Answer:
Incorrect Statement about the Statement of Cash Flows:
c. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section.
Explanation:
Cash dividends of $201,000 will be reported as a cash outflow in the financing activities section and not the investing activities section.
Statement of Cash Flows is broadly divided into three, the operating, investing, and financing activities sections. The operating activities section show the cash flows from the normal business of the enterprise. The investing activities section shows the acquisition and disposal of investments made by the company in cash. While, the financing section shows the inflow and outflow of cash resulting from the funding of the business by stockholders and noncurrent creditors.
Use the following to answer the questions.
Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add two new service product lines-paper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party.
Refer to scenario Currently, Star is using the ____ approach to distributing its janitorial supplies to its large customers.
A. intensive
B. just-in-time
C. segmented
D. outsourcing
E. exclusive
Answer:
B. just-in-time
Explanation:
Just in time (JIT) is an inventory management approach that is used by companies that want to reduce their inventory costs and they purchase their materials in smaller quantities whenever their productive system needs them. The goal is to keep the lowest possible inventory levels.
Item9 2 points Time Remaining 2 hours 55 minutes 49 seconds02:55:49 eBookItem 9Item 9 2 points Time Remaining 2 hours 55 minutes 49 seconds02:55:49 TB MC Qu. 6-143 Keyser Corporation, which has... Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 118 Units in beginning inventory 400 Units produced 2,100 Units sold 2,300 Units in ending inventory 200 Variable costs per unit: Direct materials $ 37 Direct labor $ 23 Variable manufacturing overhead $ 3 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $ 73,500 Fixed selling and administrative expense $ 29,900 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. What is the net operating income for the month under variable costing?
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price $118
Units sold 2,300
Variable costs per unit:
Direct materials $37
Direct labor $23
Variable manufacturing overhead $3
Variable selling and administrative expense $5
First, we need to determine the total unitary variable cost:
Unitary variable cost= 37 + 23 + 3 + 5=$68
Variable cost income statement:
Sales= 2,300*118= 271,400
Total variable cost= 68*2,300= (156,400)
Total contribution margin= 115,000
Fixed manufacturing overhead= (73,500)
Fixed selling and administrative expense= (29,900)
Net operating income= 11,600
A customer has purchased 10,000 shares of Fromage stock, a Swiss cheese company. The stock is not traded in the United States. Fromage declares and pays a dividend of 15,000 Swiss Francs, which, when converted to dollars, equals $10,000. Switzerland imposes a 20% withholding tax on dividends repatriated outside its borders. How is the dividend reported on this investor's U.S. tax return
Answer:
$10,000 of dividends are reported, along with a $2,000 tax credit for monies withheld in Switzerland
Explanation:
As we know that if there is a direct investment in a foreign security, so the foreign country having a tax on dividend send an individual his home country against his will now if this condition arise so the same i.e tax credit should be levy on the same person while filing the U.S tax return
Since $10,000 dividend is received along with it $2,000 would be the tax credit
A vendor at a carnival sells cotton candy and caramel apples for $2.00 each. The vendor is charged $60 to set up his booth. Furthermore, the vendor’s average cost for each product he produces is approximately $0.80.
a. Write a linear cost function representing the cost C(x) (in $) to the vendor to produce x products.b. Write a linear revenue function representing the revenue R(x) (in $) for selling x products.c. Determine the number of products to be produced and sold for the vendor to break even.d. If 60 products are sold, will the vendor make money or lose money?
Answer with its Explanation:
Requirement A. The cost function is equal to variable cost for "x" units and fixed cost which remains fixed. Hence:
Cost Function = C(x) = $60 + $0.8x
Requirement B. The revenue for any units "x" sold can be calculated by simply multiplying "x" with sales price per unit. Which means that:
Revenue Function = R(x) = $2 * x = $2x
Requirement C. Now we have to find the breakeven quantity and this could be calculated using the following formula:
Breakeven Point = Fixed Cost / (Selling Price per Unit - Variable Cost Per Unit)
By putting values we have:
Breakeven Point = $60 / ($2 - $0.8) = 50 units
Requirement D. As the number of units are above breakeven point (No profit and loss position), hence making sales above 50 units will generate profit for the company.
The profit for the company would be:
Total Profit = Contribution per unit * Units above Breakeven point
Total Profit = ($2 - $0.8) * 10 Units = $12
The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year: Ending Balances Cash ? Accounts receivable $ 8,900 Supplies inventory $ 5,500 Equipment $ 38,000 Accumulated depreciation $ 15,400 Accounts payable $ 2,600 Common stock $ 5,000 Retained earnings ? The beginning balance of retained earnings was $25,000, net income is budgeted to be $21,100, and dividends are budgeted to be $3,500.
Answer:
Mecca Copy
Budgeted Balance Sheet
Assets
Current assets:
Cash 13200
Accounts receivable 8900
Supplies inventory 5500
Total current assets 27600
Plant and equipment:
Equipment 38000
Accumulated depreciation (15400)
Plant and equipment, net 22600
Total assets 50200
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 2600
Stockholders' equity:
Common stock 5000
Retained earnings 42600
Total stockholders' equity 47600
Total liabilities and stockholders' equity 50200
Note: Retained earnings = beginning balance of retained earnings + Net income - Dividend
= 25,000 + 21100 - 3500
= 42,600
Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $90
Units in beginning inventory 0
Units produced 3,400
Units sold 3,000
Units in ending inventory 400
Variable costs per unit:
Direct materials $21
Direct labor $38
Variable manufacturing overhead $6
Variable selling and administrative expense $4
Fixed costs:
Fixed manufacturing overhead $54,400
Fixed selling and administrative expense $3,000
What is the unit product cost for the month under variable costing?
Answer:
$65 per unit
Explanation:
Calculation for the unit product cost for the month under variable costing for Aaron Corporation.
Variable costs per unit:
Direct materials $21
Direct labor $38
Variable manufacturing overhead $6
Variable costing unit product cost $ 65
Therefore the unit product cost for the month under variable costing will be $65 per unit.
If a company reorganizes its operation to gain efficiency, the cost associated with this reorganization is classified as
Answer: Restructuring cost
Explanation:
Restructuring cost could be described as making expenses on rejuvenating or reviving or rebranding the company through spendings, which affects most of it's mode of operations, brings a change and innovation and ways to improve existing methods. This is capital intensive due to the work and changes required during the process.
When one nation can produce a product at lower cost relative to another nation, it is said to have a(n) __________________ in producing that product. Group of answer choices
Answer:
absolute advantage
Explanation:
In such a scenario the nation is said to have an absolute advantage in producing that product. Like mentioned, this term refers to the ability of a nation to be able to produce a greater quantity of a good, product, or service than its competitors at a lower cost. This allows the nation to profit massively as well as having more opportunities.
The Digby company will continue to train their existing workforce at their current level to help reduce turnover and improve productivity next year. Employee training costs have increased to $30 per hour. How much would their training costs per employee be to the nearest dollar
Answer:
$1,200
Explanation:
Data provided
Number of training hours = 40
Per unit cost = $30 per hour
According to the given situation, the computation of training costs per employee is shown below:-
Total cost = Number of hours × Per unit cost
= 40 × $30
= $1,200
Therefore for computing the training costs per employee we simply applied the above formula.
Answer:
$1200
Explanation:
The training cost per hour is $30 and if we see below in the Human Resources Summary, we can see that Digby Training Hours are 40 Hours.
This implies that:
Total Training Cost = 40 Hours * $30 per hour = $1200
CAP stands for:________.
a. Change Acceleration Process
b. Continous Acceleration Process
c. Continous Action Process
d. Change Acceleration Project
e. None of the above
Answer: Change Acceleration Process
Explanation:
Change Acceleration Processes is defined as change management tools which are being utilized by an organization in order to make the changes applied to an effort quicker on order to achieve a goal.
It can also be defined as the set of tools and principles that are designed to make organizational change successful.
27 The following information is related to the defined benefit pension plan of Dreamworld Company for the year: Service cost $ 60,000 Contributions to pension plan 110,000 Benefits paid to retirees 150,000 Plan assets (fair value), January 1 640,000 Plan assets (fair value), December 31 750,000 Actual return on plan assets 150,000 PBO, January 1 900,000 PBO, December 31 960,000 Discount rate 10 % Long-term expected return on plan assets 9 % Assuming no other relevant data exist, what is the pension expense for the year
Answer:
$92,400
Explanation:
Calculation for the pension expense for the year
PENSION EXPENSE
Service cost $60,000
Interest cost $90,000
(10%*900,000)
Less Expected return on plan assets ($57,600)
(9%*640,000)
Pension expense $92,400
Therefore the is the pension expense for the year will be $92,400
Exercise 7-9 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, LO7-2, LO7-3]
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:
Variable costs per unit:
Manufacturing:
Direct materials $ 25
Direct labor $ 15
Variable manufacturing overhead $5
Variable selling and administrative $2
Fixed costs per year:
Fixed manufacturing overhead $250,000
Fixed selling and administrative expenses $80,000
During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $60 per unit.
Required:
1. Assume the company uses variable costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
2. Assume the company uses absorption costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1.
Answer:
1 a. Year 1 unit product cost = 45
Year 2 unit product cost = 45
Notes: Unit product cost = Direct materials + direct labor + Variable manufacturing overhead = 25 + 15 + 5 = 45 units
1 b. Income statement
Year 1 Year 2
Sales 2,400,000 3,000,000
(40000*60); (50000*60)
Less:
Variable cost of goods sold 1,800,000 2,250,000
Variable selling and adm. 80,000 100,000
Contribution margin 520,000 650,000
Less:
Fixed manufacturing overhead 250,000 250,000
Fixed selling & adm expense 80,000 80,000
Net income $190,000 $320,000
2 a. Notes
Year 1 Year 2
Direct materials 25 25
Direct labor 15 15
Variable manufacturing overhead 5 5
Fixed manufacturing overhead 5 6.25
(250,000/50,000); (250,000/40000)
Unit product cost 50 51.25
b. Income statement
Year 1 Year 2
Sales 2400000 3000000
Less: cost of goods sold 2000000 2550000
Gross margin 400,000 450,000
Less: Selling and 160,000 180,000
administrative expense
Net income 240,000 270,000
Workings
Cost of goods sold for year 2 = (10,000* 50) + (40000 * 51.25)
= 500,000 + 2,050,000
= 25,500,000
3. Reconciliation Year 1 Year 2
Variable costing net operating 190,000 320,000
income (loss)
Add: Deferred fixed overhead 50,000
in ending inventory (10000*5)
Less: Fixed overhead realized -50,000
in beginning inventory(10000*5)
Absorption costing net operating $240,000 270,000
income (loss)
Answer 1:
Part a
Unit product cost = Direct materials + direct labor + Variable manufacturing overheadUnit product cost = 25 + 15 + 5 Unit product cost = 45 unitsYear 1 -unit product cost = 45
Year 2 -unit product cost = 45
Part b :
Income statement
Year 1 Year 2
Sales 2,400,000 3,000,000
(40000*60) (50000*60)
Less:
Variable cost of goods sold 1,800,000 2,250,000
Variable selling and adm. 80,000 100,000
Contribution margin 520,000 650,000
Less:
Fixed manufacturing overhead 250,000 250,000
Fixed selling & adm expense 80,000 80,000
Net income $190,000 $320,000
Answer 2 :
Part a
Year 1 Year 2
Direct materials 25 25
Direct labor 15 15
Variable manufacturing overhead 5 5
Fixed manufacturing overhead 5 6.25
(250,000/50,000); (250,000/40000)
Unit product cost 50 51.25
Part b.
Income statement
Year 1 Year 2
Sales 2400000 3000000
Less: cost of goods sold 2000000 2550000
Gross margin 400,000 450,000
Less: Selling and 160,000 180,000
Net income 240,000 270,000
An income statement for Year 1 - 240,000and Year 2-270,000.
(Working Notes):
Cost of goods sold for year 2 = (10,000* 50) + (40000 * 51.25)
Cost of goods sold for year 2 = 500,000 + 2,050,000
Cost of goods sold for year 2 = 25,500,000
Answer 3:
The difference between variable costing and absorption costing net operating income in Year 1.
Reconciliation Year 1 Year 2
Variable costing net operating 190,000 320,000
income (loss)
Add: Deferred fixed overhead 50,000in ending inventory (10000*5)
Less: Fixed overhead realized -50,000in beginning inventory(10000*5)
Absorption costing net operating $240,000 270,000
The difference between variable costing and absorption costing net operating income in Year 1 is $2,40,000.
know more :
https://brainly.com/question/13893889?referrer=searchResults
The firm is an all-equity firm with assets worth $350 million and 100 million shares outstanding. It plans to borrow $100 million and use these funds to repurchase shares. The firm’s marginal corporate tax is 21%, and it plans to keep its outstanding debt equal to $100 million permanently. If the firm manages to repurchase shares at $4 per share, what is the per share value of equity for the leveraged firm? A) $2.71 per share B) $3.5 per share C) $3.61 per share D) $3.71 per share E) $4 per share
Answer:
B) $3.5 per share
Explanation:
Assets = Existing assets + Tax shield
= $350 million + 21% * $100 million
= $371 million
Equity = Asset - Debt
= $371 million - $100 million
= $271 million
The Shares are repurchase at $4
At this price, the firm would have 100 - 100/4 = 75 million shares outstanding .
Worth of shares outstanding = Equity / Outstanding shares
Worth of shares outstanding = ($271 million / 75 million shares)
Worth of shares outstanding = $3.61 per shares
Fowler, Inc., just paid a dividend of $2.70 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. Assume investors require a return of 9 percent on this stock. a. What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the price be in six years and in thirteen years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Answer:
Fowler, Inc.a. Current price = Current Dividend/r - g
where r = Required Rate of Return
and g = growth rate
= $2.70/0.09 - 0.045
= $2.70/0.045
= $60
b. The price in six years' time, growing at 4.5%
= Current price x (1 + g)^6
= $60 x 1.30226
= $78.14
c. The price in thirteen years' time, growing at 4.5%
= $60 x 1.772196
= $106.33
Explanation:
a) Data and Calculations:
Current Dividend = $2.70
Dividends' constant growth rate = 4.5% p.a. indefinitely
Investors' required rate of return = 9%
Fowler, Inc.'s stock prices calculated using the dividend, growth rate, and investors required rate of return gives the intrinsic values of the stock for the current year, in six and thirteen years' time. The intrinsic value calculation eliminates the need to value the stock subjectively.
If a company uses straight-line depreciation, the annual average investment can be calculated as: (Check all that apply.)
Answer: beg book value +the salvage value) / 2.
(the sum of annual average book values) ÷ asset’s life
(beg book value +the end book value) ÷ 2.
Explanation:
Depreciation is simply when an asset begin to wear and tear and thereby its value is reduced.Straight line depreciation is calculated when the difference between the cost of an asset and the expected salvage value is divided by the number of years it is projected to be used.
Using this method, the annual average investment can be calculated as:
• beg book value +the salvage value) / 2.
• (the sum of annual average book values) ÷ asset’s life
• (beg book value +the end book value) ÷ 2.
Pearl Corporation issued 1,700 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling separately at 98. The market price of the warrants without the bonds cannot be determined. Use the incremental method to record the issuance of the bonds and warrants.
ex. account title DR
Account title CR
Answer:
Solution as seen below
Explanation:
Bond = 1,700 × $1,000 × 98%
= $1,666,000
Allocation :
Issue price $1,751,000
(1,700 × $1,000 × 103%)
Bonds ( $1,666,000 )
Warrants $85,000
($1,751,000 - $1,666,000)
Bond face value $1,700,000
(1,700 × $1,000)
Allocated FMV ($1,666,000)
Discounts $34,000
($1,700,000 - $1,666,000)
I have question with it can you help me please??
Answer:
Pick-up Later:
Set a pickup date
Process the transaction
Place all the items in the pickup area near the front of the store
Place a note on the items indicating they are sold.
Explanation:
The purpose of the above procedure is to enable the customer to take delivery of purchased goods hitch-free. The pick-up area needs to be covered against rain so that the mulch and topsoil do not degrade. It is assumed that the customer's contact information and payment have been secured before the arrangement for pick-up later.
Almost certainly you have seen vending machines being serviced on your campus and elsewhere. On a predetermined schedule the vending company checks each machine and fills it with various products. This is an example of which category of inventory model?
Answer:
Fixed Time Period Model
Explanation:
a fixed time period model ensures that level of inventory is checked regularly for all items. therefore from the question, if the vending company checks each machine and fills it with various product the inventory method is Fixed Time Period Model.
You purchased 1,000 shares of stock in Natural Chicken Wings, Inc., at a price of $43.37 per share. Since you purchased the stock, you have received dividends of $.95 per share. Today, you sold your stock at a price of $46.62 per share. What was your total percentage return on this investment?
Answer:
9.68%
Explanation:
Percent Return on Investment is calculated as Net Profit / Cost of Investment x 100
Net Profit= $46,620 (1,000 x $46.62 per share) + $950 (1,000 x $.95 per share) - $43,370 (1,000 x $43.37 per share) = $4,200
Cost of Investment= $43,370 (1,000 x $43.37 per share)
Percent Return on Investment= $4,200 / $43,370 x 100 = 9.68%
Victorinox is the name of the company that manufactures Swiss army knives. As a result of new regulations governing what passengers could carry with them on airplane trips, the company has lost 30 percent of its business. In other companies, this might have led to business failure, but because Victorinox had _____ plans, it was able to continue to operate profitably.
Answer: contingency plans
Explanation:
A contingency plan is a plan that's designed in order to take into consideration ever possible event or circumstance that may occur in the future.
The aim of a contingency plan is to help an organization hat back to its feet as soon as possible when an unforeseen event o circumstance happens.
Brennan's Boats is considering a project which will require additional inventory of $128,000, will decrease accounts payable by $7,000, and will increase accounts receivable by $56,000. What is the initial project cash flow needed for net working capital?
Answer:
$191,000
Explanation:
Brennan's Boats is considering a project in this, the initial project cash flow needed for net working capital is $ 191,000.
What do you mean by the net working capital?The difference between a company's short-term assets and its short-term debts and liabilities is known as net working capital (NWC). Positive net working capital is excellent since it shows that a company's financial obligations have been met and allows it to invest in other operational needs.
Current assets less Current Liabilities equals Working Capital. An entity has a working capital deficiency, also known as a working capital deficit and negative working capital, if current assets are fewer than current liabilities.
Here,
Calculation of net working capital (NWC):
Net working capital = $128,000 + 7,000 + 56,000
Net working capital = $191,000.
Therefore, Brennan's Boats is considering a project in this, the initial project cash flow needed for net working capital is $ 191,000.
To know more about the net working capital, visit:
https://brainly.com/question/18720725
#SPJ6
At the beginning of the current year, both Doug and Amelia each own 50% of Amaryllis Corporation (a calendar year taxpayer). In July, Doug sold his stock to Kevin for $140,000. At the beginning of the year, Amaryllis Corporation had accumulated E& P of $240,000 and its current E & P is $280,000 (prior to any distributions). Amaryllis distributed $300,000 on February 15 ($150,000 to Doug and $150,000 to Alfred) and distributed another $300,000 on November 1 ($150,000 to Kevin and $150,000 to Alfred). Kevin has dividend income of:_______
a. $150,000.b. $140,000.c. $110,000.d. $70,000.e. None of the above.
Answer:
Kevin has dividend income of:_______
a. $150,000.
Explanation:
Kevin became a 50% shareholder of Amaryllis in July. So, Kevin is entitled to receive 50% of any distributions made by Amaryllis from the July date. Since Amaryllis distributed $300,000 on November 1, Kevin will receive a dividend income equivalent to $150,000 from Amaryllis. The remaining 50% goes to his partner in business. Kevin could not be entitled to the distribution made on February 15, by which date he was not yet a shareholder of Amaryllis.
Emira wants to buy a classic drawing from an art centre in Kuala Lumpur. She managed to secure a painting by a renowned Malaysian artist that costs her RM99,800. Currently, she only has RM12,650 in her savings account and she intends to use 70% of her saving to fund the purchase. If she borrows the remaining amount from Bank Atlantis that levies 4.77% of interest rates, determine the total interest payment that she will pay if the agreement takes 10 years of settlement.
Answer:
RM23,617.80
Explanation:
cost of the painting RM99,800
she has RM12,650 on her bank account and she will use 70% = RM8,855 as down payment. She will borrow the rest = RM99,800 - RM8,855 = RM90,945
interest charged on the loan 4.77% / 12 = 0.3975%
120 monthly periods (10 years)
using the present value formula to determine the monthly payment:
PV = monthly payment x annuity factor
monthly payment = PV / annuity factor
PV = 90,945
annuity factor (120 periods, 0.3975%) = 95.26168
monthly payment = 90,945 / 95.26168 = 954.69
total payments = 120 x 954.69 = RM114,562.80
interests paid = RM114,562.80 - RM90,945 = RM23,617.80
Stockholders in a corporation entrust control over the company's daily operations to managers selected by the board of directors to run the company. True or False True False
Answer: true
Explanation: stockholders also known as shareholders are individuals or entities that own shares of stock in a corporation. They are therefore the real owners of a publicly traded business, however, management runs it. Therefore, it can be said that stockholders in a corporation entrust control over the company's daily operations to managers selected by the board of directors to run the company.
intext:"A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include"
Answer:
Date Account Titles and Explanation Debit Credit
Land $84,000
Common stock $12,000
Paid in capital in excess of par value $72,000
Workings:
Amount of Common stock = Number of shares * Paid in capital per share
= 6,000 shares * $2
= $12,000
Amount of excess of paid in capital = Market value of land - Amount of common stock
= $84,000 - $12,000
= $72,000
A company uses 40000 pounds of materials for which it paid $2 a pound. The materials price variance was $20000 unfavorable. What is the standard price per pound
Answer:
Standard price= $1.5
Explanation:
Giving the following information:
A company uses 40000 pounds of materials for which it paid $2 a pound. The materials price variance was $20000 unfavorable.
To calculate the standard price, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
-20,000= (standard price - 2)*40,000
-20,000= 40,000standard price - 80,000
60,000/40,000= standard price
standard price= $1.5
Hickam Company makes one product, for which it has developed the following standard for labor: each unit should require 1.50 hours at $12/hour. In April, Hickam made 10,000 units, using 1.65 hours per unit at a cost of $11.50 per hour. What is the labor usage variance
Answer:
$1.8 Unfavourable
Explanation:
Labor usage variance can be calculated by deducting Standard hours from Actual hours and multiplying the result by the standard rate.
DATA
Standard hours = 1.50 hours
Standard rate = $12/hour
Actual hours = 1.65 hours
Actual rate = $11.5/hour
Calculation
LABOUR USAGE VARIANCE = (SH-AH)SR
LABOUR USAGE VARIANCE =(1.5 - 1.65) x $12
LABOUR USAGE VARIANCE = (-0.15) x $12
LABOUR USAGE VARIANCE = $1.8 Unfavourable
Buy 100 shares of ABC if the market rises to $45, but don't buy the stock for more than $50." What is the appropriate order to be placed
Answer:
Buy ABC at 45 Stop 50 Limit
Explanation:
Since the customer wishes to buy the stock if the market rises to $45 per share , the appropriate order to be placed is 'Buy ABC at 45 Stop 50 Limit'.
Here, a buy stop order is the only order that allows stocks to be bought at a price above current market price unlike a buy limit order that is placed below the current market price hence cannot be used.
In a situation where the market moves to $45 or higher, it becomes a market order to buy because it is elected. Suppose the customer is no more interested in paying above $50 per share, the order must be ' Buy 100 ABC at 45, Stop 50 Limit.
Acme Company’s production budget for August is 17,700 units and includes the following component unit costs: direct materials, $6.0; direct labor, $10.2; variable overhead, $6.2. Budgeted fixed overhead is $34,000. Actual production in August was 18,630 units. Actual unit component costs incurred during August include direct materials, $8.40; direct labor, $9.60; variable overhead, $7.00. Actual fixed overhead was $35,700. The standard fixed overhead application rate per unit consists of $2 per machine hour and each unit is allowed a standard of 1 hour of machine time.Required:Calculate the fixed overhead budget variance and the fixed overhead volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Answer:
a. $1,700 U
b. $3,260 F
Explanation:
a. Fixed over head budget variance = Actual fixed overhead - Budgeted fixed overhead
Actual fixed overhead = $35,700
Budgeted fixed overhead = $34,000
Fixed overhead budget variance = $35,700 - $34,000
= $1,700 U
b. Fixed overhead volume variance = Budgeted fixed overhead - Standard fixed overhead
Standard fixed overhead application rate = $2 per machine hr × 1hr
= $2
Budgeted fixed overhead = $34,000
Standard fixed overhead = Standard hours for actual output × Budgeted rate
= (18,630 units × 1hr) × $2
= $37,260
Fixed overhead volume variance
= $34,000 - $37,260
= 3,260 F
The following are two independent situations.
1. Conchita Cosmetics acquired 10% of the 210,100 shares of common stock of Martinez Fashion at a total cost of $15 per share on March 18, 2014. On June 30, Martinez declared and paid a $77,700 cash dividend. On December 31, Martinez reported net income of $122,500 for the year. At December 31, the market price of Martinez Fashion was $17 per share. The securities are classified as available-for-sale.
2. Monica, Inc. obtained significant influence over Seles Corporation by buying 33% of Seles's 33,500 outstanding shares of common stock at a total cost of $11 per share on January 1, 2014. On June 15, Seles declared and paid a cash dividend of $45,800. On December 31, Seles reported a net income of $94,600 for the year.
Prepare all necessary journal entries in 2014 for both situations.
Answer:
Journal entries are given below
Explanation:
All necessary journal entries in 2014 for both situations.
Situation 1
March 18, 2014 (Conchita Cosmetics acquired 10% of the 210,100 shares of common stock of Martinez Fashion at a total cost of $15 per share)
DEBIT CREDIT
Stock $3,151,500
Cash $3,151,500
June 30 ( Martinez paid a $77,700 cash dividend)
DEBIT CREDIT
Cash $77,700
Dividend Income $77,700
December 31 (the market price of Martinez Fashion was $17 per share)
DEBIT CREDIT
Securities $420,200
Unrealized gain $420,200
Working
Gain = $17 - $15 = $2 x 210,100
Gain =420,200
Situation 2
January 1, 2014 (Monica, Inc. acquired 33% of Seles's 33,500 outstanding shares of common stock at a total cost of $11 per share)
DEBIT CREDIT
Cash $368,500
Dividend Income $368,500
On June 15 ( Seles declared and paid a cash dividend)
DEBIT CREDIT
Cash $45,800
Dividend Income $45,800
