Answer:
Results are below.
Explanation:
Giving the following information:
Direct materials standard (4 lbs. $2 per lb.)= $8 per finished unit
Actual direct materials used (AQ)= 300,000
Actual finished units produced= 60,000
Actual cost of direct materials used= $535,000
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2 - 1.783)*300,000
Direct material price variance= $65,100 favorable
Actual price= 535,000 / 300,000= $1.783
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (4*60,000 - 300,000)*2
Direct material quantity variance= $120,000 unfavorable
Assume the following macroeconomic variable ( in $ billion) for an economy: Y = national income = Aggregate Expenditures Aggregate Expenditures = Consumption + Investment + Government Spending + Net Export Assuming that the full employment level in $6,000 billion, determine the change in government spending needed to reach full employment. (Hint: calculate the current GDP, then calculate aggregate expenditures using national income of $6,000 and find the difference)
Answer:
440
Explanation:
Calculation to determine the change in government spending needed to reach full employment.
At Y=6000,
C=300+0.64Y
C=300+0.64*6000
C=300+3840
C=4140
Second step
Imports=0.08*Y=0.08*6000
Imports=480
Aggregate expenditure=4140+800+700+400-480
Aggregate expenditure=5560
Full employment G=6000-5560
Full employment G=440
New G=700+440
New G=1140
Y=300+0.64Y+800+1140+400-0.08Y
Y=2640+0.56Y
Y=2640/0.44
Y=6000
Therefore the change in government spending needed to reach full employment must Increase by 440.
Burt is strategizing and planning an IMC marketing campaign for the company where he is employed as marketing specialist. If he is to execute an effective IMC campaign, which aspects should he consider
Answer:
Incorporate the manufacturing process steps of the service into your planning and design process. A further explanation is provided below.
Explanation:
Burt would have had to take into account the possible throughout the development process of the marketing campaign when trying to execute an integrated Communication IMC program.An essential component of conducting a successful IMC campaign requires determining the phase including its project lifecycle.Thus the above is the right answer.
Adophus, Inc.'s 2010 income statement reported total revenues of $850,000 and total expenses (including $40,000 depreciation) of $720,000. The 2010 balance sheet reported the following: accounts receivable beginning balance of $50,000 and ending balance of $40,000; accounts payable beginning balance of $22,000 and ending balance of $28,000. Therefore, based only on this information and using the indirect method, the 2010 net cash inflow from operating activities was:
Answer:
Adolphus, Inc.
Therefore, based only on this information and using the indirect method, the 2010 net cash inflow from operating activities was:
= $186,000.
Explanation:
a) Data and Calculations:
Total revenues = $850,000
Total expenses 720,000
Operating income $130,000
Depreciation = 40,000
Beginning Ending Changes
Accounts receivable $50,000 $40,000 -$10,000
Accounts payable $22,000 $28,000 +$6,000
Operating activities section of the Statement of Cash Flows, 2010:
Net income $130,000
Non-cash expenses:
Depreciation 40,000
Changes in working capital:
Accounts receivable 10,000
Accounts payable 6,000
Net cash inflow = $186,000
A convertible preferred stock is convertible at $10, pays a 4% annual dividend, is callable at $110, and is trading at a current market price of $116. Based on these details, what is the parity price of the common stock
Answer:
$11.60
Explanation:
In ascertaining the parity price of the common stock, we need to ascertain the conversion ratio which is the par price of the preferred stock divided by the convertible price
The par value of the preferred stock=$100(since call price is $110)
convertible price=$10
conversion ratio=$100/$10=10
The parity price is the current market price of the preferred stock divided by the conversion ratio
Parity price=$116/10
Parity price=$11.60
A company issued 7%, 15-year bonds with a par value of $510,000 that pay interest semiannually. The market rate on the date of issuance was 7%. The journal entry to record each semiannual interest payment is: ________
a) Debit Bond Interest Expense $17,850, credit Cash $17,850
b) Debit Bond Interest Expense $35,700: credit Cash $35,700
c) Debit Bond Interest Payable $34,000, credit Cash $34,000.
Answer: A. Debit Bond Interest Expense $17,850, credit Cash $17,850
Explanation:
Since the company issued 7%, 15-year bonds with a par value of $510,000 that pay interest semiannually with a market rate of 7%, then the journal entry to record each semiannual interest payment will be:
Debit Bond Interest Expense $17,850
Credit Cash $17,850
(To record semi annual interest payment)
Note that bond interest expense was calculated as:
= $510,000 × 7% × 6/12
= $510,000 × 0.07 × 0.5
= $17850
Two years ago Sam bought a newly issued three-year US government bond (a risk-free asset) with a principle of $1000 and a 5% coupon rate. This year, one year before maturity, Sam decides to sell the bond and sees that the price people are willing to pay for his bond is now $1019.
Required:
a. Has the interest rate gone up or down since Sam purchased the bond?
b. What is the the current interest rate for bonds when Sam decides to sell?
Answer and Explanation:
In the case when sam purchased the bond, the rate of interest on the bond is
= 50 ÷ 1000
= 5%
Now, after the change in price, the interest rate is:
= 50 ÷ 1019
= 4.907%
a. So here the rate of interest is reduced or gone
b. And ,the current interest rate is 4.907%
so the same is to be considered and relevant
Common stockholders' equity as of 1/1/2017 $7,031,250 Common stockholders' equity as of 12/31/2017 $8,593,750 Net sales for the year 2017 $3,906,250 Net income for the year 2017 $250,000 Common stock dividends paid during 2017 $10,000 Calculate the company's Payout Ratio.
Answer:
the payout ratio is 4%
Explanation:
The computation of the payout ratio is shown below:
The payout ratio is
= Dividend ÷ net income
= $10,000 ÷ $250,000
= 4%
We simply divided the dividend from the net income so that the payout ratio could come
Hence, the payout ratio is 4%
Answer:
it is 4%
Explanation:
Materials costs of $720000 and conversion costs of $800800 were charged to a processing department in the month of September. All materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 120000 units were started into production in September, and there were 8000 units in ending work in process that were 30% complete at the end of September. What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September
Answer:
The total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September is:
= $1,456,000.
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Incurred during September $720,000 $800,800 $1,520,800
Equivalent units of production:
Units Materials Conversion
Started into production 120,000
Ending work in process 8,000 8,000 (100%) 2,400 (30%)
Completed and transferred out 112,000 112,000 (100%) 112,000 (100%)
Equivalent units 120,000 114,400
Total cost of production $720,000 $800,800
Equivalent units 120,000 114,400
Cost per equivalent units $6 $7
Cost assigned to:
Units completed and transferred out $672,000 $784,000 $1,456,000
Ending work in process 48,000 16,800 64,800
Total cost assigned & accounted for $720,000 $800,800 $1,520,800
The cost of a parcel of land is 50 cents per square foot. Candace wants to purchase one acre. How much will this cost?
1 acre = 43,560 square feet.
Multiply square feet by cost per square feet
43,560 x 0.50 = $21,780
Total cost: $21,780
Question 2
A demand curve reflects each of the following except the
a. highest price buyers are willing to pay for each quantity.
b.quantity that each buyer will ultimately purchase.
c. value each buyer in the market places on the good.
d. willingness to pay of all buyers in the market.
Moving to another question will save this response.
Answer:
d. willingness to pay of all buyers in the market.
Explanation:
The demand curve shows the relationship between the price of a good or service and the quantity demanded at a particular time.
Therefore, a demand curve reflects:
a. highest price buyers are willing to pay for each quantity.
b.quantity that each buyer will ultimately purchase.
c. value each buyer in the market places on the good.
With this in mind, what the demand curve does not reflect, with these in mind is a willingness to pay of all buyers in the market.
Wayland Company has a standard of 5.0 hours of labor per unit, at $11.00 per hour. In producing 800 units, Wayland used 3,800 hours of labor at a total cost of $41,000. What is Wayland's labor price variance
Answer:
Direct labor rate variance= $798 favorable
Explanation:
To calculate the direct labor rate variance, we need to use the following formula:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (11 - 10.79)*3,800
Direct labor rate variance= $798 favorable
Actual rate= 41,000 / 3,800= $10.79
Sal is very clear in defining for his subordinates the incentives available to them for different levels of performance. He makes sure they understand the path toward receiving incentives and follows through on rewarding them when they meet those goals. Sal exhibits the _______ theory of leadership.
Answer: d. path–goal
Explanation:
The Path-goal theory of leadership espouses that leaders should be dynamic and use whichever leadership style would be best suited to the abilities of their subordinates and the work environment that they are in.
It is then divided into four styles with the relevant style here being the "directive path-goal clarifying leader behavior". Under this style, the manager specifies exactly what it is that they want from the employees and then rewards them when they meet the required objectives.
The theory of leadership that Sal was exhibiting when he was defining some incentive that can make them perform well and explain the path to follow so as to receive the incentive when they achieve their goal is The path-goal theory.
The path-goal theory can be regarded as one that focus on leader's behavior which serves as contingent to the satisfaction that influence the motivation and performance of their employees. Good example us where Sal promise her employee about incentive once they achieve their goals.Therefore, The path-goal theory is correct.
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Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income.
(a) Purchased $100 of supplies for cash.
(b) Recorded an adjusting entry to record use of $20 of the above supplies.
(c) Made sales of $1,200, all on account.
(d) Received $800 from customers in payment of their accounts.
(e) Purchased equipment for cash, $2,500.
Answer:
(a) Cash reduction, no effect on net income
(b) Net income reduction, no effect on cash
(c) Net income increment, no effect on cash
(d) Cash increase, no effect on net income
(e) Cash reduction, no effect on net income
Explanation:
When items or services are exchanged for cash, these may be recognized as assets or expenses. While expenses reduce income, assets do not as it forms the exchange of one asset (cash) for another.
Considering the transactions in light of the above,
a) Purchased $100 of supplies for cash - Supplies are inventory (an asset) and would not reduce net income until it is used up
(b) Recorded an adjusting entry to record use of $20 of the above supplies. No effect on cash, entry is a reduction in supplies and recognition of cost of goods sold. As such net income reduces.
(c) Made sales of $1,200, all on account. - Sales on account are credit sales. This will be recognized as a credit to sales (increase in net income) and a debit to accounts receivable.
(d) Received $800 from customers in payment of their accounts. - To recognize this, we debit cash (increase in cash) and debit accounts receivable. This has no effect on net income.
(e) Purchased equipment for cash, $2,500 - Again, this is he exchange of cash for an asset. This has no effect on income.
If the constructor function is a machine to create object instances, then the _____ is the blueprint for the objects that are created.
I think ( prototype)
If the constructor function is a machine to create object instances, then the prototype is the blueprint for the objects that are created.
Suppose GDP consists of eggs and ham. In 2002, 100 dozen eggs are sold at $3 per dozen, and 50 pounds of ham are sold at $4 per pound. If in 2001, the base year, eggs sold at $1.50 per dozen and ham sold at $5 per pound, nominal 2002 GDP is
Answer:
Nominal GDP = $500
Explanation:
Given the price of eggs in 2002 = $3
Quantity of eggs = 100 dozens
Price of ham in 2002 = $4
Quantity of ham = 50 pounds
Nominal GDP = Current year price x current year quantity
Nominal GDP = 100 x 3 + 50 x 4
Nominal GDP = 300 + 200
Nominal GDP = $500
Athena Company's salaried employees earn two weeks of vacation per year. It pays $910,000 in total employee salaries for 52 weeks but its employees work only 50. Record Athena Company's weekly journal entry to record the vacation expense:
Answer:
If $910,000 is paid as employee salary for the year then the weekly salary is:
= 910,000 / 52
= $17,500
The cost of 2 vacation weeks is therefore:
= 17,500 * 2
= $35,000
There are 50 weeks to be worked so vacation expense needs to be apportioned to these weeks:
= 35,000 / 50
= $700
Weekly journal entry is:
Date Account Title Debit Credit
XX-XX-XXXX Vacation Benefits Expense $700
Vacation Benefits Payable $700
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,510 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $5,185 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,330. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%
Answer:
$2,116
Explanation:
The computation is shown below:
Option 1 - Leasing
= 3510 + ( 3510 ÷ 1.2 ) + ( 3510 ÷ 1.2 ^ 2 )
= 8872.5
Now
Option 2 - Buying
Given that
Initial Cost - 5185
PV of salvage value = 1330 ÷ 1.2 ^ 3
= 769.68
So,
Cost = 5185 - 769.68
= 4457.176
Now the payment should be
= 4457.176 × 0.47473 (PV annuity factory for 20% at 3 years)
= $2,115.955
= $2,116
If the old equipment is replaced now, it can be sold for $60,000. Both the old equipment’s remaining useful life and the new equipment’s useful life is 5 years. What is the net cost of the new equipment? g
Answer:
$315,000
Explanation:
The below is missing from the question, hence, my solution would be based on the original question and additional details below:
Old Equipment New Equipment
Purchase price $225,000 $375,000
Accumulated depreciation $90,000 - 0 -
Annual operating costs $300,000 $240,000
The net cost of the equipment is the actual expenditure to the firm by acquiring the new equipment which is the cost of new equipment minus the amount receivable from selling the old equipment
net cost of new equipment=$375,000-$60,000
net cost of new equipment=$315,000
The latest video game comes out and costs $60. You put it on your credit card and can’t afford to pay the whole bill all at once, so you make the minimum payment each month. How much is that minimum payment?
The minimum payment each month is 15%. The minimum payment is the least amount of money you must pay each month to maintain the status of your account.
What is minimum payment?The total balance on your account for that billing cycle is represented by the statement balance. The sum of your most recent bill plus any recent charges constitutes your current balance.
Although experts advise paying the statement balance in full each month, there are occasions when it might not be possible. In those circumstances, it's crucial to pay at least the required minimum in order to keep your account current and avoid late penalties and penalty APRs.
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Lion Company accepted a $15,000, 30-day, 6% note on December 16 from Diaz Co, granting a time extension on his past-due account receivable. The adjusting entry on December 31 for Lion Company would include a credit to:
Answer:
Interest Revenue for $37.50
Explanation:
The interest that has accrued on the note receivable from December 16 till December 31(for 15 days) needs to be recognized at the end of the year since the interest for those days has been earned.
Based on 30-day month counting, the interest that would be credited to interest revenue and debited to interest receivable on 31 December is computed thus:
interest receivable=$15000*6%*15/360
interest receivable=$37.50
The Pension Trust Fund maintained by the city of Linden had the following transactions during 2019. Record each transaction in the Pension Trust Fund. Ignore any other funds that may be involved in a transaction.
a. Contributions of $600,000 were received from General Fund employees, and the General Fund contributed its share of $100,000.
b. The fund paid $500 for investment management fees.
c. Investments held by the fund increased in value by $3,500.
d. Depreciation on fund capital assets totaled $800.
e. Retirement benefits of $7,700 were paid to retirees.
f. Interest of $2,500 and dividends of $1,400 were received from investments
Answer:
Date Account Title Debit Credit
XX - 2019 Cash $700,000
Additional pension Contribution - $600,000
Employees
Additional pension Contribution - $600,000
Employer
Date Account Title Debit Credit
XX - 2019 Investment management fees $500
Cash $500
Date Account Title Debit Credit
XX - 2019 Investments $3,500
Net appreciation in investment fair value $3,500
Date Account Title Debit Credit
XX - 2019 Depreciation of fund capital assets $800
Accumulated depreciation of fund $800
capital assets
Date Account Title Debit Credit
XX - 2019 Retirement benefits $7,700
Cash $7,700
Date Account Title Debit Credit
XX - 2019 Cash $3,900
Interest on investments $2,500
Dividends $1,400
The preferred stock of a company pays a $2.75 quarterly dividends. If the preferred stockholders' required return is 7.25% for these shares, what price should the preferred stock sell for?
82.35
151.72
92.31
114.29
167.74
Answer:
$151.72
Explanation:
Quarterly dividends of preferred stock = $2.75
Annual dividend of preferred stock = 4 * Quarterly dividend
Annual dividend of preferred stock = 4 * $2.75
Annual dividend of preferred stock = $11
Required return = 7.25% = 0.0725
Return = Dividend / Current price
0.0725 = $11 / Current price
Current price = $11 / 0.0725
Current price = 151.724138
Current price = $151.72
So, the preferred stock should sell for $151.72.
XYZ Corporation manufactures two models of office chairs, a standard and a deluxe model. The overhead costs for setups and components pools are $60,000 and $58,900, respectively. The following activity has been compiled:
Number of Number of Number of
Setups Components Direct Labor Hours
Standard 11 6 295
Deluxe 29 13 205
Overhead costs $63,600 $102.600
Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity based costing system is used, what is the total amount of overhead costs assigned to the standard model?
A. $109,200
B. $57,000
C. $83,000
D. $83,100
Answer:
$49,890
Explanation:
The computation of the total amount of overhead costs assigned to the standard model is given below
The cost driver rate is
For setup
= $63,600 ÷ (11 + 29)
= 1,590
For component
= $102,600 ÷ (6 + 13)
= 5,400
Now the total amount of overhead for the standard model is
= 11 × 1,590 + 6 × 5,400
= $17,490 + $32,400
= $49,890
This is the answer but the same is not provided in the given options
Brockton Corporation, which allocates manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.
Actual manufacturing overhead costs incurred $35,000
Manufacturing overhead allocated to jobs 33,800
Underallocated or overallocated Manufacturing overhead ?
Required:
Calculate the manufacturing overhead and indicate if the remainder is underallocated or overallocated for the year.
Answer:
Underapplied overhead= $1,200
Explanation:
Giving the following information:
Actual manufacturing overhead costs incurred $35,000
Manufacturing overhead allocated to jobs 33,800
To calculate the under/over allocation, we need to use the following formula:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 35,000 - 33,800
Underapplied overhead= $1,200
Discount Mart utilizes the allowance method of accounting for uncollectible receivables.
On December 12, the company receives a $540 check from Chad Thomas in settlement of Thomas's $1,280 outstanding accounts receivable. Due to Thomas's failing health, he is closing his company and is expecting to make no further payments to Discount Mart.
Journalize this transaction. If an amount box does not require an entry, leave it blank.
Answer: See explanation
Explanation:
From the question, we are given the information that on December 12, the company receives a $540 check from Chad Thomas in settlement of Thomas's $1,280 outstanding accounts receivable, then the journal entry based on the above will be:
December 12:
Debit Cash $540
Debit Allowance for doubtful account $740
Credit Account receivable $1280
Note that the allowance for doubtful account was calculated as:
= Account receivable - Cash
= $1280 - $540
= $740
Kingbird, Inc. purchased a piece of equipment for $72,200. It estimated a 8-year life and a $3,400 salvage value. At the end of year four (before the depreciation adjustment), it estimated the new total life to be 10 years and the new salvage value to be $7,200.
Compute the revised depreciation assuming Kingbird uses the straight-line method.
Revised annual depreciation
$enter the revised annual depreciation in dollars
Depreciation Expense 3,060
Accumulated Depreciation 3,060
72,200-3,400=68,800/8yr=8,600*4yrs=34,400-72,200=37,800
37,800-7,200=30,600/10yr=3,060 annual depreciation
72,200-3,400=68,800/8yr
=8,600*4yrs
=34,400-72,200=37,800
37,800-7,200=30,600/10yr
=3,060 annual depreciation
Therefore, the Depreciation Expense of 3,060.
What is depreciation?Depreciation is a term used in accounting to describe two different aspects of the same idea: first, the actual decline in an asset's fair value as it is used and worn, such as the annual decline in value of factory equipment, and second, the allocation in accounting statements of the asset's original cost to the periods in which the asset is used (depreciation with the matching principle).
Depreciation is the process of reallocating, or "writing down," the cost of a physical item (such as equipment) over the course of that asset's useful life. It also refers to the decline in asset value. Long-term assets are depreciated by businesses for accounting and tax reasons. A company's or entity's balance sheet is impacted by the asset's decline in value, and the income statement they report is impacted by the process of depreciation from an accounting standpoint.
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Value a Constant Growth Stock Financial analysts forecast Best Buy Company (BBY) growth for the future to be 14.00 percent. Their recent dividend was $1.19. What is the value of their stock when the required rate of return is 15.43 percent
Answer:
$94.87
Explanation:
Value of stock = Dividend * (1 + Growth rate) / (Required rate - Growth rate)
Value of stock = $1.19 * (1 + 0.14) / (0.1543 - 0.14)
Value of stock = $1.19 * 1.14 / 0.0143
Value of stock = $1.3566 / 0.0143
Value of stock = 94.8671329
Value of stock = $94.87
Ashburn Corporation issued 25-year bonds two years ago at a coupon rate of 5.6 percent. The bonds make semiannual payments. If these bonds currently sell for 97 percent of par value, what is the YTM
Answer:
5.84%
Explanation:
years to maturity = 25 - 2 = 23
number of coupons left = 23 * 2 = 46
current price = $970
coupon = $28
We can use Excel and the IRR function to determine yield to maturity:
-970
28
28
28
28
28 IRR:
28 5.84%
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
28
1028
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $1,250,000 $2,000,000 Variable costs (750,000) (1,250,000) Contribution margin $500,000 $750,000 Fixed costs (400,000) (450,000) Operating income $100,000 $300,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. fill in the blank 1 Bryant Inc. fill in the blank 2 b. How much would operating income increase for each company if the sales of each increased by 20%? Dollars Percentage Beck Inc. $fill in the blank 3 fill in the blank 4 % Bryant Inc. $fill in the blank 5 fill in the blank 6 % c. The difference in the of operating income is due to the
Answer:
1. Operating leverage = Contribution margin / Net income
Beck Inc.
Operating leverage = $500,000 / $100,000
Operating leverage = 5
Bryant Inc.
Operating leverage = $750,000 / $300,000
Operating leverage = 2.5
2. Income from operations increase = Increase in sales * Degree of operating leverage
Dollar increase = Net income * Percentage
Beck Inc.
Percentage = 5*20 = 100% (Income from operations increase)
Dollar increase = $100,000 * 100% = $100,000
Bryant Inc.
Percentage = 2.5*20 = 50% (Income from operations increase)
Dollar increase = $300,000 * 50% = $150,000
LUVFINANCE, Inc. is estimating its WACC. The firm could sell, at par, $100 preferred stock that pays a 10 percent annual dividend and incurs 6.22% flotation costs. What is the cost of new preferred stock financing?
Answer:
the cost of new preferred stock financing is 10.66%
Explanation:
The computation of the cost of new preferred stock financing is given below:
= Annual dividend ÷ [ Price × (1 - flotation cost) ]
= $10 ÷ [ $100 × (1 - 0.0622) ]
= $10 ÷ $ 93.78
= 10.66%
Hence, the cost of new preferred stock financing is 10.66%
The same is to be considered and relevant
