Labor Variances Verde Company produces wheels for bicycles. During the year, 660,000 wheels were produced. The actual labor used was 360,000 hours at $9.50 per hour. Verde has the following labor standards: 1) $10.00 per hour; 2) 0.5 hour per wheel.

Answer and Explanation:

a. The preparation manufacturing overhead flexible budget report is shown below:-

                  Manufacturing overhead flexible budget report

                                      Budget    Actual    Favorable (unfavorable)  

Variable costs      

Indirect materials            $11,100    $14,800  $3,700 U  

Indirect labor                  $11,000    $9,200  $1,800 F  

Utilities                            $7,700     $9,300   $1,600 U  

Maintenance                   $5,500    $5,200   $300 F  

Total variable cost          $35,300  $38,500 $3,200 U  

Fixed expense      

Supervisory salaries       $36,700    $36,700   0    

Depreciation                    $6,100       $6,100      0    

Property ,taxes                $7,400       $8,400  $1,000 U  

Maintenance                    $4,900       $4,900      0    

total fixed expense         $55,100       $56,100 $1,000 U  

total controllable cost  $90,400      $94,600  $4200 U

b. The preparation of Manufacturing overhead Responsibility report is shown below:-

Controllable costs     Budget      Actual     Favorable(unfavorable)  

Indirect materials       $11,100      $14,800     $3,700 U  

Indirect labor              $11,000      $9,200     $1,800 F

Utilities                         $7,700      $9,300     $1,600 U  

Maintenance                $10,400     $10,100   $300   F  

Supervisory salaries     $36,700   $36,700    0    

Total                        $76,900   $80,100   $3200 U  

Answer:

Cost of Goods Sold: $245,000

Explanation:

Cost of Goods Sold refers to the direct costs that are incurred when producing the goods sold by a particular company. It includes many costs such as beginning inventory, purchases, purchase returns, discounts on purchases, freight inwards and ending inventory. COGS is also referred to as cost of sales.

Freight inwards are any transportation costs that are incurred when bringing in purchases, hence this is added to purchases. Purchase returns are deducted since they are being returned and hence not a cost. Purchase discounts are also deducted. Ending inventory is the amount of inventory which is remaining and has not been used, thus, this too is deducted.

The calculation for COGS is provided below step-by-step:

1. Beginning inventory : $33200

2. Purchases : $252000

3. Purchase returns : ($11200)

4. Purchase discounts : ($7200)

5. Freight inwards : $19400

6. Ending inventory : ($41200)

Cost of Goods Sold = $245,000

The cost of goods sold for the Askew Company for the year ending June 30, 2021 is $245,000.

Since

Beginning inventory : $33200

Add: Purchases : $252000

Less: Purchase returns : ($11200)

Less: Purchase discounts : ($7200)

Add: Freight inwards : $19400

Less: Ending inventory : ($41200)

Cost of Goods Sold = $245,000

Hence, The cost of goods sold for the Askew Company for the year ending June 30, 2021 is $245,000.

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Answer:$106000

Explanation:

Calculation of current assets

Cash                                22000

Accounts receivable       78000

Inventory                          62000

Prepaid insurance             8000

Total current assets       170000

Given

Current Liabilities = 64000

Working capital = current assets - current liabilities

=170000 - 64000

Working capital of Bob Cat Inc is $106000

Here land is a fixed asset hence cannot be included in working capital. Current assets are the assets which can be liquidated quickly into cash. Current liabilities are the liabilities which will be paid of immediately.

Answer:

IDEK

Explanation:

Answer:

The formula to calculate the Budget Balance is

Government Income - Government Expenditure

in this case

$1.05 billion - $1.06 billion = - 0.01 billion or - $100 million

Explanation:

A budget balance is reached when a government expenditures are equal to it's income.

In this case, since the country's only source of income it is slightly less than than what is required to run the government, it has a budget deficient.

Since the country does not export or trade with outside countries, the government will need to take out a loan to make up for this deficient.

Answer: First-Mover Advantage

Explanation:

The FIRST MOVER is a SERVICE, PRODUCT or COMPANY that gains a COMPETITIVE ADVANTAGE by getting to a market first.

Advantages of this include being able to establish Strong Brand and Customer Loyalty before competitors come into the market and the opportunity of extra time to perfect marketing and production strategies to fully capitalise on market share.

First movers are usually followed by competitors immediately but more often than not, the first mover has established such a strong market share and a solid enough customer base that it maintains the majority of the market.

Answer:

The fixed cost is: A cost that is $28.00 per unit when production is 70,000, and $17.50 per unit when production is 112,000.

Explanation:

A fixed cost is a cost that remains fixed or constant, in total, over any activity level in the short run. Another attribute of the fixed cost is that per unit fixed cost falls as activity level rises. Using this attribute we can say that the cost which is $28 per unit at 70000 units and falls to $17.5 per unit when production increases to 112000 units is the fixed cost.

To support our answer, we can calculate the total cost at both these activity levels:

Total cost = 28 * 70000 = $1960000

Total cost = 17.5 * 112000 = $1960000

Answer:

Choice A cost that is $28.00 per unit when production is 70,000, and $17.50 per unit when production is 112,000

Explanation:

Fixed cost is cost that does not vary with production.

It is the same no matter the level of output.

Examples of fixed cost is rent.

To determine which cost is fixed cost, find the total fixed cost.

For choice A : $28.00 × 70,000 = $1,960,000

 $17.50 x 112,000 = $1,960,000

The total cost is the same for each unit of output, therefore, choice a is a fixed cost.

For choice B : $28 × 70,000 = $1,960,000

$56.00 x 112,000 = $6,272,000

The total varies, so one can conclude that choice B contains variable cost.

I hope my answer helps you

Answer:

From the information given, the number of pizzas is 450 pizzas.

Explanation:

If the cafeteria is open 45 wks a year and they anticipate 10 pizzas per week, then they need 450 pizzas.

[tex]45*10[/tex]

A white hat hacker is hired to test security while a black hat hacker seeks to exploit it.

The difference between a black hat hacker and a white hat hacker is that a white hat hacker is someone who has been hired by an organization to test the security of information systems, while a black hat hacker is someone who seeks to violate computer security for their own personal illegal gain. A black hat hacker has learned tricks and techniques for violating computer and internet security measures that are generally not known by a white hat hacker. It is important to note that a white hat hacker is not necessarily a reformed former black hat hacker, and a black hat hacker can be a nonemployee who tries to violate computer and internet security measures of an organization, while a white hat hacker can be a malicious employee or contractor of the organization.

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2.530 units  contribution margin is required to attain the profit target

Solution:

Given,

Fixed cost = $263,000

Estimated sales are 153,800 units

Tax profit of $126,114

Now,

(Fixed cost + desired profit) ÷ Contribution margin per unit

= Units necessary to earn desired profit ($263,000 + $126,114 ) ÷ ($153,800 - $24)

= $389,114 ÷ $153,776

= 2.530 units

Answer:

a. AIE will have to borrow $25,5102.04  

b. The Effective Rate on this Loan is 6.63%

c. If AIE can convince the bank to remove the compensating balance requirement the  effective rate is 6.50%

Explanation:

In order to calculate how much will AIE have to borrow we would have to use the following formula:

Amount to be borrowed = Cost of Truck / (1 - Compensating balance)

Amount to be borrowed = $250000 / (1 - 0.02)

a. Amount to be borrowed = $25,5102.04

In order to calculate the effective rate on this loan we calculate the following:

Effective Rate on this Loan = Interest / Amount received

Effective Rate on this Loan = 16581.63 / 250000

b.  Effective Rate on this Loan = 6.63%

c. If AIE can convince the bank to remove the compensating balance requirement the Effective rate = annual rate, hence the effective rate is 6.50%

AIE will need to borrow approximately $255,102 at an effective interest rate of 6.63%. If the compensating balance requirement is removed, the effective rate will be 6.5%.

a. AIE will need to borrow the amount of the truck ($250,000) divided by 1 minus the compensating balance rate (2%). So, the company will have to borrow $250,000 / (1 - 0.02) = $255,102.

b. The effective interest rate is the discount interest divided by (1 - compensating balance), which is 6.5% / (1 - 0.02). The effective rate is thus approximately 6.63%.

c. If the compensating balance requirement is removed, the effective rate will be the same as the quoted rate, which is 6.5%%.

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Answer:

Explanation:

The nature of perfect competition is that there exist a large number of firms in an industry. However their products are identical from one seller to another, and sellers are referred to as price takers.

Perfect competition refers to a

situation whereby there are many sellers in the firm, and the entering and exiting of the firm is easy and accessible.

In the perfect competitive firm, the firms in the competitive market has no control in changing the supply and demand of the market.

Perfectly competitive firm can be described as price taker, i.e it must accept the equilibrium price at which it sells it's goods.

The effects of new entrants into a perfectly competitive market on existing firms that have profits in the short run will shift the demand curve of each individual downward, this will now makes the price to fall, and also the average revenue and marginal revenue curve. In addition the productivity of firms in the market will be proportional to their optimal level of production.

Answer:

Perfectly competitive firm means that there are many buyers (consumers) and sellers (producers) in the market and none of the companies can control the pricing (they are price takers).

Explanation:

Characteristics of a perfectly competitive firm.

 1. Many buyers and sellers  

  2.No transaction cost  

  3. As for new entrants into the market, there are no barriers for them to      enter the market  

   4.Products are undifferentiated ( identical )  

   5. There is perfect information concerning the pricing of the good  

Examples of perfectly competitive firms

1. Foreign exchange markets

The currency is undifferentiated, it's identical in all trading platforms.  

If you are a trader you have access to many buyers and sellers.

Information about the prices are available and accurate.

Automobile producer would see profit reduced the most and janitorial services would be least affected.

Explanation:

Recession is one of the phases of the trade cycle. In this phase of the trade cycle, there is downfall in the production, consumption, investment and saving in the economy. The growth rate of the economy sees a downfall in this phase.

Among the examples given here, automobile producer is the firm which would be one of the most affected company during the time of recession because it is not something essential but luxury.

An automobile producer is most likely to see reduced profits during a recession, while a manufacturer of boots and shoes is the least likely. The janitorial service may experience a moderate impact. Recessions cause cyclical unemployment, whereas industry changes or relocations lead to structural unemployment.

The firm likely to see its profits reduced the most in a recession is the automobile producer, since automobiles are expensive, durable goods that consumers often delay purchasing during economic downturns. On the contrary, a manufacturer of boots and shoes is likely to see the least reduction in profits as these items are essential and need to be replaced periodically irrespective of the economic climate. Lastly, a janitorial service may experience a moderate impact since cleanliness is essential for health and safety, yet businesses might reduce the frequency of services to cut costs.

Recessions lead to job losses, creating cyclical unemployment. For example, landscapers laid off due to a drop in new housing construction during a recession is a classic instance of this type of unemployment. Coal miners laid off due to new EPA regulations represent structural unemployment, as the industry changes in response to new legislation. The financial analyst moving to Arizona is an example of frictional unemployment, arising from normal labor turnover and job-seeking activities. Printers and factory workers who lose their jobs due to changing industry conditions or relocation of production are also examples of structural unemployment.

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Answer:

Explanation:

Taxpayer T, a cash basis individual taxpayer, loaned cash to his 2 little girls D1, $ 50,000 dollars which he used to open an investment fund and put resources into stocks. D2 $ 110,000 utilized the advance to redesign her own home. He did not charge any enthusiasm on Loan.

As per IRS, if an individual offers advance to his family, he ought to satisfy the accompanying.

1)The credit ought to be legitimate and enforceable i.e it ought to be recorded as a hard copy.

2) He should charge an enthusiasm for that advance. Else it is a considered blessing.

Since T, did not satisfied both the previously mentioned, the credit given by him to both the girls is an esteemed blessing.

As per IRS, an individual can give an endowment of $ 15,000 for every Persons in a specific year. He can give ito any number of people. Be that as it may, on the off chance that you give more than $ 15,000 in real money or advantages for an individual in a year he have to record a blessing government form i.e, IRS Form 709.

On the off chance that he did not charged any enthusiasm on the credit , that sum is likewise a regarded blessing and blessing expense form should be documented if the all out endowments per individual surpasses $15000.

Some other Gift charge rules are:

You don't need to stress over family credits being liable to blessing charge rules if:

You loan a kid $10,000 or less, and the kid doesn't utilize the cash for ventures, for example, stocks or bonds.

You loan a youngster $100,000 or less, and the kid's net venture pay isn't more than $1,000 for the year.

Investigation:

T has given a credit of $ 50,000 to D1 which is more than $ 10,000 and is put resources into Shares. Subsequently it is considered blessing and he have to record a blessing assessment form

T has given a credit of $ 110,000 to D2 which is more than $ 100,000 and henceforth is considered blessing and need to record a blessing government form

Intrigue isn't charged on credits by T , so it is additionally a considered pay

Given Applicable Federal Rate is 5%

on D1 credit $50,000 *5% = 2500

on D2 credit $ 110,000 *5% = 5500

All out considered blessing to D1 = $ 50,000 + $ 2500 = $52,500

All out considered blessing to D2 = $110,000 + $ 5500 =$ 115,500

Thus, the advances given to D1 and D2 does exclude from T's individual annual Tax return. It is regarded blessing and he have to document blessing assessment form under structure 709 where he should make reference to all the subtleties of presents for every individual

Blessing Tax return doesn't implies he owes Gift Tax. There is $11.58 million of life time Gift charge exclusion. On the off chance that you surpass $ 11.58 million, at that point just you have to cover blessing charge. For wedded the exception of $ 11.58 each for the two mates.

Answer:

Your study partner is correct that the distinction between government’s budget deficit and debt is similar to the distinction between consumer savings and wealth.

Savings and deficits are actions that take place over time, they dont happen overnight . When any government is spending more than it receives in tax revenue in a particular time period, this governmemt will be running a budget deficit. On the other hand, when consumers spend less than their disposable income in a particular time period, they are saving.

However, both debt and wealth are measured at one point in time. When the government runs a budget deficit, the deficit is almost always financed by borrowing, which adds to its debt. This is also Similar to consumers who accumulate wealth by saving.

We can also say that your study partner is wrong in that the government can run a large budget deficit and have a small debt if it hasn’t run large deficits in the past.

Explanation:

See answer for the detailed explaination

Answer:

D

Explanation:

Point D is the letter on the graph represents Mykha's situation. As costs continue to rise while profits decrease.

Cost-push When production costs rise and the overall supply of products and services declines, inflation has taken place. For instance, it's feasible that the owner of a firm will simply shut down the operation if low-paid workers at the facility organize a union and demand higher salaries.

Thus, option D is correct.

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Answer:

Net income = $180,000

- salaries = ($30,000 + $35,000 + $10,000 = $75,000)

adjusted net income = $105,000

the adjusted net income must now be divided equally between the 3 partners:

Their yearly gross income:

total taxable income = $65,000 + $70,000 + $45,000 = $180,000

Final answer:

The IRS may adjust Bonnie and Clyde's salaries based on reasonable compensation guidelines, potentially reducing the S corporation's taxable income. They may also face penalties and interest if their salaries are deemed unreasonably low.

Explanation:

The IRS may adjust the taxpayers' salaries based on reasonable compensation guidelines. In this case, Bonnie and Clyde's salaries may be increased to match the estimated reasonable salaries of $30,000 and $35,000 respectively. If their salaries are adjusted, it would reduce the ordinary income of the S corporation, resulting in lower taxable income.

In addition, the IRS may also impose penalties and interest if they determine that the salaries were unreasonably low or not in line with industry standards. This is to prevent taxpayers from manipulating their income by taking a low salary and receiving a larger share of the profits as distributions.

It's important for Bonnie and Clyde to ensure that their salaries are set at a reasonable level to avoid any potential issues with the IRS.

Answer: $480

Explanation:

As Antoine transferred a property with a tax base of $505 for the stock, this is the new tax base the stock.

However, because the corporation assumed a liability of $25 on the property transferred, that $25 must be accounted for in the tax basis as a result of the transfer.

It is accounted for by simply deducting it from the Tax base,

= 505 - 25

= $480.

Antoine's tax basis in the stock received in the exchange is $480.

Answer:

Role conflict

Explanation:

Answer:

Explanation:

we would be answering this question by presenting the data in a spreadsheet file (which is a computer program that is used for accounting purposes as well as recording of data using columns and rows which information can be entered in such a useful way for decision making, data analyzing and for record keeping.)

Microsoft Excel would be the spreadsheet application that would be used in answering this question, kindly check the attached image to see the presented solution to the question above.

Answer: c. is made by a cash settlement based on the index value

Explanation:

Stock index futures are settled by cash sort of like index options.

This means that there is no delivery of the actual underlying asset at the end of the contract.

The cash / profit is determined by the starting and ending prices of the futures contract.

Answer:

an increase in inventory units.

Explanation:

Absorption costing values units of inventory and production using full cost per unit. Full cost per unit includes variable cost and a portion of fixed production overheads. The fixed production overhead are charged to cost units using predetermined overhead absorption rate.

Whenever there is an increase in inventory in the course of the accounting period , a portion of overhead which has been charged to the closing inventory units would be carried forward to the following accounting period. The impact of this is that the cost of goods sold under  absorption costing would be lower than that of variable costing unit, therefore making the profit under the former method to be greater

Answer:

See explanation section.

Explanation:

See the image.

This detailed answer calculates the annual depreciation expense using both the straight-line and double-declining-balance methods for a tire retreading equipment costing $110,000 over four years. Both methods are explained step-by-step with examples. The final gain on sale of the equipment is also calculated.

To determine the annual depreciation expense using the straight-line method:

Calculate the annual depreciation expense: (Cost - Residual Value) / Useful Life = ($110,000 - $7,500) / 4 = $25,625 per year.

Create a table to show each year's depreciation, accumulated depreciation, and book value:

For the double-declining-balance method:

Calculate the annual depreciation rate: (2 / Useful Life) = 50%.

Apply the rate to the book value at the beginning of each year:

The equipment sold in the fourth year for $18,000 results in a gain of $10,500 because the book value was $7,500.

Answer:

c. $87,000

Explanation:

The computation of the Arthur's basis in the partnership interest at the end of the year is shown below:

= His share of partnership liabilities + net operating income share + increased share in liabilities - distributed amount

= $60,000 + $12,000 + $20,000 - $5,000

= $87,000

Net operating income share is

= $40,000 × 30%

= $12,000

We simply applied the above formula

Answer:

67.44%

Explanation:

The computation of Annualized rate is shown below:-

Annualized rate = (Discount percentage ÷ 100 - Discount percentage) × 365 ÷ (credit period - discount period)

(3% ÷ (100% - 75) × (365 ÷ (75 - 10))

= (3% ÷ 25) × (365 ÷ (75 - 10))

= 12% × 5.62

= 67.44%

Therefore for computing the annualized rate we simply applied the above formula.

The Masson Corporation is using trade credit as a form of financing by foregoing discounts from its suppliers. The effective annual interest rate of this trade credit is approximately 17.0769%, calculated by dividing the 3% discount by the period it covers (65 days), then extrapolating to a full year.

The Masson Corporation is considering foregoing the discount of its suppliers to raise money for working capital. By taking this action, they are effectively using trade credit as a form of financing. To calculate the effective annual interest rate of this trade credit, we need to consider the cost of giving up the discount.

The discount offered is 3%, which is forgone if paid on the 75th day, rather than on the 10th day. The discount period is 65 days (75-10), and the trade credit is extended for 310 days (365 - 65).

The interest for the period of the trade credit could be viewed as being the 3% discount that is being given up. Therefore, the interest paid for the period of trade credit (65 days) is 3%. The annual interest rate can then be calculated by dividing the total discount by the discount period, and then extrapolate this figure to cover a year (365 days).

Therefore, the effective annual interest rate is 3/(65/365) = 17.0769%,approximately.

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Answer:

2 years

Explanation:

The computation of the payback period is shown below:

Payback period = Initial cost of equipment ÷ Annual increase in cash flow

= $214,000 ÷ $107,000

= 2 years

By dividing the initial cost of equipment from the annual increase in cash flow we can get the payback period and the same is shown above i,e in the computation part. and we ignored the salvage value for the same

Answer: Shopping products

Explanation:

A shopping product is a type of product which equires consumer research and the comparison of different brands. Shopping products are items that are less frequently bought by the consumer hence the consumer compare several available brands in the market.

Consumers need planning, time and efforts before a final decision is taken on whether to purchase the product or not.

For example, considering the audio system that Joel wants to buy, he analyzed available brands firstly in the market taking the price and quality into consideration after which a wireless bluetoth home audio system was chosen and paid for. Examples of shopping product are washers, fridge, television etc.

Answer:

shopping products

Explanation:

Answer: 2009: .62 dollars, 2013: 1.25 dollar

Explanation:

In 2009, the US Dollar Exchanged against the Korean Won was something like,

= $1 : 1,600 Won

That means that to get how much USD that 1,000 Won can buy we,

= 1,000/1,600

= $0.62

In 2013, the US Dollar Exchanged against the Korean Won was something like,

= $1 : 800 Won

This shows that the Won became stronger so we can expect to buy more dollars,

Calculating the amount of USD that 1,000 Won can buy we do the following,

= 1,000/800

= $1.25

So the correct option is $0.62 in 2009 and $1.25 in 2013.

Answer: Yes he should.

Explanation:

Barton Rodr was a salaried programmee who was working for Yzer at the time of the accident.

He decided to volunteer to help his company with yard work for it's grand reopening.

Whilst helping, he sustained an injury and notified his employers of his intention to seek workers compensation benefits. In doing so, he has satisfied one of the requirements for claiming such.

His employer then refused to grant him workers compensation as it says that he was not working at the time.

This is untrue as Barton Rodr was working at the time of the incident. Even though he was volunteering for the company, it does not mean that he was a volunteer because he was not an ordinary person but rather an employee of the firm.

According to the law, workers compensation arises in the line of duty to the employer. The only deviation is where the employee is doing something purely personal or for another entity. Barton Rodr in this instance was still serving his employer even though it was outside the office.

It is important to note that what Mr. Rodr was doing was in the interest of his employer and he was still an employee when the incident happened.

These 2 facts alone entitle him to workers compensation benefits.

The new stockholders' equity section of the Jun Company's balance sheet, after declaring and distributing a 15% stock dividend, has a common stock value of $1,408,750, a paid-in capital in excess of par value (common stock) value of $763,750, retained earnings value of $694,250, leading to a total stockholders' equity value of $2,866,750.

First, we need to determine the number of shares that the stock dividend will create. A 15% stock dividend on 245,000 shares equals 36,750 new shares (0.15 * 245,000). These shares have a par value of $5, so the total par value of the new shares is $183,750 (36,750 * $5).

Next, we calculate the market value of the new shares. They are worth $10 each, therefore the total market value is $367,500 (36,750 * $10). This value is divided into two parts: par value ($183,750, which we already calculated) and additional paid-in capital ($183,750) which is the market value minus the par value.

So, the new stockholders' equity section would look like this:        

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