Contribution Margin Variance, Contribution Margin Volume Variance, Market Share Variance, Market Size Variance Sulert, Inc., produces and sells gel-filled ice packs. Sulert’s performance report for April follows: Actual Budgeted Units sold 290,000 300,000 Sales $1,450,000 $1,515,000 Variable costs 652,500 636,300 Contribution margin $ 797,500 $ 878,700 Market size (in units) 1,250,000 1,200,000 Required: 1. Calculate the contribution margin variance and the contribution margin volume variance. In your computations, round the contribution margin per unit to three decimal places. Contribution margin variance $ Unfavorable Contribution margin volume variance $ Unfavorable 2. Calculate the market share variance and the market size variance. In your computations, round the unit contribution margin to three decimal places and round the market share percentage to one decimal place (for example, .8439 would be rounded to 84.4%). Round your final answers to the nearest dollar. (CMA adapted) Market share variance $ Unfavorable Market size variance $ Favorable

Answer:

Explanation:

(a)

Given:

Warranty exp = 2% of musical instrument & sound equipment

Calculation:

Warranty exp = Warranty exp * 5,424,000

Warranty exp = 2% * 5,424,000

Warranty exp = 108,480

(b)

Warranty liability as on December 2017 = Opening Balance + Warranty Expense - Warranty Claim

Warranty liability as on December 2017 = 138,000 + 108,480 - 156,400

Warranty liability as on December 2017 = $90,080

(c)

The customer receives one coupon for each dollar spend 2,138,000 only 50% coupon will be redeemed.

Exp provision liability created = 50% * 2,138,000

Exp provision liability created = 1,069,000

Customer can exchange 200 coupon & $30 for MP3 player which is purchase for 42 that mean 200 coupon will be for 12 i.e. (42-30) value of coupon will be

12

200

= 0.06.

Value of 1,069,000 coupon = 1,069,000 * 0.06

Value of 1,069,000 coupon = 64,140

(d)

1,138,000 coupons had been redeemed during the year each MP3 player required 200 coupons.

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Cost = 5,690 * 42

Cost = 238,980

Inventory Premium = Opening Balance + Purchases - Utilized Redeemed Coupon

Inventory Premium = 39,210 + (7,010 * 42) - 238,980

Inventory Premium = 39,210 + 294,420 - 238,980

Inventory Premium = $94,650

(e)

Premium liability balance = Opening Balance + Premium Exp Provision - Coupon Redeemed

Premium liability balance = 41,670 + 64,140 - (1,138,000 * 0.06)

Premium liability balance = 41,670 + 64,140 - 68,280

Premium liability balance = 37,530

Answer:

$1,600

Explanation:

Revenue is recognized as and when the control of a good or service is transferred to the customer.

Total Hours = 10 hours × 8 weeks

                    = 80 hours

Use the rate of pay at the utility office to determine the contribution revenue for Red Wolf Society

Revenue = 80 hours × $20 per hour

               = $1,600

Answer:

a. Annual depreciation = $3,800

b. First year depreciation is $8,000' while second year depreciation is $7,200.

Explanation:

a. Determine the amount of annual depreciation by the straight-line method.

Depreciable amount = $80,000 - $4,000 = $76,000

Annual depreciation = $76,000 / 20 = $3,800

b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar.

Straight line depreciation rate = 1 / 20 = 0.05, or 5%

Double declining depreciation rate = 5% * 2 = 10%

First year depreciation = $80,000 * 10% = $8,000

Second year depreciation = ($80,000 - $8,000) * 10% = $7,200

Answer:

$21.42

Explanation:

The computation of fixed component in the predetermined overhead rate is shown below:-

Fixed component in the predetermined overhead rate = Fixed Overhead ÷ Machine Hours

= $87,822 ÷ 4,100

= $21.42

Therefore for computing the fixed component in the predetermined overhead rate we simply divide the fixed overhead by machine hours.

And all the other information i.e given is not relevant. Hence, ignored it

Answer:

Variable overhead efficiency variance $1,680  Favorable

Explanation:

Variable overhead efficiency variance:  Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.

Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance

                                                                                                      Hours

5000 units should have taken (5000×0.5 hours)                    2,500

but did take                                                                                 2,080  

Labour hours variance                                                                 420  favorable

Standard variable overhead rate                                             ×$ 4.00 per hour

Variable overhead efficiency variance                                   $1,680  Favorable

Answer:

                                                     Zolezzi Inc.

                                          Cash budget for March

                                                       Amount in $'000                          

Opening balance                                27

Add;

Cash receipts                                    104      

Less;

Cash disbursements                        (87)                

Ending balance                                  44  

Amount to be borrowed                   26  

Desired ending balance                   70                                                                                                

Explanation:

The cash budget a forecast of the expected movement in cash balance. This is as a result of expected cash receipts and disbursements and may be expressed mathematically as

opening cash balance + cash receipts - Cash disbursed = closing cash balance

27 + 104 - 87 = ending balance

Ending balance = 44

Desired ending balance = 70

Amount to be borrowed = 70 - 44

= 26

Answer:

The total cost of operating the Maintenance Department for the current period is $29,580

Explanation:

In order to calculate The total cost of operating the Maintenance Department for the current period we would have to calculate first the Overhead allocated to Maintenance from Payroll department as follows:

Overhead allocated=Payroll overhead×(Maintenance payroll personnel/Total personnel)

Overhead allocated=$ 20,400×(15/15+15+45)

Overhead allocated=$4,080

Therefore, to calculate the The total cost of operating the Maintenance Department for the current period we would have to use the following formula:

Total cost of operating Maintenance Department=Overhead allocated+Direct overhead incurred

Total cost of operating Maintenance Department=$4,080+$25,500

Total cost of operating Maintenance Department=$29,580

The total cost of operating the Maintenance Department for the current period is $29,580

Answer:

Explanation:

a.

Prepare the journal entry to record the issuance of the bonds on January 1, 2019.

Accounting homework question answer, step 1, image 1

Accounting homework question answer, step 1, image 2

Step 2

b.

Prepare a bond amortization schedule up to and including January 1, 2023, using the effective-interest method.

The file attached below has the calculations

Answer: The answer is provided below

Explanation:

The net income is excess of revenues over expenses after the adjustment for depreciation expense and the income tax expense. Net income is also called the net profit.

(a) Equipment (with a useful life of 5 years) was purchased and expensed in 2018.

2020 : It will be overstated in the net income.

2021: It will be overstated in the net income.

b. Wages payable were not recorded at 12/31/20.

2020: It will be overstated in the net income.

2021: It will be understated in the net income.

c. Equipment purchased in 2020 was expensed.

2020: It will be understated in the net income.

2021: It will be overstated in the net income

d. 2020 ending inventory was overstated.

2020: It will be overstated in the net income.

2021: It will be understated in the net income.

e. Patent amortization was not recorded in 2021.

2020: It will be no effect in the net income.

2021: It will be overstated in the net income

Answer:

$1,042,500.

Explanation:

From the question above, we are given the following parameters; under the bid, we have $1.42 = €1.00 and $1.48 = €1.00; the borrowing and lending are $ 4.25% and 4% APR respectively for S0($/€).

Also, for F360($/€), the bid and ask values are: $1.48 = €1.00 and $1.50 = €1.00 respectively; the borrowing and lending values are 3.10% APR and 3% APR.

Therefore, the Borrowing rate is ($) 4.25% in $ . Thus, $1,000,000 for one year, one we owe

$1,000,000 × (1 + 0.0425) = $1,042,500 at maturity.

Answer:

Production= 235,950 units

Explanation:

Giving the following information:

Sales= 232,200 units during the coming year.

Desired ending inventory= one month's sales

Beginning inventory= 15,600 units.

First, we need to calculate the desired ending inventory:

Desired ending inventory= 232,200/12= 19,350

Now, we can determine the production for the year:

Production= sales + desired ending inventory - beginning inventory

Production= 232,200 + 19,350 - 15,600

Production= 235,950 units

Answer:

Cost of Equipment: $10,000

Less Accumulated Depreciation ($10,000 - $2,000 / 4*2):   $4,000

= Book Value (End of Year 2):     $6,000

Less New Residual Value:       $-1,000

= New Depreciated Cost: $5,000

Remaining Service Life:  4

Annual Depreciation in Years 3 to 6 ($5,000 / 4):  $1,250

Answer:

$215,000

Explanation:

Retained Earning is an equity account and its balance is credit in nature. It is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.

Any prior years adjustment in the revenue and expense will be recorded in the retained earning because it carry the accumulated profit all the prior years.

The premium on insurance for only one year should be recorded, but premium of 3 years is expense in 2020, from which there is an advance premium of 2 years.

Adjustment Value = $30,000 x 2/3 x (1-0.25) = $15,000

The adjustment should be added in the retained earning balance as it was expensed earlier.

Adjusted retained earning balance = $200,000 + $15,000 = $215,000

Answer:

Dr    Cash   $2,032,577.26

Cr premium on bonds payable  $122,577.26  

Cr bonds payable                        $1,910,000

Explanation:

First and foremost the proceeds received from the bond issuance needs to determine the pv formula in excel as follows:

=-pv(rate,nper,pmt,fv)

rate is the yield  to maturity of 9%

nper is the number of annual coupons payable by the bond which is 10

pmt is the amount of annual coupon i.e  $1,910,000*10%=$191000

fv is the face value of the bond which is  $1,910,000

=-pv(9%,10,191000,1910000)=$2,032,577.26  

premium on bonds issuance= 2,032,577.26-1,910,000.00= $122,577.26  

Answer and Explanation:

The journal entries are shown below:

On Jan 1

Cash $400,000

           To Bonds payable  $400,000

(Being the bond is issued for cash)

For recording this we debited the cash as it increased the assets and at the same time it increased the liabilities so the bond payable is credited

On July 1

Interest expense  $14,000

             To Cash  $14,000

(Being the payment of interest is recorded)

The computation is shown below:

= $400,000 × 7% × 6 months ÷ 12 months

= $14,000

For recording this we debited the expenses as it increased the expenses and at the same time it decreased the assets so the cash is credited

On Dec 31

Interest expense $14,000

           To Interest payable $14,000

(Being the accrual of interest is recorded)

For recording this we debited the expenses as it increased the expenses and at the same time it increased the liabilities so the interest payable is credited

Answer:

$800,000

Explanation:

As per the data given in the question,

Beerbo expects patent's useful life to expire on Dec-31 2023.

At the beginning of 2020 / end of 2019, the value of the patent in Beerbo's book = $1,000,000 - ($1,000,000 ÷ 10×2))

= $800,000

Amortix patent year = 4

Patent amortization expense at the end of 2020 = $800,000 ÷ 4

=$200,000

Answer:

$4,500 U

Explanation:

Teall Corporation

Budget variance = Actual fixed overhead cost − Budgeted fixed overhead cost

Actual total fixed manufacturing overhead $ 59,500

Less Budgeted fixed manufacturing overhead cost $ 55,000

Fixed manufacturing overhead budget variance for the month $4,500 U

Therefore the fixed manufacturing overhead budget variance for the month is $4,500 U

Answer:

a) The number, q, of units that produces maximum profit = 15

b) The price, p, per unit that produces maximum profit = 47 (currency not giben in the question)

c) Maximum Profit = P = 380 (currency not given in the question).

Explanation:

The cost function and price per unit function are given respectively as

C(q) = 70 + 17q

p = 77 - 2q

where q = quantity or number of units

a.) the number, q, of units that produces maximum profit

Total cost = C(q) = 70 + 17q

Revenue = (price per unit) × (Number of units) = p × q = (77 - 2q) × q = (77q - 2q²)

Profits = P(q) = (Revenue) - (Total Cost)

P(q) = (77q - 2q²) - (70 + 17q)

P(q) = -2q² + 60q - 70

To maximize the profits, we just obtain the point where the profit function reaches a Maximum.

At the maximum of a function, (dP/dq) = 0 and (d²P/dq²) < 0

Profit = P(q) = -2q² + 60q - 70

(dP/dq) = -4q + 60

At maximum point,

(dP/dq) = -4q + 60 = 0

q = (60/4) = 15

(d²P/dQ²) = -4 < 0 (hence, showing that the this point corresponds to a maximum point truly)

Hence, the number, q, of units that produces maximum profit = 15.

b.) the price, p, per unit that produces maximum profit

The price per unit is given as

p = 77 - 2q

Maximum profit occurs at q = 15

p = 77 - (2×15) = 47

Hence, the price, p, per unit that produces maximum profit = 47 (currency not given in the question)

c.) the maximum profit, P.

The Profit function is given as

Profit = P(q) = -2q² + 60q - 70

At maximum Profit, q = 15

Maximum Profit = P(15)

= -2(15²) + 60(15) - 70

= 380 (currency not given in the question).

Hope this Helps!!!

A) The number, q, of units that produce maximum profit is = 15

B) The price, p, per unit that creates maximum profit is = 47

C) Maximum Profit is = P = 380

When The cost procedure and price per unit procedure are presented respectively as:

C(q) is = 70 + 17q

p is = 77 - 2q

where that q is = quantity or number of units

a.) When the number, q, of units that produce maximum profit

The Total cost is = C(q) = 70 + 17q

When the Revenue is = (price per unit) × (Number of units) that is = p × q = (77 - 2q) × q is = (77q - 2q²)

After that Profits is = P(q) = (Revenue) - (Total Cost)

Then P(q) is = (77q - 2q²) - (70 + 17q)

Now, P(q) is = -2q² + 60q - 70

When To maximize the profits, Then we just obtain the point where the profit function reaches a Maximum.

When At the maximum of a function, (dP/dq) is = 0 and (d²P/dq²) < 0

Profit is = P(q) = -2q² + 60q - 70

(dP/dq) is = -4q + 60

Then At maximum point are:

(dP/dq) is = -4q + 60 = 0

After that, q = (60/4) = 15

Then (d²P/dQ²) = -4 < 0 (hence, showing that this point corresponds to a maximum point truly)

Therefore, the number, q, of units that produce maximum profit is = 15.

b.) When the price, p, per unit that produces maximum profit

The price per unit is given as

p is = 77 - 2q

Then Maximum profit occurs at q is = 15

p is = 77 - (2×15) = 47

Therefore, the price, p, per unit that produces maximum profit is = 47 (currency not provided in the question)

c.) When the maximum profit, P.

The Profit function is given as

Profit is = P(q) = -2q² + 60q - 70

Then At maximum Profit, q = 15

So, The Maximum Profit is = P(15)

Then = -2(15²) + 60(15) - 70

Therefore, = 380 (currency not given in the question).

Find more information Cost and price function here:

https://brainly.com/question/17185609

Answer:

d. $149200.

Explanation:

Depreciation is a method used in expensing the cost of an asset.

Deprecation expense using the straight line method = (Cost of asset - Salvage value) / useful life

Cost of asset = $347,000 + $5,000 + $32,000 = $384,000

( $384,000 - $11,000) / 5 = $74,600

Deprecation expense each year would be $74,600.

Accumulated depreciation in 2019 would be the sum of deprecation expense in 2018 and 2019

$74,600 × 2 = $149,200

I hope my answer helps you

Answer:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

$1,550,000

Explanation:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

The manager should be short on the stock index futures because the position on the equity portfolio is long.

Number of contracts required to hedge

= [$20,500,000/(1250*250)] * 1.25 = 82 contracts

Profit on the equity portfolio

= $20,000,000 - $20,500,000 = -$500,000

Profit on the stock index future

= [(1250)(250) – (1150)(250)] x 82 = $2,050,000

Overall profit

=  $2,050,000 - $500,000

= $1,550,000

therefore, the overall profit is  $1,550,000

Answer and Explanation:

The computation of the payback period is shown below:

1. Payback period = Initial investment ÷ Net cash flow      

where,

Initial investment is $520,000

Net cash flow is =  incremental after-tax income + depreciation expense

= $150,000 + $85,000

= $235,000

The depreciation expense is

= ($520,000 - $10,000) ÷ (6 years)

= $85,000

Now the payback period is

= $520,000 ÷ $235,000

= 2.21 years

2. Payback period = Initial investment ÷ Net cash flow      

where,

Initial investment is $380,000

Net cash flow is =  incremental after-tax income + depreciation expense

= $60,000 + $45,000

= $105,000

The depreciation expense is

= ($380,000 - $20,000) ÷ (8 years)

= $45,000

Now the payback period is

= $380,000 ÷ $105,000

= 3.62 years

Answer:

I, III and IV Only.

Explanation:

A municipal bond is explained to be a debt obligation issued by a nonprofit organization, a private-sector corporation or another public entity using the loan for public projects such as constructing schools, hospitals and highways.

A municipal bond is categorized based on the source of its interest payments and principal repayments. A bond can be structured in different ways offering various benefits, risks and tax treatments. Income generated by a municipal bond may be taxable.

Answer: I) A municipal bond is a debt obligation issued by state or local governments.

III) The interest income from a municipal bond is exempt from federal income taxation.

IV) The interest income from a municipal bond is exempt from state and local taxation in the issuing state.

Explanation:

A municipal bond is usually a debt security issued by a state, or local government to finance its capital expenditures, which usually includes the construction of Roads, Bridges or Institutions( schools ). They can be considered as loans that an investor gives to local governments. This kind of bonds are exempted from federal taxes and most state and local taxes, Which makes them very attractive to interested individuals who are on high income tax brackets.

Answer:

The correct answer to the given question is “D – Short-Run Aggregate Supply Left”

Explanation:

While the problem is there for offering and deriving, less asset is being completed on the budget. Thus due to the lack of capital. The investment standard growing will decrease and therefore as an outcome, short run cumulative source curve will move to the left.

Answer:

Direct material quantity variance= $20,628.3

Explanation:

Giving the following information:

Standard quantity per unit of output 5.3 pounds

Standard price $14.10 per pound

Actual materials used in production 5,650 pounds

Actual output 790 units

To calculate the direct material quantity variance, we need to use the following formula.

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (5.3*790 - 5,650)*14.1

Direct material quantity variance= $20,628.3

Explanation:

The following are my SMART goals:-

Specific

1. I want to be physically fit within 6 months on order to be able to run a marathon in less than 3 hours.

2. I want to become a manager in my current organization from my current position as an assistant manager within the next 3 years in order to be able lead a team.

3. I want to be a lovable dad to my daughter in the next 3 months so that I can spend more quality time with her.

4. I want to become an amazing husband to my wife by spending more quality time with her and also taking her on vacations in the next 6 months.

Measurable

1. I would start my training from next week. Initially I would run 3 to 5 kilometers with walk breaks.

2. I would talk to my boss next week to ask for more responsibilities and also to ask him to let me know what is required to get promoted.

3. I would start leaving office early by being more efficient and effective in the office. I will also take my daughter on walks and play with her for 1 hour daily.

4. I would come back from office early and spend time with my wife.

Attainable

1. I will talk to other marathoners to know whether my goal is attainable and will also research about it.

2. I will talk to my colleagues whom are managers about what they did to get promoted.

3. I will talk to other dads to know whether my goal is attainable.

4. I will talk to other husbands that are successful.

Realistic

When I start measuring my progress weekly and getting a feedback from people whom I admire, then I would know how realistic my goals are.

Timely

I have given a time frame for the attainment of all these goals which is very vital.

For implementing these goals, I m going to use the Plan-Do-Act-Dare cycle.

Since my objective is to become a well rounded person in my personal and also my professional life, the above steps will surely help me in becoming that person.

The strategy diamond will consist of:-

1. Arenas- Professional and Personal

2. Vehicles- Focus and hard work

3. Differentiation- Being different and unique from others.

4. Staging- Speed of initiatives

Also, there should be an economic logic binding this.

Answer:

Indigo Incorporated Journal entrie

Dr Cash 121,590

Dr Due from Factor 9,457

Dr Loss on Sale of Receivable 4,053

Cr Accounts Receivable 135,100

Sweet Factors Inc

Dr Account Receivable 135,100

Cr Due to Customer 9,457

Cr Finance Revenue 4,053

Cr Cash 121,590

Explanation:

Indigo Incorporated Journal entries

Dr Cash 121,590

Dr Due from Factor 9,457

Dr Loss on Sale of Receivable 4,053

Cr Accounts Receivable 135,100

Sweet Factors Inc

Dr Account Receivable 135,100

Cr Due to Customer 9,457

Cr Finance Revenue 4,053

Cr Cash 121,590

Due from Factor = 7% x $135,100 = $9,457

Loss on Sale of Receivables = 3% x $135,100= $4,053

Answer:

See below the statement of Cash flow from Vandy Corporation.

Explanation:

Vandy Corporation

Statement of Cash Flow

CASH FLOW FROM OPERATING ACTIVITIES:

Net Income                                                                                     $104

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation on Fixed Assets ($349-$319+$12)                             $42

Gain on Sale of Equipment                                                              ($16)

(Increase) Decrease in Current Assets:

Accounts Receivables                                                                       $12

Inventory                                                                                             $2

Increase (Decrease) in Current Liabilities:

Accounts Payable                                                                              ($1)

Accrued Liabilities                                                                              ($1)

Income taxes payable                                                                        $4

Net Cash provided by Operating Activities                                $146

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of Equipment                                                    $18

Purchase of Property, plant and equipment ($684-$550+$14)     ($148)

Net Cash Flow from Investing Activities                                      ($130)

CASH FLOWS FROM FINANCING ACTIVITIES:

Bonds Payable                                                                                       $13

Issuance of Common Stock                                                                   $1

Payment of Dividends                                                                       ($28)

Net Cash from Financing Activities                                                ($14)

Net Increase (Decrease) in Cash                                                        $2

Opening Cash Balance                                                                       $29

Ending Cash Balance                                                                           $31

Answer:

a. ASC 450 (previously recognized as SFAS 5) includes the declaration of a risk in proceedings and there is at minimum a "fair probability" that a loss has been sustained, and the report must provide an estimation of the probable damage or extent of damage or a declaration that this very calculation is not practicable.

b. Three specific criteria dictate however much depreciation they can subtract: (1) the real estate value, (2) the property rehabilitation time and (3) the form of depreciation utilized. You can't actually subtract as an benefit the lease or interest contributions, or the cost of furniture, decorations and appliances. The depreciation will only be deducted on the specific property used during leasing purposes.

c. For overclockers as well as operation in the federation the Computer is still the obvious winner. If you want to change hardware to maintain the cutting edge of your program, then a Laptop is the way forward. Further software must be installed for the PC like a large and ever-growing free software computer collection. Even so, thanks to an embedded tool named "Boot camp," you can install a Windows ® operating system on a Mac along with PC applications

Answer:

The amount of the debit to "interest expense" on October 1, 2020 is $194,700

Explanation:

According to the given data we have the following:

Bond face value=$7,080,000

interest rate=11%

There are 3 months interest recognized from july to september, therefore, to calculate the amount of the debit to "interest expense" on October 1, 2020 we would have to make the following calculation:

amount of the debit to "interest expense" on October 1, 2020=$7,080,000*11%*3 months / 12 months

amount of the debit to "interest expense" on October 1, 2020=$194,700

The amount of the debit to "interest expense" on October 1, 2020 is $194,700

Answer:

$127,000

Explanation:

Suire Corporation Net operating income

Sales $ 600,000

Variable Costs $ 241,000

Contribution Margin $ 359,000

Fixed Expenses $232,000

Net Operating Income $127,000