A country has nominal GDP equal to $204.31 billion in 2018. The GDP deflator in 2018 has a value of 112.64. What was the value of real GDP, in billions of dollars. Round to two decimal places. If your answer is 3.2 billion then just enter 3.2.

Answers

Answer 1

Answer:

$181.38 billion

Explanation:

The computation of the value of the real GDP is shown below:

As we know that

Real GDP = (Nominal GDP ÷ GDP Deflator) × 100

 = ($204.31 billion ÷ 112.64) × 100

= $181.38 billion

Hence, the value of real GDP is $181.38 billion

We simply applied the above formula so that the correct value could come

And, the same is to be considered


Related Questions

You take out a 30-year mortgage to buy a house worth $415,000. The down payment is 17% and the annual interest rate is 3.5%. What are the monthly payments?

Answers

Answer:

The monthly payments are $1,546.73

Explanation:

The monthly payments can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the mortgage balance = Mortgage worth - (Mortgage worth * Percentage of down payment) = $415,000 - ($415,000 * 17%) = $415,000 - $70,550 = $344,450

P = Monthly payments = ?

r = Monthly interest rate return rate = 3.5% / 12 = 0.035 / 12 = 0.00291666666666667

n = number of months = 30 years * 12 months = 360

Substitute the values into equation (1) and solve for P, we have:

$344,450 = P * ((1 - (1 / (1 + 0.00291666666666667))^360) / 0.00291666666666667)

$344,450 = P * 222.694984964558

P = $344,450 / 222.694984964558

P = $1,546.73442715748

Approximating to 2 decimal places, we have:

P = $1,546.73

Therefore, the monthly payments are $1,546.73.

Hank owns a gym called Ultimate Fitness. During the past year, Hank sold some equipment and other assets to upgrade his facility. He sold an elliptical trainer for $400. The buyer also included a juicer machine worth $100. The elliptical trainer had an original cost of $1500 and had accumulated depreciation for tax purposes of $800. What is Hank's realized gain or loss on the sale?A) Loss of $1000B) Loss of $200C) Loss of $1100D) Loss of $300

Answers

Answer:

B) Loss of $200

Explanation:

gain/loss resulting from the exchange = total consideration received - asset's basis

assets's basis = $1,500 - $800 = $700total consideration received = $400 + $100 (juicer machine) = $500

gain/loss resulting from the exchange = $500 - $700 = -$200

In this case, Hank can report a net loss resulting from the exchange since the consideration received in exchange for the elliptical trainer was lower than its book value.

Southwest Components recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates:

Activity Centers Cost Drivers Rate per Cost Driver Unit
Materials handling Pounds of material handled $17 per pound
Quality inspections Number of inspections $210 per inspection
Machine setups Number of machine setups $2,600 per setup
Running machines Number of machine-hours $22.00 per hour

Direct materials costs were $300,000 and direct labor costs were $150,000 during July, when the Fabrication Department handled 3,900 pounds of materials, made 790 inspections, had 50 setups, and ran the machines for 16,000 hours.

Required:
Use T-accounts to show the flow of materials, labor and overhead costs from the tour overhead activity centers through Work in Process Inventory and out to Finished Goods Inventory.

Answers

Answer:

Southwest Components

T-accounts:

Raw materials Inventory

Date     Accounts Titles       Debit       Credit

July 31  Cash                      $300,000

July 31  Work in Process                     $300,000

Wages & Salaries Account

Date     Accounts Titles       Debit       Credit

July 31  Cash                      $150,000

July 31  Work in Process                     $150,000

Manufacturing Overhead

Date     Accounts Titles       Debit       Credit

July 31  Cash                      $714,200

July 31  Work in Process                     $714,200

Work in Process Inventory

Date     Accounts Titles       Debit       Credit

July 31  Raw materials       $300,000

July 31  Wages & Salaries    150,000

July 31  Overhead                714,200

July 31 Finished Goods Inventory      $1,164,000

Finished Goods Inventory

Date     Accounts Titles       Debit       Credit

July 31  Work in Process  $1,164,000

Explanation:

a) Data and Calculations:

Activity Centers        Cost Drivers                        Rate per Cost Driver Unit

Materials handling   Pounds of material handled           $17 per pound

Quality inspections  Number of inspections                $210 per inspection

Machine setups       Number of machine setups    $2,600 per setup

Running machines  Number of machine-hours      $22.00 per hour

Direct materials costs = $300,000

Direct labor costs = $150,000

Pounds of materials = 3,900

Inspections = 790

Setups = 50

Machine usage = 16,000 hours

b) Manufacturing Overhead costs, based on ABC:

Items                         Per unit cost                Units        Total cost

Materials handling   $17 per pound             3,900         $66,300

Quality inspections  $210 per inspection       790         165,900

Machine setups       $2,600 per setup             50         130,000

Running machines  $22.00 per hour       16,000        352,000

Total manufacturing overhead costs                          $714,200

b) It is assumed that there are no beginning and ending inventories.

What happens over time to the real cost of purchasing a home, if the mortgage payments are fixed in nominal terms and inflation is in existence? (A) The real cost is constant. (B) The real cost is increasing. (C) The real cost is decreasing. (D) The price index must be known to answer this question.

Answers

Answer:

(C) The real cost is decreasing.

Explanation:

1 + real rate = (1 + nominal rate)/(1+ inflation)

So, with existence of inflation, real rate cost will be decreasing after each period.  After each period, it will be found out by dividing with inflation rate in the way shown above and added multiplicatively.

What term represents a sample web page that replicates what the final website will look like?
O test page
O wireframe
O sitemap
O storyboard

Answers

Answer:

The answer is wireframe

Explanation:

Just took the test

Wireframe term represents a sample web page that replicates what the final website will look like.

What is website ?

A website, often known as a web site, is a collection of web pages and related material that is published on at least one web server and given a shared domain name.

The World Wide Web is the collective name for all publicly accessible websites. A company's internal website for its employees is an example of a private website that can only be accessed via a private network.

Most websites focus on a single subject or objective, including news, education, business, entertainment, or social networking. The navigation of the website, which frequently begins with a home page, is aided by hyperlinks between web pages.

On a variety of gadgets, including PCs, laptops, tablets, and smartphones, users can visit websites. A web browser is the name of the application used on these gadgets.

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The ________ measures the return on owners' (both preferred and common stockholders) investment in the firm.
A) net profit margin
B) price/earnings ratio
C) return on equity
D) return on total assets

Answers

Answer:

C) return on equity

Explanation:

The return on equity determines the financial performance of the company. It could be calculated by dividing the net income from the owners equity as according to the accounting equation, the owners equity could be find out by deducting the liabilities from the assets

So here the equity could be of both types i.e. common and preferred

Therefore the option c is correct

Why is it important now for HR management to transform from being primarily administrative and operational to becoming more of an overall strategic contributor to the organization?
How have you seen this implemented in your workplace/former workplace?

Answers

Explanation:

Human resource management is increasingly relevant for a company to be successful, competitive and well positioned in the market. It is correct to affirm that it is important that HR ceases to be basically administrative and operational to become a general strategic contributor in a company due to the fact that management is going through a phase in which organizations have well-defined social and environmental responsibilities most demanded in a competitive and globalized world.

Therefore, the valorization of human capital in an organization is increasingly essential and strategic, because through professionals satisfied with their working conditions, well trained and motivated, the objectives are achieved more effectively, there is a greater attraction of quality professionals, greater innovation, greater productivity, continuous improvement of processes and the creation and maintenance of an organizational culture focused on ethical and collaborative practices in order to achieve organizational objectives.

A major advantage of the weighted average method of inventory costing is that:_________ a. cost flows correspond with the physical flow of merchandise. b. it matches current costs with revenues. c. recent costs are assigned to the ending inventory balance. d. it is relatively easy to apply.

Answers

Answer:

The answer is "Option d".

Explanation:

In the inventory costing method, the actual cost is fixed to an identifiable product segment with using the weighted average method, the prices of its products for sale are divided into the number of products still in the store. Its mean weight of each component was calculated with this calculation. Its mean value consists of the sum of all factors multiplied by mass and instead divided by mass sum.

A charitable corporation buys a new piece of land with plans to start building a hospital in two years. On the next property tax assessment date, the land is still vacant, and construction has not begun. In most states, what is the most likely result of the charity's petition for exemption from real estate taxes?A. Because the charity owns the land, the property is exempt.
B. Because the land is not being used, the property is not exempt.
C. If building permits have been issued, the property is exempt.
D. If the charity is a church, the property is exempt.

Answers

Answer: B. because the land is not being used, the property is not exempt

Explanation:

From the information given in the question, we are told that a charitable corporation buys a new piece of land with plans to start building a hospital in two years and that as at the the next property tax assessment date, the land is still vacant, and construction work has not begun on the land.

The most likely result of the charity's petition for exemption from real estate taxes will be that the property will be that because the land is not being used, the property is not exempt.

An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is five percent, what is the current market value of the bond?

Answers

Answer:

Bond Price = $828.4091365 rounded off to $828.41

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 40

Total periods (n) = 20 * 2 = 40

r or YTM = 0.05 or 5%

The formula to calculate the price of the bonds today is attached.

Bond Price = 40 * [( 1 - (1+0.05)^-40) / 0.05]  + 1000 / (1+0.05)^40

Bond Price = $828.4091365 rounded off to $828.41

Fortune Company had beginning raw materials inventory of $16,000. During the period, the company purchased $92,000 of raw materials on account. If the ending balance in raw materials was $10,000, the amount of raw materials transferred to work in process is

Answers

Answer:

The amount of raw materials transferred to work in process is $98,000.

Explanation:

Given that, at the beginning of its business operations, Fortune Company had a raw material inventory of $ 16,000 and that, during the business year, it acquired another quantity of raw materials for $ 92,000, the total of raw materials in the company's stock had a total value of $ 108,000 (16,000 + 92,000).

Now, if at the end of the balance the value of the raw materials was $ 10,000, the amount of raw material that was incorporated into the production process was a value of $ 98,000 (108,000 - 10,000).

PLS HURRY!!!!
Write a short paragraph explaining the ecological benefits to high-yield agricultural techniques.

Answers

Answer:

The results suggest that more intensive production methods require less land, cause less soil loss, consume less water and may result in the production of fewer pollutants. Contrary to common belief, results from the study show that organic production is more ecologically damaging than conventional methods.

Explanation:

Stephen is a day trader who constantly buys and sells only medical-related stocks. Stephen has _____ asset allocation strategy and a(n) _____ security selection strategy.

Answers

Answer: a passive; active

Explanation:

When a person or institution is said to have a passive asset allocation strategy it means that they either trade the same assets over and over or apply the same weighting to the asset class every time. Stephen only trades medical-related stocks so is using passive allocation.

An active security selection strategy means that the person or institution constantly changes and trades the stocks in their portfolio much like Stephen does when he constantly trades stock. Stephen is therefore using an active security selection strategy.

Dusty Corporation began business on January 1, 2020. The corporate charter authorizes issuance of 100,000 shares of .01 par value common stock and 10,000 shares of $1 par value, 10% cumulative preferred stock. On July 1, 2020, Dusty issued 30,000 shares of common stock in exchange for three years of rent on a retail location. The cash rental price is $4,200 per month and the rental period begins July 1. How should Dusty adjust its financial statement for the issuance of the shares on July 1?

a. Increase cash by $151,200, and increase prepaid rent by $151,200.
b. Increase prepaid rent by $151,200, and increase common stock by $151,200.
c. Increase prepaid rent by $151,200, increase common stock by $300 and increase additional paid-in capital by $150,900.
d. Increase prepaid rent by $151,200, increase common stock by $150,900, and increase additional paid-in capital by $300.

Answers

Answer:

The answer is "Option c".

Explanation:

                                                                                                 Dr.                    Cr.

Prepayment of rent                                                            151,200

Popular stock                                                                                                  300

Extra capital expenditures                                                                      150,900

Dusty Corporation should adjust its financial statement to record the issuance of the shares on July 1, 2020 as follows:

c. Increase prepaid rent by $151,200, increase common stock by $300, and increase additional paid-in capital by $150,900.

Data and Calculations:

Authorized share capital:

100,000 shares, Common Stock at $0.01 par value = $1,000 ($100,000 x $0.01)

10,000 shares, 10% Cumulative Preferred Stock at $1 par value = $10,000 (10,000 x $1)

Analysis of Issuance:

30,000 shares, Common Stock at $0.01 par value = $300 (30,000 x $0.01)

Rental cost = $151,200 ($4,200 x 36 months)

Prepaid Expense $151,200 Common Stock $300 Additional Paid-in Capital $150,900 ($151,200 - $300)

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Last month the balance on your credit account was $785. Your new balance is $540. What percent of your total balance did you pay?

Answers

Answer:

31.21%

Explanation:

The balance last month was $785

The new balance is $540

It means a payment of  $785- $540 was made

=$785 - $540

=$245

As a percentage

=$245/$785 x 100

=0.3121 x 100

=31.21%

Answer: 31%

Explanation: I just got it right

Total revenue for producing 8 units of output is $48. Total revenue for producing 9 units out output is $63. Given this information, the:
A. Average revenue for produce 9 units is $1
B. Average revenue for producing 9 units is $15
C. Marginal revenue for producing the 9 unit is $1
D. Marginal revenue for producing the 9 units is $15

Answers

Answer:

D. Marginal revenue for producing the 9 units is $15

Explanation:

TR(8) = $48

TR(9) = $63

MR(9) = TR(9) - TR(8) = $63 - $48 = $15

AR(8) = TR(8) / 8 = $48/8 = $6

AR(9) = TR(9)/9 = 63/9 = $9

Note: TR=Total revenue, AR= Average Revenue and MR=Marginal Revenue

So, the only correct option is option d

why does location matter?

Answers

answer: you need to know where your at

BBQ Corporation has a target capital structure that is 70 percent equity, 30 percent debt. The flotation costs for equity issues are 15 percent of the amount raised; the flotation costs for debt are 8 percent. If BBQ needs $150 million for a new manufacturing facility, what is the cost when flotation costs are considered?
a) $130.65 million
b) $150 million
c) $165.42 million
d) $172.22 million
e) $185 million

Answers

Answer:

d) $172.22 million

Explanation:

given data

equity = 70 %

debt = 30 %

flotation costs equity = 15 %

flotation costs debt = 8 %

BBQ = $150 million

solution

first we get here weighted average flotation cost that is express as

weighted average flotation cost = ( Flotation cost debt × Weight debt ) + ( Flotation cost equity × Weight equity )         .................1

put here value and we get

weighted average flotation cost = (8% × 0.30) + (15% × 0.70)

weighted average flotation cost = 0.024 + 0.105

weighted average flotation cost = 0.129  = 12.9%

and

now we get here cost of funds  that is express as

Cost of funds = Amount raised  ÷ (1 - Weighted average floatation cost)    .............2

put here value we get

Cost of funds  = [tex]\frac{150,000,000}{1-0.129}[/tex]

Cost of funds  = [tex]\frac{150,000,000}{0.871}[/tex]

Cost of funds  = $172,215,844

so correct answer is d) $172.22 million

The EU regulates taxes on Internet sales and the amount of pollution differently than the U.S. government. U.S. companies doing business in the EU:A. Are required to comply with EU regulations only if their main headquarters are located within the European Union B. Must pay taxes to the EU when conducting all business globally if they wish to do any business in the EU. C. Must comply with EU regulations when doing business in the European Union only D. Are never required to comply with EU regulations as long as they are headquartered in the United States E. Have the option to conduct business under either EU or U.S. regulations

Answers

Answer: C. Must comply with EU regulations when doing business in the European Union only.

Explanation:

European Union tax and pollution laws are meant to bind only the area in the EU and not other areas. For instance, a Nebraska state law that is not law in other parts of the country only covers Nebraska and so can only be enforced there.

The same logic goes for the EU. Their laws are only applicable if you are in their area of control. This means that U.S. companies doing business in the EU must comply with EU regulations when doing business in the EU only.

A balance sheet that displays assets and liabilities into current versus noncurrent categories is commonly called a:________a) categorized balance sheet. b) current balance sheet. c) classified balance sheet. d) dual display balance sheet.

Answers

Answer:

c) classified balance sheet.

Explanation:

A classified balance sheet can be described as a balance sheet in which the information about assets, liabilities, and shareholders' equity of a company is presented by aggregating or classifying it into subcategories of accounts.

The advantage of a classified balance sheet is that it easier to read and it makes it easier for readers to obtain required information than when the information is just presented in a large number of line items.

The classifications mostly used within a classified balance sheet include  Intangible assets, fixed assets (or Property, Plant, and Equipment), current assets, current liabilities, long-term liabilities, and shareholders' equity.

In accounting, the addition of these classifications is required to match the accounting equation stated as follows:

Total assets = Total liabilities + Shareholders' Equity

The start up costs for a project are $25,000. The cost of capital for the firm is 12%. The sum of the present value of the cash flows for the first three years is $26,420.14.

Required:
Compute the net present value for the project.

Answers

Answer:

net present value = $1,420.14

Explanation:

given data

start up costs  = $25,000

cost of capital = 12%

present value of the cash flows = $26,420.14

solution

we get here net present value will be express as here

net present value = present value of the cash flows for the first three years - start up costs ........................1

put here value and we get

net present value = $26,420.14 - $25,000

net present value = $1,420.14

The government of Paulaville decides to set prices of wheat. Calculate the amount of the shortage or surplus if the government sets a price floor at $2.

Answers

Answer:

I have uploaded the picture with the relevant information below.

Explanation:

We can see in this picture that the market equilibrium is met at a price of $5, thus, $5 is the equilibrium price, because demand and supply are both 125 at this point.

If the govenment sets a price floor of $2, there will be no effect, because the price floor is non-binding.

A non-binding price floor is a minimum price set by the government that is actually lower that the equilibrium market price. In this case, the price of the market will be allowed to go to $5, and reach equilibrium, so the policy osf setting the $2 price floor will have no effect.

At the beginning of her current tax year, Angela purchased a zero-coupon corporate bond at original issue for $46,000 with a yield to maturity of 5 percent.Given that she will not actually receive any interest payments until the bond matures in 10 years, how much interest income will she report this year assuming semiannual compounding of interest?

Answers

Answer:

Semiannual compounding of interest = $2,328.75

Explanation:

Given:

Semi annual rate =  5/2 = 2.5 = 0.025

P = $46,000

Find:

Semiannual compounding of interest

Computation:

Semiannual compounding of interest = 46,000[1 - (1 + 0.025)²]=

Semiannual compounding of interest = $2,328.75

The risk-free rate of return is 7.5%, the expected rate of return on the market portfolio is 14%, and the stock of Xyrong Corporation has a beta coefficient of 2.8. Xyrong pays out 40% of its earnings in dividends, and the latest earnings announced were $25 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 16% per year on all reinvested earnings forever.What is the intrinsic value of a share of Xyrong stock?if the market price of a share is currently $67, and you expect the market price to be equal to the intrinsic value one year from now, calculate the price of the share after one year from now.What is your expected one-year holding-period return on Xyrong stock?

Answers

Answer:

The intrinsic value of a share of Xyrong stock = $68.075.

the expected one-year holding-period return on Xyrong stock = 0.27716.

Explanation:

Without mincing words, let's dive straight into the solution to the question above:

The intrinsic value of a share of Xyrong stock can be calculated as given below;

The intrinsic value of a share of Xyrong stock = [ (1 + growth rate) × G° ] ÷ (cost of equity - growth rate). -------------------(1).

=> Where, growth rate = 16%( 1 - 0.4) = 9.6% = 0.96.

=> Cost of equity = 2.8( 14 - 7.5) + 7.5 = 25.7% = 0.257.

Thus, slotting in the values into the equation (1) above, we have;

The intrinsic value of a share of Xyrong stock = [ (1 + growth rate) × G° ] ÷ (cost of equity - growth rate).

The intrinsic value of a share of Xyrong stock = [( 1 + 0.96) × 10] ÷ (0.257 - 0.96) = $68.075.

Hence, the expected one-year holding-period return on Xyrong stock = G° × ( 1 + growth rate) + [ (The intrinsic value of a share of Xyrong stock) × (1 + growth rate )] - market price of share ÷ market price of share.

= [ 10 × ( 1 + 0.96) + {$68.075 × (1 + 0.96)} - 67] ÷ 67 = 0.27716.

Definitions Terms
1. Employees affected by a budget help in preparing it.
2. Planning future business actions and expressing them as formal plans.
3. A comprehensive business plan that includes operating, investing, and financing budgets.
4. Summarizes the effects of investing activities on cash.
5. Shows expected cash inflows and outflows and helps determine financing needs.
6. An approach that requires all expenses to be justified for each new budget.
7. A formal statement of future plans, usually expressed in monetary terms.
8. Approach in which top management passes down a budget without employee input.

Answers

Answer:

1. Employees affected by a budget help in preparing it.  - PARTICIPATORY BUDGETING.

2. Planning future business actions and expressing them as formal plans.  - BUDGETING.

3. A comprehensive business plan that includes operating, investing, and financing budgets.  - MASTER BUDGET.

4. Summarizes the effects of investing activities on cash.  - CAPITAL EXPENDITURE BUDGET.

5. Shows expected cash inflows and outflows and helps determine financing needs.  - CASH BUDGET.

6. An approach that requires all expenses to be justified for each new budget.  - ZERO-BASED BUDGET.

7. A formal statement of future plans, usually expressed in monetary terms.  - BUDGET

8. Approach in which top management passes down a budget without employee input. - TOP-DOWN BUDGETING.

Governments usually take steps to regulate market conditions when:
O A. too many businesses engage in competition.
O B. research and development costs increase.
O c. monopolies act in ways that hurt consumers.
O D. more similar businesses are allowed to open.

Answers

Answer:

C monopolies act in ways that hurt consumers

Trust

Answer:

c

Explanation:

A corporate bond is quoted at a price of 98.96 and has a coupon rate of 4.8 percent, paid semiannually. What is the current yield?
A) 4.24 percent
B) 4.85 percent
C) 5.36 percent
D) 5.62 percent
E) 4.66 percent

Answers

Answer:

B) 4.85 percent

Explanation:

The computation of the current yield is shown below:

As we know that

Current yield is

= Coupon rate ÷ Price of the corporate bond

= 4.8% ÷ 98.96

= 4.85%

Hence, the current yield is 4.85%

Therefore the correct option is B.

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

When management structures the organization, it clarifies who gets to make decisions, how many people report to one manager, and how many different departments the company needs in order to operate effectively.

Answers

Answer:

True.

Explanation:

When management structures the organization, it clarifies who gets to make decisions, how many people report to one manager, and how many different departments the company needs in order to operate effectively.

Basically, structuring an organization typically involves making strategic decisions between choosing decentralization or centralization decision-making policy.

Hence, structuring an organization includes making strategic decisions with respect to span of control such as stating or deciding on how many employees will report to a manager, functions of each managers and the departmentalization of each department in the organization so as to successfully achieve its aims, goals and objectives.

The present value of a $100 three-year annuity due (first cash flow occurs today) discounted at a rate of 10% is equal to ________.

a. $300.00
b. $248.69
c. $273.55
d. $135.17

Answers

Answer: c. $273.55

Explanation:

The present value of an annuity due can be calculated thus;

= Annuity * present value interest factor of annuity due, 10%, 3 years

= 100 * 2.7355

= $273.55

Answer:

The present value of a $100 three-year annuity due (first cash flow occurs today) discounted at a rate of 10% is equal to ________.

b. $248.69

Explanation:

a) Data and Calculations:

The amount of the Annuity due = $100

Number of years for the annuity due= 3

Discount rate of the annuity due = 10%

Annuity factor from annuity table = 2.4869

Therefore, the present value of the annuity due = $248.69 ($100 * 2.4869).

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:
Direct material: 5 pounds at $8.00 per pound $40.00 Direct labor: 2 hours at $14 per hour28.00 Variable overhead: 2 hours at $5 per hour 10.00 Total standard variable cost per unit $78.00.The company also established the following cost formulas for its selling expenses:Fixed Cost per Month Variable Cost per Unit Sold Advertising $200,000 Sales salaries and commissions$100,000 $12.00Shipping expenses $3.00 The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sold 30,000 units and incurred the following costs:Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. Total variable manufacturing overhead for the month was $280,500. Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455,000, and $115,000, respectively.
1. What raw materials cost would be included in the company's flexible budget from March?
2. What is the raw materials quantity variance from March?

Answers

Answer:

1. $1,200,000

2. -$80,000 U

Explanation:

1. What raw materials cost would be included in the company's flexible budget from March.

= Units produced and sold × Direct materials

= 30,000 units × 5 pounds × $8 per pound

= $1,200,000

2. What is the raw materials quantity variance from March.

=(Standard quantity for actual production - Actual quantity for actual production) × Standard price.

Standard quantity = 5 pounds × 30,000 units = 150,000 units

Actual quantity = 160,000 units

Standard price = 8

= (150,000 - 160,000) × $8

= -$80,000 U

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