Factory Overhead Cost Budget Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Advertising expenses $232,000 Manufacturing supplies 14,000 Power and light 48,000 Sales commissions 298,000 Factory insurance 30,000 Production supervisor wages 135,000 Production control wages 32,000 Executive officer salaries 310,000 Materials management wages 39,000 Factory depreciation 22,000 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Sweet Tooth Candy Company Factory Overhead Cost Budget For the Month Ending August 31 Variable factory overhead costs: $ Total variable factory overhead costs $ Fixed factory overhead costs: $ Total fixed factory overhead costs Total factory overhead costs

Answers

Answer 1

Answer:

Total factory overhead costs $ 281,000

Variable factory overhead costs: $ 229,000

Fixed factory overhead costs: $ 52,000

Explanation:

Sweet Tooth Candy Company

Factory Overhead Cost Budget

For the Month Ending August 31

Variable factory overhead costs: $ 229,000

Manufacturing supplies 14,000

Power and light 48,000

Production supervisor wages 135,000

Production control wages 32,000

Total variable factory overhead costs $ 229,000

Fixed factory overhead costs: $ 52,000

Factory insurance 30,000

Factory depreciation 22,000

Total fixed factory overhead costs $ 52,000

Total factory overhead costs $ 281,000

1)The following are not included in the factory Overheads as they are related to the Administration and Sales Department.

Advertising expenses $232,000

Sales commissions 298,000

Executive officer salaries 310,000

2) The following is Direct labor and is not included in the factory overhead costs.

Materials management wages 39,000


Related Questions

Accounting Rate of Return Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. Cobre Company is considering the purchase of new equipment that will speed up the process for extracting copper. The equipment will cost $3,600,000 and have a life of 5 years with no expected salvage value. The expected cash flows associated with the project are as follows: Year Cash Revenues Cash Expenses 1 $6,000,000 $4,800,000 2 6,000,000 4,800,000 3 6,000,000 4,800,000 4 6,000,000 4,800,000 5 6,000,000 4,800,000 Emily Hansen is considering investing in one of the following two projects. Either project will require an investment of $75,000. The expected cash revenues minus cash expenses for the two projects follow. Assume each project is depreciable. Year Project A Project B 1 $22,500 $22,500 2 30,000 30,000 3 45,000 45,000 4 75,000 22,500 5 75,000 22,500 Suppose that a project has an ARR of 30% (based on initial investment) and that the average net income of the project is $120,000. Suppose that a project has an ARR of 50% and that the investment is $150,000. Required: 1. Compute the ARR on the new equipment that Cobre Company is considering. Round your answer to one decimal place. % 2. Conceptual Connection: Which project should Emily Hansen choose based on the ARR

Answers

Answer:

       Computation of Accounting Profit of the new project

Years        Cash Revenue        Cash expenses  Depreciation      Profit

1                  $6,000,000           $4,800,000         720,000         480,000

2                  6,000,000             4,800,000           720,000        480,000

3                  6,000,000            4,800,000            720,000        480,000

4                  6,000,000             4,800,000          720,000        480,000

5                 6,000,000             4,800,000           720,000         480,000

Accounting rate of return of the new project

                                         =  Average Profit / Initial  investment

                                       =  $480,000/$3,600,000

                                       =  13.3%

2. Project A 's ARR =  30%

   Project B's  ARR = 50%

 New Project's ARR   =  13.3%

Emily Hansen should choose project with highest ARR. Therefore, project B should be selected since it has highest ARR of 50% as compare to others.

                                       

Explanation:

The Accounting Rate of Return is the analytical tool that measures the average return the business will gain from the initial investment upon a specified project. The higher the ARR higher are the chances for the project to provide higher returns.

1. The Accounting Rate of Return for the new project is 13.30%.

2. Based upon ARR Emily Hansen should choose "Project B"

Computations:

1. The Accounting Rate of Return for the new project is computed as follows:

[tex]\begin{aligned}\text{Accounting Rate of Return}&=\frac{\text{Average Profit}}{\text{Initial Investment}}\\&=\frac{\$480,000}{\$3,600,000}\times100\\&=13.30\%\end{aligned}[/tex]

The computation of the average profit is shown in the image below.

2. The ARR of all the projects is:

Project A: 30%

Project B: 50%

Project C: 13.30%

For the independent scenarios, the investor or the business owner must choose the project having the highest ARR.

Therefore, upon the comparison, Emily Hansen will choose Project B having the highest ARR of 50%.

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A professional theater company wants to hire a young actor to play an important part in a play. Many actors have expressed an interest in the​ part, and the theater company cannot audition all of them. Since the actors are​ young, none have any professional experience. Which of the following sends the strongest signal of​quality?

A. An actor who has directed some plays.
B. An actor who has acted in plays at small local theaters.
C. An actor who comes from a respected talent agency.
D. An actor who has written a play.

Answers

Answer: C. An actor who comes from a respected talent agency.

Explanation:

Talent Agencies are professionals in the field. The people they send have been put through training programs that the Talent Agency knows will serve them well because they are in that same industry. For this reason, actors from Talent Agencies send the strongest signals.

Look at it this way, would you take investment advice from an investment banker or from an entrepreneur? Both could present very strong cases but the Investment Banker has expertise in the subject and is more likely to be picked.

It is the same here. The Talent Agency is believed to have expertise and so when they send someone, that person is considered first.

Final answer:

The strongest signal of quality for a young actor to play an important role in a play is c) coming from a respected talent agency.

Explanation:

Quality in the context of selecting a young actor for an important role in a play can be best signified by an actor who comes from a respected talent agency. Talent agencies often represent actors who have potential, and being associated with a respected agency can signal a level of professionalism and readiness for the role.

Actors who are part of respected talent agencies usually have access to better opportunities, networking, and guidance, which can enhance their skills and prepare them for challenging roles in professional theatre.

Therefore, out of the given choices, selecting c) an actor who comes from a respected talent agency would send the strongest signal of quality for the theater company.

Radar Company sells bikes for $490 each. The company currently sells 4,300 bikes per year and could make as many as 4,620 bikes per year. The bikes cost $260 each to make: $180 in variable costs per bike and $80 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 320 bikes for $460 each. Incremental fixed costs to make this order are $48,000. No other costs will change if this order is accepted.

Required:
Compute Radar’s additional income (ignore taxes) if it accepts this order.

Answers

Answer:

Radar's additional income for accepting the order is calculated as follows:

Sales - 320 x $460 = $147,200

less Cost of Sales = 320 x $180 + $48,000 = $105,600

Additional Income = $41,600

Explanation:

The additional income of $41,600 is $147,200 - $105,600, which is the result of deducting cost of sales from Sales.

The cost of sales includes the variable cost per bike, including the incremental fixed costs ($48,000) to make this order.

To make a decision whether to accept an order or not, the company needs to consider all variable costs, including the incremental fixed costs.  The resulting additional income is what is available to offset the fixed costs.

Final answer:

Radar's additional income if it accepts the special order of 320 bikes at $460 each would be $41,600, which is calculated by subtracting the incremental costs ($105,600) from the incremental revenue ($147,200).

Explanation:

To calculate Radar's additional income if it accepts the special order of 320 bikes at $460 each, we need to consider the incremental revenues and costs associated with the order.

Incremental Revenue and Costs

The incremental revenue from selling the additional 320 bikes at $460 each would be $147,200 (320 bikes * $460).

The incremental costs include the variable costs of making the bikes ($180 per bike) and the additional fixed costs of $48,000. The total incremental cost for producing 320 bikes would be $57,600 ($180 variable cost per bike * 320 bikes) plus $48,000 in fixed costs, totaling $105,600.

Additional Income Calculation

To compute the additional income, subtract the incremental costs from the incremental revenues: $147,200 (incremental revenue) - $105,600 (incremental costs) = $41,600.

Thus, Radar's additional income from accepting the special order is $41,600.

White company had no investments prior to the current year. It had the following transactions involving short-term available-for-sale and held-to-maturity securities during the year. Prepare journal entries to record the following transactions associated with the investment purchases. January 10 Purchased 6,000 shares of Gray Company stock at $15.00 plus a broker's fee of $700. (Classified as short-term available-for-sale securities) June 1 purchased $180,000 of Duke Company 4%, five-year bonds at par value. Interest payments are paid semiannually on June 1 and December 1. (Classified as held-to- maturity) July 1 Sold 3,000 shares of Gray company stock at $22 less a $600 brokerage fee. December 1 Received a check for the first semiannual interest payment on the Duke Company bonds. Answer (show calculations in description of JE when appropriate) Date Description DR CR Jan. 10 June 1 July 1 Dec. 1

Answers

Answer:

Gray stocks        90,700 debit

       Cash                  90,700 credit

Duke- Bond    180,000 debit

       Cash             180,000 credit

Cash          65,400 debit

  Gray stocks           45,350 credit

 Gain on Securities 20,050 credit

Dec 1st

Cash     3,600 debit

  Interest revenue   3,600 credit

Explanation:

Jan 10th

6,000 x $15 + 700 fee = $90,700

June 1st we record at cost as it was purchase at par.

July 1st

3,000 x $22 - 600 fee = $65,400

Cost: 90,700 x 3,000/6,000 = 45,350

Gain 65,400 - 45,350 = 20.050‬

December 1st

180,000 x 0.02 = $3,600

the rate is 4% payment semiannually so we divide the rate by 2.

1. Understanding Persuasion in a Social and Mobile Age Contemporary businesses have embraced leaner corporate hierarchies, simultaneously relying on teams, eliminating division walls, and blurring the lines of authority. As teams and managers are abandoning the traditional command structure, excellent persuasive skills are becoming ever more important at work. Effective businesspeople must learn to in order to improve relationships with teams and coworkers. influence The most striking developments, summ on, are less than three decades old. be authoritative be blunt Check all that apply command How has persuasion changed in the digitar ager Check an that apply. All businesses are in the persuasion business Persuasion is more complex and impersonal Persuasive techniques are more subtle and misleading Persuasive messages are slow to engage audiences Persuasive messages are targeted to very specific audiences While delivery channels have changed, the principles of effective persuasion have not. 1. Understanding Persuasion in a Social and Mobile Age Contemporary businesses have embraced leaner corporate hierarchies, simultaneously relying on teams, eliminating division walls, and blurring the lines of authority. As teams and managers are abandoning the traditional command structure, excellent persuasive skills are becoming ever more important at work. Effective businesspeople must learn to in order to improve relationships with teams and coworkers. The most striking developments, summarized in this section, are less than three decades old. Check all that apply How has perstasion changed in the digital age? Check all that apply All businesses are in the persuasion business Persuasion is more complex and impersonal Persuasive techniques are more subtle and misleading Persuasive messages are slow to engage audiences Persuasive messages are targeted to very specific audiences While delivery channels have changed, the principles of effective persuasion have not.

Answers

Answer:

Explanation:

1. Understanding Persuasion in a Social and Mobile Age Contemporary

businesses have embraced leaner corporate hierarchies, simultaneously relying on teams, eliminating division walls, and blurring the lines of authority.

As teams and managers are abandoning the traditional command structure, excellent persuasive skills are becoming ever more important at work.

As businesses change their hierarchies, persuasive skills are becoming ever more important at work as teams.In the digital age, businesses have moved toward leaner corporate hierarchies, simultaneously relying on teams, dismantling division walls, and blurring the lines of authority. This is why persuasive skills are becoming ever more important at work, as teams and managers are abandoning the traditional

command structure

How has persuasion changed in the digitar age Check an that apply.

All businesses are in the persuasion business

Persuasion is more complex and impersonal

Persuasive techniques are more subtle and misleading:Instead of a blunt, pushy hard-sell approach, persuaders play on emotions by using flattery, empathy, nonverbal cues, and likability appeals, which can be more subtle and misleading

The volume and reach of persuasive messages have exploded

Final answer:

In the digital age, business persuasion relies heavily on subtlety, credibility and physical attractiveness. The principles of effective persuasion have remained largely unchanged, but the delivery channels have evolved. All businesses are in essence in the persuasion business.

Explanation:

The nature of persuasion has significantly evolved in the digital age. As businesses shift towards leaner corporate hierarchies, and traditional command structures are blurred, the power of persuasion has become a critical skillset for individuals and teams within a business structure.

In the digital age, all businesses are essentially in the persuasion business. Persuasion has become simultaneously more complex and impersonal due to several factors. Foremost among these factors is the shift towards subtle and nuanced techniques that are often more effective than direct messages. Yet, the principles of effective persuasion have remained largely unchanged.

In today's rapidly evolving workplace environments, characterized by shifts in technology, economics, foreign competition, globalization, and demographics, excellent persuasive skills are becoming ever more critical. Teams and managers need to use persuasive power to influence others and build group consensus, especially when authority is diffused throughout the organization.

In summation, while the delivery channels of persuasion have changed, the principles of effective persuasion - such as credibility, physical attractiveness, and subtlety - have remained the same. All businesses - irrespective of their field of operation - must learn to influence to improve relationships with teams and coworkers in today's social and mobile age.

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If China wished to reduce their accumulation of foreign exchange reserves they could:
A. allow their currency, the yuan, to float freely in the market place.
B. reduce their current account surplus by importing more goods than they export.
C. undertake both of the activities identified in choices A and B.
D. try their best to reduce the trade imbalances with the rest of the world.

Answers

Answer:

D. try their best to reduce the trade imbalances with the rest of the world.

Jones is the manager of an upscale clothing store in a shopping mall that contains only two such stores. While these two competitors do not carry the same brands of clothes, they serve a similar clientele. Jones was recently notified that the mall is going to implement a 10 percent across-the-board increase in rents to all stores in the mall, effective next month. How should Jones change her prices in response to this 10 percent increase in monthly rent?

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Answer:

Jones is the manager of an upscale clothing store in a shopping mall that contains only two such stores. While these two competitors do not carry the same brands of clothes, they serve a similar clientele. Jones was recently notified that the mall is going to implement a 10 percent across-the-board increase in rents to all stores in the mall, effective next month. How should Jones change her prices in response to this 10 percent increase in monthly rent?

In response to this 10 percent increase in monthly rent, Jones should not increase the prices for both stores.

Explanation:

A 10 percent increase in the rent signifies an increase in the fixed cost. Therefore, both stores observe a rise of 10 percent in their fixed cost, when a 10 percent across-the-board increase in rent is applied in the mall. However, this does not raise the variable cost and the marginal cost.

Therefore, in response to this 10 percent increase in monthly rent, Jones should not increase the prices for both stores.

Colter Steel has $5,600,000 in assets. Temporary current assets $ 3,200,000 Permanent current assets 1,610,000 Fixed assets 790,000 Total assets $ 5,600,000 Short-term rates are 10 percent. Long-term rates are 15 percent. Earnings before interest and taxes are $1,180,000. The tax rate is 20 percent. If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be

Answers

Answer:

The Earnings after taxes will be $400,000

Explanation:

According to the data we have the following Long term financing funds of Permanent current assets = $1,610,000  and Fixed assets = $790,000  so the total of Long term financing funds= $ 2,400,000

Also, we have Termperory current assets = $3,200,000

Therefore, the Long term interest expenses = $2,400,000 * 15%

                                                                          = $360,000

       

                  and the Short term interest expenses = $3,200,000* 10%

                                                                                  = $ 320,000

Hence, Total interest expenses=$360,000+$ 320,000 =$680,000

So, Earnings before taxes=Earnings before interest and taxes-Interest expenses=$ 1,180,000- $ 680,000 =$500,000

The tax rate is 20 percent, hence, taxes=$500,000*20%=$100,000

Therefore, The Earnings after taxes would be=Earnings before taxes-taxes

                                                                           =$500,000-$100,000

                                                                            =$400,000

Which of the following actions are likely to reduce the length of a company’s cash conversion cycle? Select one: a. Adopting a new inventory system that reduces the inventory conversion period. b. Reducing the average days sales outstanding (DSO) on its accounts receivable. c. Reducing the amount of time the company takes to pay its suppliers. d. Statements a and b are correct. e. All of the statements above are correct.

Answers

Answer:

e. All of the statements above are correct.

Explanation:

Cash Conversion Cycle Duration Significance

The greater the quantity of inventory the company purchases, the less cash it has on hand to pay bills. The more days a company's money is tied up in inventory, the longer the cash conversion cycle and the greater the number of days creditors must wait for their money.

Sufficient cash flow is incredibly important to the success of your business. It’s a critical metric in business health. The amount of available cash your business has on hand at any given time affects both your daily and long-term operations. Poor cash flow makes your day-to-day business operations more challenging and it also negatively affects your timeline on paying creditors.

Fortunately, there are ways to shorten your cash conversion cycle. Reducing the cycle length can even boost your bottom line through interest savings. This are the few ways:

1. Improve Your Cash Flow Management

2. Collect Your Accounts Receivables Faster

3. Manage your inventory more efficiently

4. Improve Your Accounts Receivables Process

5. Take advantage of your bank’s treasury management service

What is the value of the monetary base, given that the value of deposits at all depository institutions equals $ 2265.83 billion, currency is $ 1144.60 billion, and bank deposits held at the Fed are $ 1422.30 billion?

Answers

The value of the monetary base, given that the value of deposits at all depository institutions should be $2,566.9 billion

Calculation of the value of the monetary base:

Data provided as per the question:

Currency = $1144.60 billion

Bank deposits = $1422.30 billion

So,

Value of the monetary base = Currency + bank deposits

= $1144.60 billion + $1422.30 billion

= $2,566.9 billion

Therefore for computing the value of the monetary base we simply added currency with bank deposits.

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Final answer:

The monetary base is calculated by adding the value of currency in circulation and reserves held at the central bank. Given the provided information, the monetary base is $2566.90 billion.

Explanation:

The monetary base, often called high-powered money or reserve money, is a measure of the money supply and includes all of the physical currency in circulation plus reserves held at the central bank, in this case, the Federal Reserve (Fed). The equation for the monetary base is MB = Currency + Reserves. Given the data you provided, the value of the monetary base (MB) can be found by summing the currency in circulation and the deposits held at the Fed. That is,

MB = Currency + Deposits at the Fed = $1144.60 billion + $1422.30 billion = $2566.90 billion

It's important to remember that the deposits at depository institutions are not included in the monetary base calculation. This figure represents the money that banks and other financial institutions have in their accounts, not the money held by the central bank or in circulation among the public.

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On January 1 st 2012, Everhart Corporation, a calendar year company issues $100,000, 5%, 5-year bonds dated January 1, 2012. The bond pays interest semiannually on January 1 and July 1 . The bonds are issued to yield 6%. 2.50% 3.00% 5.00% 6.00% Present value of a single sum for 5 periods 0.88385 0.86261 0.78353 0.74726 Present value of a single sum for 10 periods 0.78120 0.74409 0.61391 0.55839 Present value of an annuity for 5 periods 4.64583 4.57971 4.32948 4.21236 Present value of an annuity for 10 periods 8.75206 8.53020 7.72173 7.36009 If Everhart Corporation uses the effective interest method to amortize any premiums or discounts on their

outstanding bonds, what will be the journal entries to record interest expense for calendar year 2013?

Answers

Answer:

Interest expense 2894.7 debit

discount on Bonds Payable 394.7 credit

cash 2500 credit

Interest expense 2906.55 debit

discount on Bonds Payable 406.55 credit

interest payable  2500 credit

Explanation:

We have to solve for the 2013 year which is one year after the issuance ofthe bonds.

We solve for the bond issuance price and then, we construct the bonds schedule and take the numbers from period 3 and 4.

Issuance proceeds: present value fo the coupon payment and maturity at market rate:

[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]

C 2,500.000

time 10

rate 0.03

[tex]2500 \times \frac{1-(1+0.03)^{-10} }{0.03} = PV\\[/tex]

PV $21,325.5071

[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]  

Maturity   100,000.00

time   10.00

rate  0.03

[tex]\frac{100000}{(1 + 0.03)^{10} } = PV[/tex]  

PV   74,409.39

PV c $21,325.5071

PV m  $74,409.3915

Total $95,734.8986

Now we will calcautlethe interest expense by multiplying carrying value by the market value and sutract from the cash outlay to determinate the amortization on the bonds.

7.37 For the net cash flow series, (a) determine the number of possible i* values using the two sign tests, (b) find the EROR using the MIRR method with an investment rate of 20% per year and a borrowing rate of 10% per year, and (c) use the MIRR function to find the EROR.

Answers

Answer:

The answer is 25.19% .

Note: The values were not stated for the net series cash flows, during my research and i found the complete question and solved it.

Explanation:

From the question given,

The first step is to make use of a table for the net cash flow series

Year                      1                  2                3              4             5             6

Net cash flow    $4100   $2000         $7000         $12000  $700       $800

Then,

Solution : MIRR is defined as modified internal rate of return, It accounts for the positive cash flows with reinvestment by using re-investment rate and negative cash flows are calculated at their present values to keep the fund aside by using finance rate.

As given also reinvestment rate = 20% and finance cost rate = 10%.

Now, from the table given of cash flows, we will calculate the future value of all cash flows in year 6.

FV = 4100*(1+0.20)^5 + 12000*(1+0.20)^2 + 800*(1+0.20)^0 = $28282.11

Now,

By applying the rate of   we will computer teh PV of -ve cash flows :

PV = -2000/(1+0.1)^2 + -7000/(1+0.1)^3 + -700/(1+0.1)^5 = -$7346.73

Now MIRR can be calculated by using the formula , MIRR = \√[n]{FV(positive cash flows/PV of negative cash flows)}-1 = \√[6]{28282.11/7346.74)}-1

MIRR = 1.2519-1 = 0.2519 or 25.19%

Therefore, the only value Possible = 25.19% in this case.

Your grandmother left you $90,000 that you'll receive when you turn 40 in 18 years. Since you'd rather have some money now, you want to sell your claim to the inheritance. Attempt 1/10 for 10 pts. Part 1 What is the minimum amount that you should sell your claim for now if the interest rate is 5%

Answers

Answer:

The minimum amount to sell the claim is =$37,396.85

Explanation:

The minimum amount is the present value of the the expected future sum discounted at the rate of 5%.

PV = FV × (1+r)^(-n)

FV - 90,000, r- 5%, n- 18

     =  90,000 × (1.05)^(-18)

     = 37,396.85

The minimum amount to sell the claim is =$37,396.85

Final answer:

Calculate the minimum amount to sell your claim now using the present value formula at an interest rate of 5% for a $90,000 inheritance received in 18 years.

Explanation:

The present value formula can be used to calculate the minimum amount to sell your claim for now:

Present Value formula: PV = FV / (1 + r)^nGiven FV = $90,000, r = 5%, n = 18 yearsCalculating the present value:

PV = $90,000 / (1 + 0.05)^18 = $90,000 / (1.05)^18 = $90,000 / 2.078928 = $43,222.96

So, the minimum amount you should sell your claim for now is approximately $43,222.96.

Consider a zero-coupon bond with a $1000 face value and 10 years left until maturity with annual compounding. If the YTM of this bond is 10.4%, then the price of this bond is closest to:

Answers

Answer:

$372

Explanation:

FV = 1000

Ytm=10.4%=0.104

N=10

Compute FV

FV=X(1+i)^-n

FV=1000(1+0.104)^-10

FV=1000(1.104)^-10

FV= 1000(0.3717)

FV=371.799

FV=372

The price closest to the bond is $372

Consider the following cash flows: Year Cash Flow 0 –$ 32,500 1 14,800 2 16,900 3 12,200 What is the IRR of the above set of cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return %

Answers

Answer:

The correct answer is 17.22%.

Explanation:

According to the scenario, the computation of the given data are as follows:

Let IRR be X, then we can calculate the IRR by using following formula:

Year 0 = Year 1 cash flow ÷ ( 1 + IRR)^1 + Year 2 Cash flow ÷ ( 1 + IRR)^2 + Year 3 Cash flow ÷ ( 1 + IRR)^3 + Year 0 Cash flow  

By putting the value, we get

0 = $14,800 ÷ ( 1 + X)^1 + $16,900 ÷ ( 1 + X)^2 + $12,200 ÷ ( 1 + X)^3 - $32,500  By solving the function    

IRR = 17.22%

Between projects A and B, project A will be considered a superior financial undertaking if it has:

a. A shorter payback period than project B.

b. A lower net present value than project B.

c. A lower average rate of return than project B.

d. A longer payback period than project B.

Answers

Answer:

A. a shorter payback period than project B.

Explanation:

Payback period is the period when the investment value is fully recovered through the business.

Hence the shorter the payback period, the better it is because this means that the return on investment in earned at a greater pace.

Hope this clear things up.

Good luck.

On January 1, Alan King decided to transfer an amount from his checking account into an investment account that later will provide $80,000 to send his son to college (four years from now). The investment account will earn 8 percent, which will be added to the fund each year-end. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1) (Use appropriate factor(s) from the tables provided.)

Answers

Answer:

The requirement of the question is as below:

How much must Alan deposit on January 1? (Round your final answer to the nearest whole dollar amount.)  

What is the interest for the four years? (Round your final answer to the nearest whole dollar amount.)

Alan deposit on January 1 is $ 58,802.39  

Interest for four years is $21,197.61

Explanation:

The first is asking for today's worth of the investment,which is the amount to be invested,this can be computed using the present value as shown below:

PV=FV*(1+r)^-n

PV is the present value

FV is the worth of the investment in 4 years from now which is $80,000

r is the rate of return of 8%

n is the number of years of investment which is 4 years

PV=$80,000*(1+8%)^-4

PV=$80,0008(1+0.08)^-4

PV=$80,000*(1.08)^-4

PV =$ 58,802.39  

interest for four years=FV-PV

interest for four years=$80,000-$ 58,802.39  

                                    =$21,197.61

Your company's human resource manager is away from the office on vacation, and you have four open positions to fill in your department. Which of the following tests should you choose if you want to engage applicants in a conversation to determine if they have good communication skills?a. An employment testb. An online checkc. An interviewd. An application form

Answers

Answer:

An interview

Explanation:

Job interviewing is one of the most common methods companies use to recruit new candidates. The interview involves a conversation between prospective candidates and recruiting firm members, usually one candidate at a time. However, there may be one or more members of the interview panel. Through the interview, the candidate's communication skills can be tested as there is an interaction between the interviewer and the interviewer

Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of tea, one biscuit, and one magazine. In year one, the basket costs $10.00. In year two, the price of the same basket is $9.00. From year one to year two, there is at an annual rate of . In year one, $50.00 will buy baskets, and in year two, $50.00 will buy baskets. This example illustrates that, as the price level falls, the value of money .

Answers

Answer: Please refer to Explanation

Explanation:

Your question is not very clear so I shall be adding the missing spaces as I go along

1. From year one to year two, there is __________ at an annual rate of ________.

In year one the price was $10 and in year 2 the price was $9.

The decrease therefore can be calculated by,

= 10 - 9 / 10

= 0.1

= 10%

So from year 1 to year 2 there is A DECREASE at an annual rate of 10%.

2. In year one, $50.00 will buy ______ baskets, and in year two, $50.00 will buy _______ baskets.

In year 1, with a price of $10 per basket, $50 will buy,

= 50/10

= 5 baskets.

In year 2, with a price of $9 per basket, $50 will buy,

= 50/9

= 5.5 baskets.

= 5 baskets if they don't allow a half basket.

3. This example illustrates that, as the price level falls, the value of money ________. RISES.

As we just saw, when price levels go down, the value of money comes up meaning that you can buy more goods for the same amount of money.

If you need any clarification do comment.

The example demonstrates the inverse relationship between the price level and the value of money. As the price level falls from year one to year two, the value of money increases, allowing one to buy more goods with the same amount of money. This concept is essential in understanding inflation and the purchasing power of money.

Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of tea, one biscuit, and one magazine. In year one, the basket costs $10.00. In year two, the price of the same basket is $9.00. This change illustrates that as the price level falls, the value of money increases. In year one, $50.00 will buy 5 baskets (since $50/$10 = 5), and in year two, $50.00 will buy approximately 5.56 baskets (since $50/$9 ≈ 5.56). This example demonstrates the inverse relationship between the price level and the value of money: when the price level decreases, the purchasing power of money increases, allowing one to buy more goods and services with the same amount of money.

The concept of price level and its impact on the value of money can be further understood through index numbers and inflation rates. The price level is often expressed in terms of index numbers, which simplify the task of comparing changes in the cost of buying a basket of goods and services over time. When prices increase (inflation), the value of money decreases; conversely, when prices decrease (deflation), the value of money increases.

Haystack, Inc. manufactures machinery used in the mining industry. On January 1, 2017 it leased equipment with a cost of $480,000 to Silver Point Co. The 5-year lease calls for a 10% down payment and equal annual payments at the beginning of each year. The equipment has an expected useful life of 5 years. If the selling price of the equipment is $780,000, and the rate implicit in the lease is 8%, what are the equal annual payments

Answers

Answer:

$175,808

Explanation:

P=R (1-(1+i)^-n)/i

Where P=780,000*90%=$702,000

R=?

i=8%

N=5 years

By putting above values in formula, we get

P=R(1-(1+.08)^-5)/.08

702,000=R*3.993

R=702,000/3.993

R=$175,808

A pizza deliverer who is in an accident while en route to deliver a pizza for a restaurant has: a. no liability for the accident. b. the only liability for the accident if he was driving his own car. c. liability along with the restaurant for the accident. d. none of the above

Answers

Answer:

B is the answer

Explaination step by step:

Final answer:

In a car accident involving a pizza deliverer, liability may be shared between the driver and the restaurant due to the concept of vicarious liability, depending on the employment arrangement and the accident's circumstances.

Explanation:

In assessing who holds responsibility in a car accident scenario like the one described, it's important to consider both the actions of the driver and the context of the accident. If the pizza deliverer was driving their own vehicle and had an accident while performing duties for the restaurant, both the driver and the restaurant may share liability contingent on the specific details of their employment arrangement and the circumstances of the accident. This is due to the legal concept known as 'vicarious liability,' where an employer can be held responsible for the actions of its employees, provided those actions occur within the scope of their employment. However, if the deliverer was obeying all traffic laws and their actions in driving were not the proximate cause of the accident, they might evade liability as suggested in the case of the driver triggering an explosion by using the turn signal without fault.

A recent MSOE graduate wants to set up an endowment fund that can award scholarships to engineering students totaling $100,000 per year forever. The first scholarships are to be granted now and continue each year from now on. How much must the alumni donate now, if the endowment fund is expected to earn interest at a rate of 5% per year?

Answers

Answer:

The amount of donation would be of $2,000,000

Explanation:

According to the given data we have the following:

Perpetual scholarships= $100,000

interest rate=5%

Hence, in order to calculate how much must the alumni donate now if the endowment fund is expected to earn interest at a rate of 5% per year, we have to use the following formula:

Present Value= Annual Amount/Rate

Present Value=$100,000/5%

Present Value=$2,000,000

The amount of donation would be of $2,000,000

LCI Cable Company grants 2.9 million performance stock options to key executives at January 1, 2021. The options entitle executives to receive 2.9 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $20 per option.

Prepare the appropriate entry when the options are awarded on January 1, 2021.

Answers

Answer:

On the date of grant of options-January 1 2021 no entries are required yet in the books of accounts

Explanation:

The value of the options granted to the key executives is computed as follows:

total options fair value=number of shares *current fair value per option

number of shares granted is 2.9 million

current fair value per option is $20

total options fair value=2,900,000*$20

                                    =$58,000,000

the total options value would recognized in the books over four year period on straight line basis =$58,000,000/4

                                   =$14,500,000

At 31 December 2021 for instance,the following entries would be passed:

Dr Compensation expense        $4,500,000

Cr Paid-in capital-stock options                       $4,500,000

However, on the date of grant of options-January 1 2021 no entries are required yet in the books of accounts

Final answer:

LCI Cable Company would record the grant of performance stock options as a compensation expense, recognized over a four-year service period. The total fair value of $58 million would be spread out equally, resulting in an annual expense of $14.5 million. The entry on January 1, 2021, would be to debit Compensation Expense and credit Equity - Stock Options Outstanding for $14.5 million.

Explanation:

When LCI Cable Company grants performance stock options to key executives at the beginning of 2021, the company is creating a compensation expense that will be recognized over the service period, which in this case is the next four years. As the attainment of the specific financial goals tied to the stock options is considered probable, the company would record the total fair value of the stock options as a compensation expense over the four-year period.

The journal entry on January 1, 2021, to record the grant of these options would be:

Credit Equity - Stock Options Outstanding, a part of stockholders' equity, reflecting the company's commitment to issue shares in the future if executives meet the vesting requirements.

To calculate the annual expense, you would take the fair value of the options, which is $20 per option, and multiply by the total number of options, which is 2.9 million. This gives a total fair value of $58 million, which would be spread evenly over the four years, resulting in an annual compensation expense of $14.5 million, assuming straight-line amortization.

Debit Compensation Expense for $14.5 million

Credit Equity - Stock Options Outstanding for $14.5 million

Eighty units of end item X are needed at the beginning of week 6, and another 30 units are needed at the beginning of week 8. Prepare a material requirements plan for component D. D can only be ordered in whole cases (50 units per case). One case of D is automatically received every other week, beginning in week 1 (i.e., weeks 1, 3, 5, 7). Lot-for-lot ordering will be used for all items except D. Also, there are 30 units of B and 20 units of D now on hand. Lead times for all items are a function of quantity: one week for up to 100 units, two weeks for 101 to 200 units, three weeks for 201 to 300 units, and four weeks for 301 or more units.

Answers

Answer:

Find attached in the files below

is a list of steps from 1 to 7 containing solution

to the above problem

The first image also contains the complete question

Abe Frill wants to attend AVP Tech. He will need to have $15,000 seven years from today. How much should Abe put in the bank today (12% quarterly) to reach his goal in the future?

Answers

Answer:

$6,556.15

Explanation:

The calculation of Initial Deposit Required is shown below:-

Future value required = Present value × (1 + Rate of interest ÷ Quarterly)^Time period

15,000 = Present value(1 + 0.12 ÷ 4)^7×4

15,000 = Present value(1 + 0.12 ÷ 4)^28

Present value = $6,556.15

Therefore, for computing the initial deposit required simply we applied the above formula and the initial deposit required = $6,556.15.

Sheffield Company purchases $50,300 of raw materials on account, and it incurs $63,900 of factory labor costs. Supporting records show that (a) the Assembly Department used $27,100 of the raw materials and $40,100 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs. Journalize the assignment of overhead to the Assembly and Finishing Departments.

Answers

Answer:

Work-in-process - Assembly Department  $64,160 (debit)

Work-in-process - Finishing Department  $38,080 (debit)

Overhead $102,240  (credit)

Explanation:

Assembly Department Costs Assignments

J1 : Raw Materials

Work -in-process $27,100 (debit)

Raw Materials (credit)

J2 : Labor

Work -in-process $40,100 (debit)

Salaries and Wages Payable $40,100 (credit)

J3 : Overheads

Work-in-process  $64,160 (debit)

Overhead $64,160 (credit)

Finishing Department Costs Assignments

J1 : Raw Materials

Work -in-process $23,200 (debit)

Raw Materials $23,200 (credit)

J2 : Labor

Work -in-process $23,800 (debit)

Salaries and Wages Payable $23,800 (credit)

J3 : Overheads

Work-in-process  $38,080 (debit)

Overhead $38,080  (credit)

Summary of assignment of overhead

Work-in-process - Assembly Department  $64,160 (debit)

Work-in-process - Finishing Department  $38,080 (debit)

Overhead $102,240  (credit)

Iris Company has provided the following information regarding two of its items of inventory at year-end: There are 160 units of Item A, having a cost of $18 per unit, a selling price of $22 and a cost to sell of $6 per unit. There are 110 units of Item B, having a cost of $48 per unit, a selling price of $54 and a cost to sell of $4 per unit. How much is the ending inventory using lower of cost or net realizable value

Answers

Final answer:

The ending inventory using lower of cost or net realizable value is $8,060.

Explanation:

The ending inventory using lower of cost or net realizable value is calculated by comparing the cost of each item with its net realizable value and selecting the lower value.

For Item A: Cost of 160 units = $18 x 160 = $2,880 Net realizable value = Selling price - Cost to sell = $22 - $6 = $16 per unit Net realizable value of 160 units = $16 x 160 = $2,560

For Item B: Cost of 110 units = $48 x 110 = $5,280 Net realizable value = Selling price - Cost to sell = $54 - $4 = $50 per unit Net realizable value of 110 units = $50 x 110 = $5,500

Hence, the ending inventory using lower of cost or net realizable value is the sum of the net realizable values for both items: $2,560 + $5,500 = $8,060.

If the dollar appreciates relative to the Euro then: Multiple Choice European cars will become less expensive in the United States. American cars will become less expensive in Europe. the price of cars will not be affected. European cars will become more expensive in the United States. American cars will become less expensive in the United States.

Answers

Answer:

The correct answer is letter "A": European cars will become less expensive in the United States.

Explanation:

When a currency appreciates over another it means its value is greater than the other. For instance, if the dollar appreciates over the euro, all European items will be cheaper in countries where the dollar is the official currency. Besides, American items will be expensive in countries where the euro is the official currency for trade.

Therefore, European cars in the U.S. will be less expensive.

Conley Company has fixed costs of $23,415,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:

Product Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $295 $120 $175 Zoro 235 160 75 The sales mix for products Yankee and Zoro is 30% and 70%, respectively. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet

Determine the break-even point in units of Yankee and Zoro of the overall (total) product, E. If required, round your answers to the nearest whole number.

Answers

Answer:

Yankee = 66,900 units

Zoro = 156,100 units

Explanation:

Break Even Point = Fixed Costs / Contribution per unit

                             = $23,415,000 / ((3×$175) + (7×$75))

                             = $23,415,000 / $1,050

                             = 22,300

Yankee = 22,300×3

             = 66,900

Zoro = 22,300×7

        = 156,100

Oceanside Marine Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Oceanside uses standard costs to prepare its flexible budget. For the first quarter of the​ year, direct materials and direct labor standards for one of their popular products were as​ follows: Direct​ materials: 2 pound per​ unit; $ 12 per pound Direct​ labor: 4 hours per​ unit; $ 19 per hour Oceanside produced 3 comma 000 units during the quarter. At the end of the​ quarter, an examination of the direct materials records showed that the company used 7 comma 500 pounds of direct materials and actual total materials costs were $ 99 comma 300. What is the direct materials cost​ variance? (Round any intermediate calculations to the nearest​ cent, and your final answer to the nearest​ dollar.) A. $ 3 comma 720 Unfavorable B. $ 9 comma 300 Unfavorable C. $ 3 comma 720 Favorable D. $ 9 comma 300 Favorable

Answers

Answer:

B. $9 comma 300 Unfavorable

Explanation:

To calculate the direct material cost variance we use formula :

Cost variance : (Actual cost - Standard cost ) * Actual quantity

Actual cost : Actual total direct material cost / Actual direct material used in pounds

$99,300 / 7500 pounds = $13.24

$13.24 - $12 * 7,500 pounds = $9,300

The actual cost is higher than the standard cost therefore the variance is unfavorable.

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