Cost pools should be charged to responsibility centers by using: budgeted amounts of allocation bases because the cost allocation to one responsibility center should influence the allocations to others. some other approach. budgeted amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others. actual amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others. actual amounts of allocation bases because the cost allocation to one responsibility center should influence the allocations to others.

Answers

Answer 1

Answer: budgeted amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others

Explanation:

A cost pool is a collection of homogeneous costs thqt are to be assigned. Cost pools is an accounting term which refers to the groups of accounts serving used to express the cost of goods and service that are allocatable within a business or a manufacturing organization. The allocation base for a cost pool is a cost driver.

Cost pools should be charged to the responsibility centers by using the budgeted amounts of allocation bases. This is because the cost allocation to a responsibility center should not influence allocations to others.


Related Questions

All of the following statements regarding leases are true except _______.
Multiple Choice:
A) For a finance lease, the lessee records the leased item as its own asset.
B) For a finance lease, the lessee amortizes the right-of-use asset acquired under the lease.
C) Finance leases create a liability on the balance sheet.
D) Finance leases do not transfer ownership of the asset under the lease, but operating leases often do.
E) For a short-term lease of a few days or weeks, the lessee records payments as rental expense.

Answers

Answer:

I think its D

Explanation:

Hpe this helps.

All of the following statements regarding leases are true except finance leases do not transfer ownership of the asset under the lease, but operating leases often do. Thus, option (d) is correct.

What is finance?

Finance includes borrowing money to go through tough times, saving money, and investing money. Finance is the provision of funds for credit against anything. Personal, public, and business finance are the three different categories.

Capital leases and finance leases are both common terms for the same thing. The duration of long-term leases is usually anticipated. When the operating lease expires, the leasing firm will return the asset.

Therefore, option (d) is correct.

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In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 57,000 Accounts payable increased by 23,000 Accounts receivable decreased by 35,000 Inventories decreased by 10,000 Cash dividends paid were 19,000 Depreciation expense was 30,000 Net cash provided by operating activities was:

Answers

Answer:

Net Cash Flow from Operating Activities = $155,000

Explanation:

              Cash flow from Operating activities:          

Particular                                                        Amount      

Income During the year                         $57,000  

Adjustments :    

Depreciation                                                   $30,000  

Changes in Current assets and liabilities:    

decreased in Accounts receivable           $35,000  

decreased in Inventory                                   $10,000  

increased in Accounts payable                   $23,000  

Net Cash Flow from Operating Activities   $155,000  

Note: Dividend paid compute under financing activities.

Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 37,000 customers, but actually served 27,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $5.50q

Wages and salaries: $35,200 + $1.70q

Supplies: $1.10q

Insurance: $12,400

Miscellaneous expenses: $8,400 + $0.50q

The company reported the following actual results for February:

Revenue $ 159,800
Wages and salaries $ 70,000
Supplies $ 16,400
Insurance $ 12,400
Miscellaneous expense $ 27,700


Required:

Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Answers

Answer and Explanation:

The preparation of company's flexible budget performance report for February is shown below:-

                                    Arrasmith Corporation

                           Flexible budget performance report

                             For the month ended February

                        Planing     Activity      Flexible   Revenue and   Actual

                        budget       variance    budget   spending           result

                                                                                 variance

Customer

served               37,000       -                  27,000                           27,000

Revenue         $203,500    $55,000 U  $148,500  $11,300 F     $159,800

               (37,000 × $5.50q)              (27,000 × $5.50q)    

Expenses

Wages and

salaries           $98,100      $17,000 F     $81,100     $11,100 F        $70,000

      (37,000 × 1.70) + 35,200)             (27,000 × 1.70) + 35,200

Supplies          $40,700     $11,000 F      $29,700   $13,300 F      $70,000

                             (37,000 × 1.10)       (27,000 × 1.10)

Insurance        $12,400     $0                   $12,400      0                 $12,400

Miscellaneous

expenses        $26,900    $5,000 F       $21,900      $5,800 U      $27,700

             (37,000 × 0.50) + 8,400        (27,000 × 0.50) + 8,400

Total

expenses     $178,100        $33,000 F   $141,500     $18,600 F      $126,500

Net operating

income            $25,400    $22,000 U    $3,400       $29,900 F      $33,300

Therefore to reach net operating income we simply deduct the total expenses from Revenue.

Answer and Explanation:

As per the data given in the question,

ArraSmith Corporation

Flexible budget performance report

                    Planning    Activity      Flexible   Revenue & spending    Actual

                       budget     Variance    budget      Variance                     Results

Customer served 37,000                    27,000                                        27,000

Revenue       $203,500  $55,000 U   $148,500       $11,300 F          $159,800

Expenses:

Wages and Salaries $98,100 $17,000 F $81,100       $11,100 F          $70,000

Supplies      $40,700      $11,000 F     $29,700         $13,300 F         $16,400

Insurance    $12,400           0              $12,400                 0                 $12,400

Miscellaneous expense $26,900 $5,000 F $21,900 $5,800 U       $27,700

Total expense $178,100 $33,000 F $145,100 $18,600 F $126,500

Net Operating Income $25,400 $22,000 U $3,400  $29,900 F   $33,300

The average starting salary for this year's graduates at a large university (LU) is $20,000 with
a standard deviation of $8,000. Furthermore, it is known that the starting salaries are normally
distributed.
a. What is the probability that a randomly selected LU graduate will have a starting salary
of at least $30,400? (3 marks)
b. What is the probability that a randomly selected LU graduate will have a salary of
exactly $30,400? (2 marks)
c. Individuals with starting salaries of less than $15600 receive a low income tax break.
What percentage of the graduates will receive the tax break? (2 marks)
d. If 189 of the recent graduates have salaries of at least $32240, how many students
graduated this year from this university? (3 marks)

Answers

Answer:

a) The probability that a randomly selected LU graduate will have a starting salary of at least $30,400 = P(x ≥ 30400) = 0.0968

b) The probability that a randomly selected LU graduate will have a salary of exactly $30,400 = 0.000021421

c) Percentage of students that will receive a tax break = 29.12%

d) Total Number of graduates this year = 3,000

Explanation:

This is a normal distribution problem with

Mean = μ = $20,000

Standard deviation = σ = $8,000

a) The probability that a randomly selected LU graduate will have a starting salary of at least $30,400 = P(x ≥ 30400)

We first normalize or standardize $30,400

The standardized score for any value is the value minus the mean then divided by the standard deviation.

z = (x - μ)/σ = (30400 - 20000)/8000 = 1.30

The required probability

P(x ≥ 30400) = P(z ≥ 1.30)

We'll use data from the normal probability table for these probabilities

P(x ≥ 30400) = P(z ≥ 1.30) = 1 - P(z < 1.30)

= 1 - 0.90320

= 0.0968

b) The probability that a randomly selected LU graduate will have a salary of exactly $30,400

Here, we will use the normal distribution formula. The normal distribution formula is presented in the attached image

P(X = x) = f(x) = [1 ÷ σ√(2π)] × e^(-0.5z²)

x = $30,400

σ = $8,000

z = 1.30

P(X = 30400) = f(30400) = 0.000021421

c) Individuals with starting salaries of less than $15600 receive a low income tax break.

What percentage of the graduates will receive the tax break?

Required probability = P(x < 15600)

We first normalize or standardize $15,600

z = (x - μ)/σ = (15600 - 20000)/8000 = -0.55

The required probability

P(x < 15600) = P(z < -0.55)

We'll use data from the normal probability table for these probabilities

P(x < 15600) = P(z < -0.55)

= 0.29116 = 29.116% = 29.12%

d) If 189 of the recent graduates have salaries of at least $32240, how many students

graduated this year from this university?

We first find the percentage of LU graduates with salaries more than $32240

Required probability = P(x ≥ 32240)

We first normalize or standardize $32,240

z = (x - μ)/σ = (32240 - 20000)/8000 = 1.53

The required probability

P(x ≥ 32240) = P(z ≥ 1.53)

We'll use data from the normal probability table for these probabilities

P(x ≥ 32240) = P(z ≥ 1.53) = 1 - P(z < 1.53)

= 1 - 0.93699

= 0.06301 = 6.301%

So, 6.301% of the graduates this year = 189

Total Number of graduates this year = (189/0.06301) = 2999.5 = 3000 graduates this year.

Hope this Helps!!!

The following is cash flow data for Rocket Transport: Cash dividend $ 98,000 Purchase of bus $ 18,000 Interest paid on debt $ 25,000 Sales of old equipment $ 45,000 Repurchase of stock $ 127,000 Cash payments to suppliers $ 125,000 Cash collections from customers $ 480,000 a. Find the net cash provided by or used in investing activities. (Input the amount as positive value.) b. Find the net cash provided by or used in financing activities. (Input the amount as positive value.)

Answers

Answer:

a. Net cash flows from investing activities       $27,000

b. Net cash flows from investing activities   ($225,000)

Explanation:

Rocket Transport

Statement of cash flows (extract)

Purchase of vehicle                                          ($18,000)

Proceeds from disposal of equipment            $45,000

Net cash flows from investing activities       $27,000

Dividend paid                                                  ($98,000)

Repurchase of stock                                      ($127,000)

Net cash flows from investing activities   ($225,000)

Note that interest paid, cash payments to suppliers and cash collections from customers affect the net cash flows from operating activities.

Answer:

Net Cash flow from Investing activities   $27,000

Net Cash flow from Financing activities ($250,000)

Explanation:

a.

All the cash flows related to the fixed asset is called cash flows from the investing activities. Cash inflows from the sale fixed asset and cash outflows from the purchase of fixed assets are included in it.

Purchase of bus                                       ($18,000)

Sales of old equipment                            $45,000

Net Cash flow from Investing activities $27,000

b.

Cash flow from financing activities is the cash inflows and outflows related to the fund of the business.

Cash dividend                                             ($98,000)

Repurchase of stock                                   ($127,000)

Interest paid on debt                                   ($25,000)

Net Cash flow from Financing activities     ($250,000)

The standard direct labor cost per unit for a company was $24 (= $15 per hour × 1.6 hours per unit). During the period, actual direct labor costs amounted to $145,600, 9,500 labor-hours were worked, and 6,600 units were produced. Required: Compute the direct labor price and efficiency variances for the period. (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:

$3,135 unfavorable

$9,937.50 unfavorable

Explanation:

The formula and the computation of the direct labor price and efficiency variance is shown below:

Direct labor price variance

= (Standard rate - Actual rate) × Actual hours of production

= ($15- $145,600 ÷ 9,500 hours )  × 9,500 labor hour worked

= ($15 - $15.33) × 9,500 labor hour worked

= $3,135 unfavorable

Labor efficiency variance is

= (Actual production - standard production) × standard rate per unit

= (6,600 units - 9,500 hours ÷ 1.6 hours) × $15

= (6,600 units - 5,937.0) × $15

= $9,937.50 unfavorable

Since the actual hours is  more than the standard one so it would lead to unfavorable variance

Selected data from the Florida Fruit Company are presented below: Total assets $1,500,000 Average total assets 1,850,000 Net income 175,000 Net sales 1,300,000 Average common stockholders' equity 1,000,000 Net cash provided by operating activities 275,000 Assume that no dividends were declared or paid during the period. Collapse question part (a) Calculate the profit margin. (Round answer to 1 decimal place, e.g. 15.2%.) Profit margin Enter percentages rounded to 1 decimal place %

Answers

Answer:

13.5%

Explanation:

Relevant data provided for computing the profit margin which is here below:-

Net Income = $175,000

Net Sales = $1,300,000

The computation of profit margin is shown below:-

Profit Margin = (Net Income ÷ Net Sales) × 100

= ($175,000 ÷ $1,300,000) × 100

= 13.5%

Therefore for computing the profit margin we simply applied the above formula.

Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $25, computed as follows: Direct materials $ 8 Direct labor 8 Variable manufacturing overhead 3 Fixed manufacturing overhead 6 Unit product cost $ 25 An outside supplier has offered to provide the annual requirement of 3,800 of the parts for only $14 each. The company estimates that 50% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:

Answers

Answer:

financial advantage : $30,400

Explanation:

Analysis of the Make or Buy Decision

Purchase Cost (3,800×$14)                                    (53,200)

Savings :

Fixed manufacturing overhead($6×50%×3,800)     11,400

Direct Labor ($8×3,800)                                           30,400

Direct materials ($8×3,800)                                     30,400

Variable manufacturing overhead (3×3,800)           11,400

Financial Advantage                                                30,400

Therefore, the financial advantage of purchasing the parts from the outside supplier would be $30,400.

Brad operates a storage business on the accrual method. On July 1 Brad paid $48,000 for rent on his storage warehouse and $18,000 for insurance on the contents of the warehouse. The rent and insurance cover the next 12 months. What is Brad's deduction for the rent and insurance?

Answers

Hi I neeed a dollar

Use of the marginal cost of capital

a. None of these options are correct.
b. recognizes that the return from the last dollar of funds generated should be greater than or equal to the cost of the last dollar of funds raised.
c. acknowledges that when retained earnings are used up as a source of equity, the cost of capital rises as new common stock is sold to support more growth and recognizes that the return from the last dollar of funds generated should be greater than or equal to the cost of the last dollar of funds raised.
d. acknowledges that when retained earnings are used up as a source of equity, the cost of capital rises as new common stock is sold to support more growth.

Answers

Answer:

The correct answer is the option B: recognizes that the return from the last dollar of funds generated should be greater than or equal to the cost of the last dollar of funds raised.

Explanation:

To begin with, the concept of ''marginal cost of capital'' refers to the composite rate of return that is required by the shareholders and the debt-holders in order to establish a new investment in the actual company. Moreover, this type of cost relates to the weighted average cost of the last dollar of new capital raised by the company and is has the necessity of being greater than or at least equal to the cost of the last dollar of funds raised due to the fact that only in that way the investors will consider to invest again in a new project for the company.

The Edwards Construction Supply Company is adopting a just-in-time inventory system. Jim Edwards, the president, has decided that restocking only when the inventory falls below a specific level will save the company thousands of dollars. Many of Edwards’ employees have been with the company for 30 years or more, and change like this might be unsettling for them. Edwards knows that his employees will be more comfortable with the system if their supervisors understand it fully. What purpose will this meeting serve?

Answers

Answer: To Provide a Smooth Transition

Explanation:

As the text mentions, many of Edwards’ employees who have been with the company for 30 years or more, might find change unsettling. However, they trust their supervisors enough to be comfortable if the Supervisors understand the new system.

For this reason, this meeting is very important as it is a chance to get the supervisors on board. Here the Edwards Company can explain in detail the new system so that the Supervisors can understand it thoroughly so that the employees might be able to follow them. Any questions or concerns can be dealt with which would make the transition smoother for the company and it's employees.

niversal Studios sold the Mamma​ Mia! DVD around the world. Universal charged​ $21.40 in Canada and​ $32 in Japanlong dashmore than the​ $20 it charged in the United States. Assume​ Universal's marginal cost of production​ (m) is ​$1.20. Determine what the elasticities of demand must be in Canada and in Japan if Universal is profit maximizingLOADING.... The elasticity of demand in Canada must be epsilon Subscript Upper Cequals nothing. ​(Enter a numeric response using a real

Answers

Answer:

Explanation:

Lerner Index = -1 / Elasticity of demand = (P - MC) / P

(1) Canada:

- 1 / Ec = (21.4 - 1.20) / 21.4

- 1 / Ec = 20.2 / 21.4

- 1 / Ec = 0.9344

Ec = -1 / 0.9344

Ec = - 1.059

(2) Japan:

Lerner Index = -1 / Elasticity of demand = (P - MC) / P

- 1 / Ej = (32 - 1.2) / 32

- 1 / Ej = 30.8 / 32

- 1 / Ej = 0.9625

Ej = -1 / 0.9625

Ej = - 1.039

Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign.)

Selected 2017 Income Statement Data Selected Year-End 2017 Balance Sheet Data
Net income $ 440,000 Accounts receivable increase $ 47,600
Depreciation expense 84,500 Prepaid expenses decrease 16,800
Gain on sale of machinery 25,100 Accounts payable increase 6,200
Wages payable decrease 2,900
Cash flows from operating activities
Adjustments to reconcile net income to operating cash flow
$
0
$0

Answers

Answer:

Salud's cash flows from operating activities is $471,900.

Explanation:

Salud Company

Cash flows from operating activities

Adjustments to reconcile net income to operating cash flow

Net income                                                      $440,000

Add: Depreciation expense                               84,500

Less: Gain on sale of machinery                       (25,100)

Less: Accounts receivable increase                 (47,600)

Add: Prepaid expenses decrease                      16,800

Add:  Accounts payable increase                        6,200

Less: Wages payable decrease                         (2,900)

Net cash flows from operating activities    $471,900

A well-known financial writer argues that he can earn 148 percent per year buying wine by the case. Specifically, he assumes that he will consume one $12 bottle of fine Bordeaux per week for the next 12 weeks. He can either pay $12 per week or buy a case of 12 bottles today. If he buys the case, he receives a 9 percent discount and, by doing so, earns the 148 percent. Assume he buys the wine and consumes the first bottle today. Calculate the EAR.

Answers

Answer:

EAR = 148%

Explanation:

calculating the EAR ( applying the formula for present value of annuity )

cost of case = 12 * 12 * ( 1 - 0.09 ) = 131.04

Pv   =  131.04

cost per case =  $12

no of weeks = 12 weeks

rate of the wine per ( IRR ) = IRR(57;56;55;;;;1)=  1.76319

rate of the wine per week = 1.76319%

therefore EAR = ( 1 + 0.0176319) ^52 - 1 = 148.15% ≈ 148%

ABC Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. It uses weighted-average costing. "What is the direct materials cost per equivalent unit during June?"

Answers

Answer:

The completed question is

ABC Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost​ categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses weighted−average costing.

Data for the Assembly Department for June 2017 are​:

     Work in​ process, beginning inventory

380 units

Direct materials​ (100% complete)

          Conversion costs (50​% ​complete)

     Units started during June

950 units

     Work in​ process, ending​ inventory:

160 units

          Direct materials​ (100% complete)

          Conversion costs (75​% complete)

Costs for June 2017​:

     Work in​ process, beginning​ inventory:

          Direct materials

$91,500

          Conversion costs

$136,000

     Direct materials costs added during June

$601,000

     Conversion costs added during June

Explanation:

Ending work in process= $87,380

Working

Reconciliation of Units

A Beginning WIP 380

B Introduced 970

C=A+B TOTAL 1,350

D Transferred out 1,180

E=C-D Ending WIP 170

.

Statement of Equivalent Units(Weighted average)

Material Conversion cost

Units Complete % Equivalent units Complete % Equivalent units

Transferred out 1,180 100% 1,180 100% 1,180

Ending WIP 170 100% 170 70% 119

Total 1,350 Total 1,350 Total 1,299

.

Cost per Equivalent Units (Weighted average)

COST Material Conversion cost TOTAL

Beginning WIP Inventory Cost $ 93,000 $ 137,000 $ 230,000

Cost incurred during period $ 600,500 $ 400,500 $ 1,001,000

Total Cost to be accounted for $ 693,500 $ 537,500 $ 1,231,000

Total Equivalent Units 1,350 1,299

Cost per Equivalent Units $ 513.70 $ 413.78 $ 927.48

.

Statement of cost (Weighted average)

Cost Equivalent Cost/unit Ending WIP Transferred

Units Cost Allocated Units Cost Allocated

Material $ 513.70 170 $ 87,329.63 1,180 $ 606,170.37

Conversion cost $ 413.78 119 $ 49,239.80 1,180 $ 488,260.20

TOTAL $ 1,231,000 TOTAL $ 136,569 TOTAL $ 1,094,431

According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. $ b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.

Answers

Answer:

a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.

$9,800

b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.

Dr FICA Social Security expense 6,600Dr FICA Medicare expense 1,650Dr Federal unemployment tax expense 200Dr State unemployment tax expense 1,350     Cr FICA Social Security payable 6,600     Cr FICA Medicare payable 1,650     Cr Federal unemployment tax payable 200     Cr State unemployment tax payable 1,350

Explanation:

payroll taxes should be:

social security $110,000 x 6% = $6,600

Medicare $110,000 x 1.5% = $1,650

federal unemployment $25,000 x 0.8% = $200

state unemployment $25,000 x 5.4% = $1,350

total = $9,800

Both employees and employers must pay equal amounts of FICA taxes (social security and medicare), but only employees pay unemployment taxes.

Assume that, on January 1, 2021, Sosa Enterprises paid $2,240,000 for its investment in 30,000 shares of Orioles Co. Further, assume that Orioles has 100,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets.

At January 1, 2021, the book value of Orioles' identifiable net assets was $7,260,000, and the fair value of Orioles was $10,000,000. The difference between Orioles' fair value and the book value of its identifiable net assets is attributable to $1,950,000 of land and the remainder to depreciable assets. Goodwill was not part of this transaction. The following information pertains to Orioles during 2021:

Net Income $ 500,000 Dividends declared and paid $ 300,000 Market price of common stock on 12/31/2021 $ 80 /shareWhat amount would Sosa Enterprises report in its year-end 2021 balance sheet for its investment in Orioles Co.?

Answers

Answer:

Amount  reported in the year-end 2021 is  $2,270,375

Explanation:

[tex]\text{The percentage of investment in Orioles} = \frac{30000 \ shares }{100000 \ shares} = 30 \ percent.[/tex]

The difference between fair value and the book value attributable to depreciable assets = $10,000,000 -$7,260,000 -$1,950,000

=$790,000

Attributable to depreciation assets:

[tex]= \frac{790000}{8 \ years} \times 30 percent \\[/tex]

[tex]= 29625 dollars.[/tex]

Balance sheet for its investment in Orioles:

Particulars                                                        Amount

Cash paid to Orioles                           =             $2,240,000

Add: net income (500,000 *30%)       =            $150,000

Less: Dividends(300,000 *30%)         =           ($90,000)

Less: Attributable to depreciation.      =           ($29,625)

Amount  reported in the year-end 2021. =       $2,270,375

Which of the following would shift the long-run aggregate supply curve right? a. both an increase in the capital stock and an increase in the price level b. an increase in the capital stock, but not an increase in the price level c. an increase in the money supply, but not an increase in the capital stock d. neither an increase in the money supply nor an increase in the capital stock

Answers

Answer:

b. an increase in the capital stock, but not an increase in the price level.

Explanation:

In order to understand both short-run economic fluctuations and how the economy movement from short to long run, we need the aggregate supply and aggregate demand model.

An increase in the capital stock, but not an increase in the price level would shift the long-run aggregate supply curve right.

The long-run aggregate supply curve would shift rightward when immigration from foreign countries rises or technology improves.

When the price level rises, the wealth effect and the interest-rate effect provide incentives for consumers to spend less. The price level of goods and services in an economy influences the exchange rate, imports and exports

Suppose Clifford recently discovered oil in his fields, which greatly excites him because he can earn a profit of $ 31.00 per barrel based on present market conditions. Because production costs will be lower in five years, Clifford estimates that he can pump the oil out at a profit of $ 49.00 per barrel if he chooses to wait. If the interest rate currently is 1.00 %, what is the present value of the oil if he waits five years?

Answers

Answer:

$46.62

Explanation:

Kindly check the attached picture for detailed explanation

Perteet Corporation's relevant range of activity is 6,300 units to 12,500 units. When it produces and sells 9,400 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 3.65 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 2.90 Fixed selling expense $ 0.65 Fixed administrative expense $ 0.35 Sales commissions $ 0.45 Variable administrative expense $ 0.50 If 6,800 units are produced, the total amount of manufacturing overhead cost is closest to:

Answers

Answer:

For 6,800 units the the manufacturing overheads will be $ 3120

Explanation:

Particulars                                   Average Cost per Unit

Direct materials                                      $ 7.20

Direct labor                                             $ 3.65

Variable manufacturing overhead         $ 1.70

Fixed manufacturing overhead             $ 2.90

Total Manufacturing Costs                  $ 15.45

The Manufacturing Overheads = Variable manufacturing overhead  + Fixed manufacturing overhead  =  $ 1.70  + $ 2.90 =  $ 4.6 per unit

For 6,800 units the the manufacturing overheads will be 4.6 * 6,800=$ 3120

We calculate the manufacturing overheads for 6800 by multiplying it with the

manufacturing overheads per unit.

Vital Industries manufactured 1,200 units of its product Huge in the month of April. It incurred a total cost of $120,000 during the month. Out of this $120,000, $45,000 was the cost of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. Ryan had no opening or closing inventory. What will be the total cost per unit of the product, assuming conversion costs contained $10,000 of indirect labor

Answers

Answer:

$100

Explanation:

In the question, we are given the following:

Total cost = $120,000

Units produced = 1,200 units

Therefore, we have:

Total cost per unit = $120,000 / 1,200 = $100

Warren Buffet opposes stock splits to lower the share price because he believes:________.
a. lower share price will encourage other companies to try to take over the company from existing shareholders.
b. lower stock price encourages short term investing, whereas he is looking for long-term investors.
c. stock splits encourage long-term investing, which is detrimental to his firm's investment policy.
d. lower share price indicates poor growth prospects..

Answers

Answer:. b. lower stock price encourages short term investing, whereas he is looking for long-term investors.

Explanation:

Warren Buffet has stated that he does not want to split Berkshire Hathaway's stock because he believes that it would attract short term investors whereas he is looking for long term investors. He believes that a stock being split makes it susceptible to investors who just want to buy it for the meantime, wait for it to appreciate a bit and then sell. He however prefers Companies with a long term potential so he prefers people investing for the long run.

Ellie (a single taxpayer) is the owner of ABC, LLC. The LLC (a sole proprietorship) reports QBI of $900,000 and is not a specified services business. ABC paid total W-2 wages of $300,000, and the total unadjusted basis of property held by ABC is $30,000. Ellie's taxable income before the QBI deduction is $740,000 (this is also her modified taxable income). What is Ellie's QBI deduction for 2019

Answers

Answer:

QBI deduction for 2019 is   $148,000

Explanation:

Description                                                            Amount

Taxable income before QBI deduction

exceed $207,500 threshold.

Capital investment limit is considered

QBI deduction is lesser of:

1) 20% of qualified business income                     $180,000

($900,00 × 20%)

or Greater of

2) 50% 0f W-2 wages                                             $150,000

($300,000 × 50%)

or

25% 0f W-2 wages + 2.5% of unadjustment

basis pf qualified property

($300,000 × 25%) + ($300,000 × 2.5%)                      $75,750

3)Not more than 20% of modified taxable income

($740,000 × 20%)                                                          $148,000

Therefore, QBI deduction for 2019   is   $148,000

You have determined that an OCF of $142,098 will result in a zero net present value for a project, which is the minimum requirement for project acceptance. The fixed costs are $418,000 and the contribution margin per unit is $87.20. The company feels that it can realistically capture 4.5 percent of the 120,000 unit market for this product. The required rate of return is 11 percent. Should the company develop the new product

Answers

Answer:

The company should not develop the new product as The operation cash flow is too low as compared to the OCF that results in zero NPV .

Explanation:

In order to know if the company should develop the new product we would have to make the following calculations:

The No, of units the company expects to sell = Market share*Market size = 4.5%*120,000 = 5,400

Total contribution = No. of units sold*contribution margin per unit = 5400*87.20 = $470,880

Fixed costs = $418,000

Profit before tax = Total contribution - Fixed costs = $470,880 - $418,000 = $52,000

Net profit = (1-Tax rate)*Profit before tax = (1-34%)*$52,000 = $34,320

Since there are no depreciation costs(assumed), net profit is the operating cash flow.

Therefore, the company should not develop the new product as The operation cash flow is too low as compared to the OCF that results in zero NPV .

n the Month of March, Chester Corporation received orders of 180 units at a price of $15.00 for their product Cid. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 120 units in March and the balance of 60 units in April. They received payment for 60 units in March, 60 units in April, and 60 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands)

Answers

Answer:

Explanation:

Under accrual basis, revenue will recognize only after order delivered. so in march they didn't deliver any order. so income statement will report 0. in April they delivered 180 units. they can recognize a revenue of $15*180 = $2,700 in their April income statement.

So, answer will be. 0,  $2,700

A domestic manufacturer of watches purchases quartz crystals from a Swiss firm. The crystals are shipped in lots of . The acceptance sampling procedure uses randomly selected crystals. a. Construct operating characteristic curves for acceptance criteria of , , and (to 4 decimals). b. If is and , what are the producer's and consumer's risks for each sampling plan in part (a) (to 4 decimals)? c At Producer's Risk At Consumer's Risk

Answers

Answer:

The curve and calculation are attached below

Final Examination Hide or show questions Calculator Problem 9-23 (b) (LO. 2) Ricardo, who is self-employed, uses his automobile 85% for business and during 2019 drove a total of 32,200 business miles. Information regarding his car expenses is listed below. Business parking $345 Auto insurance 2,800 Auto club dues (includes towing service) 275 Toll road charges (business-related) 205 Oil changes and engine tune-ups 180 Repairs 1,890 Depreciation allowable 3,600 Fines for traffic violations (incurred during business use) 95 Gasoline purchases 4,125 What is Ricardo's deduction in 2019 for the use of his car if he uses:

Answers

Answer:

Explanation:

a) actual cost method:-

=deductions × percentage

= 345 + 205 + 85% (2800 + 275 + 180 + 1890 +3600 +4125 )

=550 + 10939.5

=11489.5 = 11490

Note :- fines are not taken.

b) automatic mileage method:-

=total number of business miles × standard rate

=32200×0.58 +345+205

=19226

Abel, a Certified Fraud Examiner (CFE), conducted an interview of Baker, the controller of the ABC Company. Abel asked the following question: "Since you were here when the controls were developed, can you tell me how they came about?" This kind of question is called a ____________________.

Answers

Answer: informational question

Explanation:

The kind of question Abel asked baker is known as an informational question.

Informational questions are usually used by interviewers during an interview to get first hand informations from the individual being interviewed. This kind of information can be classified as a primary source as they are gotten directly from the person who has had the experience or involvement. Just like in the case of Baker he was asked the question because it’s believed he witnessed the development of the controls.

Oriole, Inc., management expects the company to earn cash flows of $11,800, $14,000, $18,200, and $19,000 over the next four years. If the company uses an 10 percent discount rate, what is the future value of these cash flows at the end of year 4? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.)

Answers

Answer:

The future value of these cash flows at the end of year 4 is $71,885.80

Explanation:

In order to calculate the future value of these cash flows at the end of year 4 we would have to use the following formula:

        n

        ∑

FV = i=1 [CFi * (1 + r)(n - i)]

FV = [$11,800 * (1 + 0.10)∧(4-1)] + [$14,000 * (1 + 0.10)∧(4-2)] + [$18,200 * (1 + 0.10)(4-3)] + [$19,000 * (1 + 0.10)(4-4)]

FV = $15,705.80 + $16,940 + $20,020 + $19,000

FV=$71,665.80

The future value of these cash flows at the end of year 4 is $71,885.80

Answer:

Future Value of Cash Flows = $71,665.80

Explanation:

Cash Flows:

Year 1 = $11,800

Year 2 = $14,000

Year 3 = $18,200

Year 4 = $19,000

Discount Rate = 10%

Future Value of Cash Flows = $11,800 × 1.10^3 + $14,000 × 1.10^2 + $18,200 × 1.10^1 + $19,000  × 1.10^0

Future Value of Cash Flows = $11,800 × 1.331 + $14,000 × 1.21 + $18,200 × 1.10 + $19,000  × 1

Future Value of Cash Flows = $15,705.8 + $16,940 + $20,020 + $19,000

Future Value of Cash Flows = $71,665.80

So, the future value of these cash flows at the end of year 4 is $71,665.80

Mills Corporation's balance sheet included the following information: Accounts Receivable $ 580,000 Less: Allowance for Doubtful Accounts 73,000 Accounts Receivable, Net of Allowance $ 507,000 If the Allowance account had a credit balance of $31,500 immediately before the year-end adjustment for bad debts and no accounts were written-off or allowed for during the year, what was the amount of Bad Debt Expense recognized during the year

Answers

Answer:

The amount of Bad Debt Expense recognized during the year is $41,500.

Explanation:

Bad debt expense is an estimate of the accounts receivable that is deemed uncollectible. At times, it is determined by percentage of credit method or aging method.

If the allowance account had an opening balance of $31,500 before adjustment and there was no rite-off during the period, with a closing balance of $73,000, the bad debt expense is simply the difference between the closing balance and the opening balance, that is , $73,000 - $31,500 = $41,500.

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