Answer:
Efficiency is 87.50% and Utilization is 70%
Explanation:
Actual ouput = 7 loans per day
Effective capacity = 8 loans per day
Design capacity = 10 loans per day
Therefore,
Efficiency = actual output÷effective capacity×100%
= 7 ÷ 8 × 100%
Efficiency = 87.50%
Utilization = actual output÷design capacity×100%
= 7 ÷ 10 × 100%
Utilization = 70%
Would you expect a brick-and-mortar retailer or an online retailer to have a higher asset turnover? Which supply chain drivers impact asset turnover?
I would expect an online retailer to have a higher asset turnover over a brick-and-mortar retailer because they are more adaptable to change as per the customers choice ,they have many choice options for their customers and are more relaxed with their product pricing strategy.
Explanation:
Asset turnover ratio is used to calculate the productivity of an asset.A company's productivity is directly proportional to its asset turn over ratio.
The formula for calculating
Asset Turnover Ratio =Total Sales of an asset/Average total asset
The supply chain drivers that affect asset turnover are Accounts receivable,inventory ,transportation,information, facilities,sourcing and pricing.
An online retailer typically has a higher asset turnover than a brick-and-mortar retailer due to fewer physical assets. However, key supply chain drivers like production, inventory, location, transportation, information, and sourcing also significantly impact asset turnover.
Explanation:Generally, an online retailer is likely to have a higher asset turnover than a brick-and-mortar retailer. This is because online retailers typically need fewer physical assets to operate and can therefore generate more sales per dollar of assets. However, other factors such as their inventory management and supplier relationships can also impact asset turnover.
The key supply chain drivers that impact asset turnover include production, inventory, location, transportation, information, and sourcing. Efficient management of these drivers can help reduce asset levels and increase sales, thus improving asset turnover. For instance, a company with efficient inventory management and supplier relationships may have a higher asset turnover ratio than its competitors even if it operates physical stores.
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Jan and Sam have all of their 2018 tax documents ready to bring to George to prepare their return. These documents include a W-2 for Jan ($52,300), a W-2 for Sam ($48,700), a state tax refund of $475, canceled debt income of $1,800 for Jan, and state lottery winnings of $2,000. They never itemize deductions. What will be their total on Form 1040, line 7? a. $105.275 b. $104,800 c. $103,275 d. $103,000?
Answer:
The answer is b. $104,800
Explanation:
W-2 for Jan $52,300+ Sam $48,700 + canceled debt income of $1,800 + state lottery winnings of $2,000 = $104,800
Which of the following approaches would be best for gaining more insight into the problem? a. Call managers at other Kroger stores and see if they are experiencing similar problems meeting the average start of checkout time goal. b. Conduct a focus group with half a dozen or so cashiers and baggers to allow them an opportunity to identify issues with the checkout process and QueVision system. c. Interview customers to get their opinion about the checkout process.
Answer:
(c) Interview customers to get their opinion about the checkout process
Explanation:
Customers are those who buy goods or receive services from a business owner. Customers may sometimes not be the consumers because the customers may buy from the company and sell to other people to consume. The customers may also be the consumers at times when they consume what they bought. If customers do not buy from the business owners, they won't be consumers, thou consumers are gods in today's market and life wire of any business.Once customers are satisfied with the products and services provided to them by the company, they will continue to patronize the company and never substitute it for another company.Most companies start having problems or loose customers due to nonsatisfaction of goods and services render by the company. Therefore, interviewing the customers to get their opinion about the checkout process is the best approach for gaining more insight into the problem because they are in the best position to state why they are not patronising the company's product again.
Answer:
a. Conduct a focus group with half a dozen or so cashiers and baggers to allow them an opportunity to identify issues with the checkout process and QueVision system.
Explanation:
Otis Thorpe Corporation has 10,000 shares of $100 par value, 8% preferred stock and 50,000 shares of $10 par value common stock outstanding at December 31, 2014.
Answer the questions in each of the following independent situations.
(a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2011, what are the dividends in arrears that should be reported on the December 31, 2014, balance sheet?
The dividends in arrears to be reported on the December 31, 2014 = _______________
(b) If the preferred stock is convertible into 7 shares of $10 par value common stock and 4,000 shares are converted, what entry is required for the conversion assuming the preferred stock was issued at par value? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
c) If the preferred stock was issued at $107 per share, how should the preferred stock be reported in the stockholders’ equity section? (Enter account name only and do not provide descriptive information.)
Answer:
(a) Cumulative dividend is not reported in Balance sheet.
The dividends in arrears on December 31, 2014 is $240,000
(b) Preferred Stock (Dr.) $400,000
Common Stock (Cr.) $280,000
Paid in capital Excess of par (Cr.) $120,000.
(c) Cash (Dr.) $1,070,000
Preferred Stock (Cr.) $1,000,000
Paid in capital (Cr.) $70,000
Explanation:
a. Cumulative dividends on Preferred stocks are not declared and therefore they are not reported in Balance sheet of a company.
To calculate the dividends in arrears on December 31, 2014,
10,000 shares * $100 par value * 8% preferred stock. * 3 years arrears.
= $240,000.
b. Preferred stock conversion into common stock is recorded as common stock account in balance sheet.
Preferred stock conversion amount is 4,000 shares * $100 par value = $400,000. This is presented as debit entry.
The credit entry will be common stock account with $ 280,000 (4,000 * 7 shares conversion * $10 par value).
The difference in both entries will be recorded as paid in capital as credit.
c. When preferred stock is issued cash is increased so debit account will be cash (10,000 shares * $107 per share) and credit entry will be Preferred Stock account in balance sheet at par value (10,000 shares * $100 par value). The remaining is credited in paid in capital of preferred stock account [10,000 shares * $7 ($107 - $100) per share].
The dividends in arrears should be reported as $240,000 on the December 31, 2014 balance sheet. When preferred stocks are convertible and 4,000 are converted, the business needs to debit Preferred Stock and credit to Common Stock. If the preferred stock was issued at $107, it is reported in the equity section as Preferred Stock and Paid-in Capital in Excess of Par (Preferred Stock).
Explanation:(a) Dividends in arrears are calculated as the difference between the last payment date and the date of the Balance sheet. There are three years between December 31, 2011, and December 31, 2014. So, we need to calculate three years of dividends. The amount of the annual dividend is calculated as 8% of the par value (i.e., $100), so the annual dividend per share is $8. For 10,000 shares, it's $80,000 per year. Thus, for three years, it's $80,000 * 3 = $240,000.
(b) If the preferred stock is convertible and 4,000 shares are converted, the entries would be a debit to Preferred Stock for $400,000 (4,000 shares times $100 par value), a debit to Paid-in Capital in Excess of Par (Preferred Stock) for the amount that the preferred stock was issued above its par value (if any), and a credit to Common Stock for $280,000 (4,000 shares times 7 new shares per original share times $10 par value) in the financial journal.
(c) If the preferred stock was issued at $107 per share, the preferred stock would be reported in the shareholders’ equity section as Preferred Stock ($1,000,000) and Paid-in Capital in Excess of Par (Preferred Stock) ($70,000).
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Estimating warranty expenses at 2%, when past history suggests they have experienced 5%, results in an overstatement of expenses and an understatement of liabilities.A. True
B. False
Answer: option B: False
Explanation:
Liabilities and Expenses will both be understated
Answer:
False
Explanation:
Warranty accruals will be accounted for when incurred through the following entries,
Debit Warranty expense
Credit Warranty accrual
Using the history as a basis for accrual estimating the warranty expenses at 2% instead of 5% would result in an understatement of the two accounts stated above.
These are the expense and accrual accounts. As such the answer is false
The incentives built into the market economy ensure that resources are put to good use and that opportunities to make people better off are not wasted.
This means that:
A) people usually are not selfish enough to exploit opportunities to make themselves better off.
B) markets move toward equilibrium.
C) resources should be used as efficiently as possible to achieve society's goals.
D) markets usually lead to efficiency.
Answer:
D) markets usually lead to efficiency.
Explanation:
The incentives built into the economy ensures that the efficiency is achieved in markets except in case of market failure.
What are some of the innovative principles identified by James Brian Quinn that companies need to establish?
Answer and explanation:
American academic and author James Brian Quinn (1928-2012) found the following principles in large companies characterized by innovation: clear atmosphere and division; orientation to the market; small-size, flat organizations; multiple approaches; and, interactive learning.
Some of the innovative factors for company's establishment has been orientation, small, flat organization, multiple approaches, capital, freedom and encouragement.
James Brian Quinn has been American academic and author. He has been the inventor of managerial concept of intelligent enterprise.
According to James, the factor that has been led to the development of the company’s establishment has been:
Orientation: The development has been mediated with the market need. The atmosphere and the vision for the goal have played an important role in the establishment.Small, flat organization: It has been mediated with the growth to the time. The entrepreneur’s have been started from the flat organization to mediate the growth of the organization or company.Multiple approaches: The development with the chaos of the technology and the outside world has been mediating the growth of an organization.Interactive learning: It has been mediated with the learning process to be a continuous with the development of the entrepreneur and the company.The other factors that have been responsible for the company’s establishment have been flexibility, Availability of capital, incentives, along with freedom and encouragement.
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Because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to
a. reduce productivity. Other things the same, this decrease will be larger in a rich country.
b. reduce productivity. Other things the same, this decrease will be larger in a poor country.
c. raise productivity. Other things the same, this increase will be larger in a poor country.
d. raise productivity. Other things the same, this increase will be larger in a rich country.
Answer:
The correct answer is letter "B": reduce productivity. Other things the same, this decrease will be larger in a poor country.
Explanation:
Labor productivity measures the units a worker can produce per hour. Capital, technology, and human development influence the labor productivity employees could have. Poor countries are characterized by having low investments. If the labor force increases but the capital remains stagnant, the level of productivity is likely to fall since there is a surplus in labor hand.
Final answer:
In short, an increase in working population tends to reduce productivity, which is likely to be more pronounced in a rich country because of the higher initial capital per worker. However, the correct option is that productivity decreases and is more impacted in a poor country. Option b is correct.
Explanation:
An increase in the working population has different effects on productivity depending on whether it's a rich or a poor country. In the short term, an increase in the working population is likely to reduce productivity because the same amount of capital is now spread over more workers, reducing the amount of capital per worker.
In a rich country, where the amount of capital per worker is typically higher, this reduction in productivity may be larger because the gains from additional labor are less when capital is already abundant. Conversely, in a poor country, where capital is scarce, adding more labor can actually make better use of the limited capital, such as in the example of more taxi drivers sharing a single vehicle to increase its time on the road and thus, its productivity. In this case, the decrease in productivity due to more workers sharing the same capital might be less pronounced than in a rich country.
Therefore, the correct answer is b. reduce productivity. Other things the same, this decrease will be larger in a poor country.
Brief Exercise 12-8 have a carrying Ayayai Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $300,000. The Johnson Division's net assets, including the good amount of $650,000. The fair value of the division is estimated to be $620,000 and the implied goodwill is $270,000 Prepare Ayayai journal entry to record impairment of the goodwill. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit
Answer:
Explanation:
Since the fair value of the division is less than the carrying value of the division so the loss on impairment is recorded
The journal entry to record the impairment of the goodwill is shown below:
Loss on impairment A/c Dr $30,000
To Goodwill A/c $30,000
(Being loss on impairment is recorded)
The computation is shown below:
= Carrying value - fair value
= $300,000 - $270,000
= $30,000
Final answer:
To record the impairment of goodwill, Ayayai Corporation would debit Loss on Impairment of Goodwill for $30,000 and credit Goodwill for the same amount, reflecting the decrease from the previously recorded $300,000 to the new implied goodwill of $270,000.
Explanation:
The student's question involves recording an impairment of goodwill for Ayayai Corporation's purchase of Johnson Company. Initially, goodwill of $300,000 was recorded, but due to impairment, the fair value decreased, and the implied goodwill is now at $270,000. To record the impairment loss, the company would need to make the following journal entry:
Loss on Impairment of Goodwill Debit $30,000Assume that a consumer is currently maximizing satisfaction and attending both movies and basketball games. If the price of movies decreases, what will happen to the marginal utilities of movies and of basketball games once the consumer adjusts to the new price of movies?
Answer and explanation:
Marginal Utility refers to the benefit or satisfaction obtained from consuming one more unit of a good or service. In economics, something has utility if it satisfies any consumer want or needs whether for usefulness or pleasure. It is a subjective term.
Thus, if the price of ticket movies decreases, its marginal utility will decrease and the marginal utility of tickets for basketball games will increase.
Prahm Corp. wants to raise $4.4 million via a rights offering. The company currently has 500,000 shares of common stock outstanding that sell for $45 per share. Its underwriter has set a subscription price of $20 per share and will charge the company a spread of 6 percent. If you currently own 3,000 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights?
Answer:
price for selling 3000 share right is $25060.87
Explanation:
Given data:
Total Amount raised= $4,400,000
Spreading rate = 6%
Subscription price = $20 per share
Number of share owned by company = 500,000
Per share cost = $45
Totals share own in the company = 3000
subscription price after deducting spreading rate [tex]= 20\times (1 -0.06) = $18.80[/tex]
Now, Right share [tex] = \frac{4400000}{18.8} = 234,043[/tex]
Right price is calculated as
Right price = ((Number of share held * market price) + (Right share *Right price))/( Number of share held + Right share)
plugging all value in above relation
[tex]= \frac{500000 \times 45 + 234043\times 18.8}{500000 + 234043}[/tex]
Right share = $36.65
single right value = 45- 36.65 = $8.35
Price for 3000 share right = 8.35 *3000 = $25060.86
A certain delivery service offers both express and standard delivery. Seventy-five percent of parcels are sent by standard delivery, and 25% are sent by express. Of those sent standard, 80% arrive the next day, and of those sent express, 95% arrive the next day. A record of a parcel delivery is chosen at random from the company's files.
Answer:
Probability, P(n) = 3/8
Explanation: Let standard delivery be S and express delivery be E.
I) When the parcels were sent:
S(n) = 75/100 and E(n) = 25/100
II) When the parcels arrived:
S(n)← = 80/100 and E(n)← = 95/100
The probability a record of a parcel delivery is chosen, P(n) = S(n)*E(n) + E(n)*S(n) = 75/100*25/100 + 25/100*75/100
P(n) = 3/16 + 3/16 = 6/16
∴ P(n) = 3/8
Your mom is thinking of retiring. Her retirement plan will pay her either $ 200 comma 000 immediately on retirement or $ 280 comma 000 five years after the date of her retirement. Which alternative should she choose if the interest rate is: a. 0 % per year? b. 8 % per year? c. 20 % per year?
Answer:
a. $280,000 after 5 years.
b. $200,000 immediately after retirement.
c. $200,000 immediately after retirement.
Explanation:
The future value of a $200,000 payment, after 5 years at a rate 'r' is:
[tex]F = 200,000*(1+r)^5[/tex]
For each rate 'r', your mom should only choose to receive the $200,000 immediately on retirement if F > $280,000, otherwise she should opt for the $280,000 in 5 years.
a. 0 % per year
[tex]F = 200,000*(1+0)^5\\F= \$200,000[/tex]
She should opt for the $280,000 after 5 years.
b. 8 % per year
[tex]F = 200,000*(1+0.08)^5\\F= \$293,865.62[/tex]
She should opt for the $200,000 immediately after retirement.
c. 20 % per year
[tex]F = 200,000*(1+0.2)^5\\F=\$497,664[/tex]
She should opt for the $200,000 immediately after retirement.
As a Christmas thank you for being a good employee, Ed's TV Repair gave 62-year-old Edwina three shares of its stock worth $20 per share. Edwina then received dividends of $1 per share related to the stock. How much should be included in Edwina's gross income? a. $0 b. $60 c. $3 d. $63 e. None of these
Answer:
d. $63
Explanation:
This "thank you" classifies as a performance bonus and, therefore, Edwina should include the whole market value plus dividends received from the three shares of Ed's TV Repair stock that she earned. The total amount for the shares' value plus dividends earned is:
[tex]A = 3*(\$20+\$1)\\A=\$63[/tex]
Edwina should include $63 in her gross income.
What is the relationship between the Employee class and the Manager class? What concept does this demonstrate
Answer:
Here, The Manager class is a child class of Employee class. There is an “Is-A” relationship between the manager and employee classes. Here Manager class extends from Employee class. That means Manager “is an” Employee.
It means Manager class objects will have the fields of the Employee class but it cannot access them on its own as my Name, my Title and my Age are declared private. It has to use super keyword and super class methods and constructors to access those fields. But, Manager class can access mySalary on its own because it is declared protected. As a sub class object can call super class methods ( which are public and protected ), the sub class objects can access those field indirectly by using super class constructors and methods. It means the Manager class cannot directly control the Employee class fields without using Employee class constructors and methods.
The following represent activities in Marc Massoud’s Construction Company project.
a)Draw the network to represent this situation.
b)Which activities are on the critical path?
c)What is the length of the critical path?
Activity Immediate Predecessor(s) Time (weeks) Activity Immediate Predecessor(s) Time (weeks) A — 1 E B 2 B — 4 F C, E 7 C A 1 G D 2 D B 5 H F, G 3
Answer:
BEFH is the critical path of this project with total duration of 16 weeks
Explanation:
Activity Predecessor Time
A - 1
B - 4
C A 1
D B 5
E B 2
F C,E 7
G D 2
H F,G 3
First we draw the network diagram, as shown in the attachment, according to the predecessors of each activity.
Critical activties have zero float (i.e, difference in values of final and initial start or finish of activty)
Critical Path: BEFH
Length: As shown in figure the length of critical path is 16 weeks. In other words, it takes 16 weeks to complete the project.
Answer:
Explanation:
The activities on the critical path are BEFH
The length of the critical path is 16 weeks
Panther Co. had a quality-assurance warranty liability of $359,000 at the beginning of 2018 and $308,000 at the end of 2018. Warranty expense is based on 3% of sales, which were $44 million for the year. What were the warranty expenditures for 2018?
a. $1,320,000
b. $1,269,000
c. $0
d. $1,371,000
Answer:
d.$1,371,000
Explanation:
Given that
Warranty liability at the beginning of year = $359,000
Warranty liability at the end of year = $308,000
Warranty expense = $44 million
Sales percentage = 3%
So, the warranty expense = $44,000,000 × 3% = $13,20,000
So, the warranty expenditures for 2018 is
= Beginning warranty liability + warranty expense - ending warranty liability
= $359,000 + $13,20,000 - $308,000
= $1,371,000
Lewis Industries owns 600,000 shares of Compton Corporation, which it originally purchased for $8 each. On December 1, 2020, Lewis declares it will distribute these shares to its stockholders as a dividend with a December 31 date of payment. The shares have a market price of $7 on the declaration date and $9 on the distribution date. If Lewis’ carrying value for the shares is $5, how much of a reduction in stockholders’ equity should it record as a result of this distribution?
Answer:
The equity will decrease through retained earnigns for 3,000,000 dollars
Explanation:
The company's accounting will distribute the shares at the carrying value of the shares which is $5 per share as for them that is how much they are worth.
600,000 shares x $5 each = $3,000,000
retained earnings 3,000,000 debit
investment on Comption 3,000,000 credit
The equity will decrease through retained earnigns for 3,000,000 dollars
The following information is available for Aikman Company. January 1, 2022 2022 December 31, 2022 Raw materials inventory $21,000 $30,000 Work in process inventory 13,500 17,200 Finished goods inventory 27,000 21,000 Materials purchased $150,000 Direct labor 220,000 Manufacturing overhead 180,000 Sales revenue 910,000 Instructions a. Compute cost of goods manufactured. b. Prepare an income statement through gross profit. c. Show the presentation of the ending inventories on the December 31, 2022, balance sheet. d. How would the income statement and balance sheet of a merchandising company be different from Aikman's financial statements?
Answer:
a. $537,300
b. Aikman Company
Income Statement
For the year ended December 31, 2022
Sales Revenue $910,000
Less: Cost of goods sold
Raw material, beginning 21,000
Add:Purchases 150,000
Raw materials available 171,000
Less: Raw material, end 30,000
Cost of raw material used 141,000
Add: Direct labor 220,000
Prime Cost 361,000
Add: Factory overhead 180,000
Manufacturing cost 541,000
Add: Work in process, beginning 13,500
Less: Work in process, Ending 17,200
Cost of Goods Manufactured 537,300
Add: Finished Goods, beginning 27,000
Less: Finished Goods, Ending 21,000
Cost of Goods Sold 543,300
Gross Profit $366,700
c. Raw materials, ending $30,000
Work in process, ending $17,200
Finished goods, ending $21,000
Total inventory $68,200
d. The difference in the balance sheet and income statement of Aikman Company to Merchandising company is that, Aikman income statement consists of expenses arising from the manufacturing of goods that the merchandising company never incur. In addition to that, Aikman Company has ending inventory of Raw materials, work in process and finished goods while the other merchandising company only has ending inventory of good purchased not yet sold.
Explanation:
a. Aikman's statement of goods manufactured is presented below.
Aikman Company
Statement of Cost of Goods Manufactured
For the year ended December 31, 2022
Raw material, beginning 21,000
Add:Purchases 150,000
Raw materials available 171,000
Less: Raw material, end 30,000
Cost of raw material used 141,000
Add: Direct labor 220,000
Prime Cost 361,000
Add: Factory overhead 180,000
Manufacturing cost 541,000
Add: Work in process, beginning 13,500
Less: Work in process, Ending 17,200
Cost of Goods Manufactured 537,300
b. Income statement of Aikman starts from the sales revenue that the company incurs for the period and then deduct the cost of goods sold to arrive the gross profit.
c. Aikman's inventory balance consists of Raw materials, work in process and finished goods balances.
The cost of goods manufactured for Aikman Company is calculated by adding materials, labor, and overhead costs to the opening WIP inventory and subtracting the ending WIP inventory. This is deducted from sales revenue to reveal gross profit. A merchandising company’s financial statements differ in that their COGS does not involve production costs.
To calculate the Cost of Goods Manufactured (COGM) for Aikman Company, we need to add the costs of materials, labor, and manufacturing overhead to the beginning Work in Process (WIP) inventory, and then subtract the ending WIP inventory. The COGM is the total cost incurred to manufacture products and transfer them into finished goods inventory during a set time period.
To prepare an income statement through gross profit, we need to subtract the COGM from the sales revenue. The balance left is the gross profit. The ending inventories would be presented under the current assets section in the balance sheet dated December 31, 2022.
Comparatively, a Merchandising company's financial statements differ mainly in terms of cost calculation. These companies directly purchase finished goods, thus their Cost of Goods Sold (COGS) would not include production costs such as direct labor or manufacturing overhead that are common for manufacturing companies like Aikman.
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Qualified dividends may be subject to a marginal tax rate of 23.8 percent (20 percent for the capital gain and 3.8 percent tax on net investment income) for taxpayers with income over a certain threshold.
True or False?
Answer:
True
Explanation:
Qualified dividends are ordinary dividend that enjoy special tax privilege by being taxed at lower rate. The rate is based on specific tax rate which range from 0% to 20% depending on the income threshold. Though these dividends are taxed based on this specific lower tax rate compare to income tax rate, they are also subjected to net investment income of 3.8% if they earn above certain threshold.
However for dividends to be qualified, it must meet the two requirements given by the Internal Revenue Service (IRS). The requirements are:
*The dividend must have been paid by an entity incorporated in the United States or a qualifying foreign entity.
* The stock must have been held within the minimum holding period specified by the tax law.
So the answer is true because qualified dividends may be subject to a marginal tax rate of 23.8% for taxpayers with income over a certain threshold as explained above.
You have $86,000 and decide to invest on margin. If the initial margin requirement is 50 percent, what is the maximum dollar purchase you can make?
Answer:
$172,000
Explanation:
Given that,
A person having a amount today for investment = $86,000
Initial margin requirement = 50 percent
Therefore,
Maximum dollar purchase he can make is as follows:
= Amount of money available ÷ Initial margin requirement
= $86,000 ÷ 50%
= $86,000 ÷ 0.50
= ($86,000 × 100) ÷ 50
= $172,000
Therefore, the maximum amount of dollar purchase is $172,000.
Weber Company purchases $52,200 of raw materials on account, and it incurs $62,200 of factory labor costs. Supporting records show that a. The Assembly Department used $31,900 of raw materials and $44,200 of the factory labor. b. The Finishing Department use the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs.Journalize the assignment of overhead to the Assembly and Finishing Departments.
Answer:
This problem requires us to pass journal entry to assign overhead to the Assembly and Finishing Departments.
We know that overhead is allocated on estimation basis through applied overhead account. The basis of assignment is given in the question. The overhead will be assigne/recorded in relevant department work in process cost account. The journal entry is given below.
Debit Assembly WIP Account $ 70,720
(44,200*1.6 = 70.720)
Debit Finishing WIP Account $ 28,000
((62,200-44,200)*1.6 = 28,800)
Credit Factory Overhead applied Account $ 99,520
Manufacturing overhead is allocated to departments based on 160% of labor costs. The assembly department uses more labor thus gets assigned more overhead ($70,720) compared to the Finishing Department ($28,800).
The subject of this question is business, specifically the journalization of costs in a manufacturing firm. To address this, let's first lay out what we know.
The Assembly Department used $31,900 of raw materials and $44,200 of factory labour. The Finishing Department used the remainder which means they used ($52,200 - $31,900) of raw materials or $20,300 and ($62,200 - $44,200) of factory labour or $18,000.
Next, as per the information given, manufacturing overhead is assigned to the departments on the basis of 160% of labor costs. For the Assembly Department, this would be (160/100) * $44,200 which is equal to $70,720. For the Finishing Department, it would be (160/100) * $18,000 which is equal to $28,800.
Therefore, the assembly department is assigned $70,720 in overhead whereas the Finishing Department gets assigned $28,800.
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Now, assume that Addison’s savings institution modifies the terms of her account and agrees to pay 5.8% in compound interest on her $1,000 balance. All other things being equal, how much money will Addison have in her account in nine years?
Answer:
Addison will have $ 1,661 in her account in nine years.
Explanation:
This problem requires us to calculate value of our investment of $ 1000 dollars after nine years. The interest on the investment is 5.8% compounded annually.
This problem can be solved by using simple compounding formula given below.
Future Value = Present Value (1+interest rate%)^-period
Future Value = 1,000 (1+5.8)^9
Future = $ 1,661
True or False: The shape of the production function reflects the law of diminishing marginal returns. True False
Answer: True
Explanation: The slope of the production function measures the change in output for each additional unit of input (the marginal return). It can be observed that the production function becomes flatter as more number of input is added. This exhibits the property of diminishing marginal return where at some point, adding an additional factor of production results in smaller increases in output. At this point, the effectiveness of each additional unit of input decreases.
It should be noted that the shape of the production function reflects the law of diminishing marginal returns.
What is production function?Production function, serves as the equation that explains the relationship that exists between the quantities of productive factors as well as the
amount of product obtained.
It helps to reflects the law of diminishing marginal returns.
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Government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows:
25 pizzas at $10 each
Rent of apartment, $600 per month
Gasoline and car maintenance, $100
Phone service (basic service plus 10 long-distance calls), $50
In the year following the base year, the survey takers determine that pizzas have risen to $11 each, apartment rent is $700, gasoline and maintenance have risen to $120, and phone service has dropped in price to $40.
a) Find the CPI in the subsequent year and the rate of inflation between the base year and the subsequent year
Answer:
1. CPI in the subsequent year: 1,1352. Rate of inflation: 13.5%
Explanation:
1. Calculate the CPI
CPI is the consumer price index.
CPI is created using a basket of goods and services that are typically consumed.
In the given case the typical basket is:
25 pizzasRent of apartmentGasoline and car maintenancePhone service (basic service plus 10 long-distance calls).Then to find the CPI for a determined year you multiply each item by its price and then add up all the results.
For the base year, the expenditures per month were:
25 pizzas at $ 10: $10 × 25 = $250 Rent of apartment: $600Gasoline and car maintenance: $100Phone service (basic service plus 10 long-distance calls): $50Then, the CPI for the base year is:
CPI = $250 + $600 + $100 + $50 = $1,000The year following the base year, the expenditures per month are:
25 pizzas at $ 11 : $11 × 25 = $275 Rent of apartment: $700Gasoline and car maintenance: $120Phone service (basic service plus 10 long-distance calls): $40Then the CPI for the followng year is:
CPI = $275 + $700 + $120 + $40 = $1,1352. Calculate the rate of inflation
The rate of inflation is defined as the increase of the CPI of the given year with respect ot the base year:
The formula to calculate the rate of inflation is:
Inflation = (CPI of the year - CPI of the base year) / (CPF of the base year) × 100Inflation = [ (1,135 - 1,000) / (1,000)] × 100 = 13.5%Hence, the rate of inflation for the subsequent year is 13.5%
Seller agrees to supply all gasoline fire needs for the next year three dollars per gallon. After three months the price of gas falls to 233 per gallon. Buyer refuses to keep buying from seller unless the seller lowers the price. Seller agrees to months later the average price of gas goes up to $3.50 per gallon. Seller asked buyer to agree to the price range, but the buyer refuses which of the following is true
A. Buyer must pay three dollars per gallon for the rest the year
B. buyer must pay $2.33 per gallon for the rest of the year
C. Buyer must pay $3.50 per gallon for the rest of the year
D. Seller can legally refuse to supply by with any more gasoline for the rest of the year
Answer:
B. buyer must pay $2.33 per gallon for the rest of the year.
Explanation:
The correct answer is B. The seller agrees to supply gasoline for next year at $3 per gallon, the buyer agreed to it. When the gasoline prices declined the buyer insisted to reduce price and seller agreed to it. When the prices rise again the seller asked to raise price but buyer refused. Buyer cannot terminate the contract instead it has to continue buying at $2.33 per gallon if the seller is agreed to sell on this price for the rest of the year.
The fiscal 2016 financial statements of Nike Inc. shows average net operating assets (NOA) of $8,450 million, average net nonoperating obligations (NNO) of $(4,033) million, average total liabilities of $9,014 million, and average equity of $12,483 million. The company's 2016 financial leverage (FLEV) is: Select one: A. (0.477) B. (0.559 C. (0.323) D. (0.447) E. There is not enough information to determine the ratio.
Answer:
C. (0.323)
Explanation:
The computation of financial leverage is shown below:
= (Average net nonoperating obligations) ÷ ( average equity)
= ($4,033 million) ÷ ($12,483 million)
= (0.323)
In order to find out the financial leverage, we deduct the average net non-operating obligations by the average equity so that the financial leverage could come
The financial leverage (FLEV) for Nike Inc. in 2016 is approximately 1.91. None of the provided options in the choices accurately represents this ratio, as FLEV is typically a positive value.
To calculate the financial leverage (FLEV) for Nike Inc. in 2016, you can use the following formula:
[tex]\[FLEV = \frac{NOA}{NOA + NNO}\][/tex]
Where:
- NOA = Average Net Operating Assets
- NNO = Average Net Nonoperating Obligations
Plugging in the given values:
NOA = $8,450 million
NNO = $(4,033) million (note that this value is negative)
[tex]\[FLEV = \frac{8,450}{8,450 - 4,033} = \frac{8,450}{4,417} \approx 1.91\][/tex]
Since the result is positive, the correct answer is none of the provided options.
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The potential difference between two parallel plates is 458 V. An alpha particle with mass of 6.64 ×10−27 kg and charge of 3.20 ×10−19 C is released from rest near the positive plate. What is the speed of the alpha particle when it reaches the other plate? The distance between the plates is 40.6 cm.
Answer:
21.01 × 10⁴ m/s
Explanation:
Data provided in the question:
Potential difference between two parallel plates, V = 458 V
Mass of the alpha particle = 6.64 × 10⁻²⁷ kg
Charge released, q = 3.20 × 10⁻¹⁹ C
Distance between the plates, d = 40.6 cm
Now,
qV = [tex]\frac{1}{2}mv^2[/tex]
on substituting the respective values, we get
(3.20 × 10⁻¹⁹) × 458 = [tex]\frac{1}{2}\times(6.64\times10^{-27})v^2[/tex]
or
1465.6 × 10⁻¹⁹ = (3.32 × 10⁻²⁷)v²
or
v = 21.01 × 10⁴ m/s
One approach to organization is putting activities that are similar under one person. ________ called this ""unity of direction.""
Answer:
Explanation:
One approach to organization is putting activities that are similar under one person. Fayol called this ""unity of direction."" . Fayol was the first person who outlined the functions of management. He has fourteen principles of management; Unity of directions is one of the principle which narrates that One boss, one plan for a group, of activities having the same objective. As unity of direction principle, it leads all the members of the organization towards a common goal to achieve its objective.
Final answer:
Henri Fayol proposed the principle of 'unity of direction,' suggesting that similar activities should be managed together, which relates to modern business practices emphasizing core competencies and specialized product lines.
Explanation:
The principle of unity of direction was espoused by Henri Fayol, a French mining engineer and a key figure in the development of modern concepts of management. Unity of direction means that activities which are similar in nature should be managed under one plan and by one manager. This principle aligns with the shift in organizational structures we observe in modern times, where there's a greater emphasis on flat organizational structures and centrality of teamwork. Despite the trend towards less hierarchy and increased collaboration across roles, Fayol's principles still echo in today's business practices where focusing on a core competency and specialized product lines often leads to better success for firms rather than spreading efforts across a wide range of products.
Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years:Number of Visitors per Year: (thousands) Maintenance Costs ($000)1,925 $3,535 2,105 3,868 4,325 7,615Required:a. Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor. (Enter your answers in dollars not in thousands of dollars. Round "Variable cost" answer to 2 decimal places.) b. The company expects a record 2,800,000 visitors next year. What would be the estimated maintenance costs? (Enter your answer in dollars not in thousands of dollars.)
Answer:
formula for maintenance cost:
maintenance cost = 1.7 visitors + 262.5
cost for 2,800,000 visitors $5,022,500
Explanation:
We find and subtract low from high:
[tex]\left[\begin{array}{ccc}High&4325&7615\\Low&1925&3535\\Diference&2400&4080\\\end{array}\right][/tex]
With that we solve for the slope which is the variable cos:
cost 4080
Unis 2400
variable cost 1.7
now, we solve for the fixed cost:
Total Cost 7615.00
Variable 4325 x 1.7 = 7352.50
Fixed Cost 262.50
expected cost for 2,800 visitors:
(2800 x 1.7 + 262.5) x 1,000 = 5,022,500