Answer:
Direct labor efficiency variance= $140,000 unfavorable
Explanation:
Giving the following information:
Standard requirements:
Direct labor:
4 hours per unit
$ 14 per hour
Benson produced 5,000 units during the quarter.
Actual cost:
Actual direct labor hours= 30,000
direct labor costs= $240,000
First, we need to calculate the standard total direct labor hours required to produce 5,000 units.
Total direct labor hours= 5,000*4= 20,000 hours
Now, we can calculate the direct labor efficiency variance:
Direct labor efficiency variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor efficiency variance= (20,000 - 30,000)*14= $140,000 unfavorable
It is unfavorable because the company used more direct labor hours than estimated.
A bridge design firm is performing an economic analysis of two mutually exclusive designs for a highway overpass. The steel girder option has an initial cost of $2.04 million, and the concrete option has an initial cost of $2.52 million. Every 25 years, the steel bridge must be painted at a cost of $790,000, and all other maintenance costs are the same for both options. The steel bridge is expected to last 50 years, and concrete bridge is expected to last 75 years. Both are assumed to be identically replaced indefinitely. Based on the shortest acceptable analysis period for each option, determine the equivalent uniform annual cost (EUAC) for the best option using an interest rate of 7%. Express your answer in $ to the nearest $1,000.
Answer:
Please find attached solution
Explanation:
Art Kumar lives on the outskirts of Draper and has a 1-acre lot next to his home. He plans to grow vegetables on the lot and sell them at the downtown market during the summer. He doesn’t have enough time to grow the vegetables himself, so he has hired a local college student to plant and tend the garden and sell the crops at the market. Art is considering five vegetables to plant that seem to be popular at the market—asparagus, corn, tomatoes, green beans, and red peppers. Art estimates the following yields per acre for each vegetable—2,000 pounds of asparagus, 7,200 pounds of corn, 25,000 pounds of tomatoes, 3,900 pounds of green beans, and 12,500 pounds of red peppers. The costs per acre are $1,800 for asparagus, $1,740 for corn, $6,000 for tomatoes, $3,000 for green beans, and $2,700 for red peppers. Asparagus sells for $1.90 per pound, corn sells for $0.10 per pound, tomatoes sell for $3.25 per pound, green beans sell for $3.40 per pound, and red peppers sell for $3.45 per pound. He has budgeted $5,000 for the garden. Talking to some of the other market vendors, he estimates that he will not sell more than 1,200 pounds of asparagus, 10,000 pounds of tomatoes, 2,000 pounds of green beans, and 5,000 pounds of red peppers. Art wants to know the portion of his lot that he should plant with each vegetable to maximize his revenue.
Answer:
10,000 pounds of Tomatoes; 780 pounds of Green Beans; and 5,000 pounds of Red Pepper.
Explanation:
The following information was provided in the question and computed.
Yield per acre (pound): 2,000 (asparagus), 7,200 (corn), 25,000 (tomatoes), 3,900 (green beans), 12,500 (red pepper).
Cost per acre: $1,800 (asparagus), $1,740 (corn), $6,000 (tomatoes), $3,000 (green beans), $2,700 (red pepper).
Selling price per pound: $1.90 (asparagus), $0.10 (corn), $3.25 (tomatoes), $3.40 (green beans), $3.45 (red pepper).
Sales volume limit (pound): 1,200 (asparagus), nil (corn), 10,000 (tomatoes), 2,000 (green beans), 5,000 (red pepper).
Given the above, we compute the cost per pound for each vegetable as follows: [tex]\frac{Cost Per Acre}{Yield Per Acre}[/tex]
Cost per pound: $0.9 (asparagus), $0.24 (corn), $0.24 (tomatoes), $0.77 (green beans), $0.22 (red pepper).
Using selling price per pound and Cost per pound, we compute the contribution per pound for each vegetable as follows: [tex]Selling Price Per Pound - Cost Per Pound[/tex]
Contribution per Pound: $1.00 (asparagus), -$0.14 (corn), $3.01 (tomatoes), $2.63 (green beans), $3.23 (red pepper).
To maximize revenue and profit, Art must focus on the vegetables with the highest contribution per Pound, in the following order.
4th (asparagus), 5th (corn), 2nd (tomatoes), 3rd (green beans), 1st (red pepper).
He will therefore plant according to the limit (volume) he can sell in the market.
1st plant: Red pepper = 5,000 pounds market limit (using [tex]\frac{Sales Limit}{Yield per Acre} = \frac{5,000}{12,000}[/tex] = 40% of the land available).
2nd plant: Tomatoes = 10,000 pounds market limit (using [tex]\frac{10,000}{25,000}[/tex] = 40% of the land available).
3rd plant: Green beans = using 20% of the land left = 20% * 3,900 yield per acre = 780 pounds.
Vaughn Manufacturing has estimated that total depreciation expense for the year ending December 31, 2021 will amount to $591000, and that 2021 year-end bonuses to employees will total $1240000. In Vaughn's interim income statement for the six months ended June 30, 2021, what is the total amount of expense relating to these two items that should be reported?
Answer:
$915,000
Explanation:
Because half of the depreciation expense, and the expense on bonuses has already been reported by June 30,2021 (the half of the year), only hafl of the total money spent on the two items will have to be reported for the interim income statement ended on December 31, 2021:
$591,000 / 2 = $295,500
$1,240,000 / 2 = $620,000
Now, we simply add up these two figures:
$295,500 + $620,000 = $915,000
For many years you have been using your local, small-town bank. One day you hear that the bank is about to be purchased by Bank of America. From your vantage point as a retail bank customer, what are the costs and benefits of such a merger?
Answer:
If I was banking with my local town bank and it happens that Bank of Africa purchases it, there are cost and benefits associated with the merge. First, Bank of America is global, meaning that I will be able to access the Services such as ATM services at different points. Second, due to its area of coverage, the services are cheaper compared to the ones I got when it was in my local town. However, due to the monopoly of the bank, they might increase the charges making them more expensive than when the services in the local village. Additionally, it will be a challenge for average customers, such as farmers, to access big banks unless faithful people accompany them.
Explanation:
There are costs and advantages to the merger when my local town and the Bank of Africa acquire it. Bank of America is a multinational business, so one may get its capabilities, such as ATM services, from a variety of locations.
Who is the customer?"A customer can be defined as a person who buys a product or takes the services. For the product or the service, they pay the amount. A customer is one who demands the product which is supplied by the supplier."
Second, comparable to the service received when it covered his hometown, they are less expensive to its covering region. But, because of the bank's monopolies, they may raise the prices, resulting in a higher cost than using the products in the next hamlet.
It will also be difficult for regular clients, like farmers, to enter big banks unless dependable people go with them.
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Eastman Kodak reported that the cost of its PPE on December 31, 2010 was $6,805 million. On January 1, 2010, it had been $7,327 million. Also, the balance of accumulated depreciation on December 31, 2010 was $5,254 million. On January 1, 2010, it had been $5,516 million. Depreciation expense for the fiscal year 2010 was $420 million. During 2010, the company bought new equipment with acquisition cost of $254 million worth. The company also sold PPE and reported a $14 million gain on selling PPE.
Questions:
How much did Kodak sell its PPE for (sale price)?
Answer:
Kodak sold its PPE for $108 million
Explanation:
The question here has missing sales figure for a PPE item for which the gain on sale is $14 million (given) .Sale price of PPE item are obtained from a PPE Disposal account.We need to first find the other missing figures of 1. Cost of the Sold PPE and 2. The Accumulated Depreciation of the Sold PPE item. After that we complete our PPE disposal account to find the missing figure of the Sale Price of PPE.
1. Cost of Sold PPE
Open a PPE at Cost Account: Opening Balance $ 7327 million (Debit), Addition of PPE $ 254 million (Debit),Closing Balance $6805 million(Credit).The Balancing figure of this account $ 776 million (credit) {7327+254-6805} is the cost of the PPE item sold.
2. Accumulated Depreciation of the Sold PPE Item
Open a PPE Accumulated Depreciation Account : Opening Balance $ 5516 million (Credit), Depreciation Expense $ 420 million (Credit), Closing Balance $ 5254 million (Debit). The Balancing figure of this account $682 million (Debit) is the Accumulated Depreciation of the PPE item disposed or sold.
3. Disposal Account and Calculation of the Sale Price (Balancing figure)
Open a PPE Disposal Account : Cost of PPE $ 776 million (Debit), Gain on Sale of PPE $ 14 million (Debit), Accumulated Depreciation of the PPE Sold $ 682 million (Credit). The Balancing figure of this account $ 108 million (Credit) {776+14-108} is the Sale Price of PPE item.
Thus Sale price of the PPE is $ 108 million.
The question is about calculating the sale price of Eastman Kodak's PPE during 2010 by using changes in PPE cost and accumulated depreciation, new equipment acquisition cost, and gain on sale. The sale price of Eastman Kodak's PPE was $20 million.
Explanation:The question asks to calculate how much Eastman Kodak sold its property, plant, and equipment (PPE) for during the fiscal year 2010. To find the sale price of the PPE, we need to consider the cost and accumulated depreciation of PPE at the beginning and end of the year, along with the depreciation expense, the acquisition cost of new equipment, and the gain on the sale of PPE.
First, calculate the change in accumulated depreciation and PPE cost:
Change in accumulated depreciation: $5,516 million (beginning) - $5,254 million (ending) = $262 million (depreciation reversed due to sale)Change in PPE cost: $7,327 million (beginning) - $6,805 million (ending) - $254 million (new acquisitions) = $268 million (cost of PPE sold)Now, we can find the book value of sold PPE by subtracting the depreciation reversed from the cost of sold PPE:
Book value of sold PPE: $268 million - $262 million = $6 millionFinally, add the gain on sale to find the sale price:
Sale price of PPE: $6 million (book value) + $14 million (gain) = $20 millionThe goal of the biological (ergonomic) approach to job design is: a. to make the work simple so that anyone can be trained quickly and easily to perform it. b. to minimize physical strain on the worker by structuring the physical work environment around the way the human body works. c. to focus on increasing the meaningfulness of jobs. d. to design jobs in a way that ensures they do not exceed people's mental capabilities and limitations.
Answer:
To minimise physical strain on the worker by structuring the physical work environment around the way the human body works.
Explanation:
Ergonomics is very essential because when carrying out a job and your body is made uncomfortable by an bad posture, extreme temperature, or repeated movement your musculoskeletal system tends to be affected.
Ergonomics improves productivity in a workplace. Designing a workspace that promotes good posture, less repetitive motions, easier heights and reaches is very necessary. More efficiency means more productivity which is important for the growth of the company.
A college professor decides to run for Congress in a district with 450,000 registered voters. In a survey she commissioned, 58% of the 4000 registered voters interviewed indicated that they plan to vote for her. The population of interest is the:
Answer:
450,000 registered voters in the district
Explanation:
Population of interest is defined as the population that is under study and abouth which information is collected. Population of interest can be people, objects, measurements, and so on.
It is from the population of interest that the researcher draws samples that are studied. Insights from studying the sample will be used to draw conclusions about the population.
In this instance 4,000 voters interviewed is the sample. They were drawn from the population of interest made up of 450,000 registered voters in the district.
The population of interest is the registered voters in a congressional district. To estimate proportions like voter support or political awareness, sample size calculations are conducted to achieve a desired confidence level and margin of error. Confidence intervals can then be used to estimate the true proportion of a characteristic within the population.
Explanation:The population of interest in the question is the body of registered voters in a particular congressional district. This population would be the group of individuals from which data is being gathered or about whom conclusions are to be made based on the survey results. In the context given, the survey is used to estimate the support that a college professor running for Congress might receive from the 450,000 registered voters in her district.
When estimating the true proportion of a population based on survey results, it is essential to determine the sample size needed to achieve results within a certain margin of error and with a specified level of confidence. For example, to achieve a 95% confidence level and a 5% margin of error in determining the political awareness of college students, a specific sample size must be calculated using statistics formulas.
Interpreting Survey Results and Confidence Intervals
In another scenario, a student may find that 300 out of 500 surveyed students are registered voters, and from this, a confidence interval can be computed to estimate the true proportion of registered voters among the student population. This confidence interval provides a range in which the true percentage of registered voters is likely to fall, considering the sample data and the chosen confidence level, such as 90%.
Consider a process consisting of three resources. Assume there exists unlimited demand for the product, and that all activities are always performed in the following sequence.
Resource 1 has a processing time of 6 minutes per unit.
Resource 2 has a processing time of 3 minutes per unit.
Resource 3 has a processing time of 5 minutes per unit.
All three resources are staffed by one worker and each worker gets paid $11 per hour.
(a) what is the cost of direct labor?
(b) what is the labor content?
(c) How much idle time does the worker at resource 3 have per unit?
(d) What is the average labor utilization?
(e) Assume the demand rate is 20 units per hour. What is the takt time?
(f) Assume the demand rate is 20 units per hour. What is the target manpower?
The cost of direct labor is $3.6 per part. The labor content is 14 minutes. The idle time is 4 min. The average labor utilization is 77.78%.
(a)
The total hourly pay divided by the flow rate represents the cost of direct labor.
The overall flow rate is governed by the bottleneck resource 1 and the flow rate is (1/6) parts per minute \
Total wages per unit of time = $12*3/60 = $12/20 per minute
So, cost of direct labor = (12/20) / (1/6) = $3.6 per part
(b)
Labor Content = The time sum of all process steps = 6+3+5 = 14 minutes
(c)
Idle time of resource 3 = 6 min - 5 min = 1 min
(d)
Idle time of resource 2 = 6 - 3 = 3 min
Total idle time = 3+1 = 4 min
Utilization = (1 - 4/(3*6)) = 77.78%
(e)
Takt time = 60/20 = 3 min
(f)
Target manpower = (6+3+5) / 3 = 4.67 or 5 (assuming each station is staffed by one worker)
The average labor utilization is calculated by dividing the total labor content by the entire idle time.
The total hourly salaries divided by the flow rate per hour is known as the cost of direct labor. It reveals how much money is spent to move one flow unit through a process (such as to treat one patient or provide service to one client), in dollars (or euros).
Even while labor costs appear to make up a small portion of the total costs, at least initially, it is crucial to consider them. However, labor expenses are incorporated into every single supply and material business purchase.
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Final answer:
The cost of direct labor is $33 per hour (3 workers at $11 each), the labor content is 14 minutes per unit, Resource 3 has 1 minute of idle time per unit, average labor utilization is 100%, takt time is 3 minutes per unit, and the target manpower is 3 workers to meet the demand rate of 20 units per hour.
Explanation:
To determine the cost of direct labor, we need to calculate the total working time each resource operates per hour and multiply it by the workers' pay rate.
Resource 1: 6 minutes/unit × 60 minutes/hour = 10 units/hourResource 2: 3 minutes/unit × 20 units/hour (given demand rate) = 60 minutes/hourResource 3: 5 minutes/unit × 20 units/hour (given demand rate) = 100 minutes/houra. The total cost of direct labor is calculated by summing the costs of all resources. However, since the workers are paid per hour, regardless of production speed, the cost is simply $11/hour × 3 workers.
b. The labor content is the sum of the processing times per unit for all three resources: 6 + 3 + 5 = 14 minutes per unit.
c. Resource 3's idle time per unit is the difference between the cycle time of the slowest resource and its own processing time. Since Resource 1 is the slowest, with a cycle time of 6 minutes, Resource 3 has 1 minute of idle time per unit (6 - 5).
d. The average labor utilization is calculated as (total processing time / (total processing time + idle time)) × 100%. With continuous demand and equal payment rate, all workers are utilized at full capacity, so average labor utilization is 100%.
e. The takt time is the pace at which products must be completed to meet customer demand. It is calculated as (60 minutes per hour / 20 units per hour) = 3 minutes per unit.
f. The target manpower is the number of workers needed to meet the demand rate. Since the slowest resource dictates the overall pace and Resource 1 is the slowest, processing 10 units per hour, we need 2 workers at Resource 1 (20 units/hour demand / 10 units/hour capacity) and 1 worker each for Resources 2 and 3. Therefore, the target manpower is a total of 3 workers to meet the demand rate.
The Bureau of Labor Statistics counts underemployed persons as those who are currently working: a. in a field that doesn’t add a lot to overall GDP. b. in a job for which they are overqualified for. c. less than they would like to be. d. less hours than their employer requires full-time workers to work.
Answer:
The correct answer is letter "B": in a job for which they are overqualified for.
Explanation:
Underemployment is the state in which individuals are employed but in positions that do not match their skills and knowledge, typically, in jobs where they do not use their academic background and expertise due to the simplicity of the job. Underemployment happens when people look for a job suitable with their capabilities but hey cannot find, Then, they secure any job position available to generate an income.
How can related diversification create a competitive advantage for the firm? Keeping the advantages of related diversification in mind, think back to the example of Delta’s vertical integration decision to acquire an oil refinery—clearly an unrelated diversification move. What challenges might Delta confront in operating this refinery? Think of the strategic concepts you have learned and how they can help you evaluate Delta’s decision.
Answer:
See attached pictures.
Explanation:
See attached pictures for explanation.
Related diversification can provide competitive advantage by leveraging core competencies and creating synergies across related businesses. In contrast, unrelated diversification, like Delta's acquisition of an oil refinery, brings significant operational challenges, but can provide benefits like cost savings if properly managed.
Explanation:Related diversification can confer a competitive advantage for a firm by allowing it to leverage its existing core competencies into a new, related business. It facilitates sharing of skills and resources across businesses, leading to synergies and increased profitability. A classic example of this is the case of Rockefeller, who leveraged his influence in the oil refining industry to drive competitors from the market through intense price wars, and thereby achieving vertical integration.
In contrast, Delta's decision to acquire an oil refinery represents a case of unrelated, or conglomerate, diversification. While this strategy can offer benefits in terms of risk reduction and stability, it also raises significant operational challenges. One, Delta would need to acquire or develop expertise in a completely different industry. Two, the synergistic benefits gained from related diversification, such as sharing of resources and capabilities, would be absent. Lastly, it may face difficulty in maintaining focus and managing such diverse business operations.
However, Delta's decision could be justified if it provides significant cost savings or differential advantage in their primary business of aviation. Therefore, the strategic implications of this kind of decision are multi-faceted and require careful evaluation.
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A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Activity Expected Costs Cost Driver Extrusion costs $ 83,600 Number batches made Handling costs $ 8,800 Number of orders filled Packaging costs $ 40,500 Number of units made Product A Product B Production volume 750,000 units 600,000 units Batches made 200 batches 750 batches Orders filled 75 200 Calculate activity rates for each of the three activities using activity-based costing (ABC).
Answer:
Extrusion= $88 per batch
Handling= $32 per order
Packaging= $0.03 per unit
Explanation:
Giving the following information:
Activity Expected Costs Cost Driver:
Extrusion costs $ 83,600 Number batches made
Handling costs $ 8,800 Number of orders filled
Packaging costs $ 40,500 Number of units made
Product A Product B:
Production volume: 750,000 units - 600,000 units
Batches made: 200 batches - 750 batches
Orders filled: 75 - 200
To calculate the activity rate, we need to use the following formula:
Estimated activity rate= total estimated activity costs for the period/ total amount of allocation base
Extrusion= 83,600/ (200 + 750)= $88 per batch
Handling= 8,800/(75 + 200)= $32 per order
Packaging= 40,500/ (1,350,000)= $0.03 per unit
Activity rates for extrusion, handling, and packaging are calculated by dividing expected costs by the respective cost driver totals, resulting in rates of $88 per batch, $32 per order, and $0.03 per unit.
Explanation:To calculate the activity rates for each of the three activities using activity-based costing (ABC), we divide the expected costs by the total number of each cost driver (Number batches made, Number of orders filled, and Number of units made).
Extrusion costs: The activity rate is calculated by dividing $83,600 by the total number of batches made (200 batches + 750 batches = 950 batches). This gives us an activity rate of $88 per batch.Handling costs: The activity rate is found by dividing $8,800 by the total number of orders filled (75 orders + 200 orders = 275 orders), resulting in a rate of $32 per order.Packaging costs: The activity rate is determined by dividing $40,500 by the total number of units made (750,000 units + 600,000 units = 1,350,000 units), giving us a rate of $0.03 per unit.Bally Manufacturing sent Intel Corporation an invoice for machinery with a $13,500 list price. Bally dated the invoice July 29 with 3/10 EOM terms. Intel receives a 20% trade discount. Intel pays the invoice on August 11. What does Intel pay Bally
Answer:
$10,584
Explanation:
Given
Cost of Machinery = $13,500
Trade Discount = 20%
Cash Discount = 2%
First, we Calculate the Net Price
Net Price = $13,500(100% - 20%)
Net Price = $13,500(80%)
Net Price = $13,500 * 0.8
Net Price = $10,800
Applying Cash discount;
Payment = $10,800(100% - 2%)
Payment = $10,800(98%)
Payment = $10,800 * 0.98
Payment = $10,584
Hence, Intel pays Bally $10,584
Procter & Gamble recently kept its retail price on its jumbo pack of Pampers and Luvs diapers, but reduced the number of diapers per pack from 140 to 132. The repositioning strategy P&G is using here is called
a. market modification.
b. product extension.
c. rebranding.
d. trading up.
e. downsizing
Answer:
e. downsizing
Explanation:
Downsizingbor shrinkfalation is the practice where the amount of a product in a package is reduced. The package looks similar to the old one and customers buy on assumption that they are buying the same amount as before. Although the product amount is written in the label most people do not take the time to check.
For businesses this is a great way to increase revenue from sales. Prices are kept constant while amount is reduced.
This is quite effective as most customers will react negatively to price change.
Answer: E. Downsizing
Explanation: Downsizing is defined as the process of reducing in size or number. An adjustment made to an existing product, is usually made for greater appeal or functionality or to reduce cost of production. Such adjustments may include changes to a product's shape, adding a feature or improving its performance, reducing its quantity.
However, most consumers often jump to the conclusion that the company is purely profit-driven but often than not, downsizing—reduction in the amount of the product offered to the consumer—at the same price are due to increased costs of raw materials, production and distribution, which the company must factor in to break even. And so, at times like this the firm is faced with either increasing prices of products or cutting down the quantity in their packaging such as P&G had done. As consumers are more sensitive to price changes than to decreases in product quantity, firms will often decrease product sizes as against raising product prices.
Burnett Corp. pays a constant $8.45 dividend on its stock. The company will maintain this dividend for the next 15 years and will then cease paying dividends forever. If the required return on this stock is 13 percent, what is the current share price?
Answer:
56.47% is the current share price
Explanation:
To solve this question, we use the mathematical approach.
First, we calculate the current share price =
$8.45*Present value of annuity factor(11.2%,13)
But before we can get the value for the current share price, we need the value for the present value of annuity factor.
Present value of annuity factor = Annuity[1-(1+interest rate)^-time period]/rate =
8.45[1-(1.112)^-13]/0.112=
= $8.45*6.682519757 = 56.47%
Which of the following accurately describe depreciable cost? i. The amount of cost a company intends to depreciate over the life of the asset? ii. The acquisition cost of the asset. iii. The fair market value of the asset iv. The acquisition cost of the asset less the salvage value.
Answer:
(i) and (iv)
Explanation:
The appreciable cost is the cost in which the assets can be depreciation over the useful life
And, the appreciable cost is come after deducting the salvage value from the acquisition cost
The formula to compute the depreciation expense using the straight-line method is shown below:
= (Original cost - salvage value) ÷ (useful life)
So it can be calculated after considering the first and four options
1. What kinds of resources can likely be shared across different brands between an apparel maker and a footwear maker? What kinds of resources are unlikely to be shared?
Explanation:
Apperel maker and footwear maker are industries that use as common resources such as packaging, distribution, marketing and selling operations.
On the other hand, the resources that are unlikely to be shared, we can mention different types of machinery for confection, raw material and specialized professionals.
Answer:
An apparel maker and footwear maker can use packaging, distribution, marketing and selling operations together. They can use common resources for these operations. But, apparel makers and footwear makers cannot use common manufacturing operations.
Clothing and footwear industry, also called apparel and allied industries, garment industries, or soft-goods industries, factories, and mills producing outerwear, underwear, headwear, footwear, belts, purses, luggage, gloves, scarfs, ties, and household soft goods such as drapes, linens, and slipcovers. The same raw materials and equipment are used to fashion these different end products.
Explanation:
Carla Company’s ledger shows the following balances on December 31, 2020. 7% Preferred Stock—$10 par value, outstanding 21,700 shares $ 217,000 Common Stock—$100 par value, outstanding 32,700 shares 3,270,000 Retained Earnings 630,000Assuming that the directors decide to declare total dividends in the amount of $366,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock.(a) The preferred stock is cumulative and fully participating.
Answer:
preferred dividends = $30380
Common stock = $ 335620
Explanation:
Dividends 366000
preferred 7% * 217000= $15190 *2 years = $30 380
common stock = $335620
The total dividend declared is 366000 and preferred is 15190 per year but it is cumulative so we add the year that was in arrears so to get total dividend for preferred stock then we deduct the preferred from total dividend declared to get common stock's dividend.
Suppose Country A and Country B each have a GDP equal to $440 billion and $560 billion respectively. Country A has 100 million people and Country B has 175 million people. In this situation, per capita GDP is:
a. Higher in Country A.
b. Higher in Country B.
c. The same in both countries.
d. Country B has a higher inflation rate.
Answer:
A. Higher in Country A
Explanation:
So to get per capita income
Formula
GDP/Population
Therefore
For Country A
440/100=4.4
Per capita income for country A is 4.4
For Country B
560/175=3.2
Per capita income for country B is 3.2
So the per capita income for country A is higher than Country B
Krentz Insulating accepted a 3-year note for $1,500 in lieu of immediate payment for insulating equipment sold to a local firm. Find the present value of the note at 4% per year compounded semiannually.
Answer:
$1,331.96
Explanation:
Present value (PV) refers to today's worth of cash flows to be received at a future date. The formula for PV is given as follows:
PV = F ÷ (1 + r)^n ......................................... (1)
PV = present value = ?
F = Future amount or note amount = $1,500
r = interest rate = 4% annually = 0.04 annually
= (0.04 ÷ 2) semiannually = 0.02 semiannually
n = number of compounding period = 3 years
= (3 × 2) semiannually = 6 semiannually
Substituting the figures above into equation (1). we have:
PV = $1,500 ÷ (1 + 0.02)^6
= $1,500 ÷ (1.02)^6
= $1,500 ÷ 1.126162419264
= $1,331.96
Therefore, the present value of the note at 4% per year compounded semiannually is $1,331.96.
A company completes 21,000 units this month and has ending goods in process inventory of 3,000 units which are estimated to be 40% complete. Direct materials cost per EUP is $5.00 and Conversion cost per EUP is $1.50.
The cost transferred to the Finished Goods Inventory is $______.
Answer:
Total cost of transferred to finished goods inventory = $ 136,500
Explanation:
To value cost of transferred finished goods, we multiply the cost per equivalent unit of production (cost per EUP) by the the number of equivalent units (EUP) for each of the cost element.
So the value of the finished inventory, is determined as follows:
Value of inventory = cost per E.U.P × number of E.U.P
Direct Material = $5.00 × 21,000 =$ 105,000
Conversion cost = $1.50 × 21,000= $31,500
Total cost of transferred to finished goods inventory =
$ 105,000 + $31,500
= $ 136,500
Summarized operations for Splish Brothers Inc. for the month of July are as follows. Revenues recognized: for cash $30,000; on account $71,480. Expenses incurred: for cash $26,120; on account $41,220. Indicate for Splish Brothers Inc. (a) the total revenues, (b) the total expenses, (c) net income for the month of July.
Answer:
a. Total Revenues are $ 101,480
b. Total expenses are $ 67,340
Net income for July is $ 34,140
Explanation:
Total Revenues is Cash revenue + Revenues on credit
$ 30,000 ( cash)+ $ 71,480 ( on credit) = $ 101,480
Total expenses is Cash expenses + Expenses on account
$ 26,120 (cash)+ $ 41,220 (on account) = $ 67,340
Net income = Total revenues - Total expenses
Net Income = $ 101,480 - $ 67,340 = $ 34,140
Final answer:
Splish Brothers Inc. recorded a total revenue of $101,480 and total expenses of $67,340 in July, resulting in a net income of $34,140 for the month.
Explanation:
To calculate the total revenues, total expenses, and net income for Splish Brothers Inc. for the month of July, we need to add together both the cash and account figures for each category.
Total Revenues
Total revenues are calculated by adding the revenues recognized for cash and on account. In this case it is:
$30,000 (cash) + $71,480 (account) = $101,480
Total Expenses
Similarly, total expenses are the sum of expenses incurred for cash and on account:
$26,120 (cash) + $41,220 (account) = $67,340
Net Income
Net income for July is determined by subtracting the total expenses from the total revenues:
$101,480 (total revenues) - $67,340 (total expenses) = $34,140
A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $16 per hour per employee. Each employee identifies an average of 3,800 potential leads a week from a list of 4,600. An average of 10 percent of potential leads actually sign up for the service, paying a one-time fee of $70. Material costs are $1,400 per week, and overhead costs are $9,000 per week. Calculate the multifactor productivity for this operation in fees generated per dollar of input. (Round your answer to 2 decimal places.) Multifactor productivity
Answer:
The correct answer is 6.48.
Explanation:
According to the scenario, the given data are as follows:
Total number of employees = 3
Pay rate = $16 per hour per employee
One time fees = $70
Average identifies customer = 3,800
Conversion rate = 10%
So, we can calculate the multifactor productivity by using following formula:
Multifactor productivity = Total earning ÷ Total expense
Where, Total earning = 3,800 × 3 × $70 × 0.10 = $79,800
and Total Expense = 3 × 40 × 16 + $1,400 + $9,000 = $12,320
By putting the value we get,
Multifactor productivity = $79,800 ÷ $12,320
= 6.48
Hence, the multifactor productivity for this operation is 6.48.
Final answer:
The multifactor productivity for the company is $6.48 in fees generated per dollar of input, calculated by dividing the total weekly fees generated from customers ($79,800) by the total weekly input costs ($12,320).
Explanation:
To calculate the multifactor productivity (MFP) for this operation in fees generated per dollar of input, we first need to determine the weekly output in fees generated from the leads. With three employees working 40 hours a week at $16 per hour, the total labor cost is $1,920 ($16 per hour * 40 hours * 3 employees). Including material costs of $1,400 and overhead costs of $9,000, the total weekly input costs are $12,320 ($1,920 + $1,400 + $9,000).
Each employee identifies 3,800 potential leads from a list of 4,600 per week, for a total of 11,400 leads (3,800 per employee * 3 employees). With a 10 percent conversion rate, the number of actual customers is 1,140 (11,400 * 10%). At a one-time fee of $70, the total revenue from these customers is $79,800 (1,140 customers * $70). The MFP is calculated by dividing the total output by the total input costs. Therefore, the MFP is $6.48 per dollar of input ($79,800 divided by $12,320).
Suppose that Best National Bank currently has $200,000 in demand deposits and $130,000 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%. Fill in (dollars):
Best National
Reserves (Dollars) (Dollars)?
Required Reserves (Dollars)?
Excess Reserves (Dollars)?
Answer:
Reserve = $70,000
Required reserves = $20,000
Excess reserves = $50,000
Explanation:
Given that
Demand deposits = $200,000
Outstanding loans = $130,000
Reserve requirement = 10%
Reserve = Demand deposits - Outstanding loans
= $200,000 - $130,000
=$70,000
Required reserves = Reserve requirement × Demand deposits
= 10% × $200,000
= $20,000
Excess reserves = Reserve - Required reserves
= $70,000 - $20,000
=$50,000
Final answer:
Best National Bank, with a 10% reserve requirement, has required reserves of $20,000, actual reserves of $70,000, and excess reserves of $50,000. This is based on $200,000 in demand deposits and $130,000 in outstanding loans.
Explanation:
The subject of this question is Business, specifically the topic of banking and the Federal Reserve's reserve requirements. This is a college-level question due to the involvement of financial regulations and monetary policy concepts.
Let's calculate the required reserves for Best National Bank:
Total demand deposits = $200,000Reserve requirement = 10%Required reserves = 10% of total demand depositsRequired reserves = 0.10 × $200,000Required reserves = $20,000Now, let's determine the bank's actual reserves and excess reserves:
Best National's current loans = $130,000Reserves = Total demand deposits - Outstanding loansReserves = $200,000 - $130,000Reserves = $70,000Excess reserves = Actual reserves - Required reservesExcess reserves = $70,000 - $20,000Excess reserves = $50,000Therefore, Best National Bank has:
Reserves (Dollars) = $70,000Required Reserves (Dollars) = $20,000Excess Reserves (Dollars) = $50,000How would you categorize the following transactions in the balance of payments for the United States. For each scenario, besure to discuss which section it enters as a credit and debit (for any entry in the current account, be sure to discuss if it is an import or export as well as whether it is a good or service)a.A French chef is hired to cater a US diplomats event in Franceb.An American purchases 1 Million dollars’ worthof shares in a Nigerian companyc.The United States forgives a 5 Billion dollar debt owed by a foreign countryd.An Italian movie pays for the rights to sing the English version of the "Happy Birthday" song to its American copyright holderse.16 million dollars’ worthof escargot is purchased by an American restaurant from Francef.An American business man in Los Angeles purchases crabs from a dealer in Seattle
Answer:
a. The transaction enters Current account as a Debit entry and is an import and a service.
b. The Transaction enters on the financial account as a debit.
c. The Transaction enters on the financial account as a credit.
d. The transaction enters on the current account as a credit and is more of an export and is also a service.
e.The transaction enters as a current account on a debit and is an import of a good.
f..The transaction enters as a current account on a debit and is an import of a good.
Explanation:
Transaction number c, the state forgives a debt meaning it needs to cancel it, the time it was granted it went on on a debit entry now they act like they received it so it should cancel that debit by credit.
transaction d, the song is a service because it is intangible, more or less inseparable from person doing it hence copyright and paying.
The categorization of transactions into credit and debit entries based on whether they are exports or imports of goods and services. Here the example of current accounts are French chef, United States forgives a foreign debt, American restaurant and Nigerian company: is financial account and American businessman is domestic transaction.
When categorizing transactions in the balance of payments for the United States, each scenario reveals different entries in credits and debits:
A French chef is hired to cater a US diplomat's event in France: This is an import of services and is recorded as a debit in the current account.
An American purchases shares in a Nigerian company: This transaction would be recorded as a debit in the financial account as it's an outbound investment.
The United States forgives a foreign debt: Debt forgiveness is categorized under unilateral transfers in the current account, treated as a negative entry (like an import).
An Italian movie pays for rights to an American song: This is an export of services, recorded as a credit in the current account.
Escargot is purchased by an American restaurant from France: Import of goods, recorded as a debit in the current account.
An American businessman in Los Angeles purchases crabs from Seattle: This is a domestic transaction and does not appear on the balance of payments as there's no international component.
Here are the data for the past 21 months for actual sales of a particular product: LAST YEAR THIS YEAR January 370 295 February 415 350 March 405 355 April 435 440 May 430 450 June 495 385 July 415 365 August 330 290 September 385 350 October 515 November 600 December 495 Develop a forecast for the fourth quarter using a three-quarter, weighted moving average. Weight the most recent quarter 0.50, the second most recent 0.25, and the third 0.25. Solve the problem using quarters, as opposed to forecasting separate months. (Round your answer to 2 decimal places.)
Answer:
Here in this question, I have used tables to show you more clearly. So please refer to the attachment 1.
Explanation:
Please refer to the attachment 1.
Weighted Moving Average = ∑Quantity*Weights/ ∑weights
Forecast for Oct: (350*0.5 + 290*0.25 + 365*0.25)/ 0.5 + 0.25 + 0.25 = 338.75 0r 339
Forecast for Nov: (339*0.5 + 350*0.25 + 290*0.25)/ 0.5 + 0.25 + 0.25 = 329.5 0r 330
Forecast for Dec: (330*0.5 + 339*0.25 + 350*0.25)/ 0.5 + 0.25 + 0.25 = 337.25 0r 337
Final answer:
To forecast the fourth quarter sales, calculate the total sales for the last three quarters, apply the given weights to each, and sum them. The forecast for the fourth quarter is 1146.25.
Explanation:
To develop a forecast for the fourth quarter using a three-quarter weighted moving average, we need to first calculate the sales figures for the last three quarters available this year:
Q2 (April + May + June): 440 + 450 + 385 = 1275Q3 (July + August + September): 365 + 290 + 350 = 1005Next, we apply the given weights (most recent quarter 0.50, second most recent 0.25, and third most recent 0.25) to these totals and sum them to get the weighted moving average.
Weighted Total = (Q3 sales imes 0.5) + (Q2 sales imes 0.25) + (Q1 sales of prior year imes 0.25)
In this case:
Weighted Total = (1005 imes 0.5) + (1275 imes 0.25) + (1300 imes 0.25) = 502.5 + 318.75 + 325 = 1146.25
Therefore, the forecast for the fourth quarter is:
1146.25
The Central Limit Theorem: states that the average range can be used as a proxy for the standard deviation. states that the average of assignable variations is zero. controls the steepness of an operating characteristic curve. is the theoretical foundation of the c-chart. allows managers to use the normal distribution as the basis for building some control charts.
The correct answer is - allows managers to use the normal distribution as the basis for building some control charts.
Explanation:
It is the theorem that allows inference from a random sample. It says that:
• The sample mean will likely be towards the population mean within a margin of error
• The margin of error is a multiple of the standard error, which is the standard deviation divided by the square root of the sample size. The multiple is determined by the degree of statistical confidence you’re looking for, and the normal deviate corresponding to that — 1.65 for 90% confidence, 1.96 for 95% confidence, etc.
1. How does the complete equity method, used to facilitate consolidation in subsequent years, differ from the equity method used for external reporting? A. The complete equity method adjusts for upstream and downstream unconfirmed profits, while the equity method used for external reporting does not make these adjustments. B. The complete equity method deducts unconfirmed profits on downstream sales to the extent of ownership interests, while the equity method used for external reporting deducts all unconfirmed profits on downstream sales. C. The complete equity method deducts unconfirmed profits on upstream sales to the extent of ownership interests, while the equity method used for external reporting deducts all unconfirmed profits on upstream sales.
Answer:
None of the option is correct.
Explanation:
The major difference between the two methods is that under the complete equity method, an adjustment is made to the reported profit for impairment losses on the intangible assets that were not previously reported. However, under the he equity method used for external reporting, adjustment for impairment losses on the intangible assets that were not previously reported is not made.
Note that impairment loss occurs when the fair value of an intangible asset falls below its carrying amount. The amount by which the fair value is lower than the carrying amount is adjusted or written off.
Examples of intangible assets are goodwill, copyrights, brand recognition, patents, trademarks, and among others.
Information related to Harwick Co. is presented below.1. On April 5, purchased merchandise from Botham Company for $32,400, terms 3/10, net/30, FOB shipping point.2. On April 6, paid freight costs of $860 on merchandise purchased from Botham.3. On April 7, purchased equipment on account for $40,000.4. On April 8, returned damaged merchandise to Botham Company and was granted a $6,800 credit for returned merchandise.5. On April 15, paid the amount due to Botham Company in full.A) Prepare the journal entries to record these transactions on the books of Harwick Co. under a perpetual inventory system.B) Assume that Harwick Co. paid the balance due to Botham Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Answer:
A) Prepare the journal entries to record these transactions on the books of Harwick Co. under a perpetual inventory system.
April 5, purchased merchandise terms 3/10, net/30, FOB shipping point
Dr Merchandise inventory 32,400
Cr Accounts payable 32,4000
April 6, paid freight costs (in perpetual inventory, freight ans insurance costs increase COGS so they are included in merchandise inventory)
Dr Merchandise inventory 860
Cr Cash 860
April 7, purchased equipment on account
Dr Equipment 40,000
Cr Accounts payable 40,000
April 8, returned damaged merchandise
Dr Accounts payable 6,800
Cr Merchandise inventory 6,800
April 15, paid Botham's invoice within discount term
Dr Accounts payable 25,600
Cr Cash 24,832
Cr Purchase discounts 768
B) Assume that Harwick Co. paid the balance due to Botham Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
May 4, paid Botham's invoice
Dr Accounts payable 25,600
Cr Cash 25,600
To record the transactions on the books of Harwick Co., the journal entries needed are provided. They include the purchase of merchandise, payment of freight costs, purchase of equipment, return of damaged merchandise, and payment to Botham Company. The entries should be made on the given dates with appropriate amounts.
Explanation:To record the transactions on the books of Harwick Co., the following journal entries should be made
April 5: Merchandise Inventory $32,400 and Accounts Payable $32,400April 6: Freight Out $860 and Cash $860April 7: Equipment $40,000 and Accounts Payable $40,000April 8: Accounts Payable $6,800 and Merchandise Inventory $6,800April 15/May 4: Accounts Payable $25,608, Purchase Discount $792, and Cash $32,400https://brainly.com/question/32366159
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The comparative balance sheets for Lowery Company show these changes in noncash current asset accounts: accounts receivable decrease $80,000, prepaid expenses increase $28,000, and inventories increase $40,000.
Compute net cash provided by operating activities using the indirect method, assuming that net income is $186,000. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
$198,000
Explanation:
The computation of the net cash provided by operating activities by using the indirect method is presented below:
Cash flow from operating activities
Net income $186,000
Add: Decrease in account receivable $80,000
Less: Increase in prepaid expense -$28,000
Less: Increase in inventories -$40,000
Net cash provided by operating activities $198,000
A vintner is deciding when to release a vintage of sauvignon blanc. If it is bottled and released now, the wine will be worth $ 2.6 million. If it is barrel aged for a further year, it will be worth 25% more, though there will be additional costs of $ 975 comma 000 incurred at the end of the year. If the interest rate is 7%, what is the present value of the difference in the benefit the vintner will realize if he releases the wine after barrel aging it for one year or if he releases the wine now?
Answer:
a. PV of one year future net benefit is $2,126,168.22
b. The PV of now is $2,600,000
c. The difference between the two PVs is $473,831.78.
d. It is better to release the vintage of sauvignon blanc now.
Explanation:
a. What is the present value of the difference in the benefit the vintner will realize if he releases the wine after barrel aging it for one year?
Benefit in one year = $2,600,000 + ($2,600,000 × 25%) = $3,250,000
Cost in one year = $975,000
Net Benefit in one year = Benefit in one year - Cost in one year
Net Benefit in one year = $3,250,000 - $975,000 = $2,275,000
Present value (PV) = $2,275,000 ÷ (1.07^1) = $2,126,168.22
b. What is the present value if he releases the wine now
The present value is $2,600,000
c. Difference between the two PVs
Difference = PV of b - PV of a = $2,600,000 - $2,126,168.22 = $473,831.78.
d. Decision
Since the PV of releasing the vintage of sauvignon blanc is $473,831.78 higher than the PV of releasing it in a year, it is better to release it now.