls back or in other words annuls a power, gift, or benefit, which had been bestowed upon another.
Yes, the contract still holds. This is due to the reason that the letter had a date mentioned on it which is August 4, a day before the contract was accepted even though the revocation letter arrived late.
Therefore, as regards to the date on the letter, the contract is still valid.
Final answer:
A binding contract appears to have been formed between Ernie and Elsie for the sale of Ernie's car because Elsie accepted the offer via email before receiving Ernie's revocation letter. According to the mailbox rule, the acceptance is effective when dispatched, making Elsie's acceptance on August 5 effective and the contract valid.
Explanation:
The situation described involves contractual obligations and whether an agreement has been formed between Ernie and Elsie. Under contract law, an offer can typically be revoked before it has been accepted. In this case, Ernie made an offer to sell his car to Elsie for $7,600 and agreed to keep the offer open for ten days. However, Ernie changed his mind and attempted to revoke the offer on August 4, sending Elsie a letter of revocation. Elsie sent an email accepting the offer on August 5, before receiving the letter of revocation which arrived on August 6.
As per the mailbox rule, which is widely accepted in contract law, an acceptance is effective when dispatched, as long as the communication is by an expressly or impliedly authorized means of communication. Since Elsie's acceptance via email was sent before Ernie's revocation was received, the acceptance would generally be considered effective on August 5, resulting in a binding contract. Ernie's revocation would only be effective upon receipt, which happened after the acceptance was already sent. Therefore, based on the given information, it appears that a contract was formed when Elsie emailed her acceptance on August 5.
Check My Work As a counselor at this summer camp, you are coming into contact with a lot of coworkers, campers, and parents from different states and countries, various religious backgrounds, and various economic situations. Use the drop down menus to create a two-word phrase that describes this aspect of your work experience.
Answer: Cultural diversity
Explanation:
Cultural diversity this is when a population a group of people with differences are well represented within society or community. These differences include race, age, ethnicity, ability, language, nationality, socioeconomic status, gender, religion, or sexual orientation. The group has a wide range of difference which makes them culturally diverse because a variety of groups are represented. Just like in scenerio in the question the group is well diversed because a wide variety of people or group are represented.
Turrubiates Corporation makes a product that uses a material with the following standards: Standard quantity 7.9 liters per unit Standard price $ 2.40 per liter Standard cost $ 18.96 per unit The company budgeted for production of 3,700 units in April, but actual production was 3,800 units. The company used 30,700 liters of direct material to produce this output. The company purchased 20,000 liters of the direct material at $2.5 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is:
The materials quantity variance for April is an unfavorable variance of -$1,632, calculated by taking the actual quantity of materials used minus the standard quantity for actual production and multiplying by the standard price per unit.
The materials quantity variance is the difference between the standard quantity of materials that should have been used for the actual production and the actual quantity of materials used, multiplied by the standard price per unit. First, we need to calculate the standard quantity of materials for the actual production. Since the standard quantity is 7.9 liters per unit and the actual production was 3,800 units, the standard quantity is 7.9 liters/unit imes 3,800 units = 30,020 liters.
Now, we can calculate the variance. The actual quantity used was 30,700 liters. Therefore, the materials quantity variance is (30,020 liters - 30,700 liters) imes $2.40/liter = (-680 liters) imes $2.40/liter = -$1,632. Hence, the company used 680 liters more than the standard quantity, leading to a $1,632 unfavorable variance because more materials were consumed than expected at the standard cost.
An additional source of revenue for a corporation beyond product or service sales is:
a) Licensing
b) Stocks
C) Real estate
d) All of the above
Answer:
Your answer is all of the above.
Explanation:
Each one of these options is generally profitable for most corporations. Sometimes there are recessions (like right now on our 5th week of the coronavirus outbreak) where Real Estate and Stocks can lose value but for the most part these are ways a business makes money.
Corporations can generate revenue beyond product or service sales through licensing, stocks, and real estate investments.
An additional source of revenue for a corporation beyond product or service sales is:
LicensingStocksReal estateCorporations can generate revenue through licensing agreements, issuing stocks, and investing in real estate properties. These additional sources of income can diversify a corporation's revenue streams and enhance financial stability.
On January 1, Year 1, Weller Company issued bonds with a $260,000 face value, a stated rate of interest of 10.00%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 8.00%. Interest is paid annually on December 31. Assuming Weller issued the bonds for $280,640, what is the carrying value of the bonds on the December 31, Year 3?
Answer:
The carrying value of the loan in year 3 is $269,119.18
Explanation:
The carrying of the bond in year 3 comprises the loan opening book value in year 3 plus interest calculated on the opening balance using the yield to maturity less the coupon payment calculated as a percentage of face value as computed in the attached excel file.
You would notice that the carrying values in years 1, 2 and 3 are $277,091.20,$273,258.50 and $269,119.18
Kindly find attached.
Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 8.1 pounds $ 8.60 per pound $ 69.66 Direct labor 0.4 hours $ 40.00 per hour $ 16.00 Variable overhead 0.4 hours $ 5.60 per hour $ 2.24 In June the company's budgeted production was 5,000 units but the actual production was 5,100 units. The company used 23,750 pounds of the direct material and 2,450 direct labor-hours to produce this output. During the month, the company purchased 27,000 pounds of the direct material at a cost of $186,180. The actual direct labor cost was $58,621 and the actual variable overhead cost was $13,231. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for June is:
Answer:
Manufacturing overhead rate variance= $490 favorable
Explanation:
Giving the following information:
Variable overhead:
Standard Quantity= 0.4 hours
Standard rate= $5.6 per hour
Budgeted production= 5,000 units
Actual production= 5,100 units
The company used 2,450 direct labor-hours.
The actual variable overhead cost was $13,231.
To calculate the variable overhead rate variance, we need to use the following formula:
Manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Actual rate= 13,231/2,450= $5.4
Manufacturing overhead rate variance= (5.6 - 5.4)*2,450
Manufacturing overhead rate variance= $490 favorable
Nate is a recent graduate who states that he has interned at a major accounting firm so that his value as a candidate for employment increases. A start-up recruits Nate based on his stated credentials without verifying them. Two days into the job, Nate's team lead realizes that Nate does not know much of what he claimed to know during the interview. This scenario best exemplifies
a. adverse selection
b. corporate governance
c. moral hazard
d. shared value creation
The scenario with Nate and the start-up company is an example of adverse selection, where the employer faces imperfect information regarding the candidate's abilities and hires based on misrepresented qualifications.
Explanation:The scenario described in the question best exemplifies adverse selection, which is a situation where one party in a transaction has more or better information compared to another party. In this case, the employer (the start-up) has imperfect information about the qualifications and abilities of Nate. Nate misrepresented his skills and experience to obtain the job, and after hiring him based on those false credentials, his inability to perform as expected becomes clear. Adverse selection occurs in various markets, including labor and financial capital markets, where information asymmetry can lead to sub-optimal outcomes, such as hiring a poor-quality employee or acquiring a "lemon." To mitigate this, employers may use various mechanisms like requiring degrees from certain institutions, reviewing past work history, seeking references, and looking for other indicators of ability and character to screen potential employees more effectively.
Learn more about Adverse Selection here:https://brainly.com/question/28482601
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