Consider a budget line drawn with avocados on the vertical axis and tangerines on the horizontal axis. The consumer's income is $100, the price of avocados is $5, and the price of tangerines is $10. Suppose the consumer's income falls to $75.00, but the prices stay the same. The change in income produces a: Group of answer choices parallel shift inward of the indifference curves. new budget line which is steeper than the original one. parallel shift inward of the budget line. new budget line which is flatter than the original one.
Answers
Answer:
new budget line which is steeper than the original one.
Explanation:
I drew the both budget lines in order to show the effect of the decrease in income.
The new budget line shifts inward and it is slightly more steep than the original budget line because the consumer can only purchase 7 tangerines, he cannot purchase 7.5. This slight difference makes the slope steeper. The total possible quantity of avocados diminished by 25%, while the total possible quantity of tangerines diminished by 30%.
Related Questions
Suppose we express the amount of land under cultivation as the product of four factors:
Land = (land/food) x (food/kcal) X (kcal/person) X (population)
The annual growth rates for each factor are (1) the land required to grow a unit of food, - 1 percent (due to greater productivity per unit of land); (2) the amount of food grown per calorie of food eaten by a human, +0.5 percent (because with affluence, people consume more animal products, which greatly reduces the efficiency of land use); (3) the per capita calorie consumption, +0.1 percent; and (4) the size of the population, + 1.5 percent. At these rates, how long would it take to double the amount of cultivated land needed? At that time, how much less land would be required to grown a unit of food?
Answers
Answer:
t = 63.01338
46.74%
Explanation:
Using the exponential growth equation :
P = Po * exp(rt)
Rate factors are :
land required to grow a unit of food, = - 1%
amount of food grown/calorie of food = +0.5%
size of the population = 1.5 percent
the per capita calorie consumption, +0.1%
Σ growth rates = - 1 + 0.5 + 1.5 + 0.1 = 1.1% = 0.011
Time taken for Population to double ;
Population (P) = 2 * initial population (Po)
P = 2Po
P = Po * exp(rt)
Substitute 2Po for P
2Po = Po * exp(rt)
2 = exp (rt)
Take the In of both sides
In(2) = rt
0.6931471 = 0.011 * t
t = 0.6931471/ 0.011
t = 63.01338
At that time, how much less land would be required to grown a unit of food?
100 - exp(rt)
r = growth rate of land required to grow a unit of food, = - 1% = - 0.01
[1 - exp(-0.01 * 63.01338)]
[1 - 0.5325205]
= (0.4674795)
= (0.4674) * 100%
= 46.74%
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows:
Raw materials $ 40,000
Work in process $ 18,000
Finished goods $ 35,000
The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:
a. Raw materials were purchased on account, $510,000
b. Raw materials use in production, $480000. All of of the raw materials were used as direct materials.
c. The following costs were accrued for employee services: direct labor, $600,000; indirect labor, $150,000; selling and administrative salaries, $240,000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $367,000
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $500,000.
f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
g. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year.
h. Jobs were sold on account to customers during the year for a total of $2,800,000. The jobs cost $1,690,000 to manufacture according to their job cost sheets.
Question:
3. What is the journal entry to record the labor costs incurred during the year?
4. What is the total amount of manufacturing overhead applied to production during the year?
5. What is the total manufacturing cost added to Work in Process during the year?
6. What is the journal entry to record the transfer of completed jobs that is referred to in item g above?
7. What is the ending balance in Work in Process?
9. Is manufacturing overhead underapplied or overapplied for the year? By how much?
12. What is the ending balance in Finished Goods?
13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year?
14. What is the gross margin for the year?
15. What is the net operating income for the year?
Answers
Answer:
3.
DR Selling and Administrative Salaries $240,000
Manufacturing Overhead $150,000
Work in Process $600,000
CR Wages Payable $990,000
4.
Manufacturing Overhead Applied
= 41,000 hours * 16.25
= $666,250
5. Total Manufacturing cost to be added = Raw Materials + Direct Labor + Manufacturing Overhead
= 480,000 + 600,000 + 666,250
= $1,746,250
6.
DR Finished Goods $1,680,000
CR Work in Process $1,680,000
7.
Ending Balance = Beginning balance + Raw materials + Direct labor + Manufacturing Overhead - Cost transferred to Finished goods
= 18,000 + 480,000 + 666,250 + 84,250 - 1,680,000
= $84,250
9. Predetermined overhead cost - Actual cost = 666,250 - 650,000 = $16,250.
Overapplied as predetermined cost was more than Actual.
12. Finished goods = Beginning balance + Cost transferred from WIP - Cost of goods sold
= 35,000 + 1,680,000 - 1,690,000
= $25,000
13.
Adjusted Cost of Goods sold = Cost of goods sold - Overapplied
= 1,690,000 - 16,250
= $1,673,750
14. Gross Margin = Sales - Adjusted COGS
= 2,800,000 - 1,673,750
= $1,126,350
15. Net Operating Income
= Gross Margin - Selling and Administrative salaries - Selling and Administrative expenses
= 1,126,350 - 240,000 - 367,000
= $519,250
June 1 T. James, owner, invested $11,500 cash in Sustain Company in exchange for common stock. 2 The company purchased $4,500 of furniture made from reclaimed wood on credit. 3 The company paid $700 cash for a 12-month insurance policy on the re-claimed furniture. 4 The company billed a customer $3,500 in fees earned from preparing a sustainability report. 12 The company paid $4,500 cash toward the payable from the June 2 furniture purchase. 20 The company collected $3,500 cash for fees billed on June 4. 21 T.James invested an additional $10,500 cash in Sustain Company in exchange for common stock. 30 The company received $5,500 cash from a client for sustainability services for the next 3 months.Prepare general journal entries for the above transactions
Answers
Answer:
General Journal
June 1
Cash $11,500 (debit)
Common Stock $11,500 (credit)
Received Cash in exchange of common stock
June 2
Furniture $4,500 (debit)
Accounts Payable $4,500 (credit)
Purchased Furniture on credit
June 3
Prepaid Insurance $700 (debit)
Cash $700 (credit)
Paid Insurance in advance
June 4
Accounts Receivable $3,500 (debit)
Fees Earned $3,500 (credit)
Fees earned not yet paid
June 12
Accounts Payable $4,500 (debit)
Cash $4,500 (credit)
Payment made to suppliers
June 20
Cash $3,500 (debit)
Accounts Receivable $3,500 (credit)
Cash receipt from debtors
June 21
Cash $10,500 (debit)
Common Stock $10,500 (credit)
Received Cash In exchange of Common Stock
June 30
Cash $5,500 (debit)
Deferred Revenue $5,500 (credit)
Received Cash for services to be rendered
Explanation:
See the journals and their narrations prepared above.
Answer:
Entries are posted
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
DEBIT CREDIT
1-June (Common Stock issued)
Cash $11,500
Common stock $11,500
2-June (Furniture purchased on Credit)
Furniture $4,500
Accounts Payable $4,500
3-June (Prepaid Insurance Paid)
Prepaid insurance $700
Cash $700
4-June (Revenue earned)
Accounts Receivable $3,500
Service Revenue $3,500
12-June (Paid for Outstanding balance in payables)
Accounts Payable $4,500
Cash $4,500
20-June (Received from Accounts Receivables)
Cash $3,500
Accounts Receivables $3,500
21-June (Common Stock issued)
Cash $10,500
Common stock $10,500
30-June (Advance received for services to be performed in future)
Cash $5,500
Unearned Service Revenue $5,500
There are Federal Reserve regional banks. Which of the following contributes to making the Federal Reserve an independent policymaking body? Members of the Board of Governors are appointed for 14-year terms. Its role is written into the U.S. Constitution. There are 12 Federal Reserve banks. The Federal Reserve's primary tool for changing the money supply is . In order to increase the number of dollars in the U.S. economy (the money supply), the Federal Reserve will government bonds.
Answers
Answer:
There are 12 Federal Reserve regional banks. A further explanation is given below.
Explanation:
The central U.S is the treasury department System. This isn't about a foreign company. Alternatively, the complete United States is broken across 12 treasury department regions, along with a federal reserve bank throughout the jurisdiction. The treasury department system is established by these 12 area federal reserve banks.So, there are many 12 area Federal Reserve banks.
Despite the latter's independence towards political interference, the federal reserve system is perceived to be autonomous. This is because a director of the Federal Reserve executive committee is named for a maximum term duration of 14 years. This starts and ends the duration of three or four U.S president and thereby actually protects the board against political control.
Representatives are named to the board of directors for a period of 14 years.
Open market activities are the main weapon of the Federal Reserve for adjusting the amount of money in circulation. The Federal Reserve would issue government securities to decrease the consumption of dollars from the U.S.Tangible resources include:
A. human assets and intellectual capital, which can include the talent of the work force and the creativity and innovativeness of certain personnel.
B. reputational assets, which can include the company's reputation for quality, service, and reliability as well as their reputation for fair dealings with suppliers.
C. relationships with alliances that provide access to technologies, specialized know-how, or geographic markets.
D. technological assets such as patents, copyrights, and trade secrets.
E. None of these.
Answers
Answer:
D.technological assets such as patents, copyrights, and innovation technologies.
Explanation:
Tangible resources are regarded as a physical asset with a set of value that are been owned by organization, companies. Tangible resources could be equipment, machinery, buildings, cash and so on.
It should be noted that Tangible resources can be in form of technological assets such as patents, copyrights, and innovation technologies.
They are important in finance because their utilization could be for very long time in the business.
:
Knowledge Check 01 Which of the following is deducted from the total selling and administrative expense budget to determine the cash disbursements for selling and administrative expense budget? Advertising expense Depreciation expense Selling commissions Utilities expense Knowledge Check 02 A company determines that the number of units sold is the cost driver for its variable selling and administrative expense budget. The product of its variable selling and administrative rate and budgeted unit sales will be ________. budgeted sales revenue total budgeted cash disbursements for selling and administrative expenses total budgeted fixed selling and administrative expenses total budgeted variable selling and administrative expenses
Answers
Answer:
Knowledge Check 01 Which of the following is deducted from the total selling and administrative expense budget to determine the cash disbursements for selling and administrative expense budget?
Depreciation expenseDepreciation expense is a non cash charge since there is no cash outflow associated to it. The same applies for amortization expense, asset impairments, stock based compensation and asset depletion (similar to depreciation but used by extracting companies like mines and oil companies).
Knowledge Check 02 A company determines that the number of units sold is the cost driver for its variable selling and administrative expense budget. The product of its variable selling and administrative rate and budgeted unit sales will be ________.
total budgeted variable selling and administrative expensesSince we are dealing with budgets, any calculation is also a budget or forecast. We are calculating here the total budgeted variable selling and administrative expense since we are multiplying the predetermined variable S&A per unit x budgeted units.
which of the following is the most common form of the research title
Answers
Indicate accurately the subject and scope of the study.
Avoid using abbreviations.
Use words that create a positive impression and stimulate reader interest.
Use current nomenclature from the field of study. Although research paper assignments may vary widely, there are essentially two basic types of research papers. These are argumentative and analytical. es of research papers:
Analytical Research Paper. ...
Argumentative (Persuasive) Research Paper. ...
Definition Paper. ...
Compare and Contrast Paper. ...
Cause and Effect Paper. ...
Interpretative Paper. ...
Experimental Research Paper. ...
Survey Research Paper. The major parts of a research paper are abstract,Introduction,review of literature,research methods,findings and analysis,discussion,limitations,future scope and references.
Answer: Ideally, the title of your research paper should be more informative so that it attracts the attention of the readers. ... It is not advisable to have a question as the title of your paper as it is the first thing readers will see about your paper. Characteristics of a good research title
A good title should be interesting to the reader. To make the title interesting, attention-grabbing, and easy to read, use words that create a positive impression and stimulate the reader's interest. ...
It reflects the tone of writing. ...
It contains important keywords. The most common types of paper
Repro paper. Also called offset or printing paper. ...
Couché or coated paper. ...
Tissue paper. ...
Newsprint. ...
Cardboard. ...
Paperboard. ...
Fine art paper. Research paper may refer to: Academic paper (also called scholarly paper), which is in academic journals and contains original research results or reviews existing results or show a totally new invention. Position paper, an essay that represents the author's opinion. Term paper, written by high school or college ... The two main types of research are qualitative research and quantitative research. Qualitative research is descriptive in nature, because it generally deals with non-numerical and unquantifiable things.
Interest rates affect corporate profits and security prices. Based on your understanding of the relationship between interest rates and corporate profits and security prices,identify which of the following statements is true and which is false. Statements 1. Interest rates affect the level of economic activity, which in turn affects the profits earned by a business organization, all other considerations remaining constant. 2. Interest rates will affect the preference of investors to own stocks versus owning bonds. 3. A sharp decrease in interest rates will increase the price of bonds, which can significantly decrease the potential for capital gains and the yield earned by a bondholder. This should decrease the demand for bonds compared to the demand for stocks, all other considerations remaining constant. 4. An increase in market interest rates will increase the opportunity cost of investors' funds and increase the price of financial assets.
Answers
Answer:
1. Interest rates affect the level of economic activity, which in turn affects the profits earned by a business organization, all other considerations remaining constant.
TRUE, higher interest rates "cool down" the economy, reducing economic activity, disposable income and the profits earned by companies. Lower interests rates due the opposite.
2. Interest rates will affect the preference of investors to own stocks versus owning bonds.
TRUE, e.g. if interest rates increase, the price of bonds decrease, which can result in higher yields for bondholders. Since money is limited, if more people invest in bonds, less people will invest in stocks. A decrease in interest rates results in the opposite.
3. A sharp decrease in interest rates will increase the price of bonds, which can significantly decrease the potential for capital gains and the yield earned by a bondholder. This should decrease the demand for bonds compared to the demand for stocks, all other considerations remaining constant.
TRUE, for the same reasons as question 2.
4. An increase in market interest rates will increase the opportunity cost of investors' funds and increase the price of financial assets.
FALSE, as the interest rates increase, the price of financial assets decrease. They basically go on the opposite way. If the interest rates decrease, then the price of financial assets increases.
A restaurant manager wanted to get a better understanding of the tips her employees earn, so she decided to record the number of patrons her restaurant receives over the course of a week, as well as how many of those patrons left tips of at least 15%. The data she collected is in the table below.
Day Mon. Tue. Wed Thu. Fri Sat Sun.
Patrons 126 106 103 126 153 165 137
Tippers 82 87 93 68 91 83 64
Which day of the week has the lowest experimental probability of patrons tipping at least 15%?
a. Sunday
b. Saturday
c. Friday
d. Thursday
Answers
Answer:
a. Sunday
Explanation:
Probability ranges from 0-1. 0 being the least chance and one being completely sure.
The probability of receiving a tip of at least 15% for the different days is as follows
Monday : 82/126 = 0.65
Tuesday: 87/106= 0.82
Wednesday: 93/103= 0.90
Thursday : 68/126 = 0.54
Friday :91/153= 0.59
Saturday: 83/156 = 0.53
Sunday: 64/137= 0.46
The day with the lowest probability is Sunday.
Answer:
A. Sunday
Explanation:
I got it right on edge :)
You are meeting with your company’s raw materials purchasing agents. As a group, you are discussing when raw materials orders should be placed based on production needs and supplier lead times. You have compiled the following production needs and lead time information: After you place an order for raw materials, the shipment usually arrives at your warehouse five days later. You determined that your production processes use about 300 units of raw materials per day. You want to keep your inventory carrying costs down and your supplier has a 100% on time-delivery rate. As a result, you decide to carry no inventory buffer. Based on the information presented and given your daily raw materials usage and the lead time for raw materials orders, what minimum units of raw materials inventory should your company maintain at all times?
Answers
Answer:
this company's reorder point should be 1,500 units of raw materials.
Explanation:
The reorder point is the minimum level that you can hold on inventory before purchasing more materials. It is calculated by multiplying a company's daily needs (300 units per day) x the delivery lead time (5 days) = 1,500 units.
If the company decided to keep a safety stock, then in order to determine the minimum inventory level you would need to add the desired safety stock + 1,500 units.
A city keeps track of the number of new small businesses which open in any given year, as well as how many of those
new businesses report profit in excess of their initial investment after one year's time. An example of the data collected
can be viewed in the table below.
2000
Year
New
1998
781
1999
699
626
217
2001
730
264
2002
762
244
Profitable
311
205
If 684 new small businesses opened in 2003, approximately how many of them could be expected to turn a profit in
excess of their initial investment by 2004?
a 200
b. 236
c. 247
d. 272
Answers
Answer:
It's 236
Explanation:
Edge2020 ignore the other guy
What documents the scope of the project, identifies major tasks and resources and describes any interrelationships with other projects
Answers
Answer:
"Project initiation" is the correct approach.
Explanation:
The start including its project would be the very first stage of project management which determines project priorities, scope statement, development plan, associated risks, monitoring mechanisms, interrelationship with several other processes mentioned. A team is formed during this development of the company, and perhaps a business case becomes developed to describe the campaign in depth.Operating a cash register is a _________ skill. (soft skill or hard skill)
Answers
Answer:
Also a hard skill.
Explanation:
A hard skill is something that you have to learn.
A loan is being repaid with payments of $395 made at the beginning of each year for 17 years. Determine the effective annual rate of interest charged if the loan amount is $5081.27.
Answers
Answer:
3.76%
Explanation:
I did this computation using excels Rate function. I will show you how to do the same in this solution
From our question,
We have:
Loan amount = Present Value(PV) = -5081.27
Payments at periods PMT = $ 395
The Future Value (FV) = 0
We were given Period (NPER) = 17
The Type = 1 because payments are made at the start of each year.
To get rate = RATE (NPER, PMT,PV,FV,Type, Guess)
= RATE(17,395,-5081.27,0,1,0)
= 3.76%
The effective annual rate = 3.76%
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $880,000, and it would cost another $19,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $463,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $14,500. The sprayer would not change revenues, but it is expected to save the firm $330,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%. A. What is the Year 0 net cash flow?
B. What are the net operating cash flows in Years 1, 2, and 3?
C. What is the additional Year-3 cash flow (i.e., the after-tax salvage and the return of working capital)?
D. Based on your IRR analysis, if the projectâs cost of capital is 12%, should the machine be purchased?.
Answers
Answer:
A. -1118000 B. Y1=375612Y2=418521Y3= 304148 C. 803657 D. 26%
Explanation:
Managerial Finance.
A.) 0 Year Net Cash Flow = -1080000-22500-15500= -1118000
B.) Y1=375612
Y2=418521
Y3= 304148
C.) 60500 + (605000-81695) * (.35) + 15500 = 803657
D.) IRR put the value of Net Present Value (NPV) as 0
NPV= -1118000 +375612/(1+r)^1 + 418521/ (1+r)^2 + (304148) + 803657) / (1+r) ^ 3
we get 25.87 or 26%
Yes.
Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who are looking for tutoring services, and TiX, which can be used to buy, sell, or exchange event tickets. For the following year, SMI expects the following results. Toot! TiX Total Users 8,900 16,600 25,500 Revenues $ 1,450,000 $ 1,200,000 $ 2,650,000 Engineering hours 7,375 5,375 12,750 Engineering cost $ 402,500 $ 521,875 $ 924,375 Administrative costs $ 739,500 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the number of users to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service?
Answers
Answer: See explanation
Explanation:
a. Predetermined overhead rate will be:
= Administrative costs/Number of users
= 739,500/25,500
= $29 per user
Administrative costs applied to Toot will be:
= Number of users x Predetermined overhead rate
= 8900 x 29
= $258100
Administrative costs applied to Tix will be:
= Number of users x Predetermined overhead rate
= 16600 x 29
= $481400
b. For Toot
Revenue: $1,450,000
Less: Engineering cost: $402,500
Less: Administrative cost: $258,100
Profit = $789400
For Tix:
Revenue: $1,200,000
Less: Engineering cost: $521,875
Less: Administrative cost: $481,400
Profit = $196725
Schedule of Cash Collections of Accounts Receivable Pet Supplies Inc., a pet wholesale supplier, was organized on January 1, 2016. Projected sales for each of the first three months of operations are as follows: January $370,000 February 450,000 March 660,000 All sales are on account. 56% of sales are expected to be collected in the month of the sale, 40% in the month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for January, February, and March.Pet Place Supplies Inc.
Schedule of Collections from Sales
For the Three Months Ending July 31, 2016
May
June
July
May sales on account:
Collected in May
Collected in June
Collected in July
June sales on account:
Collected in June
Collected in July
July sales on account:
Collected in July
Total cash collected
Answers
Answer:
Results are below.
Explanation:
All sales are on account.
56% of sales are expected to be collected in the month of the sale
40% in the month following the sale
4% in the second month following the sale.
Cash Collection January:
Sales on account January= 370,000*0.56= $207,200
Total cash collection= $207,200
Cash Collection February:
Sales on account January= 370,000*0.44= $162,800
Sales on account February= 450,000*0.56= $252,000
Total cash collection= $414,800
Cash Collection March:
Sales on account January= 370,000*0.04= $14,800
Sales on account February= 450,000*0.44= $198,000
Sales on account March= 660,000*0.56= $369,600
Total cash collection= $582,400
Answer:
Correct
Explanation:
The following information applies to the questions displayed below.]Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:DirectLabor-Hoursper unit AnnualProductionRims 0.30 26,000 unitsPosts 0.50 70,000 unitsAdditional information about the company follows:Rims require $15 in direct materials per unit, and Posts require $11.The direct labor wage rate is $15 per hour.Rims are more complex to manufacture than Posts and they require special equipment.The ABC system has the following activity cost pools:Estimated ActivityActivity Cost Pool Activity Measure EstimatedOverheadCost Rims Posts TotalMachine setups Number of setups $ 32,900 60 140 200Special processing Machine-hours $114,800 4,000 0 4,000General factory Direct labor-hours $1,404,000 6,000 72,000 78,000c.A security guard patrols the company grounds after normal working hours.d.Purchase orders are issued for materials to be used in production.e.Modifications are made to product designs.f.New employees are hired by the personnel office.g.Machine settings are changed between batches of different products.h.Parts inventories are maintained in the storeroom. (Each product requires its own unique parts.)i. Insurance costs are incurred on theRequired:1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)Activity Cost Pool Activity RateMachine setups per setupSpecial processing per MHGeneral factory per DLHcompanyâs2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)Unit product cost of Rims Unit product cost of Posts
Answers
Answer:
Please sew below and attached.
Explanation:
1. Compute the activity rate for each activity cost pool.
2. Determine the unit product cost of each product according to the ABC system.
•The unit product cost for RIMS = $28.45 , while the unit product cost for POSTS = $37.34
Please find attached detailed solution to the above .
The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,900 direct labor-hours will be required in January. The variable overhead rate is $7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,230 per month, which includes depreciation of $3,530. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Answers
Answer:
$67,000
Explanation:
Calculation for the cash disbursements for manufacturing overhead
Using this formula
Cash disbursements = Variable + Fixed
Let plug in the formula
Cash disbursements= (3,900*$7) + (43,230 - 3,530)
Cash disbursements= 27,300+ 39,700
Cash disbursements=$67,000
Therefore the cash disbursements for manufacturing overhead will be $67,000
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $308,000 and in Allowance for Uncollectible Accounts of $510 (credit) before any adjustments. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. Bad debt expense for the year should be: Multiple Choice $9,750. $8,730. $7,831. $9,240.
Answers
Answer:
$8,730
Explanation:
accounts receivable balance = $308,000
allowance for doubtful accounts = $510
the balance for the allowance for doubtful account should be $308,000 x 3% = $9,240
that means that it must increase by $9,240 - $510 = $8,730
the adjusting journal entry should be:
Dr Bad debt expense 8,730
Cr Allowance for doubtful accounts 8,730
5. Hazelwood School District is located in Sleepy Hollow Township. It is being sued by several teachers who applied for teaching positions with the school but were rejected. The plaintiffs, who are all African-Americans, produce the following evidence: a) 1.8 percent of the Hazelwood School District's certified teachers are African-American, whereas 15.4 percent of the certified teachers in Sleepy Hollow Township are African-American; and b) The hiring decisions by Hazelwood School District are based solely on subjective criteria. Will the plaintiffs prevail
Answers
Answer:
The plaintiffs will probably win because the school district is clearly discriminating against African American teachers.
Title VII of the Civil Rights Act establishes that it is illegal to discriminate against job applicants based on race, ethnic background, gender, sexual preferences, religion, etc.
Since 15.4% of all certified teachers in the district are African Americans, you would expect that the number of teachers employed by the school district would be similar. It doesn't have to be exact, but it should be a closer number, not 1.8%.
What advertising form did Isaac use if consumer will see his advertisement anytime that they look online for the phrase tree cutting
Answers
Answer:
paid search engine results
Explanation:
Paid search engine results, advertising form did Isaac use if consumer will see his advertisement anytime that they look online for the phrase tree cutting. Therefore, option (a) is correct.
What is advertising?
The term “advertising” refers to the part of marketing communication. Advertising is a promotional tool used to attract and inform consumers about available products and services. The main objective of the advertisement is to promote a product or service being purchased by the target audience.
According to the advertising are the based on the target audience. The advertising are the part of the communication. There are the based on the online phrases tree cutting. There are the best adverting for the paid the search engine to attract the consumer.
As a result, the paid search engine results, advertising form did Isaac use if consumer will see his advertisement anytime that they look online for the phrase tree cutting.
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Your question is incomplete, but most probably the full question was.
Paid search engine resultsWeb bannersBroadcast emailsSearch engine optimization (SEO)You discover the engine-oil additive your scientists developed three years ago makes a great men’s after-shave once diluted properly using certain chemicals. How should you treat the original $125,000 of R&D expenditures that went into developing the engine-oil additive for your present decision regarding whether or not to begin production of the after-shave? a. Treat it as a cash outflow three years ago for the current project; that is, find the future value today of the $125,000 spent three years ago.
Answers
Answer: e. As a sunk cost since the R&D expenditure has no bearing on today's investment decision.
Explanation:
Sunk Costs are not to be factored in when making decisions because they have already been incurred and cannot be recovered.
This R&D expense should therefore be treated as a sunk cost because it has already been incurred and expensed and does not contribute to the decision today to embark on the men's after-shave venture.
Ampco Disk Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were for August 20X5: Work in process, beginning inventory 100,000 units Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (90% complete) Transferred in during current period 300,000 units Completed and transferred out 250,000 units Work in process, ending inventory 50,000 Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (65% complete)Calculate equivalent units for conversion costs using the FIFO method. a. 30,280 units.b. 299,800 units.c. 390,580 units.d. 353,400 units.
Answers
Answer:
Total Equivalent units=292,500units
Explanation:
Calculation for the equivalent units for conversion costs
Beginning work in process 10,000 units
(100,000 × 0.10)
Completed and transferred out 250,000 units
Ending work in process 32,500, units
(50,000 × 0.65)
Total Equivalent units=292,500units
Therefore the equivalent units for conversion costs Will be 292,500units
The Ampco Disk Company will report equivalent units for Conversion Costs using the FIFO method as $292,500 units.
Data and Calculations:
Physical Transferred-in Direct Conversion
Units Materials Costs
Beginning inventory 100,000 100% 0% 90%
Transferred in period 300,000
Available units 400,000
Completed & transferred out 250,000
Ending inventory 50,000
Equivalent units:
Physical Transferred-in Direct Conversion
Units Materials Costs
Beginning inventory 100,000 0 (0%) 0 (0%) 10,000 (10%)
Started and transferred 250,000 250,000 250,000 250,000 (100%)
Ending inventory 50,000 50,000 0 (0%) 32,500 (65%)
Total equivalent units 300,000 250,000 292,500
Thus, the equivalent units for Conversion Costs under the FIFO method is 292,500 units.
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The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $4,800. Marketing studies indicate that such a campaign would increase sales in the Medical market by $42,000 or increase sales in the Dental market by $36,000. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign?
Answers
Answer:
1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market?
We are missing the cost structure, so I looked for similar question. The company's current segment margin for the medical market is 30%. So this campaign would increase segment profit by $42,000 x 30% = $12,600. Since its cost is $4,800, net profit will increase by $12,600 - $4,800 = $7,800
2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market?
The dental market's segment profit is 24%, so this campaign would increase revenue by $36,000 x 24% = $8,640. To calculate net profit we must again subtract the campaign's cost. Net profit = $8,640 - $4,800 = $3,840
3. In which of the markets would you recommend that the company focus its advertising campaign?
They should focus on the medical market since their profit will be higher.
Explanation:
Accounting for Operating Activities in a New Business (the Accounting Cycle)
Penny’s Pool Service & Supply, Inc. (PPSS) had the following transactions related to operating the business in its first year’s busiest quarter ended September 30, 2013:
a. Placed and paid for $2,600 in advertisements with several area newspapers (including the online versions), all of which ran in the newspapers during the quarter.
b. Cleaned pools for customers for $19,200, receiving $16,000 in cash with the rest owed by customers who will pay when billed in October.
c. Paid Pool Corporation, Inc., a pool supply wholesaler, $10,600 for inventory received by PPSS in May.
d. As an incentive to maintain customer loyalty, PPSS offered customers a discount for prepaying next year’s pool cleaning service. PPSS received $10,000 from customers who took advantage of the discount.
e. Paid the office receptionist $4,500, with $1,500 owed from work in the prior quarter and the rest from work in the current quarter. Last quarter’s amount was recorded as an expense and a liability Wages Payable.
f. Had the company van repaired, paying $310 to the mechanic.
g. Paid $220 for phone, water, and electric utilities used during the quarter.
h. Received $75 cash in interest earned during the current quarter on short-term investments.
i. Received a property tax bill for $600 for use of the land and building in the quarter; the bill will be paid next quarter.
j. Paid $2,400 for the next quarter’s insurance coverage.
Required:
1. For each of the events, prepare journal entries, checking that debits equal credits.
2. Based only on these quarterly transactions, prepare a classified income statement (with income from operations determined separately from other items) for the quarter ended September 30, 2013.
3. Calculate the net profit margin ratio at September 30, 2013 (using income before taxes in place of net income). What does this ratio indicate about the ability of PPSS to control operations?
Answers
1. Journal Entries for the events in Quarter ending September 30, 2013:
a. Debit Advertising Expense $2,600
Credit Cash $2,600
b. Debit Cash $16,000
Debit Accounts Receivable $3,200
Credit Service Revenue $19,200
c. Debit Accounts Payable (Pool Corporation) $10,600
Credit Cash $10,600
d. Debit Cash $10,000
Credit Unearned Service Revenue $10,000
e. Debit Wages Expense $3,000
Debit Wages Payable $1,500
Credit Cash $4,500
f. Debit Vehicle Repairs Expense $310
Credit Cash $310
g. Debit Utilities Expense $220
Credit Cash $220
h. Debit Cash $75
Credit Interest Revenue $75
i. Debit Property tax expense $600
Credit Property tax Payable $600
j. Debit Prepaid Insurance $2,400
Credit Cash $2,400
2. Classified Income Statement for the Quarter ended September 30, 2013:
Service Revenue $19,200
Advertising Expense $2,600
Wages Expense 3,000
Vehicle Repairs Expense 310
Utilities Expense 220
Property tax Expense 600 $6,730
Income from operations $12,470
Interest Revenue $75
Income before taxes $12,545
3. The net profit margin ratio = 64.95% ($12,470/$19,200 x 100)
3b. This ratio shows that PPSS is able to control the costs of its operations in such a way that it could convert as much as 65% income from its service revenue.
Data Analysis:
a. Advertising Expense $2,600 Cash $2,600
b. Cash $16,000 Accounts Receivable $3,200 Service Revenue $19,200
c. Accounts Payable (Pool Corporation) $10,600 Cash $10,600
d. Cash $10,000 Unearned Service Revenue $10,000
e. Wages Expense $3,000 Wages Payable $1,500 Cash $4,500
f. Vehicle Repairs Expense $310 Cash $310
g. Utilities Expense $220 Cash $220
h. Cash $75 Interest Revenue $75
i. Property tax expense $600 Property tax Payable $600
j. Prepaid Insurance $2,400 Cash $2,400
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Hector and Maria Gonzales Hector a Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multi−national corporation with offices around the world. She has been told by her company that she will be transferred to a new location every three years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make $8,000 in gross monthly income and pay 40% in taxes and withholdings every month. Between them they have monthly payment of $400 in student loans and $700 in car loans, and their credit cards payments average $450 per month. They currently lease a luxury condo for $1,400 per month. They travel to Cancun every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothing in savings but Hector's grandparents have said they will give them a 20% down payment for the new home. Based on t
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Question Completion:
They have found a very nice townhouse available for $200,000. Assuming a 20% down payment and a 30-year fixed rate mortgage at 6.65%, what will their PITI be? Annual property taxes are $2,400 and homeowner's insurance premium is $900 per year.
Answer:
Hector and Maria Gonzales
Their PITI will be:
Mortgage Payment $1,027.14
Property Tax $200.00
Home Insurance $75.00
Total PITI = $1,302,14
NB: The rule states that Hector and Maria's PITI should not exceed 28% of their pre-tax monthly income.
Explanation:
a) Data and Calculations:
Home Price = $200000
Down Payment = 20
%
Loan Term = 30 years
Interest Rate = 6.65
%
Start Date = Jan 1, 2020
Annual Tax & Other Cost
s
Property Taxes = $2400
Home Insurance = $900
PMI Insurance = $0
HOA Fee = $0
Other Costs = $35400
b) Based on an online financial calculator:
Monthly Pay: $1,027.14
Monthly Total
Mortgage Payment $1,027.14 $369,771.77
Property Tax $200.00 $72,000.00
Home Insurance $75.00 $27,000.00
Other Costs $2,950.00 $1,062,000.00
Total Out-of-Pocket 4,252.14 $1,530,771.77
House Price $200,000.00
Loan Amount $160,000.00
Down Payment $40,000.00
Total of 360 Mortgage Payments $369,771.77
Total Interest $209,771.77
Mortgage Payoff Date Jan. 2050
c) The PITI is an acronym for principal, interest, taxes, and insurance—the sum components of a mortgage payment. It helps Hector and Maria Gonzales to determine the affordability of this mortgage. The Other Costs of $35,400 represent the annual costs of student and car loans, credit cards payments, and the condo, where they live.
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Month Number of Cavities Filled Total Cost January 300 $5,100 February 375 5,300 March 625 6,350 April 400 5,200 May 650 6,300 June 600 6,300 July 350 5,000 August 675 6,300 September 550 6,000 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates, calculate Mountain’s total cost for filling 700 cavitie
Answers
Answer:
Results are below.
Explanation:
Giving the following information:
Month Number of Cavities Filled Total Cost
January 300 $5,100
February 375 5,300
March 625 6,350
April 400 5,200
May 650 6,300
June 600 6,300
July 350 5,000
August 675 6,300
September 550 6,000
To calculate the fixed and variable cost under the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (6,350 - 5,000) / (675 - 300)
Variable cost per unit= $3.6
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 6,350 - (3.6*675)
Fixed costs= $3,920
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 5,000 - (3.6*300)
Fixed costs= $3,920
Now, for 700 units:
Total cost= 3,920 + 3.6*700
Total cost= $6,440
On the last day of December 2016, Camreyâs Trucks entered into a transaction that resulted in a receipt of $216,000 cash in advance related to services that will be provided during January 2017. During December of 2016, the company also performed $128,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the companyâs trial balance showed service revenue of $1,165,470 at December 31, 2016. There are no other prepaid services yet to be delivered, and during the month all outstanding accounts receivable from prior months were collected.If Camrey's trucks makes the appropirate adjusting entry, how much will service revenue will be reflected on the december 31, 2016 income statement?If Camrey's Trucks makes the appropriate adjusting entry, how much will be reported on the December 31, 2016 Balance sheet as unearned revenue?If Camrey's turcks make the appropriate adjusting entry, how much will be reported on the December 31, 2017 Balance sheet as accounts receivable?
Answers
Answer:
A. $ 1,293,470
B. $216,000
C. $128,000
Explanation:
A. Calculation for how much service revenue will be reflected on the december 31, 2016 income statement
Service Revenue show on the Trial Blance = $1,165,470
Add: Services which were neither billed nor paid = $ 128,000
Service Revenue reflected in the Dec.,31 2016 income statement =$ 1,293,470
Therefore how much service revenue will be reflected on the december 31, 2016 income statement will be $ 1,293,470
B. Calculation for how much will be reported on the December 31, 2016 Balance sheet as unearned revenue
Based on the information given we were told
that the company entered into a transaction which had resulted in the company receiving the amount of $216,000 as a cash in advance On the last day of the month of December 2016 which is related to services that will be provided during the month of January 2017 which means that the amount of $216,000 will be the amount of cash to be reported on December 31, 2016 Balance sheet as unearned revenue.
C. Calculation for how much that will be reported on the December 31, 2017 Balance sheet as accounts receivable
Based on the information given we were told that the During the month of December of 2016, the company as well rendered a service of the amount of $128,000 in which the service rendered were neither billed nor paid which means that the amount of cash the company will report on December 31, 2017 Balance sheet as accounts receivable will be $128,000.
Economies of scope A. are cost reductions that flow from cost-saving strategic fits along the value chains of related businesses in the business lineup of a multibusiness corporation. B. arise only from strategic fit relationships in the production portions of the value chains of sister businesses. C. are more associated with unrelated diversification than related diversification. D. are present whenever diversification satisfies the attractiveness test and the cost-of-entry test. E. arise mainly from strategic fit relationships in the distribution portions of the value chains of unrelated businesses.
Answers
Answer:
A. are cost reductions that flow from cost-saving strategic fits along the value chains of related businesses in the business lineup of a multibusiness corporation.
Explanation:
Economies of scope occur when a good is manufactured, the cost of manufacturing a related goods is reduced. It means that there would be reduction in the cost of production of a goods as a result of increase in variety of goods. It is a situation whereby the cost of producing two products is less compare to when that product is produce separately.
It should be noted that economy of scope are cost reductions that flow from cost-saving strategic fits along the value chains of related businesses in the business lineup of a multibusiness corporation.
