Answer:
Nash's Contractor
Gross profit that should be recorded for 2020, 2021, and 2022:
Percentage -of completion Completed-contract
2020 $___667,500_____ 2020 $___0_____
2021 $____361,395____ 2021 $____0____
2022 $____121,105____ 2022 $____1,150,000____
Explanation:
a) Data and Calculations:
Contract price = $5,700,000
Estimated construction costs = $3,920,000
Project completion date = 2022
Costs and Billings:
2020 2021 2022
Total costs incurred to date $1,470,000 $2,580,000 $4,550,000
Estimated costs to complete 2,450,000 1,720,000 -0-
Customer billings to date 2,100,000 3,920,000 5,500,000
Collections to date 1,900,000 3,400,000 5,400,000
Percentage of completion:
2020:
Revenue = $2,137,500 ($1,470,000/$3,920,000 * $5,700,000)
Cost incurred = 1,470,000
Gross profit = $667,500
2021:
Revenue = $1,471,395 ($1,110,000/$4,300,000 * $5,700,000)
Cost incurred = 1,110,000
Gross profit = $361,395
2022:
Revenue = $2,091,105 ($5,700,000 - $2,137,500 - $1,471,395)
Cost incurred 1,970,000
Gross profit = $121,105
Completed contract
2022: Revenue = $5,700,000
Total costs = 4,550,000
Gross profit = $1,150,000
A sporting goods manufacturer budgets production of 59,000 pairs of ski boots in the first quarter and 50,000 pairs in the second quarter of the upcoming year. Each pair of boots requires 2 kilograms (kg) of a key raw material. The company aims to end each quarter with ending raw materials inventory equal to 20% of the following quarter's material needs. Beginning inventory for this material is 23,600 kg and the cost per kg is $8. What is the budgeted materials purchases cost for the first quarter?
Answer:
Purchases= 114,400 kg
Total purchase cost= $915,200
Explanation:
Giving the following information:
Beginning inventory= 23,600 kg
Cost per kg= $8
Production= 59,000 pairs
Desired ending inventory= (50,000*0.2)*2= 20,000 kg
To calculate the purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 59,000*2 + 20,000 - 23,600
Purchases= 114,400 kg
Total purchase cost= 114,400*8= $915,200
What would you prefer, a savings account that pays 10% interest compounded semiannually or one that pays 10% interest compounded daily? Explain.
Answer:
10% interest compounded daily will be preferable
Explanation:
In the first case, compounding occurs twice (semiannually)
In the second case, compounded occurs 365 days.
Note that compounding is earning interest on principal plus the already accumulated interest amount.
In the first case the Annual Percentage Rate (APR) would be:
= (1 + 10%/2)^2 - 1
= 0.1025
= 10.25%
In the second case the Annual Percentage Rate APR would be:
= (1 + 10%/365)^365 - 1
= 1.00027397^365 - 1
= 1.105154 - 1
= 0.105154
= 10.51%
So, 10% interest compounded daily will be preferable as it yield more.
Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones.
Pictech Pricing
High Low
Flashfone Pricing High 11, 11 2, 18
Low 18, 2 10, 10
For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $18 million, and Pictech will earn a profit of $2 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.
a. If Flashfone prices high, Pictech will make more profit if it chooses a (high,low) _____ price, and if Flashfone prices low, Pictech will make more profit if it chooses a(high,low)_______ price.
b. If Pictech prices high, Flashfone will make more profit if it chooses a(high,low)______price, and if Pictech prices low, Flashfone will make more profit if it chooses a (high,low) ______ price.
c. Considering all of the information given, pricing high (is, is not) ______ a dominant strategy for both Flashfone and Pictech.
Answer:
Flashfone and Pictech
a. If Flashfone prices high, Pictech will make more profit if it chooses a (high,low) __low___ price, and if Flashfone prices low, Pictech will make more profit if it chooses a(high,low)___low____ price.
b. If Pictech prices high, Flashfone will make more profit if it chooses a(high,low)__low____price, and if Pictech prices low, Flashfone will make more profit if it chooses a (high,low) __low____ price.
c. Considering all of the information given, pricing high (is, is not) _is not_ a dominant strategy for both Flashfone and Pictech.
Explanation:
a) Data and Calculations:
Pictech Pricing
High Low
Flashfone Pricing High 11, 11 2, 18
Low 18, 2 10, 10
b) A dominant strategy exists if Pictech or Flashfone would implement a particular strategy that benefits it no matter what the other firm does.
Do you feel it is easier or harder to deliver a presentation online versus face to face? Why?
Answer:
I think it easier in person
Explanation:
This is due to the fact that I can see the people and can understand if people are paying attention or if I need to alter the material a bit.
Lakeside Rides is adding a new roller coaster to its amusement park. The firm expects this addition to increase its overall ticket sales and increase attendance at its park. In particular, the firm expects to sell more tickets for its current roller coaster and experience extremely high demand for its new coaster. Sales for its boat ride are expected to decline but food and beverage sales are expected to increase significantly. Which of the following are considered side effects associated with the new roller coaster?
a. ticket sales for the new roller coaster
b. change in ticket sales for the existing roller coaster
c. change in ticket sales for the boat ride
d. change in food and beverage sales
Answer:
b. change in ticket sales for the existing roller coaster
c. change in ticket sales for the boat ride
d. change in food and beverage sales
Explanation:
The side effects that along with the new roller coaster is as follows:
a. There should be the change in the sale of the ticket with respect to the existing roller coaster
b. There should be the change in the sale of the ticket with respect to the boat ride
c. Also, there should be the change in the sale for food & beverages
So the above represent the side effects
Hence, b, c and d are the correct options
The marketing manager at Home Depot works with Hunt Advertising to coordinate all promotional messages for a product or a service. For example, to sell the new line of lighting fixtures, the marketing manager and Hunt Advertising make sure that all messages are consistent at every contact point at which Home Depot interacts with the consumer. This is an example of _______.
Answer:
Promotional mix
Explanation:
Since in the given situation, coordinate the promotional messages for promoting the product or a service so here the promoting tenchique would be considered that means the company promotes its product via marketing manager and the advertiser who is third party
So according to the given case, this is an example of promotional mix
Exercise 07-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co. budgets production of 2,850 units during the second quarter. Other information is as follows: Direct labor Each finished unit requires 6 direct labor hours, at a cost of $9 per hour. Variable overhead Applied at the rate of $11 per direct labor hour. Fixed overhead Budgeted at $640,000 per quarter. 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget.
Answer:
See below
Explanation:
1. Total Direct labor
Addison Co.
Direct labor budget for second quarter
Budgeted production units 2,850
Direct labor hour per one unit 6
Total direct labor hours needed 17,100
Cost per one direct labor $9
Total direct labor $153,900
2. Total factory overhead budget
Addison Co. Factory overhead for second quarter
Total direct labor hours needed 17,100
Variable rate per direct labor hour $11
Budgeted variable overhead $188,100
Budgeted fixed overhead $640,000
Total factory overhead $828,100
Gabbe Industries is a division of a major corporation. Last year the division had total sales of $24,040,500, net operating income of $3,726,278, and average operating assets of $7,755,000. The company's minimum required rate of return is 18%. Required: a. What is the division's margin? (Round your percentage answer to 2 decimal places.) b. What is the division's turnover? (Round your answer to 2 decimal places.) c. What is the division's return on investment (ROI)? (Round percentage your answer to 2 de
Answer:
See
Explanation:
Part A
Division's margin = Net operating income/Total sales
= $3,726,278/$24,040,500
= 0.155
Division's margin = 15.5%
Part B
Division's turnover = Total sales/Average operating assets
= $24,040,500/$7,755,000
= 3.1
Division's turnover = 3.1 times
Part C
The division's return on investment
= Net operating income/Average operating assets
= $3,726,278/$7,755,000
= 0.481
The division's return on investment is 48.1%
Calculate the transaction value (in $ thousands) of a theoretical company based on the information provided below. Current Share Price $18.00 Shares Outstanding (Thousands) 5,000 Total Debt ($ Thousands) $3,700 Cash ($ Thousands) $2,100 Acquisition Premium 10% Review Later $82,600 $115,700 $97,600 $100,600
Answer:
The Transaction Value (in $ thousands) is:
= $97,240
Explanation:
a) Data and Calculations:
Current Share Price $18.00
Shares Outstanding (Thousands) 5,000
Total market value = $90,000 ($18 * 5,000)
Total Debt ($ Thousands) $3,700
Cash ($ Thousands) $2,100
Net liability = $1,600 ($3,700 - $2,100)
Net fair value = $88,400
Acquisition Premium 10%
Premium = $8,840 ($88,400 * 10%)
Acquisition or Transaction value = $97,240 ($88,00 * 1.1)
b) The transaction value is the acquisition value of the theoretical company.
definition of business by different authors
Answer:
The term business has been defined by different authors from time to time as follows: “A business is nothing more than a person of group of persons properly organize to produce or distribute goods or services.
Explanation:
Answer:
The term business has been defined by different authors from time to time as follows: “A business is nothing more than a person of group of persons properly organize to produce or distribute goods or services.
Which of the following is step three in the six-step process for creating a financial plan?
implement a finalized plan
evaluate alternatives and risk factors
make a financial plan
work with the client to set financial goals
Answer:
evaluate alternatives and risks factors
In the context of customer benefit packages,__________are those that are not essential to the primary service, but enhance it.
a.
central services
b.
peripheral services
c.
tertiary services
d.
core services
Shirine has been debating between two career pathways in finance. She creates a Venn diagram to compare the two careers. In a Venn diagram, the separate circles contain characteristics unique to each item being compared and the intersection contains characteristics that are common to both items being compared. This is the Venn diagram that Shirine creates:
A Venn diagram.
Title 1 has Sets up and oversees customer accounts; Analyzes how much to grant in loans; Possible Careers: Teller, Loan Officer, Credit Checker.
Title 2 has Analyzes how to grow customers' money; Deals with securities and commodities; Possible Careers: Personal Finance Advisor, Treasurer, Risk Management Analyst. The area of overlap has Deals with money, Works with customers.
Which accurately labels the titles in Shirine’s diagram?
a) Title 1 should be Investment Career Pathway, and Title 2 should be Banking Career Pathway
b) Title 1 should be Banking Career Pathway, and Title 2 should be Investment Career Pathway
c) Title 1 should be Banking Career Pathway, and Title 2 should be Financial Management Career Pathway
d) Title 1 should be Financial Management Career Pathway, and Title 2 should be Investment Career Pathway
Answer:
d) Title 1 should be Financial Management Career Pathway, and Title 2 should be Investment Career Pathway
Explanation:
i believe its D but im not exactly sure
Answer:
D
Explanation:
Bramble Company established a petty cash fund on May 1, cashing a check for $105. The company reimbursed the fund on June 1 and July 1 with the following results. June 1: Cash in fund $3.40. Receipts: delivery expense $27.40, postage expense $37.90, and miscellaneous expense $33.30. July 1: Cash in fund $3.95. Receipts: delivery expense $20.95, entertainment expense $53.20, and miscellaneous expense $26.90. On July 10, Bramble increased the fund from $105 to $135.00. Prepare journal entries for Bramble Company for May 1, June 1, July 1, and July 10.
Answer:
May 01
Dr Petty cash $105
Cr Cash $105
Jun 01
Dr Delivery Expense $27.40
Dr Postage Expense $37.90
Dr Miscellaneous Expense $33.30
Dr Cash over/short $3.00
($101.6-$27.40-$37.90-$33.30)
Cr Petty Cash $101.6
Jul 01
Dr Delivery expense $27.40
Dr Entertainment expense $53.20
Dr Miscellaneous expense $33.30
Cr Petty Cash $113.9
Jul 10
Dr Petty cash $30.00
Cr Cash $30.00
Explanation:
Preparation of the journal entries for Bramble Company for May 1, June 1, July 1, and July 10
May 01
Dr Petty cash $105
Cr Cash $105
Jun 01
Dr Delivery Expense $27.40
Dr Postage Expense $37.90
Dr Miscellaneous Expense $33.30
Dr Cash over/short $3.00
($101.6-$27.40-$37.90-$33.30)
Cr Petty Cash ($105 - $3.40) $101.6
Jul 01
Dr Delivery expense $27.40
Dr Entertainment expense $53.20
Dr Miscellaneous expense $33.30
Cr Petty Cash $113.9
($27.40+$53.20+$33.30)
Jul 10
Dr Petty cash $30.00
Cr Cash $30.00
($135-$105)
Q 9.20: City Mission is a not-for-profit organization that provides hot meals, living quarters, and showers for homeless people. Based on their yearly budget, they expect to spend $450,000 on food expenses, $350,000 on housing expenses, $280,000 on staff salaries, $90,000 on utilities, and $118,000 on other expenses. How much will City Mission need to raise in donations
Answer:
at least $1,288,000 in donation
Explanation:
With regards to the above information, we would add up all the expenses to arrive at how much donation that need City Mission needs to raise.
= Expenses on food + Housing expenses + Staff salaries + Utilities + Other expenses
= $450,000 + $350,000 + $280,000 + $90,000 + $118,000
= $1,288,000
The above is a large sum of money to raise only from donations, and by right a level or various levels of government should help pay for these expenses as no one go homeless either that or provide low cost homes for the homeless.
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:
Fixed Cost per Month Cost per Car Washed
Cleaning supplies $0.80
Electricity $1,200 $0.15
Maintenance $0.20
Wages and salaries $5,000 $0.30
Depreciation $6,000
Rent $8,000
Administrative expenses $4,000 $0.10
For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The actual operating results for August are as follows:
Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed 8,800
Revenue $43,080
Expenses:
Cleaning supplies 7,560
Electricity 2,670
Maintenance 2,260
Wages and salaries 8,500
Depreciation 6,000
Rent 8,000
Administrative expenses 4,950
Total expense 39,940
Net operating income $3,140
Prepare a flexible budget performance report that shows the company’s revenue and spending variances and activity variances for August.
Answer:
Lavage Rapide
Lavage Rapide
Income Statement
For the Month Ended August 31
Actual Planning Flexible Variances
Cars washed 8,800 9,000 8,800 Activity Spending
Revenue $43,080 44,100 43,120 $1,020 U $40 F
Expenses:
Cleaning supplies 7,560 $7,200 $7,040 $360 U $520 U
Electricity 2,670 2,550 2,520 $120 U $150 U
Maintenance 2,260 1,800 1,760 $460 U $500 U
Wages and salaries 8,500 7,700 7,640 $800 U $860 U
Depreciation 6,000 6,000 6,000 None None
Rent 8,000 8,000 8,000 None None
Administrative expenses 4,950 4,900 4,880 $50 U $70 U
Total expense 39,940 38,150 37,840 $1,790 U $2,100 U
Net operating income $3,140 $5,950 $5,280 $2,810 $2,140 U
Explanation:
a) Data and Calculations:
Company's Costs:
Fixed Cost Cost per
per Month Car Washed
Cleaning supplies $0.80
Electricity $1,200 $0.15
Maintenance $0.20
Wages and salaries $5,000 $0.30
Depreciation $6,000
Rent $8,000
Administrative expenses $4,000 $0.10
Expected number of cars = 9,000 cars
Service price per car wash = $4.90
Actual operating results for August:
Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed 8,800
Revenue $43,080
Expenses:
Cleaning supplies 7,560
Electricity 2,670
Maintenance 2,260
Wages and salaries 8,500
Depreciation 6,000
Rent 8,000
Administrative expenses 4,950
Total expense 39,940
Net operating income $3,140
Planning Budget:
Fixed Cost Cost per
per Month Car Washed Total
Cleaning supplies $7,200 (9,000 * $0.80) $7,200
Electricity $1,200 $1,350 (9,000 * $0.15) $2,550
Maintenance $1,800 (9,000 * $0.20) $1,800
Wages and salaries $5,000 $2,700 (9,000 * $0.30) $7,700
Depreciation $6,000 $6,000
Rent $8,000 $8,000
Administrative expenses $4,000 $900 (9,000 * $0.10) $4,900
Flexible budget:
Fixed Cost Cost per
per Month Car Washed Total
Cleaning supplies $7,040 (8,800 * $0.80) $7,040
Electricity $1,200 $1,320 (8,800 * $0.15) $2,520
Maintenance $1,760 (8,800 * $0.20) $1,760
Wages and salaries $5,000 $2,640 (8,800 * $0.30) $7,640
Depreciation $6,000 $6,000
Rent $8,000 $8,000
Administrative expenses $4,000 $880 (8,800 * $0.10) $4,880
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 December 31 Direct materials $ 77,000 $ 40,000 Work in process 66,000 42,000 Finished goods 115,000 100,000 Other information Direct materials purchases $ 324,000 Cost of goods available for sale 950,000 Actual factory overhead costs 260,000 The cost of direct materials used for production is:
Answer:
$361,000
Explanation:
Direct materials used = Beginning Materials + Purchases - Ending Materials
therefore,
Direct materials used = $ 77,000 + $ 324,000 - $ 40,000 = $361,000
Conclusion
The cost of direct materials used for production is $361,000.
Ruben, Gerald, and Norma all work for the same company. Gerald and Norma both evaluate the company’s financial picture, but Gerald looks at liabilities and Norma looks at expenditures. Both Gerald and Norma make reports for Ruben, who makes the decisions for the company.
Which best describes the jobs of the three employees?
Ruben is the Risk Management Specialist, Gerald is the Budget Analyst, and Norma is the Treasurer.
Ruben is the Treasurer, Gerald is the Risk Management Specialist, and Norma is the Budget Analyst.
Ruben is the Treasurer and Gerald and Norma are the Risk Management Specialists.
Ruben is the Treasurer and Gerald and Norma are the Budget Analysts.
Answer:
The correct answer is (B)
Explanation:
Trust homie
Answer:
SUPPPERRR late but im dont the unit test right know
The answer is "Ruben is the Treasurer, Gerald is the Risk Management Specialist, and Norma is the Budget Analyst."
Welcome
Explanation:
Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April: Cutting Assembly Finishing direct materials $7,000 $10,000 $3,000 direct labor 3,000 14,000 2,000 applied overhead 4,000 5,000 6,000 There were no work in process inventories and 1,000 podiums were produced. What is the cost transferred out of the assembly department. a.$29,000 b.$43,000 c.$54,000 d.$14,000 e.None of these choices are correct.
Answer:
a. $29,000
Explanation:
With regards to the above, the cost transferred out of the assembly department is computed as;
We would sum up all the cost associated with the Assembly department.
= Direct materials + Direct labor + Overhead
Direct materials = $10,000
Direct labor = $14,000
Overhead = $5,000
Therefore, cost transfered out of the assembly department is
= $10,000 + $14,000 + $5,000
= $29,000
The use of property, plant, and equipment and intangible assets represents a consumption of benefits, or service potentials, inherent in the assets.
a. True
b. False
Answer:
a. True
Explanation:
Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.
The four factors of production are;
I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.
II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.
III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.
IV. Entrepreneurship: it is intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).
The expense recognition principle is an accounting principle which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.
Additionally, the expense recognition principle helps business owners to calculate their taxes and profits or losses properly.
The use of property, plant, and equipment and intangible assets represents a consumption of benefits, or service potentials, inherent in the assets.
Generally, the cost associated with these service potentials or inherent consumption benefits should be considered or recognized by the business firm as expenses over the specific period they are used to generate revenue for the business.
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2015 $ 134 $ 3 2016 150 3 2017 125 3 2018 130 3 An investor buys five shares of XYZ at the beginning of 2015, buys another two shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all six remaining shares at the beginning of 2018. a. What are the arithmetic and geometric average time-weighted rates of return for the investor
Answer:
a. We have:
Arithmetic mean = 2.62%
Geometric mean = 1.82%
b. From the attached excel file, the total cash flow for each year are as follows:
January 1, 2015 Total Cash Flow = -$650
January 1, 2016 Total Cash Flow = -$273
January 1, 2017 Total Cash Flow = $141
January 1, 2018 Total Cash Flow = $768
Explanation:
Note: The requirement of this question is not complete. The complete requirement is therefore given before answering the question as follows:
a. What are the arithmetic and geometric average time-weighted rates of return for the investor.
b. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018.
The explanation of the answer is now given as follows:
The following sorted table is given in the question:
Year Beginning-of-Year Price Dividend Paid at Year-End
2015 $ 134 $ 3
2016 150 3
2017 125 3
2018 130 3
a. What are the arithmetic and geometric average time-weighted rates of return for the investor.
The arithmetic and geometric average time-weighted rates of return for the investor can be calculated as follows:
Arithmetic average return = Sum of returns/ number of years ………....….. (1)
Geometric average return = n * ((1+r1)*(1+r2)*(1+r3)…(1+rn)^(1/n) - 1 .……….. (2)
Where;
n = years 1, 2, 3….
r1, r2, r3… are the returns for year 1, 2, 3….
Return for each year = ((Current year Beginning-of-Year Price – Previous year Beginning-of-Year Price) + dividend) / Previous year Beginning-of-Year Price .................... (3)
Using equation (3), we have:
2016 Return = ((150 - 134) + 3) /134 = 0.141791044776119
2017 Return = ((125 - 150) + 3) /150 = -0.146666666666667
2018 Return = ((125 - 120) + 5) /120 = 0.0833333333333333
Using equation (1), we have:
Arithmetic mean = (2016 Return + 2017 Return + 2018 Return) / 3 = (0.1417910447761190 - 0.1466666666666670 + 0.0833333333333333) / 3 = 0.0262, or 2.62%
Using equation (2), we have:
Geometric mean = ((1 + 2016 Return) * (1 + 2017 Return) * (1 + 2018 Return))^(1/3) - 1 = ((1 + 0.141791044776119) * (1 - 0.146666666666667) * (1 + 0.0833333333333333))^(1/3) - 1 = 0.0182, or 1.82%
b. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018.
Note: See the attached excel file for the chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018.
In the attached excel file, Beginning-of-Year Price for January 1, 2015 and January 1, 2016 are negative because the purchase of stock is a cash outflow.
CPU-on-Demand (CPUD) offers real-time high-performance computing services. CPUD owns 1 supercomputer that can be accessed through the Internet. Their customers send jobs that arrive on average every 5 hours. The standard deviation of the interarrival times is 5 hours. Executing each job takes on average 3 hours on the supercomputer and the standard deviation of the processing time is 4.5 hours. How long does the customer have to wait to have the job completed?
Answer:
61 hours
Explanation:
Gundy Company expects to produce 1,243,200 units of Product XX in 2020. Monthly production is expected to range from 79,000 to 121,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $3. In March 2020, the company incurs the following costs in producing 100,000 units: direct materials $425,000, direct labor $695,000, and variable overhead $1,005,000. Actual fixed costs were equal to budgeted fixed costs.
Required:
Prepare a flexible budget report for March.
Answer:
Gundy Company
Flexible Budget Report for the month of March, 2020:
Flexible Budget Actual Budget Variance
Direct materials $400,000 $425,000 $25,000 U
Direct labor $700,000 $695,000 $5,000 F
Overhead $1,000,000 $1,005,000 $5,000 U
Fixed Cost $632,000 $632,000 $0 None
Explanation:
a) Data and Calculations:
Expected production units for 2020 = 1,243,200
Monthly production range = 79,000 to 121,000
Budgeted variable manufacturing costs per unit are:
Direct materials $4
Direct labor $7
Overhead $10
Total variable cost $21
Budgeted fixed manufacturing costs per unit:
Depreciation $5
Supervision $3 $8
Total costs $29
Total fixed cost = 79,000 * $8 = $632,000
Actual costs incurred in March 2020:
Production units = 100,000
Direct materials = $425,000 ($4.25 per unit)
Direct labor = $695,000 ($6.95 per unit)
Variable overhead = $1,005,000 ($10.05 per unit)
Actual fixed costs = $632,000
Flexible Budget:
Direct materials $400,000 ($4 * 100,000)
Direct labor $700,000 ($7 * 100,000)
Overhead $1,000,000 ($10 * 100,000)
Fixed Cost $632,000
Discounting Cash Flows and Earnings. Under the residual income approach and the discounted cash flow approach to firm valuation, carnings and cash flows, respectively, are discounted using a firm's cost of equity. Discuss why the cost of equity is the appropriate discount rate to use to discount a firm's camings and cash flows. Why is the cost of debt inappropriate to use to discount a firm's earnings or cash flows
Answer:
Cost of debt is used for external source of finance whereas cost of equity is used for internal source of finance.
Explanation:
Debt is the fund borrowed from lender at a standard rate of interest. Equity is fund acquired by the investors and shareholders. The required rate of return for equity is higher than the rate of return to the debt holders. This is because debt holders are safe and they are paid first in case of a bankruptcy and liquidity situation of a company. Debt is considered as cheap source of finance but acquiring higher debt will increase company gearing. It is not suitable to use cost of debt as discount factor for the cash flows of the company. The best and ideal discount factor is WACC which is derived by the combination of debt and equity.
What are references?
Answer:
Explanation:
Let us say you are doing an essay on the gold trade on the comex. You have to read something to understand what it means to buy gold on the comex. You need to at least know what it takes to buy and sell on the comex.
What you read to find out is a reference. It has to be listed in a Bibliography which is a list of references.
When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook. a) If the fixed cost in producing the bicycles is $2800, find the total cost to produce 30 bicycles. Answer: $ 4718.9869 equation editorEquation Editor b) If the bikes are sold for $200 each, what is the profit (or loss) on the first 30 bikes
The question is incomplete. The complete question is :
A manufacturer of mountain bikes has the following marginal cost function:
[tex]$C'(q)=\frac{700}{0.7q+8}$[/tex]
where q is the quantity of bicycles produced.
When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook.
a) If the fixed cost in producing the bicycles is $2800, find the total cost to produce 30 bicycles?
b) If the bikes are sold for $200 each, what is the profit (or loss) on the first 30 bikes?
Solution :
Given :
[tex]$C'(q)=\frac{700}{0.7q+8}$[/tex]
a). Fixed cost, FC = $ 2800
Total cost to produce 30 bicycles is :
[tex]$C = 2800 + \int_0^{30} C'(q) \ dq$[/tex]
[tex]$ = 2800 + \int_0^{30} \frac{700}{0.7q+8} \ dq$[/tex]
[tex]$= 2800+700\left[\frac{\ln (0.7q+8)}{0.7}\right]^{30}_0$[/tex]
[tex]$=2800+1000[\ln ((0.7 \times 30)+8)- \ln 8 ]$[/tex]
[tex]$= 2800 +1000 [\ln 29 - \ln 8]$[/tex]
= 2800 + 1287.85
= $ 4087.85
b). Total selling price = $ (200 x 30)
= $ 6000
Profit = 6000 - 4087.85
= $ 1912.15
Ruben, Gerald, and Norma all work for the same company. Gerald and Norma both evaluate the company’s financial picture, but Gerald looks at liabilities and Norma looks at expenditures. Both Gerald and Norma make reports for Ruben, who makes the decisions for the company.
Which best describes the jobs of the three employees?
Ruben is the Risk Management Specialist, Gerald is the Budget Analyst, and Norma is the Treasurer.
Ruben is the Treasurer, Gerald is the Risk Management Specialist, and Norma is the Budget Analyst.
Ruben is the Treasurer and Gerald and Norma are the Risk Management Specialists.
Ruben is the Treasurer and Gerald and Norma are the Budget Analysts.
Answer:
b:Ruben is the Treasurer, Gerald is the Risk Management Specialist, and Norma is the Budget Analyst.
Explanation:
The statement that best describes the jobs of the three employees is: b:Ruben is the Treasurer, Gerald is the Risk Management Specialist, and Norma is the Budget Analyst.
What is Treasurer, Risk management specialist and Budget Analyst?Ruben the Treasurer: A treasure is someone whose sole responsibility is:
To accept cashTo account for cash or money collectedTo manage finance etcGerald the Risk management Specialist: A risk management specialist is someone who is assign to effectively manage a company or an organization risk that can have a negative impact on the company.
Norma the Budget Analyst: A budget Analyst is someone whose duty is to evaluate and analyze a company or an organization budget.
Therefore the correct option is B.
Learn more about Treasurer, Risk management specialist and Budget Analyst here:https://brainly.com/question/8922870
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A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is _____________ and ___________. Thus, the visual appearance would be classified as a public good.
Suppose the college administrators estimate that the beautification initiative will cost $2,040. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 420 students, asking each of them their willingness-to-pay for the beautification project. The average willingness-to-pay, as revealed by the survey, is $12.
The benefit of the beatification initiative, as suggested by the survey, is $ __________ Because the estimated benefit is ____________ than the
cost, the college administrators ______________ undertake the beautification in initiative.
The calculation of the benefit of the beatification initiative relied on the ability of the administrators to accurately capture the true willingness-to-pay of each student.
Which of the following scenarios would cause the survey used by the college administrators to yield misleading willingness-to-pay data? Check all that apply.
a. Students believe that if the initiative does not happen, the funds for the initiative Will not be spent elsewhere.
b. An equal number of male and female students were surveyed.
Answer:
non rival, non excludable
$5040
greater
will
a. Students believe that if the initiative does not happen, the funds for the initiative Will not be spent elsewhere.
Explanation:
A public good is a good that is non excludable and non rivalrous.
Because a student is enjoying the visual appearance of the campus, another student is not prevented from enjoying the visual appearance of the campus. This means that the beautification initiative is non rivalrous
There is no way to prevent any student from viewing the initiative. This means it is non excludable
Benefit can be calculated using the willingness to pay of student
the price a student is willing to pay would be dependent on the amount of benefit she expects to derive from the project
benefit = 420 x $12 = $5040
The beautification initiative generates a positive externality
A good or initiative has positive externality if the benefits to third parties not involved in production is greater than the cost
Because the good generates positive externality, the initiative should be carried out
If . Students believe that if the initiative does not happen, the funds for the initiative Will not be spent elsewhere, they would quote a lower willingess to pay
Focused reports help managers ____________ the challenge before recommending solutions. Reports that present data without conducting analysis arei ______________.
Like other business messages, reports can range from informal to formal depending on their purpose, audience, and setting. Which of the following contributes to an informal writing style?
a. Absence of humor
b. Passive voice verbs
c. Familiar words
d. Use of contractions
Answer: analyze, informational reports;
the use of contractions
Explanation:
Focused reports help managers (analyze) the challenge before recommending solutions. Reports that present data without conducting analysis are (informational reports)
b. The option that contributes to an informal writing style is ( the use of contractions). Other informal writing styles are:
• First-person pronouns
• Active-voice verbs
• Conversational language
Home Inspirations. Hailey works for her father in a family-owned business called Home Inspirations, a bedding company that has been in operation since the 1800s. When her father retires, Hailey plans on taking over the business. Hailey is aware of many things about the company that she likes, and a few things that she does not. She has particularly noted that when the economy has low unemployment and high total income, sales are great. However, at any other time, sales are not so good.
Currently, all of the bedding items are created in one place and everyone works on various tasks every day. Hailey is thinking about streamlining the production process so that individuals would be responsible for only one task. She believes that if production would increases, she could sell her products at a lower price and increase revenue. She knows that most bedding products available in the market are very similar in nature and satisfy the same need. However, if she were able to lower prices, this might give her company the competitive advantage that it needs. She would then be able to invest money in differentiating her products by providing unique features, building the brand name, and offering services such as free delivery. She is also considering selling her products on the Internet. Hailey knows that her father does not like change very much, but she feels these changes are important for the future of the company.
Hailey feels that for productivity to improve, the company must practice: _________.
a. Free enterprise,
b. Work ethics,
c. Specialization,
d. Cultural diversity,
e. Pure competition.
Answer:
c. Specialization,
Explanation:
Since in the question it is mentioned that she selling her product on the internet and she knows her father does not like the changes but she knows that it would be important for the company .
So here if she wants to improve the productivity of the product so she must practice in specialization as if the product is different from the competitor in terms of quality, price, quantity, attractiveness, etc so the chances of increasing the sales would be high
Hence, the option c is correct