Answer: forced distribution method
Explanation:
JUST DID IT
Suppose that a firm's only variable input is labor, and the constant hourly wage rate is $20 per hour. The last unit (hour) of labor hired enabled the firm to increase its hourly production from 250 units to 251 units. What was the marginal cost of the 251st unit of output?
Answer:
20
Explanation:
The marginal cost refers to the cost a company has when an additional unit is manufactured and it is calculated using the formula:
Marginal Cost= change in costs / change in quantity
Change in cost in this case is 20 as the last unit of labor hired costs an additional 20 per hour.
Change is quantity is 1 as the hourly production increases from 250 to 251 units.
Marginal Cost=20/1
Marginal Cost= 20
The marginal cost of the 251st unit of output was 20.
Plaintiffs purchased state lottery tickets and were winners along with 76 others. The state had advertised that $1,750,000 would be the prize, but it distributed only $744,471. Plaintiff sued the lottery director, alleging fraud in the conduct of the lottery. The state lottery law provides for administrative hearings upon complaints charging violations of the lottery law or of regulations thereunder. It also allows any party adversely affected by a final order of the administrative agency to seek judicial review. Must the plaintiffs exhaust their administrative remedies? Why or why not?
Answer:
yesBecause the state lottery provides for administrative hearingsExplanation:
The plaintiffs must exhaust their administrative remedies before a court of law would grant them the opportunity to pursue a legal action against the lottery board because it might a breach in communication or administration from the lottery board or the lottery director and the plaintiffs should seek to resolve the issues without having to seek a legal action but through administrative remedies and procedures which more swift in resolving such issues
Yes, the plaintiffs must first exhaust their administrative remedies before going to court. This involves filing a complaint with the administrative agency, allowing them to investigate and potentially correct the issue. Only after this step can they seek judicial review.
Explanation:Based on the provided information, it can be inferred that the plaintiffs would need to exhaust their administrative remedies before proceeding to legal litigation. This is because the state lottery law provides for administrative hearings for complaints alleging violations of the lottery law. Essentially, the plaintiffs must first file a complaint with the administrative agency responsible for the lottery and allow them to investigate and possibly remedy the situation. Only if the plaintiffs are unsatisfied with the final order of the administrative agency may they seek judicial review. This process is known as 'exhausting administrative remedies' and is generally a prerequisite before court proceedings. It helps to ensure that administrative agencies have the opportunity to correct their own errors and applies their expertise where appropriate.
The requirement to exhaust administrative remedies is also part of the rule of law that respects the separation of powers. In this context, the disputes would first have to be directed at the administrative level, which is the branch of government responsible for implementing and managing state programs such as lotteries. Turning to the administrative system allows for potential errors to be corrected without the immediate need for judicial intervention.
However, it's important to notate that exhaust administrative remedies rules vary by jurisdiction, and exceptions may exist depending on the specifics of the case.
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Grady Corp. is considering the purchase of a new piece of equipment. The equipment costs $51,500, and will have a salvage value of $5,040 after six years. Using the new piece of equipment will increase Grady’s annual cash flows by $6,190. Grady has a hurdle rate of 12%. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables.) a. What is the present value of the increase in annual cash flows? (Round your answer to 2 decimal places.) b. What is the present value of the salvage value? (Round your answer to 2 decimal places.) c. What is the net present value of the equipment purchase? (Negative value should be indicated by a minus sign. Round your intermediate calculation and final answer to 2 decimal places.) d. Based on financial factors, should Grady purchase the equipment? Yes No
Answer:
a) Present value of the increase in annual cash flow = $25,449.57
b) Present value of salvage = $2,553.41
c) Net present value of equipment purchased = -$23,497.02
d) Item should not be purchased.
Explanation:
As per the data given in the question,
a) Present value of the increase in annual cash flow = $6,190 × 4.1114
= $25,449.57
b) Present value of salvage = $5,040 × 0.50663
= $2,553.41
c) Net present value of equipment purchased = Cash inflow - initial investment
= ($25,449.57 + $2,553.41) - $51,500
= -$23,497.02
d) Since Net present value of equipment is negative therefore this equipment should not be purchased.
An employee earns $6,350 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 of earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $216 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $184 and contributes $92 to a retirement plan each month. What is the amount the employer should record as payroll taxes expense for the employee for the month of January
The employer should record a payroll taxes expense of $866.78 for the month of January, derived from calculating and summing up Social Security tax, Medicare tax, FUTA and SUTA taxes for the employee's earnings.
Explanation:To determine the amount the employer should record as payroll taxes expense for the month of January, one must consider Social Security tax, Medicare tax, federal (FUTA) and state (SUTA) unemployment taxes. The employee's gross earnings for the month of January are $6,350.
The Social Security tax is 6.2% of gross earnings ($6,350 * 0.062 = $393.70) and Medicare tax is 1.45% of all earnings ($6,350 * 0.01450 = $92.08).
The FUTA and SUTA rates are applied to the first $7,000 of employee's pay. Therefore, if this is January and the employee has not yet hit that threshold, calculate FUTA tax (0.6%) as $6,350 * 0.006 = $38.10, and SUTA at 5.4% as $6,350 * 0.054=$342.90.
Now, add all of these totals together to get: $393.70 + $92.08 + $38.10 + $342.90 = $866.78.
So the amount the employer should record as payroll taxes expense for the month is $866.78.
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The net loss reported on the income statement for the current year was $10,000. Depreciation was $40,000. Accounts receivable and inventories decreased by $12,000 and $35,000, respectively. Treasury stock was purchased for $50,000, and prepaid expenses and accounts payable increased by $1,000 and $8,000, respectively. Based on this information, how much cash was provided by operating activities
Answer:
$104,000
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
An increase in assets other than cash is an outflow while an increase in liabilities is an inflow. Depreciation and other non-cash expenses deducted in the income statements are added back while the non-cash income such gain on asset are deducted from net income.
As such,
Cash provided by operating activities
= $10,000 + $40,000 + $12,000 + $35,000 - $1,000 + $8,000
= $104,000
Answer:
Cash was provided by operating activities is $84,000.
Explanation:
To arrive at the cash was provided by operating activities, we need to prepare an extract of statement of cash flows (operating activities) as follows:
Statement of cash flows (extract)
Net loss ($10,000)
Add: Depreciation $40,000
Decrease in accounts receivable $12,000
Decrease in inventories $35,000
Increase in accounts payable $8,000
Less: Increase in prepaid expenses $1,000
Net cash flows from operating activities $84,000
Note that the purchase of treasury stock of $50,000 belongs to cash flows from financing activities.
On June 1, 2020, Smith sold equipment to Landing Inc. in exchange for a zero-interest bearing note with a face value of $110,000, with payment due in 12 months. The fair value of the equipment on the date of sale was $100,000.
(a) The amount of revenue to be recognized on this transaction in 2020 is ___________.
Answer:
$100,000 sales revenue and $5,833 interest revenue
Explanation:
The computation is shown below:
For interest revenue
= (Face value - fair value of the equipment) × number of months ÷ total number of months in a year
= ($110,000 - $100,000) × 7 months ÷ 12 months
= $5,833
The seven months is calculated from June 1 to December 31
And, the fair value of the equipment on the sale date i.e $100,000 is also recognized
Dec. 13 Accepted a $15,000, 45-day, 7% note in granting Miranda Lee a time extension on her past-due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Lee note. Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Mar. 3 Accepted a $9,000, 10%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. 17 Accepted a $7,000, 30-day, 8% note in granting H. Cheng a time extension on his past-due account receivable. Apr. 16 H. Cheng dishonored his note. May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. June 1 Received the Tomas payment for principal and interest on the note dated March 3.
This business finance question involves understanding the concepts of notes receivables, interest calculations, and time value of money. It specifically references transactions with notes receivable, including time extensions on past due accounts, calculating accrued interest, and handling dishonored notes or written-off accounts. The interest on notes can be calculated using the formula: Interest = Principal x Rate x Time.
Explanation:The subject of this question revolves around notes receivable and interest calculations in business finance. A few key transactions involving notes receivable are provided. First, Miranda Lee is given a time extension on her past due account, which means she defaults on a loan with a $15,000 principal amount and a 45-day term at a 7% interest rate. The accrued interest is then calculated and added to the principal when she makes her payment. The second and third scenarios involve similar transactions with the Tomas Company and H. Cheng. The primary difference with H. Cheng's note is that it is dishonored, which means he defaults on his payment and the debt is written off. Interest on these loans can be calculated using the formula: Interest = Principal x Rate x Time, where Time is the portion of the year the note is outstanding, Rate is the note's interest rate, and Principal is the note's face value. Some concepts involved are future value, present value, interest rates and time value of money.
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Final answer:
Accounts Receivable, accrued interest, dishonored notes.
Explanation:
Accounts Receivable represent amounts owed to a company for goods or services provided on credit terms. When a note is accepted, it signifies a formal promise to pay a specific amount at a future date with interest.
Accrued interest is the interest that has accumulated on a note but has not been paid or recorded yet. Adjusting entries are made to recognize this interest as it is earned over time.
When a note is dishonored, it means that the maker of the note fails to make the required payment, leading to potential financial implications for the payee.
In some industries, the labor productivity of union workers exceeds the labor productivity of nonunion workers. Which of the following might help explain the higher productivity of union workers? Check all that apply Higher union wage rates allow companies to attract more low-skilled workers. Labor union enable workers to voice concerns about working conditions and safety issues, making them more confident and less intimidated by their employers and thus more productive. Unions are always more efficient than firms at discerning which workers are highly skilled and which are not. Labor unions foster a more stable work force, decreasing turnover.
Answer:
Labor union enable workers to voice concerns about working conditions and safety issues, making them more confident and less intimidated by their employers and thus more productive.
Labor unions foster a more stable work force, decreasing turnover.
Unions are always more efficient than firms at discerning which workers are highly skilled and which are not.
Explanation:
Labor unions improve productivity by improving employee satisfaction, decreasing turnover and attracting trianed skilled labor
Final answer:
Higher union wage rates, improved work conditions, workforce stability, job training, and apprenticeship programs all contribute to the higher productivity of union workers compared to nonunion workers.
Explanation:
Union workers might exhibit higher productivity than their nonunion counterparts due to several factors that unions bring into the workplace dynamic. First and foremost, higher union wage rates may incentivize workers to perform better because they feel that their efforts are being more fairly compensated, leading to an increase in productivity. Moreover, unions advocate for better work conditions and safety, which can enhance worker confidence and productivity.
In addition to providing a greater sense of security to workers, labor unions contribute to workforce stability by reducing turnover, which means that employers spend less on training and hiring. A stable workforce also accumulates years of experience, which can directly translate to better productivity. Furthermore, many unions offer valuable job training and apprenticeship programs that help workers develop their skills, allowing them to work more efficiently and effectively.
Firms may also adjust their production methods based on union demands for higher wages by investing in more physical capital and less labor, thereby inadvertently increasing labor productivity. This adaptation may not necessarily reflect the individual productivity of union workers but rather an improvement in the overall process.
When developing a test, training, and exercise program for the pandemic plan, organizations should ensure that: A. All operations can continue with dramatically fewer people B. Essential functions can be completed even if Information Technology systems fail C. Pandemic plans can work for up to 30 days without interruption D. Essential personnel know that they are expected to work even if they get the flu
Answer:
The answer A) All operations can continue with dramatically fewer people
Explanation:
In case of Pandemic planning, organization will have to work with a much small workforce. This would mean that 'business as usual' might not always be possible but with the help of robust information technology infrastructure, work could continue.
Option B is wrong since , a well-performing IT infrastructure is the backbone of every pandemic testing and training. Without which, a modern workforce will not be able to perform even 'essential' duties.
Option C and D are wrong since these are both dangerous and will only increase the likeliness of others getting sick.
The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,057. A total of 37 direct labor-hours and 194 machine-hours were worked on the job. The direct labor wage rate is $24 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $33 per machine-hour. The total cost for the job on its job cost sheet would be:
Answer:
Total cost of Job = $9,347
Explanation:
The total cost of Job 323 would be the sum of the direct costs and the manufacturing overheads
Total cost = Direct material + direct labour + Overhead
The overhead absorption rate would be used to charge overhead to Job 323.
The absorbed overhead = OAR × actual machine hours used for Job 33
Total cost = 2,057 + (24× 37) + (194× 33) = $9,347
Total cost of Job = $9,347
The table shows the terms of a fixed-rate mortgage.
Which formula should be used to correctly calculate the
monthly mortgage payment?
Component
Cost
[R(1 - R)"
(1 + R)?
(P) Principal
$200,000
[R(1 + R)"]
(R) Monthly interest rate
.4%
1 + R)
(n) Total number of
monthly payments (30-
year term)
360
[(1 + R"
M=pl
p[R(1 + R)"
(N + R)
(M) Monthly payment
$1059.85
Answer: attached picture.
Answer:
Its B :)
Explanation:
Estimating Cost of Capital Measures US Steel has $3.16 billion in total debt (which approximates its market value). Interest expense for the year was about $214.0 million. The company’s market capitalization is approximately $1.17 billion, its market beta is 2.65, and its assumed tax rate is 37%. Assume that the risk-free rate equals 2.5% and the market premium equals 5%
Rounding Instructions: Do not round until your final answers. Round answers to one decimal place.
(a) Estimate US Steel's cost of debt capital. Answer______ %
(c) Estimate US Steel's cost of equity capital. Answer________ %
(d) Using your rounded answers from (a) and (c) above, estimate US Steel's weighted average cost of capital.
Answer:
After cost of debt is 4.27%
Cost of equity of 15.75%
WACC is 7.37%
Explanation:
US Steel cost of debt can be ascertained dividing the interest expense by the total value of debt since that gives the percentage of the debt paid as coupon interest to bondholders;
cost of debt =$214.0million/$3,160.million=6.77%
after tax cost of debt(Kd) =7.13%*(1-0.37)=4.27%
Cost of equity can be computed using the below formula:
Ke=Rf+beta*(Mp)
Rf is the risk free rate of 2.5%
Mp is the market premium of 5%
beta is 2.65
Ke=2.5%
Ke=2.5%+(2.65*5%)=15.75%
WACC=Ke*E/V+Kd*D/V
E is weight of equity of 1.17
D is the weight of debt 3.16
V is the sum of the weights (1.17+3.16)=4.33
WACC=(15.75%*1.17/4.33)+(4.27%*3.16/4.33)=7.37%
The French Government runs a budget deficit and finances it by borrowing $20 billion. Use the loanable fund model to show the decline in public savings and decline in investments (crowding out).
Answer: Please refer to explanation
Explanation:
The Loanable Find model attempts to explain the movement in interest rate as a function of supply and demand.
Now, if more people are looking for loans (demand increases) and supply remains the same, the demand curve is forced to shift to the right. This increases the Equilibrium interest rate.
This increased Interest rate then leads to a CROWDING OUT effect because the private sector will reduce it's borrowing as it cannot borrow at such high rates.
This is what will happen should the French government borrow such a large amount especially if the economy is operating at FULL CAPACITY. They will INCREASE the demand for loans and therefore CROWD OUT the private sector.
I have included a graph to explain it more.
If you have need for any clarification do react or comment.
The French government's borrowing to finance a budget deficit can lead to a reduction in public savings and crowd out private investment, demonstrated through the loanable funds model where increased government demand for loanable funds raises interest rates and reduces the investment by private firms.
Explanation:When the French government runs a budget deficit and finances it by borrowing $20 billion, this process is illustrated using the loanable funds model. In this scenario, there is a decline in public savings due to the government's need to borrow funds to cover its deficit. This borrowing competes with private sector demand for loanable funds, resulting in an increase in interest rates.
The loanable funds model depicts that as the government enters the market to borrow, the demand curve for financial capital shifts to the right from Do to D1. With the increased competition for funds, the interest rates are driven up from 5% to 6%. This higher interest rate can crowd out private investment because firms may find it more expensive to borrow, thereby reducing their investment activities.
As interest rates rise, some private investments that were profitable at lower interest rates might not be undertaken, leading to a decrease in overall private investment. Over time, this effect can lead to decreased economic growth and potential inefficiencies in the allocation of resources.
On August 5, 2021, Famous Furniture shipped 40 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $350 each. The cost of shipping the dining sets amounted to $1,800 and was paid for by Famous Furniture. On December 30, 2021, the consignee reported the sale of 30 dining sets at $850 each. The consignee remitted payment for the amount due after deducting a 6% commission, advertising expense of $600, and installation and setup costs of $780. The total profit on units sold for the consignor is
Answer:
$10,290
Explanation:
Famous Furniture
Sales of Dining set $850 each
Less cost of each dining set $350 each
Balance $500
Sales 30×500
=$15,000
Hence:
$15,000– (30 ×$850)(.06) – $1,800 – $600 – $780
=$15,000-$1,530-$1,800-$600-$780
=$10,290
Therefore the total profit on units sold for the consignor is $10,290
Answer:
The total profit on units sold for the consignor is $ 6790
Explanation:
Famous Furniture
Sales (850*30) $ 25500
Goods Sent on Consignment 40 *350= $ 14000
Shipping Cost $ 1800
To Furniture Outlet,
Advertising Expenses 600
Installation Setup $ 780
Commission (6% of 25,500) 1530 18170
Profit on Consignment $ 6790
The Profit for the consignor will be $ 6790 after bearing all the expenses incurred both by the consignor and the consignee.
BHS Inc. determines that sales will rise from $300,000 to $500,000 next year. Assets are 70% of sales and liabilities are 30% of sales. BHS has a 10% profit margin and a 40% dividend payout ratio. What is the level of required new funds?
Final answer:
The level of required new funds for BHS Inc. is calculated by finding the differences between the increases in assets, increases in liabilities, and the dividends paid out from profits. For BHS Inc., this results in required new funds of $60,000.
Explanation:
The student is seeking to understand the level of required new funds for BHS Inc., given its projected increase in sales, asset and liability structure, profit margin, and dividend payout ratio. To calculate this, we must follow several steps.
Calculate the projected increase in assets and liabilities based on the new sales figure.
Determine the profits based on the new sales and profit margin.
Calculate the dividends to be paid out based on the profit and dividend payout ratio.
Finally, deduce the required new funds by subtracting both the increase in liabilities and dividends from the increase in assets. The remaining balance reflects the new funds required.
Let's break this down:
Projected increase in assets: $500,000 x 0.70 = $350,000 (new asset level) - $300,000 x 0.70 = $210,000 (current asset level) = $140,000 increase.
Projected increase in liabilities: $500,000 x 0.30 = $150,000 (new liability level) - $300,000 x 0.30 = $90,000 (current liability level) = $60,000 increase.
Projected profits: $500,000 x 0.10 = $50,000.
Dividends paid: $50,000 x 0.40 = $20,000.
Required new funds: $140,000 (increase in assets) - $60,000 (increase in liabilities) - $20,000 (dividends paid) = $60,000.
A regression analysis of 117 homes for sale produced the following regression equation, where price is in thousands of dollars and size is in square feet. regimage04 (a) What does the slope of the line say about housing prices and size? For every $1,000 increase in price of a house, the size is predicted to increase by 0.061 square foot. For every additional square foot of area of a house, the price is predicted to increase by $61. For every additional square foot of area of a house, the price is predicted to increase by $0.061. For every $1 increase in price of a house, the size is predicted to increase by 61 square feet. (b) A realtor shows a potential buyer a 1600 square-foot house, saying that the asking price is $4100 less than what one would expect to pay for a house of this size. What is the asking price of this house and what is the residual? The asking price is $145410 and the residual is a positive $4100 . The asking price is $145410 and the residual is a negative $4100 . The asking price is $141310 and the residual is a positive $4100 . The asking price is $141310 and the residual is a negative $4100 .
Answer:
(a). For every additional square foot of area of a house, the price is predicted to increase by $61
(b) The asking price is $145410 and the residual is a negative $4100
Explanation:
As per the data given in the question,
a) From regression equation Slope = 0.061
So slope = (0.061 × 1,000) ÷ 1 sq. ft.
= $61 per sq. ft.
For every additional square foot area price is increased by $61
b) If size of the house is = 1600 square foot then
Price = 47.81 + 1600*0.061
=$145,410
The asked price is $4,100 less than estimated price and residual is not positive
Hence,
Asking price = $145,410
Residual price = a negative $4,100
In 2020, Quapau Products introduced a new line of hot water heaters that carry a one-year warranty against manufacturerâs defects. Based on industry experience, warranty costs were expected to approximate 5% of sales revenue. First-year sales of the heaters were $390,000. An evaluation of the companyâs claims experience in late 2021 indicated that actual claims were less than expectedâ4% of sales rather than 5%.
Assuming sales of the heater in 2021 were $450,000 and warranty epanditure in 2021 totaled $12,000, what is 2021 warranty expenses?
Answer:
$18,000
Explanation:
The computation of the warranty expense for the year 2021 is shown below:
Estimated warranty expense = Actual Sales × Actual claims percentage
= $450,000 × 4%
= $18,000
We simply multiplied the actual sales with the percentage of the actual claim so that the estimated warranty expense could come and the same is shown above
The average individual in a country earns an annual salary of $60,000, of which $24,000 is spent on housing, $10,800 on food, $10,800 on transportation, and $14,400 on other goods and services. Suppose the government in this country mandates that all salaries and the prices of all goods and services be reduced by 40 percent. a. How much does the average individual now earn
Answer:
The answer is $36,000.
Explanation:
If the average individual earns an annual salary of $60,000 and the government reduces all salaries and prices by 40%, then the salary of the average individual annualy decreases by $24,000 and comes down to $36,000 per year. But since the costs of services and prices of goods recude by 40% as well, it doesn't change the real salary.
I hope this answer helps.
The average individual now earn is $36,000.
The calculation is as follows:= Annual salary × (1 - reduced percentage)
= $60,000 × (1 - 0.40)
= $60,000 × 0.60
= $36,000
Therefore we can conclude that The average individual now earn is $36,000.
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Suad Alwan, the purchasing agent for Dubai Airlines, is interested in determining what he can expect to pay for airplane number 4 if the third plane took 20,000 hours to produce. What would Alwan expect to pay for plane number 5? Number 6? Use an 85% learning curve and a $40-per-hour labor charge.
Answer:
Alwan expect to pay for airplane 4= $747818.48
Explanation:
given data
expect to pay airplane = 4
3rd plane produce = 20,000 hours
learning curve = 85%
solution
As here logarithmic approach allow get labor for any unit, TN, as
TN = T1(Nb)
here TN is time for the Nth unit and T1 is hours to produce the first unit
so
b = (log of the learning rate) ÷ (log 2) = slope of the learning curve
so
T3 = T1(3log(0.85)÷log2)
so we get
So Alwan expect to pay for airplane 4 = $747818.48
The amounts that Suad Alwan would expect to pay for the following airplanes are as follows:
Airplane # 4 = $680,000
Airplane # 5 = $578,000
Airplane # 6 = $491,320
Data and Calculations:
Number of labor-hours to produce plane # 3 = 20,000 hours
Learning curve = 85%
Labor charger per hour = $40
Number of labor-hours to produce plane # 4 = 17,000 hours (20,000 x 85%)
Number of labor-hours to produce plane # 5 = 14,450 hours (17,000 x 85%)
Number of labor-hours to produce plane # 6 = 12,283 hours (14,450 x 85%)
Labor cost of plane # 4 = $680,000 (17,000 x $40)
Labor cost of plane # 5 = $578,000 (14,450 x $40)
Labor cost of plane # 6 = $491,320 (12,283 x $40)
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Samuel, Inc. has Accounts Receivable of $260,000 and an Allowance for Doubtful Accounts of $16,000. If it writes-off a customer account balance of $1,600, what is the amount of its net accounts receivable
Answer:
Net accounts receivable before write-off = $244,000
Net accounts receivable after write-off = $229600
Explanation:
given data
Accounts Receivable = $260,000
Allowance for Doubtful Accounts = $16,000
writes-off customer account balance = $1,600
solution
we get her Net accounts receivable that is express as
Net accounts receivable = Accounts Receivable - Allowance for Doubtful Accounts .....................1
so here before write-off Net accounts receivable is
Net accounts receivable = $260,000 - $16,000
Net accounts receivable = $244,000
and
after write-off
writes-off a customer account balance entry as
Allowance Doubtful Account = $1,600 Debit
Accounts Receivable = $1,600 Credit
so
Net accounts receivable after write-off
Net accounts receivable = $244,000 - ($16000 - 1600 )
Net accounts receivable = $229600
Why would an economist choose either the neoclassical perspective or the Keynesian perspective, but not both?Why would an economist choose either the neoclassical perspective or the Keynesian perspective, but not both?
Answer:
This is because the concepts and approaches to economic issues differ.
Explanation:
Too begin with, it is important to understand the concept of neoclassical perspective and Keynesian perspective.
Neoclassical perspective hinges on the fact that demand and supply as the Filip behind production, pricing, productivity and consumption pattern of end users and thus a factor towards economic growth and productivity. It simply allows for market forces to interplay.
Keynesian perspective, on the other hand, hinges on the fact that the demand is the singular factor behind economic growth and prosperity. Thus, an economy driving towards growth and development should increase its aggregate demand.
In effect, and going by the above definitions, an economist will thus only choose one simply because the two perspectives differ in approach and concepts.
While one considers both aggregate demand and aggregate supply as a tool towards economic growth and prosperity, the other is strictly conservational, and believes the authority should stimulate only aggregate demand as a tool towards economic growth and development.
The choice between the Keynesian and Neoclassical perspectives depends on an economist's emphasis on aggregate supply or on immediate economic stimulation, respectively. It's akin to a balancing act between the two viewpoints' strengths and weaknesses.
Explanation:An economist would choose between the neoclassical perspective and the Keynesian perspective based on strengths and weaknesses inherent in each viewpoint. The neoclassical perspective places emphasis on aggregate supply and believes that long-term productivity growth determines potential GDP. They advocate for a limited role in active stabilization policy as they believe the economy will return to full employment after changes in demand. On the other end, the short-term Keynesian perspective focuses on resolving immediate community economic issues which may, unfortunately, lead to long-term economic instability. Therefore, deciding between these two perspectives can be likened to a balancing act, trying to leverage the strengths of one approach while mitigating the weaknesses of the other.
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Compuvac Company just completed its initial forecasts of next year's financial statements using the projected balance sheet method. The firm determined that it needs $4 million in new debt, which can be issued at par with a 10 percent annual coupon. Additionally, the firm can sell 500,000 shares of new common equity, which will net $18.10 per share. Next year's expected dividend is $0.48 per share. After accounting for the financing feedbacks associated with raising the required funds, Compuvac expects its taxes to be $160,000 lower than were reported in the initial forecasts. Given this information, what should Compuvac find the change to be in the addition to retained earnings that is reported in the income statement that was initially forecasted after the financing feedbacks are included
Answer:
$4 million in new debt at 10% annual coupon
500,000 shares x $18.10
new year's expected dividend = $0.48
taxes will decrease by $160,000
Compuvac will need to pay $4,000,000 x 10% = $400,000 in interests for the bonds that it plans to issue new year. That is why their taxes will decrease by $160,000 = total debt payments x tax rate = $400,000 x 40%
It will also need to pay $0.48 x 500,000 shares = $240,000 in additional dividends.
The increase in additional funds needed (AFN) = total interest paid for the bonds - less taxes + additional dividends = $400,000 - $160,000 + $240,000 = $480,000
RecRoom Equipment Company received an $8,000, six-month, 6 percent note to settle an $8,000 unpaid balance owed by a customer. a. The note is accepted by RecRoom on November 1, causing the company to increase its Notes Receivable and decrease its Accounts Receivable. b.RecRoom adjusts its records for interest its earned to its December 31 year-end. c.RecRoom receives the interest on the note's maturity date. d.RecRoom receives the principal on the note's maturity date.
Answer:
(a) The required journals are:
Debit Note receivable $8,000
Credit Accounts receivable $8,000
(To record note receivable)
(b) Adjustment for interest its earned to its December 31 year-end:
Debit Interest receivable $80
Credit Interest revenue $80
(To record interest receivable on notes as at 31 Dec)
(c) Receipt of interest on the note at maturity
Debit Cash $240
Credit Interest receivable $240
(Being receipt of interest on note at maturity)
(d) Receipt of principal on the note at maturity
Debit Cash $8,000
Credit Note receivable $8,000
(Being receipt of note principal at maturity)
Explanation:
Note is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.
Interest revenue on the note is calculated as: Principal x Interest Rate x Time
The total interest revenue is $8,000 x 6%/12 x 6 months = $240.
Monthly interest revenue is therefore $240 / 6 months = $40.
Total interest as at December 31 (Nov 1 - Dec 31): $40 x 2 months = $80.
Marco traveled across three states to shop at Tiffany's to buy his girlfriend, Jana, a present. This is the only Tiffany's store in the entire region. The degree of channel coverage for Tiffany's is: Group of answer choices Intensive Exclusive Transactional Logistical Speed
Answer:
Exclusive
Hope this helps :)
Answer:
The correct answer is letter "B": Exclusive.
Explanation:
The Level of Distribution Coverage refers to the scope a company sets for the reach of its product. The degree of coverage will depend on the type of goods offered and the location of the target market. Those distribution levels could be of mass coverage, selective coverage, and exclusive coverage.
Exclusive coverage distribution is selected when offering high-end products. As these goods tend to be expensive, the likelihood of being regularly purchased decreases what allows the company to have a few distribution centers providing the good to a limited number of stores usually located in areas where people with high buying power live.
After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula Actual Cost in March Utilities $20,600 + $0.10 per machine-hour $ 24,200 Maintenance $40,000 + $1.60 per machine-hour $ 78,100 Supplies $0.30 per machine-hour $ 8,400 Indirect labor $130,000 + $0.70 per machine-hour $ 149,600 Depreciation $70,000 $ 71,500 During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March.
Question:
BEGINNING PART OF THE QUESTION
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.
Answer:
Spending Variance = $1000 Unfavourable
Activity Variance = $10,800 Favourable
ANSWERS AND EXPLANATIONS OF THE ACTIVITY VARIANCE AND SPENDING VARIANCE SHOWN IN THE ATTACHMENT.
Refer to the attachment for solution. Thanks
Packard Corporation transferred its 100 percent interest to State Company as part of a complete liquidation of the company. In the exchange, Packard received land with a fair market value of $427,500. Packard's basis in the State stock was $625,000. The land had a basis to State Company of $535,000. What amount of loss does State recognize in the exchange and what is Packard's basis in the land it receives
Answer:
$107,500
Explanation:
There is No loss recognized by State and a basis in the land of $535,000 to Packard.
The State does not recognize the loss of $107,500 because the liquidation is tax-deferred to Packard. Packard's basis in the land is equal to State's basis in the land.
Answer:
No loss or gain is recognized by State Company and Packard's basis in the land will be $535,000
Explanation:
State Company does not have to recognize any loss or gain regarding the distribution of the land. Packard's basis for the land will be equal to State's basis = $535,000.
Since the liquidation involves 100% of the company's stocks, section 332 applies. This means that no gain or loss must be recognized by State Company.
The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks. What is the "adjusted cash balance" at June 30?
Answer:
$3,093
Explanation:
Hensley, Inc.
Bank Reconciliation Statement
Month Ended June 30
Balance as Hensley, Inc. record $3,100
Less: Service Charges $7
Adjusted Cash Balance $3,093
Cash Balance as per Bank Statement $3,900
Add: Deposit in Transit $700
Less: Outstanding checks* $1,507
Adjusted Cash Balance $3,093
*Outstanding Checks = Balance as per Bank Statement + Deposit in Transit - Adjusted Cash Balance
Outstanding Checks = $3,900 + $700 - $3,093
Outstanding Checks = $1,507
The adjusted cash balance at June 30 can be calculated by adding the deposit in transit, deducting the bank service charge, and deducting the outstanding checks.
Explanation:The adjusted cash balance at June 30 can be calculated by adjusting the Cash account balance in the ledger to reconcile it with the bank statement balance.
A $700 deposit in transit should be added to the Cash account balance, as it represents a deposit made by Hensley, Inc. that has not been recorded by the bank yet.The $7 bank service charge should be deducted from the Cash account balance, as it represents a fee charged by the bank.Outstanding checks should also be deducted from the Cash account balance, as they represent checks issued by Hensley, Inc. that have not yet been cleared by the bank.By applying these adjustments, we can calculate the adjusted cash balance at June 30.
Equivalent Units of Materials Cost The Rolling Department of Kraus Steel Company had 3,400 tons in beginning work in process inventory (80% complete) on October 1. During October, 55,900 tons were completed. The ending work in process inventory on October 31 was 2,800 tons (50% complete). What are the total equivalent units for direct materials for October if materials are added at the beginning of the process?
Answer:
Explanation:
The process adopted by Kraus steel is process cost. A process cost is used to assign cost when there is a mass production of identical goods with continuous and various stages of production
Input Conversion% Output
Opening inventory 3,400 80 2720
October process 55,900 100 55900
59,300 58620
Closing Inventory 2800 50 1400
Total units 62100 60020
The total equivalent units for direct materials for October in the Rolling Department of Kraus Steel Company are 58,700 equivalent units. Since materials are added at the beginning of the process, both completed units and ending work in process inventory are considered 100% for materials cost.
To calculate the total equivalent units for direct materials for October in the Rolling Department of Kraus Steel Company, we consider that materials are added at the beginning of the process, and therefore any tons of steel in process or completed will have 100% of the materials costs applied to them. To find the total equivalent units, we add the following: the tons completed and the ending work in process inventory (considering the completion percentage is irrelevant as the materials are added at the beginning).
The calculation is as follows:
Beginning work in process inventory: not applicable since materials are added at the beginning, so all the materials would have already been accounted for in the previous month's calculation.Units completed: 55,900 tons (since they are completed, they have 100% of the materials).Ending work in process inventory: 2,800 tons (again, since materials are added at the beginning, these are also considered 100% for materials cost).Therefore, the total equivalent units of materials cost for October are:
55,900 (completed) + 2,800 (ending WIP) = 58,700 equivalent units
Under profit regulation or average-cost pricing, the government will raise the price of output whenever a firm's costs increase, and lower the price whenever a firm's costs decrease. Over time, under the average-cost pricing policy, what will the local telephone company most likely do?
Answer:
Allow its cost to increase
Explanation:
Under Profit regulation or average-cost pricing, the government will require that the firm charge the price at which long-run average cost intersects the demand curve. If the firm lowers its costs, it will notrealize any economic profit because the government will require the firm to lower its price accordingly. If the firm's costs increase, the firm will not suffer economic losses because the government will allow the price to rise accordingly. As a result, the firm faces no incentive to lower costs and no penalty for allowing costs to rise. The firm's costs will likely creep upward over time
Answer:
Over time, the local Telephone company will most likely permit an increase in their company's cost.
Explanation:
The average cost pricing rule is a pricing strategy that government impose on certain businesses to limit what they are able to charge consumers for its products or services to a price equal to the costs necessary to create the product or service.
This implies that businesses will set the unit price of a product relatively close to the average cost needed to produce it.
Under profit regulation or average-cost pricing, the telephone company's wish to maximize profit can only be effective under the government's regulation if they allow their cost to increase.
Twifty Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2017, the company reported the following operating results while operating at 80% of plant capacity and producing 118,800 units. Amount Sales $4,514,400 Cost of goods sold 3,633,000 Selling and administrative expenses 517,540 Net income $363,860 Fixed costs for the period were the cost of goods sold $960,000, and selling and administrative expenses $274,000. In July, normally a slack manufacturing month, Swifty Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.77 per unit because of shipping costs but would not increase fixed costs and expenses.
Prepare an incremental analysis for the special order.
Answer:
Incremental Analysis for special order
units 10,000
offer price $290,000
Variable cost:
Cost of goods sold($22.5 *10,000) 225,000
Selling and Administrative expenses
($2.05*10,000) 20,500
shipping cost (0.77*10,000) 7,700 (253,200)
Additional contribution 36,800
Explanation:
variable cost goods sold per unit = ( 3,633,000 - 960,000)/118800 = $22.5
Variable selling and admin expense per unit = ( 517,540 - 274,000)/118800
= $ 2.05