The overhead rate used during the first quarter was $1.75 per dollar of direct labor cost accounting. The applied overhead was $17,500, the actual overhead was $140,000, and the under-applied overhead was $122,500. The cost of goods manufactured for the quarter was $169,500. The adjusted balance in Cost of Goods Sold is $211,500. For Job 32, the costs incurred are: direct materials $40,000, direct labor $10,000, and overhead $17,500.
1. To calculate the overhead rate, divide the total overhead by the total direct labor cost. In this case, the total overhead is $140,000 and the total direct labor cost is $80,000. So the overhead rate is $140,000 / $80,000 = $1.75 per dollar of direct labor cost.
2. The applied overhead can be calculated by multiplying the direct labor cost of Job 32 by the overhead rate. In this case, the direct labor cost of Job 32 is $10,000 (1,000 hours x $10 per hour) and the overhead rate is $1.75. So the applied overhead for the first quarter is $10,000 x $1.75 = $17,500. The actual overhead is $140,000, and the under-applied overhead is $140,000 - $17,500 = $122,500.
3. To calculate the cost of goods manufactured for the quarter, add the beginning work in process inventory, the direct materials used, the direct labor cost, and the applied overhead. In this case, the beginning work in process inventory is $32,000, the direct materials used is $40,000, the direct labor cost is $80,000, and the applied overhead is $17,500. So the cost of goods manufactured is $32,000 + $40,000 + $80,000 + $17,500 = $169,500.
4. The journal entry to close out the overhead control account is as follows:
Debit: Overhead Control ($1,500)Credit: Cost of Goods Sold ($1,500)The adjusted balance in Cost of Goods Sold is $211,500 ($210,000 + $1,500).
5. For Job 32, the costs incurred are:
Direct materials: $40,000Direct labor: $10,000Overhead: $17,500For more questions on Cost Accounting
https://brainly.com/question/34118432
#SPJ3
Two countries, Foodland and Drinkland, produce food and drinks. In Foodland, one resource unit produces 20 tons of food and one resource unit produces 10 tons of drinks. In Drinkland, one resource unit produces 12 tons of food and one resource unit produces 24 tons of drinks.
Which of the following statements is true of the above scenario?
Select one:
a. Drinkland cannot trade with Foodland because trade is too expensive.
b. Foodland has a comparative advantage in producing drinks.
c. Foodland should stop producing food and just produce drinks.
d. Drinkland has an absolute advantage in producing drinks.
Answer:
d. Drinkland has an absolute advantage in producing drinks.
Explanation:
The absolute advantage is determined as the difference in production volume for the same quantity of resources. In the given situation, Drinkland can produce 24 tons of drink with one resource unit, while Foodland can produce 10 tons of drink with one resource unit. Therefore, Drinkland has an absolute advantage over Foodland in producing drinks of 14 tons of drink per resource unit.
The answer is d. Drinkland has an absolute advantage in producing drinks.
Answer:
. Drinkland has an absolute advantage in producing drinks
Explanation:
A country has absolute advantage in the production of a good or service If it produces more quantity of the good when compared with other countries.
Drinkland produces 24 drinks when compared to the 10 produced by foodland. Thus, Drinkland has an absolute advantage in the production of drinks.
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.
The comparative advantage of foodland in producing drinks is 2 and it is 0.5 in producing food.
The comparative advantage of drinkland in producing drinks is 0.5 and 2 in producing food.
Drinkland has a comparative advantage in the production of drinks and foodland has a comparative advantage in the production of food.
A country should specialise in the production of the good in which it has comparative advantage in its production.
I hope my answer helps you
Beth has just signed a contract to work for a bank. A clause in the contract says that before she begins work, she must pass a drug test and should drug use be discovered, the contract becomes void. This clause would be a
The given clause would be a condition subsequent.
Explanation:
The condition subsequent means bringing up an end to an event or contract legally. The contract that Beth has signed says that whenever she starts the work she has to take and pass a drug test. If she fails in that, that is if any drug usage has been found then the contract becomes null.
This implies that Beth is under a conditional subsequent where if the usage of drugs are detected then she will not be to work in the bank anymore. The condition subsequent is frequently used as a legal contract.
What is the yield to maturity, to the nearest percent, for the following bond: current price is $928, coupon rate is 10 percent, $1,000 par value, interest paid annually, fifteen years to maturity
Answer:
Yield to maturity 10.87%
Explanation:
Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.
Face value = F = $1,000
Coupon payment = $1,000 x 10% = $100
Selling price = P = $928
Number of payment = n = 15 year
The coupon rate can be calculated using following formula
Yield to maturity = [ $100 + ( $1,000 - $928 ) / 15 ] / [ ( $1,000 + $928 ) / 2 ]
Yield to maturity = $104.8 / $964
Yield to maturity = 0.1087 = 10.87%
The county supervisor is considering building a community pool and has gathered data on how much residents are willing to pay. He sums up all of the valuations he has received and compares hat number to the estimated cost. This is an example of:
A. contingent valuation
B. revealed preference valuation
C. cost-benefit analysis
D. social discounting
Answer:
C. cost-benefit analysis
Explanation:
Cost - benefit analysis -
It is the method to analyse any decision in a very brief manner , is referred to as cost - benefit analysis .
The cost of the complete business or the project is calculated and analysed with the actual cost used for it .
The method is done with the help of certain models , data , records etc. in order to analyse even the minute details in a proper manner .
Hence , from the given scenario of the question ,
The correct answer is C. cost-benefit analysis .
Final answer:
The county supervisor's method of summing residents' valuations for a community pool and comparing it to the cost is known as cost-benefit analysis, a strategy to determine if the economic benefits outweigh the costs.
Explanation:
The county supervisor's approach of gathering data on how much residents are willing to pay for a community pool and summing up all of their valuations to compare to the estimated cost is an example of cost-benefit analysis. In this process, the supervisor is weighing the total monetary value residents place on having a community pool (the benefits) against the estimated costs to build and maintain it. This step is crucial in determining whether the overall benefits of the community pool outweigh the costs—effectively evaluating if the project would be beneficial from an economic standpoint. Cost-benefit analysis is often used to inform decision-making by comparing the present discounted value of future benefits against immediate and long-term costs, considering various assumptions such as discount rates and stakeholder valuations.
DPS Calculation Weston Corporation just paid a dividend of $1.00 a share (i.e., ). The dividend is expected to grow 12% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years?
Answer:
The correct answer for 1st year is $1.12, 2nd year is $1.25, 3rd year is $1.40, 4th year is $1.48 and 5th year is $1.55.
Explanation:
According to the scenario, the given data are as follows:
Dividend for beginning = $1.00
Growth rate for 3 year = 12%
For 4th and 5th year = 5%
So, we can calculate the dividend per share for each year by using following formula:
Dividend = Beginning dividend × (1 + Growth percentage)
So, by putting the value we get,
Dividend for 1st year = $1 × (1+12%)
= $1 × 1.12
= $1.12
Dividend for 2nd year = $1.12 × (1+12%)
= $1.12 × 1.12
= $1.25
Dividend for 3rd year = $1.25 × (1+12%)
= $1.25 × 1.12
= $1.40
Dividend for 4th year = $1.40 × (1+5%)
= $1.40 × 1.05
= $1.48
Dividend for 5th year = $1.48 × (1+5%)
= $1.48 × 1.05
= $1.55
You are thinking about renting a room in a house next year with three of your friends. For each month’s rent, you are willing to pay $580, your first friend is willing to pay $550, your second friend is willing to pay $560, and your third friend is willing to pay $610. The landlord agrees to offer each of you separate leases but will charge you all the same price: $550.You decide this is a good deal, so you and your friends move in. A couple of months later, you learn from someone who knows the landlord that he would have been willing to rent each room for $500 per month.a. What is the amount of producer surplus per month?b. What is the amount of the total consumer surplus per month?c. What is the total amount of surplus each month?
The producer surplus per month is $200, the total consumer surplus per month is $100, and the total surplus each month is $300.
Explanation:In the given scenario, we need to calculate the producer surplus, consumer surplus, and total surplus. The producer surplus per month is the difference between what the landlord receives ($550) and what he would have been willing to accept ($500). This gives a producer surplus of $50 per room, or $200 for all four rooms.
The consumer surplus is the difference between what each person is willing to pay and what they actually pay (all paying $550). So, for you, the consumer surplus is $30 (580-550), for friend one it is $0, for friend two it's $10 (560-550), and for friend three it's $60 (610-550). Adding all these consumer surpluses, the total consumer surplus is $100 per month.
Lastly, total surplus per month is the sum of producer surplus and consumer surplus, totaling to $300 per month.
Learn more about Surplus calculation here:https://brainly.com/question/30639277
#SPJ12
Fred is a strategic analyst for a specialty retail store chain that sells sports apparel. He's working with the marketing team and is reviewing the _____ section of the social media marketing plan which contains information about how other sports apparel stores are using social media and the success of their efforts.
Answer:
The correct word for the blank space is: competitor analysis.
Explanation:
Firms frequently make competitor analysis to find out what industry rivals are doing to step up in market competition. The information obtained can be beneficial for the company conducting the study to get more ideas on what the firm could do to improve business processes.
Besides, it provides firms an idea of what turns the market is taking so actions can be taken to keep at the same pace of consumers' changing trends.
The correct term to fill in the blank for the section of the social media marketing plan that Fred is reviewing is ""Competitive Analysis.""
In the context of a social media marketing plan, the ""Competitive Analysis"" section is crucial as it provides insights into how competitors in the sports apparel industry are utilizing social media platforms. This section typically includes an assessment of the strategies, content, engagement levels, and overall success of competitors' social media efforts. By analyzing this information, Fred and the marketing team can identify best practices, uncover gaps in their own strategy, and determine opportunities to differentiate their brand on social media.
The competitive analysis might cover aspects such as:
- Identification of key competitors on social media.
- Analysis of the content types and frequency of posts.
- Evaluation of audience engagement and growth rates.
- Review of the advertising strategies used by competitors.
- Assessment of the tone, messaging, and branding consistency.
- Benchmarking against competitors' performance metrics.
By thoroughly reviewing this section, Fred can help the marketing team to make informed decisions about their social media strategy, ensuring that it aligns with the company's goals and effectively targets their desired audience."
A perfectly elastic demand curve a. Is a horizontal line parallel to the x axis b. Has an elasticity of demand between 0 and 1 c. Is the demand curve of a product that usually has no substitutes d. None of the above
Answer:
a. Is a horizontal line parallel to the x axis
Explanation:
The perfectly elastic demand curve is a demand curve that is horizontal to the X-axis. Moreover, there is a fixed price but the quantity demanded is changing at the same price.
And we already know that The price and the quantity demanded are inversely proportional to each other. It shows a negative relationship that means if the price is increased, the quantity demanded is decreased and vice versa
What would happen if we use the WACC for all projects regardless of risk? Assume the WACC = 15% Project Required Return IRR A 20% 17% B 15% 18% C 10% 12%
Answer and Explanation:
. What would happen if we use the WACC for all projects regardless of risk?
Ans. If we use the WACC for all projects, we might end up favoring risky projects. We could also potentially reject +NPV less risky project. Thus will lead to poor decision making. We must adjust the WACC to accommodate for risk of a project.
. Assume the WACC = 15%
Project Required Return IRR
A 20% 17%
B 15% 18%
C 10% 12%
which project would be accepted if they used the WACC for the discount rate ? explain why .
Ans. Considering WACC of 15%, acceptable projects would be - Project A & B, since these have IRR>WACC.
. which project would be accepted if you use the required return based on the risk of the project ? explain why
Ans. Considering required rate of return given:
Project Required Return IRR
A 20% 17%
B 15% 18%
C 10% 12%
Reject A (since IRR < Required return)
Accept B & C (since IRR > Required return)
On January 1, Year 1, Maverick Company sold bonds that pay interest semiannually on June 30 and December 31. Maverick has a fiscal year-end of February 28. The amortization schedule for these bonds shows a cash payment of interest of $7,200 and an effective interest of $9,009 relating to the interest payment that will be made on June 30, Year 1.
What is the amount of interest expense that should be accrued by Maverick in an adjusting entry dated February 28, Year 1?
Answer:
$3,003
Explanation:
According to the question, Maverick has a fiscal year at the end of February, which means that an adjusting entry will include 2 months (January and February-Year 1) relating to the month of interest payment i.e. 6th month (June 30, Year 1)
Formula:
Interest expense = effective interest (for 1st semiannual period) × time period covered by adjusting entry
Interest expense = 9009 × 2/6
Interest expense = 3003$
A company manufactures 1,200 cylinders per day, each requiring a pressure gauge. The purchase price of the pressure gauge is $3.20. The company controller estimated annual holding costs at 25 percent per year, while the cost of placing an order was estimated at $55.00. Assuming that the plant operates 45 weeks per year, the EOQ for the pressure gauge is:
a.3,000 units
b.2,929 units.
c.2,872 units.
d.2,725 units.
e.1,200 units.
Answer:
Explanation:
Given weekly demand = 1200 units
Number of weeks per year = 45
Annual demand (D) = weekly demand × number of weeks per year = 1200 × 45 = 54,000 units
Ordering cost(C) = $55
Holding cost (H) = 25% of purchase price = 25% of $3.20 = 0.25*$3.20 = $0.8
EOQ = √(2DC/H) = √[(2 × 54,000 × 55) / 0.8] = √(5,940,000/0.8) = √7,425,000 = 2,725 units
Answer is D - 2,725 units
Answer:
Option D is correct.
Economic order quantity = 2725 units.
Explanation:
We will use the following variables:
Q = Quantity ordered/made
EOQ = the optimal order Quantity
D = annual Demand over the year
P = unit Production cost
S = cost of setting up a production run, regardless of the number of units in the production run (fixed cost per production run), also the ordering cost for goods that are usually ordered.
H = cost to Hold one unit for a year in the warehouse.
It is important to note which variables are based on per-order and per-unit basis.
Total Cost, TC = PC + SC + HC
PC = P x D : Production Cost = unit Production cost × the annual Demand
SC = (D x S)/Q : Setting up Cost = (annual Demand) × (cost per production setup)/(Order Quantity)
HC = (H x Q)/2: Holding Cost = (annual unit Holding cost × order Quantity)/2 (it ks divided by 2 because throughout the year, the warehouse is half full on average).
So TC = PC + SC + HC = (P x D) + ((D x S)/Q) + ((H x Q)/2) = PD + (DS/Q) + HQ/2
To obtain the optimal order quantity, EOQ, that minimizes TC, at the minimum TC, dTC/dQ = 0
dTC/dQ = (H/2) – (D x S)/(Q²) = 0
(H/2) – (D x S)/(Q²) = 0
Solving for Q, which is EOQ at this point.
(EOQ)² = 2DS/H
EOQ = √(2DS/H)
D = annual Demand for the item, over the year = 1200 × 45 = 54000 units
S = cost of setting up a production run, regardless of the number of units in the production run (fixed cost per production run) or for one order = $55
H = Holding cost = 25% of $3.2 = $0.8
EOQ = √(2×54000×55/0.8) = 2725 units
g Which of the following is produced when firms transform raw materials into a new product? A. Accessories B. Equipment C. Processed materials D. Maintenance products E. Specialized services
Answer: C
Processed materials
Explanation:
Processed materials are materials that have been refined or built from raw materials by humans. Processed products include, paper, steel and glass.
You will not receive the government funding for the project. Now, the Town has come to you and told you that they need a bathroom added on the first floor of the building to accommodate visitors with disabilities. This is a requirement of the law and they state that you should have known they would be asking for this change and that they do not think they should pay more for it based on that. Discuss the implications to your project and how you will respond to the demand.
Answer:
As per law providing basic amenities is compulsory and a government project needs to follow every rule set by law and hence this must have been included in the plan. So we need to modify the plan and provide the bathroom and also we cannot claim extra funds for this as the budget provided to us include all the basic amenities. As per the National Disability Authority , disabled individuals need to be given with specially designed toilets with specified dimensions and all these must be provided in public buildings such as libraries and schools and they are as a part of the funds provided by government. So the plan need to be modified and include the bathroom in the first floor making sure we follow the rules and also we need to adjust the budget provided and utilize it.
Answer:
Even though the government is not funding the project, they still request for an additional bathroom to accommodate visitor with disabilities and as a requirement of the Law, you will be obligated to adhere.
Businesses are charged with corporate social responsibilities of this sort by communities where it is domiciled.
However, the implications of this request on you projects is a s follow
Explanation:
1. Additional Cost: Absence of government funding is already a red alert and any other amount that is available will be on a lean budget. introducing an additional toilet will be a strain on the business.
Still it is better to adhere to the legislation in place so that your business will operate effectively.
2. GOODWILL: corporate social responsibility is goodwill for your business and well worth the additional cost it may accrue.
Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight line basis since 2009, when it was acquired at a cost of 9 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit company over a total of six years rather thanf the nine year life being used to amortize its costs. The decision was made at the end of 2013 (before adjusting and closing entries).
Answer: debit amortization expense account $2.5million
Question:
Required: Prepare the appropriate adjusting entry for patent amortization in 2013 to reflect the revised estimate.
Explanation: Amortization is the deduction made every period to reflect the cost of an intangible asset such as patent and intellectual property.
When amortization uses a straight line method, which is usually the case in patents, we deduct equal usefulness over its useful life and deduct equal amounts every period.
The patent has already been amortized at an amount of $1 million ($9 million divided by 9 years) annually for 4 years (2009, 2010, 2011, 2012).
This leaves us with $5 million to be amortized ($9 million - $4 million ). However the useful life has been adjusted to 6 years instead of 9, so $5 million has to be amortized in 2 years, making the amount to be deducted $2.5million per year.
On December 31, 2013, we will debit amortization expense account $2.5million and credit the patent account with $2.5million
Who would have standing to bring a civil suit under section 10(b)? a. purchaser of shares b. contractor with firm who loses business c. person who refrained from buying because of overly pessimistic information d. person who refrained from selling because of overly optimistic information e. all of the above
Answer:
The correct answer is letter "A": purchaser of shares.
Explanation:
Shareholders or investors who purchase shares of a company's stock can file lawsuits for violations of Section 10(b) of the Securities Exchange Act of 1934. These lawsuits are usually raised when the stock price falls and the shareholders allege it is caused because the company has disclosed improper information to the public.
The plaintiffs must prove that the company made a substantial misstatement or omission with the intention to deceive, manipulate or defraud the purchase or sale of a security.
Presented below are a number of independent situations.
For each individual situation, determine the amount that should be reported as cash.
1. Checking account balance $937,790; certificate of deposit $1,444,000; cash advance to subsidiary of $983,730; utility deposit paid to gas company $188.
Cash balance
$pixel.gif
2. Checking account balance $514,570; an overdraft in special checking account at same bank as normal checking account of $18,300; cash held in a bond sinking fund $246,580; petty cash fund $308; coins and currency on hand $1,370.
Cash balance
$pixel.gif
3. Checking account balance $617,620; postdated check from a customer $13,030; cash restricted due to maintaining compensating balance requirement of $117,680; certified check from customer $9,640; postage stamps on hand $625.
Cash balance
$pixel.gif
4. Checking account balance at bank $46,220; money market balance at mutual fund (has checking privileges) $52,790; NSF check received from customer $859.
Cash balance
$pixel.gif
5. Checking account balance $716,200; cash restricted for future plant expansion $517,960; short-term Treasury bills $190,700; cash advance received from customer $937 (not included in checking account balance); cash advance of $7,840 to company executive, payable on demand; refundable deposit of $29,700 paid to federal government to guarantee performance on construction contract.
Cash balance
$pixel.gif
Answer / Explanation:
(1) Cash balance of $937,790. Only the checking account balance should be reported as cash. The certificates of deposit of $1,444,000 should be reported as a temporary investment, the cash advance to subsidiary of $983,730 should be reported as a receivable, and the utility deposit of $188 should be identified as a receivable from the gas company.
(2) Cash balance is $584,650 computed as follows:
Checking account balance $514, 570
Overdraft (18,300)
Petty cash 308
Coin and currency 1,370
$534, 548
Cash held in a bond sinking fund is restricted. Assuming that the bonds are non current, the restricted cash is also reported as non current.
(3) Cash balance is $617, 620 computed as follows:
Checking account balance $617, 620
Certified check from customer 9, 640
$627, 260
The post dated check of $13,030 should be reported as a receivable. Cash restricted due to compensating balance should be described in a note indicating the type of arrangement and amount. Postage stamps on hand are reported as part of office supplies inventory or prepaid expenses.
(4) Checking account balance $46,220
Money market mutual fund 52, $790
$99, 010
The NSF check received from customer should be reported as a receivable.
(5) Cash balance is $700,900 computed as follows:
Checking account balance $716,200
Cash advance received from customer 937
$717, 137
Cash restricted for future plant expansion of $517,960 should be reported as a non current asset. Short-term treasury bills of $190,700 should be reported as a temporary investment. Cash advance received from customer of $937 should also be reported as a liability; cash advance of $7,840 to company executive should be reported as a receivable; refundable deposit of $29,700 paid to federal government should be reported as a receivable.
After a meeting with the operations manager of your organization, you close the door to your office so you can think of strategies to resolve an issue that has come up. The operations manager casually mentioned he had just finished a performance review of one of his employees and offered the employee a large raise because of all the hours the employee was putting in. The raise was equal to 11 percent of the employee’s salary. The operations manager, being new both to the company and to a union shop, wasn’t aware of the contract agreement surrounding pay increases. An employee must receive a minimum of a 2 percent pay increase per year and a maximum of 6 percent per year based on the contract. You worry that if the union gets wind of this, everyone at that employee’s pay level may file a grievance asking for the same pay raise. Of course, the challenge is that the manager already told this person he would be receiving the 11 percent raise. You know you need to act fast to remedy this situation.
As an HR professional, what should you have done initially to prevent this issue from happening?
Outline a specific strategy to implement stating how you will prevent this from happening in the future.
What would you do about the 11 percent pay raise that was already promised to the employee?
If the union files a grievance, what type of grievance do you think it would be? Provide reasoning for your answer.
If the union does file a grievance, draft a response to the grievance to share with your upper-level managers as a starting point for discussion on how to remedy the situation.
Answer:(1) The HR professional should have read the company policy and employment contract of each employees (2) Proper employees files should be maintained (3) order a reverse of the 11 percent pay increase untill the issue leading to the increase is looked into (4) The grievance will be on employee compensation and benefit (5) I will use the employee grievance process .
Explanation:
The human resources management is the process of supporting the accomplishment of organization objective by recruiting the needed human resources into the organization, integrating them into the organization as well as developing their potential for the overall benefit of the organization. The human resources management department is responsible for the personnel matters in the organization. In every organization, they usually have a company policy which is focused on how to resolve employees grievance in the organization. Therefore, as regard the case under review the HR professional should do the following to handle the issue at hand
(1) The HR manager should read the company policy on how a pay raise should be given to each employees, in addition to this the HR manager must also read the employment contract of each employees in order to know if the employees actually deserve a pay raise.
(2) with a view to prevent this in the future, the HR professional should ensure that employees files are properly maintained and before a pay raise can be granted to any employees in the future it should be in accordance with the contract agreement surrounding pay increases.
(3) The 11 percent pay raise that was already promised to the employees will be order to reversed back to the status quo untill the matter is looked into holistically to know if the employee actually deserve to have a pay raise in accordance with contract agreement surrounding pay increases.
(4) The grievance would be a formal notice to the management to register their dissatisfaction as regard the pay increase granted to only one employee that does not go across board.
(5) I will settle the grievances before involving other members of the grievance committee, I will then held a meeting with the representatives of the workers in private.then if the issue cannot be resolved at that level, I will investigate the matter further and the result will be made known to the workers and if the workers is not satisfied the matter will go to the management level where the fact of the matter will be looked into and a decision will be made to settle the grievance.
A company is analyzing its month-end results by comparing it to both static and flexible budgets. During the month, the actual variable costs per unit were lower than the expected variable costs per unit as per the static budget. This difference results in a(n) ________.
(A) favorable flexible budget variance for variable costs
(B) favorable sales volume variance for variable costs
(C) unfavorable flexible budget variance for variable costs
(D) unfavorable sales volume variance for variable costs
Answer:
(A) favorable flexible budget variance for variable costs
Explanation:
As in the given case, the question is talking about the variable cost per unit that lead to the flexible budget variance instead of the sales volume variance
Since in the given scenario, the actual variable costs per unit were lower than the expected variable costs per unit that reflects the favorable and if the actual variable costs per unit were higher than the expected variable costs per unit so it would reflect the unfavorable variance
The marginal productivity theory states that if a firm operates in a perfectly competitive factor market, it pays each factor of production its marginal revenue product. However, this theory may fail to hold if factor markets are not competitive.
One circumstance under which factor markets may fail to be competitive is if there is imperfect information.
Which of the following are ways in which firms seek to overcome information problems? Select all that apply.
a) Only hiring workers who have earned good grades in college.
b) Always hiring from the outside to avoid being accused of discrimination.
c) Promoting workers from within the company who have shown themselves to be productive, rather than hiring from outside.
Answer:
The answer is A.
Explanation:
A perfectly competitive factor market can be defined as a perfectly competitive market where all the products produced by different manufacturers are the same, the product cost and the price of the product are known to all parties etc.
Imperfect information in economics refers to a situation where the information among different parties such as manufacturer, consumer etc is not equal and balanced.
The correct answer among the given options is A, hiring workers that have earned good grades in college to make up for the information imbalance and overcome the imperfect information problem.
I hope this answer helps.
To overcome imperfect information in factor markets, firms may rely on academic achievements as indicators of productivity or promote from within to assess worker capabilities based on observed performance.
Explanation:The marginal productivity theory suggests that firms operating in a perfectly competitive factor market pay each factor of production its marginal revenue product. However, when these markets are not perfectly competitive, firms may face imperfect information, resulting in various strategies to overcome this issue.
Firms seek to overcome information problems through different methods, such as:
Only hiring workers who have earned good grades in college as a signal of their potential productivity.Promoting workers from within the company who have proven their productivity, rather than hiring from outside, which can also help to reduce the imperfect information about worker capabilities.These strategies help firms to approximate the marginal productivity of potential and current employees, thereby assisting in making informed hiring and promotion decisions.
On July 1, Shady Creek Resort borrowed $350,000 cash by signing a 10-year, 8.5% installment note requiring equal payments each June 30 of $53,343. What amount of interest expense will be included in the first annual payment?
Final answer:
The first annual installment payment for Shady Creek Resort includes an interest expense of $29,750, which is 8.5% of the $350,000 principal.
Explanation:
To determine the amount of interest expense included in the first annual payment of the installment note for Shady Creek Resort, we need to apply the interest rate to the principal balance. With an 8.5% annual interest rate on the principal of $350,000, the first year's interest expense is calculated as $350,000 × 0.085 = $29,750. Since the annual payment is $53,343, and the first year's interest is $29,750, the remaining $23,593 of the payment goes towards reducing the principal.
Zander Company has fixed costs of $ 14 comma 000. The company's contribution margin ratio is 56%. What is the breakeven point in sales dollars? (Round your answer to the nearest dollar.) A. $ 25 comma 000 B. $ 2 comma 240 C. $ 87 comma 500 D. $ 7 comma 840 g
Answer:
Option A $25000
Explanation:
The breakeven point in sales dollars can be calculated by using the following formula:
Breakeven Sales In Dollars = Fixed Cost / Contribution Margin ratio
The fixed cost here is $14000 and the contribution margin ratio is 0.56.
So by putting the values, we have:
Breakeven Sales In Dollars = $14000 / 0.56 = $25000
So the sales required to breakeven at a contribution margin of 0.56 is $25000. Remember that Fixed cost though remains the same but contribution margin ratio changes when the variable cost or selling price changes. So if the changes in variable cost or selling prices are witnessed to achieve the maximum profit possible, then the managers must recalculate the breakeven point because it has been altered due to these changes.
Answer:
A. $25 comma 000
Explanation:
1. Breakeven Point on sales dollars can be calculated using this equation:
[tex]BEP=\frac{Fixed Costs}{Fixed Costs- Contribution Margin}= \frac{Fixed Costs}{Contribution Margin Ratio}[/tex]
In this case, we know that:
[tex]Fixed Costs=$14,000\\Contribution Margin Ratio= 56\%[/tex]
2. Replacing Values:
[tex]BEP=\frac{\$14,000}{56\%} =\$25,000[/tex]
The company needs to have sales of $25,000 to breakeven at a 56% contribution margin ratio. It means that the company must determine the appropiate strategy to reach the sale level required.
McCann Co. has identified an investment project with the following cash flows.
Year Cash Flow
1 $860
2 1,210
3 1,470
4 1,625
a. If the discount rate is 11 percent, what is the present value of these cash flows?
b. What is the present value at 16 percent?
c. What is the present value at 30 percent?
Answer:
The present value at 11% is $3,902.13,$3,479.85 at 16% and $2,615.57 at 30%
Explanation:
The present value formula is given as :
PV=FV/(1+r)^n
Where FV is the future value of cash flows such as the ones given in the question
r is the rate of return at 11%,16% and 30%
n is the applicable time horizon relevant to each of the cash flow.
Find attached spreadsheet for detailed calculations.
Answer:
Present values @ 11%
Years Present Value
1 $775
2 $982
3 $1075
4 $1070
Present values @ 16%
Years Present Value
1 $741
2 $899
3 $942
4 $897
c.
Present values @ 30%
Years Present Value
1 $662
2 $716
3 $669
4 $569
Explanation:
Cash flows that will be received in future do not have same value as today, because if received today there is an opportunity to reinvest it and get some return. For this reason we calculate the present value of future cash flow.
Discounting method is used to calculate the present values. using following formula of discounting we calculate the PV.
PV = FV / ( 1 + r )^n
a.
Present values @ 11%
Years Cash Flows Discounting Present Value
1 $860 860 x ( 1 + 11%)^-1 $775
2 $1,210 1,210 x ( 1 + 11%)^-2 $982
3 $1,470 1,470 x ( 1 + 11%)^-3 $1075
4 $1,625 1,625 x ( 1 + 11%)^-4 $1070
b.
Present values @ 16%
Years Cash Flows Discounting Present Value
1 $860 860 x ( 1 + 16%)^-1 $741
2 $1,210 1,210 x ( 1 + 16%)^-2 $899
3 $1,470 1,470 x ( 1 + 16%)^-3 $942
4 $1,625 1,625 x ( 1 + 16%)^-4 $897
c.
Present values @ 30%
Years Cash Flows Discounting Present Value
1 $860 860 x ( 1 + 30%)^-1 $662
2 $1,210 1,210 x ( 1 + 30%)^-2 $716
3 $1,470 1,470 x ( 1 + 30%)^-3 $669
4 $1,625 1,625 x ( 1 + 30%)^-4 $569
As the discount rate increase the Present value of the cash flows decreases because of discounting factor.
Informal institutions are composed of sets of:
A. voluntary agreements.
B. mandatory agreements, a bit like the mind's software.
C. agreements that are for the most part written and taken for granted.
D. orthodox accords whose goal is to establish rigor.
Answer:
The correct answer is letter "A": voluntary agreements.
Explanation:
Informal institutions are groups of people that gather voluntarily because of common social rules under non-regulated scenarios. Clans are examples of informal institutions. Informal institutions are not considered as a culture and tend to have a self-enforcing regulatory operations approach.
According to its Form 10-K, Macrosoft recorded bad debt expense of $100 and there were no bad debt recoveries during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.) Required: 1. What amount of bad debts was written off during the current year?
Answer: This question is incomplete. There should be information on the opening balance and closing balance of allowance for bad debt. See below guidance to solve the question.
Explanation: Typically, account receivable is shown as net of allowance for bad debt. In the question above, there would be an opening balance (for preceding year) and closing balance (for current year) of the allowance for bad debt.
If the information above are present, the movement schedule will be: opening balance + bad debt expense - bad debt written off = closing balance.
To get the bad debt written off, you need to change the subject of the formula and rewrite the equation as: opening balance + bad debt expense - closing balance = bad debt written off. Substituting with those figures would give you the bad debts written off amount required.
A supply chain management (SCM) system is an IT system that supports supply chain management activities by: a. helping decision makers compile useful information to identify and solve problems and make decisions. b. automating the tracking of inventory and information among business processes and across companies. c. collecting, storing, modifying, and retrieving the transactions of an organization. d. providing easy access to both internal and external information relevant to meeting the strategic goals of the organization
Answer:
The correct answer is letter "B": automating the tracking of inventory and information among business processes and across companies .
Explanation:
Supply Chain Management (SCM) comprises all the steps companies take from gathering raw materials until the delivery of a final good to consumers. In the process, several resources are used such as Information Technology (IT) systems which allow measuring numerically materials, components, labor hand and hours, and the necessary resources for the manufacturing company given a period.
Besides, IT systems are useful to keep track of the flow of the units being produced when they hit the warehouse shelves and when they leave the company for sale. This information is useful for the plant and its suppliers.
A SCM is a supply chain system that manages the flow of the goods and the services. They manage the flow and movement along with the storages of raw materials.
Work in progress and the inventory of the finished goods from origin to point of consumption. Thus being an IT-driven system supports the supply chain and manages the activities by automating the tracking of inventory and information of processes across companies.Hence the option B is correct.
Learn more about the is an IT system that supports SCM activities.
brainly.com/question/7159680.
On the same day, a customer buys 100 shares of ABC at $40 and sells short 100 shares of XYZ at $50. The customer then buys 1 ABC Jan 40 put @ $4 and 1 XYZ Jan 50 @ $5. XYZ rises to $60 and the customer exercises the call. ABC falls to $25 and the customer exercises the put. The net gain or loss on all transactions is:
a. $500 loss
b. $900 gain
c. $900 loss
d. breakeven
Answer:
C) $900 loss
Explanation:
The customer shorts stock because he thinks the market for ABC will go down. However, he also wants to protect himself from unlimited loss potential if the market should rise, so he buys a call which gives the right to buy stock at the strike price. Here, the market goes up suddenly, and the customer exercise the call. The stock that was sold originally for $40 is purchased for $50 for a 1 point loss on the stock. Since $9 was paid in premiums, the total loss is 9 points or $900 for the 100 shares. Therefore, the net loss on all the transaction is $900. The customer lost $500 premium for call lost and $400 premium for the put lost.
An investor considers investing $20,000 in the stock market. He believes that the probability is 0.20 that the economy will improve, 0.46 that it will stay the same, and 0.34 that it will deteriorate. Further, if the economy improves, he expects his investment to grow to $26,000, but it can also go down to $17,000 if the economy deteriorates. If the economy stays the same, his investment will stay at $20,000. What is the expected value of his investment?
Answer:
$20,180
Explanation:
The expected value (EV) refers to the future value of an investment that is being anticipated.
In probability distribution, EV of an investment is calculated by adding all the multiplications of each of the possible outcomes and the probability of occurrence of each of the outcome.
Therefore, the expected value of the investment of the investor can be calculated as follows:
EV of Investment = (0.20 × $26,000) + (0.46 × $20,000) + (0.34 × $17,000)
= $5,200 + $9,200 + $5,780
= $20,180.
Therefore, the expected value of his investment $20,180.
The expected value of the $20,000 investment, given the probabilities of economic improvement, stagnation, or deterioration, is calculated to be $20,800.
Explanation:The expected value of an investment is calculated by multiplying each possible outcome by its respective probability and summing the results. In this scenario, the investor expects his investment to grow to $26,000 with a probability of 0.20 if the economy improves, and it can decrease to $17,000 with a probability of 0.34 if the economy deteriorates.
If the economy stays the same, his investment remains at $20,000 with a probability of 0.46.
Using these probabilities and outcomes, the expected value is calculated as
(0.20 * $26,000) + (0.46 * $20,000) + (0.34 * $17,000) = $20,800.
Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will administer it. As you’ve committed to fund a $15,000 scholarship every year beginning one year from tomorrow, you’ll want to set aside the money for the scholarship immediately. At tomorrow’s meeting with your grandfather and the bank’s representative, you will need to deposit (rounded to the nearest whole dollar) so that you can fund the scholarship forever, assuming that the account will earn 4.50% per annum every year.
Answer: The correct answer is $333,333.33
Explanation: Perpetuity is a cashflow that is payable or receivable forever.
In calculating the present value of a Perpetuity, the cash flow will be divided by the rate.
That is $15,000/ 4.5%
=$15,000/ 0.045
=$333,333.33
The money to be set aside now to be able to pay $15,000 every year is $333,333.33
Why are public works projects like the Honolulu Rail project nearly impossible to stop once they have been approved, even if later cost estimates skyrocket?
There are several reasons why this type of projects are nearly impossible to stop once they have been approved, even when costs skyrocket.
First, it is difficult to stop these projects because, when these start, a lot of moeny is put into them. When the cost begins to skyrocket, people believe that to stop the project would mean wasting all the money already invested. This prevents people from stopping the projects.
Another reason is the fact that many different companies, investors and institutions are involved in these projects. Coordination is difficult, and pmany parties have a vested interest in the completion of such works. This makes it difficult for the different parties to agree on the right moment to stop.
Public works projects become difficult to stop due to intertwined political interests, potential benefits for local contractors, and their political popularity. While these projects may become excessively costly, they often continue due to the political goodwill they generate.
Explanation:Public works projects like the Honolulu Rail project become nearly impossible to stop once they have been approved, even if later cost estimates skyrocket, due to a number of factors. Firstly, these projects become a part of political dynamics as lawmakers often make investments in such projects as a way of spending money in key politicians' districts. Once a project is underway, even if the costs increase, it's often difficult to halt due to the political pressure and vested interests that have been invested in the project.
Furthermore, local contractors who may make campaign contributions to influential politicians also stand to gain from these projects. This often results in scenarios where these projects can become excessively costly.
Another factor is the political popularity that the initiation of such projects can bring. This means that the decision to spend on infrastructure does not just have to make economic sense, it also has to align with current political agendas and public opinion to be carried forward.
Learn more about Public works projects here:https://brainly.com/question/28233198
#SPJ11
Exercise 4-5 In its first year of operations, Cullumber Company recognized $31,800 in service revenue, $6,600 of which was on account and still outstanding at year-end. The remaining $25,200 was received in cash from customers. The company incurred operating expenses of $17,100. Of these expenses, $12,830 were paid in cash;丰4,270 was still owed on account at year-end. In addition, Culumber prepaid $2,720 for insurance coverage that would not be used until the second year of operations.(a) Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting. Cash Basis Accrual Basis Net Income (b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
Answer with its Explanation:
PART A
Using The Cash Basis:
Net Income = Cash received - Cash paid
Net Income = $25,200 - $12,830 - $2720 = $9650
Using The Cash Basis:
Net Income = Revenue earned during the year - Expense incurred during the year
Net Income = $31,800 - $17,100 = $14,700
The insurance paid is not for the year as it relates to the coming year and must not be included in deducting the expenses.
PART B
Both of the methods provid useful informations provide useful insight of the case.
The cash basis tells about what actually the company possesses, from where the resources had flow inwards and where the company has spent its resources in cash amounts. The cash basis accounting doesn't tells the substance of the transaction because it all tells which expenses are actually been paid and what revenue has been received. The cash basis says that the revenue is the one that we have received and the expenses are the one that are paid in cash.
Accrual basis says that the company must recognize the earning and expenses when they are earned and when they are incurred respectively. The accrual basis tells the substance of the transaction. It tells what sales are related to the year and how much they have incurred in the year.