Answer and Explanation:
The Preparation of income statement of each point is shown below:-
A. Kenton and Denton Universities
Income Statement
Particulars Kenton Denton
Revenue (20 × $450) $9,000 $9,000
Less: Instruction fees
Per course fees $5,000
Per student fee (20 × $250) $5,000
Net income $4,000 $4,000
B. Kenton Universities
Income Statement
Particulars Kenton
Revenue (40 × $240) $9,600
Less: Instruction fees
Per course fees $5,000
Net income $4,600
C. Denton Universities
Income Statement
Particulars Denton
Revenue (40 × $240) $9,600
Less: Instruction fees
Per student fee (40 × $250) $10,000
Net income -$400
D. Kenton and Denton Universities
Income Statement
Particulars Kenton Denton
Revenue (10 × $450) $4,500 $4,500
Less: Instruction fees
Per course fees $5,000
Per student fee (10 × $250) $2,500
Net income -$500 $2,000
We simply deduct all the expenses from the revenue to arrive at net income and a net loss
The primary responsibility for establishing and maintaining internal control rests with
А
The controller
В.
The internal auditor
С
The treasurer
D
Management
Answer:
D
Explanation:
Management is responsible for establishing and maintaining internal control to achieve the objectives of effective and efficient operations, reliable financial reporting, and compliance with applicable laws and regulations.
For an automobile company, the total overhead applied was $48,000,000 at the end of the year. Actual overhead was $52,850,000. Closing over/under applied overhead into cost of goods sold would cause net income to:
Answer:
Net income decreased by $4,850,000.
Explanation:
Given total overhead applied = $48000000
The actual overhead = $52850000
Over/under Applied overhead = total overhead applied - Actual overhead at the end of the year.
Over / under Applied overhead = 48000000-52850000
Over / under Applied overhead = -$4850000
From the calculation, it can be seen that the overhead is underapplied therefore when under applied overhead allocated to cost of goods sold then cost of goods sold decreased by $4850000.
On March 15, 20X7, Barrel Company paid property taxes of $120,000 on its factory building for calendar year 20X7. On July 1, 20X7, Barrel made $20,000 in unanticipated repairs to its machinery. The repairs will benefit operations for the remainder of the calendar year. What total amount of these expenses should be included in Barrel's quarterly income statement for the three months ended September 30, 20X7?
Answer:
Total expenses = $40,000
Explanation:
Total expenses for the quarterly income statement for the three months can be calculated as follows
Data
Property taxes paid = $120,000
Unanticipated repairs = $20,000
Expenses for quarterly income statement =?
Solution
Total expenses = Property taxes paid + Unanticipated repairs
Total expenses = ($120,000 x 3/12) + ($20,000 x 3/6)
Total expenses = $30,000 + $10,000
Total expenses = $40,000
Total expenses of $40,000 should be included in Barrel's quarterly income statement for the three months ended September 30, 20X7
Informal groups: Group of answer choices exist primarily for the benefit of their members. perform routine organizational goals. perform uncommon tasks of the organization. always have a high level of interdependence. are initiated by the organization for special purposes.
Answer:
exist primarily for the benefit of their members.
Explanation:
Informal groups in an organization are created when individuals form a bond based on the experience that they share, they appear from friendship and not by rules inside the company but they influence how people interact and how they perform their job. Also, companies promote the apperance of these groups because they help people interact and improve their communication. According to that, the answer is that informal groups exist primarily for the benefit of their members as they are created by the friendship between employees and not by the company.
The other options are not right because informal groups don't perform routine organizational goals or uncommon tasks of the organization, they don't have a high level of interdependence and they are not initiated by the organization for special purposes because they are created by the employees and are not part of the company's structure.
How much of the contract price should Maya allocate to the machine, installation, and training, respectively?
Answer:
I looked for the missing information and found the following:
total contract price = $920,000
individual prices:
machine = $800,000 installation = $100,000training = $100,000total = $1,000,000Maya should allocate each performance obligation in the same proportion as if they were sold separately:
machine = ($800,000 / $1,000,000) x $920,000 = $736,000installation = ($100,000 / $1,000,000) x $920,000 = $92,000training = ($100,000 / $1,000,000) x $920,000 = $92,000Yan Yan Corp. has a $3,000 par value bond outstanding with a coupon rate of 5.2 percent paid semiannually and 25 years to maturity. The yield to maturity on this bond is 4.8 percent. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
$3,173.63
Explanation:
For computing the price of the bond we need to apply the present value i.e to be shown in the attachment
Given that,
Future value = $3,000
Rate of interest = 4.8% ÷ 2 = 2.4%
NPER = 25 years × 2 = 50 years
PMT = $3,000 × 5.2% ÷ 2 = $78
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the price of the bond is $3,713.63
The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to be constant at 27.5% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price
Answer:
36.38
Explanation:
The Current stock price can be calculated by identifying Present value of dividends in all three years adding terminal value of dividends in year 3.
Year Dividend Growth Dividend PV factor Present Values
1 1.25 127.5% 1.59 0.900901 1.43
2 1.59 127.5% 2.03 0.811622 1.64
3 2.03 127.5% 2.59 0.731191 1.88
3 42.987(w) 0.731191 31.43
Total PV 36.38
Current Dividend = 2.59
Rate of return = 11.00%
Growth Rate = 6.00%
Terminal value = Current Dividend*(1+Growth rate)/(Rate of return-Growth Rate)
Terminal value = 2.59 x (1+0.06) / (0.11-0.06)
Terminal value =42.987
Current stock price = 1.43 +1.64+1.88+31.43
Current stock price = 36.38
Investing $1,500,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in this and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,290,917. Assuming similar sales next year, the 1.7% increase in demand will provide $2,775,946 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $946,598 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $1,500,000 TQM investment, rounded to the nearest month
Answer:
Payback = 19 month
Explanation:
Firm has invested in TQM's Channel Support systems of $1,500,000, It will increase demand of product by 1.7%.
Last years sales revenue was $163,290,917, a 1.7% increase will mean the sales will be:
= $163,290,917 * (1+0.017)
= $163,290,917 * (1.017)
= $166,066,862.59
Thus increase in sales revenue is:
= $166,066,862.589 - $163,290,917
= $2,775,945.589
Now consider contribution margin. From Total Sales, direct variable costs are deducted to get total contribution. The Overall contribution margin is It is 34.1%.
So extra contribution due to 1.7% increase in sales is = $2,775,945.589 * 34.1%
= $946,597.45
Thus increase in contribution margin will also increase profit to the same extent as there is no addition in fixed cost due to this project. So firm will be able to recover $946,597.45 of initial investment of $1,500,000 in one year.
Pay back is the time required to recover this full initial investment. It ascertained by dividing $1,500,000 amount by the net addition in profit per year.
Payback = $1,500,000 / $946,597.45
Payback = 1.585 per year * 12 month
Payback = 19.02 month
Payback = 19 month approximately
How does technological change affect industry evolution? And how should firms manage product adoption and diffusion?
Answer:
How does technological change affect industry evolution?
Technological change greatly affects industry evolution. It is perhaps the most important factor in industry evolution, because technological advancements create new industries, and cause the death of other industries.
For example, the telephone industry replaced the telegraph industry, and the internet has made many technologies obsolete.
And how should firms manage product adoption and diffusion?
Firms should manage product adoption and diffusion in a strategic matter. Firms should look for new products with some anticipation in other to make a profit on customer and technological trends. Firms should also establish when to discard old products that are becoming obsolete in the market.
Nakatomi Corporation produces 10,000 units of Product A at a cost of $20 per unit. A detailed breakdown of the cost is below. Choose the correct answer from the options provided. Per Unit Variable costs $ 12 Allocated manufacturing overhead costs 3 Allocated general administrative costs 5 $ 20 Outside supplier's offer $ 17 What are the total relevant cost of producing the units internally
Answer:
$120,000
Explanation:
Calculation for the total relevant cost of producing the units internally
Using this formula
Total relevant cost = Variable costs per unit*Units Produce
Let plug in the formula
Total relevant cost=$12 per unit* 10,000 units
Total relevant cost=$120,000
Therefore the total relevant cost of producing the units internally will be $120,000
Guardian Corporation has two major divisions-Healthcare Products and Pharmaceutical Products. It provides the following information for the year Pharmaceutical Division Healthcare Division $150,000 $47.000 $310,000 $1,000,000 $218,400 $5,660,000 13 0% sales ating income age assets Target rate of return 13 0% Calculate the residual income for the Healthcare Division.
a. $47 000
b. $6700
c. $27.500
d. $103,000
Answer:
Residual income =$6,700
Explanation:
Residual income is the excess of the controllable profit over the opportunity cost of capital invested.
It is used to evaluate the financial performance of a division or department.
The a positive residual value indicate a good performance, hence the higher the residual value the better
It is computed as follows:
Residual income = Controllable profit - (cost of capital× operating assets)
Controllable profit = 47,000
Interest on capital = × 13% × 310,000 = 40300
Residual income = 47,000 - 40,300 = 6700
Residual income =$6,700
A short margin account with the only position being 100 shares of ABC stock, shows the following:
Credit Balance: $18,000
Short Mkt Value: $12,000
Equity: $6,000
If ABC pays a dividend of $2.00 per share, the result will be an adjusted:__________
Answer:
1.1'00
Explanation:
Name 2 of the 4 structures a business can have
Answer:
4 Types of Legal Structures for Business:
Sole Proprietorship. General Partnership. Limited Liability Company (LLC) Corporations (C-Corp and S-Corp)Mark Ward is a farmer who owns land which borders on the right-of-way of the Northern Railroad. On August 10, 2007, due to the admitted negligence of the Railroad, hay on the farm was set on fire and burned. Ward had had a dispute with the Railroad for several years concerning the ownership of a small parcel of land. The representative of the Railroad has offered to assign any rights which the Railroad may have in the land to Ward in exchange for a release of his right to reimbursement for the loss he has sustained from the fire. Ward appears inclined to accept the Railroad's offer. The Railroad's 2007 financial statements should include the following related to the incident:_________
A. recognition of a loss and creation of a liability for the value of the land.
B. disclosure in note form only.
C. recognition of a loss only.
D. creation of a liability only.
Answer:
A. recognition of a loss and creation of a liability for the value of the land.
Explanation:
This is because, in the financial statement of the Railroad company, it goes to show the financial dealings which the company had within the fiscal year under review. Since, the Northern Railroad Company and Mark Ward has reached an agreement, the best would be the recognition of the loss and create a liability for the value of the land in their financial statement. It will afford the investors to be aware of the assets and liability of the company at the present time.
Listed below are transactions that might be reported as investing and/or financing activities on a statement of cash flows. Possible reporting classifications of those transactions are provided also.
Required:
Indicate the reporting classification of each transaction by entering the appropriate classification code. (The first item is provided as an example.)
Classifications
+ I Investing activity (cash inflow)
– I Investing activity (cash outflow)
+ F Financing activity (cash inflow)
– F Financing activity (cash outflow)
N Noncash investing and financing activity
X Not reported as an investing and/or a financing activity
Classifications Transactions
+I 1. Sale of land.
2. Issuance of common stock for cash.
3. Purchase of treasury stock.
4. Conversion of bonds payable to common stock.
5. Lease of equipment.
6. Sale of patent.
7. Acquisition of building for cash.
8. Issuance of common stock for land.
9. Collection of note receivable (principal amount).
10. Issuance of bonds.
11. Issuance of stock dividend.
12. Payment of property dividend.
13. Payment of cash dividends.
14. Issuance of short-term note payable for cash.
15. Issuance of long-term note payable for cash.
16. Purchase of marketable securities ("available for sale").
17. Payment of note payable.
18. Cash payment for five-year insurance policy.
19. Sale of equipment.
20. Issuance of note payable for equipment.
21. Acquisition of common stock of another corporation.
22. Repayment of long-term debt by issuing common stock.
23. Payment of semiannual interest on bonds payable.
24. Retirement of preferred stock.
25. Loan to another firm.
26. Sale of inventory to customers.
27. Purchase of marketable securities (cash equivalents).
Answer:
Investing Activities refer to cashflow activities that have to do with Fixed assets as well as the ownership of the securities of other companies.
Financing Activities refer to cashflow activities that have to do with how the company sources funds for the company so this includes Equity related activities and long term liabilities.
1. Sale of land. +I
2. Issuance of common stock for cash. +F
3. Purchase of treasury stock. -F
4. Conversion of bonds payable to common stock. N
5. Lease of equipment. N
6. Sale of patent. +I
7. Acquisition of building for cash. -I
8. Issuance of common stock for land. N
9. Collection of note receivable (principal amount). +I
10. Issuance of bonds. +F
11. Issuance of stock dividend. X
12. Payment of property dividend. X
13. Payment of cash dividends. -F
14. Issuance of short-term note payable for cash. +F
15. Issuance of long-term note payable for cash. +F
16. Purchase of marketable securities ("available for sale"). -I
17. Payment of note payable. -F
18. Cash payment for five-year insurance policy. X
19. Sale of equipment. +I
20. Issuance of note payable for equipment. N
21. Acquisition of common stock of another corporation. -I
22. Repayment of long-term debt by issuing common stock. N
23. Payment of semiannual interest on bonds payable. X
24. Retirement of preferred stock. -F
25. Loan to another firm. -I
26. Sale of inventory to customers. X
27. Purchase of marketable securities (cash equivalents). X
Please see appropriate classification below.
+ I Investing activity (cash inflow)
1. Sale of land. +I
6. Sale of patent. +I
9. Collection of note receivable (principal amount). +I
19. Sale of equipment. +I
– I Investing activity (cash outflow)
7. Acquisition of building for cash. -I
16. Purchase of marketable securities ("available for sale"). -I
21. Acquisition of common stock of another corporation. -I
25. Loan to another firm. -I
+ F Financing activity (cash inflow)
2. Issuance of common stock for cash. +F
10. Issuance of bonds. +F
14. Issuance of short-term note payable for cash. +F
15. Issuance of long-term note payable for cash. +F
– F Financing activity (cash outflow)
3. Purchase of treasury stock. -F
13. Payment of cash dividends. -F
17. Payment of note payable. -F
24. Retirement of preferred stock. -F
N Noncash investing and financing activity
4. Conversion of bonds payable to common stock. N
5. Lease of equipment. N
8. Issuance of common stock for land. N
20. Issuance of note payable for equipment. N
22. Repayment of long-term debt by issuing common stock. N
X Not reported as an investing and/or a financing activity
11. Issuance of stock dividend. X
12. Payment of property dividend. X
18. Cash payment for five-year insurance policy. X
23. Payment of semi-annual interest on bonds payable. X
26. Sale of inventory to customers. X
27. Purchase of marketable securities (cash equivalents). X
Learn more at : https://brainly.com/question/17132056
Swan Textiles Inc. produces and sells a decorative pillow for $98.00 per unit. In the first month of operation, 2,200 units were produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs $24.00 per unit Variable marketing costs $5.00 per unit Fixed manufacturing costs $13.00 per unit Administrative expenses, all fixed $21.00 per unit Ending inventories: Direct materials −0− WIP −0− Finished goods 400 units What is the operating income using variable costing?
Answer:
Net operating profit= 57,800
Explanation:
Giving the following information:
Selling price= $98
Units sold= 1,800
Variable manufacturing costs $24.00 per unit
Variable marketing costs $5.00 per unit
Fixed manufacturing costs $13.00 per unit
Administrative expenses, all fixed $21.00 per unit
First, we need to calculate the total fixed costs:
Total fixed manufacturing cost= 13*2,200= 28,600
Total administrative cost= 21*1,800= 37,800
Variable costing income statement:
Sales= 98*1,800= 176,400
Total variable cost= 1,800*(24 + 5)= (52,200)
Contribution margin= 124,200
Total fixed manufacturing cost= (28,600)
Total administrative cost= (37,800)
Net operating profit= 57,800
When auto manufacturer BMW purchased the RollsRoyce brand name, BMW had to hire and train a new staff of assembly workers. The new workers were paid per hour, worked a total of hours, and produced cars. BMW budgeted for a standard labor rate of per hour and direct labor hours per car. What is the direct labor rate variance for the RollsRoyce division?
Complete Question:
When auto manufacturer BMW purchased the Rolls-Royce brand name, BMW had to hire and train a new staff of assembly workers. The new workers were paid $25 per hour, worked a total of 7,500 hours, and produced 2,000 cars. BMW budgeted for a standard labor rate of $27 per hour and 1.25 direct labor hours per car.
What is the direct labor rate variance for the Rolls-Royce division?
Answer:
$15,000 Favorable Variance
Explanation:
As we know that:
Labor Rate Variance = (Actual Rate per Hour − Standard Rate per Hour) * Actual Hours Worked
If we consider the parenthesis elements in the formula, we can decide whether the variance is favorable or adverse. If the actual cost is higher than the budget (standard) then the variance (difference) is adverse and vice versa.
Here
Actual rate per hour is $25 per Hour
Standard rate per hour is $27 per Hour
Actual Hours Worked are 7,500 Hour
By putting values, we have:
Labor Rate Variance = ($25 − $27) * 7,500 Hrs
Labor Rate Variance = ($2 per share) * 7,500 Hrs
Labor Rate Variance = $15,000 Favorable
As the actual labor rate is lower than the standard rate hence the variance is favorable.
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:
Puget Sound Divers
Planning Budget
For the Month Ended May 31
Budgeted diving-hours (q) 300
Revenue ($440.00q) $ 132,000
Expenses:
Wages and salaries ($11,400 + $128.00q) 49,800
Supplies ($5.00q) 1,500
Equipment rental ($2,400 + $25.00q) 9,900
Insurance ($3,800) 3,800
Miscellaneous ($510 + $1.48q) 954
Total expense 65,954
Net operating income $ 66,046
During May, the company’s actual activity was 290 diving-hours.
prepare a flexible budget for May.
Answer:
$63,240.8
Explanation:
Preparation for a flexible budget for May
Actual diving hours 290
Revenue (290*$440) $127,600
Expenses:
Wages and salaries 48,520
(11,400+290*128)
Supplies 1,450
(290*5)
Equipment rental 9,650
(2400+290*25)
Insurance 3,800
Miscellaneous 939.2
(510+290*1.48)
Total expense $64,359.2
Net Operating income $63,240.8
($127,600-$64,359.2)
Therefore the Net Operating income for the flexible budget for May will be $63,240.8.
a company bought a piece of equipment for A200 and expects to use it for eight years. The company that plans to
Answer:
The correct option b. $2,567.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
A company bought a piece of equipment for $49,200 and expects to use it for eight years. The company then plans to sell it for $4,000. The company has already recorded depreciation of $42,632.60. Using the double-declining-balance method, what is the company's annual depreciation expense for the upcoming year? (Round your answer to the nearest whole dollar amount.)
a. $11,300.
b. $2,567.
c. $19,200.
d. $1,642.
The explanation to the answer is now given as follows:
Note: See the attached excel file for the calculation of the annual depreciation expenses.
Double declining depreciation method is an accelerated depreciation technique due to the fact the depreciation expenses are charged faster under it than under straight-line depreciation method.
The depreciation of double declining method is calculated by by multiplying the rate of straight-line depreciation method by 2.
From the question, the already recorded depreciation of $42,632.60 is the accumulated depreciation expenses for the 7th year.
Since the upcoming year is the 8th year which is the last year, the depreciation expense for it can be calculated as by adjusting for the residual value of $4,000 follows:
Equipment cost = $49,200
Accumulated Depreciation = $42,632.60
Residual value = $4,000
Estimated useful life = 8 years
Therefore, we have:
Straight line method depreciation rate = 1 / Estimated useful life = 1 / 8 = 0.125, or 12.50%
Double declining depreciation rate = Straight line method depreciation rate * 2 = 12.50% * 2 = 25%
Beginning book value of the equipment in the upcoming year or in the 8th year = Equipment cost - Accumulated Depreciation = $49,200 - $42,632.60 = $6,567.40
Annual depreciation expense for the upcoming year or for the 8th year = Beginning book value of the equipment - Residual value = $6,567.40 - $4,000 = $2,567
Therefore, the correct option b. $2,567.
A registered representative ("rr") is an MFP of a municipal securities firm that is an underwriter for that municipal issuer. The MFP volunteers his time to the election campaign of a candidate for mayor of the issuer by offering to host a reception. The "rr," who is entitled to vote in the election, does not make a contribution to the elected official’s campaign, but does pay $300 of "out of pocket" expenses for the cost of the reception. Which statement is TRUE?
Answer:
The $300 of out of pocket expense exceeds the MSRB political contribution limit and will result in the municipal securities firm being banned as an underwriter for that issuer for 2 years.
Explanation:
The municipal securities firm is is underwriter for municipal issuer. The volunteers have paid $300 out of pocket but they are not entitled to make contribution to the campaign. This will result the firm being banned for two years as an underwriter for the issuer.
Provident Bank offers a 10-year CD that earns 2.15% compounded continuously. If $10,000 is invested in this CD, how much will it be worth in 10 years
Answer:
the CD will be worth $12,370.40 in 10 years time.
Explanation:
The Future Value is the term given to the amount that a dollar invested today would be worth in the future.
The Future Value of the CD can be determined as follows :
PV = - $10,000
n = 10
i = 2.15 %
Pmt = $ 0
P/yr = 1
FV = ?
Using a financial calculator,the future value (FV) of the CD in 10 years time will be : $12,370.40
Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor costs will decrease by $663,000 per year. However, other cash operating expenses will increase by $122,000 per year. The equipment will cost $194,000 and is depreciable over 7 years using simplified straight line to a zero salvage value. Crossroad will invest $4,000 in net working capital at installation. The firm has a marginal tax rate of 34%. Calculate the firm's annual cash flows associated with the new project.
Answer:
kaby lame
Explanation:
Now don't get us wrong – not all of these answers raise this excellent question
When a job analyst watches employees directly or reviews films of workers on the job, which analysis method is being used?
Answer:
Observation method
Explanation:
Through observation, this analyst collects data by watching the employees directly. This is participatory because the analyst has to involve himself in the work environment where this employees are in other to collect data. This method would allow the analyst to have more reliable insights. He would get data based on what the employees do rather than what the Employees tell him that they do.
Calculation of national output at Market Prices is known as _________
a.
Real GDP
b.
Nominal GDP
c.
Non-monetary income
d.
None of these
Answer:
A
Explanation:
Firms with high capital intensity ratios have found ways to lower this ratio permitting them to achieve a given level of growth with fewer assets and consequently less external capital. For example, just-in-time inventory systems, multiple shifts for labor, and outsourcing production are all feasible ways for firms to reduce their capital intensity ratios. True or False
Answer: True
Explanation:
The capital intensity ratio of a company
is used to measure the amount of capital that is required per dollar of revenue. The capital intensity ratio is calculated when the total assets that a company has is divided by its sales.
It should be noted that firms that has high capital intensity ratios have found ways to lower this ratio which allows them to achieve a given level of growth with fewer assets and consequently less external capital.
"The internal rate of return method differs from the net present value method in that it results in finding the" ___________________ of the potential investment.
Answer: profitability
Explanation: The internal rate of return method differs from the net present value method in that it results in finding the profitability of the potential investment.
In capital budgeting which is the process by which companies determine whether a new investment or expansion opportunity is worthwhile and if undertaken, could either yield net profits or losses for the company, both the net present value (NPV) (present value of cash inflows minus the present value of cash outflows over a given period time) and the internal rate of return (IRR) methods are employed.
How does the IRR method determine profitability? - This it does by using a percentage value rather than a dollar amount and therefore is advantageous in representing the possible returns of investments by comparing it with other alternative investments.
SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 4,800 of these meals using 2,350 direct labor-hours. The company paid its direct labor workers a total of $23,500 for this work, or $10.00 per hour. According to the standard cost card for this meal, it should require 0.50 direct labor-hours at a cost of $9.40 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,800 meals? 2. What is the standard labor cost allowed (SH × SR) to prepare 4,800 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance?
Answer:Please find answers in the explanation column
Explanation:
a)standard labor-hours allowed (SH) to prepare 4,800 meals
standard labor-hours =Actual output X standard direct labor hours
4,800 X 0.50 = 2,400hours
B) standard labor cost allowed
direct labor-hours per houR = $9.40
standard labor-hours = 2,400
standard labor cost =direct labor-hours per houR xstandard labor hours
= $9.40 x 2,400= $22,560
c) labor spending variance= Actual cost incurred - Standard Labor cost
= 23,500 - 22,560= 940 -- Which is unfavorable because the actual is cost is greater than the standard labor cost
D)the labor rate variance and the labor efficiency variance?
labor rate variance= (Actual rate - standard rate ) X Actual hours
($10.00 -$9.40) X 2,350= $1,410
Labor efficiency variance=(Actual hrs - standard hrs allowed) x standard rate
2,350- 2,400) X $9.40= $470 --- Favourable as the actual hours used is less than the standard hours .
Assume that interest rates on 15-year noncallable Treasury and corporate bonds with different ratings are as follows: T-bond = 7.72% A = 9.64% AAA = 8.72% BBB = 10.18% The differences in rates among these issues were most probably caused primarily by:
Answer:
Investors are risk averse, which means that they are willing to invest in low risk projects or investments. In order for an investor to invest in a riskier project, he/she will expect to receive higher returns to compensate for the extra risk. US Treasury bonds are probably the safest investments in the world, that is why they yield the lowest interest rate. AAA bonds are less risky than BBB bonds, which in turn are less risky than CCC bonds. That is why AAA bonds yield a lower return than BBB bonds, and BBB bonds yield a lower return than CCC bonds.
Suppose when the price of coffee beans goes from $1 to $1.20 per pound, production increases from 90 million pounds of coffee beans to 110 million pounds per year. Using the mid-point method, the percentage change in quantity supplied is: Multiple Choice 20 percent 18 percent 0.6 6.0
Answer: 20%
Explanation:
Using the midpoint formula, the denominator is an average of the beginning and ending figures;
= [tex]\frac{Q2 - Q1}{Q2 + Q1 /2 } * 100[/tex]
= [tex]\frac{110 - 90}{(110 + 90)/2} * 100[/tex]
= [tex]\frac{20}{100} * 100[/tex]
= 20%
A project has an initial cost of $18,400 and produces cash inflows of $7,200, $8,900, and $7,500 over three years, respectively. What is the discounted payback period if the required rate of return is 16 percent
Answer:
Never. the amount invested is never recovered
Explanation:
Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows
Discounted cash flow in year 1 = 7200 / 1.16 = $6206.90
Discounted cash flow in year 2 = $8,900 / 1.16² = $6614.15
Discounted cash flow in year 3 = $7,500 / 1.16³ = $4804.93
Adding the discounted cash flows together gives a value of $17,625.98. This value is less than the cost of the project. So, the amount invested is never recovered