Answer:
The correct answer is letter "B": Administrative costs.
Explanation:
Administrative costs are those expenses incurred in a company and do not belong to the production or regular operations of the business. These are costs at the corporate level such as the salaries of senior executives or general services such as accounting, and contracting.
Suppose you can afford to invest $1,000 each month into an account that pays 15% per year. How many years will you need to make this monthly investment for your account to be worth $2,000,000?
Answer:
Explanation:
Rate per period =15% = 15/12 monthly
Payment(PMT)=$1,000
Future amaount(FV)=$2,000,000
N(years)=?
If input this data into fin calculator, n= 262.27months=262.27/12years=21.86years
To make $2,000,000 from a monthly investment of $1,000 at an interest rate of 15% per year, you would need to invest for approximately 47 years.
Explanation:To find out how many years you need to make the monthly investment of $1,000 for your account to be worth $2,000,000, we can use the formula for compound interest. The formula is:
A = P(1+r)^n
Where A is the future value of the investment, P is the monthly investment amount, r is the annual interest rate, and n is the number of years. In this case, A is $2,000,000, P is $1,000, and r is 15% per year. We need to solve for n:
$2,000,000 = $1,000(1+0.15)^n
Dividing both sides of the equation by $1,000, we get:
2,000 = (1.15)^n
Now we need to solve for n. Taking the natural logarithm of both sides of the equation, we get:
n ≈ log(2,000) / log(1.15)
Using a scientific calculator, we find that n ≈ 47.077.
Therefore, you would need to make the monthly investment for approximately 47 years for your account to be worth $2,000,000.
The following chart describes opportunities and challenges in the external environments that surround businesses. Which of the following statements best characterize and fit in the empty cells?
Answer:
Identity theft is a challenge in the technological environment of businesses, while the desire for green living presents opportunities for new businesses in the global environment.
Explanation:
Database present cannot be a challenge in the context of the global environment. Therefore, it is incorrect.
E-commerce, by no means, is a costly technology. It is a cost-effective technology. Therefore, it is also incorrect.
Identify theft is a challenge but war and terrorism cannot satisfy the global environment. So, it is wrong.
Identify theft is a challenge while green living presents opportunities for new businesses in the global environment. Therefore, it is the correct option.
A company invested $400,000 in a technology that reduced the overall costs of production by reducing their cost per unit from $2 to $1.85. Later, a manager has an opportunity to outsource production to another company at a cost per unit of $1.75. If you are the from $2 to should consider the $400,000 as a sunk cost, not relevant to the decision. O b should reduce his effort by ignoring any new developments and letting the production run as it is. O c. should ignore the $400,000 fixed cost. O d. Both A & C
Option D, Both A & C
Explanation:
A company invested $400,000 in a technology that reduced the overall costs of production by reducing their cost per unit from $2 to $1.85 . Later, a manager has an opportunity to outsource production to another company at a cost per unit of $1.75 . If you are the manager, you should consider the $400,000 as a sunk cost, not relevant to the decision and should ignore the $400,000 fixed cost.
Sunk cost is the cost which is already incurred in past and does not have any significance in decision making.
A sunk cost is already incurred in the fields of economy and business decision-making and can not be recovered. Sunk costs are contrasted with future costs, which can be avoided if measures are taken.
Year 1 Year 2 Amounts billed to clients for services rendered $ 182,000 $ 232,000 Cash collected from clients 154,000 184,000 Cash disbursements Salaries paid to employees for services rendered during the year 84,000 94,000 Utilities 27,000 34,000 Purchase of insurance policy 58,200 0 In addition, you learn that the company incurred utility costs of $32,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.
Required:
1. & 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.
2. Prepare an income statement for each year according to the accrual accounting model.
Answer:
Explanation:
Year 1:
Cash collected from clients $154,000
Salaries paid to employees for services rendered during the year $27,000
Utilities $84,000
Purchase of insurance policy $58,200
So, in order to find net cash flow, $(154000-27000-84000-58200)=-15200
Year 2:
Cash collected from clients $184,000
Salaries paid 34000
Utilities paid 94000
Insurance paid is 0
So, net cash flow $184000-$(34000+94000)=$56000
Year1 paid 27000 in salaries, accrued =32000
So still 5000 has to be paid in year 2
Year 2 paid 34000 ⇒ so accrued is 29000
Insurance accrued for each year is 58200/3=19400
Income statement for year 1 and 2
year1 year2
Revenue:
Income from services 182000 232000
Expense
Salary 84000 94000
Utilities 32000 29000
Insurance 19400 19400
Net income 46600 89600
Answer:
i. operating income for year 1 = -$15200 and year 2 = $56000
ii. income statement for year 1 =$47000 and year 2 = $89600
Explanation:
operating income shows the financial performance of a business or company. it is the difference between total operating income and total operating expenses. Base on the financial information above, the operating income for year 1 and year 2 can be calculated as:
OPERATING INCOME FOR YEAR 1 AND YEAR 2
year 1 year 2
$ $
Revenue(cash received from clients 154000 184000
less operating expenses:
salaries paid 84000 94000
utilities 27000 34000
purchased insurance policy 58200 0
net operating income -15200 56000
ii. INCOME STATEMENT FOR YEAR 1 AND YEAR 2
year 1 year 2
$ $
Revenue from service 182000 232000
less total expenses:
salaries 84000 94000
utilities 32000 29000
insurance 19400 19400
net income 46600 89600
NOTE: utility cost incurred in year 1 was $32000 but utility actually paid for in year 1 is $27000 which means there is an accrued utility of $5000. in income statement, the 5000 accrued utilities is added to year 1 utilities of 27000 to make up the 32000 and this 5000 accrued utilities is deducted from year 2 utilities of 34000 to arrive the 29000 used in income statements.
A product that is very labor intensive assembled at Boyds Aero Structure in Memphis has an average labor cost of $20/hr.
Overhead expenses are charged at 100% of labor at this company
Time for the very first unit is 10 hours
Time for the fourth unit is 8.1 hours
The learning curve percentage for this operation is
A. 90%
B. 85%
C. 90%
D. 95%
Answer:
correct answer for learning curve percentage is A. 90%
Explanation:
given data
average labor cost = $20/hr
Time 1st unit = 10 hours
Time 4th unit = 8.1 hours
solution
we apply here formula for learning curve that is
Time (x) units = Time 1st unit × [tex]x^{\frac{ln\ leaning\ rate }{ln\ 2}}[/tex]
so
time 4th unit = Hours 1st unit × [tex]4^{\frac{ln\ leaning\ rate }{ln\ 2}}[/tex]
8.1 = 10 × [tex]4^{\frac{ln\ leaning\ rate }{ln\ 2}}[/tex]
ln 0.81 = [tex]{\frac{ln\ leaning\ rate }{ln\ 2}}[/tex] × ln 4
solve it we get
learning rate = 90%
so correct answer is A. 90%
The learning curve percentage for this operation is approximately 9.16%.
The learning curve percentage for a specific operation represents the rate at which the labor hours required to produce a unit decrease as more units are produced. The learning curve is typically expressed as a percentage reduction in labor hours per unit. In this case, we have two data points:
1. Time for the very first unit is 10 hours.
2. Time for the fourth unit is 8.1 hours.
We can use these data points to calculate the learning curve percentage using the following formula:
Learning Curve Percentage = 100 - (Log(Time for n) / Log(Time for 1)) * 100
Where:
- Time for n is the time required for the nth unit.
- Time for 1 is the time required for the first unit.
In our case:
- Time for the fourth unit (Time for n) is 8.1 hours.
- Time for the very first unit (Time for 1) is 10 hours.
Let's calculate the learning curve percentage:
Learning Curve Percentage = 100 - (Log(8.1) / Log(10)) * 100
Learning Curve Percentage ≈ 100 - (0.9084 / 1) * 100
Learning Curve Percentage ≈ 100 - 90.84
Learning Curve Percentage ≈ 9.16%
So, the learning curve percentage for this operation is approximately 9.16%. Therefore, none of the options A, B, C, or D provided in the question is correct. The correct learning curve percentage is approximately 9.16%.
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Kyle Parker of Concord, New Hampshire, has been shopping for a new car for several weeks. He has negotiated a price of $38,000 on a model that carries a choice of a $2,500 rebate or dealer financing at 2 percent APR. The dealer loan would require a $1,000 down payment and a monthly payment of $649 for 60 months. Kyle has also arranged for a loan from his bank with a 4 percent APR. Use the Run the Numbers worksheet to advise Kyle about whether he should use the dealer financing or take the rebate and use the financing from the bank. Round your answer to two decimal places.
Adjusted APR (dealer financing):______ %
Kyle should use . (the dealer financing or the financing from the bank)
To advise Kyle on whether he should use the dealer financing or take the rebate and use the financing from the bank, we compare the costs of the two options. The adjusted APR for the dealer financing is 1.92%, which is lower than the financing from the bank. Therefore, Kyle should use the dealer financing option.
Explanation:To advise Kyle on whether he should use the dealer financing or take the rebate and use the financing from the bank, we need to compare the costs of the two options. Here's how we can calculate the adjusted APR for the dealer financing and determine which option is more advantageous:
Dealer Financing:Calculate the total cost of the loan from the dealer by multiplying the monthly payment by the number of months: $649 * 60 = $38,940.Calculate the effective loan amount by subtracting the down payment from the negotiated price: $38,000 - $1,000 = $37,000.Find the monthly interest rate by dividing the APR by 12: 2% / 12 = 0.1667%.Calculate the monthly interest paid by multiplying the loan amount by the monthly interest rate: $37,000 * 0.1667% = $61.67.Calculate the adjusted monthly payment by adding the monthly interest to the original monthly payment: $649 + $61.67 = $710.67.Calculate the adjusted APR by dividing the adjusted monthly payment by the effective loan amount: ($710.67 / $37,000) * 100 = 1.9219%.Bank Financing:Calculate the monthly interest rate by dividing the APR by 12: 4% / 12 = 0.3333%.Calculate the monthly interest paid by multiplying the loan amount by the monthly interest rate: $37,000 * 0.3333% = $123.32.Calculate the adjusted monthly payment by adding the monthly interest to the original monthly payment: $649 + $123.32 = $772.32.Based on the calculations, the adjusted APR for the dealer financing is 1.92%. Therefore, Kyle should use the dealer financing option as it offers a lower adjusted APR compared to the financing from the bank.
Abby received requests from three families to babysit a toddler for four hours on Friday night. She can only babysit for one of the three families. The Fleming family offered her $20, the Gilbert family offered her $30, and the Lewis family offered her $40. If Abby chooses to babysit for the Lewis family her opportunity cost of this decision is:a. $50.b. $30.c. $20.d. $40.
Answer:
The correct answer is letter "B": $30.
Explanation:
Opportunity cost is the return of an option taken over the return of the option forgone. It represents what is obtained with the choice taken in terms of the choice dismissed. Opportunity cost is also defined as the best next alternative left behind after choosing another.
In Abby's case, she chose to babysit The Lewis' toddler who will pay her $40. The best next alternative was The Gilbert's who offered $30. Thus, those $30 represent Abby's opportunity cost of babysitting The Lewis' child.
Burma has significant quantities of high quality ______, but corruption has prevented the income from these resources from benefiting the country as whole.
Answer:
precious gems
Explanation:
It is known as pigeon blood for its pure red color and without spots, has a value superior to diamond and has captivated the royal courts of the world for eight centuries. Miners in the Mogok Valley look for the coveted gemstone among tons of mud, working from dawn to dusk for a pay that, when it arrives, does not always do so in the form of money. "Heroine," says teaching his toothless mouth Mahn Win Maung, a miner who has been working in these quarries for two years. "Sometimes they pay in heroin."
The drug payment guarantees that the workers will return the next day to extract the rubies that finance the Burmese dictatorship, enslave thousands of workers and decorate the necks of the elite ladies in the salons of Tokyo, Milan or New York. The fate of pigeon blood could no longer contrast with its origin: poverty, AIDS, drugs and the state of semi-slavery turn the Ruby Valley, surrounded by the mountains of the border of the state of Shan, into a place taken from another time.
Ruby is a precious stone that appears in the nature of different sizes and shapes, so it offers a great possibility when carved.
Its hardness is only lower than that of the diamond which makes it one of the most resistant gemstones. In addition, as it does not have splits, it is very difficult to suffer breakages.
Ruby is a type of red corundum; those that are blue are known as sapphires, so we can actually deduce that rubies and sapphires are practically the same stones except for their color.
Burma has vast reserves of precious gemstones like rubies and jade, but widespread corruption funnels profits to military rulers, stifling economic development. These circumstances, along with a strong military grip on lucrative trades and China's economic support, render Burma one of Southeast Asia's poorest countries.
Burma has significant quantities of high quality precious gemstones such as rubies, sapphires, and jade. Despite the fact that rubies, in particular, could bring in substantial income—considering that Burma produces about 90 percent of the world's supply—corruption has prevented these riches from benefiting the country as a whole. Most notably, the profits from gem sales primarily go to Burma's military rulers, contributing to limited economic development for the population and deterring foreign investment.
Corruption on the governmental level, alongside mismanagement within the business sector, has made Burma one of the poorest countries in Southeast Asia. The country's main income-generating enterprises, including the gem trade and the lucrative drug trade from the opium-growing region of the northern Golden Triangle, are largely controlled by the military. This control has also led to an increase in opium production in recent years.
China has emerged as the main trading partner and supporter of Burma's military regime, supplying arms, infrastructure projects, and natural gas, further setting the stage for the continued authoritarian rule and stifled economic progress.
g 1)Which of the following strategies are used by business firms to capture consumer surplus?1)A)Two-part tariffsB)Price discriminationC)BundlingD)all of the above
Answer:
D)all of the above
Explanation:
All these are due to increase the producer surplus rather than consumer surplus. Now let's look what these variants actually mean:
1) Price discrimination is a price policy in which at the same moment the same product or service is sold to different customers at different prices, and this difference in price is not justified by the different costs of producing this product or service.
Types of price discrimination according to the classification types of seller behavior:
-Individual discrimination (seller selects individual buyers)
-Group discrimination (seller identifies groups of buyers)
-Product discrimination (seller selects individual products)
2) In industrial economics, the two-tier tariff (or two-part tariff) is a price made up of a fixed part (a subscription or a franchise) and a part proportional to the quantity of goods purchased. The binomial tariff is widely used in industrial organization because it constitutes the simplest case of price which is not linear compared to the quantity of goods purchased. Furthermore, it can be shown that when the information is not too incomplete, it allows a principal to avoid the problem of double marginalization (the fact that an economic agent in a monopoly situation sets a higher price than that resulting from the confrontation of supply and demand in perfect competition, which allows it to maximize its profit.
3)Bundling is a bundle consisting of several products sold as a unit. Especially common in the gaming industry.
Typical and most popular bundles are the so-called game kits:
-Game console + video game
- Video card (or motherboard) + computer game
A set of games sold as a unit by a set at a fixed price, or by the principle “Pay what you want” for a limited time. In customs practice, the concept of bundles is used to refer to packaging (place) in a container. Then it can be a box (box), a pallet of goods or a bundle. Usually a bundle is an indivisible part, united either by a box (bag, box) or fixed on a pallet.
Jessie is considering breaking up with Taylor. Taylor is becoming withdrawn and sullen, and their relationship is deteriorating. When her friends encourage her to make the break, Jessie replies, "Taylor's a lot of work right now—more than I'm getting out of the relationship. But we've been together for five years, and we have a lot of really good history. It'd be a shame to throw those good years away. I'm just going to have to stick it out." What type of analysis is Jessie likely using to arrive at her decision? Group of answer choices Market analysis. Value analysis. Marginal analysis. Cost-benefit analysis.
Answer:
The correct answer is letter "C": Cost-benefit analysis.
Explanation:
The cost-benefit analysis is a method used to make business and economic-based decisions. The cost-benefit analysis can be used to judge a single option or compare two or more options to select the optimal alternative. The cost-benefit analysis consists of estimating all the costs of a particular decision then comparing them to the estimated benefit of that decision.
Jessie is using the cost-benefit analysis because she is determining the cost of what she could lose in front of the benefit of what she still could get with her relationship with Taylor based on what they have already experienced.
Bravo's complete assets and liabilities are Accounts Receivable $800, Equipment $10,000, Accounts Payable $4,200, Prepaid Rent $2,000, Supplies $400, Bank Loan $1,600, and Tools $300. Bravo's total assets are:________. (All account balances are normal.)
Answer:
Total Assets=$13,500
Explanation:
Assets are items which are used by any company or firm for positive economic value production.
In our problem, we have to find total assets.
Given Data:
Accounts Receivable=$800
Equipment=$10,000
Accounts Payable=$4,200
Prepaid Rent=$2,000
Supplies=$400
Bank Loan=$1,600
Tools= $300
Total Assets=Accounts Receivable+Equipment+Prepaid Rent+Supplies+ Tools
Total Assets=$800+$10,000+$2,000+$400+$300
Total Assets=$13,500
9. Assume that you just won $35 million in the Florida lottery, and hence the state will pay you 20 annual payments of $1.75 million each beginning immediately. If the rate of return on securities of similar risk to the lottery earning (e.g, the rate on 20 year US Treasury bonds) is 6 percent, what is the present value of your winning
The present value of your $35 million lottery winnings, paid out over 20 years with a 6% annual rate of return, is approximately $20.91 million.
Explanation:The question is asking for the present value of your $35 million lottery winnings given a 6% annual return on investment, which will be paid out in 20 annual payments of $1.75 million each. The formula we're going to use is the formula for the present value of an annuity: PV = PMT * [(1-(1+r)^-n)/r]. In this case, PMT equals $1.75 million, r represents the return rate which is 0.06, and n is the number of years, which is 20.
Let's plug these values into the formula: PV = 1.75 * [(1 - (1+0.06)^-20) / 0.06]. After calculating, we find that the present value of this annuity is approximately $20.91 million.
This means that if you were to invest an amount of $20.91 million in securities with a similar risk profile as the lottery, at an interest rate of 6%, you would receive the same amount of money over the 20 year period as your lottery winnings.
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Develop a two-period weighted moving average forecast for periods 12-15.
Use weights of 0.7 and 0.3. with the most recent observations weighted higher.
Period Demand
10 274
11 320
12 426
13 294
14 473
Calculate the forecasts for periods 12-15 by using a two-period weighted moving average model.
Period Demand Forecast
10 274
11 320
12 426
13 294
14 473
15
Answer:
Period Forecast
12 306.2
13 394.2
14 333.6
15 419.3
Explanation:
Weights
Period Demand older 0.3 recent 0.7 Forecast
10 274
11 320
12 426 82.2(274 x 30%) 224(320 x 70%) 306.2
13 294 96(320x30%) 298.2(426x70%) 394.2
14 473 127.8(426x30%) 205.8(294x70%) 333.6
15 88.2(294x30%) 331.1(473x70%) 419.3
From the given infroamtion period n forecast will be:
(n-1) x 70% + (n-2) x 30%
Period 13 = Period 12 x 70% + Period 11 x 30%
In order to calculate forecasts using a two-period weighted moving average, weights are given to most recent observations. In this particular example, the weights of 0.7 and 0.3 are given. After calculating, forecast for period 12 is 318, for period 13 is 391.8, for period 14 is 312, and for period 15 is 414.3.
Explanation:The process of calculating forecasts using a two-period weighted moving average involves applying certain weights to the most recent periods. In this specific case, you've stated that the weights are 0.7 for the most recent observation and 0.3 for the older observation. Let's calculate the forecasts:
Forecast for period 12, which uses data from periods 10 and 11, would be calculated as (0.7*320) + (0.3*274) = 318.Similarly, the forecast for period 13, which uses data from periods 11 and 12, would be as (0.7*426) + (0.3*320) = 391.8.The forecast for period 14, using data from periods 12 and 13, would be (0.7*294) + (0.3*426) = 312.Finally, the forecast for period 15, using data from periods 13 and 14, would be (0.7*473) + (0.3*294) = 414.3.Learn more about Weighted Moving Average here:https://brainly.com/question/32275991
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Suppose you bought 200 shares of stock at an initial price of $52 per share. The stock paid a dividend of $0.44 per share during the following year, and the share price at the end of the year was $36. What is the percentage capital gains yield
Answer:
We can find the capital gains yield from the following formula:
Capital Gains Yield = Increase or decrease in the share price divided by Original cost of the shares when purchased
By putting values
Capital Gains Yield = ($52 - $36)/$52 = -30.7%
Explanation:
We can see that there is a decrease in the share price and this is also evident form the capital gains yield formula.
Your clients, Adam and Amy Accrual, have a 21-year-old daughter named April. April is single and is a full-time student studying for her bachelor’s degree in accounting at California Poly Academy (CPA) in Pismo Beach, California, where she lives with her roommates year-round. Last year, April worked at a local bar and restaurant four nights a week and made $18,000, which she used for tuition, fees, books, and living expenses. Her parents help April by sending her $300 each month to help with her expenses at college. This is all of the support given to April by her parents. When preparing Adam and Amy’s tax return, you note that they claim April as a dependent for tax purposes. Adam is insistent that they can claim April because of the $300 per month support and the fact that they "have claimed her since she was born." He will not let you take April off his return as a dependent. Would you sign the Paid Preparer’s declaration (see example above) on this return? Why or why not?
Solution:
For order to apply to a child as a minor, the child must be either under the age of 19 or under the age of 24.
If the taxpayer or his spouse is deemed dependent on another tax return, the standard deduction which can be granted on the return of the taxpayer is usually limited to the higher of:
1. $1,050 or
2. The individual's earned income for the year plus $350(subject to standard deduction amount of $6,350, in general)
Here while preparing the tax returns of Adam and Amy, they have included April as a dependent. Therefore,April can be taken as a dependent in the tax return since April is still living on the support of her parents. But Adam can get standard deduction as limited as per the law in the return, disclosing April's income.
The standard deduction available is higher of
1. $1,050 or
2. $18,000+$350 but subject to $6,350
Therefore Adam can get a deduction of $6,350.
Adam and Amy Accrual may not claim their daughter April as a dependent if she provided more than half of her own support, which appears likely given her earnings compared to the support they provided. The preparer must ensure the return is accurate and may need to discuss legal obligations and consequences of incorrect claims with the client.
When it comes to claiming April as a dependent on Adam and Amy Accrual's tax return, several IRS tests must be met to determine whether she qualifies. One of the key factors includes the amount of support provided. If April provided more than half of her own support through her earnings, then Adam and Amy may not have the right to claim her as a dependent. Considering April made $18,000 and only received $3,600 ($300 per month) from her parents, it seems she provided over half of her support. Further analysis on whether April meets the age, relationship, residency, and joint return tests, as well as the support test and income considerations, would be necessary to make a definitive decision. As a tax preparer, one must ensure to the best of their knowledge that the information on the tax return is correct. If Adam refuses to accurately represent April's dependency status, you should consider discussing the situation with them, clarifying their legal obligations, and the consequences of incorrect claims. Ultimately, if you cannot reconcile the situation with accurate tax law, it would be inappropriate to sign the tax return as the preparer.
Measuring a company's business transactions and communicating those measurements for decision-making purposes in the form of financial statements are two key functions of financial accounting. The full set of procedures used to accomplish both of these key functions is called the:
Answer:
Accounting cycle.
Explanation:
The accounting cycle can be defined as the process that an organization identifies, analyzes and records its accounting events.
This process occurs from the moment a financial transaction is carried out, and is concluded as soon as a certain transaction is included in the company's financial statements.
Every financial statement of a company must present some characteristics, they must be based on compliance and precision, for this there is a set of rules called the accounting cycle.
Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Workin Process Balance on 3/1Job 33 $ 6,000Job 34 3,600$ 9,600Source documents revealed the following during March: Materials Requisitions Forms Labor TimeTickets Status of Job at Month-EndJob 33 $ 2,800 $ 5,900 Completed and soldJob 34 2,300 4,000 Completed, but not soldJob 35 3,600 3,800 In processIndirect 800 2,000 $ 9,500 $ 15,700 The company applies overhead to products at a rate of 55 percent of direct labor cost.Required:Prepare journal entries to record the materials requisitions, labor costs, and applied overhead. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)1Record the issuance of raw materials to production.2Record Oak Creek Furniture Factory’s payroll costs. Assume the direct labor is owed but not paid.3Record the application of manufacturing overhead to production.
The cost of manufacturing each product is calculated using the job order technique of pricing.
The journal entries are provided in the image attached below:
This costing method is typically used when the producer has to determine the cost of performing a specific task while producing a number of items that differ from one another. Direct labor, direct supplies, and manufacturing overhead are all included in the task costing process.
The profitability of a job can be ascertained via job order costing. It aids the business in estimating the cost of the materials, labor, and overhead that will be incurred when carrying out that specific job.
Effective job order costing enables businesses to provide quotations that are affordable enough to be appealing to customers while maintaining a profit margin.
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Final answer:
To prepare the journal entries for Oak Creek Furniture Factory (OCFF), you need to record the materials requisitions, labor costs and applied overhead. The journal entries are provided with detailed explanations.
Explanation:
To prepare the journal entries for Oak Creek Furniture Factory (OCFF), we need to record the materials requisitions, labor costs and applied overhead. Here are the journal entries:
Issuance of raw materials to production:
Debit Work in Process - Job 34 for $3,600 (materials requisitioned for Job 34)
Credit Raw Materials Inventory for $3,600 (cost of raw materials used for Job 34)
Record payroll costs:
Debit Work in Process - Job 34 for $2,300 (labor costs for Job 34)
Debit Manufacturing Overhead for $800 (indirect labor costs)
Credit Wages Payable for $2,300 (amount owed for direct labor)
Credit Accrued Payroll for $800 (amount owed for indirect labor)
Application of manufacturing overhead to production:
Debit Manufacturing Overhead for $4,180 (55% of direct labor cost for Job 34)
Credit Work in Process - Job 34 for $4,180 (applied overhead to Job 34)
Suppose the price of eggs decreases from $5 per dozen to $4 per dozen. According to the law of –, we should expect the – to increase.
Answer:
Demand; Quantity Demanded
Explanation:
According to the law of demand,
Law states that there is a negative or inverse relationship between the price of the good and the quantity demanded for that good which means that an increase in the price of a good will result in a fall in quantity demanded for that good and a decrease in the price level of the good will result in an increase in the quantity demanded for that good.
In our case, the price of eggs falls from $5 per dozen to $4 per dozen then as a result there is an increase in the quantity demanded for the eggs.
Final answer:
The law of demand states that a decrease in the price of a good leads to an increase in the quantity demanded. When the price of eggs drops from $5 to $4 per dozen, the quantity demanded is expected to increase as consumers are more willing to purchase at the lower price.
Explanation:
According to the law of demand, when the price of a good decreases, the quantity of the good demanded increases. This principle is based on the tendency of consumers to purchase more of a good when its price is lower if all other factors remain constant. Therefore, when the price of eggs decreases from $5 per dozen to $4 per dozen, we should expect the quantity demanded to increase.
In economic terms, the decrease in the price of eggs leads to a movement along the demand curve to the right, indicating a higher quantity demanded. This concept is essential in understanding how markets reach equilibrium. When there is a price change, it affects both consumer behavior (demand) and producer behavior (supply), creating movements toward a new equilibrium if nothing else changes.
Using the coffee example, when the price of coffee is lowered to $2, the quantity demanded increases, but with the incentive for producers to produce lessening, a shortage or disequilibrium may occur. On the other hand, if the price of coffee increases to $7 per pound, the new equilibrium leads to a lower quantity demanded. In the case of the eggs, the lower price will likely lead to more eggs being demanded by consumers.
If we were able to invest a Gradient = $100 at the end of each year for 7 years at 6% interest (i.e., So at the end of year 1, $100 at the end of year 2, $200 at the end of year 3, ..., and $600 at the end of year 7), what Annual amount or Annuity could we take out of the bank starting at the end of the first year and continuing until the end of the seventh year?
Answer:
We can withdraw an equivalent annuity of $ 293.658 each year.
Explanation:
We build a scheduled table to know the future value of the gradient investment
Time Beg Gradient Total Rate Ending
1 $100.00 $100.00 $100.00 0.060 $106.00
2 $106.00 $100.00 $206.00 0.060 $218.36
3 $218.36 $200.00 $418.36 0.060 $443.46
4 $443.46 $300.00 $743.46 0.060 $788.07
5 $788.07 $400.00 $1,188.07 0.060 $1,259.36
6 $1,259.36 $500.00 $1,759.36 0.060 $1,864.92
7 $1,864.92 $600.00 $2,464.92 0.060 $2,612.81
Then, we solve for the equivalent annuity-due:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate}(1+rate) = C\\[/tex]
PV 2,613
time 7
rate 0.06
[tex]2612.81 \div \frac{1-(1+0.06)^{-7} }{0.06}(1+0.06) = C\\[/tex]
C $ 293.658
Itis annuity due as we will going to retire cash in a 6 year period for seven times. (at each year-end during 6 years thus, annuity-due
1st 2nd 3rd 4th 5th 6th 7th
/-------/-------/-------/-------/-------/-------/-------/
1 2 3 4 5 6 7
At the end of year 7, we could $276.75 as Annuity amount out of the bank starting at the end of the first year and continuing until the end of the seventh year.
To determine the annual amount or annuity we could withdraw from the bank given the gradient investment scenario, we need to find the present value of the gradient series and then convert it to an annuity.
Determine the Future Value (FV) of the Gradient Investment, the formula for the future value of a gradient series is given by:
[tex]FV = G * [( (1 + r)^n - 1 - nr ) / r^2 ][/tex]Where:
G = Initial Gradient Amount ($100)r = Interest Rate (6% or 0.06)n = Number of Periods (7 years)Plugging in the values:
[tex]FV = 100 * [ ((1 + 0.06)^7 - 1 - 7*0.06) / 0.06^2 ][/tex]Calculate the individual terms:
a. Calculate [tex](1 + r)^n[/tex]:
[tex](1 + 0.06)^7 = 1.503630[/tex]b. Calculate [tex](1 + r)^n - 1[/tex]:
[tex]1.503630 - 1 = 0.503630[/tex]c. Calculate nr:
[tex]7 * 0.06 = 0.42[/tex]d. Calculate [tex]( (1 + r)^n - 1 - nr )[/tex]:
[tex]0.503630 - 0.42 = 0.08363[/tex]e. Calculate [tex]r^2[/tex]:
[tex]0.06^2 = 0.0036[/tex]f. Calculate the fraction:
[tex]0.08363 / 0.0036 = 23.2306[/tex]Calculate the Future Value (FV):
[tex]FV = 100 * 23.2306 = 2323.06[/tex]Convert the Future Value to an Annuity (A):
The formula for converting a future value to an annuity is given by:[tex]A = FV * [ r / ( (1 + r)^n - 1 ) ][/tex]Plugging in the values:
[tex]A = 2323.06 * [ 0.06 / ( (1 + 0.06)^7 - 1 ) ][/tex]Calculate the individual terms:
a. Calculate [tex](1 + r)^n:[/tex]
[tex](1 + 0.06)^7 = 1.503630[/tex]b. Calculate [tex]( (1 + r)^n - 1 ):[/tex]
[tex]1.503630 - 1 = 0.503630[/tex]c. Calculate the fraction:
[tex]0.06 / 0.503630 = 0.119142[/tex]Calculate the Annuity (A):
[tex]A = 2323.06 * 0.119142 = 276.75[/tex]So, the annual amount or annuity that can be withdrawn from the bank at the end of each year for 7 years is approximately $[tex]$276.75.[/tex]Sometimes employees have different opinions about how things should be done, or simply have a personality conflict, and then Candace fulfills the ____________ role of management, resolving the dispute. This is part of the ____________ component.
Answer:
Disturbance Handler
Decisional
Explanation:
Sometimes employees have different opinions about how things should be done, or simply have a personality conflict, and then Candace fulfills the disturbance handler role of management, resolving the dispute. This is part of the decisional component
An Investment has the following cash flow series where interest is 8 percent.
End of Year---> 0,1,3,4,5,6,7,8
Cash Flow--> $300, $300, $600, -$500, -$300, $0, $800, $700, $600
A) Determine the present worth of the series.
B) Determine the future worth of the series at the end of year 8.
C) Find the worth of the series at the end of year 2.
Please show work. Not a chart from excell.
Answer:
Present value: 1711.49
At the end of year two: 1,273.92
At the end of the 8th year: 3167.86
Explanation:
We will use the value of present value of a lump sum on each cash flow, then add them all together for the present value.
Example for 6th Year
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 800.00
time 6.00
rate 0.08000
[tex]\frac{800}{(1 + 0.08)^{6} } = PV[/tex]
PV 504.1357
Year // Cashflow // Discounted cash flow
0 300 300
1 300 277.78
2 600 514.40
3 -500 -396.92
4 -300 -220.51
5 0 0
6 800 504.14
7 700 408.44
8 600 324.16
1711.49
For future value, we will adjust using the future value of a lump sum:
Again, using the 6th year as example:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal 800.00
time 2.00 (it capitalize trought 7th and 8th years)
rate 0.08000
[tex]800 \: (1+ 0.08)^{2} = Amount[/tex]
Amount 933.12
Year // Cashflow // Future value
0 300 555.28
1 300 514.15
2 600 952.12
3 -500 -734.66
4 -300 -408.15
5 0 0
6 800 933.12
7 700 756
8 600 600
3167.86
At the end of 2nd year:
Year // Cashflow // Future value
0 300 349.92
1 300 324
2 600 600
Total 1,273.92
The present worth, future worth, and end of year 2 worth of the cash flow series are calculated by using time value of money principles such as discounting and compounding, utilizing the relevant interest rate to adjust cash flows to the desired year.
Explanation:The subject of the question is the calculation of the present and future worth of a cash flow series. The financial concept of time value of money is used, which involves discounting future cash flow to the present or compounding it to the future. The formula to calculate present worth is PV = FV / (1 + r)n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of years. Similarly, to calculate future worth, the formula is FV = PV * (1 + r)n.
A) The present worth of the series is calculated interesting each cash flow back to year zero, summing them up.
B) The future worth is calculated by compounding each cash flow to the end of year 8, then summing them.
C) The worth of the series at the end of year 2 is calculated by discounting cash flows after year 2 back to year 2, and compounding cash flows before year 2 up to year 2, then summing.
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Big John's Manufacturing Company currently produces its lead product on an "Old Machine" that has a variable cost of $0.32 per unit, and a fixed cost of $75,000. Big John is considering purchasing a "New Machine" that will drop the variable cost to $0.28 per unit, but has a fixed cost of $150,000. The crossover point for these two processes is 1,875,000 units. Referring to Scenario 1 above, which process is the most cost effective for a volume of 460,025 units?
Answer:
Old machine is more cost effective
Explanation:
Data provided in the question:
Variable cost for old machine = $0.32 per unit
Variable cost for new machine = $0.28 per unit
Fixed cost for old machine = $75,000
Fixed cost for new machine = $150,000
crossover point = 1,875,000
For a volume of 460,025 units
Now,
For old machine
Total variable cost = 460,025 × $0.32
= $147,208
Thus,
Total cost =Total variable cost + Fixed cost
= $147,208 + $75,000
= $222,208
For the new machine
Total variable cost = 460,025 × $0.28
= $128,807
Thus,
Total cost =Total variable cost + Fixed cost
= $128,807 + $150,000
= $278,807
Since,
total cost for old machine is low
hence,
Old machine is more cost effective
You deposit $1,000 in your bank account. (LO5-1) a. If the bank pays 4% simple interest, how much will you accumulate in your account after 10 years? b. How much will you accumulate if the bank pays compound interest?
Answer:
Simple interest - $1,400
Compound interest - $1,480.24
Explanation:
Simple interest is the interest earn only on he principal invested.
For example, with a rate of 10% simple interest, if I invest $10,000 for 2 years. Then my interest will be:
SI = 10,000 × 10% × 2 = $200
Accumulated amount can be calculated using this formula:
F.V = P + (P R × T)
FV = 10,000 + (10,000× 10% × 2)
= 10,200
Compound Interest: Under this arrangement, both the principal and interest would earn interest. Unlike the simple, any interest themselves would earn interest so far they are not withdrawn.
To compute compound interest
Year 1 = 10000 ×10% = 100
Year 2 = (10000×10%) + (100 ×10%) = 110
Total interest = 100 + 110 = 210
Note that the interest in year 2 is higher for compound interest than for simple interest.
Accumulated amount for compound interest is done as follows:
F.V = P × (1+r)^n
So lets apply this these concepts to our question:
a) Simple interest:
Accumulated amount(Future Value) :
F.V = P + (P × R × T)
F.V = $1000 + (1000 × 4% × 10)
= $1,400
b) Compound Interest
F.V = P × (1+r)^n
F.V = 1,000 × (1+0.04)^10
= $1480.24
After 10 years with a $1,000 deposit at 4% simple interest, you will have $1,400. With compound interest, you will accumulate $1,480.
Accumulate in your bank account after 10 years with a $1,000 deposit at 4% simple interest, you use the formula for simple interest: P = P₀+ (P₀ times r times t), where P is the future value of the investment/loan, including interest, P₀ is the principal amount (the initial amount of money), r is the annual interest rate (decimal), and t is the time the money is invested or borrowed for, in years. Applying the values, we find:
P = $1,000 + ($1,000 times 0.04 times 10) = $1,000 + $400 = $1,400. Therefore, after 10 years, you will have $1,400 in your account with simple interest.
For compound interest, we use a different formula: P = P₀ times (1 + r)ⁿ, where n is the number of times that interest is compounded per unit t. If the interest is compounded annually, we assume n to be the same as t. Using the same values but applying the compound interest formula:
P = $1,000 times (1 + 0.04)10 = $1,000 times 1.48 = $1,480. Thus, with compound interest, you will have $1,480 in your account after 10 years.
Vang Corp.'s stock price at the end of last year was $38 and its earnings per share for the year were $2.30. What was its P/E ratio? Select the correct answer. a. 16.52 b. 16.82 c. 15.92 d. 16.22 e. 15.62
Answer:
a. 16.52
Explanation:
The P/E ration is the ratio of an entity's share price to the earnings per share. It is a measure used to measure the accuracy of the valuation of one company's share with another.
Given;
Share price = $38
Earnings per share = $2.30
P/E ratio = share price/earnings per share
= $38/$2.30
= 16.52
Option a.
It is easier to implement, back up, and recover keys in a:
a. Centralized infrastructure
b. Decentralized infrastructure
c. Hybrid infrastructure
d. Peer-to-peer infrastructure
Answer:
a. Centralized infrastructure
Explanation:
The advantage of using a centralized infrastructure for key generation it is easier to implement, back up, and recover keys
Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $ 4,800 Salaries expense 1,900 Accounts payable 2,800 Retained earnings 4,200 Utilities expense 1,200 Supplies 13,200 Service revenue 8,700 Common stock 5,400 Required: Use only the appropriate accounts to prepare an income statement.
Answer:
Service revenue $8,700
Less: Expenses
Salaries expense $1,900
Utilities expense $1,200
Total expense (subtract from Service revenue ) -$3100
Net Income (Service revenue -Total expense) = $5,600
Explanation:
First Make the list of given quantities:
Cash=$4,800
Salaries expense=$1,900
Accounts payable=$2,800
Retained earnings=$4,200
Utilities expense=$1,200
Supplies=$13,200
Service revenue=$8,700
Common stock=$5,400
Income statement is as follow:
Only Service revenue and expenses are used to find the net income.
Service revenue $8,700
Less: Expenses
Salaries expense $1,900
Utilities expense $1,200
Total expense (subtract from Service revenue ) -$3100
Net Income (Service revenue -Total expense) = $5,600
When determining how much help is needed to write the business plan an entrepreneur should conduct a self-assessment.
In this self-assessment which skill set would not be considered?
Select one:
a. product design
b. organizing
c. venture capital
d. people management
Answer:
The correct answer is letter "C": venture capital.
Explanation:
While determining a business plan individually, managers must portrait all the situations in which the business will be handled, since the beginning until the company is up and running. Managers must consider what product or service will be offered, what the production process will be and how it is going to be organized. Besides, what kind of labor hand will be necessary according to the business. If accurate, the business plan will be put into practice.
The process of investing itself is not necessary at this stage, so the venture capital is not going to be needed yet when only making the business plan.
A politician is interested in the proportion of voters in his district who think he is doing a good job.
True/False
A politician should be interested in the proportion of voters in his district.
The answer is true.
Explanation:
This is not only true for politician but also for any job which involves voting.
A person / leader will be recognized, if he
look into the welfare of the societytakes measure when problem occursis easily accessible to the publiclend his ears to the problemsprovides an unbiased approachhe is interested in doing serviceobeys lawsBut it does not mean that, the person who got victory in the election has done good job in the previous service period. There are many factors that decide the polling of vote.
What is the most important difference between a corporation and all other organizational forms?
Answer:
Separate legal entity and taxation process
Explanation:
In a corporation, unlike in other forms of business, the owners and business are treated separately under the law. This principle is referred to as separate legal entity concept.
So for any contracts or deals entered into by a corporation, the owners cannot be held personally liable or asked to make good the losses incurred due to entering into those contracts unless of course if owners acted with mala fide intentions to earn personal profits. In short, owners personal assets cannot be taken away.
Secondly, the taxation slab applicable to corporations is also different in the sense corporations pay taxes on dividend paid. Secondly, when such dividend forms part of the revenue of shareholders, tax is again paid on that dividend income, this time by the shareholder. So in a way, shareholders get taxed twice, since in the first case, the company paying dividend recovers the tax on dividend paid from shareholders. This is referred to double taxation.
The key difference is limited liability in corporations, protecting shareholders from personal debt risks. Corporations also facilitate capital raising and have perpetual existence, distinguishing them from other organizational forms.
The most important difference between a corporation and other organizational forms is limited liability. In a corporation, shareholders are not personally liable for the company's debts; their financial risk is limited to their investment in shares.
This contrasts with sole proprietorships and partnerships, where owners may be personally liable for business debts, putting their personal assets at risk. Additionally, corporations can raise capital more easily through the issuance of stock, which allows for potential growth and expansion.
Corporations also have perpetual existence, meaning they can continue indefinitely, regardless of changes in ownership. These features make corporations an attractive option for many entrepreneurs, offering a unique balance of risk and opportunity compared to other organizational structures.
Who is responsible for determining how tasks will be done in a weak matrix project management structure?
Answer:
The correct answer is: The functional manager.
Explanation:
A weak matrix project management structure is the type of business organization managed by two executives: the functional manager and the project manager. Both of them work jointly and report to each other accordingly. Out of the two of them, the functional manager is in charge of controlling how work is done within the firm.
In a weak matrix project management structure, functional managers are generally responsible for determining how tasks will be done. While a project manager is involved, their power is usually limited and they often serve as a coordinator.
Explanation:In a weak matrix project management structure, the responsibility for determining how tasks will be carried out typically falls on the functional manager. Unlike the strong matrix structure where the project manager has significant authority, in a weak matrix, the authority is primarily with the functional managers.
Functional Managers have expertise in specific disciplines such as sales, marketing, engineering etc. They define the way tasks are to be performed to achieve project outcomes. They provide human resources and facilitate the smooth execution of various tasks inside their respective departments.
It's worth noting that a weak matrix still involves a project manager, but they usually have limited power and are often relegated to the role of a coordinator or communicator between functional departments.
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