Moonrise Bakery applies factory overhead based on direct labor costs. The company incurred the following costs during 2017: direct materials costs, $710,000; direct labor costs, $3,600,000; and factory overhead costs applied, $2,520,000.
1. Determine the company’s predetermined overhead rate for 2017.
2. Assuming that the company’s $77,000 ending Work in Process Inventory account for 2017 had $26,000 of direct labor costs, determine the inventory’s direct materials costs.
3. Assuming that the company’s $550,000 ending Finished Goods Inventory account for 2017 had $329,000 of direct materials costs, determine the inventory’s direct labor costs and its overhead costs.
Answers
Answer:
Please see attachment
Explanation:
Please see attachment
Related Questions
Which of the alternatives to the modern theory of the firm holds that managers attempt to meet some goal that is defined in terms of a specified level of sales, profits, growth, or market share?
A. Management utility maximization model
B. Profit maximization model
C. Satisficing model
D. Sales maximization model
Answers
Answer:
C. Satisficing model
Explanation:
Satisficing model aims at reaching and receiving the results which makes the desired person satisfied with the results.
It basically provides the company and its management to not only find an optimal solution but a solution which is satisfying for the management.
Thus, in the given instance management sets a prescribed percentage as results they desire for sales, and related profit which further results in desired level of growth.
Thus, this is about satisfactory results that is Satisficing model.
The Satisficing model is the options to the current theory of the firm maintains that managers try to complete any goal that is defined in terms of a specified level of sales, profits, etc.
What is Satisficing model?Satisficing is a decision-making process that seeks a sufficient result, rather than the best solution. Rather than setting the highest effort toward achieving the ideal result.
It focuses on sensible steps when faced with charges.
It essentially furnishes the company and its direction to not just encounter an optimum resolution, but an explanation which is fulfilling for the control.
Thus, in the given example, management develops a visited percentage of outcomes they want for sales and connected profit, which additionally results in the desired level of growth.
Therefore, option C is correct.
Learn more about the Satisficing model, refer to:
https://brainly.com/question/24961412
Pentex and Marbro, small companies in the stationery business, each had a dollar gross margin of $20,000 during September 2014. Pentex's September sales were twice that of Marbro's. If Pentex's gross margin as a percentage of sales for September was 10%, what was Marbro's gross margin as a percentage of sales for the same period?
Answers
Answer:
20%
Explanation:
Since the gross margin is $20,000 and the gross margin percentage of Pentex is 10%, so from this information we can find out the sales value which is shown below:
Gross profit percentage = Gross profit ÷ sales
10% = $20,000 ÷ sales
So, the sales would be $200,000
Since the Pentex sales is twice of Marbro
So, the Marbro sales would be half of Pentex sales
So, the Marbro sales would be $100,000
Now the Marbro gross profit percentage would be
= $20,000 ÷ $100,000
= $20%
Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year (before adjustment), and bad debt expense is estimated at 4% of net credit sales. If net credit sales are $600,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is A. $24,500B. $23,500C. $24,000D. cannot be determined
Answers
Answer:
C. $24,000
Explanation:
We assume that the company follows the percentage-of-sales method. In this method, the company ignored the previous balance of allowance for Doubtful Accounts
So, the amount of the adjusting entry to record the estimate of the uncollectible accounts would be
= Net credit sales × estimated percentage given
= $600,000 × 4%
= $24,000
All other information which is given is not relevant. Hence, ignored it
During the latest year, Sky Inc. had total sales of $500,000, net income of 30,000, and its year-end total assets were $250,000. The firm’s total debt to total assets ratio was 0.36. You can assume total debt is the same as total liabilities. What is firm's return on equity (ROE)?
Answers
Answer:
18.75%
Explanation:
Data provided in the question:
Total sales = $500,000
Net income = $30,000
Total assets = $250,000
Debt to total assets ratio = 0.36
Thus,
Total debt = 0.36 × $250,000
= $90,000
Shareholders equity = Total assets - Total debt
= $250,000 - $90,000
= $160,000
Now,
Return on equity = Net income ÷ Shareholders Equity
= [ $30,000 ÷ $160,000] × 100%
= 18.75%
Services differ from manufacturing for all of the following reasons EXCEPT: a. Heterogeneity b. Time-perishable capacity c. Simultaneous consumption and production d. Ability to limit discretionary action of personnel e. Customer provides significant inputs into the process
Answers
Option d 'Ability to limit discretionary action of personnel' does not differentiate services from manufacturing as both sectors can implement processes to limit staff discretion.
Services are characterized by several distinct features: a. Heterogeneity services are diverse and vary from one service provider to another; b. Time-perishable capacity services cannot be stored for sale at a later time; c. Simultaneous consumption and production services are typically produced and consumed at the same time;
Customer provides significant inputs into the process often in services, customers play an active role in the process. The option that does not differentiate services from manufacturing is d. Ability to limit discretionary action of personnel. Both service and manufacturing sectors can put in place processes and policies to limit discretionary actions of their staff.
Clay met with his supervisor, Suri, to discuss that he was being given the same bonus as everyone else on his team at the end of each year, even though he had a Master’s degree, took on extra and more difficult projects, and finished well ahead of given deadlines. Because Suri is not able to change the bonus, she can expect Clay to respond in all of the following ways EXCEPT(A) ignoring his feeling of resentment.(B) transferring.(C) quitting(D) reducing his production(E) reducing his hours
Answers
Answer:
A) ignoring his feeling of resentment
Explanation:
Having in mind Vroom's expectancy theory and the motivation output of its formula, it is impossible for Clay to continue working with the same zeal and interest. Even though the expectancy and valence factors of the formula are high (he is self-confident in his work and bonuses are his preferred form of rewards), the instrumentality factor is critically low, since Clay does not receive the desired reward amount.
Therefore, it is highly likely for Clay to quit his job, transfer to another position or company on the one hand, or reduce his productivity and work hours on the other hand. Since he already stated his feeling of resentment regarding the bonus, it is impossible for him to become satisfied with it afterwards.
2) A 10-year, 10% semiannual coupon bond selling for $1,135.90 can be called in 4 years for $1,050 (hint: par value is $1,000). Draw the Time line? Show your work What is its yield to maturity (YTM)? Show your work What s its current yield (CY)? Show your work What is its yield to call (YTC)? Show your work.
Answers
Answer
The answer and procedures of the exercise are attached in the following 2 images.
Explanation
FILE HOME INSERT DATA REVIEWVIEW Tell me what you wa fc 1 time to maturity years) 2 time to maturity(semi-annual) 3 coupon rate 4 par value 5 annual coupon 6 semiannual coupon 7 price 8 semiannual YTM 9 Annual YTM 10 call price 11 time untill call 12 time untill call(semi-annual) 13 semi-annual YTC 14 annual YTC 15 current yield 16 10 formulas 20 B1*2 1000 100 B3 B4 0 B5/2 1135.9 4% RATE(B2,B6,-B7,B4) 8.00% B8*2 1050 4 8 B11*2 3.57% RATE(B12,B6,-B7,B10) 7.14% B13"2 8.80% B5/B7
2) YTM = ANNUAL YTM
3) YTC = Annual YTC
8. PLC pays an annual dividend of $6.00. The company is expected to continue paying this dividend with no future growth in dividends. Investors require 11% rate of return on this investment. What is the current stock value of PLC?
Answers
Answer:
The current stock value of PLC: $54.55.
Explanation:
Please find the below for detailed explanations and calculations:
PLC's stock value should equal to the present value of its future dividends discounted at required rate of return which is given in the question at 11%.
The constant stream of PLC's annual dividend as described in the question forms a perpetuity of $6.00 dollar per year perpetually.
As explained above, by applying the formula for calculating the present value of the perpetuity, we have:
PLC's current stock value = 6/11% = $54.54.
The current stock value of PLC is calculated using the formula for the present value of a perpetuity, which yields a value of $54.55.
Explanation:
The question is asking for the current stock value of PLC based on its perpetual annual dividend of $6.00, with no future growth in dividends, and an investor's required 11% rate of return. This is a question generally covered in corporate finance and involves concepts such as dividend discount model or Gordon Growth Model. However, since the growth rate in this case is zero, we will be using the formula for the value of a perpetuity.
The formula for the present value of a perpetuity is PV (stock value) = D / r, where D is the constant annual dividend and r is the required rate of return. Here, D = $6.00 and r = 11% or 0.11.
Substituting the given values into the formula, we get:
Stock Value = $6.00 / 0.11 = $54.55
Therefore, the current stock value of PLC is $54.55.
Learn more about Dividend Discount Model here:https://brainly.com/question/34888767
#SPJ3
Candela Company has retained earnings of $500,000, common stock of $400,000, and total common stockholders’ equity of $1,200,000. It has 200,000 shares of $2 par value common stock outstanding which is currently selling for $5 per share. If Candela Company declares a 2-for-1 stock split on its common stock, what will the effect on total common stockholder's equity?
Answers
Answer:
Total common stockholder's equity will not be effected after the stock split. In other words, it remains at the total of $1,200,000.
Explanation:
Since this is the stock-split transaction, the total common equity does not change.
What has been changed after the stock split is the increase of outstanding share of the company and the decrease par value of their common share. The change is proportionate in the way that total value of the company common stock's related account remain the same.
In this question, since the stock slit is 2-for-1, par value decreases by one-half and outstanding common share increases double.
Marigold Corp.can produce 100 units of a component part with the following costs:
Direct Materials $21000
Direct Labor 5500
Variable Overhead 19000
Fixed Overhead 11000
If Marigold Corp. can purchase the units externally for $50000, by what amount will its total costs change?
A. An increase of S4500
B. An increase of $50000
C. An increase of $15S00
D. A decrease of $11000
Answers
Answer:
A. An increase of $4,500
Explanation:
For computing the total cost change, first we have to determine the total cost which is shown below
= Direct Materials cost + Direct Labor costs + variable overhead costs
= $21,000 + $5,500 + $19,000
= $45,500
And, the outside purchase is $50,000
So, the total cost change would be
= $50,000 - $45,500
= $4,500 increase
Stock X has a beta value of 1. It pays annual dividends, of $5, starting one year from today. If the risk-free return is currently 2%, and the equity risk premium is 5%, what is the present value of the stock?
Answers
Answer:
$71.43%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Cost of equity = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
The (Market rate of return - Risk-free rate of return) is also known as equity risk premium
For computing the present value of the stock, first we have to compute the cost of equity which is shown below:
= 2% + 5 1 5%
= 2% + 5%
= 7%
Now the present value of the stock would be
= Annual dividend ÷ cost of equity
= $5 ÷ 7%
= $71.43%
The Scandrick Corporation needs to raise $70 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $30 per share and the company’s underwriters charge a spread of 8 percent. If the SEC filing fee and associated administrative expenses of the offering are $575,000, how many shares need to be sold? (Do not round intermediate calculations and enter your answer in shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.)
Answers
Answer:
2,536,232 shares
Explanation:
For computing the shares need to be sold, first we have to determine the net proceed which is shown below:
= (Raise amount to finance its expansion into new markets) ÷ (1 - company’s underwriters charge a spread percentage)
= ($70,000,000) ÷ ( 1 - 8%)
= $76,086,956.52
Now the required number of shares sold would be
= Net proceeds amount ÷ offer price per share
= $76,086,956.52 ÷ $30
= 2,536,232 shares
Omar's current annual salary is $75,000. How much will he need to earn 20 years from now to retain his present purchasing power if the rate of inflation over that period is 3%/year? Assume that inflation is continuously compounded. (Round your answer to the nearest cent.)
Answers
Answer:
amount = $136658.91
Explanation:
given data
current annual salary = $75,000
time = 20 years
rate = 3% = 0.03
to find out
amount
solution
we will apply here amount formula for continuously compounded that is express as
amount = Principal × [tex]e^{rt}[/tex] .......................1
put here value we get
amount = $75,000 × [tex]e^{0.03*20}[/tex]
amount = $75,000 × 1.822
amount = $136658.91
Final answer:
Omar will need to earn approximately $135,979.03 in 20 years to maintain the purchasing power of his current $75,000 salary, considering a 3% annually compounded inflation rate.
Explanation:
The question asks how much Omar needs to earn after 20 years to maintain the current purchasing power of his $75,000 salary with a continuously compounded inflation rate of 3% per year. To calculate this, we can use the formula for continuous compounding: A = Pe^{rt}, where A is the amount needed in the future, P is the current principal amount ($75,000), r is the annual interest rate (inflation rate of 0.03), t is the time in years (20 years), and e is the base of the natural logarithm (approximately 2.71828).
Plugging in the values, we get A = 75000e^{0.03*20}. After performing the calculation, we find that Omar will need to earn approximately $135,979.03 to retain the same purchasing power in 20 years, rounding to the nearest cent.
A reduction in U.S net exports would shift U.S. aggregate demand
a. rightward. In an attempt to stabilize the economy, the government could increase expenditures.
b. rightward. In an attempt to stabilize the economy, the government could decrease expenditures.
c. leftward. In an attempt to stabilize the economy, the government could increase expenditures.
d. leftward. In an attempt to stabilize the economy, the government could decrease expenditures.
Answers
Answer:
c. leftward. In an attempt to stabilize the economy, the government could increase expenditures.
Explanation:
When the economy of a country faces a recession, that country chooses not to make high imports. For example, if Canada faces a recession in its economy, the Canadian government will not import more to stabilize the economy. According to the Keynesian framework, as the income of people decreases, the net export will be reduced, and the aggregate demand curve will shift leftward.
3. Calculate the equity each of these people has in his or her home: Fred just bought a house for $200,000 by putting 10% as a down payment and borrowing the rest from the bank. Freda bought a house for $150,000 in cash, but if she were to sell it now, it would sell for $250,000.
Answers
Answer:
1. $20,000
2. $250,000
Explanation:
In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:
Total assets = Total liabilities + stockholder equity
The debit and credit side of the balance sheet should always be equal and balanced.
Moreover, it always is prepared on the specified date.
In the given case, the equity value would be
1. Assets = $200,000
Down payment = $200,000 × 10% = $20,000
Borrowed amount or Liabilities = $200,000 - $20,000 = $180,000
So, the equity would be $20,000
2. Purchase price = $150,000
Market value to sell = $250,000
The market value would be considered as an equity because there is no liability i.e $250,000
2. A company’s financial records at the end of the year include the following amounts: Cash $ 70,000 Accounts receivable 28,000 Supplies 4,000 Accounts payable 10,000 Notes payable 5,000 Retained earnings, beginning of year 17,000 Common stock 40,000 Service revenue 62,000 Wages expense 8,000 Advertising expense 6,000 Rent expense 10,000 What is the amount of net income on the income statement for the year? a. $47,000. b. $88,000. c. $38,000. d. $30,000.
Answers
Answer:
c. $38,000
Explanation:
In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
The computation of the net income is shown below:
= Service revenue - Wages expense - Advertising expense - Rent expense
= $62,000 - $8,000 - $6,000 - $10,000
= $38,000
The records for the Clothing Department of Metlock’s Discount Store are summarized below for the month of January. Inventory, January 1: at retail $24,800; at cost $16,600 Purchases in January: at retail $136,600; at cost $78,695 Freight-in: $7,100 Purchase returns: at retail $3,000; at cost $2,200 Transfers in from suburban branch: at retail $13,000; at cost $9,300 Net markups: $8,100 Net markdowns: $3,900 Inventory losses due to normal breakage, etc.: at retail $500 Sales revenue at retail: $94,300 Sales returns: $2,500 Compute the inventory for this department as of January 31, at retail prices.
Answers
Answer:
$83,300
Explanation:
Total at retail:
= Beginning inventory + Purchases - Purchase return + Transfers in from suburban branch
= $24,800 + $136,600 - $3,000 + $13,000
= $171,400
Ending inventory at retail:
= Total at retail + Net markups - Net markdowns - (sales - sales return) - Normal shortage
= $171,400 + $8,100 - $3,900 - ($94,300 - $2,500) - $500
= $171,400 + $8,100 - $3,900 - $91,800 - $500
= $83,300
Amazon, a successful online retailer, manages an extensive customer database that is used to determine which products are suggested to each customer. Some data are best collected from the customer; other data are best collected from the businesses where purchases are made. Which of the following customer data are best collected from the customer A. Publicity B. Personal Selling
Answers
Companies like Amazon collect extensive customer data, including information best sourced from the customers themselves, like Personal Selling and Publicity preferences. They use big data and customer feedback to personalize shopping experiences and improve marketing strategies. Businesses employ various methods to gather these data, ensuring a balance of directly engaging customers and analyzing their behaviors.
The customer data that are best collected from the customer include Personal Selling and Publicity preferences. Companies like Amazon gather massive amounts of big data which include details about purchasing habits, browsing history, and personal preferences. Such data practices assemble comprehensive profiles of customer interactions with their platform to offer tailored product suggestions and improve sales strategies.
To successfully manage these databases, businesses apply advanced data mining technology, as well as strategies like personalized follow-up emails when shopping carts are abandoned. Companies often rely on customer feedback directly obtained from their customers through mechanisms such as surveys, questionnaires, and direct customer engagement to refine their services and product offerings. This direct contact with customers provides invaluable insights that may not be easily discernible through passive data collection methods.
By focusing on customer data practices that leverage both business-collected data and customer-supplied information, companies like Amazon are able to maintain a competitive edge, ensuring that they address their customers' needs while optimizing their own sales and marketing efforts.
According to the three-needs theory, the need for ________ is the need to make others behave in a way that they would not have behaved otherwise.
Answers
Answer: Power
Explanation: In simple words, power refers to the need in which one aims to gain authority and recognition in which their subordinate and colleagues values them and behaves with them in utmost respect.
Usually, such need brings conflicts in group as if any issue arises the one in the power always wins and the other will always loose no matter who was wrong and who was right.
People in this category usually employs high discipline and remain inn need for a tweeter personal recognition.
The Southside City has $47 million of debt recorded in its Schedule of Changes in Long-term Obligations, made up of $30 million of general obligation debt, $1 million of compensated absences payable, $4 million claims and judgments, and $12 million of obligations under capital leases. The State limits the amount of general obligation debt that can be issued by a City to 20% of the assessed value of its taxable property. The assessed value of property in Southside City is $250 million. The legal debt margin for Southside City is
Answers
Answer
The answer and procedures of the exercise are attached in the following images.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 2 sheets with the formulas indications.
Equipment was acquired for $256,000 and has accumulated depreciation of $187,000. The business exchanges this equipment for new equipment. The new equipment has a market value of $208,000 and the business pays $159,000 cash. Assume the exchange has commercial substance. The exchange results in ________.
Answers
Answer:
exchange results = - $20000 loss
Explanation:
given data
acquired = $256,000
accumulated depreciation = $187,000
market value = $208,000
business pays cash = $159,000
to find out
The exchange results
solution
we get exchange results as gain or loss that is calculate as
exchange results = market value - book value of assets exchange - cash paid ..................1
here book value of assets exchange = acquired - accumulated depreciation
book value of assets exchange = $256,000 - $187,000 = $69000
so from equation 1
exchange results = market value - book value of assets exchange - cash
exchange results = $208,000 - $69000 - $159,000
exchange results = - $20000 loss
When exchanging equipment, the loss is determined by comparing the book value of the old equipment to the total cost of the new equipment. In this case, the old equipment's book value is $69,000, and the new equipment's total cost is $367,000, which means the business has incurred a loss.
Explanation:The exchange of equipment in the scenario described results in a gain or loss that can be calculated by comparing the book value of the old equipment to the value of the new equipment plus any additional cash paid.
The book value of the old equipment is calculated by subtracting the accumulated depreciation from the original cost: $256,000 - $187,000 = $69,000.
The company receives new equipment worth $208,000 and pays $159,000 in cash, making the total cost of the new equipment $208,000 + $159,000 = $367,000. Comparing this to the book value of the old equipment shows that the company has incurred a loss.
Dividends are: Multiple Choice payable at the discretion of a firm's president. treated as a tax-deductible expense of the issuing firm. paid out of aftertax profits.. paid only to preferred stockholders. only partially taxable to high-income individual shareholders.
Answers
Answer:
paid out of after tax profits
Explanation:
When the business organization earns net profit during the given period. It is compulsory to distribute the dividend to preference shareholders and the equity shareholders and if the company is suffering from the losses then no dividend would be declared
The priority is given to the preference shareholders over the equity shareholders
So, the after tax profits would be computed below:
= Total revenue - total expenses - income tax expense
Suppose there are 2,000 people who are unemployed as a result of cyclical unemployment and 1,000 people who are unemployed as a result of structural unemployment. How many people are unemployed as a result of frictional unemployment?
Answers
Answer:
1,000
Explanation:
Suppose the town of Boone has a total population of 50,000 people. Of those, 45,000 people are employed. There are 1,000 full-time students who are not employed or actively seeking work. The rest of the people are out of work but have been actively seeking work within the past four weeks.
This information is not given in the question.
For computing the frictional unemployment, first we have to determine the unemployed which is shown below:
Number of unemployed would be
= Total population - employed - full time students
= 50,000 - 45,000 - 1,000
= 4,000
Now the frictional unemployment would be
= Unemployed - cyclical unemployment - structural unemployment
= 4,000 - 2,000 - 1,000
= 1,000
Gonzalez Company acquired $153,600 of Walker Co., 8% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $43,200 of the bonds for 98.Journalize entries to record the following in Year 1 (refer to the Chart of Accounts for exact wording of account titles):a. The initial acquisition of the bonds on May 1.b. The semiannual interest received on November 1.c. The sale of the bonds on November 1.d. The accrual of $1,300 interest on December 31.
Answers
Answer:
The Journal entries are as follows:
(i) On may 1,
Investment - Walker Co. A/c Dr. $153,600
To cash $153,600
(To record the initial acquisition of the bonds)
(ii) On November 1,
Cash A/c( $153,600 × 8% × 6/12) Dr. $6,144
To Interest revenue $6,144
(To record the semiannual interest received)
(iii) On November 1,
Cash A/c ($43,200 × 98%) Dr. $30,240
Loss on sale of investment A/c Dr. $12,960
To Investment - Walker Co. $43,200
(To record the sale of the bonds)
(iv) On December 31,
Interest receivable A/c Dr. $1,300
To Interest revenue $1,300
(To record the accrual of $1,300 interest)
Joe Henry's machine shop uses 2 comma 500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets:
Annual demand: 2,500
Holding cost per bracket per year: $ 1.50
Order cost per order: $ 18.75
Lead time: 2 days
Working days per year: 250
a) What is the EOQ? (round your response to two decimal places).
b) What is the average inventory if the EOQ is used? (round your response to two decimal places). What would be the annual inventory holding cost? (round your response to two decimal places).
c) Given the EOQ, how many orders will be made annually? (round your response to two decimal places). What would be the annual order cost? (round your response to two decimal places).
d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? (round your response to two decimal places).
e) What is the time between orders? (round your response to two decimal places).
f) What is the reorder point (ROP)? (round your response to two decimal places).
Answers
Answer:
a) 250 brackets;
b) Average inventory: 125 brackets; Annual inventory holding cost: $187.50
c) 10 orders;
d) $375
e) 25 days
f) 20 brackets
Explanation:
a) EOQ = square root of [(2* Order Cost per one order * annual demand] / Holding Cost per bracket per year ] = square root of [ 2* 18.75 * 2,500 / 1.5] = 250 brackets.
b) Average inventory = EOQ/2 = 125 brackets; Annual inventory holding cost = 125 x 1.5 = $187.5
c) Orders made annually give EOQ = Annual demand / EOQ = 2,500/250 = 10 orders;
d) Total annual cost of managing (ordering and holding) the inventory = 10 x 18.75 + 187.5 = $375
e) Time between orders = Total annual working days/ orders made per year = 250/10 = 25 days.
f) The reorder point (ROP) = Demand of bracket per working day * lead time = Annual demand * Lead time / total annual working days = 2,500*2/250 = 20 brackets.
The Economic Order Quantity (EOQ) is 250 brackets. The average inventory if EOQ is used is 125 brackets, with an annual inventory holding cost of $187.50. The time between orders is 25 working days, and the reorder point (ROP) is 20 brackets.
Explanation:To find the Economic Order Quantity (EOQ), we can use the formula: EOQ = √((2 * Annual demand * Order cost per order) / Holding cost per bracket per year). Plugging in the values, we get EOQ = √((2 * 2500 * 18.75) / 1.5) = √((93750) / 1.5) = √62500 = 250.
The average inventory if the EOQ is used can be calculated as EOQ/2, which is 250/2 = 125 brackets. The annual inventory holding cost is the average inventory multiplied by the holding cost per bracket per year, which is 125 * 1.50 = $187.50.
The number of orders made annually can be calculated as Annual demand divided by the EOQ, which is 2500/250 = 10. The annual order cost is the number of orders multiplied by the order cost per order, which is 10 * 18.75 = $187.50.
The total annual cost of managing the inventory can be calculated by adding the annual inventory holding cost and the annual order cost, which is $187.50 + $187.50 = $375.
The time between orders can be calculated as EOQ divided by the annual demand, which is 250/2500 = 0.1 years, or 0.1 * 250 = 25 working days.
The reorder point (ROP) can be calculated as Lead time multiplied by the daily demand, which is 2 * (2500/250) = 20 brackets.
Learn more about Economic Order Quantity (EOQ) here:https://brainly.com/question/34141837
#SPJ3
Activity-Based Management for a Hotel Consider the following actions of a hotel chain trying to manage the costs of its check-in process. Required Match each of the process improvements listed with how it delivers cost reductions. Process Improvement Delivers Cost Reduction
1. Guests may now check in online rather than in person.
2. Guest information is added to forms based on computerized reservation rather than waiting until guest checks in.
3. The hotel closes for two months in the "low" season.
a. By reducing the frequency of activity.
b. Improving the efficiency of the activity.
c. By both (a) and (b).
Answers
Answer:
1. Guests may now check in online rather than in person.
c. By both (a) and (b).
2. Guest information is added to forms based on computerized reservation rather than waiting until guest checks in.
b. Improving the efficiency of the activity.
3. The hotel closes for two months in the "low" season.
a. By reducing the frequency of activity.
Explanation:
You can measure efficiency in business activity by getting the quotient of an actual output rate of a worker by a determinate standard output rate. This comparison will improve or get closer to 1 if guests' information is added to forms based on computerized reservation rather than waiting until guest checks in. Thus, a person in a hotel lobby counter will do her/his work more efficiently if s/he has access to the guest's computerized reservation instead of waiting for the guest to submit her/his information in the check-in process.
This business activity has a particular frequency as a service business related to seasons. A low-season closing follows to a zero frequency, therefore, there are no expenses related to a service which the business is not offering.
Finally, as guests may now check-in online rather than in person, this combines frequency and efficiency in business, thus, the business would not have to pay for a worker on the counter to ask and fill in forms at the hotel check-in process.
On June 8, Alton Co. issued an $88,500, 7%, 120-day note payable to Seller Co. Assume that the fiscal year of Seller Co. ends June 30. Using a 360-day year in your calculations, what is the amount of interest revenue recognized by Seller in the following year? When required, round your answer to the nearest dollar.
Answers
Answer:
Amount of interest revenue recognized [tex]=\frac{2065\times 98}{120}=$1686.41[/tex]
Explanation:
Principal amount P = $88500
Rate of interest r = 7 %
Total number of days = 120
So interest [tex]=\frac{principal\ amount\times rate\times time}{100}=\frac{88500\times 7\times 120}{360\times 100}=$2065[/tex]
Number of days from 8 june to 30 june = 30-8 = 22 days
So left days = 120-22 = 98 days
So amount of interest revenue recognized [tex]=\frac{2065\times 98}{120}=$1686.41[/tex]
Stossel Company sells 300 units for $200 each to Liberty Inc. for cash. Stossel allows Liberty to return any unused product within 30 days and receive a full refund. The cost of each product is $120. Stossel estimates that ten units will be returned, the costs of recovering the units will be immaterial, and the returned units are expected to be resold at a profit. What amount of Sales Returns and Allowances should Stossel record in the year of the sale?(a)$2,000.(b)$0.(c)$800.(d)$1,200.
Answers
Answer:
Option A.
Explanation:
The given information about the Stossel Company is
Selling price per unit = $200
Cost of each product = $120
Estimated return = 10 units
Sales Returns and Allowances = (Estimated return) x (Selling price per unit )
Substitute the given values in the above formula.
Sales Returns and Allowances = (10) x ($200)
= $2,000
The amount of Sales Returns and Allowances should Stossel record in the year of the sale is $2,000.
Therefore, the correct option is A.
With a pull marketing strategy,A. orders for merchandise are generated at the store level based on sales data captured at POS terminals.B. there is a greater likelihood of being overstocked or out of stock than in a push supply system.C. merchandise is allocated to stores on the basis of demand forecasts.D. inventory management is less responsive to customer demand.E. it is more difficult to manage conditions of high uncertainty than in a push supply chain.
Answers
Answer:
A. orders for merchandise are generated at the store level based on sales data captured at POS terminals.
Explanation:
In a pull marketing strategy, the company focuses on targeting customers to want the product under consideration specifically. For this the company focuses on targeting customers directly by providing straight discounts when bought from production houses directly.
This basically ignores the role of retailers and middle persons in the supply chin. Companies target the customer in such manner so that customers directly contact the producing houses.
Accordingly, orders are booked in store level only, through estimated sales study.
Your company is environmentally conscious and is considering two heating options for a new research building. What you know about each option is below, and your company will use an annual interest rate (MARR) of 88% for this decision. Which is the lower cost option for the company?
Answers
Answer
The answer and procedures of the exercise are attached in the following archives.
You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.