Answer:
$2.22 per moves
Explanation:
Activity rate for moving =expected cost/Expected no of moves =$200000/90000 =$2.22 per mover
Glenville Company has the following information for April: Cost of direct materials used in production $50,000 Direct labor 56,000 Factory overhead 35,000 Work in process inventory, April 1 39,000 Work in process inventory, April 30 34,000 Finished goods inventory, April 1 25,000 Finished goods inventory, April 30 17,000 a. For April, determine the cost of goods manufactured. Using the data given, prepare a statement of Cost of Goods Manufactured.
Answer and Explanation:
The preparation of Cost of Goods Manufactured is shown below:
Glenville Company
Statement of Cost of Goods Manufactured
Work in progress inventory April, 1 $39,000
Cost of direct materials used in production $50,000
Direct labor $56,000
Factory overhead $35,000
Total manufacturing cost incurred in April $141,000
Total manufacturing cost $180,000
Work in progress inventory April, 30 $34,000
Cost of goods manufactured $146,000
($180,000 - $34,000)
Gabrielle is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. They decide to trust in the prevailing collective wisdom of the industry as a whole, and not wanting to instigate a communications war, settle on spending only as much as their nearest market rival does on marketing communications. What method did Gabrielle and Trent use to arrive at the marketing communications budget
Answer:
The correct answer is letter "C": competitive-parity method.
Explanation:
The competitive-parity method is the marketing approach in which companies simply adopt the same advertisement strategy its competitors incorporate in an attempt of reducing costs. No major research is conducted implementing this practice since entities limit themselves to follow the current marketing trend.
Incorporating similar advertisement approaches in most cases takes companies to allocate for it the same amount of money than rivals.
In the video, Mike Boyle says he has read that meeting with employees regularly is important to motivation. Although he and Bob hold weekly staff meetings with their employees, Mike believes they should meet more often. He knows that employee meetings should have a purpose, and he asks you for advice. To make sure meetings are motivational for employees, what should be discussed?
Answer:
A meeting should have a specific time limit. Within that time limit, only a several amount of topics should be discussed as more focused the topics will be, the more effective the meeting will be.
In these meetings, the employers must make a platform for the employees to present the challenges and difficulties they face over the course of their work. This way, many problems can be identified and solved effectively.
Moreover, employees grievances must be discussed as well.
Explanation:
Employee meetings should focus on performance appraisals, career development, and open feedback discussions to be motivational. Building a strong manager-employee relationship and translating meeting outcomes into actionable plans are also key for meeting effectiveness.
Explanation:To ensure that employee meetings are motivational and effective, several key topics should be discussed. First, performance appraisals should be on the agenda, allowing for a structured evaluation of an employee's work performance, which may involve discussing job responsibilities and setting goals for future improvement. This process should be based on original job analysis and relevant objectives.
Another topic is career development, where employees' paths within the company are explored, including skills development and growth opportunities. This could be broken down into specific time frames for milestones and goals, as suggested in their first year on the job. Thirdly, meetings should include open feedback discussions where employees have the chance to communicate their perceptions of the work environment, express concerns, and provide suggestions for improvement in a confidential and trusting setting.
Furthermore, the aspect of the manager-employee relationship cannot be overstated. Managers can enhance this relationship by understanding and addressing what motivates and frustrates their employees, thus promoting a collaborative work atmosphere. Lastly, it is crucial for both parties to translate the outcomes of these meetings into actionable plans, with employees taking initiative to work on identified weaknesses and managers working eficiently to aid their team's development.
Rhonda has an adjusted basis and an at-risk amount of $23,600 in a passive activity at the beginning of the year. She also has a suspended passive activity loss of $4,720 carried over from the prior year. During the current year, she has a loss of $37,760 from the passive activity. Rhonda has no passive activity income from other sources this year. Determine the following items relating to Rhonda's passive activity as of the end of the year.At year-end, Rhonda has the following:
a. Adjusted basis in the passive activity: $0
b. Loss suspended under the at-risk rules: $4500
c. Suspended passive activity loss: $______
(I got A & B but im stuck on C...its not zero) help please..
Answer:
Explanation:
At risk amount = $23,600
Suspended loss at beginning of year = $4,720
Total loss under passive activity = $37,760
a. Adjusted basis in the passive activity: $0
b. Loss suspended under the at-risk rules: $14,1600
Loss suspended under the at risk rules :Total loss under passive activity - At risk amount
= $37,760 - 23,600 = $14,160
c. Suspended passive activity loss: $18880
Suspended loss at beginning of year + loss suspended under the risk rules = 4720 + 14160 = $18880
Videoworld is a discount store that sells color televisions. The monthly demand for color television sets is 100. The cost per order from the manufacturer is $600. The carrying cost is $64 per set each year. Assume a year has 360 working days. Determine the following values rounding to the nearest integer (answer them using only numbers without any sign such as the dollar sign, comma, ...): Q1. The optimal quantity per order: Q2. The minimum total annual inventory costs: Q3. The optimal number of orders per year: Q4. The optimal time between orders (in working days): If the store had an inventory policy that allows shortages with the shortage cost per set estimated at $80, determine the following values:
Complete question:
Videoworld is a discount store that sells color televisions. The monthly demand for color television sets is 100. The cost per order from the manufacturer is $600. The carrying cost is $64 per set each year. Assume a year has 360 working days. Determine the following values rounding to the nearest integer (answer them using only numbers without any sign such as the dollar sign, comma, ...):
Q1. The optimal quantity per order: Q2. The minimum total annual inventory costs:
Q3. The optimal number of orders per year:
Q4. The optimal time between orders (in working days):
If the store had an inventory policy that allows shortages with the shortage cost per set estimated at $80, determine the following values:
5) The optimal quantity per order when the store allows shortages
6) The optimal storage level when the store allows shortages
7) The optimal number of orders when the store allows shortages
8)The optimal time between orders (in working days) when the store allows shortages.
Answer:
1) 150
2) $4,800
3) 8
4) 45 days
5) 201
6) 89
7) 6
8) 60 days
Explanation:
We are given:
Monthly demand, = 100
Cost per order, S= $600
Carrying cost, H = $64 per set/ year
Shortage cost, Cs = $80
Yearly demand will be, D= 100*12 =1200
1) The optimal quantity per order:[tex] (Q*) = \sqrt{\frac{2*D*S}{H}} [/tex]
[tex] = \sqrt{\frac{2*1200*600}{64}} [/tex]
[tex] = \sqrt{22500} = 150 [/tex]
2) The minimum total annual inventory cost:
Average inventory * H
Where average inventory = Q*/2
[tex] = \frac{150}{2} = 75 [/tex]
Therefore,
Average inventory * H
= 75 * 64
= $4,800
3)The optimal number of orders per year:
[tex] = \frac{D}{Q*} = \frac{1200}{150} = 8[/tex]
4) The optimal time between orders:
[tex] = \frac{360}{8} = 45 days [/tex]
5)The optimal quantity per order when the store allows shortages:
[tex] Q= \sqrt{\frac{2*D*S*(H+Cs)}{H * Cs} [/tex]
[tex] = \sqrt{\frac{2*1200*600*(64+80)}{64 * 80} [/tex]
= 201.25 ≈ 201
6) The optimal shortage level when the store allows shortages:
[tex] = \frac{Q* H}{H* Cs} [/tex]
[tex] = \frac{201 * 64}{64* 80} [/tex]
= 89.33 ≈ 89
The optimal shortage level when the store allows shortages = 89
7) The optimal number of orders per year when the store allows shortages:
No. of orders =
[tex] \frac{D}{Q} = \frac{1200}{201} [/tex]
= 5.97 ≈ 6
Optimal number of orders per year = 6
8) The optimal time between orders (in working days) when the store allows shortages:
Time between orders = Number of working days/ Number of orders
[tex] = \frac{360}{6} = 60 [/tex]
The optimal time between orders (in working days) = 60 Days
You deposit $5,000 per year at the end of each of the next 25 years into an account that pays 8% compounded annually. What will be the value of the account in 25 years, rounded to the nearest dollar
Answer:
future value = $365529.69
Explanation:
given data
deposit = $5,000
time period = 25 years
compounded annually = 8%
solution
we get here future value that is express as in excel by formula that is
=FV(rate;NPER; PMT)
here NPER is 25 and PMt is -5000
and rate is 8%
put value and we get
future value = $365529.69
Suppose Stark Ltd. just issued a dividend of $1.73 per share on its common stock. The company paid dividends of $1.40, $1.47, $1.54, and $1.65 per share in the last four years. If the stock currently sells for $60, what is your best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends?
Answer:
Cost of equity = 8.44%
Explanation:
The price of a share can be calculated using the dividend valuation model
According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.
The model can be modified to determine the cost of equity
Ke =Do (1+g)/P + g
g- growth rate in dividend, P- current price, D- recent dividend
growth rate = (( Recent dividend /oldest dividend)^1/n - 1)× 100
n- no of years of growth
growth rate = (1.73/1.40)^1/4 - 1 × 100 = 5.4%
Cost of equity = 1.73×(1.054)/60 + 0.054 = 8.44%
Complete the statements about the following three theories for the upward slope of the short-run aggregate-supply curve.
According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too_____ , thus labor demand is too______ .
According to the sticky-price theory, the economy is in a recession because______ .
According to the misperceptions theory, the economy is in a recession when the price level is_______ what was expected. (fill in the blanks).
Answer:
high,high
not all prices adjust quickly
below
Explanation:
According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too high, thus labor demand is too high.
Real wages decline as nominal wages are adjusted. As a result, the economy returns to full employment
According to the sticky-price theory, the economy is in a recession because not all prices adjust quickly.
As people observe the lower price level, the economy returns to the long-run aggregate supply curve.
According to the misperceptions theory, the economy is in a recession when the price level is below what was expected.
As people observe the lower price level, their expectations adjust.
Byrd Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 155,000 shares of stock outstanding. Under Plan II, there would be 105,000 shares of stock outstanding and $1.33 million in debt outstanding. The interest rate on the debt is 6 percent and there are no taxes.
a. If EBIT is $200,000, what is the EPS for each plan?
b. If EBIT is $450,000, what is the EPS for each plan?
c. What is the break-even EBIT?
a. Plan I: $1.29, Plan II: $1.16
b. Plan I: $2.90, Plan II: $3.54
c. The break-even EBIT, with an interest rate of 6%, is approximately $221.27.
a. EPS Calculation for EBIT of $200,000:
**Plan I:**
[tex]\[ EPS = \frac{EBIT - Interest}{Number of Shares} \][/tex]
[tex]\[ EPS = \frac{200,000}{155,000} = $1.29 \][/tex]
**Plan II:**
[tex]\[ EPS = \frac{EBIT - (Interest \times (1 - Tax Rate))}{Number of Shares} \][/tex]
Since there are no taxes, the equation simplifies to [tex]\[ EPS = \frac{EBIT - Interest}{Number of Shares} \][/tex]
[tex]\[ EPS = \frac{200,000 - (1.3 million \times 0.06)}{105,000} = $1.16 \][/tex]
b. EPS Calculation for EBIT of $450,000:
**Plan I:**
[tex]\[ EPS = \frac{450,000}{155,000} = $2.90 \][/tex]
**Plan II:**
[tex]\[ EPS = \frac{450,000 - (1.3 million \times 0.06)}{105,000} = $3.54 \][/tex]
c. Break-even EBIT Calculation:
For break-even EBIT, the EPS for both plans are equal:
[tex]\[ \frac{EBIT - \text{Interest}}{155,000} = \frac{EBIT - (1.3 \, \text{million} \times 0.06)}{105,000} \][/tex]
To simplify, we can cross-multiply to eliminate the denominators:
[tex]\[ 105,000 \times (EBIT - \text{Interest}) = 155,000 \times (EBIT - 1.3 \, \text{million} \times 0.06) \][/tex]
Next, distribute and collect like terms:
[tex]\[ 105,000 \times EBIT - 105,000 \times \text{Interest} = 155,000 \times EBIT - 155,000 \times 1.3 \, \text{million} \times 0.06 \][/tex]
Now, isolate the terms involving EBIT:
[tex]\[ 105,000 \times EBIT - 155,000 \times EBIT = - 155,000 \times 1.3 \, \text{million} \times 0.06 + 105,000 \times \text{Interest} \][/tex]
Combine like terms:
[tex]\[ -50,000 \times EBIT = - 155,000 \times 1.3 \, \text{million} \times 0.06 + 105,000 \times \text{Interest} \][/tex]
Finally, solve for EBIT:
[tex]\[ EBIT = \frac{- 155,000 \times 1.3 \, \text{million} \times 0.06 + 105,000 \times \text{Interest}}{-50,000} \][/tex]
Now, plug in the given values:
[tex]\[ EBIT = \frac{- (155,000 \times 1,300,000 \times 0.06) + 105,000 \times \text{Interest}}{-50,000} \][/tex]
Calculate the terms:
[tex]\[ EBIT = \frac{- (11,070,000) + 105,000 \times \text{Interest}}{-50,000} \][/tex]
Now, express the equation without the fraction:
[tex]\[ -50,000 \times EBIT = -11,070,000 + 105,000 \times \text{Interest} \][/tex]
Isolate EBIT:
[tex]\[ EBIT = \frac{-11,070,000 + 105,000 \times \text{Interest}}{-50,000} \][/tex]
Substitute the given interest rate of 6% into the equation:
[tex]\[ EBIT = \frac{-11,070,000 + 105,000 \times 0.06}{-50,000} \][/tex]
Simplify the expression:
[tex]\[ EBIT = \frac{-11,070,000 + 6,300}{-50,000} \][/tex]
[tex]\[ EBIT = \frac{-11,063,700}{-50,000} \][/tex]
[tex]\[ EBIT = 221.274 \][/tex]
Therefore, the break-even EBIT, when the interest rate is 6%, is approximately $221.27.
The question probable maybe:
Byrd Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 155,000 shares of stock outstanding. Under Plan II, there would be 105,000 shares of stock outstanding and $1.3 million in debt outstanding. The interest rate on the debt is 6 percent and there are no taxes.
a. If EBIT is $200,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b. If EBIT is $450,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
c. What is the break-even EBIT? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
a. Plan I $1.29
Plan II $1.16
b. Plan I $2.90
Plan II $3.54
c. Break-even EBIT ???
Marx Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs are $0.50 per unit and fixed costs are $0.50 per unit. Current monthly sales are 183,000 units. Heaven Company has contacted Marx Company about purchasing 15,000 units at $1.00 each. Current sales would not be affected by the special order and no additional fixed costs would be incurred on the special order. Marx Company's change in profits if the order is accepted will be:
Answer:
Effect on income= 7,500 increase
Explanation:
Giving the following information:
Variable costs are $0.50 per unit.
Current monthly sales are 183,000 units.
Heaven Company has contacted Marx Company about purchasing 15,000 units at $1.00 each.
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Sales= 15,000*1= 15,000
Variable cost= 15,000*0.5= (7,500)
Effect on income= 7,500 increase
Answer:
Increase of $7,500
Explanation:
Consider the Incremental Costs and revenues arising from acceptance of the offer.
Note : Fixed Costs will not increase as the offer is within the capacity of Marx Company and are therefore irrelevant for this decision.
Sales(15,000×$1.00) $15,000
Less variable costs (15,000×$0.50) ($7,500)
Net Income $7,500
Therefore an increase of $7,500 is expected in profits if Marx Company accepts the order
Training programs which incorporate a variety of delivery modes and techniques tend to be particularly effective because trainees with certain _____________________ may learn better through one training approach than another.
A. training objectives
B. learner characteristics
C. ADDIE traits
D. supervisors
Answer:
The correct answer is letter "B": learner characteristics.
Explanation:
In psychology, there are three main learner's characteristics considered: personal characteristics (demographic information from the learners such as age, gender, language or social-economic status), academic characteristics (type of education and qualifications), and cognitive characteristics (level of intellectual skills and type of operational memory).
These characteristics must be considered by trainers at the moment of creating their programs since they must include a variety of learning approaches suitable for each type of learner in an attempt to ensure they will understand the information the trainer wants to transmit.
The following information is available for Amos Company for the year ended December 31, 2017. Balance of retained earnings, December 31, 2016, prior to discovery of error, $859,000. Cash dividends declared and paid during 2017, $29,000. It neglected to record 2015 depreciation expense of $37,600, which is net of $6,900 in tax benefits. The company earned $223,000 in 2017 net income. Prepare a 2017 statement of retained earnings for Amos Company. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Amos Company
Statement of retained earning
as on December 31, 2017
Retained Earning December 31, 2016 $859,000
Add: Net Income for 2018 $223,000
Dividend -$29,000
Prior years error adjustment -$37,600
Retained Earning December 31 $1,015,400
Explanation:
Retained Earning is an equity account and its balance is credit in nature. It is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.
Omission of depreciation expense understated the expenses for the year and overstated the profit of 2015, which ultimately overstated the retained earning value. we need to adjust this error in retained earning balance because it is adjustment of an prior year error, it will not be included in the current years net income calculations. It already netted off so we just simply adjust it in the retained earning with the value of $37,600.
Buker Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: Estimated machine-hours 72,500 Estimated variable manufacturing overhead $3.10 per machine-hour Estimated total fixed manufacturing overhead $838,790 The predetermined overhead rate for the recently completed year was closest to:
Answer:
$11.57 per machine hour
Explanation:
Predetermined overhead rate is used to allocate overheads (indirect) to products / jobs or departments.
Predetermined overhead rate = Budgeted Fixed Costs / Budgeted Activity
Note : Buker Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.
Predetermined overhead rate = $838,790/ 72,500
= $11.57 per machine hour
Suppose that a cafe enjoys a large increase in customers whenever the jazz club next door features a band playing appealing music because it can be easily heard from the cafe. The jazz club owner decides to purchase the cafe so that he can internalize this positive externality. Which of the following types of private solutions to the externality of appealing music has occurred in this case?
a. Contracts
b. Charities
c. Moral codes and social sanctions
d. Integration of different types of businesses through merger or acquisition
Answer:
D. Integration of different types of businesses through merger or acquisition
Explanation:
Externalities occur when the production or consumption of a particular good or service affects a third-party who is not related to the transaction. A positive externality is one that is favorable and beneficial to the third party and a negative externality is one that is unfavorable and creates a cost to the third party. In this case, the third party is the owner of the cafe and it is a positive externality because the music creates an increase in the number of customers to his/her business.
When the jazz club owner purchases/acquires the cafe, the cafe becomes his. Hence, the benefit felt to the cafe by the music from the jazz club is a benefit that his own new business incurs. Thus, the integration of these two businesses into one helps internalize the positive externality since now the main party involved in the transaction is also the one feeling the positive externality and not a third-party as used to be.
The jazz club owner has internalized the positive externality by purchasing the cafe, representing a private solution of integration through merger or acquisition.
Explanation:In the scenario provided, the cafe experiences a positive externality from the jazz club's music, which leads to an increase in customers when appealing music is played. The jazz club owner decides to internalize this positive externality by purchasing the cafe, so that he can benefit directly from the increased customer flow that the music provides to the cafe. This type of private solution to the externality of appealing music is an example of integration of different types of businesses through merger or acquisition. This move ensures that the benefits associated with the music are fully captured by the jazz club owner, now owner of both establishments, and is a textbook example of a business solution to manage externalities.
Suppose the S&P 500 index is currently 950 and the initial margin is 10%. You wish to enter into 10 S&P 500 futures contracts. a. What is the notional value of your position? What is the margin? b. Suppose you earn a continuously compounded rate of 6% on your margin balance, your position is marked to market weekly, and the maintenance margin is 80% of the initial margin. What is the greatest S&P 500 index futures price 1 week from today at which you will receive a margin call?
Final answer:
The notional value of entering into 10 S&P 500 futures contracts with an index at 950 is $2,375,000, and the initial margin is $237,500. A margin call would occur if the futures price drops significantly in a week, considering a 6% continuously compounded interest rate on the margin balance and an 80% maintenance margin requirement.
Explanation:
The question involves calculating the notional value and initial margin for entering into S&P 500 futures contracts and determining the futures price at which a margin call would occur given certain conditions.
a. Notional Value and Initial Margin
The notional value of a futures contract is the value of the underlying asset represented by the contract. With the S&P 500 index currently at 950 and the intention to enter into 10 contracts, the notional value would be 950 (index value) * 10 (number of contracts) * $250 (standard contract size for S&P 500 futures), totaling $2,375,000. The initial margin, being 10% of this value, equates to $237,500.
b. Margin Call Price
With weekly mark-to-market and a maintenance margin set at 80% of the initial margin, the margin balance would need to be at least $190,000 (80% of $237,500). Assuming a continuously compounded interest rate of 6% on the margin balance, the account value would grow to approximately $240,113.29 in one week. To avoid a margin call, the futures price should not drop to a level where the equity in the account falls below the maintenance margin requirement, considering gains from interest.
Merone Company allocates materials handling cost to the company's two products using the below data:
Modular Homes Prefab Barns
Total expected units produced 6500 9500
Total expected material moves 650 250
Expected direct labor-hours per unit 850 350
The total materials handling cost for the year is expected to be $265,500.
If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the prefab barns is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
Material handling cost allocated to Prefab Barns= $99,750
Explanation:
Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers.
Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.
Activity rate per driver is calculated as:
Activity overhead for the period / Total cost drivers for the period
Using direct labour hours, the material handling cost can allocated as follows:
Total direct labour hours
(850 ×6500) +(9500×350) =8850000
Material handing cost allocated to Prefab =
(9500×350)/8850000 × $265,500 =$99750
Material handling cost allocated to Prefab Barns= $99,750
Final answer:
The total materials handling cost allocated to the prefab barns, when based on direct labor-hours, is approximately $99,713.35.
Explanation:
To allocate the materials handling cost on the basis of direct labor-hours to the prefab barns, we must follow a series of steps:
Calculate the total direct labor-hours for each product.
Determine the proportion of total direct labor-hours attributable to prefab barns.
Allocate the materials handling cost based on that proportion.
For Modular Homes: 6500 units imes 850 labor-hours = 5,525,000 labor-hours
For Prefab Barns: 9500 units imes 350 labor-hours = 3,325,000 labor-hours
Total labor-hours = 5,525,000 + 3,325,000 = 8,850,000 labor-hours
The proportion for Prefab Barns = 3,325,000 / 8,850,000 = 0.3757 (rounded to four decimal places)
Total materials handling cost for Prefab Barns = 0.3757 imes $265,500 ≈ $99,713.35 (rounded to two decimal places)
Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Digby has obtained a productivity index of 109.4%. This means that Digby's labor costs would be increased by 9.4% if it did not have these productivity improvements. This is a competitive advantage that Digby can sustain or even widen further if its competitors have no HR initiatives. Now, refer to the Income Statement in Digby's Annual Report. How much did Digby's productivity improvements save it in direct labor costs (in thousands) last year
Answer:
$ 3,063.
Explanation:
Saving in labor cost last year = Labor cost during current year * Increase in labor cost during current year.
= 32584 * 9.4 %
= $ 3,063
Conclusion :- Option a). $ 3,063. (This amount of $ 3063 increase in labor costs during current year as compared to last year represents to saving in labor costs during the last year i.e., Labor costs were less / short by $ 3063 during the last year).
Kindly note that this solution was arrived at based on the information that is available to me.
The direct labor cost is the cost incurred over the labor or employees for producing the goods or providing the services. There is a direct relationship between the productivity and direct labor cost.
The saving amount of direct labor cost for improving the productivity is $3,063.
Computation:
Given:
Labor cost of current year =$32,584
Percentage increase in labor cost =9.4%
[tex]\begin{aligned}\rm{Saving in labor cost last year}& = \rm{Labor \;cost\; during\; current\; year}\times\\& \rm{Increase \;in \;labor \;cost \;during \;current \;year}\\&= \$32,584 \times9.4 \%\\&= \$ 3,063\end{aligned}[/tex]
Therefore, $3,063 is the in the direct labor cost as compared to the previous year. Thus, last year the labor cost was short by $3,063.
To know more about direct labor cost, refer to the link:
https://brainly.com/question/15860064
(8 points) Ehlo Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 3,980 $18 2/4 Purchase 4,000 22 2/20 Sale 4,650 4/2 Purchase 5,250 24 7/17 Purchase 3,100 27 11/4 Sale 6,200.Compute cost of goods sold, assuming Ehlo uses:a. Periodic system, FIFO cost flowb. Perpetual system, FIFO cost flowc. Periodic system, LIFO cost flowd. Perpetual system, LIFO cost flowe. Periodic system, weighted=average cost flowf. Perpetual system, moving-average cost flow
Answer:
k
Explanation:
Periodic FIFO is a cost flow tracking system that is used within a periodic inventory system. In a periodic system, the ending inventory balance is only updated when there is a physical inventory count.
Under first-in, first-out method, the ending balance of inventory represents the most recent costs incurred to purchase merchandise or materials.
Please go to attachment for a step by step explaination of the answer.
A company wants to set up operations in a country with the following corporate tax rate structure: Taxable Income Tax Rate <$50,000 15% $50,000 - $75,000 25% $75,000 - $100,000 34% >$100,000 39% Therefore, a taxable income of $60,000 would result in taxes due of $50,000*0.15 + ($60,000-$50,000)*0.25 = $50,000*0.15 + $10,000*0.25 = $10,000 If the compay expects gross revenues of $400,000, $100,000 in total costs, $60,000 in allowable tax deductions and $12,000 in a one-time business start-up credit, how much should the company expect to pay in taxes?
Answer:
Taxable income = $240,000
Amount payable = $64,850
Explanation:
As per the data given in the question,
Taxable income :
Gross revenue = $400,000
Total cost = $100,000
Net profit = $400,000 - $100,000 = $300,000
Allowable tax deduction = $60,000
Taxable income = $300,000 - $60,000
= $240,000
Tax to be paid :
Computation of tax Amount to be taxed Rate Tax
$50,000 $50,000 15% $7,500
$50,000 to $75,000 $25,000 25% $6,250
$75,000 to $100,000 $25,000 34% $8,500
More than $100,000 $140,000 39% $54,600
Total tax $76,850
Amount payable = Total tax - Tax credit
= $76,850 - $12,000
=$64,850
Exercise 20-19 Budgeted cash payments LO P2 Zisk Co. purchases raw materials on account. Budgeted purchase amounts are: April, $80,000; May, $110,000; and June, $120,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $22,000. Prepare a schedule of budgeted cash payments for April, May, and June.
Answer:
See explanation section.
Explanation:
P2 Zisk Co.
Budgeted cash payments
For the 2nd quarter
April May June
Accounts payable $22,000
70% in the month of purchase $56,000 $77,000 $84,000
30% in the month after purchase $24,000 $33,000
Budgeted cash payments $78,000 $101,000 $117,000
Total budgeted cash for the 2nd quarter = $296,000.
30% in the month after purchase means 30% amount will be given in the following month.
Final answer:
The student's question involves creating a schedule of budgeted cash payments for a company based on monthly purchases and specified payment terms. The company pays 70% of purchases in the same month and 30% in the following month, with an accounts payable balance carried from March.
Explanation:
The student's question involves preparing a schedule of budgeted cash payments for Zisk Co., which has planned purchases for the months of April, May, and June, with specific payment terms: 70% paid in the month of purchase and 30% paid in the following month. To begin with, we need to consider the existing accounts payable balance from March 31, which amounts to $22,000.
Here's how you can calculate the cash payments for each month:
April: Payments for April purchases (70% of $80,000) plus the carryover balance from March (30% of $22,000).
May: Payments for May purchases (70% of $110,000) plus the remaining amount from April's purchases (30% of $80,000).
June: Payments for June purchases (70% of $120,000) plus the remaining balance from May (30% of $110,000).
Using this approach, you can detail the cash outflows for Zisk Co. and accurately prepare the cash budget.
The Connors Company's last dividend was $1.00. Its dividend growth rate is expected to be constant at 15% for 2 years, after which dividends are expected to grow at a rate of 10% forever. Connors' required return (rs) is 12%. What is Connors' current stock price?
a. $56.82
b. $58.15
c. $62.87
d. $60.07
e. $54.91
Answer:
The price of the Stock today is $60.07. So option D is the correct answer.
Explanation:
The stock price of a company's stock whose dividends grow at two different growth rates can be calculated using the two stage Gordon growth model also known as the two stage DDM.
The short term growth rate or the growth rate that is for a limited time period is taken as g1. So, g1 is 15%
The sustainable growth rate which is the growth rate that will prevail forever is taken as g2. So, g2 is 10%
The price of the stock today is,
P0 = 1 * (1+0.15) / (1+0.12) + 1 * (1+0.150^2 / (1+0.12)^2 +
[ (1 * (1+0.15)^2 * (1+0.1) / (0.12 - 0.1)) / (1+0.12)^2 ]
P0 = $60.067 rounded off to $60.07
During 2021, its first year of operations, Hollis Industries recorded sales of $10,500,000 and experienced returns of $750,000. Cost of goods sold totaled $7,350,000 (70% of sales). The company estimates that 9% of all sales will be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns under the assumption that all sales are made for cash (no accounts receivable are outstanding).
Answer:
The adjusting entries are as follows
Explanation:
The adjusting entries are as follows
1. Sales return Dr $195,000
To Refund liabilities $195,000
(Being the sales return is recorded)
It is computed below:
= $10,500,000 × 9% - $750,000
= $195,000
2. Inventory estimated returns Dr $136,500
To Cost of goods sold $136,500
(Being the inventory estimated return is recorded)
It is computed below:
= $195,000 × 70%
= $136,500
Final answer:
To account for the anticipated sales returns, an adjusting journal entry is made. This involves debiting the Sales Returns and Allowances account and crediting the Sales Revenue account by the estimated return amount.
Explanation:
To account for the anticipated sales returns, we need to make an adjusting journal entry at the end of the year. Since the company estimates that 9% of sales will be returned, we need to calculate the estimated return amount. In this case, the estimated return amount is $10,500,000 * 9% = $945,000.
Now, let's make the adjusting journal entry. The first step is to debit the Sales Returns and Allowances account for the estimated return amount of $945,000. The offsetting credit entry is made to the Sales Revenue account, reducing it by the same amount. So, we credit the Sales Revenue account for $945,000.
The journal entry would be:
Debit: Sales Returns and Allowances - $945,000Credit: Sales Revenue - $945,000Perez Corporation has 100,000 shares of $1 par value common stock and 20,000 shares of 8% cumulative preferred stock, $100 par value, outstanding. The balance in Retained Earnings at the beginning of the year was $1,600,000, and one year's dividends were in arrears. Net income for the current year was $870,000.
If Perez Corporation paid a dividend of $2 per share on its common stock, what is the balance in Retained Earnings at the end of the year?
a. $2,150,000.
b. $2,270,000.
c. $2,110,000.
d. $1,950,000.
Answer:
Option D is correct,$1,950,000
Explanation:
In order to compute the closing balance of retained earnings, the preferred shares dividends for prior and current years as well as the common stock dividend must be deducted from net income before adding the remnant to the opening retained earnings:
Net income $870,000
Preferred dividend prior year($100*20000*8%) ($160,000)
Preferred dividend current year($100*20000*8%) ($160,000)
Common stock dividend($2*100,000) ($200,000)
net income after dividends $350,000
Closing retained earnings=$1600,000+$350,000
=$1,950,000
Answer:
D. $1,950,000
Explanation:
burnett corp. pays a constant $7.40 dividend on its stock. the company will maintain this dividend for the next 8 years and will then cease paying dividends forever. If the required return on this stock is 12 percent, what is the current share price
Answer:
The correct answer is $36.778.
Explanation:
According to the scenario, the given data are as follows:
Dividend = $7.40
Time period (t) = 8 years
Return required (r) = 12%
So, we can calculate the current share price by using following formula:
Current share price = Dividend × Present value of annuity for 8 years
Where, Present value of Annuity for 8 years = = (1 - (1+r)^-t) ÷ r
= (1 - (1+12%)^-8) ÷ 12%)
= (( 1 - 0.40388322797) ÷ 0.12)
= $4.967639766916667 or $4.97
So, by putting the value, we get
Current share price = $7.40 × $4.97
= $36.778
Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem.
December 31, 2015
To the friendly student tax preparer:
Hi, it’s Shady Slim again. I just got back from my 55th birthday party, and I’m told that you need some more information from me in order to complete my tax return. I’m an open book! I’ll tell you whatever I think you need to know.
Let me tell you a few more things about my life. As you may recall, I am divorced from my wife, Alice. I know that it's unusual, but I have custody of my son, Shady, Jr. The judge owed me a few favors and I really love the kid. He lives with me full-time and my wife gets him every other weekend. I pay the vast majority of my son's expenses. I think Alice should have to pay some child support, but she doesn't have to pay a dime. The judge didn't owe me that much, I guess.
I had to move this year after getting my job at Roca Cola. We moved on February 3 of this year, and I worked my job at Roca Cola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house. I left a little bit early to go on a house-hunting trip that cost me a total of $450. I hired a moving company to move our stuff at a cost of $2,300. Junior and I got a hotel room along the way that cost us $45 (I love Super 8!). We spent $35 on meals on the way to our new home. Oh yeah, I took Junior to a movie on the way and that cost $20.
Can you believe I’m still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year.
Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not reimbursed by the lawsuit or by my insurance. I incurred a total of $20,000 in medical expenses, and I was only reimbursed for $11,000. Good thing I can write off medical expenses, right?
I contributed a lot of money to charity this year. I’m such a nice guy! I gave $1,000 in cash to the March of Dimes. I contributed some of my old furniture to the church. It was some good stuff! I contributed a red velvet couch and my old recliner. The furniture is considered vintage and is worth $5,000 today (the appraiser surprised me!), even though I only paid $1,000 for it back in the day. When I contributed the furniture, the pastor said he didn’t like the fabric and was going to sell the furniture to pay for some more pews in the church. Oh well, some people just have no taste, right? Roca Cola had a charity drive for the United Way this year and I contributed $90. Turns out, I don’t even miss it, because Roca Cola takes it right off my paycheck every month . . . $15 a month starting in July. My pay stub verifies that I contributed the $90 to the United Way. Oh, one other bit of charity from me this year. An old buddy of mine was down on his luck. He lost his job and his house. I gave him $500 to help him out.
I paid a lot of money in interest this year. I paid a total of $950 in personal credit card interest. I also paid $13,000 in interest on my home mortgage. I also paid $2,000 in real estate taxes for my new house.
A few other things I want to tell you about last year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $100 in union dues this year. I had to pay $1,000 for new suits for my job. Roca Cola requires its managers to wear suits every day on the job. I spent a total of $1,300 to pay for gas to commute to my job this year.
Oh, this is pretty cool. I've always wanted to be a firefighter. I spent $1,000 in tuition to go to the local firefighter's school. I did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would be coming back to me.
That should be all the information you need right now. Please calculate my taxable income and complete pages 1 and 2 of Form 1040 (through taxable income, line 43) and Schedule A. You're still doing this for free, right?
Can you calculate the taxable income?
The taxable income that Shady Slim would have from this tax situation is: $144,210.
What is the taxable income?Taxable income is the amount that should be legally remitted to the government after subtracting expenses. The formula for taxable income is:
Taxable Income = Gross Income - (Moving Expenses + Student Loan Interest + Charitable Contributions + Interest Expenses + Theft Loss + Union Dues + Work-Related Expenses + Tuition)
So, when we account for gross income and the expenses by Shady Slim, we would have the taxable income as:
Taxable Income = $172,900 - ($2,850 + $900 + $6,590 + $13,950 + $900 + $100 + $2,300 + $1,000)
= $172,900 - $28,690
= $144,210
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Shady Slim's taxable income is calculated by subtracting his eligible itemized deductions from his adjusted gross income (AGI). His AGI is $172,900, and the eligible deductions total up to $35,740. Thus, his taxable income is $137,160.
Explanation:Shady Slim's adjusted gross income (**AGI**) is $172,900, his total salary. This is important as it is the starting point for determining his tax situation.
The **itemized deductions** that Shady can claim are:
$1,250 for student loan interest ($900 is the max without considering other factors such as income, with $2,500 the overall limit if all conditions are met) $9,000 medical and dental expenses ( only the portion that exceeds 10% of AGI is deductible which is $20,000 - $11,000 - ($172,900 * 10%) = $9,000) $6,090 charitable contributions (cash to church + fair market value of donated goods + money given to friend + money donated through employer) $15,950 for mortgage interest and real estate taxes $1,000 for theft loss $1,000 for union dues $450 for moving expenses (house-hunting cost)
Total deductions: $35,740.
It's notable that the tuition paid for firefighter’s school and wardrobe expenditure for his job cannot be claimed as Shady's profession is not firefighting and clothing that is suitable for everyday wear even if it’s required for work is not deductible
Shady Slim's taxable income: $172,900 (AGI) - $35,740 (itemized deductions) = $137,160.
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Pamela is also a saver. She sets aside $200 per month during her 40 year career. She invests in the US stock market* through an index fund that averages a 7% return over this 40 year period. How much is her retirement account worth?
Answer:
$32,183.77
Explanation:
The value of her investment at the end of the 40th year will be equal to the accumulated sum pf the monthly payment compounded at the 7% rate of return.
This is given as follows:
FV = A × (1 -(1+r)^(-n))/r
A- monthly payment, r- monthly interest rate, n- number of months
A- 200, r- 7%/12 =0.583%, n = 40 × 12 = 480
FV = 200× (1- (1.00583)^(-480))/0.00583
=32,183.767
= $32,183.77
Using the future value of a series formula, the estimated value of Pamela's retirement account after 40 years with a $200 monthly investment and a 7% return rate is approximately $1,068,481.
Explanation:Pamela's investment can be calculated using the future value of a series formula. This formula is FV = P * [(1 + r)^nt - 1] / r, where:
P = $200 (the amount she sets aside per month) r = 7% or 0.07 annual rate (divided by 12 to get a monthly rate, or 0.07 / 12 = 0.005833), n = 12 (number of times the interest is compounded per year), t = 40 (number of years she is saving).
Substitute these values into the formula, it becomes: FV = $200 * [(1 + 0.005833)^(12*40) - 1] / 0.005833. After doing the math, the value of Pamela's retirement account is approximately $1,068,481.
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he manager of the student center cafeteria, has added pizza to the menu. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. She anticipates a weekly demand of 10 pizzas. The cafeteria is open 45 weeks per year. The ordering cost if $15 and the holding cost is $0.40 per pizza per year. The pizza vendor has a one week lead-time and the manager wants to maintain 1 pizza for safety stock. What is the optimal reorder point
Answer:
The correct answer is 11 pizza.
Explanation:
According to the scenario, computation of the given data are as follows:
Weekly demand = 10 pizzas
Safety stock = 1 pizza
Let cafeteria works 5 days a week, then daily demands = 10 ÷ 5 = 2 pizza per day
Lead time = one week = 5 days working.
So, we can calculate the optimal reorder point by using following formula:
Optimal reorder point = (Daily demand × Lead time) + Safety stock
By putting the value, we get
Optimal reorder point = ( 2 × 5) + 1
= 10 + 1
= 11 pizzas.
Zeta Gaming Company has an opportunity to purchase a video game phone app that will cost $150,000. Zeta expects the demand for the app to start strong but to diminish as people tire of the game. The expected cash inflows are as follows: Year 1 Year 2 Year 3 Year 4 Year 5 $60,000 $50,000 $40,000 $30,000 $20,000 If Zeta uses the cumulative approach the payback period for this investment is
Answer:
Payback period for this invest = 3 years
Explanation:
According to the scenario, computation of the given data are as follows:
Cost = $150,000
So, cumulative cash flow can be calculated as follows:
Year Cash flows Cumulative cash flows
0 ($150,000) ($150,000 )
1 $60,000 ($90,000 )
2 $50,000 ($40,000 )
3 $40,000 $0
4 $30,000 -$30,000
5 $20,000 -$50,000
As this shows in year 3 the cumulative cash flow becomes 0.
Hence, the payback period is 3 years.
= 3 years
The government of Sharonville is deep in debt, and consequently enacts a city ordinance that requires citizens to do volunteer work for the city once per week. Such and act would be in accordance with the __________ school of jurisprudential thought.
Legal Realism
Command
Irrational Forces
Sociological
Law and Economics
the correct answer is Sociological.The ordinance requiring volunteer work is aligned with the Sociological school of jurisprudential thought, which emphasizes laws that address societal needs and promote community welfare.
The government of Sharonville enacts a city ordinance requiring citizens to do volunteer work once per week due to its deep debt. This act aligns with the Sociological school of jurisprudential thought. The Sociological perspective emphasizes that law should reflect and serve societal needs, promoting community welfare, and ensuring that individuals contribute to the common good. By mandating volunteer work, the ordinance aims to address the city's economic challenges through collective citizen effort, resonating with the sociological viewpoint on law and society.
When Crossett Corporation was organized in January 2018, it immediately issued 4,000 shares of $50 par, 6 percent, cumulative preferred stock and 50,000 shares of $20 par common stock. Its earnings history is as follows: 2018, net loss of $35,000; 2019, net income of $125,000; 2020, net income of $215,000. The corporation did not pay a dividend in 2018. Required How much is the dividend arrearage as of January 1, 2019
Answer:
The correct answer is $12,000.
Explanation:
According to the scenario, computation of the given data are as follow:-
Issued Shares = 4,000
Shares Per Value = $50
Percentage of Cumulative Preferred Stock = 6%
We can calculate the Required Dividend Arrearage by using following formula:-
As Of January 1,2019 Arrearage Dividend = Issued Share × Value Of Per Share × % Of Cumulative Preferred Stock
By putting the value, we get
= 4000 × $50 × 6%
= $200,000 × 6/100
= $12,000