Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 32,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 26,000 and 30,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models.

The following information was compiled by the accounting department.

Model
Mountaineering Touring
Selling price per unit $ 149.00 $ 137.00
Variable costs per unit 87.70 87.70
Fixed costs will total $622,400 if the mountaineering model is produced but will be only $526,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 50 percent income tax rate.

Required:

Compute the contribution-margin ratio for the touring model. (Round your final answer to 2 decimal places.)

If Alpine Thrills Ski Company desires an after-tax net income of $41,620, how many pairs of touring skis will the company have to sell? (Do not round intermediate calculations. Round your final answer to the nearest whole unit.)

How much would the variable cost per unit of the touring model have to change before it had the same break-even point in units as the mountaineering model? (Round your intermediate calculations and final answer to 2 decimal places.)

Suppose the variable cost per unit of touring skis decreases by 15 percent, and the total fixed cost of touring skis increases by 15 percent. Compute the new break-even point. (Do not round intermediate calculations. Round your final answer up to nearest whole unit.)

Answers

Answer 1

Answer:

35.98%

12,362 pairs

$2.53

9,688 pairs

Explanation:

As per the data given in the question,

1)

As we know that

Contribution margin ratio = (Contribution margin per unit) ÷ (Selling price per unit) × 100

where,

Contribution margin per unit = Selling price per unit - variable cost per unit\

So,

Selling price = $137.00

Variable cost = $87.70

Contribution Margin = $137.00 - $87.70 = $49.30

Contribution margin ratio = $49.30 ÷ $137.00

= 35.98%

2)

Net Income after tax = $41,620

Income Before tax = $41,620 ÷ 50%

= $83,240

Now Pairs of touring skis will be sold by company = (Income before tax + fixed cost) ÷ Contribution Margin

= ($83,240 + $526,200) ÷ $49.30

= 12,362 pairs

3)

Break-even of mountaineering model

= Fixed cost ÷ (Selling price per unit - variable cost per unit)

= $622,400  ÷ ($149 - $87.70)

= $10,153

Now Let Variable cost be Y

$10,153 = $526,200 ÷ ($137 - Y)

Y = $85.17

Therefore, Variable cost per unit decreased by

= ($87.70 - $85.17)

= $2.53

4)

New Fixed cost

= Fixed cost × increased percentage

= $526,200 × 1.15

= $605,130

New variable cost per unit

= $87.70 × 0.85

= $74.54

New Break-even point = New Fixed cost ÷ Contribution Margin

= $605,130 ÷ ($137-$74.54)

= 9,688 pairs


Related Questions

Andrews Corporation has income from operations of $253,000. In addition, it received interest income of $25,300 and received dividend income of $28,900 from another corporation. Finally, it paid $13,000 of interest income to its bondholders and paid $47,400 of dividends to its common stockholders. Using the 2013 corporate tax schedule, what is the firm’s federal income tax? Round your intermediated and final answers to the nearest cent. $

Answers

Answer:

$107,122

Explanation:

corporate tax rate during 2013 = 39.1%

Andrews Corporation net taxable income:

from operations $253,000from interests $25,300from dividends $28,900 - dividends received deductions $20,230 = $8,670

Deductions on net taxable income*:

interest paid to bondholders = $13,000

Net taxable income = $286,970 - $13,000 = $273,970

federal income tax = $273,970 x 39.1% = $107,122

*Dividends are paid with retained earnings which include after tax net income. They are not tax deductible.

Selected information from Illikon Corporation's accounting records and financial statements for 2021 is as follows ($ in millions): Cash paid to acquire equipment $ 120 Cash paid to acquire land 54 Treasury stock acquired with cash and then retired 75 Dividend revenue received 66 Gain from the sale of buildings 78 Proceeds from sale of buildings 135 In its statement of cash flows, Illikon should report net cash outflows from investing activities of:

Answers

Answer:

$39

Explanation:

According to the scenario, computation of the given data are as follows:

We can calculate the Net cash outflow by using following formula:

Net cash outflow from investing activities to be reported  = Cash paid to acquire equipment + Cash paid to acquire land - Proceeds from sale of building

By putting the value in the formula, we get

= $120 + $54 - $135

= $39

Hence, Net cash outflow from investing activities to be reported is $39.

g Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $20,000,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. If an amount box does not require an entry, leave it blank. c. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000? The market rate of interest is the contract rate of interest.

Answers

Answer:

Explanation:

a

Cash 20811010

Bonds payable 20000000

Premium on Bonds payable 811010

b

Interest expense 818899

Premium on Bonds payable 81101 =811010/5*6/12

Cash 900000 =20000000*9%*6/12

c

The market rate of interest will be lower than the contract rate of interest.

The following information relates to the pension plan for the employees of Turner Co.: 1/1/20 12/31/20 12/31/21 Projected benefit obligation 9,765,000 10,458,000 14,007,000 Fair value of plan assets 8,925,000 10,920,000 12,054,000 AOCI – net (gain) or loss -0- (1,512,000) (1,680,000) Settlement rate (for year) 11% 11% Expected rate of return (for year) 8% 7% Turner estimates that the average remaining service life is 16 years. Turner's contribution was $1,323,000 in 2021 and benefits paid to retired employees was $987,000. The amount of AOCI (net gain) amortized in 2021 is

Answers

Answer:

The amount of AOCI (net gain) amortized in 2021 is $26,250

Explanation:

In order to calculate the calculate the amount of AOCI (net gain) amortized in 2021 we would have to use the following formula:

amount of AOCI (net gain) amortized in 2021=(AOCI net gain 12/31/20-Corridor amount for 2021)/Average remaining service life

AOCI net gain 12/31/20=$1,512,000  

Corridor amount for 2021=$1,092,000=10,920,000*10%

Average remaining service life=16  

Therefore, AOCI (net gain) amortized in 2021=($1,512,000-$1,092,000)/16

AOCI (net gain) amortized in 2021=$26,250

When Starbucks sells "Starbucks" T-shirts in its coffee shops or when the Chicago Cubs peddle cubs branded merchandise at Wrigley Field, why are their marketers so happy?

Answers

Answer:

Because they have produced beyond their normal sale products such as coffee for Starbucks in other words they have found a other way to make more money.

Explanation:

pls mark brainliest

On November 27, the board of directors of Armstrong Company declared a $.50 per share dividend. The dividend is payable to shareholders of record on December 7 on December 24. Armstrong has 25,500 shares of $1 par common stock outstanding at November 27. Journalize the entries needed on the declaration and payment dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answers

Answer:

On November 27

Debit Retained earnings $12,750

Credit Dividend payable $12,750

(To record the dividend declared)

On December 24

Debit Dividend payable $12,750

Credit Cash $12,750

(To record dividend paid)  

Explanation:

Dividends on gains on shares bought by the shareholders. They arise due to appreciation in share price and improvement in company's net income.The dividend payable was calculated as $.5 x 25,500 shares = $12,750.Dividends are usually paid out of retained earnings.The dividend payable account is debited when payment is to be made.

A company produces a single product. Last year, fixed manufacturing overhead was $30,000, variable production costs were $48,000, fixed selling and administration costs were $20,000, and variable selling administrative expenses were $9,600. There was no beginning inventory. During the year, 3,000 units were produced and 2,400 units were sold at a price of $40 per unit. Under variable costing, net operating income would be

Answers

Answer:

Net operating income= (2,000)

Explanation:

Giving the following information:

fixed manufacturing overhead was $30,000

variable production costs were $48,000

fixed selling and administration costs were $20,000

variable selling administrative expenses were $9,600.

During the year, 3,000 units were produced and 2,400 units were sold for $40 per unit.

First, we need to calculate the unitary product variable cost:

Unitary product cost= 48,000/3,000= $16

Income statement:

Sales= 2,400*40= 96,000

Total variable cost= (2,400*16) + 9,600= (48,000)

Contribution margin= 48,000

fixed manufacturing overhead= (30,000)

fixed selling and administration costs were= (20,000)

Net operating income= (2,000)

Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning of 2021. The inventory as reported at the end of 2020 using LIFO would have been $59,000 higher using FIFO. Retained earnings at the end of 2020 was reported as $770,000 (reflecting the LIFO method). The tax rate is 35%. Required: 1. Calculate the balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years. 2. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle.

Answers

Answer:

1. The balance in retained earnings at the time of the change is $808,350

2. The journal entry at the beginning of 2021 to record the change in accounting principle woud be as follows:

Inventoty         $59,000

                  Retained Earnings   $38,350

                  Tax Payable          $20,650

Explanation:

1. In order to calculate the balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years we would have to make the following calculation:

balance in retained earnings at the time of the change=Begining Retained earnings of 2021+Adjusted net income

Adjusted net income=Ending inventory higher by amount×(1-tax rate)

Adjusted net income=$59,000×(1-0.35)

Adjusted net income=$38,350

balance in retained earnings at the time of the change=$770,000+$38,350

balance in retained earnings at the time of the change=$808,350

2. The journal entry at the beginning of 2021 to record the change in accounting principle woud be as follows:

Inventoty         $59,000

                  Retained Earnings   $38,350

                  Tax Payable          $20,650= $59,000×0.35

Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows:
Atlantic Wave Pacific Pounder
Sales price $280 $130
Variable cost of goods sold per unit 220 97
Manufacturing margin per unit $60 $33
Variable selling expense per unit 32 18
Contribution margin per unit $28 $15
The sales unit volume for the sales territories and products for the period is as follows:
East Coast West Coast
Atlantic Wave 30,000 21,000
Pacific Pounder 0 21,000
Required:
Prepare a contribution margin by sales territory report. Calculate the contribution margin ratio for each territory as a whole percent

Answers

Answer:

Contribution margin ratio:

For East Coast = 10%

For West Coast = 8.05%

Explanation:

As per the data given in the question,

Contribution margin by sales territory report :

C C S Inc.

Contribution margin by Territory

Particulars                             East Coast                     West Coast

Sales (a)                                $8,400,000                     $8,610,000

(30,000×$280)+(0×$130)

(21,000×$280)+(21,000×$130)

Less: variable cost of goods sold(b) $6,600,000      $6,657,000

(30,000×$220)+(0×$97)

(21,000×$220)+(21,000×$97)

Manufacturing margin (c=a-b) $1,800,000                  $1,953,000

Less: Variable selling expense (d) $960,000             $1,260,000

(30,000×$32)+(0×$28)

(21,000×$32)+(21,000×$28)

Contribution margin (e=c-d)        $840,000                 $693,000

For East Coast:

Contribution margin ratio = (Contribution margin ÷ Sales revenue)×100

=($840,000÷ $8,400,000)×100

= 10%

For west coast:

Contribution margin ratio = (Contribution margin ÷ Sales revenue)×100

=($693,000 ÷ $8,610,000)×100

= 8.05%

a doctor works in a....​

Answers

Answer:

Clinic or Hospital

Explanation:

:)

Todd is working on resource scheduling in preparation for the start of a project. There is a potential problem in the works, however, as the new collective bargaining agreement with the company's union has not been concluded. Todd decides to continue working on the resource schedule in anticipation of a satisfactory settlement. Todd's approach would be an example of which method of dealing with risk

Answers

Answer:

Accept it.(Risk).

Explanation:

This is commonly known also as risk retention which is been encountered in business or investments. Many businesses use risk management techniques to identify, assess and prioritize risks for the purpose of minimizing, monitoring, and controlling said risks.

Most businesses and risk management personnel will find that they have greater and more numerous risks than they can manage, mitigate, or avoid given the resources they are allocated. As such, businesses must find a balance between the potential costs of an issue resulting from a known risk and the expense involved in avoiding or otherwise dealing with it. Types of risks include uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural causes and disasters, and overly aggressive competition.

Foreman Mining purchased land containing a copper deposit for $2,640,000 on January 7, 2021. The company expects to mine 770,000 tons of copper over the next 10 years, and the land is expected to have a residual value of $1,408,000. The company has also purchased mining equipment for $570,000 that will be used only at this site over the 10 years with an estimated residual value of $54,100. By the end of the first year, the company has mined and sold 61,000 tons of copper. What is the cost attributed to copper inventory for 2021, assuming the company uses the units-of-production method?

Answers

Answer:

$138,470

Explanation:

cost of mine = $2,640,000

residual value of the land = $1,408,000

cost of equipment = $570,000

residual value = $54,100

it should contain 770,000 tons of copper

units of production depreciation method:

depreciation of mine = ($2,640,000 - $1,408,000) / 770,000 tons of copper = $1.60 per ton of copperdepreciation of equipment = ($570,000 - $54,100) / 770,000 tons of copper = $0.67 per ton of coppertotal depreciation per ton of copper = $1.60 + $0.67 = $2.27

since 61,000 tons were extracted, then the depreciation expense = 61,000 x $2.27 = $138,470

Which of the following statements generates the greatest amount of disagreement among economists? a. Increases in the money supply shift aggregate demand to the right. b. In the long run, increases in the money supply increase prices, but not output. c. Recessions are associated with decreases in consumption, investment, and employment. d. Government should use fiscal policy to try to stabilize the economy.

Answers

Answer:

d. Government should use fiscal policy to try to stabilize the economy.

Explanation:

Suggesting that the government should use fiscal policy to try to stabilize the economy generates the greatest amount of disagreement among economists because the process of implementing fiscal policy usually experiences lag as it is being slowed down by the political system (bureaucracy) of checks and balances.

Fiscal policy is the use of government expenditures, revenues and tax policies to influence macroeconomic conditions such as employment, inflation and Aggregate Demand (ADl in a specific country.

The benefits of fiscal policy is that investments, savings and growth is usually influenced in the long-run while it basically influences aggregate demand for goods and services in the short-run.

Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,800 direct labor-hours will be required in August. The variable overhead rate is $1.20 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,560 per month, which includes depreciation of $8,790. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Answers

Answer:

Total cash= $101,130

Explanation:

Giving the following information:

Estimated direct labor hours=  7,800

The variable overhead rate is $1.20 per direct labor-hour.

The company's budgeted fixed manufacturing overhead is $100,560 per month, which includes depreciation of $8,790.

We need to deduct the depreciation expense because it is not a cash disbursement.

Cash disbursement:

Variable overhead= 7,800*1.2= $9,360

Fixed overhead= (100,560 - 8,790)= $91,770

Total cash= $101,130

Anderson Steel Company began 2018 with 550,000 shares of common stock outstanding. On March 31, 2018, 140,000 new shares were sold at a price of $50 per share. The market price has risen steadily since that time to a high of $55 per share at December 31. No other changes in shares occurred during 2018, and no securities are outstanding that can become common stock. However, there are two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensation arrangements reached in 2017. The first agreement grants to the company president a right to 42,000 shares of stock each year the closing market price is at least $53. The agreement begins in 2019 and expires in 2022. The second agreement grants to the controller a right to 47,000 shares of stock if she is still with the firm at the end of 2026. Net income for 2018 was $5,200,000.
Required:
Compute Anderson Steel Company's basic and diluted EPS for the year ended December 31, 2018. (Enter your answers in thousands.)

Answers

Answer:

EPS = $7.94

diluted EPS = $7.94, since there are no diluted shares in 2018

Explanation:

January 2018 = 550,000 common stocks

March 31 = 140,000 new shares issued = 105,000 weighted stocks

net income = $5,200,000

EPS = net income / weighted common stocks = $5,200,000 / (550,000 + 105,000) = $5,200,000 / 655,000 stocks = $7.939 ≈ $7.94 per stock

there are no diluted shares since the agreement with the president of the board starts in 2019, and we are calculating the EPS for 2018. The same applies to the controller, since her agreement starts in 2026.

If all goes according​ plan, Robo-Tech will soon have access to a new valuable external financing​ resource, that it can use to finance it future growth potential. To Do a. For​ Robo-Tech, what are the advantages of being a publicly listed​ company? b. For​ Robo-Tech, what are the disadvantages of being a publicly listed​ company? c. If​ Robo-Tech prefers that its shares trade on a centralized​ exchange, what listing exchanges make the most sense for​ Robo-Tech and​ why? d. Once​ Robo-Tech has sold its shares to the public does it care whether capital markets are​ efficient? In other​ words, how does market efficiency affect​ Robo-Tech?

Answers

Answer:

The overview of the offer problem is listed in the segment below on the explanation.

Explanation:

Becoming a publicly traded business gives access to that information or fund that it wants to expand. Shareholders can receive cash if a payout is not received, without getting the right to refer the organization to bankruptcy proceedings.Making it public gives the business the opportunity to even get a come back through his as well as her hard work. The proprietor can consolidate his and perhaps her business plan by releasing information. In reality, it's hard to evaluate the corporation's worth without making it public.

So that the above is the right answer.

Answer:

????

Explanation:

The corporate charter of Andromeda Co. authorized the issuance of 21 million, $1 par common shares. During 2021, its first year of operations, Andromeda had the following transactions: January 1 sold 6 million shares at $26 per share June 3 purchased 13 million shares of treasury stock at $29 per share December 28 sold the 4 million shares of treasury stock at $31 per share What amount should Andromeda report as additional paid-in capital in its December 31, 2021, balance sheet

Answers

Answer:

$158 million

Explanation:

The computation of total additional paid in capital is shown below:-

Paid in capital in excess of par value-Common Stock = ($26 - 1) × 6 million

= 25 × 6 million

= $150 million

Paid in capital from sale of treasury Stock = ($31 - $29) × 4 million

= $8 million

Total additional paid in capital = Paid in capital in excess of par value-Common Stock + Paid in capital from sale of treasury Stock

= $150 million + $8 million

= $158 million

So, for computing the total additional paid in capital we simply applied the above formula.

Dan Bumblauskas is the owner of a small Iowa company that produces electric knives used to cut fabric. The annual demand is for 10 comma 500 ​knives, and Dan produces the knives in batches. On​ average, Dan can produce 190 knives per​ day; during the production​ process, demand has been about 70 knives per day. The cost to set up the production process is ​$85​, and it costs Dan ​$1.10 to carry a knife for 1 year. How many knives should Dan produce in each​ batch?

Answers

Answer:

1,012.36 knives produced in each month

Explanation:

Data provided in the question

Annual demand = 10,500

Ordering cost = $85

Holding cost = $1.10

Daily demand = 70 knives per day

Production knives per day = 190 knives

Based on the given information, we need to apply the formula which is shown below:[tex]Economic\ order\ quantity = \sqrt{\frac{2\times annual\ demand \times ordering\ cost}{holding\ cost} \times 1 - \frac{daily\ demand}{production}[/tex]

[tex]Economic\ order\ quantity = \sqrt{\frac{2\times 10,500 \times\$85}{\$1.10} \times 1 - \frac{70}{190}[/tex]

= 1,012.36 knives produced in each month

We simply applied the above formula to find out the knives produced in each batch

Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing.

Current Machine New Machine
Original purchase cost $15,300 $25,100
Accumulated depreciation $6,200 ------
Estimated annual operating costs $24,800 $19,800
Remaining useful life 5 years 5 years

If sold now, the current machine would have a salvage value of $10,800. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.
Should the current machine be replaced?

Answers

Answer:

The current machine should be replaced.  It costs more plus the overhead costs to maintain the current machine than it would cost to maintain the new machine.

The analysis is as follows:

Explanation:

1. Cost Analysis of Current Machine:

Book value of equipment = $9,100 ($15,300 - $6,200)

Annual Operating Costs for 5 years = $124,000 ($24,800 x 5)

Total cost = $133,100 ($9,100 + $124,000)

2. Cost Analysis for New Machine:

Purchase cost = $25,100

Annual operating costs for 5 years = $99,000 ($19,800 x 5)

Total cost for 5 years = $124,100 ($25,100 + $99,000)

Since both machines have no salvage value at the end of 5 years, it makes sense to purchase the new machine with a cost saving of $9,000 ($133,100 - $124,100) plus the overtime cost that will be eliminated.

Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.90 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.10 pounds. Materials cost $4 per pound, but Stefani always takes the 2.00% cash discount all of its suppliers offer. Freight costs average $0.40 per pound. Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Stefani’s employees is $10.90. Payroll taxes and fringe benefits are an additional $3.20 per hour. Manufacturing overhead. Overhead is applied at a rate of $7.60 per direct labor hour. Compute Stefani’s total standard cost per unit

Answers

Answer:

$58.49 per unit

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the total standard cost by using following formula:-

Material Cost Per Unit = Material Cost × (1 - Cash Discount Rate) + Freight Average Cost

= $4 × (1 - 0.02) + .40

= $4 × 0.98 + .40

= $4.32 per pound

Material Used Per Unit = Each Unit Product Contain Material + Average Waste and Spoilage Per Unit Produced

= 3.90 + 1.10

= 5

Direct Material Cost=  Material Cost Per Unit × Material Used Per Unit

= $4.32 × 5

= $21.6 per unit

Cost Per hour = Average hour Pay Rate + Payroll Taxes and Fringe Benefits Cost

= $10.90 + $3.20

= $14.1

Direct Labor hour = Cost Per hour × Each Unit Required hour

= $14.1 × (1.60 + 0.10)

= $14.1 × 1.70

= $23.97 per unit  

Manufacturing Overhead

= Overhead Applied Rate Per Direct Labor hour × Each Unit Required Hour

= $7.60 × (1.60 + 0.10)

= $7.60 × 1.70

= $12.92 per unit

Total Standard Cost Per Unit = Direct Material Cost + Direct Labor Cost + Manufacturing Overhead

= $21.6 + $23.97 + $12.92

= $58.49 per unit

The Computation of Stefani's total standard cost per unit will give result of  $58.49 per unit.

Total Standard Cost

To Calculate Total Standard Cost we need to add Direct Material Cost,   Direct Labor Cost  and Manufacturing Overhead.

A. Direct Material Cost = Material Cost Per Unit × Material Used Per Unit

Material Cost Per Unit = Material Cost × (1 - Cash Discount Rate) + Freight Average Cost

= $4 × (1 - 0.02) + .40

= $4.32 per pound.

Material Used Per Unit = Each Unit Product Contain Material + Average Waste and Spoilage Per Unit Produced

= 3.90 + 1.10

= $5

Direct Material Cost = $4.32 × 5  = $21.6 per unit.

B. Direct Labor Cost

It equals to Cost Per hour × Each Unit Required hour.

Cost Per hour = Average hour Pay Rate + Payroll Taxes and Fringe Benefits Cost

= $10.90 + $3.20

= $14.1

Direct Labor Cost =  $14.1 × (1.60 + 0.10) = $23.97 per unit  

C. Manufacturing Overhead

It equals to Overhead Applied Rate Per Direct Labor hour × Each Unit Required Hour

= $7.60 × (1.60 + 0.10)

= $12.92 per unit.

Total Standard Cost Per Unit = A + B + C = $21.6 + $23.97 + $12.92

= $58.49 per unit

Learn More about Standard Cost here:

https://brainly.com/question/25279292

Joe Jenkins, the owner of Jenkins Manufacturing, is considering whether to produce a new product. Joe will be selling the product for a price of $70 per unit. If he uses the current equipment, Joe estimates the fixed costs per year to be $40,000 and variable costs for each unit produced to be $50. However, Joe is considering the purchase of new equipment that would produce the product more efficiently. Joe’s fixed cost would be raised to $60,000 per year, but the variable cost would be reduced to $25 per unit. If Joe's demand forecast is 900 units, should Joe produce the product using the existing or the new equipment? Produce using the existing equipment. Produce using the new equipment. Does not matter, which equipment is used. The product should not be produced at all.

Answers

Answer:

Jenkins Manufacturing

Joe should produce using the new equipment.

Explanation:

a) Costs incurred using the old equipment:

Variable costs = $45,000 ($50 x 900)

Fixed costs = $40,000

Total costs = $85,000

Operating Loss = $22,000 ($63,000 - 85,000)

b) Costs incurred using the new equipment:

Variable costs = $22,500 ($25 x 900)

Fixed costs = $60,000

Total costs = $82,500

Operating Loss = $19,500 ($63,000 - 82,500)

Production using the new equipment would reduce the operating loss by $2,500.

The company should produce by using the new equipment.

Based on thw information given, the cost that's incurred using the old equipment will be

Variable costs = ($50 x 900) = $45,000

Fixed costs = $40,000

Total costs = Fixed cost + Variable cost

= $40000 + $45,000

= $85,000

Operating Loss will be:

= ($63,000 - 85,000) = -$22000

The costs incurred using the new equipment will be:

Variable costs = ($25 x 900) = $22,500

Fixed costs = $60,000

Total costs = $60000 + $22500 = $82,500

Operating Loss = ($63,000 - 82,500) = -$19,500

Based on the calculation, the company should produce by using the new equipment.

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Information on Carney Company's fixed overhead costs follows: Overhead applied $ 361,200 Actual overhead 387,300 Budgeted overhead 372,000 Required: What are the fixed overhead price and production volume variances? (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Answers

Answer:

The Fixed overhead price is "U" (unfavorable) and the The fixed overhead production volume is "U" (unfavorable)

Explanation:

Solution

Given that:

Fixed overhead price Variance is computed as:

Fixed overhead price Variance  = Actual - Budgeted

= 387,300 - 372,000

= 15,300 U

Thus,

The Fixed overhead production volume variance is computed as:

Fixed overhead production volume variance = = Budgeted - applied

= 372,000 - 361,200

= 10,800 U

Which of the following statements about public speaking skills is most accurate?

a. Effective speaking skills are important for all employees.
b. Individuals are born with the ability to speak effectively in public.
c. The fear of public speaking cannot be conquered.
d. Recruiters rank effective public speaking skills low on their list of most sought-after skills desired in employees.

Answers

Answer:

a

Explanation:

For the employees to be successful in their respective fields ,one of the most essential skill required to succeed is public speaking. Public speaking is about communicating your idea or thoughts in public in an effective ways. It is all about being able to make the other people understand our thoughts.

All other options are absurd as far public speaking skills  are concerned.

Financial statement data for the years ended December 31 for Parker Corporation are as follows: Current Year Prior Year Sales $2,595,600 $2,409,498 Fixed assets (net): Beginning of year $901,070 $820,000 End of year 829,330 901,070 a. Determine the fixed asset turnover ratio for the current and prior years. Round your answers to one decimal place. Current Year: Prior Year: b. Does the change in fixed asset turnover ratio from the prior year to the current year indicate a favorable or unfavorable trend

Answers

Answer:

we need to calculate the Average Fixed assets for both the periods.

Average Fixed Assets = (Fixed Assets at the beginning + Fixed assets at the ending period)/2

Current Year = ($901070+829330)/2

= 1730400/2

=$865200

Prior Year = $820000+901070

= 1721070/2

= $860535

Fixed Assets Turnover = Sales/Average Fixed Assets

Current year = $2595600/865200

= 3

Prior Year = $2409498/860535

= 2.8

b) There is an increase in the Fixed asset turnover which indicates an increase in efficiency of using fixed assets to generate sales.

Answer:

a. Current year 1.5  Prior year 1.4

b.  Yes it indicates a favorable trend as it shows that sales of $1.50 was generated for every $1 invested in current year as against $1.40 for every $1 invested in prior year.

Explanation:

Fixed Asset turnover is the ratio of revenue to average Fixed assets of a company.

It is a financial indicator that shows how much revenue a company generates in an accounting period for each $ 1 invested in assets (fixed asset in this case).

Average assets in the

current year

= $901,070 + $829,330

= $1,730,400

Prior year

= $820,000 + $901,070

= $1,721,070

As such fixed assets turnover for

current year

= $2,595,600/$1,730,400

= 1.5

prior year

= $2,409,498/$1,721,070

= 1.4

Which one of the following statements is correct concerning the mutual fund cash ratio​ (MFCR)? A. When mutual funds have a lot of cash it is a bearish signal because managers are not buying stocks. Your answer is not correct.B. A high MFCR is like high short interest in that it indicates pent up demand. This is the correct answer.C. Low mutual fund cash is bullish because it means managers have been buying stocks. D. High mutual fund cash indicates that fund managers might be forced to sell securities should investors wish to withdraw​ funds, a bearish signal.

Answers

Answer:

Following is the correct statement "When mutual funds have a lot of cash it is a bearish signal because managers are not buying stocks"

Explanation:

When the common assets have a large proportion of cash, it is the indications that stock managers are the market bearish in common and hold back on purchasing.  

Therefore, the correct statement in he given scenario is A and other statement B, C and D are incorrect

Your bagel shop uses both capital and labor in the production of bagels. In this production process capital and labor are substitutes. If you install a new oven and the marginal product of capital increases, you will:

a. reduce the number of workers you employ
b. increase the number of workers you employ
c. reduce the amount of capital you are using not make any changes since you are already maximizing profit

Answers

Answer:

The answer is option A) reduce the number of workers you employ

Explanation:

Installing a new oven is capital intensive. So, for a business person to incur an additional capital cost to aid the efficiency of production, something has to give.

In this case, where capital and labor are substitutes, installing a new oven will drastically reduce the workload thereby necessitating a reduction in the number of workers.

By implication, the cost of paying wages which is a recurrent expenditure will reduce. In the long run and if the oven is maintained, it will e a very cost effective option.

Installing a new oven also suggests a marginal increment in capital.

The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead (a) 486,144 (b) 405,120 Bal. 81,024 Work in Process Bal. 10,880 (c) 754,000 298,500 90,500 (b) 405,120 Bal. 51,000 Finished Goods Bal. 39,000 (d) 662,000 (c) 754,000 Bal. 131,000 Cost of Goods Sold (d) 662,000 The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: Work in Process, ending $ 24,480 Finished Goods, ending 62,880 Cost of Goods Sold 317,760 Overhead applied $ 405,120 For example, of the $51,000 ending balance in work in process, $24,480 was overhead that had been applied during the year. Required: 1. Identify reasons for entries (a) through (d). 2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.

Answers

Answer and Explanation:

As per the data given in the question,

1.

a) Cost of goods manufactured.

b) Cost of goods sold.

c) Overhead cost applied to work in process

d) Actual manufacturing overhead cost.

2. Journal Entry

Manufacturing overhead A/c Dr. 81,024

To cost of goods sold A/c. 81,024

3.

Work in process ending $24,480 =6.04%

Finished goods ending $62,880 =15.52%

Cost of goods sold $317,760 =78.44%

Total cost $405.120 =100%

To calculate overhead allocation :

Work in process ending = ($81,024× 6.04%) =$4,894

Finished goods ending = ($81,024 × 15.52%) =$12,575

Cost of goods sold = ($81,024 × 78.44%) = $63,355

Total cost = $81,024

Journal Entry

Manufacturing overhead A/c Dr. 81,024

To work in process A/c. $4,893

To finished goods A/c. $12,575

To cost of goods sold A/c. $63,555

The following information will be used for 2 questions on this exam: Charlotte Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: Time spent between receipt of order and start of production 3.7 days Time spent ensuring quality levels 0.2 days Time spent working on the product 1.3 days Time spent transporting the product between work stations 0.8 days Time spent waiting to be worked on in the factory 6.9 days What is the throughput time?

Answers

Answer:

6.00 days

Explanation:

data provided

Inspection time = 3.7 days

Process time = 0.2 days

Move time = 1.3 days

Queue time = 0.8 days

The calculation of throughput time is given below:-

Throughput time = Inspection time + Process time + Move time + Queue time

= 3.7 days + 0.2 days + 1.3 days + 0.8 days

= 6.00 days

Here, we added the inspection time, process time , move time and queue time to reach at throughput time and we ignore the time spent waiting to be worked on in the factory as it is not relevant.

g Based on the Keynesian model, one reason to support government spending increases over tax cuts as a tool for stimulating the economy is: Group of answer choices the government-spending multiplier is smaller than the tax multiplier. the government-spending multiplier is larger than the tax multiplier. tax cuts do not cause the budget deficit to increase. increases in government spending do not cause the budget deficit to increase.

Answers

Answer:

The answer is: The multiplier of public spending is greater than the tax multiplier.

Explanation:

Unemployment is caused by insufficient global demand. Therefore, to combat unemployment, aggregate demand (Da) will have to be increased, and for this, according to Keynes' formula, the following components must be acted on:

-Increase demand for consumer goods (C)

To stimulate consumption, taxes will have to be reduced, thus causing an increase in the disposable income of families.

 

-Increase the demand for investment goods (I)

This increase will be achieved by reducing the cost of money; in other words, lowering interest rates, thus encouraging companies to invest.

-Increase public sector demand (G)

It comes from the increase in public spending by the State (more roads, more hospitals).

-Increase the demand of international markets (X-M)

To promote exports, the exchange rate will have to be reduced. Increasing exports boosts domestic production.

On January 1, 2021, Hoosier Company purchased $940,000 of 10% bonds at face value. The bond market value was $985,000 on December 31, 2021. Required: Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Trading securities. Securities available-for-sale. Held-to-maturity securities.

Answers

Answer:

1.

Dr Bonds 940,000

Cr Cash 940,000

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & losses 45,000

2.

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & Losses 45,000

3.

Dr Investment in bonds 985,000

Cr Discount on bond investment 45,000

Cr Cash 940,000

Explanation:

Hoosier Company Journal entries

1.

Dr Bonds 940,000

Cr Cash 940,000

Dr Fair Value adjustment 45,000

($985,000-$940,000)

Cr Net Unrealized holding gains & losses 45,000

2.

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & Losses 45,000

3.

Dr Investment in bonds 985,000

Cr Discount on bond investment 45,000

Cr Cash 940,000

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