Answer:
lol just reminding yall
my teacher : Wikipedia is not a reliable resource
Explanation:
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
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 .
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.
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
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
To measure value, the concept of time value of money is used a. To determine the interest rate paid on corporate debt. b. To bring the future benefits and costs of a project, measured by its expected profits, back to the present. c. To bring the future benefits and costs of a project, measured by its cash flows, back to the present. d. To ensure that expected future profits exceed current profits today
Answer:
The correct answer to the following question will be Option C.
Explanation:
The time value of money seems to be the method used mostly for estimating the current value including all possible retained earnings. Those are classified underneath the strategies of capital budgeting.It's being used to know whether the project is feasible. It measures up the preliminary project expense to future revenues by reducing investment returns.The other available scenarios have no connection with the particular circumstance. So option C seems to be the correct answer to that.
Suppose that annual output in year 1 in a 3-good economy is 3 quarts of ice cream, 1 bottle of shampoo, and 3 jars of peanut butter. In year 2, the output mix changes to 5 quarts of ice cream, 2 bottles of shampoo, and 2 jars of peanut butter. If the prices in both years are $4 per quart for ice cream, $3 per bottle of shampoo, and $2 per jar of peanut butter, what was the economy's GDP in year 1? What was its GDP in year 2?
Answer:
$21
$30
Explanation:
GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP in year 1 = (3 × $4) + (1 ×$3 ) + (3 x $2) =$21
GDP in year 2 = ( 5 x $4) + (2 x$3 ) + (2 x $2) = $30
I hope my answer helps you
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.
Paddle Paradise, Inc. sells 2 comma 000 canoes per year at a sales price of $ 470 per unit. It sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $ 800 comma 000 per year. Fixed costs are $ 320 comma 000 per year and cannot be reduced. What is the target variable cost per unit assuming units sold are equal to units produced
Answer:
Target unitary variable cost= $240 per unit
Explanation:
Giving the following information:
Sales in units= 2,000
Selling price= $470
Total cost= $800,000 per year
Fixed costs= $320,000 per year.
First, we need to calculate the total variable cost:
Total variable cost= total cost - total fixed costs
Total variable cost= 800,000 - 320,000
Total variable cost= 480,000
Now, we can calculate the target unitary variable cost:
Target unitary variable cost= 480,000/2,000
Target unitary variable cost=$240 per unit
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
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!!!
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
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.
Multiple Choice Question 216 Given the following adjusted tabular summary amounts: Cash $1463 Accounts receivable 1846 Inventory 2749 Prepaid rent 76 Equipment 260 Accumulated depreciation-equipment 46 Accounts payable 72 Unearned service revenue 107 Common stock 174 Retained earnings 5820 Service revenue 324 Interest revenue 49 Salaries and wages expense 140 Travel expense 58 Net income for the year is:
Answer:
$175
Explanation:
Net Income = Service revenue + Interest revenue - Salaries and Wages Expense - Travel Expense
Net Income = $324 + $49 - $140 - $58
Net Income = $175
A mechanical engineer purchased a machine 1 year ago for $85,000 and is now seeing that it costs more to operate than anticipated. The engineer expected to use the machine for 10 years with annual maintenance costs of $22,000 and a salvage value of $10,000. Last year though, it cost $35,000 to maintain the machine and these costs are expected to increase to $36,500 this year and increase by $1500 each year after. The market value is now estimated to be $85,000-$10,000k, where k is the number of years since the machine was purchased. It is now estimated this machine will be useful for a maximum of 5 more years. Perform a replacement study now and determine the values of P, n, AOC, and S of this defender.
Answer:
P = -$75000
n = 5 years
AOC = $35000
and S = $10000
Explanation:
Considering that the machine that is expected to last 10 will only do for 5 years and that the market value is now $85000 - $10000
we can the say,
P = -($85000 - $10000)
= - $75000
n = 5 years which is the number of years it is expected to last
AOC = $35000
S = $10000 which is the savaged value on the machine
_________ 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.
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
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
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.
Learn more about effective price here:https://brainly.com/question/16710746
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.
Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $400 per month plus $90 per job plus $10 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in September to be 15 jobs and 145 meals, but the actual activity was 11 jobs and 142 meals. The actual cost for catering supplies in September was $2,710. The catering supplies in the planning budget for September would be closest to:
Answer:
The catering supplies in the planning budget for September would be closest to $3,200
Explanation:
In order to calculate the the catering supplies in the planning budget for September we would have to use the following formula:
catering supplies in the planning budget=The cost formula for catering supplies+cost per job×number of jobs+cost per meal×number of meals
catering supplies in the planning budget=($400+$90*15+145*$10) = $3,200
The catering supplies in the planning budget for September would be closest to $3,200
Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 10,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $10,500 Direct labor 4,800 Total $15,300 The standard materials price is $0.7 per pound. The standard direct labor rate is $12 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $9,500 Actual direct labor 4,400 Total $13,900 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 8,800 units during June. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Answer:
Direct material quantity variance = -$260 Unfavorable
Direct labor time variance = -$176 Unfavorable
Explanation:
The computation of the direct materials quantity and direct labor time variances is shown below:-
Direct material quantity variance = (Standard Direct material ÷ Company budgeted × Produced units) - Actual direct material
= ($10,500 ÷ 10,000 × 8,800) - $9,500
= ($1.05 × 8,800) - $9,500
= $9,240 - $9,500
= -$260 Unfavorable
Direct labor time variance = (Standard Direct labor ÷ Company budgeted × Produced units) - Actual direct labor
= ($4,800 ÷ 10,000 × 8,800) - $4,400
= $0.48 × 8,800) - $4,400
= $4,224 - $4,400
= -$176 Unfavorable
Therefore we have applied the above formula.
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.
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
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
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
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
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. Standard hours per unit of output 3.20 DLHs Standard variable overhead rate $ 10.55 per DLH The following data pertain to operations for the last month: Actual direct labor-hours 9,400 DLHs Actual total variable manufacturing overhead cost $ 95,780 Actual output 2,700 units What is the variable overhead efficiency variance for the month?
Answer:
Variable overhead efficiency variance $ 8,018 Unfavorable
Explanation:
Variable overhead efficiency variance: Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.
Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance
Hours
2,700 units should have taken (2,700 × 3.20) 8640
but did take (actual hours) 9,400
Efficiency variance in hours 760 unfavorable
standard variable overhead cost per hour $10.55
Variable overhead efficiency variance $ 8,018 Unfavorable
Variable overhead efficiency variance $ 8,018 Unfavorable
Selected information from Herisau Corporation's accounting records and financial statements for 2021 is as follows ($ in millions): Cash paid to retire notes $ 90 Common shares acquired for treasury 150 Proceeds from issuance of preferred stock 210 Proceeds from issuance of subordinated bonds 270 Cash dividends paid on preferred stock 75 Cash interest paid to bondholders 105 In its statement of cash flows, Herisau should report net cash inflows from financing activities of:
Answer:
$165
Explanation
The net cash flows from financing activities is the difference between the cash inflows received from finance providers and cash outflows paid to them as shown below:
Net cash flow from financing activities=proceeds from preferred stock+proceeds from subordinated bonds-cash paid for common stock retirement-cash dividends-cash paid to retire notes
Net cash flow from financing activities=$210+$270-$150-$75-$90=$165
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)
