Answer:
a. $2,000 underapplied.
Explanation:
Estimated Overhead = $216,000
Estimated Professional hours = 18,000
Predetermined overhead rate = $216,000 / 18,000 = $12 per hour
Actual Professional hours = 17,500
Overhead applied = $12 x 17,500 hours = $210,000
Actual overhead = $212,000
Under applied overhead = Applied overhead - Actual overhead
Under applied overhead = $210,000 - $212,000
Under applied overhead = $2,000
utomobiles sold an automobile for $ 30 comma 000 on account. The cost of the automobile was $ 16 comma 660 . The sale of the automobile came with one year of free oil changes valued at $ 340 . What would be the journal entry to record the sale?
Answer:
Explanation:
Dr Accounts Receivable 30,000
Cr Sales Revenue 46,320
Cr Service revenue 340
Dr Cost of goods sold 16,660
Compute the present value of the pension obligation to these three employees as of December 31, 2021. Assume an 11% interest rate. 2. The company wants to have enough cash invested at December 31, 2024, to provide for all three employees. To accumulate enough cash, they will make three equal annual contributions to a fund that will earn 11% interest compounded annually
Answer:
1.
Tinkers:
PVA = $20,000 × 7.19087* = $143,817
*Present value of an ordinary annuity of $1: n = 15, i = 11% (from PVA of $1)
PV = $143,817 × 0.81162* = $116,725
*Present value of $1: n = 2, i = 11% (from PV of $1)
Evers:
PVA = $25,000 × 7.19087* = $179,772
*Present value of an ordinary annuity of $1: n = 15, i = 11% (from PVA of $1)
PV = $179,772 × 0.73119* = $131,447
*Present value of $1: n = 3, i = 11% (from PV of $1)
Chance:
PVA = $30,000 × 7.19087* = $215,726
*Present value of an ordinary annuity of $1: n = 15, i = 11% (from PVA of $1)
PV = $215,726 × 0.65873* = $142,105
*Present value of $1: n = 4, i = 11% (from PV of $1)
Answer:
The question is not completed but the complete question is in the explanation section below and the solution is attached in the pictures.
Explanation:
Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 14 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Employee Annual Payment Date of
First
Payment
Tinkers $ 27,000 12/31/24
Evers $ 32,000 12/31/25
Chance $ 37,000 12/31/26
When ABC car wash opened its doors at 9 AM, there were already 10 cars waiting in line (first come first serve). New cars arrive at the average rate of 20 cars per hour. The car wash can wash the car at the average rate of 15 cars per hour. If a new car arrives at 10 AM, how many hours should this car expect to wait before it is washed
Answer:
The car that arrives at 10 AM will have to wait for at least 1 hour before it is washed.
Explanation:
First of all, let us lay out the important points:
at 9 AM; 10 cars were already waiting
arrival rate = 20 cars per hour
wash rate = 15 cars per hour.
New car arrives at 10 AM
From the statements above, if 20 cars arrive every hour, it can be inferred that between 9 AM to 10 AM, the number of new cars that arrive = 20 cars.
But remember that before the car was opened, 10 cars were already waiting in line, therefore the total number of cars that arrived between 9 AM and 10 AM = 20 + 10 = 30 cars.
We are also told that the rate of wash of the cars are; 15 cars every hour. Therefore between 9 AM and 10 AM which is 1 hour, 15 out of 30 cars were washed, leaving 15 more cars unwashed. To wash this 15 remaining cars, another hour will pass, so by 11 AM, the cars that arrived between 9 AM and 10 AM will be completely washed. hence the car that arrived at 10 AM, will wait till 11 AM in order to be washed, which is a wait time of 1 hour.
Final answer:
A new car arriving at the ABC car wash at 10 AM, given the existing backlog and the rates of arrival and servicing, should expect to wait about 4 hours before it is washed.
Explanation:
Calculating Waiting Time for a Car Wash
When ABC car wash opened at 9 AM, there were already 10 cars waiting. New cars arrive at an average rate of 20 cars per hour, and the car wash can handle an average rate of 15 cars per hour. For a new car arriving at 10 AM, to calculate its expected waiting time, we must consider both the initial backlog and the rate of incoming cars vs. the car wash rate.
By 10 AM, in one hour, the car wash would have serviced 15 of the initial 10 cars, clearing the initial queue and starting on cars that have arrived since opening. However, during that hour, 20 new cars have arrived, creating a backlog. This backlog continues to grow every hour since the arrival rate (20 cars/hour) is higher than the service rate (15 cars/hour).
The difference in arrival and service rates is 5 cars/hour. The car arriving at 10 AM is effectively the 20th car in line at that moment. We must calculate how long it will take to clear the queue ahead, considering the growing backlog. It requires solving the equation for when the service rate will catch up to the arriving car's position in the queue.
To find the exact waiting time:
Service rate deficit: 5 cars/hour.
Queue position of new arrival: 20th.
Hours to service 20 cars at a deficit of 5 cars/hour = 20 / 5 = 4 hours.
Thus, a car arriving at 10 AM should expect to wait 4 hours before being serviced.
Neeley Grocery has a monthly target operating income of $25,000. Variable expenses are 20% of sales and monthly fixed expenses are $15,000. What is Neeley Grocery's operating leverage factor at the target level of operating income?
Answer:
1.6
Explanation:
In this question, we use the operating leverage factor that is shown below:
Operating Leverage Factor = Contribution ÷ Operating Income
where,
Contribution = Operating income + monthly fixed expenses
= $25,000 + $15,000
= $40,000
And, the operating income is $25,000
So, the operating leverage factor is
= $40,000 ÷ $25,000
= 1.6
The operating leverage factor is 1.6
Calculation of operating leverage factor:
Operating Leverage Factor = Contribution ÷ Operating Income
Here
Contribution = Operating income + monthly fixed expenses
= $25,000 + $15,000
= $40,000
And, the operating income is $25,000
So, the operating leverage factor is
= $40,000 ÷ $25,000
= 1.6
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_________ integration is where a firm uses a mix of in-house and outsourced activities for the various stages of the vertical activity chain. a. Partial c. Backward e. Full b. Tapered d. Forward
Answer:
Tapered integration
Explanation:
Tapered integration is a term in organization theory that is a mix of market exchange and vertical integration. Advantages of vertical integration include risk protection, motivation tool for market and internal division, enlargement of input channels with little capital outlays,
the use of information on internal cost to discuss contracts with market.
Its disadvantages are monitoring issues, inefficiency and minimal production.
The central bank of the fictitious country "Alpha" raises bank reserves by $100. What effect will the increase in bank reserves have on the money supply in each of the following situations: a. If the banking system is a 100% reserve banking system, the money supply will increase by $ . b. The banking system is a fractional reserve banking system with a desired reserve deposit ratio of 0.25, the money supply will increase by $ .
Final answer:
In a 100% reserve banking system, the money supply will increase by the same amount as the increase in bank reserves. In a fractional reserve banking system with a desired reserve deposit ratio, the money supply can be calculated using the money multiplier.
Explanation:
In a 100% reserve banking system, the money supply will increase by the same amount as the increase in bank reserves. So, if the central bank of Alpha raises bank reserves by $100, the money supply will also increase by $100.
In a fractional reserve banking system with a desired reserve deposit ratio of 0.25, the money supply can be calculated using the money multiplier. The money multiplier is the reciprocal of the reserve deposit ratio. In this case, the money multiplier would be 1/0.25 = 4. So, if the central bank of Alpha raises bank reserves by $100, the money supply will increase by $100 x 4 = $400.
Cindy's Car Wash has average variable costs of $2 and average total costs of $3 when it produces 100 units of output (car washes). The firm's total variable cost is A. $300. B. $200. C. $500. D. $100.
Answer:
$200
Explanation:
Total variable cost = average variable cost × quantity
$2 × 100 = $200
Variable cost is cost that varies with production.
If production increases, variable cost increases and if production reduces, variable cost falls. E.g. cost of Labour
Fixed cost is cost thay does not vary with production e.g. rent
I hope my answer helps you
Based on the per unit variable costs of Cindy's Car Wash, the firm's total variable costs are B. $200.
What are the total variable costs?Cindy's Car Wash incurs a variable cost of $2 per car wash.
If there are a 100 car washes, the total variable costs would be:
= Variable cost per wash x Number of washes
Solving gives:
= 2 x 100
= $200
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A clothing retail company is deciding whether to use a traditional marketing research project approach or dive into a CRM system approach to guide their new year’s marketing strategy. Why should it use a CRM system approach?
A clothing retail company should opt for a CRM system over a traditional marketing research approach as it provides real-time data analytics, enables effective customer segmentation, and offers scalability and flexibility to adapt to market changes.
Explanation:A clothing retail company considering whether to use a traditional marketing research project approach or implement a CRM system should lean towards the latter for several reasons. Firstly, a CRM (Customer Relationship Management) system provides real-time data and analytics which can guide more informed decisions. This system can track customer behavior, preferences, and interactions with the brand across multiple channels, providing a holistic view of the customer journey. Secondly, a CRM system enhances the ability to segment customers based on varied criteria, facilitating more targeted and personalized marketing strategies. Using detailed customer profiles, the company can tailor their communications and promotions to meet specific customer needs. Lastly, CRM systems are designed for scalability and flexibility, enabling the company to easily adapt to changes in the market or in customer behavior without the need for starting new research projects from scratch. This adaptability is crucial in today's fast-paced retail environment in which trends and consumer preferences can shift rapidly. Overall, a CRM system can offer a dynamic and comprehensive approach to crafting a marketing strategy that is responsive to customers' evolving demands.
Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill. Zephron Music returned 25% of the goods to the seller and later took a 1% purchase discount. Assume Zephron Music uses a perpetual inventory system. What is Zephron Music's final cost of the inventory that it kept? (Round your answer to the nearest whole number.)
Answer:
Cost of the inventory kept by Zephron Music is $3495
Explanation:
Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill
Inventory $4660 (debit)
Trade Payable $ 4400 (credit)
Bank $260 (credit)
Recognise an Asset - Inventory and De-recognise asset - Bank
Zephron Music returned 25% of the goods to the seller, took a 1% purchase discount
Trade Payable $1212
Inventory $1165 (credit)
Discount Received $47 (credit)
Therefore Inventory Balance = $4660-1165 = $3495
Final answer:
Zephron Music’s final cost of the inventory that it kept is calculated by adding freight charges to the initial purchase cost, subtracting the cost of returned goods, and applying a purchase discount before rounding to the nearest whole number, resulting in $3,524.
Explanation:
To calculate Zephron Music’s final cost of the inventory kept after purchasing, returning a portion, and receiving a purchase discount, we follow these steps:
Start with the initial inventory cost which is $4,400.Add the freight charges of $260 to the initial cost to get the total cost before returns and discounts.Calculate 25% of the initial inventory cost to find out the cost of goods returned and subtract it from the total cost.Lastly, calculate a 1% purchase discount on the remaining cost after returns and subtract it to get the final cost of kept inventory.Performing these calculations we have:
Total cost before returns and discounts: $4,400 + $260 = $4,660.Value of returned goods: 25% of $4,400 = $1,100.Cost after returns: $4,660 - $1,100 = $3,560.1% discount on $3,560: $35.60.Final cost of inventory kept: $3,560 - $35.60 = $3,524.40 which is rounded to $3,524.Assume the following: (1) Desired target operating income $20,000; unit price for sales $500; variable costs per unit $300; total fixed cost $10,000. (2) We have applied the formula to calculate the contribution margin method of determining target operating income, and have arrived at a numerator amount of $30,000 (20,000 plus 10,000) and a denominator amount of $200 (500 minus 300). (3) These figures yield an answer of 150 units (30,000 divided by 200). What is the required revenue to achieve the target operating income of $20,000?
Answer:
$75,000
Explanation:
The targeted operating income is the difference between the targeted total sales and the budgeted total cost. The total cost is the sum of the fixed and variable cost. The sales and variable cost are dependent on the level of activities or number of units produced and sold.
The difference between the sales and variable cost gives the contribution margin.
Let the number of units sold be c
500c - 300c - 10,000 = 20,000
200c = 30,000
c = 150 units
Required revenue to earn target income is the product of the unit sales with the number of units sold
= $500 × 150
= $75,000
Answer:
$75,000 sales revenue
Explanation:
We solve using the target profit formula:
[tex]\frac{Fixed\:Cost + Target Profit }{Contribution \:Margin} = Units for Profit[/tex]
Where:
[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]
We divide the fixed cost and the target profit over the amount of contribution generate for each unit:
500 sales price - 300 variable cost = 200
Now:
[tex]\frac{10,000 + 20,000 }{200} = Units for Profit[/tex]
150 units
Last, we multiply by the sales revenue per unit:
150 units x $500 = $75,000
Karen Bates has owned several automobiles from her favorite brand. Therefore, when deciding to purchase a new car for her daughter, her brand loyalty made the decision easy. Consequently, she gifted her daughter the latest model of that brand. According to the functional theory of attitudes, this scenario relates to the _____.
Answer: Knowledge function of attitudes
Explanation:
Knowledge function of attitude helps with the decision making process. Knowledge helps customers make a buying decision based off of what they know about the products and brands they are buying. For example, as a consumer I am an exclusive apple product user. If apple comes out with a product, I trust their quality based off the other products I already own. Because I have the knowledge of my apple products, I can make a simple decision on any future apple products I would want
Answer:
The correct answer is letter "B": knowledge function of attitudes.
Explanation:
American psychologist Daniel Katz (1903-1998) proposed there are four (4) functions of attitudes: Adjustment Function, Ego-Defensive Function, Value-Expressive Function, and Knowledge Function.
The Knowledge Function of attitudes represents individuals' needs for having a consistent and stable source of information. It helps them perceive the world as "more understandable", therefore predictable. The absence of this type of function creates individuals to be reluctant over a certain matter.
Thus, Karen Bates's example relates the reluctant Knowledge Function of attitudes since she predictably gifted her daughter a vehicle from the brand she has always purchased from.
Three stocks have share prices of $37, $115, and $85 with total market values of $540 million, $490 million, and $290 million, respectively. If you were to construct a price-weighted index of the three stocks, what would be the index value?
Answer:
Index value is $79
Explanation:
Index value calculation comes from the prices of the underlying holdings. Most indices have values based on market-cap weighting, revenue-weighting, float-weighting, and fundamental-weighting.
For index calculations, weighted average mathematics is used as values are derived from a weighted average calculation of the value of the total portfolio. As such, price-weighted indexes will be more greatly impacted by changes in holdings with the highest price, market cap weighted indexes will be most greatly impacted by changes in the largest stocks, and so on depending on the weighting characteristics.
Price index = average of share prices
Price index = [tex]\frac{37+115+85}{3}=\frac{237}{3} =79[/tex]
Price index = $79
The index value of a price-weighted index made up of three stocks with prices of $37, $115, and $85 is calculated by summing the prices and dividing by the number of stocks, resulting in an index value of $79.
To construct a price-weighted index of the three stocks with share prices of $37, $115, and $85, you would first sum the prices of the stocks. The formula for a price-weighted index is the sum of the stock prices divided by the number of stocks, which in this case is 3.
Sum of stock prices = $37 + $115 + $85 = $237
Then, you divide this sum by the number of stocks to get the index value:
Index value = $237 / 3 = $79
Therefore, the index value for these three stocks would be $79.
Deciding to Buy. Dave and Diane Starr of New Orleans, Louisiana, both of whom are in their late 20s, currently are renting an unfurnished two-bedroom apartment for $1,200 per month, plus $230 for utilities and $34 for insurance. They have found a condominium they can buy for $170,000 with a 20 percent down payment and a 30-year, 6.5 percent mortgage. Principal and interest payments are estimated at $860 per month, with property taxes amounting to $150 per month and a homeowner's insurance premium of $900 per year. Closing costs are estimated at $4,200. The monthly homeowners association fee is $275, and utility costs are estimated at $240 per month. The Starrs have a combined income of $90,000 per year, with take-home pay of $5,800 per month. They are in the 25 percent tax bracket, pay $225 per month on an installment loan (ten payments left), and have $39,000 in savings and investments outside of their retirement accounts. (d) Available financial information suggests that mortgage rates might increase over the next several months. If the Starrs wait until the rates increase 1/2 of 1 percent, how much more will they spend on their monthly mortgage payment
Answer:
Total cost of house is $170,000
Total loan to be taken = 170,000 x (1 - 0.20) = $136,000
Current annual Interest rates = 6.5%, current monthly interest rate = 6.5% / 12= 0.5417%
number of monthly periods = 30 * 12 = 360
Monthly installment (payment) on loan = $860 (859.6)
If interest rate increases by 0.5% to 7%, Monthly interest rate = 7%/12 = 0.583%
using excel formula,
Monthly installment for new monthly interest rate of 0.583% =PMT(0.583%,360,-136000,0)
New Monthly payment = $904.8
Increase in monthly mortgage payment = 904.8 - 859.6
Increase in monthly mortgage payment = $45.2
They will have around $45 additionally on monthly mortgage payment if interest increase by 0.5% to 7%
Cedric, a brand manager, transferred from the united States to japan He dscovered that athough people in the Unted States highly vale ind to conform to group expectations. Cedric conclded that japan places more of an emphasis on
A.collectivism
B.self-control
C.ubral relativium
D.political differences
Answer: collectivism
Complete Question:
Cedric, a brand manager, transferred from the united States to japan He discovered that although people in the United States highly valued individualism, people in Japan expect individuals to conform to group expectations. Cedric concluded that Japan places more of an emphasis on:
Explanation: Collectivism values the group over individuals belonging to the group. In cultures where collectivism is the norm, individuals tend to want to conform to the group expectations. Also, it is common for individuals in collectivist societies to define themselves as belonging to a group than as individuals so groups are a way of identifying themselves.
While individualism values individuals's right and uniqueness, collectivism does not but sees value in maintaining the cohesion in a group, which in turn promotes conformity.
Suppose you are interested in selling your home and would like to clear a net value of $300,000.
If you have agreed to pay your broker a commission of 5.5% (no matter who ultimately is responsible for finding the buyer), what price must you sell the home for in order to meet your net profit (rounded to the nearest dollar)?A. $282,540
B. $300,000
C. $316,500
D. $317,460
Answer:
The correct answer is:
$317,460 (D.)
Explanation:
At the end of sales, after deducting the 5.5% commission of broker fee, the amount left as net value = $300,000. It can also be said that the total amount will be $300,000 + 5.5% of the total amount.
Let the price which the home is to be sold be "X"
From the statement above, the equation below can be written:
$300,000 + (5.5% of X) = X
X - (5.5% of X) = $300,000
Note that 5.5% of X = 5.5/100 × X = 0.055X
∴ X - (5.5% of X) = $300,000
= X - 0.055X = 300,000
0.945X = 300,000
X = [tex]\frac{300,000}{0.945} = 317,460.31[/tex]
= $317,460 (to the nearest dollars)
Final answer:
To clear a net value of $300,000 after paying a 5.5% commission, the home must be sold for about $317,460, which is the amount obtained by dividing the desired net by 0.945, accounting for the retained percentage after commission.
Explanation:
To determine the selling price of the home to clear a net value of $300,000 after paying a 5.5% broker commission, you need to set up an equation to account for the commission. Let's call the selling price P. The equation to represent this scenario is P - 0.055P = $300,000. Solving this equation for P will give us the required selling price to achieve the net value desired.
First, we can rewrite the equation as P(1 - 0.055) = $300,000. Doing the math, we get P = $300,000 / 0.945, which equals approximately $317,460. Therefore, the home must be sold for about $317,460 to meet the net profit after commission.
Following are the calculations to get the precise answer:
First, we calculate the percentage that the homeowner will receive after commission, which is 100% - 5.5% = 94.5%.
We then express the percentage as a decimal for calculation: 94.5% = 0.945.
Finally, we divide the desired net amount by the percentage the homeowner keeps: $300,000 / 0.945 = $317,460.05, which rounds to $317,460.
Therefore, the correct answer is D. $317,460.
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:
Puget Sound Divers
Planning Budget
For the Month Ended May 31
Budgeted diving-hours (q) 250
Revenue ($440.00q) $ 110,000
Expenses:
Wages and salaries ($11,800 + $128.00q) 43,800
Supplies ($3.00q) 750
Equipment rental ($2,100 + $22.00q) 7,600
Insurance ($4,000) 4,000
Miscellaneous ($530 + $1.48q) 900
Total expense 57,050
Net operating income $ 52,950
Required:
During May, the company’s activity was actually 240 diving-hours. Complete the following flexible budget for that level of activity. (Round your answers to nearest whole dollar.)
Answer:
Explanation:
Calculation of items needed for construction of budget:
During May, the company’s activity was actually 240 diving-hours. So all items should be calculated with 240 diving-hours instead of 250.
Revenue = Revenue per diving hour* Diving hours = 440*240 = $105,600
Wages and salaries = $11,800+$128*240 = $42,520
Supplies = $3*240 = $720
Equipment rental = $2100 + $22*240 = $7380
Miscellaneous = $530 + $1.48*240 = $885
Flexible budget
For the month ended May 31
Revenue 105,600
Less: Expenses
Wages and salaries (42,520)
Supplies (720)
Equipment rental (7380)
Miscellaneous (885)
Insurance (4000)
Total expenses 55,505
Net income 50,095
If an investment of $35,000 is earning an interest rate of 8.00%, compounded annually, then it will take for this investment to reach a value of $44,089.92—assuming that no additional deposits or withdrawals are made during this time.
Answer:
Therefore the required time period is 3 years.
Explanation:
To calculate the number of period we are using the following formula of future value
Future value = [tex]C_0(1+r)^n[/tex]
[tex]C_0[/tex] is cash flow at period 0= $ 35,00
r = rate of interest = 8.00% = 0.08
n= number of periods = ?
Future value = $44,089.92
Substituting the values in the formula
[tex]44,089.92= 35,000(1+0.08)^n[/tex]
[tex]\Rightarrow (1+0.08)^n=\frac{44089.92}{35000}[/tex]
[tex]\Rightarrow(1.08)^n = 1.259712[/tex]
[tex]\Rightarrow (1.08)^n=(1.08)^3[/tex]
[tex]\therefore n= 3[/tex]
Therefore the required time period is 3 years.
Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against inflation. Suppose also that the supplies of both are fixed in the short run (Qg =60 and Qs=270) and that the demands for gold and silver are given by the following equations:
Pg = 930− Qg +0.50 Ps and Ps = 600− Qs S + 0.50 Pg.
What the the equilibrium prices of gold and silver?
The equilibrium price of gold is$_______and the equlibrium price of siliver is $________. (Enter your responses rounded to two decimal places.)
What if a new discovery of gold doubles the quantity supplied to 120? How will this discovery affect the prices of both gold and silver?
The equilibrium price of gold will be $_______ and the equlibrium price of siliver will be$________.
Answer:
a) Gold = $1,380; Silver = $1,020
b) Gold = $1,300; Silver = $980
Explanation:
a) At first, with Qg = 60 and Qs = 270, the equilibrium prices for gold and silver are found by solving the following linear system:
[tex]P_g = 930-60 +0.50 P_s\\P_s = 600 - 270 + 0.50P_g\\\\-P_s=1740 -2P_g\\P_s = 330+ 0.50P_g\\P_g = 1,380\\P_s = 1,020[/tex]
Equilibrium price of gold is $1,380 and the price of silver is $1,020.
b) If the supply of gold increases to 120, since the goods are substitutes, there will be an increase in overall supply and the equilibrium price of gold and silver will decrease as follows:
[tex]P_g = 930-120 +0.50 P_s\\P_s = 600 - 270 + 0.50P_g\\\\-P_s=1620 -2P_g\\P_s = 330+ 0.50P_g\\P_g = 1,300\\P_s = 980[/tex]
Equilibrium price of gold is $1,300 and the price of silver is $980.
Final answer:
The equilibrium prices of gold and silver are $870 and $330 respectively. If the gold supply doubles, the new equilibrium price of gold is $750, while the price of silver remains unchanged at $330.
Explanation:
To find the equilibrium prices of gold (G) and silver (S), which are substitutes, we are given the quantities supplied (Qg and Qs), which are fixed in the short run, and the demand equations for each. The quantity supplied for gold is 60 and for silver is 270. We can set up the demand equations as:
For gold, Pg = 930 - Qg + 0.50 Ps, and for silver, Ps = 600 - Qs + 0.50 Pg.
We plug in the fixed quantities to find the equilibrium prices:
Pg = 930 - 60 + 0.50 Ps
Ps = 600 - 270 + 0.50 Pg.
After simplifying, the equations become:
Pg = 870 + 0.50 Ps
Ps = 330 + 0.50 Pg.
Substituting the second equation into the first, we find the equilibrium prices. The equilibrium price for gold (Pg) is $870 and for silver (Ps) is $330.
When considering a new discovery that doubles the quantity supplied for gold to 120, we have a new set of demand equations:
Pg = 930 - 120 + 0.50 Ps
Ps = 600 - 270 + 0.50 Pg, which reduces to
Pg = 810 + 0.50 Ps.
By solving these equations, we determine the new equilibrium prices after the discovery. The new equilibrium price for gold is approximately $750 and for silver, the price remains at $330.
Silmon Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 5.1 grams $ 6.00 per gram
Direct labor 0.5 hours $ 13.00 per hour
Variable overhead 0.5 hours $ 2.00 per hour
The company produced 5,300 units in January using 39,410 grams of direct material and 2,390 direct labor-hours. During the month, the company purchased 44,500 grams of the direct material at $1.80 per gram. The actual direct labor rate was $20.30 per hour and the actual variable overhead rate was $6.90 per hour.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials quantity variance for January is:
Answer:
Material quantity variance =$74, 280 unfavorable
Explanation:
The material quantity variance occurs when the actual quantity of material used to achieve a given level of output is more or less than the standard quantity expected.
For Silmon Corporation, it can be computed as follows:
Quantity variance is
Gram
5,300 units should have used ( 5300× 5.1 ) 27,030
but did used 39,410
Variance in quantity 12,380 Unfavorable
Price per unit × $6
Material quantity variance $ 74,280. Unfavorable
Material quantity variance =$74, 280 unfavorable
Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2019. For 2019, Kailey reported revenues of $810,000 and expenses of $630,000, not including its investment in Denber, and all reflected evenly throughout the year. The annual amount of amortization related to this acquisition was $15,000. What is the amount of the noncontrolling interest's share of Kailey's income for 2019?a. $72,000.b. $22,000.c. $66,000.d. $24,000.e. $48,000.
Answer:
correct option is b. $22,000
Explanation:
given data
reported revenues = $810,000
expenses = $630,000
annual amount of amortization = $15,000
solution
we get here net income 2019 is
net income 2019 = revenue - expenses - amortization ........1
put here value
net income 2019 = $810,000 - $630,000 - $15,000
net income 2019 = $165,000
and
as here acquired stock on September
so we get here income for September to December that is
net income = $165,000 × [tex]\frac{4}{12}[/tex]
net income = $55000
and
non controlling interest is
non controlling interest = 40% of $55000
non controlling interest = $22,000
so correct option is b. $22,000
Final answer:
The noncontrolling interest's share of Kailey Corp.’s income for 2019 is calculated by taking 40% of Kailey's net income after typical expenses and amortization deductions. The net income is determined to be $165,000, of which the noncontrolling interest owns 40%, resulting in a share of $66,000.
Explanation:
To calculate the noncontrolling interest's share of Kailey's income for 2019, we need to calculate Kailey Corp.’s net income for the period after accounting for any amortization related to the acquisition by Denber Co. To start, we calculate the net income before the noncontrolling interest's share.
Revenues: $810,000Expenses: $630,000Amortization related to the acquisition: $15,000Net Income: $810,000 - $630,000 - $15,000 = $165,000Since Denber Co. acquired 60% of the common stock, the noncontrolling interest owns the remaining 40% of Kailey Corp. Therefore, we calculate the noncontrolling interest's share of Kailey's income as follows:
Noncontrolling Interest's Share of Net Income = 40% of $165,000 = $66,000
Therefore, the correct answer is $66,000.
The real risk-free rate is 2.25%. Inflation is expected to be 2.5% this year and 4.25% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities
Answer:
yield on 2 year treasury = 5.63 %
Explanation:
given data
real risk-free rate = 2.25 %
Inflation rate year 1 = 2.5 %
Inflation rate year 2 = 4.25 %
solution
we get here average inflation rate is
average inflation rate = [tex]\frac{2.5+4.25}{2}[/tex] ...........1
average inflation rate = 3.38 %
so here yield on 2 year treasury
yield on 2 year treasury = real risk-free rate + average inflation rate + MRP ...............2
yield on 2 year treasury = 2.25 % + 3.38 % + 0%
yield on 2 year treasury = 5.63 %
Wimpy Inc. produces and sells a single product. The selling price of the product is $155.00 per unit and its variable cost is $62.00 per unit. The fixed expense is $341,460 per month. The break-even in monthly dollar sales is closest to_____________.a. $853,650b. $512,190c. $569,100d. $341,460
Answer:
Option c. $569,100Explanation:
At the break-event the profit is zero, or the total costs equal the revenue.
1. Revenue
Revenue, R(x), is the product of the price by the number of units sold (x).
R(x) = $155.00x2. Cost
The cos, C(x) is the sum of the fixed costs and the variable cost. The variable cost is the product of the variable cost per unit and the number of units sold:
C(x) = $341,460 + $62.00x3. Break-even
Make the equation R(x) = C(x) and solve:
341,460 + 62x = 155xx = 341,460/93x = 6,442.64 units ≈ 6,442.64 units4. Calculate the revenue with 6,442.64 units:
R(6,442.64) = 155(6,442.64) = $569,100Kevin is a retired teacher who lives in Philadelphia and teaches tennis lessons for extra cash. At a wage of $40 per hour, he is willing to teach 7 hours per week. At $50 per hour, he is willing to teach 10 hours per week. Using the midpoint method, the elasticity of Kelvin's labor supply between the wages of $40 and $50 per hour is approximately, which means that Kelvin's supply of labor over this wage range is:_______.
Kelvin's supply of labor over this wage range is 3.80
Explanation:
This is Price elasticity supply issue, and wages / hours are independent variables.
Price elasticity of supply tests the response to the supply of a product or service following a shift in its market price. The supply of a good will increase as its prices rise according to basic economic principles. On the other hand, when its price declines, goodwill supplies decline
So, PES ( Kevin's labor) = {(10-7)/[(10+7)/2)} /{(50-40)/[(50+40)/2]}
= 24.75/6.5 = 3.80
Assume the following information for Kingbird Corp. Accounts receivable (beginning balance) $139,000 Allowance for doubtful accounts (beginning balance) 11,370 Net credit sales 944,000 Collections 908,000 Write-offs of accounts receivable 5,300 Collections of accounts previously written off 1,800
To create the T-account balance sheet, we list the bank's reserves, loans, and government bonds as assets, and the deposits as liabilities. Subtracting the liabilities from the assets, we find the net worth to be $220.
Explanation:To set up a T-account balance sheet for the bank, we must list the bank's assets on one side and the liabilities and net worth (equity) on the other. The assets of the bank include its reserves and any loans it has made or government bonds it has purchased. The liabilities are primarily the deposits from customers. Net worth is calculated by subtracting total liabilities from total assets.
Bank's T-Account Balance Sheet:
Assets:
Reserves: $50Loans: $500Government Bonds: $70Liabilities:
Deposits: $400To calculate the bank's net worth, subtract the total liabilities from the total assets:
Total Assets = Reserves + Loans + Government Bonds = $50 + $500 + $70 = $620
Total Liabilities = Deposits = $400
Net Worth = Total Assets - Total Liabilities = $620 - $400 = $220
Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant. Amazon has 4,700 stock options outstanding, which were granted at the beginning of 2020. The following data relate to the option grant.
Exercise price for options $40
Market price at grant date (January 1, 2020) $40
Fair value of options at grant date (January 1, 2020) $7
Service period 5 years
Required:
1. Prepare the journal entries for the first year of the stock-option plan.
Explanation:
The Journal entry is given below:-
1 January 2020 No Entry
31 December 2020 Compensation Expense Dr, 6,580
To, Paid-In-Capital 6,580
(Being the compensation expense stock-option plan is recorded)
Working Note:-
Compensation Expense
= $7 × 4,700 ÷ 5
= $7 × 940
= $6,580
Suppose that, historically, April has experienced rain and a temperature between 35 and 50 degrees on 20 days. Also, historically, the month of April has had a temperature between 35 and 50 degrees on 25 days. You have scheduled a golf tournament for April 12. If the temperature is between 35 and 50 degrees on that day, what will be the probability that the players will get wet
Final answer:
If the temperature on April 12 is between 35 and 50 degrees, the probability that it will rain, based on historical data, is 20/25, which simplifies to 4/5 or an 80% chance.
Explanation:
The question asks about the probability of rain given a specific temperature range. If historically April experiences rain on 20 days with temperatures between 35 and 50 degrees, and there are 25 days in April with temperatures in that range, one can assume these temperatures are a prerequisite for rain. If it is between 35 and 50 degrees on April 12, the probability that it will rain on that day can be calculated by dividing the number of rainy days within that temperature range (20 days) by the total number of days with that temperature range (25 days).
Thus, the probability that it will rain is 20/25, which simplifies to 4/5 or 0.80. Therefore, there is an 80% chance that the players will get wet during the golf tournament if the temperature is between 35 and 50 degrees.
In 2007, Americans smoked 19.219.2 billion packs of cigarettes. They paid an average retail price of $4.504.50 per pack. a. Given that the elasticity of supply is 0.50.5 and the elasticity of demand is negative 0.4−0.4, derive linear demand and supply curves for cigarettes. The demand equation is
Answer:
equation for demand is Q=26,906,880,000,150 - 1,706,666,666.7P
equation for supply is Q=9,609,600,000,150.2 + 2,133,333,333.3P
Pls find all other required parameters in the explanation
Explanation:
Let the demand curve be of the general form Q = a - bP
Let the supply curve be of the general form Q = c + dP
where a, b, c, and d are the constants that you have to find from the information given in the equation
To begin, recall the formula for the price elasticity of demand
E = (P/Q)(ΔQ/ΔP)
Where P is the price per pack = $4,504.50
Q is the quantity of packets= 19,219.2 billion
You are given information about the value of the elasticity E as -0.4
So solve for the slope, which is b in the above formula for the demand curve using the equation E = (P/Q)(ΔQ/ΔP
−0.4 = ($4,504.50/19,219200000000)(ΔQ/ΔP)
ΔQ/ΔP = −0.4(19,219200000000/$4,504.50)
= −1,706,666,666.7= −b.
To find the constant a, substitute for Q, P, and b into the demand curve formula
Q = a - bP
so
19,219200000000 = a - 1,706,666,666.7 × 4,504.50
19,219200000000 = a - 7,687,680,000,150.1
a = 19,219200000000 + 7,687,680,000,150.1
a = 26,906,880,000,150
The equation for demand is therefore
Q=26,906,880,000,150 - 1,706,666,666.7P.
To find the supply curve,
recall the formula for the elasticity of supply and follow the same method as above: E = 0.5
E= (P/Q)(ΔQ/ΔP)
0.5 = ($4,504.50/19,219200000000)(ΔQ/ΔP)
ΔQ/ΔP = 0.5(19,219200000000/$4,504.50)
= 2,133,333,333.3 = d.
To find the constant c, substitute for Q, P, and d into the supply curve formula
Q = c + dP so that
19,219200000000 = c + 2,133,333,333.3 × 4,504.50
19,219200000000 = c + 9,609,599,999,849.8
c = 9,609,600,000,150.2
The equation for supply is therefore Q=9,609,600,000,150.2 + 2,133,333,333.3P.
A materials requisition slip showed that direct materials requested were $58,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is
A) Work In Process Inventory 58,000
Raw Materials Inventory 58,000
B) Direct Materials 58,000
Indirect Materials 9,000
Work in Process Inventory 67,000
C) Manufacturing Overhead 67,000
Raw Materials Inventory 67,000
D) Work In Process Inventory 58,000
Manufacturing Overhead 9,000
Raw Materials Inventory 67,000
Answer:
A materials requisition slip showed that direct materials requested were $58,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is
D) Work In Process Inventory $58,000
Manufacturing Overhead $9,000
Raw Materials Inventory $67,000
Gannon Company had the following information at December 31:
Finished goods inventory, January 1 $ 30,000
Finished goods inventory, December 31 90,000
If the cost of goods manufactured during the year amounted to $1,260,000 and annual sales were $1,650,000, the amount of gross profit for the year is
C) $450,000
Sales $1,650,000
Cost of goods sold
===============
Cost of goods manufactured $1,260,000
Add: Beginning FG inventory $30,000
Goods available for sale $1,290,000
Less : Ending FG inventory $90,000 $1,200,000
Gross profit $450,000
Explanation:
St. Claire Manufacturing expects to produce and sell 6,000 units of Big, its only product, for $20 each. Direct material cost is $2 per unit, direct labor cost is $8 per unit, and variable manufacturing overhead is $3 per unit. Fixed manufacturing overhead is $24,000 in total. Variable selling and administrative expenses are $1 per unit, and fixed selling and administrative costs are $3,000 in total. According to generally accepted accounting principles, inventoriable cost per unit of Big would be: Group of answer choices $18.50 per unit $17.00 per unit $13.00 per unit $14.00 per unit
Answer:
According to generally accepted accounting principles, inventoriable cost per unit of Big would be $17.00
Explanation:
Absorption Costing method is suitable for external reporting purposes and thus preferred in reporting According to the generally accepted accounting principles (GAAP)
Absorption Costing Includes Both Fixed and Variable Manufacturing Overheads in Product Costings Calculations
Calculation of Inventory Cost per Unit According to Absorption Costing:
Direct material 2.00
Direct labor 8.00
Variable Manufacturing Overhead 3.00
Fixed Manufacturing Overhead ($24,000/6,000) 4.00
Inventory Cost per Unit 17.00
On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $420,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. 3. If the market interest rate is 5%, the bonds will issue at $452,737. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Solution:
Jan 01, 2018
Cash $452,737
bonds payable $452,737
June 30,2018
Interest expense 13,655
bonds payable 1055
cash 12600
Dec 31,2018
Interest expense 13,692
bonds 12600