Answer:
730 items
Explanation:
The objective of the given information is to determine the number of hamburgers UAHH should order for the following conditions:
Average daily demand 600
Standard deviation of demand 100
Desired service probability 99%
Hamburger inventory 800
The formula for a given order quantity in a fixed period of time can be expressed as :
[tex]q = \overline d(L+T)+ z \sigma_{L+T}-I[/tex]
where;
[tex]q[/tex] = order quantity = ???
[tex]\overline d[/tex] = daily demand average = 600
L = lead time in days = 1
T = time taken = 1
z = no of standard deviation = ???
[tex]\sigma_{L+T}[/tex] = standard deviation of usage in lead time and time taken = ???
I = present inventory level = 800
[tex]\sigma_{L+T}[/tex] = [tex]\sqrt 2[/tex] × standard deviation of daily demand
[tex]\sigma_{L+T}[/tex] = [tex]\sqrt{2} *100[/tex]
[tex]\sigma_{L+T}[/tex] = 1.4142 * 100
[tex]\sigma_{L+T}[/tex] = 141.42 items
From the Desired service probability 99% = 0.99; we can deduce the no of standard deviation by using the excel function (=NORMSINV (0.99))
z = 2.33
From [tex]q = \overline d(L+T)+ z \sigma_{L+T}-I[/tex]
[tex]q =600(1+1)+ 2.33*(141.42)-800[/tex]
[tex]q =600(2)+ 2.33*(141.42)-800[/tex]
[tex]q =1200+329.5086-800[/tex]
q = 729.5086 items
q ≅ 730 items
Therefore; the number of hamburgers UAHH should order from the following given conditions = 730 items
4. Sales tax is taken on
O A. selling price minus trade discount.
B. shipping charges.
O c. trade discounts.
0 D. cash discounts.
Answer:
A. selling price minus trade discount.
Explanation:
Fenwick operates a grocery store and his retail building was completely destroyed by a hurricane on August 22, Year 10. The fair market value of the building before the hurricane was $1,200,000 with an adjusted basis of $800,000. His insurance company reimbursed him $1,200,000 of December 2, Year 10. When is the last date that Fenwick can replace this building with qualifying property and avoid recognizing gain from this transaction.A. December 31, 2013.B. August 22, 2015.C. December 31, 2015.D. December 31, 2016.
Answer:
D. December 31, 2016.
Explanation:
Fenwick company had retail building which was destroyed on August 22, hurricane. The hurricane was so intense that complete building was damaged. The building already had an insurance policy due to which the fair value of the building is reimbursed. Fenwick can claim the fair value of the building from an insurance company. If he replaces the building with qualifying building on the date he gets the insurance claim he will not be required to record gain of the transaction.
In 2012, the nominal wage rate for unionized carpenters was $37.50 and the CPI was 204. Calculate the real wage rate for this group of workers.
Answer:
$18.38
Explanation:
The nominal wage rate for unionized carpenters in 2012 was $37.50
The CPI was 204
Therefore, the real wage rate can be calculated as follows
Real wage rate= Nominal wage rate/CPI × 100
= $37.50/204 × 100
= 0.1838 × 100
= $18.38
Hence the real wage rate for unionized carpenters is $18.38
Linda and Richard are married and file a joint return for 2019. During the year, Linda, who works as an accountant for a national airline, used $2,100 worth of free passes for travel on the airline; Richard used the same amount. Linda and Richard also used $850 worth of employee discount coupons for hotel rooms at the hotel chain that is also owned by the airline. Richard is employed at State University as an accounting clerk. Under a tuition reduction plan, Richard saved $4,000 in tuition fees during 2019. He is studying for a master's degree in business at night while still working full-time. Richard also had $30 worth of personal typing done by his administrative assistant at the University.
Required:
What is the amount of fringe benefits that should be included in Linda and Richard's gross income on their 2018 tax return?
Answer:
$4,850
Explanation:
The free passes are customer discounts and does not qualifies for taxable in kind benefits. The $850 is an in-kind benefits and thus must be included in the gross income. Furthermore, the $4,000 fee reduction is all because of the university employment and thus must be included in the gross income.
The $30 worth of personal typing done by Richard's administrative assistant is a third party favor and this favor was not from the employer so it has nothing to do with tax.
The increase in taxable gross income will be as under:
Increase in Taxable Gross Income = $850 + $4,000 = $4,850
Q 7.34: At the end of a shift, the sales clerk turned over $21,476.38 in cash, checks, and credit card receipts to the cashier. When the supervisor looked at the cash register tape for that shift, the tape stated that the sales clerk had sold $21,478.23 in merchandise. What should the company do as a result of this difference
Answer:
A cash shortage of $1.85 has occurred. The sales clerk must have taken away more in tips than she should.
The company can ask the sales clerk to refund the sum of $1.85 shortage provided it allows the sales clerk also to take away overages. If not, the shortage can be taken from the overtages, if any.
Explanation:
In handling cash, shortages and overages occur. The best policy is to prevent such shortfall and excess in cash handling as they can lead to other problems. But, where the shortages and overages are tolerable, the company should accommodate them by creating clear company policies about the issues. Policies provide guides to employees so that they know what they are ordinarily expected to do.
A. Why may a hotel charge such very high prices for wine, soft drinks or even bottled water and yet quite reasonable prices for food and still get away with such high prices?
Answer:
The justification given is indeed the performance, product as well as the location which makes up for the exorbitant cost charged.
Explanation:
It's indeed primarily although together with the goods, they have their service. The hotels wouldn't go out of operation even though they demand these high costs since perfect pairing some other considerations included within the amount, including the environment, infrastructure, facilities, services, etc.The income elasticity becomes extremely relatively elastic, which means the demand doesn't really exist based on the paid costs.Ansara Company had the following abbreviated income statement for the year ended December 31, 20Y2:_________.
(in millions)
Sales $21,920
Cost of goods sold $18,630
Selling, administrative, and other expenses 1,970
Total expenses $20,600
Income from operations $1,320
Assume that there were $4,820 million fixed manufacturing costs and $1,100 million fixed selling, administrative, and other costs for the year. The finished goods inventories at the beginning and end of the year from the balance sheet were as follows:________.
January 1 $2,630 million
December 31 $3,070 million
Assume that 30% of the beginning and ending inventory consists of fixed costs. Assume work in process and materials inventory were unchanged during the period.
a. Prepare an income statement according to the variable costing concept for Ansara Company for 20Y2.
Ansara Company
Variable Costing Income Statement
For the Year Ended December 31, 20Y2 (in millions)
Sales $ 21,920
Variable cost of goods sold:
Beginning inventory $ 1,841
Variable cost of goods manufactured 13,810
Ending inventory 2,149
Total variable cost of goods sold
Manufacturing margin $
Variable selling and administrative expenses 870
Contribution margin $
Fixed costs:
Fixed manufacturing costs $ 4,820
Fixed selling and administrative expenses 1,100
Total fixed costs 5,920
Income from operations $
b. Explain the difference between the amount of income from operations reported under the absorption costing and variable costing concepts.
The income from operations under the variable costing concept be the same as the income from operations under the absorption costing concept when the inventories either increase or decrease during the year. In this case, Ansara’s inventory , meaning it sold than it produced. As a result, the income from operations under the variable costing concept will be more than the income from operations under the absorption costing concept. The reason is because the variable costing concept deduct the fixed costs in the period that they are incurred, regardless of changes in inventory balances.
Answer:
Ansara Company
a. Ansara Company Variable Costing Income Statement
For the Year Ended December 31, 20Y2 (in millions)
Sales $ 21,920
Variable cost of goods sold:
Beginning inventory $ 1,841
Variable cost of goods manufactured 13,810
Ending inventory 2,149
Total variable cost of goods sold 17,800
Manufacturing margin $4,120
Variable selling and administrative expenses 870
Contribution margin $3,250
Fixed costs:
Fixed manufacturing costs $ 4,820
Fixed selling and administrative expenses 1,100
Total fixed costs 5,920
Income from operations $2,670
b. Explanation of the difference between the amount of income from operations reported under absorption costing and variable costing concepts:
The difference occurs as a result of cost of inventory at the beginning and at the end. Under variable costing concept, the fixed manufacturing costs does not form part of the product costs. They are treated as period costs. But under absorption costing, fixed manufacturing costs form part of the product costs.
Explanation:
a) Data:
Ansara Company Abbreviated Income Statement for the year ended December 31, 20Y2: (in millions):
Sales $21,920
Cost of goods sold $18,630
Gross profit $3,290
Selling, administrative, and
other expenses 1,970
Income from operations $1,320
b) Absorption costing concept is a costing technique that includes the full cost of manufacturing (i.e. cost of direct materials, direct labor, and all fixed production costs or overheads) in the product costs. Under variable costing concept, the full cost of manufacturing is not included in the product costs. Instead, all the variable costs (direct materials, direct labor, and variable overhead, whether factory or not) are included, while fixed manufacturing overheads are treated as period costs and expensed.
Wolfpack Construction has the following account balances at the end of the year. Accounts Balances Equipment $ 19,000 Accounts payable 1,600 Salaries expense 26,000 Common stock 12,000 Land 11,000 Notes payable 13,000 Service revenue 32,000 Cash 4,600 Retained earnings ?
Answer:
$6,000
Explanation:
Net income for the year = Service revenue - Salaries
= $32,000 - $26,000
= $6,000
Since Net income = retained earnings,
Therefore, retained earnings = $6,000
The following costs result from the production and sale of 4,500 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $300 each. The company has a 35% income tax rate.
Variable production costs
Plastic for casing $121,500
Wages of assembly workers 414,000
Drum stands 162,000
Variable selling costs
Sales commissions 112,500
Fixed manufacturing costs
Taxes on factory 15,000
Factory maintenance 30,000
Factory machinery depreciation 90,000
Fixed selling and administrative costs
Lease of equipment for sales staff 30,000
Accounting staff salaries 80,000
Administrative management salaries 160,000
Required:
1. Prepare a contribution margin income statement for the year.
2. Compute its contribution margin per unit and its contribution margin ratio.
3. For each dollar of sales, how much is left to cover fixed costs and contribute to operating income?
Answer:
Tight Drums Company
1. Contribution Margin Income Statement for the year ended December 31, 2019:
Sales Revenue $1,350,000
Variable production costs:
Plastic for casing $121,500
Drum stands 162,000
Wages of assembly workers 414,000
Total variable prodn. costs $697,500
Variable selling costs :
Sales commissions 112,500
Total variable costs $810,000 810,000
Contribution $540,000
Fixed manufacturing costs:
Taxes on factory 15,000
Factory maintenance 30,000
Factory machinery depreciation 90,000
Total Manufacturing overhead $135,000 135,000
Fixed selling and administrative costs :
Lease of equipment for sales staff 30,000
Accounting staff salaries 80,000
Administrative management salaries 160,000
Total fixed selling and admin. costs $270,000 270,000
Operating Profit (Pre-Tax) Income $135,000
Income Tax Expense (Rate = 35%) 47,250
Net Income $87,750
2.Computation of Contribution Margin per unit and Contribution Margin Ratio:
a) Contribution Margin per unit
= Contribution Margin divided by Units sold
= $540,000/4,500
= $120 per unit
b) Contribution Margin Ratio
= Contribution per unit/Selling price * 100
= $120/$300 * 100
= 40%
3. For each dollar of sales, contribution per dollar
= 40% of $1
= $0.40
Explanation:
a) Data:
Sales = 4,500 drums
Selling price = $300 each
Sales Revenue = 4,500 x $300 = $1,350,000
Variable production costs:
Plastic for casing $121,500
Drum stands 162,000
Wages of assembly workers 414,000
Total variable prodn. costs $697,500
Variable selling costs :
Sales commissions 112,500
Total variable costs $810,000
Fixed manufacturing costs:
Taxes on factory 15,000
Factory maintenance 30,000
Factory machinery depreciation 90,000
Total Manufacturing overhead $135,000
Fixed selling and administrative costs :
Lease of equipment for sales staff 30,000
Accounting staff salaries 80,000
Administrative management salaries 160,000
Total fixed selling and admin. costs $270,000
Income Tax Rate = 35%
b) Tight Drums Company's contribution margin income statement is a financial statement that separates all the variable costs from the fixed costs. The difference between Tight Drums' Sales Revenue of $1,350,00 and the Total Variable Costs of $810,000 is called the Contribution Margin.
The Contribution margin of $540,000 shows how much of the sales revenue is left to cover the fixed costs totalling $405,000 and generate operating income, after deducting all the variable costs.
This contribution margin can be expressed per unit by dividing the contribution margin of $540,000 by the 4,500 units sold. The per unit value can then be expressed as a ratio of the selling price. From the contribution margin ratio, we can estimate how much is left per dollar of sales for Tight Drums Company to cover its fixed costs and generate operating income.
A foreign subsidiary of the Bart Corporation has certain balance sheet accounts on December 31, 20X2. Information relating to these accounts in U.S. dollars is as follows:_________.
Restated at Current Rates Historical Rates
-Marketable (AFS and Trading) securities $ 75,000 $ 85,000
-Inventories, carried at average cost 600,000 700,000
-Refundable deposits 25,000 30,000
-Goodwill 55,000 70,000
Total: $755,000 $885,000
What total should be included in Bart's balance sheet on December 31, 20X2, as a result of the preceding information?
Answer:
$885,000
Explanation:
How you are going to report the assets depends on whether you want to use the current rate method or the temporal (historic) method. Under the temporal method, you should use the historical rates, therefore, the total amount reported on the balance sheet is $885,000. if you want to use the current rate method, you should report the assets at $755,000, but you must also report an unrealized loss = $885,000 - $755,000 = $130,000 in the cumulative translation adjustment account. The total amount reported will not change, only the way you report it will change.
Chimney Sweeps provided chimney cleaning services to several clients during the month of February. Chimney's customers have not yet been billed. Chimney's customers owe $2,000 to Chimney. How will Chimney Sweeps record this transaction?
Answer:
The Answer is explained below
Explanation:
As chimney has provided clearing services to several clients and have not yet been billed Chimney will debit the accounts receivable with $2,000 and will credit the Services revenue by $2,000.
Entry DEBIT CREDIT
Account Receivable $2,000
Services Revenue $2,000
Hillside issues $2,000,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,447,990.Required:a. Prepare the January 1, 2013, journal entry to record the bonds issuance.b. Prepare the first two years of an amortization table using the straight-line method.c. Prepare the journal entries to record the first two interest payments.
Answer:
a.
Cash $2,447,990 (debit)
Investment in Bonds $2,447,990 (credit)
b.
Amortization Table for the first two years will be :
2013
Capital $22.307
Interest $97.693
Balance $2,425,683
2014
Capital $34,472
Interest $145,528
Balance $2,402,475
c.
First Payment : June 30, 2013
Interest Expense $48,957 (debit)
Investment in Bonds $11,043 (debit)
Cash $60,000 (credit)
Second Payment : December 31, 2013
Interest Expense $48,736 (debit)
Investment in Bonds $11,264 (debit)
Cash $60,000 (credit)
Explanation:
On the day of issuance of the Bonds, the entries will be :
Cash $2,447,990 (debit)
Investment in Bonds $2,447,990 (credit)
Use the data given to prepare an amortization schedule
Hint : First find the YTM as follows :
n = 15 × 2 = 30
FV = - $2,000,000
PV = $2,447,990
PMT = ($2,000,000 × 6%)/2 = $60,000
P/ yr = 2
YTM = ? 3.998
Using a financial calculator, the YTM is 3.998 or 4 %
Amortization Table for the first two years will be :
2013
Capital $22.307
Interest $97.693
Balance $2,425,683
2014
Capital $34,472
Interest $145,528
Balance $2,402,475
Journal Entries for the Payment of Interest :
First Payment : June 30, 2013
Interest Expense $48,957 (debit)
Investment in Bonds $11,043 (debit)
Cash $60,000 (credit)
Second Payment : December 31, 2013
Interest Expense $48,736 (debit)
Investment in Bonds $11,264 (debit)
Cash $60,000 (credit)
On February 12, Travis Company purchased merchandise on account from a supplier for $10,300. terms 2/10, net 30.
On February 14. Travis returned $1,550 of the merchandise purchased.
On February 17, Travis Company paid for the merchandise.
Assume Travis Company is using the periodic inventory system, record the journal entries required for the above transactions.
Answer:
February 12
Dr Merchandise Inventory 10,300
Cr Accounts Payabe 10,300
February 14
Dr Accounts Payable 1,550
Cr Merchandise Inventory 1,550
February 17
Dr Accounts Payable 8,750
Cr Cash 8,575
Cr Merchandise Inventory 175
Explanation:
Preparation of the Journal entries for Travis Company using periodic inventory system
A. Based on the information given we were told that the company purchased merchandise on account from a supplier for the amount of $10,300 this means that the transaction will be recorded as:
February 12
Dr Merchandise Inventory 10,300
Cr Accounts Payabe 10,300
B. Since the company returned the amount of $1,550 of the merchandise purchased this means that the transaction will be recorded as:
February 14
Dr Accounts Payable 1,550
Cr Merchandise Inventory 1,550
C. Based on the information given we were told that the company paid for the merchandise, this means that the transaction will be recorded as:
February 17
Dr Accounts Payable 8,750
(10,300-1,550)
Cr Cash 8,575
(98%*8,750)
Cr Merchandise Inventory 175
(2%*8,750)
Excey Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent. The current yield on these bonds is 7.55 percent. How many years do these bonds have left until they mature?
Answer:
11.057 years
Explanation:
For computing the number of years we need to apply the NPER formula i.e to be represented in the attachment below:
Given that,
Present value = $1,000 × 8% ÷ 7.55% = $1,059.60
Assuming Future value = $1,000
Rate of interest = 7.2%
PMT = $1,000 × 8% = $80
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the number of years is 11.057 years
"The net present value of the investment, excluding the annual cash inflow, is −$403,414. To the nearest whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive? (Ignore income taxes.)"
Answer: c. $81,202
Explanation:
The inflow will be annual and constant which makes it an annuity. Given the discount rate of 12% and a useful life of 8 years, the present value interest discount factor based on the table is = 4.968.
Option 1 present value
= 48,410 * 4.968
= $240,500.88
Option 2 present value
= 50,427 * 4.968
= $250,521.34
Option 3 present value
= 81,202 * 4.968
= $403,412
Option 3 is the closest option with the difference being down to rounding errors. The annual inflow would have to be $81,202 to make the investment in the equipment financially attractive.
ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card. Here, ExxonMobil is using which segmentation variable?
Answer:
Behavioral
Explanation:
Behavioral segmentation is a type of segmentation where consumers are divided into segments based on specific behaviours.
the behaviour with which consumers are been segmented with here are the type of credit cards used to fill up their gas tanks
Reporting the details of notes is consistent with which accounting principle that requires financial statements (including footnotes) to report all relevant information?
a. Relevance
b. Full disclosure
c. Evaluation
d. Materiality
e. Matching
Answer:
The correct answer is Option B.
Explanation:
The full disclosure principle is a concept that requires all necessary details relating to the notes to the financial statements are provided and explained in such a way that would be understandable to the users of the financial statements.
The disclosures are expected to be in compliance with the accounting standards, regulatory pronouncements, among others.
Sibling Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow:
Furniture has three sales representatives: Archie, Bryce, and Crissy. Archie sold 70 tables with 8 chairs each. Bryce sold 50 tables with 4 chairs each. Crissy sold 80 tables with 6 chairs each.
Requirement
Calculate the total contribution margin and the contribution margin ratio for each sales representative (round to two decimal places) Before calculating the total contribution margin, begin by identifying and calculating the total number of tables and chairs sold by each sales representative for the period.
Sales representative Tables sold Chairs per table Total chairs sold
Archie
Bryce
Cory
Answer:
contribution margin CMR (%)
Archie $51,100 39.9%
Bryce $26,500 20.7%
Cory $50,400 39.4%
Total $128,000 100%
Explanation:
sales price per table $1,100
variable production costs $715
sales commissions $55
contribution margin per table $330
sales price per chair $100
variable production costs $45
sales commissions $5
contribution margin per chair $50
Archie sold 70 tables and 560 chairs, total contribution margin:
tables ⇒ 70 x $330 = $23,100
chairs ⇒ 560 x $50 = $28,000
total = $51,100
Bryce sold 50 tables and 200 chairs, total contribution margin:
tables ⇒ 50 x $330 = $16,500
chairs ⇒ 200 x $50 = $10,000
total = $26,500
Cory sold 80 tables and 480 chairs, total contribution margin:
tables ⇒ 80 x $330 = $26,400
chairs ⇒ 480 x $50 = $24,000
total = $50,400
contribution margin %
Archie $51,100 39.9%
Bryce $26,500 20.7%
Cory $50,400 39.4%
Total $128,000 100%
During August, Boxer Company sells $359,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $13,100 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,700 in parts for repairs. The entry to record the customer warranty repairs is:
Answer:
Dr Estimated Warranty Liability $9,700
Cr Parts Inventory $9,700.
Explanation:
Preparation of the entry to record the customer warranty repairs
Based on the information given we were told that Customers had to returned the merchandise for warranty repairs in which the amount of $9,700 was used in parts for repairs this means the journal entry to record the customer warranty repairs will be:
Dr Estimated Warranty Liability $9,700
Cr Parts Inventory $9,700.
Ranger Corporation is currently selling widgets for $40 at a cost of $20 per unit. Fixed costs are currently $500 and the current production is 100 widgets. What is the Operating Cash Flow at this output level
Answer: $2000
Explanation:
From the question, we are informed that Ranger Corporation is currently selling widgets for $40 at a cost of $20 per unit and that the fixed costs are currently $500 and the current production is 100 widgets.
The Operating Cash Flow at this output level will be:
= (P - V) × Q
where p = selling price = $40
v = cost price = $20
q = quantity = 100
= ($40 - $20) × 100
= $20 × 100
= $2000
All of the following items should be considered when setting an export price
except
A. The tariff rate and value-added tax.
B. Transportation costs.
C. Prices of substitutes in foreign markets.
D. Repatriation restrictions
Answer:
D. Repatriation restrictions should not affect the prices of commoditiesExplanation:
Repatriation has to do with the conversion of foreign currency to home based currency. this is done in a bid to carry out international transaction effectively
while these items affects the prices of export
A. The tariff rate and value-added tax.
B. Transportation costs.
C. Prices of substitutes in foreign markets.
Suppose today is May 1, 2014, and your firm produces breakfast cereal and needs 90,000 bushels of corn in July 2014 for an upcoming promotion. You would like to lock in your costs today because you are concerned that corn prices might rise between now and July. Each contract is for 5,000 bushels; the settle price for July 2014 is $5.19 per bushel. Suppose corn prices are $5.09 per bushel in July. What will your cumulative mark to market be
Answer:
$467,100
Explanation:
The solution of cumulative mark to market is shown below:-
Total cost for 90,000 bushels = Per bushel × Needed bushels
= $5.19 × 90,000
= $467,100
Therefore for calculating the total cost we simply applied the above formula i.e by multiplying the per bushel with the needed bushels so that the total cost for 90,000 bushels could arrive
MacKenzie Company sold $620 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 5.0% service charge for sales on its credit cards. MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately. The journal entry to record this sale transaction would be:
Answer:
DR Cash $589
DR Credit Card expense $31
CR Sales $620
(To record sales via credit card)
Working
Cash
= 620 * ( 1 - 5%)
= $589
Credit Card Expense
= 620 * 5%
= $31
Trade-offs must be made among space, labor, and ____ with respect to warehousing design. Group of answer choices Construction materials Speed Mechanization Cost
Answer:
Mechanization
Explanation:
When a ware house is being setup, the aim is to get an efficient one that can service demand in a timely manner.
In order to minimise cost and maximise efficiency there is need to space, labour, and mechanisation that will be used on the production process.
Various analysis like capacity analysis and equipment analysis are carried out to ensure fast and cheap operation of the warehouse.
Inefficient warehouse designs leads to delay in service delivery and extra cost to the business.
Beatrice invests $1,320 in an account that pays 4 percent simple interest. How much more could she have earned over a 5-year period if the interest had been compounded annually
Answer:
How much more earned is $21.98
Explanation:
Calculation of the amount earned when investment in paying on simple interest
Interest = Amount * Interest rate * No of years
Interest = 1320 * 4% * 5
Interest = $264
Total amount = Interest + Amount invested
Total amount = $1320 + 264
Total amount = $1,584
Therefore, the total amount earned when earning on simple interest of 4% is $1,584
Calculation of the amount earned when investment interest in paying compounded annually
Pv= 1320
n= 5
i= 4%
Fv= ?
Fv= P(1+i)^-n
Fv= 1320(1+0.04)^5
Fv= 1320(1.04)^5
Fv= 1320(1.216652)
Fv= $1605.98
Therefore, the total amount earned when earning on interest compounded annually is $1,605.98
Calculation of how much more earned
Amount earned = Amount earned as per compounded interest - Amount earned as per simple interest
Amount earned = $1,605.98 - $1,584
Amount earned = $21.98
Therefore, how much more earned is $21.98
Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 24,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $36,000 Direct labor 8,640 Total $44,640 The standard materials price is $0.6 per pound. The standard direct labor rate is $9 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $33,400 Actual direct labor 8,000 Total $41,400 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 21,600 units during June. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials quantity variance $ 2.5 Favorable Direct labor time variance
Answer:
$1,000 unfavorable and $224 unfavorable
Explanation:
The computation of the direct material quantity variance and the direct labor time variance is shown below:
For direct material quantity variance:
= (Standard direct materials ÷ bugeted toy × actually produced) - actual direct materials
= ($36,000 ÷ $24,000 × 21,600 units) - $33,400
= $32,400 - $33,400
= $1,000 unfavorable
For direct labor time variance
= (Standard direct labor ÷ bugeted toy × actually produced) - actual direct labor
= ($8,640 ÷ $24,000 × 21,600 units) - $8,000
= $7,776 - $8,000
= $224 unfavorable
In your opinion, does having two different existing labor federations (AFL-CIO and Change to Win) strengthen or weaken the ability of organized labor to represent the interests of employees today? Support your position.
Answer:
They weaken their ability to represent the interests of employees
Explanation:
The two organizations American Federation of Labor(AFL) and Congress of Industrial organizations(CIO) work differently regarding their approach to representing labor or employees. They have had disagreements in the past, from CIO breaking out of AFL to some violent exchanges and differing policies to representing labour. These differences make it less effective to represent employees as these unions are not entirely unified.
Net sales $296,000 Cost of goods sold 138,000 Average inventory 50,000 What is the average days in inventory (round to the nearest whole day)?
Answer:
132 days
Explanation:
average days in inventory = number of days in a period / inventory turnover
Inventory turnover = costs of good sold / average inventory
Inventory turnover = 138,000 / 50,000 = 2.76
assuming a 365 day period, average days in inventory = 132.25 days = 132 days
Employees earn vacation pay at the rate of one day per month. During the month of July, 19 employees qualify for one vacation day each. Their average daily wage is $94 per day. What is the amount of vacation benefit expense to be recorded for the month of July
Answer:
$1,786
Explanation:
Calculation for the amount of vacation benefit expense to be recorded for the month of July
Using this formula
Vacation beneift expenses= Numbers of qualified employees ×Average daily wage
Let plug in the formula
Vacation benefit expenses =19×$94
Vacation benefit expenses =$1,786
Therefore the amount of vacation benefit expense to be recorded for the month of July will be $1,786
Assume that over the past 85 years, the total annual returns on large-company common stocks averaged 12.3 percent, small-company stocks averaged 17.4 percent, long-term government bonds averaged 5.7 percent, and U.S. T-bills averaged 3.8 percent. What was the average risk premium earned by long-term government bonds, and small-company stocks respectively?
Answer:
1.9%
13.6%
Explanation:
Average risk premium earned by long-term government bonds =
long term average returns on Government bonds - average returns on US T-bills = 5.7% - 3.8% = 1.9%
Average risk premium earned by small-company stocks =
average returns on Company stock - average returns on US T-bills = 17.4% - 3.8% = 13.6%