Answer:
$950
Explanation:
Gross pay refers to the total income of an employee before taxes and deductions are removed.
The employee gross pay for the first week of January is calculated as follows:
Regular income = $20 × 40 hours = 800
Overtime income = ($20 × 150%) × (45 - 40 hours)
= $30 × 5 hours = $150
Gross pay = $800 + $150 = $950
NOTE
The following is not stated in the question but just meant to teach you how to calculate the net pay from the question in case you are later asked to calculate it.
Net pay refers to the total income of an employee after taxes and deductions are removed. It can be calculated as follows:
FICA Social Security = 6.2% × $950 = $58.90
Note that 6.2% of the remaining amount of $127,450 (i.e. $128,400 - $959 = $127,450) will still be deducted in the subsequent employee's income to account for the total FICA Social Security deductible.
FICA Medicare = 1.45% × $950 = $13.78
Federal income tax withheld = $92
Total deduction = $58.90 + $13.78 + $92 = $164.68
Note: As stated in the question, the employee's wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. This implies that her wages are not subject to FUTA and the SUTA tax. That is why they are not included in the calculation of the total deduction.
Net Pay = Gross pay - total deduction = $950 - $164.68 = $785.32.
Answer:
Gross Wages = $950
Explanation:
The question is to determine the employee's gross pay for the first week of January as follows:
Description Amount
Regular wages (Regular hours 40 x $20) $800
Overtime wages $150
(Total hours - regular hours) x rate per hour
x pay rate
( 45-40) x $20 x 150%
Gross Wages $950
However, not that if you are to calculate the net wages, social security which is Gross x 6.2%, Medicare which is Gross x 1.45% and Federal Income tax which is $92 withheld will be subtracted from the gross pay or wages.
5. Shifts of the aggregate supply curve Which of the following would properly be classified as a favorable supply shock? There is an increase in government spending. There is a technological improvement that allows firms to reduce their costs of production permanently. The world price of oil increases rapidly without warning and is expected to remain at the new high level for many years, making it more expensive for all firms to produce goods and services.
Answer:
There is a technological improvement that allows firms to reduce their costs of production permanently
Explanation:
A favourable supply shock refers to an event that increases supply.
A technological improvement which reduces cost of production is a positive occurrence because supply can increase as cost of production falls.
An increase in the world price of oil is a negative supply shock because if increases cost of production and supply falls as a result.
I hope my answer helps you
A favorable supply shock in the context of the aggregate supply curve would be a technological improvement that allows firms to reduce their costs of production permanently, resulting in a rightward shift of the curve.
Explanation:The question pertains to shifts in the aggregate supply curve and what factors could lead to a favorable supply shock. When we consider the scenarios provided, the one that would be classified as a favorable supply shock is technological improvement that allows firms to permanently reduce their costs of production. A technological advancement can lead to an increase in supply, which is depicted as a shift to the right of the aggregate supply curve. This shift indicates that for any given price level, the economy can produce and supply more goods and services. Conversely, an increase in government spending typically affects aggregate demand, not supply, and an increase in the world price of oil represents an adverse supply shock, causing the aggregate supply curve to shift left, reflecting higher production costs and a decrease in supply.
"Come out of the fog, young man. And remember you don't have to be a complete fool in order to succeed. Play the game, but don't believe in it--that much you owe yourself." *
Answer:
Quoted from"The Invisible Man" by Ralph Ellison, these lines are spoken by the vet who had mocked the narrator's college and Mr. Norton.
Explanation:
Ralph Ellison's "The Invisible Man" tells the story of the narrator/ protagonist who had been accustomed to being "invisible", meaning he was unnoticed by people. Amidst the racial prejudice of the blacks by the whites, the young narrator finds it hard to fully comprehend the situation. And things turn for the worse when he showed the reality of life for the blacks to one of the college's benefactors which resulted in him getting expelled from the college.
But despite all that, he calmly accepted his mistake and asked for recommendation from the man. The letters did not endorse him but rather cheated him from any form of employment. The given quote is from Chapter 7, spoken by the vet who was his co-passenger in the bus for New York. He told the young man to "come out of the fog". He advised him to try to "learn to look beneath the surface", be more conscious of the events around him so as not to be a victim.
The question pertains to themes of self-awareness, personal growth, and skepticism in societal participation, typically discussed in college-level English literature or philosophy classes.
Explanation:The passage provided appears to be about self-awareness, personal development, and the dichotomy between participating in life's games and maintaining a distance from fully believing in them. This topic falls under the category of English, specifically in the field of literature or philosophical discussion often found in novels, essays, or similar texts. The passage suggests that in order to improve oneself, a person may need to accept being perceived as foolish by others. This idea is mirrored across other quotes provided, which reflect themes of self-knowledge, the importance of maintaining a level of skepticism about one's perceived importance, and the acknowledgement of life's deeper questions and challenges.
One particular emphasis is on the concept that success doesn't require complete buy-in into societal games, but rather a strategic participation with a level of detachment. This philosophical viewpoint can lead to a more authentic path of personal growth and self-discovery. Such profound reflections are typical of college-level English literature or philosophy courses, where students are encouraged to engage with complex ideas and analyze texts deeply.
The account Paid-In Capital from Treasury Stock Transactions has a credit balance of $2,000. The corporation resells 450 shares of its treasury stock. These shares were acquired for $10 per share and sold for $3 per share. The entry to record the sale of treasury stock includes a debit to Retained Earnings of $3,150.
a. true
b. false
Answer:
b. false
Explanation:
The journal entry is shown below:
Cash A/c Dr $1,350 (450 shares × $3)
Paid in capital - Treasury stock $2,000
Retained Earnings A/c Dr $1,150
To Treasury Stock A/c $4,500 (450 shares × $10)
(Being treasury stock is sold at lower price and the remaining amount would be debited to the retained earning account)
Hence, the given statement is false
Quackenbush Widgets has developed a new type of widget that whistles, sings, and plays the accordion—making it unlike any other widget ever produced. Quackenbush wishes to grab a hold in the musical widget market before its competitors create similar products, so when it releases its new widget it prices it at only $250—even though most of its other widgets start at $350. Which pricing strategy does this example show?
1. Cost-plus pricing
2. Price penetration
3. Price skimming
4. Value pricing
Answer:
The answer to this question is 2. Price penetration
Explanation:
price penetration is a method of pricing that involves setting a very low price to attract customers to buy a new product. It is a pricing strategy that is used to gain market share and customer base most especially for new product.
The price is set low with the view to entice consumer and gain more market share for new product.
Hence the action of Quackenbush Widgets setting the price of its new widgets at only $250 even though others widgets starts from $350 is an example of a price penetration
The debits and credits for four related entries for a sale of $15,000, terms 1/10, n/30, are presented in the following T accounts. Cash (5) 13,860 Accounts Receivable (1) 14,850 (3) 990 (5) 13,860 Merchandise Inventory (4) 575 (2) 8,800 Estimated Returns Inventory (4) 575 Customer Refunds Payable (3) 990 Sales (1) 14,850 Cost of Merchandise Sold (2) 8,800 Describe each transaction. 1. Sold merchandise on account. 2. Recorded the cost of the merchandise sold and reduced the merchandise inventory account. 3. 4. 5. Check My Work5 more Check My Work uses remaining.
please finThe debits and credits for four related entries for a sale of $15,000, terms 1/10, n/30, are presented in the following T accounts. EXPLANATIONS for these accounts are given below in an attachment
The following transactions took place at Fine Fashions Outlet during July 2019. Fine Fashions Outlet uses a perpetual inventory system. DATE TRANSACTIONS July 1 Purchased dresses for $4,400 plus a freight charge of $700 from Fashion Expo, Invoice 101, dated July 1; the terms are 2/10, n/30. 5 Sold two dresses on account to Alice Chu, terms 1/10, n/30; issued Sales Slip 788 for $900. The cost of the dresses sold was $720. 7 Received Credit Memorandum 210 for $850 from Fashion Expo for damaged dresses returned; the goods were purchased on Invoice 101 dated July 1. 9 Accepted a return of a dress from Alice Chu; the dress was originally sold on Sales Slip 788 of July 5; issued Credit Memorandum 89 for $400. The cost of the returned dress was $240. 10 Issued Check 1255 to pay the amount due to Fashion Expo for Invoice 101, dated July 1, less the return of July 7 and less the cash discount. 15 Received payment from Alice Chu for the sale of July 5, less the return of July 9 and less the cash discount. 15 Recorded sales on credit cards for the two-week period ended July 15, $13,000; the bank charges a 3 percent fee on all credit card sales. The cost of merchandise sold was $10,400. 17 Purchased merchandise on account from Fashion Wholesalers for $5,000, subject to trade discounts of 40 percent and 10 percent, terms 1/10, n/30, Invoice 2078. 26 Paid amount owed to Fashion Wholesalers for the purchase of July 17, Check 1285. Record the transactions in a general journal.
Answer:
July 1 Debit inventory 5100 credit Accounts payable 5100
5 July Debit Accounts receivables 900 credit sales 900
debit cost of sales 720 credit inventory 720
7 July Debit Accounts payable 850, credit inventory 850
9 July Debit sales allowance 400, credit Accounts receivables 400
debit inventory 240 credit cost of sales 240
10 July Debit Accounts payable 4165 credit bank 4165
15. July Debit Bank 13000 credit sales 13000
debit cost of sales 10400 credit inventory 10400
debit bank charges 390 credit bank 390
17 debit merchandise 5000 credit Accounts payable 5000
26 Debit Accounts payable 4950 credit bank 4950
Explanation:
1 july inventory is the total of purchases plus freight charges.
10 july the discount is on the remaining amount after the goods returned because goods returned had decreased the amount owing.
26 july the trade discounts are for when buying and paying same day when it it is on account there can only be settlement discount
Final answer:
Fine Fashions Outlet's transactions from July 2019 must be correctly recorded in a general journal, following the details and terms provided for each transaction within the perpetual inventory system.
Explanation:
For Fine Fashions Outlet, which uses a perpetual inventory system, the transactions from July 2019 must be properly recorded in the general journal. Each transaction involves different aspects of business operation such as purchases, sales, returns, and payments. Detailed entries including dates, amounts, and terms are crucial for accurate financial accounting and inventory management.
Purchase of dresses and payment of freight with terms.
Sales of dresses on account with terms and cost of goods sold.
Receipt of a credit memorandum for returned damaged dresses.
Acceptance of a return from a customer and issuance of a credit memorandum considering the cost.
Issuance of a check to Fashion Expo considering returns and cash discounts.
Collection of payment from customer considering returns and discounts.
Recording credit card sales and associated bank charges along with the cost of goods sold.
Purchase of merchandise considering trade discounts and payment terms.
Payment made to Fashion Wholesalers for prior purchases.
Each entry should reflect the specific details of the transaction – the date, the parties involved, the nature of the transaction (e.g., purchase, sale, return), and the terms of the transactions (discounts, due dates, and so on).
A bond’s is generally $1,000 and represents the amount borrowed from the bond’s first purchase. • A bond issuer is said to be in if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issues restrictive covenants. • The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called . • A bond’s gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions. What is the coupon interest rate of this bond?
Explanation:
1. A bond's face or maturity value is generally $1,000 and represents the amount borrowed from the bond's first purchaser.
2. A bond issuer is said to be in default if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue's restrictive covenants.
3. A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a singing fund provision.
4. A bond's call provision gives the issuer the right to call, or redeem, a bond at specific time and under specific conditions.
Gabriele Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and selling for $964. At this price, the bonds yield 6.7 percent. What must the coupon rate be on the bonds?
Answer:
Coupon rate = 5.8%
Explanation:
The price of a bond is the present value (PV) of the future cash flows discounted at its yield.
So we will need to work back to ascertain the coupon rate
Step 1
Calculate the PV of redemption value and PV of interest payments
PV of Redemption
= 1.067^(-5) × 1000
=723.06
PV of the annual interest rate
= price of the bond - PV of redemption
= $964- 723.06
= 240.934
Step 2
Calculate the interest payment
Interest payment = PV of redemption value / annuity factor
Annuity factor =( 1 -(1+r)^(-n) )/r
Annuity factor at 6.7% for 5 years
Factor =( 1-1.067^(-5) )/0.067
= 4.1333
Interest payment = PV of the annual interest rate / Annuity factor
Interest payment=
=240.93/4.1333
=58.290
Step 3
Calculate the coupon rate
Coupon rate = interest payment/ par value
Coupon rate = (58.290/1000) × 100
= 5.8%
Coupon rate = 5.8%
Examining relationships among data in the company's financial statements can provide knowledge that can not be gained from just looking at individual items in the statements.
Options: True or False
Answer: True
Explanation: Financial statements is a written record of the inflow and outflow of funds in an organisation, it gives a description and clearer picture or view of how the financial activities taking place in the Organisation has been managed,it helps the decision makers to see the true picture and state of affairs of the Organisation.
EXAMINING FINANCIAL STATEMENTS HELPS TO REVEAL MORE DETAILED INFORMATION THAT CAN NOT BE OBTAINED BY JUST LOOKING AT INDIVIDUAL ITEMS IN A STATEMENT.
Eduardo is working his way up the ladder in the world of amateur boxing. He makes a stinging remark about his next opponent on TV by saying that his opponent is a coward who probably practices boxing by beating up his wife. Which of the following is true?
Eduardo is being defamatory because his remarks may harm his opponent’s reputation.
Eduardo is not being defamatory because his remarks are statements of opinion only.
Eduardo is not being defamatory because it is obvious that the statement must be false.
Eduardo is being defamatory because the information he published is true.
Answer:
The correct answer is letter "A": Eduardo is being defamatory because his remarks may harm his opponent’s reputation.
Explanation:
Defamation is the act by which one individual or organization states something about another party as true without proven facts and typically negatively affecting that other party. In such cases, the party affected can sue the defamatory party so the statement causing the dispute can be evaluated. If it is not true, the affected party can request monetary compensation for slander.
Thus, Eduardo is being defamatory by saying that his next box opponent beats up his wife since he does not have proof of such actions. Eduardo is likely trying to dismiss his opponent's reputation.
Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company’s production activities during May 2017 follows. Purchased raw materials on credit, $220,000. Materials requisitions record use of the following materials for the month. Job 136 $ 50,000 Job 137 33,000 Job 138 19,400 Job 139 23,200 Job 140 7,200 Total direct materials 132,800 Indirect materials 20,500 Total materials used $ 153,300 Paid $15,500 cash to a computer consultant to reprogram factory equipment. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 $ 12,100 Job 137 10,500 Job 138 37,500 Job 139 39,200 Job 140 3,200 Total direct labor 102,500 Indirect labor 25,500 Total $ 128,000 Applied overhead to Jobs 136, 138, and 139. Transferred Jobs 136, 138, and 139 to Finished Goods. Sold Jobs 136 and 138 on credit at a total price of $525,000. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). Depreciation of factory building $ 68,000 Depreciation of factory equipment 36,500 Expired factory insurance 12,000 Accrued property taxes payable 35,000 Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. Required: 1. Prepare a job cost sheet for each job worked on during the month.
Job cost sheets for Widmer Watercraft's May 2017 production activities were prepared, accounting for materials, labor, and overhead (200% of labor cost) for each job handled in the month.
Explanation:The preparation of job cost sheets plays a vital role in accounting and financial tasks, specifically in cost accounting where it allows companies to estimate the costs associated with each job. Below are the job cost sheets you asked for:
Job 136
Materials: $50,000Labor: $12,100Overhead: $24,200 (200% of $12,100)
Job 137
Materials: $33,000Labor: $10,500Overhead: $21,000 (200% of $10,500)
Job 138
Materials: $19,400Labor: $37,500Overhead: $75,000 (200% of $37,500)
Job 139
Materials: $23,200Labor: $39,200Overhead: $78,400 (200% of $39,200)
Job 140
Materials: $7,200Labor: $3,200Overhead: $6,400 (200% of $3,200)Learn more about Job Cost Sheet here:
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Each job cost sheet outlines the direct materials, direct labor, and applied overhead costs incurred for each respective job during May 2017. Direct materials and labor costs are recorded based on actual expenditures, while applied overhead is calculated at 200% of direct labor cost, as per the predetermined overhead rate. Total costs for each job are calculated by summing up the direct materials, direct labor, and applied overhead costs.
Explanation:Job Cost Sheets for each job worked on during May 2017 are as follows:
Job 136:
Direct Materials: $50,000
Direct Labor: $12,100
Applied Overhead (200% of direct labor): $24,200
Total Cost: $86,300
Job 137:
Direct Materials: $33,000
Direct Labor: $10,500
Applied Overhead (200% of direct labor): $21,000
Total Cost: $64,500
Job 138:
Direct Materials: $19,400
Direct Labor: $37,500
Applied Overhead (200% of direct labor): $75,000
Total Cost: $131,900
Job 139:
Direct Materials: $23,200
Direct Labor: $39,200
Applied Overhead (200% of direct labor): $78,400
Total Cost: $140,800
Job 140:
Direct Materials: $7,200
Direct Labor: $3,200
Applied Overhead (200% of direct labor): $6,400
Total Cost: $16,800
Suppose a loan of $38,000 is taken out with an annual interest rate of 8.125%, with interest compounded semiannually. If equal payments are also made semiannually, find the amount of each payment needed to amortize (pay off) the loan in 13 years.
Answer:
$2,393.78
Explanation:
In this question we use the PMT formula that is shown in the attachment below:
Data provided in the question
Present value = $38,000
Future value = $0
Rate of interest = 8.125% ÷ 2 = 4.0625%
NPER = 13 years × 2 = 26 years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the amount of each payment is $2,393.78
Mauro Products distributes a single product, a woven basket whose selling price is $12 per unit and whose variable expense is $9 per unit. The company’s monthly fixed expense is $6,300. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)
Answer:
1. 2,100 units
2. $25,200
3. 2,300 units and $27,600
Explanation:
The break-even point is the level of sales at which the business incur no profit no loss.Fixed and variable costs are covered at this level of sales.
Contribution Margin = Sale price - variable cost = $12 - $9 = $3
Contribution Margin ratio= Contribution Margin / Sale price = $3 / $12 = 25%
1.
Break-even point = Fixed cost / Contribution margin = $6,300 / $3 = 2,100
2.
Break-even point = Fixed cost / Contribution margin ratio = $6,300 / 25% = $25,200
3.
Fixed Cost = $6,300 + $600 = $6,900
Break-even point = Fixed cost / Contribution margin = $6,900 / $3 = 2,300 units
Break-even point = Fixed cost / Contribution margin ratio = $6,900 / 25% = $27,600
Protect provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the year, Protect has collected $500 from cash paying customers. Protect's remaining customers owe the business $1,200.
How much service revenue would Protect have for the year under:
a. Cash Basis?
b. Accural Basis?
Answer:
a. $500
b. $1,700
Explanation:
In the cash basis system of accounting, revenue is recognized once cash has been collected while under accrual basis, revenue is collected once it is earned irrespective of whether cash has been collected or not.
Expenses are recorded when cash is paid in the cash basis system while expenses are recorded once it is incurred under the accrual system of accounting.
Hence
Cash basis - revenue earned is $500 for the year
Accrual basis - revenue earned is $1700 ( the sum of the amount paid and owed by the customer).
Applying activity-based costing LO P1, P3, A1, A2, C3 [The following information applies to the questions displayed below.] Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $ 320,000 Polishing $ 135,000 Product modification 600,000 Providing power $ 255,000 System calibration 500,000 Additional information on the drivers for its production activities follows. Grinding 13,000 machine hours Polishing 13,000 machine hours Product modification 1,500 engineering hours Providing power 17,000 direct labor hours System calibration 400 batches Job 3175 Job 4286 Number of units 200 units 2,500 units Machine hours 550 MH 5,500 MH Engineering hours 26 eng.hours 32 eng.hours Batches 30 batches 90 batches Direct labor hours 500 DLH 4,375 DLH. Compute the activity overhead rates using ABC. Form cost pools as appropriate. Determine overhead costs to assign to the following jobs using ABC. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286?
Answer:
Craft Pro Machining
Activity Rate= Activity Cos/ Cost Driver
Production Activities Cost Drivers Activity Rate
Grinding $ 320,000 13,000 machine hours 24.615per machine hour
Polishing $ 135,000 13,000 machine hours 10.38 per ,machine hour
Product modification 600,000 1,500 engineering hours 400 per eng. hour
Providing power $ 255,000 17,000 direct labor hours 15 per DLH
System calibration 500,000 400 batches 1250 per batch
Working:
Job 3175 Job 4286
Number of units 200 units 2,500 units
Machine hours 550 MH 5,500 MH
Engineering hours 26 eng.hours 32 eng.hours
Batches 30 batches 90 batches
Direct labor hours 500 DLH 4,375 DLH
Job 3175 Job 4286
Number of units 200 units 2,500 units
Grinding & Polishing 19247.25 192472.5
Product modification 10400 12800
System calibration 37500 112500
Providing power 7500 65625
Total Costs $ 74,647.25 $ 383,397.5
The overhead cost per unit for Job 3175 = $ 74,647.25 /200=$ 373.24
The overhead cost per unit for Job 4286= $ 383,397.5/2,500= $ 153.36
internal control of cash receipts , Jodi rostad works at the drive-through window of mamma's burgers. Occasionally, when a drive-through customer orders, jodi fills the order and pockets the customer's money. she does not ring up the order on the cash register. If mamma's burgers cannot hire more people to prevent this theft, the most effective internal control to implement would be:
Answer:
To implement and advertise a policy that any customer who does not receive a reciept is entitled to a free burger.
Explanation:
Internal control is the process by which an organisation's objectives are met by ensuring efficiency of operational procedures, reliable financial reporting, and compliance with regulations and policies.
The normal procedure in Mamma's burgers is for Jodi to ring up customer orders on the cash register. Since she is taking the money and pocketing it occasionally, the best internal control policy is to advertise that any customer who did not receive a receipt will be entitled to a free burger.
This will give the customers incentive to report cases where reciepts are not given. The measure will act as a deterrent to Jodi.
An operation operates with a variable cost percentage of 72%. The owner wants to increase sales revenue by an amount necessary to provide for an additional operating income of $800 a month, or $9,600 a year. What is the additional increase in sales revenue required
Answer:
The answer is $2,857.14
Explanation:
Let us assume Sales be $500 per month
Monthly
Sales $500
Less: Variable Cost(72%) $360
Contribution(will be 28%) $140
Less: Fixed Cost(Assume) 0
Operating Income $140
If there should be an increase of $800 per month in the operating Income
Revised Operating Income $140 + $800 = $940
Therefore Contribution is equal to $ 940
If Contribution is $940 equal to 28%, then Sales be 100%
$940 ÷ 28%
$3,357.14
Therefore additional increase in Sales revenue required per month
$3,357.14 - $500
$2,857.14
To calculate the additional increase in sales revenue required, divide the desired operating income by the variable cost percentage. The result is the additional increase in sales revenue needed.
Explanation:To calculate the additional increase in sales revenue required, we need to determine the operating income that corresponds to the desired increase of $800 per month or $9,600 per year. The variable cost percentage of 72% means that 72% of the sales revenue goes towards covering variable costs. We can set up an equation to find the additional increase in sales revenue:
Additional increase in sales revenue = Desired operating income / Variable cost percentage
Substituting the values for the desired operating income and variable cost percentage:
Additional increase in sales revenue = $9,600 / 0.72 = $13,333.33
Therefore, the additional increase in sales revenue required is $13,333.33.
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On January 1, 2016, Culver Corporation granted 9,300 options to key executives. Each option allows the executive to purchase one share of Culver’s $5 par value common stock at a price of $20 per share. The options were exercisable within a 2-year period beginning January 1, 2018, if the grantee is still employed by the company at the time of the exercise. On the grant date, Culver’s stock was trading at $25 per share, and a fair value option-pricing model determines total compensation to be $409,000.
On May 1, 2018, 7,440 options were exercised when the market price of Culver’s stock was $30 per share. The remaining options lapsed in 2020 because executives decided not to exercise their options.
Prepare the necessary journal entries related to the stock option plan for the years 2016 through 2020.
Answer:
Explanation:
Jan.1 2016 No entry
Dec.31 2016
Dr Compensation expense [$409,000/2] $204,500
Cr Paid in capital - Stock options $204,500
Dec. 31 2017
Dr Compensation expense [$409,000/2] $204,500
Cr Paid in capital - Stock options $204,500
Dec. 31 2018
Dr Cash [7440*$20] $148,800
Dr Paid in capital - Stock options [$409,000*(7440/9300)] $327,200
Cr Common stock [7440*$5] $37,200
Cr Paid in capital in excess of par [148,800+327,200-37,200] $438,800
Jan. 1 2020
Dr Paid in capital - Stock options [409,000-327,200] $81,800
Cr Paid in capital from expired stock $81,800
Creative Concepts Co. and Retail Investment, Inc., form a joint venture to purchase and sell high?end real estate to foreign buyers. Creative Concepts contributes $400,000 in capital, and Retail Investment contributes $600,000 in capital. The first year resulted in $2,000,000 in profits. Unless otherwise agreed, joint venturers:
a. share profits and losses by proportion to the amount invested.
b. share profits and losses equally.
c. retain profits with the joint venture until the joint venture is dissolved by at least one member.
d. share profits and losses according to the state's Uniform Joint Venture Act.
Answer:
d. share profits and losses according to the state's Uniform Joint Venture Act.
Explanation:
Financial accounting: Multiple Choice Provides information primarily for external decision makers. Provides information primarily for a company's employees. Provides information primarily for the use of managers of the company. Is primarily used to compute a company's tax obligation. g
Answer:
The correct answer is letter "A": Provides information primarily for external decision makers.
Explanation:
Financial Accounting is the method of gathering, recording, summarizing and publishing financial data on a company that is useful to investors and creditors. The ultimate goal is to accurately report a business' financial picture and results at a given point in time and over a specified period.
Financial accounting output is a financial report containing different statements and explanatory notes.
Commodity money is
A.backed by gold.
B.the principal type of money in use today.
C.money with intrinsic value.
D.receipts created in international trade that are used as a medium of exchange.
Answer:
The correct answer is letter "C": money with intrinsic value.
Explanation:
Commodity money refers to the value items have themselves (intrinsic) and the value they have to purchase other goods. Commodity money opposes fiat money which is a currency issued by governments with a value imposed that does not represent the actual value of the paper or coin it is. In such a case, fiat money is only used as a medium of exchange.
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system: Driver and guard wages $ 960,000 Vehicle operating expense 390,000 Vehicle depreciation 270,000 Customer representative salaries and expenses 300,000 Office expenses 160,000 Administrative expenses 460,000 Total cost $ 2,540,000 The distribution of resource consumption across the activity cost pools is as follows: Travel Pickup and Delivery Customer Service Other Totals Driver and guard wages 50 % 35 % 10 % 5 % 100 % Vehicle operating expense 70 % 5 % 0 % 25 % 100 % Vehicle depreciation 60 % 15 % 0 % 25 % 100 % Customer representative salaries and expenses 0 % 0 % 90 % 10 % 100 % Office expenses 0 % 20 % 30 % 50 % 100 % Administrative expenses 0 % 5 % 60 % 35 % 100 % Required: Complete the first stage allocations of costs to activity cost pools.
Answer:
SecuriCorp
The First level Allocations will be:
Of a total cost of $2,540,000
Travel allocated costs is $915,000
Pick Up and Delivery is $451,000
Customer Service is $690,000
Others is $484,000
Explanation:
the next level of allocation will be to determine the cost rate based on the Activity Measures, however these were not provided in the question
Activity Based Costing is a costing technique that allocates costs based on the activity level of certain pre-determined cost drivers.
Instead of taking the pool of costs and dividing it by Volume to arrive at an Average Costs, Activity Based Costing believes all components leading to the cost generated should bear the burden of the cost by determining the Driver rate per activity.
If from the example we have worked above, we are told the number of miles covered is 20,000 miles and the actual Cost we worked out for Travels was $960,000. This implies we have an activity rate of $48 Per mile covered as travels costs.
The same would apply to Customer Services if for example 3,000 customers were attended to in the period, the Rate Per Customer will become $690,000 divided by 3,000 = $230 Per Customer
With these indices, it is easy to then allocate costs on the basis of miles traveled + Customers Attended to etc
To allocate costs to the activity cost pools, multiply the total costs by the resource consumption percentages provided for each activity.
Explanation:In order to allocate costs to the activity cost pools, we need to use the distribution of resource consumption percentages provided. Let's calculate the cost allocation for each activity cost pool:
Travel cost pool: Multiply total costs by 50% for driver and guard wages, 70% for vehicle operating expense, and 60% for vehicle depreciation.Pickup and Delivery cost pool: Multiply total costs by 35% for driver and guard wages, 5% for vehicle operating expense, and 15% for vehicle depreciation.Customer Service cost pool: Multiply total costs by 10% for driver and guard wages, 0% for vehicle operating expense, and 0% for vehicle depreciation, and 90% for customer representative salaries and expenses.Other cost pool: Multiply total costs by 5% for driver and guard wages, 25% for vehicle operating expense, and 25% for vehicle depreciation, and 10% for customer representative salaries and expenses, and 50% for office expenses, and 35% for administrative expenses.Learn more about Cost allocation here:https://brainly.com/question/34659373
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The free cash flow hypothesis supports A. decreasing stockholder dividends to retain more cash within the firm. B. reducing a firm's level of debt to reduce the amount of cash used to pay interest. C. increasing the debt portion of a firm's capital structure to increase firm value. D. hiring managers with little or no stock ownership in the firm. E. the idea that firms with high levels of free cash flow are more apt to make good acquisitions than firms with low levels. Reset Selection\
Answer:
The correct answer is C
Explanation:
Free cash flow hypothesis is the one which is defined as the increase in the cash flow, which the agency costs of the firms or business with the opportunities of the poor investment. The management which exhausted the positive projects of NPV (Net Present Value), it proceeds in order to invest in negative NPV projects instead paying out the funds to the shareholders.
So, this hypothesis supports, in increasing or rising the portion of debt of the capital structure of the firm so that could increase the value of the firm.
You are planning to make monthly deposits of $370 into a retirement account that pays 9 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 35 years?
Answer:
Future value = $1,088,460.26
Explanation:
Given:
Periodic payment (PMT) = $370
Internet rate (r) = 9% / 12 = 0.75% per month = 0.75 /100 =0.0075
Number of period (n) = 35 years x 12 months = 420
Future value = ?
Computation of future value:
[tex]Future \ value = Pmt[\frac{(1+r)^n-1}{r} ]\\\\Future \ value = 370[\frac{(1+0.0075)^{420}-1}{0.0075} ]\\\\Future \ value = 370[\frac{(1.0075)^{420}-1}{0.0075} ]\\\\Future \ value = 370[\frac{23.0633836-1}{0.0075} ]\\\\Future \ value = 370[\frac{22.0633836}{0.0075} ]\\\\Future \ value = 370[2,941.78448]\\\\Future \ value = 1,088,460.26\\\\[/tex]
Future value = $1,088,460.26
Exercise 06-5 Absorption costing and variable costing income statements LO P2 Rey Company’s single product sells at a price of $216 per unit. Data for its single product for its first year of operations follow. Direct materials $ 20 per unit Direct labor $ 28 per unit Overhead costs Variable overhead $ 6 per unit Fixed overhead per year $ 160,000 per year Selling and administrative expenses Variable $ 18 per unit Fixed $ 200,000 per year Units produced and sold 20,000 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing.
Answer:
1. Income statement for the year
using Absorption Costing
Selling price ( 20,000 x $216 ) $4,320,000
Direct materials ( 20,000 x $20 ) $400,000
Direct labor ( 20,000 x $28 ) $560,000
Variable overhead ( 20,000 x $6 ) $120,000
Fixed overhead $160,000
Total Production Cost ($1,240,000)
Gross Profit $3,080,000
Selling and Admin Expenses
Variable Cost ( 20,000 x $18) $360,000
Fixed Cost $200,000
Total Period Cost ($560,000)
Operating Income $2,520,000
2. Income statement for the year
using Variable Costing
Selling price ( 20,000 x $216 ) $4,320,000
Direct materials ( 20,000 x $20 ) $400,000
Direct labor ( 20,000 x $28 ) $560,000
Variable overhead ( 20,000 x $6 ) $120,000
Variable Cost S&A ( 20,000 x $18) $360,000
Variable Production Cost ($1,440,000)
Contribution Margin $2,880,000
Fixed Cost
Production overhead cost $160,000
Fixed Cost S&A $200,000
($360,000)
Operating Income $2,520,000
Explanation:
Variable and absorption costing income statement have difference of treatment of Variable and Fixed costs as production cost and period cost.
Variable costing consider all variable costs as production cost and Absorption costing consider all the cost incurred in production either variable or fixed as production cost.
Cavy Company accumulated 580 hours of direct labor on Job 456 and 850 hours on Job 777. The direct labor was incurred at a rate of $15 per direct labor hour for Job 456 and $26 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production. If an amount box does not require an entry, leave it blank.
Answer:
$30,800
Explanation:
Dr Work in progress 30,800
Cr Wages payable 30,800
Direct labour hours × Per direct labour hour
Job 456
580×15 = 8700
Job 777
850×26= 22100
22,100 + 8,700 = 30,800
The journal entries to record the flow of labor costs into production for Job 456 and Job 777 at Cavy Company involve debiting the work in process for each job for the calculated labor costs and crediting Wages Payable for the total labor cost incurred.
The question asks to journalize the entry for the labor costs incurred on Job 456 and Job 777 at Cavy Company, incorporating direct labor hours and the rate per hour for each job. Thus, to record these transactions, we would use the information provided to calculate the total labor costs for each job. For Job 456, 580 hours of direct labor were incurred at a rate of $15 per hour. Calculating the total, 580 hours × $15/hour = $8,700. Similarly, for Job 777, 850 hours were incurred at $26 per hour, resulting in a total of 850 hours × $26/hour = $22,100.
To journalize these amounts into the production process:
Work in Process - Job 456 ............................ $8,700
Work in Process - Job 777 ............................ $22,100
Wages Payable .............................................. $30,800
This entry increases the work in process for each job, indicating that labor costs have been allocated to these jobs. The corresponding credit to Wages Payable reflects the obligation to pay for the direct labor used.
If a $150,000 balance in Deferred Tax Liability was computed by use of a 30% rate, the underlying cumulative temporary difference amounts to
Answer:
$105,000
Explanation:
Given:
Balance in deferred tax liabilities = $150,000
Rate of computing deferred tax liabilities = 30% = [tex]\frac{30}{100}[/tex] = 0.30
Cumulative temporary difference = ?
Computation of Cumulative temporary difference:
Temporary difference = Balance in deferred tax liabilities - (Balance in deferred tax liabilities × Tax rate)
= $150,000 - ($150,000 × 0.30)
= $150,000 - $45,000
= 105,000
Data for January for Bondi Corporation and its two major business segments, North and South, appear below:
Sales revenues, North $ 587,000
Variable expenses, North $ 340,600
Traceable fixed expenses, North $ 70,200
Sales revenues, South $ 453,200
Variable expenses, South $ 258,600
Traceable fixed expenses, South $ 58,600
In addition, common fixed expenses totaled $158,900 and were allocated as follows: $82,500 to the North business segment and $76,400 to the South business segment.
A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:
a.$93,700
b.$340,600
c.$176,200
d.$163,900
Answer:
c.$176,200
Explanation:
The questionis to determine the segment margin of the North Business Segment
Pitfall to note: the question contains data for both the North and the South Segments, as such, only the data relevant to the North Segment should be used for the calculation as follows:
Sales Revenue = $587,000
Subtract: Variable Exp. ($340,000)
COntribution margin $264,400
Subtract: Traceable Fixed ($70,200)
The Segment Margin $176,200 Option c
The segment margin for the North business segment in a contribution formatted segmented income statement is $176,200. We arrive at this figure by first calculating the contribution margin(discounting the variable expenses from the sales revenue) and then subtracting the traceable fixed expenses from this number.
Explanation:To ascertain the segment margin for the North business segment, we first gauge contribution margin which is subtracting the variable expenses from sales revenues. Thus, the contribution margin for North is $587,000 (sales revenues) - $340,600 (variable expenses) = $246,400. Next, we subtract traceable fixed expenses from this to arrive at the segment margin. The segment margin would, therefore, be $246,400 - $70,200 (traceable fixed expenses) = $176,200. Hence, the segment margin for the North segment under a contribution formatted segmented income statement is $176,200.
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A 16-year, 4.5 percent coupon bond pays interest annually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent?
Answer:
2.2% change in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent.
Explanation:
Face Value = $1,000
Coupon payment = 1000 x 4.5% = $45 annually
Number of periods = n = 16 years
Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Yield to maturity = 5.7%
Price of the Bond = $45 x [ ( 1 - ( 1 + 5.7% )^-16 ) / 5.7% ] + [ $1,000 / ( 1 + 5.7% )^16 ]
Price of the Bond = $876.18
Yield to maturity = 5.5%
Price of the Bond = $45 x [ ( 1 - ( 1 + 5.5% )^-16 ) / 5.5% ] + [ $1,000 / ( 1 + 5.5% )^16 ]
Price of the Bond = $895.38
Percentage Change = ( $895.38 - $876.18 ) / $876.18 = 2.2%
2.2% modification in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent.
Calculation of Percentage change
The Face Value is = $1,000
Then the Coupon payment is = 1000 x 4.5% = $45 annually
After that Number of periods = n is = 16 years
When the Price of bond is the present value of future cash flows, Then to calculate Price of the bond use following formula are:
Price of the Bond is = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Then Yield to maturity = 5.7%
The Price of the Bond is = $45 x [ ( 1 - ( 1 + 5.7% )^-16 ) / 5.7% ] + [ $1,000 / ( 1 + 5.7% )^16 ]
The Price of the Bond is = $876.18
Then Yield to maturity is = 5.5%
After that Price of the Bond is = $45 x [ ( 1 - ( 1 + 5.5% )^-16 ) / 5.5% ] + [ $1,000 / ( 1 + 5.5% )^16 ]
Then Price of the Bond = $895.38
Therefore, the Percentage Change is = ( $895.38 - $876.18 ) / $876.18 = 2.2%
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A manufacturing facility consists of eight departments (A, B, C, D, E, F, G, and H) and is to produce six components (1, 2, 3, 4, 5, and 6). Following are the product routings and production forecasts: Component Routing Production Forecast (E.U.L. per week)
1 A-B-G-H 20
2 A-C-D-H 25
3 A-D-E-F-H 20
4 A-B-C-E-H 30
5 A-B-C-D-H 15
6 A-E-F-G-H 5
a) Develop the FROM-TO chart [20]
b) Develop the VOLUME-BETWEEN chart [20]
Answer:
The answer is given in the attached file.
Explanation: