Answer:
Materials handling= $76.89 per move
Explanation:
Giving the following information:
Activity Cost Activity Base
Materials handling 445,200 Number of moves
To calculate the activity rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Number of Moves:
Disk drives 1,200
Tape drives 790
Wire drives 3,800
Total= 5,790 moves
Materials handling= 445,200 / 5,790
Materials handling= $76.89 per move
what are the intermediaries of netflix
Limerick, Inc. has budgeted total sales for January, February, and March of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 40% are collected in the same month as the sale, and 60% are collected during the first month after the sale. Compute the amount of cash received from sales during the month of February.
Answer:
$905,000
Explanation:
February Collection will be as follows :
February Collection = Cash Sales + Credit Sales
= $900,000 x 25 % + $900,000 x 40 % + $800,000 x 60 %
= $905,000
the amount of cash received from sales during the month of February is $905,000.
Thirty years ago,Star Grocer Corporation purchased a building for its grocery store for $30,000.Based on inflation estimates,the amount of the building has been adjusted in the accounting records.The building is now reported at $75,000 in Star Grocer's financial statements.Which of the following concepts or principles of accounting is being violated?
A) going concern assumption
B) revenue realization concept
C) economic entity assumption
D) cost principle
Answer:
D) cost principle
Explanation:
Cost principle: The term "cost principle" is described as an "accounting principle" that tends to require equity, assets, and liabilities investments to be documented on financial records or documents at their "original price or cost" instead of the ongoing market price or cost. The term "cost principle" is also referred to as "historical cost principle".
In the question above, the principle related to accounting that is being violated is the "cost principle".
Seven years ago the ATT issued 20-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds had a 7.5% call premium, with 5 years of call protection. Today ATT called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Explain why the investor should or should not be happy that ATT called them.
Answer:
1+0.075 x 1000
= 1075
If bonds are called back there would be 75 dollars more compared to fv
We calculate the yield to maturity using excel.
We use this formula to calculate this
YTc is = RATE(7, 11%x1000-1000x1000)x1.075
= 11.749%
Now this investor should be happy they were called by the ATT because the return they got back is more than what they were hoping to get at the time of purchase. YTc is higher and there is 75 dollars more fv
A summary of cash flows for Adventure Travel Service for the year ended April 30, 2019, follows:
Cash Flows
Cash receipts:
Cash receipts from customers $2,080,000
Cash receipt from owner as investment 60,000
Cash payments:
Cash payments for operating expenses 1,706,000
Cash payment for purchase of land 400,000
Cash withdrawals by owner 40,000
The cash balance as of May 1, 2018, was $203,000.
Prepare a statement of cash flows for Adventure Travel Service for the year ended April 30, 2019. Refer to the cash receipts and cash payments information given in the instructions and to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) and the word "Deduct" will automatically appear if they are required. Enter amounts that represent cash outflows as negative numbers using a minus sign.
Answer:
Adventure Travel Service
Statement of cash flows for the year ended April 30, 2019
Cash flow from Operating Activities
Cash receipts from customers $2,080,000
Cash payments for operating expenses ($1,706,000)
Net Cash from Operating Activities $374,000
Cash flow from Investing Activities
Purchase of land ($400,000)
Net Cash from Investing Activities ($400,000)
Cash flow from Financing Activities
Cash receipt from owner as investment $60,000
Drawings ($40,000)
Net Cash from Financing Activities $20,000
Movement in Cash and Cash Equivalents ($6,000)
Beginning Cash and Cash Equivalents $203,000
Ending Cash and Cash Equivalents $197,000
Explanation:
The Statement of Cash flows shows the results of cash from the following sources : Cashflow from Operating Activities, Cashflow from Investing Activities and Cashflow from Financing Activities.
On July 1, Arcola Company purchases equipment for $330,000. The equipment has an estimated useful life of 10 years and expected salvage value of $40,000. The company uses straight-line depreciation. Four years later, economic factors cause the fair value of the equipment to decline to $160,000. On this date, Arcola examines the equipment for impairment and estimates $185,000 in undiscounted expected cash inflows from this equipment.
Required:
a. Compute the annual depreciation expense relating to this equipment.
b. Compute the equipment's net book value at the end of the fourth year.
c. Apply the test of impairment to this equipment as of the end of the fourth year. Is the equipment impaired?
Answer:
a. $29,000
b. $214,000
c. Yes
Explanation:
a. Annual Depreciation expense:
= (Cost - salvage value)/ Useful life
= (330,000 - 40,000) / 10,000
= $29,000
b. Net book value at end of 4th year:
= Cost - 4 year depreciation
= 330,000 - (4 * 29,000)
= $214,000
c. One test to see if equipment is not impaired is that the Expected Undiscounted cashflows need to be higher than the net book value. This is not the case here as the Net Book value of $214,000 is higher than the expected Undiscounted cash inflows of $185,000. Equipment is therefore impaired.
What is a risker loan for the lender?
Answer:
Explanation:
A risky mortgage is really a loan product that doesn't correspond to the borrower's ability to repay it. During the crisis, certain mortgage types were being matched with the wrong borrowers, and lenders were reeling them in with the prospect of refinancing. These loans had a foreclosure start rate of 3.39%.
Accounts Receivable 82,000 debit
Allowance for Doubtful Accounts 2,120 debit
Sales 430,000 credit
Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.)
a. To obtain additional cash, Tamarisk factors without recourse $24,100 of accounts receivable with Stills Finance. The finance charge is 11% of the amount factored.
b. To obtain a 1-year loan of $62,900, Tamarisk pledges $71,900 of specific receivable accounts to Crosby Financial. The finance charge is 8% of the loan; the cash is received and the accounts turned over to Crosby Financial.
c. The company wants to maintain the Allowance for Doubtful Accounts at 7% of gross accounts receivable.
d. Based on an aging analysis, an allowance of $5,899 should be reported. Assume the allowance has a credit balance of $1,204.
Answer:
1) Dr Cash $21,449
Dr Loss on Sale $2,651
Cr Account Receivable $24,100
2) Dr Cash $57,868
Dr Interest Expense $5,032
Cr Note Receivable $62,900
3) Bad Debt Expense $7,860
Allowance for Doubt Acc $7,860
4) Bad Debt Expense $4,695
Allowance for Doubt Account $4,695
Explanation:
Preparation of the journal entries required to record each cases
1) Dr Cash $21,449
($24,100-$2,651)
Dr Loss on Sale $2,651
(11%*$24,100)
Cr Account Receivable $24,100
2) Dr Cash $57,868
($62,900-$5,032)
Dr Interest Expense $5,032
(8%*$62,900)
Cr Note Receivable $62,900
3) Bad Debt Expense $7,860
Allowance for Doubt Acc $7,860
[( 7%*82,000)+$2,120]
4) Bad Debt Expense $4,695
Allowance for Doubt Account $4,695
($5,899-$1,204)
all competitors lose money during the sales decline stage. they are getting longer and profit margins are widening. industry sales reach their maximum during the market growth stage. firms earn their biggest profits during the market introduction stage. industry profits reach their maximum during the market growth stage.
Complete Question:
Regarding product life cycles, good marketing managers know that:
Group of answer choices.
A) all competitors lose money during the sales decline stage.
B) they are getting longer.
C) industry sales reach their maximum during the market growth stage.
D) firms earn their biggest profits during the market introduction stage.
E) industry profits reach their maximum during the market growth stage.
Answer:
E) industry profits reach their maximum during the market growth stage.
Explanation:
A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.
Generally, there are four (4) stages in the product-life cycle;
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
Basically, the introduction stage is the first stage of a product's life cycle, indicating that it is new in the market. Hence, this stage is typically characterized by low (slow) sales and as such the company (producer) has to invest so much in advertisements, marketing and promotional strategies (campaigns) in order to increase customer awareness.
The growth stage is where the producer begins to earn profits as a result of the acceptance of the product in the market.
Regarding product life cycles, good marketing managers know that industry profits reach their maximum during the market growth stage.
This ultimately implies that, the maximum industry profit is realized at the market growth stage of a product life cycle.
Suppose you are taking a luxury tour of a city in a limousine. With just a few passengers, the tour is pleasant and everyone has plenty of space to stretch and move around to see the sights. As more people get in the limo, it may start to become crowded. Suppose the 5th and 6th individuals enter the limousine together. What is your marginal utility (x) associated with this increase of passengers
Answer:
Answer is explained in the explanation section below.
Explanation:
Note: This question is incomplete and lacks necessary data about the number of passengers and total utilities. However, I have found a similar question on the internet and will using its data to solve for this problem. Besides that, I have attached the data in the attachment that I am using in this question.
Solution:
First of all, we are asked to calculate the marginal utility. In order to do that, we need to know the formula for Marginal Utility.
Formula:
Marginal Utility = TU2 - TU1/C2-C1
Where,
MU = Marginal Utility
TU = Total Utility
C = Number of units
So, according to the data provided.
For 0 number of passengers:
MU(0) = 0
For 2 number of passengers:
MU(2) = (100 - 0)/(2-0) = 100/2 = 50
Similarly,
For 4 number of passengers:
MU(4)=(225-100)/(4-2)= (125/2) = 62.5
For 6 number of passengers:
MU(6)=(355-225)/(6-4) = (130/2) = 65
For 8 number of passengers:
MU(8)=(400-355)/(8-6) = (45/2) = 22.5
For 10 number of passengers:
MU(10)=(425-400)/(10-8)= (25/2) = 12.5
Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral arrangements and floral delivery. It takes Anita 30 minutes to finish one floral arrangement and 40 minutes to make a delivery. It takes Jerome 10 minutes to finish one floral arrangement and 30 minutes to make a delivery. Each worker works six hours per day.
a. (Anita, Jerome) ______ absolute advantage in floral arrangements. ______ (Anita, Jerome) has an absolute advantage in deliveries.
b. Anita’s opportunity cost of making one floral arrangement is ________
( 1.33, 0.75, .33, 3) deliveries. Anita’s opportunity cost of making one delivery is ______ (1.33, 0.75, .33, 3) floral arrangments.
c. Jerome’s opportunity cost of making one floral arrangement is _______(.75,3,1.33..33) deliveries. Jerome’s opportunity cost of making one delivery is (3, 1.33, .75, .33) floral arrangements.
d. (Jerome, Anita)_____ has a comparative advantage in floral arrangements. (Jerome, Anita)_____ has a comparative advantage in deliveries.
e. Suppose that, initially, both Jerome and Anita spend four hours each day doing floral arrangements and two hours each day doing deliveries. Now suppose they change their tasks, so that each individual does nothing but the task in which she or he has a comparative advantage. How many more floral arrangements and deliveries could they produce each day?
_________ additional floral arrangements
_________ additional deliveries
Answer:
Davis Florist
a. (Anita, Jerome) __Jerome____ absolute advantage in floral arrangements. __Jerome____ (Anita, Jerome) has an absolute advantage in deliveries.
b. Anita’s opportunity cost of making one floral arrangement is ___0.75__
( 1.33, 0.75, .33, 3) deliveries. Anita’s opportunity cost of making one delivery is __1.33_ (1.33, 0.75, .33, 3) floral arrangements.
c. Jerome’s opportunity cost of making one floral arrangement is ___0.33__(.75,3,1.33..33) deliveries. Jerome’s opportunity cost of making one delivery is 3 (3, 1.33, .75, .33) floral arrangements.
d. (Jerome, Anita)_Jerome____ has a comparative advantage in floral arrangements. (Jerome, Anita)__Anita___ has a comparative advantage in deliveries.
e. Suppose that, initially, both Jerome and Anita spend four hours each day doing floral arrangements and two hours each day doing deliveries. Now suppose they change their tasks, so that each individual does nothing but the task in which she or he has a comparative advantage. How many more floral arrangements and deliveries could they produce each day?
____4_____ additional floral arrangements
____5____ additional deliveries
Explanation:
a) Data and Calculations:
Time it takes Anita to finish one floral arrangement = 30 minutes
Time it takes Anita to make a delivery = 40 minutes
Time it takes Jerome to finish one floral arrangement = 10 minutes
Time it takes Jerome to make a delivery = 30 minutes
b) Absolute Advantage: Jerome will finish 3 floral arrangements (30/10), whereas Anita can only finish 1 in 30 minutes.
c) Anita's opportunity cost is the time it will take her to make a delivery using the same time it takes her to finish one floral arrangement. In 30 minutes time, she can only make (30/40) 0.75 deliveries. Using 40 minutes of making a delivery, she can finish 1.33 (40/30) floral arrangements.
d) Anita's comparative advantage in making deliveries is based on her opportunity cost when compared with Jerome's opportunity cost of making deliveries.
Floral Delivery Total hours
Arrangement
e) Total time spent by
Anita 4 hrs 2 hrs 6 hrs
Jerome 4 hrs 2 hrs 6 hrs
Anita Jerome Total
Number of floral arrangements 8 (240/30) 24 (240/10) 32
Number of deliveries 3 (120/40) 4 (120/30) 7
Anita Jerome
Number of floral arrangements 0 36 (360/10) 36
Number of deliveries 12 (360/30) 0 12
LaFevor Co. acquired 70% of the common stock of Dean Corp. on August 1, 2022. For 2022, Dean reported revenues of $960,000 and expenses of $780,000, all reflected evenly throughout the year. The annual amount of amortization related to this acquisition was $21,000. What is the effect of including Dean in consolidated net income for 2022
Answer:
$66,250
Explanation:
Calculation for What is the effect of including Dean in consolidated net income for 2022
Effect of including Dean in consolidated net income for 2022=[($960,000-$780,000)*5/12]- ($21,000 × 5/12)
Effect of including Dean in consolidated net income for 2022=($180,000 × 5/12)- ($21,000 × 5/12)
Effect of including Dean in consolidated net income for 2022=$75,000-$8,750
Effect of including Dean in consolidated net income for 2022=$66,250
(Note that August 1 to December 31 will give us 5 months)
Therefore the effect of including Dean in consolidated net income for 2022 is $66,250
Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)
Answer:
Underapplied overhead= $1,640
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 497,040 / 21,800
Predetermined manufacturing overhead rate= $22.8 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 22.8*21,500
Allocated MOH= $490,200
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 492,040 - 490,200
Underapplied overhead= $1,640
A Master Limited Partnership (MLP) structure is limited to companies that receive 90% or more of their income from interest, dividends, real estate rents, gain from the sale or disposition of real property, income and gain from commodities or commodity futures, and income and gain from mineral or natural resources activities. True False
Answer:
True
Explanation:
Master limited partnership (MLP) is a publicly traded limited partnership.
MLP is a hybrid of a partnership and a corporation.
There are 2 types of partners in a MLP :
1. General partner : The general partner is engaged in the day to day running of the business. She has an unlimited liability.
2. Limited partner : the limited partner only contributes capital to the business. They are also known as silent partners
MLPs are treated as a limited partnership for tax purposes. A limited partnership has a pass through tax structure. To qualify for this pass through tax structure, MLPs must receive 90% or more of their income from interest, dividends, real estate rents, gain from the sale or disposition of real property, income and gain from commodities or commodity futures, and income and gain from mineral or natural resources activities.
The unrecognized net gain or loss balance must be amortized when it exceeds 10% of the larger of the: beginning accumulated benefit obligation or the market-related asset value. ending accumulated benefit obligation or the market-related asset value. beginning projected benefit obligation or the market-related asset value. ending projected benefit obligation or the market related asset value.
Answer:
beginning projected benefit obligation or the market-related asset value
Explanation:
The balance of the Unrecognized Net Gain or Loss account subject to amortization only if it exceeds 10% of the larger of the beginning balances of the projected benefit obligation or the market-related value of the plan assets.
Amortization is simply the procedure or the process of retiring a debt or recovering a capital investment. This can be done via scheduled, systematic repayment of the principal or a program of periodic contributions to a sinking fund or debt retirement fund.
can individual be too motivated? discuss
Answer:
Yes, an individual can be too motivated. It can negatively affect their personality and perception. They may feel that they have to get things done no matter the cots and they may mistreat people or make poor decisions to accomplish that. Many of them also become arrogant and overconfident.
"Yes," an individual can be too motivated. A complete description is provided below.
Throughout the employment, a person may be erroneously over-motivated. In other words, the motivation or inspiration of an individual might be motivated by circumstances that don't significantly require him to succeed.
The major incentive of a certain individual might have been to impress or satisfy just their authorities.
Learn more:
https://brainly.com/question/20114091
Use the following information about the current year's operations of a company to calculate cash provided by operations.Net income $ 100,000 Decrease in Accounts Payable 5,000 Increase in Accounts Receivable 4,000 Increase in Merchandise Inventory 8,000 Decrease in Salaries Payable 2,000 Depreciation Expense 6,000 Gain on Sale of Machinery 2,000
Answer:
Cash from operations:
Net income $100,000
Depreciation Expense 6,000
Decrease in Accounts Payable (5,000)
Increase in Accounts Receivable (4,000)
Increase in Merchandise Inventory (8,000)
Decrease in Salaries Payable (2,000)
Cash from operations $87,000
Explanation:
a) Data and Calculations:
Net income $ 100,000
Decrease in Accounts Payable 5,000
Increase in Accounts Receivable 4,000
Increase in Merchandise Inventory 8,000
Decrease in Salaries Payable 2,000
Depreciation Expense 6,000
Not an operating activity:
Gain on Sale of Machinery 2,000
b) The gain on the sale of machinery is not an operating activity or a cash flow item. Cash inflow is recorded when there is a sale of the machinery and as an investing activity. Increase in current assets (except cash) are uses of fund together with decreases in current liabilities.
Selected transactions for Therow Corporation during its first month in business are presented below.
Sept. 1 Issued common stock in exchange for $20,000 cash received from investors.
5 Purchased equipment for $9,000, paying $3,000 in cash and the balance on account.
8 Performed services on account for $18,000.
14 Paid salaries of $1,200.
25 Paid $4,000 cash on balance owed for equipment.
30 Paid $500 cash dividend.
Required:
a. Prepare a tabular analysis of the transactions.
b. Journalize the transactions. Do not provide explanations.
c. Post the transactions to T-accounts.
Answer:
Therow Corporation
a) Tabular Analysis of Transactions:
Assets = Liabilities + Equity
1. Cash $20,000 = + Common Stock $20,000
2. Cash -$3,000
Equipment $9,000 = $6,000
3. Accounts
Receivable $18,000 = + Retained Earnings $18,000
4. Cash -$1,200 + Retained Earnings -$1,200
5. Cash -$4,000 -$4,000
6. Cash -$500 + Retained Earnings -$500
b. Sept. 1:
Debit Cash $20,000
Credit Common Stock $20,000
Sept. 5:
Debit Equipment $9,000
Credit Cash $3,000
Credit Accounts Payable $6,000
Sept. 8:
Debit Accounts Receivable $18,000
Credit Service Revenue $18,000
Sept. 14:
Debit Salaries Expense $1,200
Credit Cash $1,200
Sept. 25:
Debit Accounts Payable $4,000
Credit Cash $4,000
Sept. 30:
Debit Dividends $500
Credit Cash $500
c. T-accounts:
Cash
Account Titles Debit Credit
Common Stock $20,000
Equipment $3,000
Salaries Expense 1,200
Accounts payable 4,000
Dividends 500
Accounts Receivable
Account Titles Debit Credit
Service Revenue $18,000
Common Stock
Account Titles Debit Credit
Cash $20,000
Equipment
Account Titles Debit Credit
Cash $3,000
Accounts payable 6,000
Accounts Payable
Account Titles Debit Credit
Equipment $6,000
Cash $4,000
Service Revenue
Account Titles Debit Credit
Accounts receivable $18,000
Salaries Expense
Account Titles Debit Credit
Cash $1,200
Dividends
Account Titles Debit Credit
Cash $500
Explanation:
a) Data and Analysis:
Sept. 1: Cash $20,000 Common Stock $20,000
Sept. 5: Equipment $9,000 Cash $3,000 Accounts Payable $6,000
Sept. 8: Accounts Receivable $18,000 Service Revenue $18,000
Sept. 14: Salaries Expense $1,200 Cash $1,200
Sept. 25: Accounts Payable $4,000 Cash $4,000
Sept. 30: Dividends $500 Cash $500
Danner Company expects to have a cash balance of $53,100 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows.
Collections from customers: January $100,300, February $177,000.
Payments for direct materials: January $59,000, February $88,500.
Direct labor: January $35,400, February $53,100. Wages are paid in the month they are incurred.
Manufacturing overhead: January $24,780, February $29,500. These costs include depreciation of $1,770 per month. All other overhead costs are paid as incurred.
Selling and administrative expenses: January $17,700, February $23,600. These costs are exclusive of depreciation. They are paid as incurred.
Sales of marketable securities in January are expected to realize $14,160 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $29,500. The company wants to maintain a minimum monthly cash balance of $23,600.
Required:
Prepare a cash budget for January and February.
Answer:
Ending Cash Balance:
January = $32,450
February = $23,600
Loan Balance End of Month
January = $0
February = $7,080
Explanation:
Note: See the attached excel file for the cash budget for January and February.
In the attached excel file, the following calculation is made:
Additional loan in February = Minimum monthly cash balance - Preliminary cash balance in February = $23,600 - $16,520 = $7,080
From the attached excel file, we have:
Ending Cash Balance:
January = $32,450
February = $23,600
Loan Balance End of Month
January = $0
February = $7,080
Select the statement that best describes the recommended approach for developing team goals. The highest performing team member develops goals for the team, which the team leader then approves. Individual team members should contribute to and have input over the common team goals. The team leader should determine all goals independently for efficiency, and then share the goals with the team for approval. Long term team goals should be developed by members of the highest level of organizational leadership, while short term goals are usually developed by lower level leaders.
Answer:
Individual team members should contribute to and have input over the common team goals.
Explanation:
A team can be defined as a group of people or set of individuals with various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective.
This ultimately implies that, a team comprises of individuals, workers or employees having complementary skills, knowledge and experience needed to execute a project or task successfully. Therefore, workers working as a team usually interact with the other team members and as a result, this enhances performance and strengthen the level of relationship they share.
Hence, the statement that best describes the recommended approach for developing team goals is that individual team members should contribute to and have input over the common team goals, so as to ensure they are all invested in the set goals.
Team goals shouldn't be created at the organizational level but instead it should be at the team level while being approved by the team leader.
In conclusion, team goals shouldn't be developed by any single team member.
The manager of a manufacturing company knows that they will need a new machine in one of their factories. The new machine will cost them $12,500. The manager has determined that they can afford to pay 15% of the cost of the machine in cash. They can then finance the rest through a credit union. The credit union will charge 1% per year compounded monthly. How much are their monthly payments for 3 years
Answer:
The company will make monthly payments of $299.71 for three years.
This means a total payments of $10,789.60 after the 36th month with an interest charge of $164.60.
Explanation:
a) Data and Calculations:
Cost of new machine = $12,500
Down Payment 15% = 1,875
Amount financed through a credit union = $10,625
Interest rate charged by the credit union = 1% per year compounded monthly.
From an online finance calculator:
Monthly Payment = $299.71
Sum of all periodic payments = $10,789.60
Total Interest = $164.60
People who agreed with the argument made in the speech would most likely have recommended which of the following solutions? Separate but equal segregated facilities to increase job opportunities for white workers Separate but equal segregated facilities to increase job opportunities for white workers A Continuation of the gold standard as the basis for money Continuation of the gold standard as the basis for money B Reduced government involvement in the economy in order to create more competition Reduced government involvement in the economy in order to create more competition C A stronger government role in the economic system A stronger government role in the economic system D
Answer:
A stronger government role in the economic system.
Explanation:
A stronger government role in the economic system will enable the increase of job opportunities for white workers. The government will intervene in the organizations and persuade them to hire and provide work to white workers perhaps a quota can be established or a general advice to all the organizations to increase the job opportunities for the white workers.
If nominal GDP is $10 trillion and real GDP is $8 trillion, then the GDP deflator is Group of answer choices 125, and this indicates that the price level has increased by 125 percent since the base year. 125, and this indicates that the price level has increased by 25 percent since the base year. 80, and this indicates that the price level has decreased by 20 percent since the base year. 80, and this indicates that the price level has increased by 80 percent since the base year.
Answer:
125, and this indicates that the price level has increased by 25 percent since the base year.
Explanation:
GDP deflator = [tex]\frac{nominal GDP }{Real GDP}[/tex] × 100
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
Nominal GDP is GDP calculated using current year prices
Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation
GDP deflator = [tex]\frac{10}{8}[/tex] × 100 = 125%
It means that there has been a 25% increase in price
Hollywood Co. computed an overhead rate for machining costs ($1,500,000) of $15 per machine hour. Machining costs are driven by machine hours. The company produces two products, Chapel and Tower. Chapel requires 60,000 machine hours, while Tower requires 40,000 machine hours. Using activity-based costing, machining costs using machine hours to assign overhead to each product is
Answer:
Results are below.
Explanation:
To allocate overhead to Chapel and Tower, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Chapel:
Allocated MOH= 15*60,000
Allocated MOH= $900,000
Tower:
Allocated MOH= 15*40,000
Allocated MOH= $600,000
define bond economics.
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.20 21,000 units Posts 0.70 79,000 units Additional information about the company follows: Rims require $19 in direct materials per unit, and Posts require $15. 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 Activity Activity Cost Pool Activity Measure Estimated Overhead Cost Rims Posts Total Machine setups Number of setups $ 34,760 110 90 200 Special processing Machine-hours $ 136,670 1,000 0 1,000 General factory Direct labor-hours $ 819,000 9,000 54,000 63,000
Required:
Compute the activity rate for each activity cost pool.
Answer:
Machine setups= $173.8 per setup
Special processing= $136.67 per machine hour
General factory= $13 per direct labor hour
Explanation:
To calculate the activities cost rates, we need to use the following formulas:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setups= 34,760 / 200= $173.8 per setup
Special processing= 136,670 / 1,000= $136.67 per machine hour
General factory= 819,000 / 63,000= $13 per direct labor hour
You tell your grandmother about a car you’re thinking of buying and, as expected, she tells you a story about buying her first brand new car for $1,500. You feel envious of older generations and wish you could buy a new car for $1,500. Because you are focusing on________ dollar amounts rather than __________ dollar amounts, you are failing to recognize that the _________ price of your grandmother's car in today’s dollars would _________ $1,500.
Answer:
You feel envious of older generations and wish you could buy a new car for $1,500. Because you are focusing on nominal dollar amounts rather than real dollar amounts, you are failing to recognize that the real price of your grandmother's car in today’s dollars would greater than $1,500.
Inflation makes the value of a currency i.e. the dollar, become less valuable overtime because it is eroding the currency's value. When a currency is adjusted for the effects of inflation, we see the real value of the currency but when it is not, this is the nominal value.
In the text above, the $1,500 is the nominal value in the past. If this value were to be adjusted for inflation in terms of today's dollars, it would show a greater amount than $1,500 because inflation has diminished the value of $1,500 such that it is not worth as much as it was worth in your grandmother's time.
You open a savings account with a 0.5% per year nominal interest rate, and the economy experiences 3% per year inflation. a. What is the nominal and real annual interest rate on the account? The nominal interest rate is %, and the real interest rate is %. b. What will happen to the purchasing power of the money you place in the account over time? The purchasing power of money in the account will
Answer:
a. The nominal interest rate is 0.5%, and the real interest rate is -2.5%.
b. The purchasing power of money in the account will reduce.
Explanation:
a. What is the nominal and real annual interest rate on the account? The nominal interest rate is %, and the real interest rate is %.
From the question, we have:
Nominal interest rate = 0.5%
Inflation rate = 3%
In economics, the real is interest rate is calculated as follows:
Real interest rate = Nominal interest rate - Inflation rate = 0.5% - 3% = -2.5%
Therefore, the nominal interest rate is 0.5%, and the real interest rate is -2.5%.
b. What will happen to the purchasing power of the money you place in the account over time? The purchasing power of money in the account will
From the question, the interest rate attached to the savings account is a nominal interest rate. Since the nominal interest rate, unlike the real interest rate, is an interest rate that is not adjusted for inflation, the purchasing power of money in the account will reduce.
McElroy, Inc., produces a single model of a popular cell phone in large quantities. A single cell phone moves through two departments, assembly and testing. The manufacturing costs in the assembly department during March follow:
Direct materials $187,500
Conversion costs 163,800
$351,300
The assembly department has no beginning Work-in-Process Inventory. During the month, it started 30,000 cell phones, but only 26,000 were fully completed and transferred to the testing department. All parts had been made and placed in the remaining 4,000 cell phones, but only 50% of the conversion had been completed. The company uses the weighted-average method of process costing to accumulate product costs.
Required:
a. Compute the equivalent units and cost per equivalent unit for March in the assembly department.
b. Compute the costs of units completed and transferred to the testing department.
c. Compute the costs of the ending work-in-process.
Answer:
Part a.
Equivalent units : Materials = 30,000 units ,Conversion Costs = 28,000 units
Cost per equivalent unit : Materials = $6.25 Conversion Costs = $5.85
Part b.
$314,600
Part c.
$36,700
Explanation:
Step 1 : Equivalent units
Materials
Units Completed and Transferred (26,000 x 100 %) 26,000
Units in Ending Work in Process (4,000 x 100%) 4,000
Equivalent units with respect to Materials 30,000
Conversion Costs
Units Completed and Transferred (26,000 x 100 %) 26,000
Units in Ending Work in Process (4,000 x 50%) 2,000
Equivalent units with respect to Materials 28,000
Step 2 : Cost per equivalent unit
Materials = $187,500 ÷ 30,000 = $6.25
Conversion Costs = $163,800 ÷ 28,000 = $5.85
Total unit cost = $6.25 + $5.85 = $12.10
Step 3 : Costs of units completed and transferred to the testing department
Costs of units completed and transferred = 26,000 x $12.10 = $314,600
Step 4 : Costs of the ending work-in-process
Costs of the ending work-in-process = 4,000 x $6.25 + 2,000 x $5.85 = $36,700
5 Make versus buy, activity-based costing. The Svenson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2017 and the expected costs in 2018: Current Costs in 2017 Expected Costs in 2018 Variable manufacturing costs Direct material cost per CMCB $ 180 $ 170 Direct manufacturing labor cost per CMCB 50 45 Variable manufacturing cost per batch for setups, materials handling, and quality control 1,600 1,500 Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs are not made 320,000 320,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 800,000 800,000 Svenson manufactured 8,000 CMCBs in 2017 in 40 batches of 200 each. In 2018, Svenson anticipates needing 10,000 CMCBs. The CMCBs would be produced in 80 batches of 125 each. The Minton Corporation has approached Svenson about supplying CMCBs to Svenson in 2018 at $300 per CMCB on whatever delivery schedule Svenson wants. 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. 2. Suppose the capacity currently used to make CMCBs will become idle if Svenson purchases CMCBs from Minton. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton
Answer:
See below
Explanation:
Expected manufacturing costs 2018:
Direct materials $170 × 10,000 = $1,700,000
Direct labor $45 per unit × 10,000 = $450,000
Variable overhead per batch 1,500 × 80 = $120,000
Fixed overhead:
Avoidable $320,000
Not avoidable $800,000
1. Calculate that total expected manufacturing cost per unit of making CMCBs in 2018
= $1,700,000 + $450,000 + $120,000 + $320,000 + $800,000
= $3,390,000
Cost per unit = $3,390,000/10,000 units
= $339 per unit
2. Svenson should keep manufacturing the CMCBs
Costs if CMCBs are purchased from Minton = ($300 × 10,000) + $800,000
= $3,000,000 + $800,000
= $3,800,000
It means that the cost of purchasing is $410,000 [ $3,390,000 - $3,800,000] higher than the cost of manufacturing.
