Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:
Actual Budget
Calamine Capity Calamine Capity
Sales in pounds 3800 lbs. 3980 lbs. 4,400 lbs. 3,300 lbs
Price per pound $3.00 $2.90 $2.00 $3.00
Variable cost per pound 1.00 2.20 1.00 1.50
Contribution margin $2.00 $0.70 $1.00 $1.50
Budgeted and actual fixed corporate-sustaining costs are $1,850 and $2,300, respectively.

What is the actual contribution margin for the month?
a. $12,236
b. $9770
c. $9900
d. $10,386

Answers

Answer 1

Answer:

Option D 10,386

Explanation:

The contribution is the amount left from sales after paying the variable cost. In this case we are given with this value so we don't have to calcualte for it.

To get for the contribution margin we will consider the actual values over the budget.

3,800 Calmine pounds x 2 dollar of contribution per pound = 7,600

3,980 Capity pounds x 0.70 dollars per pound = 2,786

Total: 7,600 + 2,786 = 10,386

Answer 2

The actual contribution margin for the month is $10,386

                                                                         Actual

                                                                Calamine     Capity

Sales in pounds                                       3800 lbs    3980 lbs.

Contribution margin per round               $2.00         $0.70

Product contribution margin                 $7,600       $2,786.

The total contribution earned = $7,600 + $2,786

The total contribution earned = $10,386

In conclusion, the Option D is correct because the actual contribution margin for the month is $10,386.

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Related Questions

If an economist is considering swiftly increasing technological changes in an economy, which of the following is MOST likely to contribute to the CPl problem of accurately measuring of the cost of living changes? a. new goods blas b. substtution blas c. Income blas

Answers

Answer:

The correct answer is option  a. new goods bias.

Explanation:

The new goods bias arises from not taking into account new products within a price index. As these products are new, and are not used on a regular basis, they are not included in the CPI (which is the consumer price index, where the prices of products that are consumed regularly by a family are valued).

Due to technology, prices may decrease, therefore this would generate a problem when accurately measuring changes in the cost of living.

In the _____ stage of the relationship development process, the owner of several retirement centers has agreed that Fashion Seal Uniforms will be the only supplier of uniforms for her employees. Andy, the salesperson for Fashion Seal, has agreed to make some modifications in the uniforms to suit the needs of the retirement center personnel. Both parties view this as a long-term relationship built on mutual trust.

Answers

Answer:

The correct word for the blank space is: commitment.

Explanation:

In the relationship development process, the commitment stage implies a compromise between the seller and the supplier engaging each other more in their operations. The relationship develops to help each other with their objectives and usually causes special treats -such as discounts- between the two characters.

A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production is called ____________. efficiency-driven economy factor-driven economy innovation-driven economy fast moving opportunity

Answers

Answer:

Factor-driven economy.

Explanation:

The factor-oriented economy can be defined as the first sector of economic development, which is based on the use of natural resources and unskilled labor. In this type of economy, the competitive advantage is based on the production of basic products, which are the source of production of this factor-oriented economy.

Generally, this first stage of economic development supports low wages compared to other economic stages.

Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $23,000 bill from her accountant for consulting services related to her small business. Reese can pay the $23,000 bill anytime before January 30 of next year without penalty. Assume Reese's marginal tax rate is 32 percent this year and 35 percent next year, and that she can earn an after-tax rate of return of 11 percent on her investments.

a) What is the after-tax cost if Isabel pays the $34,000 bill in December?

b) What is the after-tax cost if Isabel pays the $34,000 bill in January?

Answers

Answer:

a)13,600

b)  13,391.8

Explanation:

a. 20,000 * 32% = 6400

20,000 - 6400 = 13,600

b. 20,000* 37% = 7400

Present Value of Tax = $7400 x 0.893 (Discount Factor, 1 Year, 12 percent) = $6608.2

After-tax income =income before tax - Present Value Tax

20,000 - 6608.2 = 13,391.8

Butter Company purchased $300 of supplies for cash.
Illustrate how to record the transaction into T-accounts by completing the following sentence.
The Supplies account would be (debited/credited) on the (left/right) side of the T-account and the Cash account would be (debited/credited) on the (left/right) side of the T-account.

Answers

Answer:

The Supplies account would be debited on the left side of the T-account and the Cash account would be credited on the right side of the T-account.

Explanation:

Supplies

DEBIT     CREDIT

(LEFT)     (RIGHT)

300

We debit supplies as it represnet an asset , something the company owns. Thus it will increase from the debit

Cash

DEBIT     CREDIT

(LEFT)     (RIGHT)

                 300

We credit cash is it is assets which is being decreased. We use the cash to acquire the supplies. We no longer have those 300 dollars we use to purchase the supplies.

Final answer:

The Supplies account is debited on the left side of the T-account when $300 of supplies are purchased. The Cash account which shows a decrease in assets, is credited on the right side.

Explanation:

When the Butter Company purchases $300 of supplies for cash, the Supplies account would be debited on the left side of the T-account, and the Cash account would be credited on the right side of the T-account. This is because in accounting, a debit to the Supplies account indicates an increase in assets, while a credit to the Cash account signifies a decrease in assets. The rule of debit and credit states that for every debit, there must be a corresponding credit.

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An economy produces only 1,000,000 computers valued at $2,000 each. Of these, 200,000 are sold to consumers, 300,000 are sold to businesses, 300,000 are sold to the government, and 100,000 are sold abroad. No computers are imported. The unsold computers at the end of the year are held in inventory by the computer manufacturers. What is the value of the investment component of GDP?a. $0.9 billionb. $1.0 billionc. $1.8 billiond. $2.0 billion

Answers

Answer:

$2.0 billion

Explanation:

The Gross Domestic Product is the monetary value of all goods and services that is produced within the boundary of a country in a specific time.

The formula for GDP is

GDP= consumption + government spending + investment + (export - import)

200,000 are sold to consumers

300,000 are sold to businesses

300,000 are sold to the government

100,000 are sold abroad (exported)

100,000 is kept as inventory

GDP= {200,000 + 300,000+ 300,000+ 100,000+ (100,000- 0)}* $2,000

GDP= 1,000,000*2000

GDP= $2 billion

The primary objective of financial reporting is to provide information:

a. About a firm's management team.
b. That is useful in decision making.
c. About a firm's financing and investing activities.
d. About a firm's product lines.

Answers

Answer:

The correct answer is letter "B": That is useful in decision making.

Explanation:

Financial reporting is the activity every business organization engages to analyze the current situation of the company's operations to take decisions. The Financial Statements are the core instruments firms review to find out how is the firm performing and what points could be improved to maximize the revenue.

During its first year of operations, Connor Company paid $46,750 for direct materials and $19,500 in wages for production workers. Lease payments and utilities on the production facilities amounted to $8,500. General, selling, and administrative expenses were $9,500. The company produced 6,500 units and sold 5,500 units for $16.50 a unit. The average cost to produce one unit is which of the following amounts?a. $11.69
b. $10.10
c. $8.15
d. $12.56

Answers

Answer:

The average cost to produce one unit is $11.5

Explanation:

Total costs to produce 6,500 units of the company are calculated by following formula:

Total costs = Direct materials cost + Labor cost + Lease payments and utilities on the production facilities = $46,750 + $19,500 + $8,500 = $74,750

The company produced 6,500 units.  The average cost to produce one unit = Total costs/6,500 = $74,750/6.500 = $11.5

Note: General, selling, and administrative expenses are not the cost to produce the product.

Olympia Marketing has instituted new policies around misappropriation of assets, conflicts of interests, and kickbacks. Also with the local elections just around the corner, management sent out reminders about political contributions and confidentiality of company information. All of these policies can be found in Olympia Marketing’s

Answers

Answer: Code of Ethics

Explanation: Code of Ethics is a term used to describe a set of guildlines,rules or princess put in place by Organisations to ensure that it's members are guided accordingly.

It is adopted mainly by professional Organisations such Medical Doctors, Pharmacists, Engineer etc

Generally code of Ethics can be classified into five categories which includes INTEGRITY, CONFIDENTIALITY, OBJECTIVITY, PROFESSIONAL COMPETENCE AND PROFESSIONAL CONDUCT.These actions by Olympia marketing through which it instituted new policies to guide its personnel is CODE OF ETHICS.

The middle of supply chain information systems (SCIS) framework is which of the following?

a. Enterprise resource planning.
b. Enterprise planning and monitoring.
c. Enterprise integration and administration.
d. Financial operations and reporting.

Answers

Answer:

The correct answer is letter "B": Enterprise planning and monitoring.

Explanation:

Information Systems impact the Supply Chain at planning and monitoring stages. Information Systems allow managers to analyze information about the flow of the supply chain and allows them to spot where improvement is necessary. Besides, it allows tracking production to maximize it. Decisions can be made upon the feed Information Systems provide.

David purchases a yacht solely for the purpose of entertaining real estate clients. He wishes to position himself as a high-end real estate salesperson specializing in very expensive residences and uses the yacht only for business entertainment. During 2018, his expenses for maintaining and operating the yacht, including depreciation, were $28,000. In addition, he incurred $9,000 of catering expenses for meals he provided to business clients on the yacht. What is David's tax deduction in 2018?Explain.

Answers

Answer:

The tax deductions for the year are as follows:

Depreciation                             $28000

Catering expenses (50%)          $4500

Total deductions                        $32500

Explanation:

Depreciation is deductible in full as it is an operating expense for the year 2018.

Catering expenses deduction is limited to 50% maximum ,while the remaining 50% is not an allowable deduction for tax purposes.

One method of managing stress is finding a way to reduce the hindrance stressors encountered on the job. In your group, describe the hindrance stressors that you currently are experiencing.

Answers

Explanation:

Stress in the work environment can occur due to several factors, such as excessive pressure, long working hours, conflicts with colleagues and superiors, inadequate salary, insecurity, etc.

It is a factor considered the evil of the century, due to the high competitiveness in the market and faster and faster economic changes, which ends up increasing the company's expectation regarding the employee.

It is important for organizations to adopt a posture that focuses on the needs of employees, so that they are able to measure the level of job satisfaction and implement measures that reduce stress factors in the workplace.

It is also important that the worker seeks to manage his stress through small attitudes, such as establishing a list of tasks, managing his time, seeking to have a better relationship with co-workers, avoiding procrastination, etc.

__ Last week Stephanie lost her job as a copy-writer at an advertising agency after a corporate merger deal. She has spent the past few days browsing the help-wanted ads, but has not found anything that matches her skills. Stephanie is best classified as

Answers

Answer:

frictionally unemployed.

Explanation:

Frictional unemployment -

It refers to the situation , when a person is jobless and is searching for a new job in the upcoming healthy economy , is referred to as frictional unemployment.

The person might have left the job intentionally or unintentionally , but the main motto is to find a job which suits the person better .

Hence , from the given scenario of the question,

Stephanie is classified as a  frictionally unemployed .

Jane works 8:00 a.m. - 5:00 p.m. on Monday, and 10:00 a.m. - 7:00 p.m. on Tuesday to accommodate her family situation. Jane is making use of _______. Select one: a. Flextime b. Telework c. Job sharing d. Workplace accommodation

Answers

Answer:

a. Flextime

Explanation:

Flextime, is an arrangement between company and employee in which the employees are able to choose their starting and finishing working time, given that they fulfil the required number of hours. This arrangement is beneficial because it allows employees to better accommodate their personal life and work. Therefore, Jane is making use of a. Flextime.

Final answer:

Jane is utilizing flextime to accommodate her family situation by adjusting her work hours while still being present at the workplace during required core hours.

Explanation:

Jane is making use of flextime, which usually involves a requirement of core hours spent in the workplace around which the employee may schedule their arrival and departure from work to meet family demands. Unlike telecommuting, where employees work remotely from home at different parts of the day and set their own hours, flextime involves being present at the workplace during certain core hours while having the flexibility to adjust start and end times. Employers use these workplace arrangements to help manage and reduce work-family conflict, thus improving job satisfaction for their employees.

"Ivana just finished a training program sponsored by her employer that dramatically increased her computer skills. She feels that she should stay with the company for at least a couple more years to repay them for investing in her skill development. What type of commitment is Ivana likely experiencing?"

Answers

Answer:

As Ivana has just finished a training program sponsored by her employer that has dramatically increased her computer skills. She feels that she should stay with the company for at least a couple more years to repay them for investing in her skill development. Ivana is experiencing Normative Commitment for her organisation.

Explanation:

As Ivana has just finished a training program sponsored by her employer that has dramatically increased her computer skills. She feels that she should stay with the company for at least a couple more years to repay them for investing in her skill development. She is experiencing Normative Commitment for her organisation. She feels that she ought it to her company. Her company has added some value in her, she has spend time here and her company has made her learnt new skills, therefore, she should return something valuable to her company in the form of her services. Ivana feels herself obliged and consequently want to continue working for the same company so she can repay them something back.

Ivana is experiencing normative commitment, where she feels obliged to stay with her employer due to the investment they made in her skill development.

Ivana is likely experiencing what is referred to as normative commitment. Normative commitment refers to an employee's feeling of obligation to remain with an organization. In this case, Ivana feels obliged to stay with her employer because they invested in her skill development, which demonstrates a form of reciprocation. This form of commitment could greatly benefit companies as it promotes loyalty and reduces employee turnover.

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You determine that a robot welder is malfunctioning on your assembly line because final inspection has revealed a loose connection in every weld made by the robot. What specific management skill have you displayed?
1) Job knowledge2) Information processing3) Problem analysis4) Initiative

Answers

Problem analysis is the management skill that is displayed in the question.

Explanation:

Option 1: Job Knowledge

This option is closely associated with the question but not right. Only the job knowledge cannot solve the issue. You need an additional skill of problem solving to fix or identify the issue.

Option 2: Information processing

Processing the information is not the required skill to analyze the given problem.

Option 3: Problem analysis

Here there is a loose connection inspected. So inspection is one kind of analysis of problem. This skill is important for the given situation.

Option 4: Initiative

Initiative is one of the soft skill but this skill will not be used in analysis of a problem.

The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,520, sells the remote separately for $95, and offers the installation service separately for $285. The entire package sells for $1,800.

Answers

Answer:

$1,440 ; $90 and $270

Explanation:

The computation of the allocation cost for each is shown below:

TV

= (Sale value of TV ÷ Total sales value) × (Entire package sales value)

= ($1,520 ÷ $1,900) × $1,800

= $1,440

Remote

= (Sale value of remote ÷ Total sales value) × (Entire package sales value)

= ($95 ÷ $1,900) × $1,800

= $90

Installation service

= (Sale value of Installation service ÷ Total sales value) × (Entire package sales value)

= ($285 ÷ $1,900) × $1,800

= $270

The total sales value

= $1,520 + $95 + $285

= $1,800

Alpaca Corporation had revenues of $280,000 in its first year of operations. The company has not collected on $18,600 of its sales and still owes $26,700 on $95,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $11,500 in salaries. Owners invested $29,000 in the business and $29,000 was borrowed on a five-year note. The company paid $4,200 in interest that was the amount owed for the year, and paid $5,400 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. Compute net income for the first year for Alpaca Corporation.

Answers

Answer:

$99,960

Explanation:

Gross margin:

= Revenue - Cost of goods sold

= $280,000 - $95,000

= $185,000

Profit before tax:

= Gross margin - salaries - insurance payment - Interest

= $185,000 - $11,500 - ($5,400 ÷ 2) - $4,200

= $166,600

Net Income:

= Profit before tax - Tax

= $166,600 - (40% ×  $166,600)

= $166,600 - $66,640

= $99,960

Note:

As there is no inventory on hand, so the whole merchandise is used as the  Cost of Goods Sold.

Only half of 2-year payment of 6,800 is relevant for this year.

Final answer:

The net income for the first year for Alpaca Corporation is $126,714.29.

Explanation:

To compute the net income for the first year, we need to consider the various revenues and expenses of the company. First, we calculate the net sales by subtracting the uncollected sales ($18,600) from the total revenues ($280,000). Net sales = $280,000 - $18,600 = $261,400. Next, we calculate the cost of goods sold (COGS) by subtracting the amount still owed on merchandise ($26,700) from the initial purchase cost ($95,000). COGS = $95,000 - $26,700 = $68,300.

Then, we deduct the COGS, salaries ($11,500), interest ($4,200), and income tax (40% of net income) from the net sales. Net income = Net sales - COGS - Salaries - Interest - (Income tax rate x Net income). Plugging in the values, we have:

Net income = $261,400 - $68,300 - $11,500 - $4,200 - (0.40 x Net income)

Simplifying the equation, we get:

Net income = $261,400 - $68,300 - $11,500 - $4,200 - 0.40 Net income

Combining like terms, we have:

1.40 Net income = $261,400 - $68,300 - $11,500 - $4,200

1.40 Net income = $177,400

Solving for Net income, we divide both sides by 1.40:

Net income = $177,400 / 1.40

Net income = $126,714.29

Therefore, the net income for the first year for Alpaca Corporation is $126,714.29.

What is the present worth of $1,095.50, payable in 20 years, if the discount rate (4%), compounds annually?

Answers

Answer:

$500

Explanation:

The expression that describes the present net worth of an investment (P) given its future value (FV) at an annual rate (r) for a period of n years, compounded annually is:  

 [tex]P=\frac{FV}{(1+r)^n}[/tex]

If the future value of an investment is $1,095.50 after 20 years at a rate of 4% per year, the present value (P) is:

[tex]P=\frac{1,095.50}{(1+0.04)^{20}}\\P= \$499.97[/tex]

The present worth of this investment is roughly $500.

A machine costs $260,000 to purchase and will provide $60,000 a year in benefits. The company plans to use the machine for 12 years and then will sell the machine for scrap, receiving $15,000. The company interest rate is 11%. What is the present value of buying the machine, receiving annual benefits, and then selling the machine

Answers

Answer:

$133,828.98  

Explanation:

The computation of the net present value is shown below:

Year Cash flows Discount factor Present value

0 $260,000.00               1                         $260,000.00 (A)

1 $60,000.00         0.9009009009 $54,054.05

2 $60,000.00        0.8116224332            $48,697.35

3 $60,000.00        0.7311913813            $43,871.48

4 $60,000.00        0.6587309741          $39,523.86

5 $60,000.00        0.5934513281          $35,607.08

6 $60,000.00        0.5346408361       $32,078.45

7 $60,000.00         0.4816584109        $28,899.50

8 $60,000.00         0.4339264963        $26,035.59

9 $60,000.00         0.3909247714        $23,455.49

10 $60,000.00         0.3521844788        $21,131.07

11 $60,000.00         0.3172833142          $19,037.00

12 $75,000.00         0.2858408236        $21,438.06

Total present value                                     $393,828.98  (B)

Net present value                                   $133,828.98     (B - A)

The discount is come from

= 1 ÷ (1 + rate) ^ years  

Final answer:

Different operations and settings require specific types of buffers (inventory, time, or capacity) to manage supply and demand variations. Custom operations like cabinet making rely on inventory buffers, while emergency services and educational institutions often need capacity buffers. Logistics-intensive businesses such as Amazon benefit from capacity and time buffers to handle fluctuating order volumes.

Explanation:

The question involves identifying the types of buffers (inventory, time, or capacity) that would be expected in various operations and settings. Buffers are crucial in managing fluctuations and uncertainties in supply and demand across different industries. Here's a look at the types of buffers associated with each situation:

Custom Cabinets Maker: Inventory buffer is expected here due to the customization aspect requiring a variety of materials on hand.Automotive Spare Parts Producer: Inventory and time buffers, as demand can be unpredictable and stocking different parts is necessary.Hospital Emergency Room: Capacity buffer is key for dealing with varying numbers of patients.Wal-Mart: Inventory and time buffers, given its vast range of products and need to manage supply chain efficiently.Amazon: Capacity and time buffers, especially in its logistics and distribution network to accommodate fluctuating order volumes.Submarine Government Contractor: Capacity and time buffers, due to long production cycles and the complexity of projects.Bulk Chemical Producer: Inventory buffer, to manage production against fluctuating demand for different chemicals.Lawn Mower Maker for K-mart and Target: Inventory and time buffers, to ensure product availability and manage seasonal demand.Freeway: Capacity buffer, as road infrastructure must account for peak traffic flows.Space Shuttle: Time and capacity buffers, given the meticulous planning and backup systems required for space missions.Business School: Capacity buffer, to accommodate fluctuating student enrollments.

Due to marketing's success in business, what do management gurus think about marketing's role in a company?

Answers

Answer:

The correct answer is letter "C": that it's not just a function anymore.

Explanation:

Marketing has proved that it plays a key role in the success of a business. The way a company portraits its products to consumers impacts directly in the sales, then the better the advertisement the higher the revenue. Marketing is not perceived just as a function because of that. Technology and new means of communication have boosted this scenario since most goods and services are provided to consumers through mobile devices.

Elizabeth is marketing a new type of picture frame that she invented. She has developed a full identity for the product and wants to make sure that her design is protected before she takes it to market. She should seek a _____ for her product to grant it legal protection.

Answers

Answer:

Trademark.

Explanation:

Trademark is a type of intellectual property that involves use of a unique design to legally differentiate a product from others in the market. It shows a particular product belongs to a company.

Elizabeth should first of all get a trademark on her picture frames so that they will be legally protected from copying by others.

Wen really did not want to work on Saturday. On Saturday morning his boss called and told him to report and Wen did. Wen's boss had just demonstrated: Select one: a. coercion b. social power c. muscle d. social control

Answers

Answer:

b. social power

Explanation:

Social power is exercised by an individual when such an individual holds a higher rank in a society.

In the given case, an employee was desirous of taking a leave on Saturday but his Boss asked him to report, whose direction he could not decline. Since the boss represents a higher social rank, his order could not be refused.

This is the case of Social Power, wherein an individual exercises considerable influence over another owing to his higher position in social ranks.

Consider the following transactions. Receive cash from customers, $16,600. Pay cash for employee salaries, $10,600. Pay cash for rent, $4,600. Receive cash from sale of equipment, $9,600. Pay cash for utilities, $2,600. Receive cash from a bank loan, $5,600. Pay cash for advertising, $8,600. Purchase supplies on account, $4,600. Required: Post transactions to the Cash T-account and calculate the ending balance.

Answers

Answer:

Balance of the Cash account: 10,400        

Missing information

beginning Cash balance: 5,000

Explanation:

       CASH

      DEBIT               CREDIT    

          5,000

         16,600

                            10,600

                              4,600

          9,600

                              2,600

          5,600

                              8,600                

         36,800        26,400

Balance 10,400        

Cash is an asset account thus, increase from debit and decrease from credit.

When we receive cash is being debited

When we pay is credited.

The last trnasaction is a purchase on accont Hence, no cash involve. We don't posted in the Cash T-account

Slapshot Company makes ice hockey sticks. During the month of June, 1,900 sticks were completed at a cost of goods manufactured of $437,000. Suppose that on June 1, Slapshot had 350 units in finished goods inventory costing $80,000 and on June 30, 370 units in finished goods inventory costing $84,000.
Prepare a cost of goods sold statement for the month of June.

Answers

Answer:

COST OF GOODS SOLD        433,000

Explanation:

Beginning finished goods      80,000

cost of goods manufactured 437,000  

Total goods available for sale 517,000

ending finished goods            (84,000)  

COST OF GOODS SOLD        433,000

The beginning along with the godos manufactured represent all the units available for sale during the period.

The ending finished goods represent the unsold part Hence the difference is cost of goods sold.

To prepare a cost of goods sold statement for Slapshot Company, we calculate the cost of goods sold by subtracting the ending inventory from the cost of goods available for sale. The cost of goods available for sale is the sum of the cost of goods manufactured and the beginning inventory. In this case, the cost of goods sold for the month of June is $433,000.

To prepare a cost of goods sold statement for the month of June, we need to calculate the cost of goods sold (COGS). COGS can be calculated by subtracting the ending inventory from the cost of goods available for sale. The cost of goods available for sale is the sum of the cost of goods manufactured and the beginning inventory. In this case, the beginning inventory is $80,000 and the cost of goods manufactured is $437,000. Therefore, the cost of goods available for sale is $517,000.

Next, we need to calculate the ending inventory. The number of units in ending inventory is 370, and the cost of these units is $84,000.

Now we can calculate the COGS: COGS = Cost of goods available for sale - Ending inventory = $517,000 - $84,000 = $433,000. Therefore, the cost of goods sold for the month of June is $433,000.

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Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used in the product-costing system:

Overhead Cost Pool

Budgeted Overhead

Cost Driver

Estimated Cost Driver Level

Machine setups

$120,000

# of setups

120 setups

Materials handling

104,400

# of barrels

8,700 barrels

Quality control

264,000

# of inspections

1,100 inspections

Other overhead cost

144,000

# of machine hours

12,000 machine hours

Total overhead

$632,400

A current product order has the following requirements:

Machine setups

8 setups

Materials handling

606 barrels

Quality inspections

80 inspections

Machine hours

830 machine hours

Direct labor hour

336 hours

What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours?

$9,960

$44,268

$43,741

$30,240

Answers

Answer:

Allocated MOH= $44,268

Explanation:

Giving the following information:

Direct labor:

The budget for the year includes $432,000 payroll for 4,800 direct labor-hours.

Total estimated overhead= $632,400

Actual Direct labor hour (for an order)= 336 hours

First, we need to calculate the plantwide estimated manufacturing overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 632,400/4,800= $131.75

Now, we can allocate the overhead based in actual direct labor hours:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 131.75*336= $44,268

Final answer:

The total manufacturing overhead for the current product order, if the firm uses a plantwide rate based on direct labor-hours, is $44,268.

Explanation:

To calculate the total manufacturing overhead for the current product order when the firm uses a plantwide rate based on direct labor-hours, we first need to determine the overhead rate per labor-hour. We achieve this by dividing the total budgeted overhead costs by the total direct labor-hours.

So, $632,400 ÷ 4,800 hours = $131.75 per labor-hour (overhead rate).

Now, to find the total manufacturing overhead for the current product order, we multiply the number of direct labor hours needed for the product by this overhead rate:

336 hours × $131.75 per hour = $44,268.

Thus, the total manufacturing overhead for the current product order, under a plantwide rate based on direct labor-hours, is $44,268.

Learn more about Overhead Calculation here:

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You make sure that when you hire new people, you get input from each of the existing team members. If they are happy with new hire, they are more likely to make that person part of the team, and the team will sell more.Select the word or phrase that best complete the following sentences.Total quality management originated in ________a. Mexicob. Japanc. Russiad. United States

Answers

Answer:

The correct answer is letter "B": Japan.

Explanation:

Total quality management or TQM is an approach that aims to guide corporate success through employees' efficiency at work, based and providing on-demand products or services consumers are likely to be interested in. In the 70s and 80s, the U.S. and western European countries faced economic competition from the products offered from Japan that gave customers high-quality goods at reasonable costs.

A marketing consultant uses the job costing system and has a pre-determined overhead rate of $15 per direct labor hour. This amount is based on an estimated overhead of $30,000 and an average time of 5.0 hours per job. Job #521 incurred direct material costs of $50 and 6 direct labor hours costing of $75 per hour. The total cost of job #521 is_.
A. $155.
B. $215.
C. $565.
D. $590

Answers

Answer:

D. $590

Explanation:

Predetermined overhead rate = $15 per labour hour

Direct Material cost = $50

Labor rate = $75 per hour

Number of Direct labor hour = 6

Direct labor cost = 6 x 75 = $450

Overhead applied cost = Predetermined overhead rate x Direct labor hours

Overhead applied cost = 15 x 6 = $90

Total cost = $50 + $450 + $90

Total cost = $590

So, the correct answer is D. $590

A useful economic model a. deals only with possibilities that actually occurred. b. will avoid conclusions that have public policy implications, because economists do not make value judgments. c. makes only realistic assumptions. d. may make some unrealistic assumptions in order to simplify a complex reality. g

Answers

Answer:

d. may make some unrealistic assumptions in order to simplify a complex reality

Explanation:

In economics, a model is a conceptual structure that represents economic procedures through a number of variables and a series of rational or quantitative interactions. The economic model is a simpler framework intended to demonstrate complex structures that is often mathematical.

Final answer:

A useful economic model often makes unrealistic assumptions to simplify complex realities, allowing economists to understand and predict economic behaviors. These simplifications are standard in economics and can provide relevant insights despite their lack of realism.

Explanation:

Within the realm of economics, a useful economic model may indeed make some unrealistic assumptions in order to simplify complex realities and analyze important economic relationships. While it's true that these assumptions are not realistic reflections of the real world, their purpose is to create a framework that allows economists to isolate and understand the behaviors and interactions that drive economic outcomes.

Economic models function as tools that help economists reason through problems by creating a more manageable version of reality. For example, models may assume perfect information, profit maximization, or rational choices to explore how agents are likely to behave under certain conditions. Critically, while the real world is more nuanced and uncertain, these simplifications can reveal insights that do bear relevance to more complex, real-life situations.

Therefore, the correct answer to the student's question is that a useful economic model d. may make some unrealistic assumptions in order to simplify a complex reality. This is acknowledged as a standard practice in economics, which seeks to understand how agents respond to changes and predict outcomes through the analysis of simplified representations of reality.

Assume the probability of a pessimistic, most likely and optimistic state of nature is .25, .45 and .30, and the returns associated with those states of nature are 10%, 12%, and 16% for asset X. Based on the information, the expected return and standard deviation of return are: (MUST SHOW ALL WORK FOR CREDIT)

A) 12.0% and 4.0%
B) 12.7% and 2.3%
C)12.7% and 4.0%
D) 12.0% and 2.3%
E) none of the above

Answers

Answer:

E) none of the above

12.70% and 2.49% standard deviation

Explanation:

We multiply probability by the outcome to get the weighted amount, we add them and get the expected return.

probability outcome weighted

0.25          0.10   0.0250

0.45          0.12   0.0540

0.30          0.16   0.0480

expected return  0.1270

Now that we got the expected return at 12.7%

We now subtract the possible outcome with the expected return and square them:

(0.127-0.1)^2

(0.127-0.12)^2

(0.127-0.16)^2

Then we add them and divide by the sample which is 3

0.000622  

²√ 0.000622   = 0.024944383

Final step, will be the square root which gives the standard deviation

of 2.49% = 0.024947  

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