Answer: The answer is provided below.
Explanation:
The following are my SMART goals:-
Specific
1. I want to be physically fit within 5 months so as to be able to run a marathon in less than 2 hours.
2. I want to become a head of department in my current organization from my current position as a junior staff within the next 4 years in order to be able lead a team.
3. I want to become an amazing and better husband to my wife through spending more quality time with her.
4. I want to become a better father to my children by spending time with them and helping them with their school works.
Measurable
1. I would start my training from the following week. I would begin by running 3 to 5 kilometers with walk breaks.
2. I would talk to my boss next week and request for more responsibilities and also to ask him the requirements neccesary to get promoted.
3. I would come back from office early and spend time with my wife.
4. I would come early from work and spend my weekends together with my children.
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 head of departments about how they were promoted.
3. I will talk to other husbands that are successful.
4. I will talk to other dads to know whether my goal is attainable.
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
There should also be an economic logic that is binding this.
Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base.2017 2016Net sales $ 276,200 $ 231,400Cost of goods sold 151,900 129,590Operating expenses 55,240 53,240Net earnings 27,820 19,820Multiple Choice65.1% for 2017 and 64.6% for 2016.55.0% for 2017 and 56.0% for 2016.119.4% for 2017 and 100.0% for 2016.36.4% for 2017 and 41.1% for 2016.117.2% for 2017 and 100.0% for 2016.
Answer:
119.4% for 2017 and 100.0% for 2016.
Explanation:
2017 2016
Net sales $276,200 $231,400
Cost of goods sold $151,900 $129,590
Operating expenses $55,240 $53,240
Net earnings $27,820 $19,820
since we are using 2016 as a base year, the $231,400 in net sales represent 100%, so the trend percentage for 2017 = net sales 2017 / net sales 2016 $276,200 / $231,400 = 1.1936 = 119.4% or a 19.4% increase.
The base year's amount will always be 100% or 1, and the trend percentages will change relative to that year.
Answer:
turtle
Explanation:
Monte Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the brake repairs 5 hours Hourly wage rate $12 Payroll taxes 20% of wage rate Setup and downtime 11% of actual labor time Cleanup and rest periods 27% of actual labor time Fringe benefits 25% of wage rate Determine the standard direct labor hours per brake repairs.
Answer:
=7:30hours
Explanation:
Standard direct labor hours per brake repair
= 5 Hours+(5*11%+5*27%)
=5 Hours + (0.55 hours + 1.35hours)
=7:30hours
Andy Anderson is the only supplier of email updates on avalanche conditions in the mountains above the two towns of Vanee and Keno. The marginal cost of producing these updates is zero (with zero fixed costs) and the inverse demand for these updates in Vanee is p = 42-q and p = 9-q in Keno. Suppose that in each of the two towns, all of the demand comes from one customer. Andy cannot identify which customer is which. To get around this, he creates two kinds of packages, one containing 42 updates and one containing 9. He allows his customers to simply buy one and only one of the kind of package that they prefer. What is the maximum price Andy could charge for the large package if he wants the Vanee customer to buy the package of 42 and the Keno customer to buy the package of 9?
Answer:
Explanation:
He will charge for smaller package Equal to consumer surplus of keno customer with q = 9
Price of small package = 1 / 2 * 9 * 9
=40.5
If veno willingness to pay for 9 updates is
= 1 / 2 * 9 * 9 + 9 * (42 - 9)
= 40.5 + 9 * 33
= 40.5 + 297 = 337.5
So he will get surplus of (337.5 - 40.5 = 297 by buying smaller package.
Veno willingness to pay for larger package = 1/2 * 42 * 42 = 882
To make veno buy larger package ,andy need to make sure that veno also get same CONSUMERs surplus by buying larger package.
So price for larger package = 882 - 297 = 585
As of December 31, 2020, Gill Co. reported accounts receivable of $216,000 and an allowance for uncollectible accounts of $8,400. During 2021, Gill recorded $1,007,800 of credit sales, collections of $978,000, and wrote off $7,800 of bad debts. An analysis of Gill Co.'s December 31, 2021, accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. Bad debt expense for 2021 would be:
Answer:
$6,574
Explanation:
Allowance for uncollectible accounts is a contra asset account and it has credit nature. It needs to be debited to decrease the balance and credited to increase the balance. Balance of this account is adjusted in the account receivable to report the net receivable balance in the balance sheet.
As per given data
Beginning allowance for uncollectible accounts balance = $216,000
Write off is the adjustment mad in this account and it needs to be debited in this account, this transaction will reduce the balance.
Adjusted Balance = $8,400 - 7,800 = $600
Account receivable balance = $216,000 + 1,007,800 - $978,000 = $245,800
Estimated allowance for uncollectible accounts balance = $245,800 x 3% = $7,374
As allowance for uncollectible accounts has already have balance of $600, Bad debt expense for the year is $6,574 ($7,374 - $800)
The ability to think strategically is a critical element for any organization to compete successfully and build the necessary competitive advantage needed for sustained superior performance. Managers and business leaders will be asked to make critical business decisions that will determine the future of the organization. Discuss how the business simulation will contribute to the development of these skills. What value can a new employee with the ability to think strategically bring to an organization? How do you intend to develop these skills over the length of the class?
Answer:
Answer 1:
A business reenactment is a domain that demonstrates sensible serious circumstances to pioneers in a setting where they stand up to jobs and have introduction to the all display. Members settle on choice without genuine dangers, giving them an encounter of basic interdependencies, to implement best practices, and test the devices they can representative to increase their organization's key execution pointers.
They are a magnificent instrument for incite instinct about cooperation’s among the factors that direct hierarchical presentation, additionally give a organized composite condition inside which pioneers can test, without chance and to comprehend cause-impact communications among factors. The bit of leeway with deference genuine world is they can attempt again in the event that they committed errors the first run through
Answer 2:
Extraordinary worth. Think deliberately is a key ability so as to increment authoritative execution, this capacity give a significant device to bargain settle on choices process every day, on the grounds that individuals can envision impacts of their own decisions in a sensible degree. It is definitely an important condition for advancement of developing pioneers.
Answer 3:
The thought is to manufacture huge mental models that fill in as a structure to effectively confront future circumstances.
Pricing Strategy, Sales Variances Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. Budgeted Volume Budgeted Price Product R 125,900 $26 Product S 156,500 22 Product T 22,500 21 At the end of the year, actual sales revenue for Product R and Product S was $3,220,000 and $3,358,000, respectively. The actual price charged for Product R was $25 and for Product S was $20. Only $11 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled $645,150 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. Sales price variance Sales volume variance Product R $ $ Product S $ $ Product T $ $ 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product? Check My Work
Answer:
Check the explanation
Explanation:
Sales price variance = (Actual price - Budgeted price) * Actual units sold
Product R : ($25 - $26) * 123000 = $123000 unfavorable
Product S:($20 - $22) * 162700 = $325400 unfavorable
Product T: ($10 - $20) * 54000 = $540000 unfavorable
Sales volume variance = (Actual units - Budgeted units) * Standard price
Product R : (120000 - 123000) * 26 = $78000 favorable
Product S:(150000 - 162700) * 22 = $279400 favorable
Product T: (20000 - 54000) * 20 = $680000 favorable
Notes:
Actual units:
Product R = $3075000/ $25 = 123000
Product S = $3254000/$20 = 162700
Product T = $540000/$10 = 54000 units
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $6Direct labor $9Variable manufacturing overhead $3Variable selling and administrative $4Fixed costs per year: Fixed manufacturing overhead$300,000Fixed selling and administrative$190,000 During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company’s product is $50 per unit. Required:1. Assume that the company uses absorption costing:a. Compute the unit product cost.b. Prepare an income statement for the year.2. Assume that the company uses variable costing:a. Compute the unit product cost.b. Prepare an income statement for the year.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Variable costs per unit:
Direct materials $6
Direct labor $9
Variable manufacturing overhead $3
Variable selling and administrative $4
Fixed costs per year:
Fixed manufacturing overhead$300,000
Fixed selling and administrative $190,000
During the year, the company produced 25,000 units and sold 20,000 units.
The selling price of the company’s product is $50 per unit.
The difference between the absorption costing and variable costing methods is that the first one includes the fixed manufacturing overhead to the product cost.
1) Absorption costing:
Unitary fixed overhead= 300,000/25,000= $12 per unit
Unitary product cost= 6 + 9 + 3 + 12= $30
Income statement:
Sales= 20,000*50= 1,000,000
COGS= (20,000*30)= (600,000)
Gross profit= 400,000
Total selling and administrative= (190,000 + 20,000*4)= (270,000)
Net income= 130,000
2) Variable costing method:
Unitary variable cost= 6 + 9 + 3= $18
Income statement:
Sales= 1,000,000
Variable cost= (20,000*22)= (440,000)
Contribution margin= 560,000
Fixed manufacturing overhead= (300,000)
Fixed selling and administrative= (190,000)
net income= 70,000
Supposed your organization used a qualitative risk assessment matrix with three levels each of probability and consequences (high, medium and low). In evaluating a project's risks, you determine that commercial risks pose a low probability of occurrence but high consequences. On the other hand, legal risks are evaluated as having a high probability of occurrence and medium consequence. If you are interested in prioritizing your risks, What should be considered first?
Answer:
I consider that commercial or legal risks should be prioritized as they have a high probability of occurrence and medium consequence is not low, so it affects a project or company in a medium degree.
Explanation:
Commercial and legal risks: the more you know about a company, the safer the commercial exchanges with it will be. Knowing all the official information published in public records, in the media and that relating to their management teams, shareholders or administrators will complete that previous image of who we are relating to and will prevent us from taking surprises in the future.
Furthermore, it is important to bear in mind that initially, if the project or the company does not have all its clearly established legal norms, it may incur a sanction and be forced to compensate damages due to its breach of norms or regulations and contractual obligations.
This type of risk also arises as a consequence of failures in contracts and transactions, which derive from malicious acts, negligence or involuntary acts that do not make it possible to formalize or execute contracts or transactions.
argaryen Corporation has a target capital structure of 70 percent common stock, 5 percent preferred stock, and 25 percent debt. Its cost of equity is 10 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 6 percent. The relevant tax rate is 23 percent.a. What is the company’s WACC?
Answer:
WACC = 8.41%
Explanation:
The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool..
After-tax cost of debt = (1- tax rate) × before tax cost of debt
= (1-0.23)× 6% = 4.6%
Type Cost (%) Weight cost × weight
Equity 10 70 7
Preferred stock 5 5 0.25
Debt 4.6% 25 1.155
Total 100 8.405
WACC = 8.405 / 100 × 100 = 8.41%
WACC = 8.41%
Market researchers have determined nine categories of lifestyles for computer users. One of the categories is described as "Mouse Potatoes," who like the Internet for entertainment and can't wait to buy the latest in "techno-entertainment." In terms of the diffusion process, how would "Mouse Potatoes" be classified?
Answer: Innovators.
Explanation:
The Diffusion Process defines how new products are able to spread across a market.
It does this by using the Adoption Process to determine the various groups in the market and how fast the product gets to those groups. There are 5 groups in total.
- Innovators
- Early Adopters
- Early Majority
- Late Majority
- Laggards.
In the above scenario, the Mouse Potatoes would be the Innovators. These are the first buyers of a product and as such their opinions are very important as they then tell others how useful the product is. Mouse Potatoes regularly browse the net looking for the latest in "techno-entertainment", so they can buy or use it first thus making them Innovators.
Consider a market where the demand and supply for the good are described by the following equations: begin mathsize 14px style straight Q subscript straight D space equals space 225 space minus space 3 straight P end style and begin mathsize 14px style straight Q subscript straight S space equals space minus space 22.5 space plus space 1.5 straight P end style.
If the government implements a price ceiling of $45, this will result in a
A. surplus of 22.5 units.
B. a surplus of 45 units.
C. a shortage of 45 units.
D. a shortage of 22.5 units.
Answer:
The correct option is (c)a shortage of 45 units.
Explanation:
Solution
Given that:
Qd=225-3P
Qs=-22.5+1.5P
Then,
Set Qd=Qs for equilibrium
225-3P=-22.5+1.5P
4.5P=247.50
P=$55
Now
The government forces a ceiling of $45, it is binding as it is lesser than the equilibrium price.
Thus,
Let calculate the demanded quantity and supplied quantity at a price of $45
Now,
Qd=225-3*45=90
Qs=-22.5+1.5*45=45
Shortage=Qd-Qs=90-45=45 units .
Therefore, there is a shortage of 45 units.
Flowrider is an indoor surfing wave company. In order to expand its customer base and bring more surfers into the pools and facilities that offer Flowrider experiences, Flowrider decides it needs to offer a short-term incentive for people to stop by and try the experience. Because the ride is usually on the more expensive side, Flowrider offers a 25% discount for anyone with a specific coupon for the next 30 days. The coupon is delivered through email, text, and a newspaper insert. What type of marketing tool did Flowrider use to entice people to try their product
Answer: C. sales promotion
Explanation:
Flowrider used coupons which are quite a popular method of Sales Promotion. Sales Promotion refers to strategies used to increase sales such as discounts and sampling.
Coupons are a type of discount as shown in the question that allow for customers to receive discounts on purchased goods if they have said coupons. As they are a discount and are meant to increase sales, they are a method of Sales Promotion.
Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $9,300 (that had cost $6,873) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $5,000 (that had cost $3,240) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company
Answer:
Dr Apr 08 Cash $8,928
Dr Credit Card Expense $372
Cr Sales $9300
Apr 08 Cost of goods sold $6,873
Merchandise inventory $6,873
Dr Apr 12 Accounts receivable- Continental $4,875
Dr Credit card expense $125
Cr Sales $5,000
Dr Apr 12 Cost of Goods Sold $3,240
Cr Merchandise Inventory $3,240
Explanation:
Levine CompanyJournal entries
Date General Journal Debit Credit
Dr Apr 08 Cash $8,928
Dr Credit Card Expense $372
(4%×9300)
Cr Sales $9300
Apr 08 Cost of goods sold $6,873
Merchandise inventory $6,873
Dr Apr 12 Accounts receivable- Continental $4,875
Dr Credit card expense $125
(2.5%×5000)
Cr Sales $5,000
Dr Apr 12 Cost of Goods Sold $3,240
Cr Merchandise Inventory $3,240
Gilberto Company currently manufactures 50,000 units per year of one of its crucial parts. Variable costs are $2.00 per unit, fixed costs related to making this part are $50,000 per year, and allocated fixed costs are $40,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.20 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 50,000 and buying 50,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier
Answer:
Net incremental cost of buying (10,000). \
Gilberto Company should produced the parts internally . Doing so would saving its $10,000 per year
Explanation:
The relevant cash flow from the accepting the offer of the outside suppliers include
Extra variable cost of buying
Savings in direct fixed manufacturing overhead
Unit variable cost of making: =$2
$
Variable cost of external purchase ($3.2× 50,000) 160,000
Variable cost of making ($2× 50,000) (100,000 )
Extra variable cost of buying (60,000 )
Savings in direct fixed cost 50,000
Net incremental cost of buying (10,000)
Carlinville Car Parts, Inc. has been provided by its lenders and owners with $46,000,000 to purchase assets. The most recent income statement showed Earnings Before Interest and Taxes (EBIT, or Operating Income) of $10,500,000, and net income of $3,950,000. Income tax was paid at a 25% average annual rate. What was Return on Invested Capital (ROIC) for the year?
Answer:
17%
Explanation:
The formula to calculate ROIC is:
ROIC= Net operating profit after tax/ Total invested capital
ROIC= EBIT*(1-Tax rate)/Total invested capital
ROIC= 10,500,000*(1-0.25)/46,000,000
ROIC= 7,875,000/46,000,000
ROIC= 0.17 → 17%
According to this, the answer is that the Return on Invested Capital (ROIC) for the year is 17%.
According to the Core Reading, which of the following is NOT a threat presented by rising income inequality? Select one: a. Higher than optimal tax rates on the rich b. All of these are threats presented by rising income inequality. c. Falling support for globalization d. Unintended consequences of government policies to moderate the effects of stagnant wages e. Falling support for a market-based economy
Answer:
Option B
Explanation:
In simple words, Income inequality refers to the severe imbalance in wealth levels typically in the possession of a limited minority of a community with a large accumulation of wealth.
If wealth disparity exists, there is indeed a wide difference in the resources of one group of the society and that of another. Specific forms of discrimination and study of wage differences should be used to explain economic inequality.
Thus, from the above we can conclude that the correct option is B .
On December 31, 2019, Irey Co. has $3,000,000 of short-term notes payable due on February 14, 2020. On February 8, 2020, Irey borrowed $1,200,000 (long-term loan) from County Bank and used $1,000,000 additional cash to liquidate $2,200,000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2019 balance sheet which is issued on March 5, 2020 is
Answer:
$1,800,000
Explanation:
Given short term notes payable = $3,000,000
Total amount used to liquidate short term notes = $2,200,000
Balance = $3,000,000 - $2,200,000 = $800,000
The additional $1,200,000 which is borrowed from Country Bank will not increase the short term notes payable because it's a long term credit
The additional $1,000,000 cash used will now be added to the balance amount
Amount to be reported as current liabilities = $1,000,000 + $800,000
= $1,800,000
Therefore the amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2019 balance sheet which is issued on March 5, 2020 is $1,800,000
Molly is a 30% partner in the MAP Partnership. During the current tax year, the partnership reported ordinary income of $200,000 before any permitted deduction for guaranteed payments and distributions to partners. The partnership made an ordinary cash distribution of $20,000 to Molly and made guaranteed payments to partners Molly, Amber, and Pat of $20,000 each ($60,000 total guaranteed payments). How much will Molly's adjusted gross income increase as a result of these items
Answer:
$62,000
Explanation:
The partnership had a total ordinary income of $200,000. Then guaranteed payments were made to its three partners Molly, Amber and Pat of $20,000 each $20,000 x 3 = $60,000.
$200,000 - 60000
= $140,000
So the partnership adjusted income is reduced to $140,000, out of that amount, 30% belongs to Molly.
30/100 × 140,000
= $42,000
Molly's share of the partnership adjusted income is $42,000.
Molly's total earnings from the partnership are $62,000
= $20,000 + $42,000
= $62,000
g On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 12%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar. $ Will the present value of your winnings using an interest rate of 12% be more than the present value of your winnings using an interest rate of 5%?
Answer:
Present value = $31,047,749
No. The present value when the interest rate is 12% is less than the present value when the interest rate is 5%
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 8 = $6,250,000
I = 12%
Present value = $31,047,748.54
Present value when interest rate is 5% = $40,395,079.75
The present value when interest rate is 5% is greater than the present value when interest rate is 12%
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Vaughn Manufacturing purchased the assets of Ivanhoe Company at an auction for $5465000. An independent appraisal of the fair value of the assets is listed below: Land $1795000 Building 2840000 Equipment 2180000 Trucks 3180000 Assuming that specific identification costs are impracticable and that Vaughn allocates the purchase price on the basis of the relative fair values, what amount would be allocated to the Building
Answer:
$1,552,836
Explanation:
As the auction price is determined for whole company, which includes all the assets in the company. Auction price can be allocated to an asset based on its fair value ratio to total fair value of all assets.
As per given data
Fair Value of Assets
Land $1,795,000
Building $2,840,000
Equipment $2,180,000
Trucks $3,180,000
Total $9,995,000
Auction price allocation = (Fair value / Total Fair value of all assets) x Auction price
Placing values in the formula
Building = ( $2,840,000 / $9,995,000) x $5,465,000
Building = $1,552,836
i. Discuss the rationale of organizing an industrial strike in resolving employee dispute with the
state, focusing on the detrimental effects strikes has on various stakeholders in an economy.
Answer: The answer is provided below
Explanation:
Strike action, is a work stoppage, that is caused by mass refusal of employees to work and it usually takes place in response to the employee grievances.
Some of the reasons for strike include:
• Low wages: Employees engage in strik as a way to show their grievances to their employers that they're not well paid and want a pay rise.
• Poor communication with the organisation: Another reason for strikes is the lack of trust between employers and the trade unions. In cases whereby workers believe their employers aren't transparent with them, strike can take place.
• Employee debt: When employees are owed certain amount of money and the employer is not doing anything reasonable about paying, the workers may strike.
• Working conditions: Workers can engage in strike in order to seek for improvement in their working conditions. This may be probably because they need better equipments, medical facilities etc.
The detrimental effects that strikes has on various stakeholders in an economy are:
Effects on employers: Strike affects business and it is vital for employers to know their rights and keep up to date with the current labour laws and legislation. Strike leads to loss of revenue for the owner and if the strike continues.for a long time, it can badly affect the business.
Effects on employees: Striking employees who belong to a union are under the obligation to strike when the union wants. They can be at risk of losing their wages and benefits such as sick and holiday pay, medical aid insurance if the strike drags continues for an extended period of time.
Effect on the economy: The impact of strike will be felt by the economy in the immediate and long term future. Strike can harm a country’s investment and reputation internationally. The GDP growth will also be affected and consequences of higher wages in some sectors would lead to higher inflation.
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 6.90 pounds $ 2.60 per pound $ 17.94 Direct labor 0.30 hours $ 7.00 per hour $ 2.10 During the most recent month, the following activity was recorded: 19,250.00 pounds of material were purchased at a cost of $2.40 per pound. All of the material purchased was used to produce 2,500 units of Zoom. 450 hours of direct labor time were recorded at a total labor cost of $4,500. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month.
Answer:
1. Material Variances
Material Price Variance = $3,850 F
Material Quantity Variance = $5,200 U
2. Labor Variances
Labor Rate Variance = $1,350 U
Labor Efficiency Variance = $2,100 F
Explanation:
Calculation is as follows:
1. Material Variances
Material Price Variance = (Standard Price - Actual Price) x Actual units
Material Price Variance = ($2.60 - $2.4) x 19,250 pounds
Material Price Variance = $3,850 (favorable)
As the actual rate is less than standard rate the variance is favorable.
Standard Quantity = 2,500 x 6.9 = 17,250 pounds
Material Quantity Variance = (Standard Quantity - Actual Quantity) x Standard Rate
Material Quantity Variance = (17,250 - 19,250) x $2.60
Material Quantity Variance = $5,200 (Unfavorable)
As the actual raw material quantity used is higher than standard raw material quantity the variance is unfavorable.
2. Labor Variances
Actual Labor Rate = 4,500/450 = $10/hour
Labor Rate Variance = (Standard Rate - Actual Rate) x Actual Hours
Labor Rate Variance = ($7 - $10) x 450
Labor Rate Variance = $1,350 (Unfavorable)
As actual rate is higher than standard rate thus the variance is unfavorable.
Standard Hours = 2,500 x 0.3 = 750
Labor Efficiency Variance = (Standard Hours - Actual Hours) x Standard Rate
Labor Efficiency Variance = (750 - 450) x $7
Labor Efficiency Variance = $2,100 (Favorable)
As the Standard Hours is more than Actual Hours the variance is favorable.
Answer:
Check the explanation
Explanation:
Kindly check the attached image below to see the step by step explanation to the question above.
g The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Account Title Debits Credits Cash 41,500 Accounts receivable 305,000 Prepaid rent 10,500 Inventory 45,000 Office equipment 550,000 Accumulated depreciation 230,000 Accounts payable 62,000 Notes payable (due in six months) 45,000 Salaries payable 7,000 Interest payable 1,500 Common stock 400,000 Retained earnings 125,000 Sales revenue 700,000 Cost of goods sold 420,000 Salaries expense 105,000 Rent expense 31,500 Depreciation expense 55,000 Interest expense 3,000 Advertising expense 4,000 Totals 1,570,500 1,570,500 Required: 1-a. Prepare an income statement for the year ended December 31, 2021. 1-b. Prepare a classified balance sheet as of December 31, 2021. 2. Prepare the necessary closing entries at December 31, 2021.
Answer:
Check the explanation
Explanation:
The right choice is Income summary account, since that is not in the account, closing entries can be in the following ways,
Alternative 1, one combined entry with balancing figure as retained earnings,
Date General Journal Debit Credit
Dec 31 Sales revenue $7,60,000
Cost of goods sold $4,56,000
Salaries expense $1,14,000
Rent expense $40,500
Depreciation expense $62,000
Interest expense $4,400
Advertising expense $5,400
Retained Earnings $77,700
Alternative 2, Transfer of Revenue and expenses separately to Retained Earnings
Date General Journal Debit Credit
Dec 31 Sales revenue $7,60,000
Retained Earnings $7,60,000
Dec 31 Retained Earnings $6,82,300
Cost of goods sold $4,56,000
Salaries expense $1,14,000
Rent expense $40,500
Depreciation expense $62,000
Interest expense $4,400
Advertising expense $5,400
Bramble Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (6 pounds at $3.10 per pound) $18.60 Direct labor (4 hours at $10.00 per hour) $40.00 During the month of April, the company manufactures 190 units and incurs the following actual costs. Direct materials purchased and used (2,200 pounds) $7,260 Direct labor (770 hours) $7,623 Compute the total, price, and quantity variances for materials and labor. Total materials variance $ Materials price variance $ Materials quantity variance $ Total labor variance $ Labor price variance $ Labor quantity variance $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT
Answer and Explanation:
a. The computation of the material price variance is shown below:
= Actual Quantity × (Standard Price - Actual Price)
= $7,260 × (2,200 pounds × $3.10 per pound)
= $440 unfavorable
b. The computation of the material quantity variance is shown below:
= Standard Price × (Standard Quantity - Actual Quantity)
= $3.10 × (2,200 pounds - (190 units × 6 pounds))
= $3,286 unfavorable
c. Total material variance
= Material price variance + material quantity variance
= $440 unfavorable + $3,286 unfavorable
= $3,726 unfavorable
d. The computation of the labor price variance is shown below:
= Actual Hours × (Actual price - Standard Price)
= $7,623 - (770 hours × $10)
= $77 favorable
e. The computation of the labor quantity variance is shown below:
= Standard Rate × (Actual Hours - Standard hours allowed for actual units)
= $10 × (770 hours - (190 units × 4 hours)
= $100 unfavorable
Total labor variance
= Labor rate variance + labor quantity variance
= $77 favorable + 100 unfavorable
= $23 unfavorable
With your team you are working on a project that is supposed to be completed in FOUR months. You planned that EACH MONTH you are going to spend $15000 on the work for the month. At the end of the FIRST month you have spent the expected amount of $15000, but you have completed only two thirds (2/3) of the work. Answer the following questions: a) What is the Earned Value at the end of the first month. b) Calculate the Cost Variance and the Schedule Variance c) Calculate the Cost Performance Index and the Schedule Performance Index d) Analyze the progress of the project. Is the project behind or on schedule
Answer:
(a). $10000.
(b). Cost variance and Scheduled variance = -$5000.
(c). 0.66 and 0.66.
(d). task is behind schedule and the task is over budget.
Explanation:
(a). Earned value at the end of the first month can be calculated by using the formula below;
= A × B.
Where A = first month budget and B = rate at which the work is getting completed.
Earned value at the end of the first month = 15000× (2/3)
Earned value at the end of the first month = $10000
(b). The Cost Variance and the Schedule Variance can be calculated using the formula below;
Cost variance = Earned value at the end of the first month - monthly budget
Cost variance= 10000 - 15000
Cost variance = -$5000
Also, the Scheduled variance = Earned value at the end of the first month - monthly budget
= 10000 - 15000
= - $5000
(c). The cost Performance Index and the Schedule Performance Index can be calculated by using the formula below;
Cost performnace index = 10000 / 15000
= 0.66
Schedule performance index = the amount Earned / the amount that was planned.
Schedule performance index = 10000 / 15000
= 0.66.
(d). Since both schedule performance index and the Cost performance index are less than one that is 0.66, task is behind schedule and the task is over budget respectively.
_________ activity focuses on how to provide the materials from the suppliers. This system makes the connection between the customer and business functions. It manages the transactions to receive raw and semiraw materials from the suppliers as well as the company and its customers. How many units to order is one of the key issues in supply chain management. Depending on the customers’ order, the company gives orders to the suppliers, and then the suppliers orders to the suppliers’ suppliers.
Answer: Supply Chain Management.
Explanation:
Supply Chain Management is a very integral part of any business's business.
It refers to that system by which a country controls everything that has to do with the sourcing of raw materials to the production of goods from those raw materials.
An Effective supply chain will give a company an edge in operations as it will lead to goods getting to the customer faster as well as savings for the company amongst others.
Assume you are going to receive a payment of $1,000 in 5 years. You'd like to know what that cash flow would be worth in 2 years. To calculate the answer, you use the given interest rate to obtain an equivalent cash flow expressed in year 2 dollars. This is an example of calculating a...
Answer:
The multiple choices are as follows:
Group of answer choices:
A. Present Value
B. Future Value
C. Discounted Value
D. Annuity
E. Lump Sum
The correct option is C,discounted value
Explanation:
The worth of the cash flow which is $1,000 is given with reference to the worth in 5 years' terms,hence restating the cash flow to its worth in two years' time is discounting to its two years' worth.
The answer cannot be present value since the cash flow is not being discounted to today's equivalent amount.
Also,future value is not correct since future value of $1,000 is already provided in the question
Goshford Company produces a single product and has capacity to produce 105,000 units per month. Costs to produce its current sales of 84,000 units follow. The regular selling price of the product is $126 per unit. Management is approached by a new customer who wants to purchase 21,000 units of the product for $77.40 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is not in the company’s regular selling territory, so there will be a $7.60 per unit shipping expense in addition to the regular variable selling and administrative expenses. Per Unit Costs at 84,000 Units Direct materials $ 12.50 $ 1,050,000 Direct labor 15.00 1,260,000 Variable manufacturing overhead 14.00 1,176,000 Fixed manufacturing overhead 17.50 1,470,000 Variable selling and administrative expenses 14.00 1,176,000 Fixed selling and administrative expenses 13.00 1,092,000 Totals $ 86.00 $ 7,224,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $77.40 per unit.
Answer:
Net income= $4,836,200
Explanation:
Giving the following information:
Offer:
21,000 units for $77.4
An increase in variable cost= $7.6 per unit
Direct materials $ 12.50 $ 1,050,000
Direct labor 15.00 1,260,000
Variable manufacturing overhead 14.00 1,176,000
Fixed manufacturing overhead 17.50 1,470,000
Variable selling and administrative expenses 14.00 1,176,000
Fixed selling and administrative expenses 13.00 1,092,000
Totals $ 86.00 $ 7,224,000
First, we need to calculate the effect on the income of accepting the offer:
Effect on income= 21,000*77.4 - 21,000*(12.5 + 15 + 14 + 14 + 7.6)
Effect on income= 1,625,400 - 1,325,100
Effect on income= 300,300
Net income= 84,000*140 + 300,300 - 7,224,000
Net income= $4,836,200
In the market for lock washers, a perfectly competitive market, the current equilibrium price is $5 per box. Washer King, one of the many producers of washers, has a daily short-run total cost given by TC = 190 + 0.20Q + 0.0025Q2, where Q measures boxes of washers. Washer King's corresponding marginal cost is MC = 0.20 + 0.005Q. How many boxes of washers should Washer King produce per day to maximize profit?
Answer:
The number of boxes of washers Washer King should produce per day to maximize profit = 960 boxes.
And the corresponding maximum daily profit = $2,114
Explanation:
The daily, short-run total cost of producing Q boxes of the product is given as
TC = 190 + 0.20Q + 0.0025Q²
The unit price of the product = $5.
Total revenue = (Unit Price) × (Quantity sold) = 5Q
Profit = (Revenue) - (Total Cost)
Profit = 5Q - (190 + 0.20Q + 0.0025Q²)
Profit = P(Q) = -190 + 4.8Q - 0.0025Q²
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) = -190 + 4.8Q - 0.0025Q²
(dP/dQ) = 4.8 - 0.005Q
At maximum point,
(dP/dQ) = 4.8 - 0.005Q = 0
Q = (4.8/0.005) = 960 boxes
(d²P/dQ²) = -0.005 < 0 (hence, showing that the this point corresponds to a maximum point truly)
Hence, the number of boxes of washers Washer King should produce per day to maximize profit = 960 boxes.
The corresponding maximum profit is then obtained from
P(960) = -190 + (4.8×960) - 0.0025(960²)
Maximum daily profit = $2,114
Hope this Helps!!!
On March 1 the price of a commodity is $1,000 and the December futures price is $1,015. On November 1 the price is $980 and the December futures price is $981. A producer of the commodity entered into a December futures contracts on March 1 to hedge the sale of the commodity on November 1. It closed out its position on November 1. What is the effective price (after taking account of hedging) received by the company for the commodity
Answer:
$1,014
Explanation:
The computation of effective price received by the company for the commodity is shown below:-
Here for computing the Effective price received first we need to find out the profit on future contract which is here below:-
Profit on future contract = Futures prices of Nov 1 - Dec Future prices Dec
= $1015 - $981
= $34
Effective price received = November Price + Profit on future contract
= $980 + $34
= $1,014
The effective price (after taking account of hedging) received by the company for the commodity is $1,014.
First step
Future contract profit:
Future contract profit= $1015 - $981
Future contract profit= $34
Second step
Effective price :
Effective price = $980 + $34
Effective price= $1,014
Inconclusion the effective price (after taking account of hedging) received by the company for the commodity is $1,014.
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