Answer:
$679,700
Explanation:
I believe Mickelson is the person preparing the books for Indigo Inc.
This question tests your knowledge of revaluation and its application to financial statements. It indirectly checks your knowledge of depreciation also.
A quick definition of terms would make it clearer.
Depreciation is the systematic allocation of the price of an asset over its useful life. That is once an asset (non-current) is purchased, it cannot be used up immediately in one financial year, hence accountants usually want to spread the use of the asset and match it with whatever revenue they get from the use of the asset (an application of prudence concept).
But land does not depreciate, rather it appreciates over time. Due to the fact that land appreciates over time, it would be misrepresentation on the part of Mickelson to report the value of the asset in December 2017 at the price in which the land was purchased in 2000.
Because land appreciates over time, a revaluation is more appropriate. this revaluation compares the carrying value of the land with the fair value on the land as at the date of revaluation (comparing $418,200 with $679,700) and the higher is used.
Hence to faithfully represent the current details of the status of the land, the IFRS (International Financial Reporting Standards) states that the entity should record the value of land at fair value.
I hope this is clear and easy to understand.
Other concepts you might want to check out are;
depreciation
carrying amount
revaluation surplus
fair value
When several different vendors and/or products are candidates and you want to solicit competitive proposals and quotes, what would you use?A) Request for proposal (RFP)B) Request for quotation (RFQ)C) Request for specification (RFS)D) Request for design (RFD)E) None of these
Answer:
A) Request for proposal (RFP)
Explanation:
Request for proposal is a document generated by a company which is basically describing its need and criteria for fulfilling the requirement by the company. In this the company demands proposals for the eligible vendors fulfilling the criteria and requirement as mentioned in the request for proposal.
When there are competitive proposals then company can prepare this and ask the vendors eligible to put there conditions and letters so that the most favorable ones can be asked to put the quotations.
A stock can earn a return of 2%, 20%, or 8%. The stock’s distribution is known, and states that there is a 30% probability of the stock earning a return of 2%, a 36% probability of the stock earning a return of 20%, and a 34% probability of stock earning a return of 8%. What is the variance of the stock’s return?Select one: a. .0056 b. .0923 c. .0061 d. .078 e. .0748
Answer:
option (a) 0.0056
Explanation:
Data provided in the question:
Return that can be earned : 2% 20% 8%
Probability of returns : 30% 36% 34%
Now,
Average return, m = [tex]\frac{2\% + 20\% + 8\%}{3}[/tex] = 10%
Return (X) P(X) X - m ( X - m )² ( X - m )² × P(X)
2% 30% -8% = -0.08 0.0064 0.00192
20% 36% 10% = -0.10 0.01 0.0036
8% 34% -2% = -0.02 0.0004 0.000136
Thus,
Variance of the stock’s return = ∑ ( ( X - m )² × P(X) )
= 0.00192 + 0.0036 + 0.000136
= 0.005656 ≈ 0.0056
Hence,
The correct answer is option (a) 0.0056
Final answer:
The variance of the stock's return is found by calculating the expected return and then summing the squared deviations of each return from the expected return, multiplied by their respective probabilities. The right answer is option (b) .0923.
Explanation:
To calculate the variance of the stock's return, we need to first find the expected value (mean return) of the stock, and then use this to calculate the variance. The expected return is calculated as the sum of the products of each return and its associated probability:
Expected return (E) = (2% * 30%) + (20% * 36%) + (8% * 34%)Next, we calculate the variance by finding the squared deviation of each return from the expected return, multiplying by the probability of that return, and summing these values:
Variance = (30% * (2% - E)^2) + (36% * (20% - E)^2) + (34% * (8% - E)²)After calculating, we will see that the correct option from the provided list is (b) .0923, assuming there are no calculation errors.
Consider three bonds with 6.8% coupon rates, all making annual coupon payments and all selling at a face value of $1,000. The short-term bond has a maturity of 4 years, the intermediate-term bond has maturity 8 years, and the long-term bond has maturity 30 years. a.What will be the price of each bond if their yields increase to 7.8%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 4 Years 8 Years 30 Years Bond price$ $ $ b.What will be the price of each bond if their yields decrease to 5.8%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 4 Years 8 Years 30 Years Bond price$ $ $
Answer:
a. What will be the price of each bond if their yields increase to 7.8%?4 Years : $966,73 (see example)
8 Years : $942,09
30 Years : $885,26
b. What will be the price of each bond if their yields decrease to 5.8%?4 Years : $1,034.81 (see example)
8 Years : $1,062.59
30 Years : $1,140.64
Explanation:
Principal Present Value = F / (1 + r)^t
Coupon Present Value = C x [1 - 1/(1 +r)^t] / r
This is an example for 4 years, 7,8%, to the others years only change "t".
The price of this bond it's $740,50 + $226,23 = $966,73
Present Value of Bonds $740,50 = $1,000/(1+0,0780)^4
Present Value of Coupons $226,23 = $68 (Coupon) x 3,33
3,33 = [1 - 1/(1+0,0780)^4 ]/ 0,0780
This is an example for 4 years, 5,8%, to the others years only change "t".
The price of this bond it's $798,10 + $236,71 = $1,034.81
Present Value of Bonds $798,10 = $1,000/(1+0,0580)^4
Present Value of Coupons $236,71 = $68 (Coupon) x 3,48
3,48 = [1 - 1/(1+0,0580)^4 ]/ 0,0580
Countess Corp. is expected to pay an annual dividend of $5.29 on its common stock in one year. The current stock price is $79.83 per share.
The company announced that it will increase its dividend by 3.40 percent annually.
What is the company's cost of equity?
Answer:
10.03%
Explanation:
Using the dividend discount formula, find the cost of equity; r
[tex]r = \frac{D1}{P0} +g[/tex]
whereby,
D1 = Next year's dividend = 5.29
P0 = Current price of the stock = 79.83
g = growth rate of dividends = 3.40% or 0.034 as a decimal
Next, plug in the numbers to the formula above;
[tex]r = \frac{5.29}{79.83} +0.034\\ \\ r =0.06627 + 0.034\\ \\ =0.10027[/tex]
As a percentage, r = 10.03%
Therefore, the company's cost of equity is 10.03%
Benny Company budgeted 610 pounds of direct materials costing $18.00 per pound to make 8,000 units of product. The company actually used 650 pounds of direct materials costing $30.00 per pound to make the 8,000 units. What is the direct materials quantity variance?
Answer:
-$720 unfavorable
Explanation:
The computation of the material quantity variance is shown below:
= Standard Price × (Standard Quantity - Actual Quantity)
= $18 per pound × (610 pounds - 650 pounds)
= $18 per pound × -40 pounds
= -$720 unfavorable
Simply we take the difference between the standard quantity and the actual quantity and then multiply it by the standard price so that the correct value can come
The direct materials quantity variance for Benny Company is $720 Unfavorable, calculated by multiplying the excess quantity of materials used (40 pounds) by the budgeted price per pound ($18.00).
The direct materials quantity variance is calculated by comparing the difference between the actual quantity of materials used and the budgeted amount, and then multiplying by the budgeted price per unit. The formula is as follows:
Direct Materials Quantity Variance = (Actual Quantity - Budgeted Quantity) × Budgeted Price
In this case, the budgeted quantity is 610 pounds, the actual quantity used is 650 pounds, and the budgeted price is $18.00 per pound. The variance calculation would be:
Variance = (650 pounds - 610 pounds) × $18.00/pound
Variance = 40 pounds × $18.00/pound
Variance = $720 Unfavorable
Since the company used more materials than it budgeted for, the variance is considered unfavorable.
North Company has other operating expenses of $360,000. There has been a decrease in prepaid expenses of $16,000 during the year, and accrued liabilities are $24,000 larger than in the prior period. Using the direct method of reporting cash flows from operating activities, what were North's cash payments for operating expenses?
Answer:$344,000 which is ($360,000-$16,000)
Explanation:
Cash flow from operating activities refers to cash inflow and outflow in ordinary course of business as it relates to sales, purchases, wages, salaries etc. The direct method of cash flow it's strictly concerned with actual cash inflow and outflow for the period. The decrease in prepaid expenses is deducted since it's an outflow, while the accrued liability is of no effect since it's not a cash movement.
North Company's cash payments for operating expenses, calculated using the direct method, are $400,000. This includes other operating expenses of $360,000, an adjustment for a decrease in prepaid expenses of $16,000, and an increase in accrued liabilities of $24,000.
Using the direct method of reporting cash flows from operating activities, we need to take into account North Company's reported other operating expenses, as well as changes in balances of prepaid expenses and accrued liabilities to calculate cash payments for operating expenses.
The operating expenses reported are $360,000. An important adjustment is the decrease in prepaid expenses of $16,000, which means that this amount was expensed and thus part of the cash payments for the year, and an increase in accrued liabilities of $24,000, representing expenses incurred but not yet paid. These increases in liabilities represent cash that was not expended this year but will be in the future.
Therefore, the calculation of cash payments for operating expenses is as follows:
Other operating expenses: $360,000
Plus: Decrease in prepaid expenses: $16,000
Plus: Increase in accrued liabilities: $24,000
This sums up to a total cash payment of $400,000 ($360,000 + $16,000 + $24,000) for North Company's operating expenses using the direct method.
You are asked to spend a week or so as the Fed chairman. It turns out to be a very interesting week. If your goal is to stabilize inflation and economic activity, what would be your response to these three events? Consider each event individually, independent from the others:
(a) a rapid rise in the stock markets rapidly increases people’s wealth.
(b) Chilean citizens get a sudden taste for Buffalo hot wings (they must be made in Buffalo).
(c) firms begin to grow anxious about the decline in consumer confidence.
Answer:
(a) A rapid rise in the stock markets that rapidly increases people’s wealth would mean that for the same level of real interest rate, output will rise because of the rise in demand for consumer goods. This will probably lead to inflation and as chair of the Fed you should raise interest rates to quiet inflation and reduce the gap.
(b) If Chilean citizens get a sudden taste for Buffalo hot wings that must be made in Buffalo, this will have a similar effect as the answer before. The answer is to raise interest rates.
(c) Firms begin to grow anxious about the decline in consumer confidence.
Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $60,000 per ton, one-fourth of which is allocated to product X15. Seven thousand units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $9 each, or processed further at a total cost of $9,500 and then sold for $12 each. Required:Should product X15 be processed further or sold at the split-off point?
Answer:
Processed further
Explanation:
For taking the decision, first we have to determine the increase or decrease cost which is shown below:
Sales revenue if processed further (7,000 units × $12 per unit) $84,000
Less: Sales revenue at the split-off point (7,000 units × $9 per unit) -$63,000
Increase in revenue $21,000
Less: total cost for processing further -$9,500
Financial advantage $11,500
Since the amount is comes in positive, so it would be processed further rather sold at the split-off point
Proper segregation of functional responsibilities calls for separation of:
A. custody, execution, and reporting.
B. authorization, recording, and custody.
C. authorization, payment, and recording.
D. authorization, execution, and payment.
Answer:
C. authorization, payment, and recording.
Explanation:
This is on the principle of segregation of duties as a measure of internal controls. This principle requires that duties are properly separated to ensure that the risk of misstatement and misrepresentations due to fraud or error are mitigated.
For a good system of internal control for which the principle of segregation of duties is applied, one person should not be allowed to initiate, authorize, pay and record transactions. This is to ensure that errors or acts of fraud made by one party involved in the process is prevent, or detected by another and is corrected.
As such, the right option is C. authorization, payment, and recording.
. Determine which market the following industries fit in. Choose from purely competitive, monopoly, oligopoly or monopolistic competition. Explain your choice.
a. Corn farming
b. Grocery stores
c. Electric companies
d. Automobile manufacturing
Answer:
a. Purely competitive
b. Monopolistic Competition
c. Monopolistic Competition
d. Oligopoly
Explanation:
a. Corn farming is a purely competitive market as there is a large number of producers selling the homogenous good i.e corn.
b. Grocery stores are an example of monopolistic competition as there is a large number of sellers providing differentiated products.
c. Electric companies are also an example of monopolistic competition as there is a large number of companies providing differentiated products.
d. Automobile manufacturing is an oligopoly market, there are few large firms dominating the market. These firms are producing slightly differentiated products and are interdependent.
If other factors are held constant, what happens to a confidence interval if the sample variance increases?
A. The standard error increases and the width of the interval increases.
B. The range of t scores increases and the width of the interval increases.
C. The standard error decreases and the width of the interval decreases.
D. The range of t scores decreases and the width of the interval decreases.
Answer:
Someon
Explanation:
Know the answer
Bacchus, Inc. is a large, multinational corporation with various business units around the world. After a fire destroyed the corporation headquarters and largest manufacturing site, plans for which of the following would help Bacchus ensure a timely recovery?
(A) Backup power.
(B) Daily backup.
(C) Business continuity.
(D) Network security.
Answer:
The correct answer is (C)
Explanation:
Business coherence or continuity is an association's capacity to guarantee tasks and centre business capacities are not seriously affected by a disaster or spontaneous occurrence that takes basic frameworks disconnected. Business continuity arranging is the interdepartmental procedure regularly drove by data innovation, of actualising the strategies used to re-establish ordinary business in a set measure of time, characterise the measure of information misfortune worthy to the business, and impart basic data to authoritative partners during and following occurrences.
According to Bruce Scagel, which of the following is NOT one of the four principles necessary to ensure a successful training effort?
a. Duration: Training should be ongoing.
b. Focus: Training should be focused on a limited number of very important performance areas.
c. Mass: Training should provide the maximum payoff that is possible.
d. Value: Training should be focused on performance areas the offer the highest opportunity for payback.
e. Efficiency: Training should be produce the greatest results for the least amount of effort.
Answer:
one principle which is against the BRUCE Scagel principle for training effort is Efficiency
Explanation:
one principle which is against the BRUCE Scagel principle for training effort is Efficiency
According to the Bruce duration of the training must be long enough to provide basic knowledge to the worker. Focus should be on one goal not on the various goal. Maximum number of worker get the benefit of successful training. The main thing that Bruce focused on his principle is the value of training. He focus training on the key area of the employee to get maximum benefit out of the training.
what is the importance of timely leadership action and communication in shaping group culture?
Answer:
Timely leadership and communication are important in shaping group culture.
Explanation:
Communication is important in building a culture it helps leader and pioneers to build up a culture of trust and can without much of a stretch form relationship with workers and different business channels that encourage associations to develop. Timely leadership and communication are two important pillars, that can work together to start a culture that will help an organisation to grow. Interaction with employees, starting group conversations and meetings can help employees to gain confidence, that will lead to a health group culture within an organisation.
A fire destroyed most of the inventory in Mick’s warehouse on September 1. After the fire, Mick’s accounting records showed the following: Inventory, January 1 $ 55,000 Purchases, January 1 through September 1 $ 310,000 Sales, January 1 through September 1 $ 370,000 Inventory not damaged by fire $ 45,000 Gross profit percentage on sales 30 % What amount of inventory was lost in the fire?
Answer:
$61,000
Explanation:
For computing the inventory lost in fire, first we have to determine the various items like - cost of goods available for sale, gross profit, cost of goods sold and ending inventory
So, the cost of goods available for sale would equal to
= Opening inventory + purchase made
= $55,000 + $310,000
= $365,000
The gross profit would be
= Sales × Gross profit percentage
= $370,000 × 30%
= $111,000
And, the costs of goods sold would be
= Sales - gross profit
= $370,000 - $111,000
= $259,000
Now the ending inventory would be
= Cost of goods available for sale - costs of goods sold
= $365,000 - $259,000
= $106,000
And, the not damaged goods were $45,000
So, the lost goods would be
= $106,000 - $45,000
= $61,000
You had your first child recently. You would like to set aside some funds so that your child will be able to attend the University of Texas as an undergraduate without taking on any student loans. Total costs of attendance for undergraduate students currently amount to $28,000 per year and are expected to continue to grow at a 2.5% growth rate per year. Assume that the four-year college expenses for the first year of college need to be paid exactly 18 years from today and that the subsequent costs need to be paid at an annual frequency 19, 20, and 21 years from today. You would like to make 18 equal annual payments starting today to your child’s college savings account to be able to cover the expected college costs. The savings are invested in risk-free Treasury securities that offer a return of 2%. How large are the equal annual contributions to the college savings account over the next 18 years?
Answer:
Equal annual contributions to the college savings account over the next 18 years is : $4,745.6
Explanation:
Suppose the time the child was born is the Beginning of Year 0 (Y0). So, 18 equal contributions need to be made at the beginning of each year from Y0 to Year 17. Denote these cash flow as Annuity 1 which equal: ( C/ 2%) x ( 1.02^18 -1) = 21.4123 x C with C is the equal annual contribution
The tuition fee starting from the beginning of Year 18 end at the Beginning of Year 21 is a growing annuity at 2.5% growth rate. The Value of this annuity ( Annuity 2) discounted to the Beginning of Year 17 calculated as followed:
(28,000 / (2% - 2.5% ) x ( 1 - [( 1+2.5%)/(1+2%)]^4 ) = $110,614
To save enough for college fee, The future value of Annuity 2 must equal the present value of Annuity 2 calculated above.
Thus, we have: 21.4123 x C = 110,614 <=> C = $4,745.6
Intel reports retained earnings at the end of fiscal 2018 of $35,477 million and retained earnings at the end of fiscal 2017 of $32,138 million. The company reported dividends of $4,479 million and other transactions with shareholders that reduced retained earnings during the year by $1,802 million. How much net income did the firm report in fiscal 2018?
A) $3,339 million net income
B) $3,339 million net loss
C) $9,620 million net income
D) $9,620 million net loss
E) None of the above
Answer:
net income = $9620
so correct option C) $9,620 million net income
Explanation:
given data
retained earnings 2018 = $35,477 million
retained earnings 2017 = $32,138 million
dividends = $4,479 million
reduced retained = $1,802 million
to find out
net income did the firm report in fiscal 2018
solution
we get reduced due to dividend and other transaction is
reduced due to dividend and other transaction = $4479 + $1802
reduced due to dividend and other transaction = $6281
net income = retained earnings - reduced due to dividend and other transaction .............1
net income = $35477 -$6281
net income = $9620
so correct option C) $9,620 million net income
Suppose real GDP for a country is $1,200 billion. The GDP price index is 114.6. There are 25 million workers who work 36 hours per week, and the real wage averages $16 per hour. What is labor productivity for this country?
Final answer:
Labor productivity is calculated by dividing the real GDP by the total hours worked in the economy. For this country, with a real GDP of $1,200 billion and 25 million workers working 36 hours per week, labor productivity comes out to be $25.64 per hour.
Explanation:
To calculate labor productivity, we need to first determine the total number of hours worked and then divide the real GDP by this number. Each worker works 36 hours per week, and we can assume there are roughly 52 weeks in a year, hence the total hours worked annually per worker would be 36 hours/week × 52 weeks/year = 1,872 hours/year.
With 25 million workers, the total hours worked in the economy would be :
25 million workers × 1,872 hours/worker/year = 46.8 billion hours.
Dividing the real GDP ($1,200 billion) by the total hours worked gives us the labor productivity.
Labor productivity = $1,200 billion / 46.8 billion hours
= $25.64 per hour.
How would each of the following affect the U.S. money supply? Explain. 1. Banks decide to hold more excess reserves. (Excess reserves are reserves over and above what banks are legally required to hold against deposits.) 2. People withdraw cash from their bank accounts for Christmas shopping. 3. The Federal Reserve sells gold to the public. 4. The Federal Reserve reduces the interest rate it pays on deposits of depository institutions held at the Fed.
Answer:
1. This will reduce the U.S. money supply because more excess reserves to be hold which means that less amount of money lend to the public.
2. This will not affect U.S. money supply because savings account is also a part of money supply.
3. This will reduce the U.S. money supply because there is a flow of money from public to Fed.
4. This will increase the money supply because it will be less profitable for the depository institutions to deposit at the fed. So, they start lending to the public which increases the money supply in the U.S. economy.
It is January 2nd and senior management of Baldwin meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.7. Which of the following statements are true? Check all that apply.
A. Baldwin's long-term debt will rise by $10,000,000
B. Working capital will remain the same at $13,607,943
C. Total Assets will rise to $211,976,070
D. The total investment for Baldwin will be $13,954,930
E. Total liabilities will be $132,001,543
Answer:
Please see attachment
Explanation:
Please see attachment
The S&P 500 index delivered a return of 25%, 15%, -35%, and -5% over four successive years.
What is the arithmetic average annual return for four years?
A) -5%
B) 0%
C) 5%
D) 3%
Answer:
arithmetic average annual return is 0
correct option is B) 0%
Explanation:
given data
return r1 = 25%
return r2 = 15%
return r3 = -35%
return r4 = -5%
to find out
What is the arithmetic average annual return for four years
solution
we know that arithmetic average annual return is express as
[tex]\bar{X} = \frac{\sum x}{N}[/tex] .........................1
here [tex]\bar{X}[/tex] is arithmetic mean and ∑x is sum of return and N is number of observation i.e 4
so put here value in equation 1 we get
[tex]\bar{X} = \frac{25+15-35-5}{4}[/tex]
[tex]\bar{X}[/tex] = 0
so arithmetic average annual return is 0
correct option is B) 0%
The social cost of a monopoly ______.
(A) is equal to the value of the economic rent
(B) equals the social benefit
(C) is illustrated by a curve that would also be the supply curve of the competitive industry
(D) is greater with rent seeking than it otherwise would be
Answer:
(D) is greater with rent seeking than it otherwise would be
Explanation:
In the monopoly, the company is alone to manufacture such product and gain through it. It do not make any efforts to advertise or gain the market share, as it is the sole producer.
Also, the company is the sole producer and thus, charges high for the product, accordingly its earning more than the actual efforts made by it.
Accordingly the social cost is more with the rent seeking concept, because efforts are less.
The social cost of a monopoly is greater with rent seeking than it otherwise would be.
Explanation:The social cost of a monopoly is greater with rent seeking than it otherwise would be.
Learn more about monopoly here:https://brainly.com/question/33076874
#SPJ6
Ford recently hired twenty employees to work in various departments of the company. On the first day, all twenty had the same orientation and attended the same training and development sessions. They were most likely engaged in what form of training?
Answer:
They were most likely engaged in "classroom training and lectures."
Explanation:
Classroom training method involves a facilitator passing across knowledge or information to a group of employees at the same time. The main advantage of this training method is that many employees can learn at the same time.
As the employees were hired by Ford to work in various departments, with different job functions, then it is most likely that on their first day at work, they were put through a "classroom training".
This is further buttressed by the the statement that all twenty of the employees received the same orientation and attended the same training and development sessions in one day and at the same time.
Oriole Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation’s books disclosed the following. Beginning inventory $173,200 Sales revenue $672,900 Purchases for the year 424,200 Sales returns 24,600 Purchase returns 28,000 Rate of gross profit on net sales 30 % Merchandise with a selling price of $21,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $16,100 had a net realizable value of $5,700. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.
Answer:$95,190
Explanation:. $
Opening stock. . 1 73,200
Add purchase less return
(424200-28,000). 396,200
------------
569400
Less cost of goods sold
Salers- return * 70/100
(672900-24600)*70/100=. (453,810)
-----------
Stock balance. 115,590
Less stock salvage
21000*70/100 (14,700)
Damaged realisable value ( 5700)
--------
Stock damaged by fire
95,190
Final answer:
The loss as a result of the fire is $168,857.14.
Explanation:
To compute the loss as a result of the fire, we need to calculate the cost of the damaged inventory and subtract it from the original inventory value.
The cost of the damaged inventory can be determined by multiplying the net realizable value ($5,700) by the ratio of the original selling price of the damaged merchandise to the original selling price of the undamaged merchandise ($16,100/$21,000).
This gives us a cost of $4,342.86 for the damaged inventory.
Subtracting this from the beginning inventory value of $173,200, we find that the loss as a result of the fire is $168,857.14.
Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $450 per month plus $75 per job plus $10 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in September to be 27 jobs and 146 meals, but the actual activity was 23 jobs and 143 meals. The actual cost for catering supplies in September was $3,435. The catering supplies in the planning budget for September would be closest to:
Answer:
$3,935
Explanation:
The computation of the catering supplies are shown below:
= Catering supplies + monthly cost for each job × number of jobs + monthly cost for per meal × number of meals
= $450 + $75 × 27 jobs + $10 × 146 meals
= $450 + $2,025 + $1,460
= $3,935
We simply added the catering supplies cost, meal cost, and the job cost so that the accurate value can come
All other information which is given is not relevant. Hence, ignored it
Adams Corporation’s balance sheet indicates that the company has $510,000 invested in operating assets. During 2018, Adams earned operating income of $52,020 on $1,020,000 of sales. Required Compute Adams’s profit margin for 2018. Computed Adams turnover for 2018. Compute Adams’s return on investment for 2018. Recompute Adams’s ROI under each of the following independent assumptions:
(1) Sales increase from $1,020,000 to $1,224,000, thereby resulting in an increase in operating income from $52,020 to $55,080.
(2) Sales remain constant, but Adams reduces expenses, resulting in an increase in operating income from $52,020 to $54,060.
(3) Adams is able to reduce its invested capital from $510,000 to $408,000 without affecting operating income.
Answer:
Profit Margin = 5.1%
Asset Turnover Ratio = 2:1
ROI (Normal) = 10.20%
ROI (Scenario 1) = 10.80%
ROI (Scenario 2) = 10.60%
ROI (Scenario 3) = 12.75%
Explanation:
Normal Scenario
Profit Margin = Operating Income ÷ Sales Revenue for the year
Profit Margin = $52,020 ÷ $1,020,000 = 5.1%
Asset Turnover Ratio = Sales Revenue ÷ Operating Assets
Asset Turnover Ratio = $1,020,000 ÷ $510,000 = 2 : 1
Return on Investment = Operating Income ÷ Operating Assets
Return on Investment = $52,020 ÷ $510,000 = 10.20%
Scenario 1
Return on Investment = $55,080 ÷ $510,000 = 10.80%
Scenario 2
Return on Investment = $54,060 ÷ $510,000 = 10.60%
Scenario 3
Return on Investment = $52,020 ÷ $408,000 = 12.75%
Suppose there is an increase in the wage and the demand for the consumption good falls, what can you say about the supply of labor? Group of answer choices
A. The supply of labor will definitely increase.
B. The supply of labor will definitely decrease.
C. Either A or B could be true depending upon the consumer’s preferences.
Answer:
A. The supply of labor will definitely increase.
Explanation:
If wages rise, there would be an increase in supply according to the law of supply. The law of supply says the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
If demand for consumer good decreases, the demand for Labour falls.
Beverly Company has determined a standard variable overhead rate of $1.25 per direct labor hour and expects to incur 1 labor hour per unit produced. Last month, Beverly incurred 1,900 actual direct labor hours in the production of 2,000 units. The company has also determined that its actual variable overhead rate is $1.20 per direct labor hour. Calculate the variable overhead rate and efficiency variances also indicate if the variable are favorable or unfavorable the total amount of over- or underapplied variable overhead.
Answer:
(i) 95 (F)
(ii) 125 (F)
(iii) 220 (Overapplied)
Explanation:
Variable Overhead Rate Variance:
= Actual Hours × (Actual Rate - Standard Rate)
= 1,900 × ($1.20 - $1.25)
= 95 (F)
Variable Overhead Efficiency Variance:
= Standard Rate × (Actual Hours - Standard Hours)
= $1.25 × (1,900 - 1 × 2,000)
= 125 (F)
Over- or Underapplied Variable Overhead:
= Actual Overhead Incurred - Overhead Applied
= (1,900 × $1.20) - (2,000 × $1.25)
= 220 (Overapplied)
The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhad and $1.30 for fixed overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:Actual Variable Factory Overhead: $360,000fixed factory overhead 104,000Standard hours allowed for units produced: 60,000 hoursWhat is the amount of the factory overhead controllable variance?options for both are:a) 12,000Ub) 12,000Fc) 14000Ud) 26000U
Answer:
b) 12,000F
Explanation:
Please see attachment .
The factory overhead controllable variance is calculated by comparing actual total overhead costs to standard overhead costs, resulting in a $12,000 favorable variance due to lower actual costs indicating efficient control.
The question asks for the calculation of the factory overhead controllable variance, which involves comparing the standard cost of variable and fixed overhead based on allowed hours to the actual variable and fixed factory overhead costs. The standard variable overhead is calculated as $6.20 per machine hour for 60,000 hours, resulting in $372,000. Meanwhile, the standard for fixed overhead remains constant regardless of the standard hours allowed and is based on the 100% capacity of 80,000 machine hours, which is not directly given but its actual cost is $104,000.
The actual variable factory overhead is $360,000, and the actual fixed factory overhead is $104,000. To find the controllable variance, we compare the actual total overhead ($360,000 + $104,000 = $464,000) to the standard overhead ($372,000 + $104,000 = $476,000). This results in a $12,000 favorable variance, since the actual costs were lower than the standard, indicating efficient control over overhead costs.
Suppose a bank customer with €1,000,000 wishes to trade out of euro and into Japanese yen. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dollar-yen exchange rate is quoted at $1.00 = ¥120. How many yen will the customer get?
Answer:
192,000,000 yen
Explanation:
Please see attachment