Factory Overhead Volume Variance Dvorak Company produced 5,100 units of product that required 3.5 standard hours per unit. The standard fixed overhead cost per unit is $2.50 per hour at 18,750 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Answers

Answer 1

Answer:

$2,250 Favourable

Explanation:

Calculation to determine the fixed factory overhead volume variance

Fixed factory overhead volume variance=$2.50 × [18,750 hrs. – (5,100 units × 3.5 hrs.)]

Fixed factory overhead volume variance=$2.50×[18,750 hrs. – 17,850 hrs]

Fixed factory overhead volume variance=$2.50×900

Fixed factory overhead volume variance=$2,250 Favourable

Therefore the fixed factory overhead volume variance will be $2,250 Favourable


Related Questions

A company has the following unadjusted account balances at December 31, of the current year; Accounts Receivable of $185,700 and Allowance for Doubtful Accounts of $1,600 (credit balance). The company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the current year-end:

Account Age Balance Estimated Uncollectible Percentage
Current (not yet due) $96,000 1.00%
1—30 days past due 64,000 2.50%
30—60 days past due 16,000 11.00%
61—90 days past due 6,500 37.00%
Over 90 days past due 3,200 70.00%
Total $185,700

Required:
a. Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, of the current year, balance sheet.
b. Prepare the adjusting journal entry to record bad debts expense for the current year .

Answers

Answer:

a. The amount of the Allowance for Doubtful Accounts that should appear on the December 31, Balance Sheet of the current year is:

= $8,965.

b. Adjusting Journal Entry:

Debit Bad Debts Expense $7,365

Credit Allowance for Doubtful Accounts $7,365

To record bad debts expense and bring the balance of the Allowance for Doubtful Accounts to a credit balance of $8,965.

Explanation:

a) Data and Calculations:

Accounts Receivable balance = $185,700

Allowance for Doubtful Accounts $1,600 (credit balance)

Aging Schedule:

Account Age                 Balance  Estimated Uncollectible   Amount

                                                                 Percentage

Current (not yet due) $96,000                  1.00%                    $960

1—30 days past due    64,000                  2.50%                    1,600

30—60 days past due  16,000                  11.00%                   1,760

61—90 days past due    6,500                  37.00%                 2,405

Over 90 days past due 3,200                  70.00%                 2,240

Total                         $185,700                                              $8,965

Bad Debts Expense:

Allowance for Uncollectible Accounts:

Beginning balance     ($1,600)

Ending balance           $8,965

Bad Debts expense = $7,365

On January 1, 2020, Commonwealth Inc. leases equipment to Tap Inc. The equipment has a fair value of $156,000, a carrying value of $80,000, an economic life of four years, and a lease term of three years. Commonwealth's incremental borrowing rate is 10% and there is a purchase option at the end of the lease of $10,000 that is reasonably expected to be executed by Tap at that time. The annual lease payment is $33,809.39, with the first payment due immediately on January 1, 2020. What is the amount of interest revenue recognized in 2020 by Commonwealth Inc.

Answers

Answer: $12,219

Explanation:

Interest revenue for 2020:

= Carrying value * Borrowing rate

Carrying value at end of 2020:

= Fair value - Lease payment

= 156,000 - 33,809.39

= $‭122,190.61‬

Interest = 10% * 122,190.61

= $12,219

Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020:

March 1 Bought inventory costing 111,000 pesos on credit.
May 1 Sold 70 percent of the inventory for 91,000 pesos on credit.
August 1 Collected 75,500 pesos from customers.
September 1 Paid 65,500 pesos to suppliers.

Currency exchange rates for 1 peso for 2020 are as follows:

March 1 $0.20
May 1 0.21
August 1 0.22
September 1 0.23
December 31 0.24

Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, what amount will Voltac report on its 2020 financial statements?

a. Inventory.
b. Cost of Goods Sold.
c. Sales.
d. Accounts Receivable.
e. Accounts Payable.
f. Cash.

Answers

Answer and Explanation:

The computation is shown below:

a. The inventory is

= 111,111 pesos × 30% × $0.20

= $6,660

b. The cost of goods sold is

= 111,111 pesos × 70% × $0.20

= $15,540

c. The sales is

= 91,000 pesos × $0.21

= $19,110

d. The account receivable is

= (91,000 pesos - 75,000 pesos) × $0.24

= $3,720

e. The account payable is

= (111,000 pesos - 65,500 pesos)× $0.24

= $10,920

f. The cash is

= ($75,500 × $0.22) - ($65,500 × $0.23)

= $1,545

Maplewood Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392,000 Maplewood has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. If Maplewood wants to break even on the order, what should the unit sales price be

Answers

Answer:

$8.1

Explanation:

Variable cost to be incurred for the offer = ($420,000/70,000) * 3,000

Variable cost to be incurred for the offer = $6 * 3,000

Variable cost to be incurred for the offer = $18,000

Additional Fixed cost = $6,300

Total Cost incurred for the offer = Variable cost to be incurred for the offer + Additional Fixed cost

Total Cost incurred for the offer = $18,000 + $6,300

Total Cost incurred for the offer = $24,300

Unit Sales Price (Break even) = Total Cost incurred for the offer / 3,000 units

Unit Sales Price (Break even) = $24,300 / 3,000 units

Unit Sales Price (Break even) = $8.1

Project A requires a $315,000 initial investment for new machinery with a five-year life and a salvage value of $34,500. The company uses straight-line depreciation. Project A is expected to yield annual net income of $20,400 per year for the next five years. Compute Project A's payback period.

Answers

= 9.96% is the answer of the equation

The supply of aged cheddar cheese is inelastic, and the supply of flour is elastic. Both goods are considered to be normal goods by a majority of consumers. Suppose that a large income tax increase decreases the demand for both goods by 10 percent. The change in equilibrium quantity will be:________

a. greater in the aged cheddar cheese market than in the flour market.
b. greater in the flour market than in the aged cheddar cheese market.
c. the same in the aged cheddar cheese and flour markets.
d. unknown without more information.

Answers

Hey bro hey how are you doing I hope you

Sandhill Co. purchased a new machine on October 1, 2022, at a cost of $67,560. The company estimated that the machine has a salvage value of $6,900. The machine is expected to be used for 72,200 working hours during its 6-year life. Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. (Round

Answers

Answer:

Results are below.

Explanation:

Giving the following formula:

Purchase price= $67,560

Salvage value= $6,900

Useful life= 6 years

To calculate the depreciation expense under the straight-line method, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (67,560 - 6,900) / 6

Annual depreciation= $10,110

2022:

Annual depreciation= (10,110/12)*3= $2,527.5

2023:

Annual depreciation= $10,110

Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. Jeremy is single with two withholding allowances. He receives an annual salary of $36,000 and receives a 3 percent commission on all sales. During the semimonthly pay period ending September 29, 20XX, Jeremy sold $20,000 of service contracts.

Required:
Complete the payroll register for the September 29 pay period.

Answers

Answer:

Pay recorded for September 29 is $2,100

Explanation:

Jeremy Ortiz is paid based on two sources of income. The first being the annual salary of $36,000 and the second is the commission on all the service contracts sold, which is 3%.

Since the pay period is of semimonthly (15 days), the annual salary would be divided by 24 instead of the regular 12 months. This would mean that salary of $1,500 ($36,000 / 24) would be recorded in the payroll register.

For the commission, the sales done during this semimonthly period was $20,000 of service contracts. The commission at 3% of all sales would be $600 ($20,000 x 3%).

Total pay recorded in the payroll register for the September 29 period would be $2,100 ($1,500 + $600).

Harmon Inc, manufactures two products from a joint process, product A and product B. A standard production run incurs joint costs of $45,000 and results in 1,500 units of product A and 2,500 units of product B. Product A sells for $50.00 per unit and Product B sells for $20.00 per unit. Assuming that no further processing occurs after the split-ff point, how much of the joint costs are allocated to Product A and B using the physical measure method

Answers

Answer:

Harmon Inc.

Joint costs of $45,000 allocated to:

Product A = $16,875

Product B = $28,125

Explanation:

a) Data and Calculations:

Joint costs of a standard production run = $45,000

Joint products        Product A     Product B      Total

Production units       1,500            2,500          4,000

Selling price per unit  $50               $20

Allocation of joint costs based on physical measure method:

Product A = $16,875 (1,500/4,000 * $45,000)

Product B = $28,125 (2,500/4,000 * $45,000)

b) Joint costs of $45,000 were incurred by Product A and Product B jointly because they consumed the same resources during the production run.  These costs can be allocated to the products based on established criteria, for example, units of products and sales value.  The purpose is to properly account for the joint costs at split-off.

Explain the nature of economic theory

Answers

Answer:

please give me brainlist and follow

Explanation:

Nature of Economic Theory: Economic theory involves generalisations which are statements of general tendencies or uniformities of relationships among various elements of economic phenomena. A generalisation is the establishment of a general truth on the basis of particular experiences.

Leftown is a former guest who owes the Munchies Restaurant $750 for a banquet. Restaurant managers have determined that this debt is now uncollectible. If the restaurant uses the direct write-off method of accounting for bad debt expense, the journal entry to recognize this bad debt would be a debit to ___________ and a credit to _________________.

Answers

Answer:

debit: provision for doubtful accounts

credit: accounts receivable

Explanation:

Based on the information given in a situation where the restaurant make uses of the DIRECT WRITE-OFF METHOD of accounting for bad debt expense, the appropiate journal entry to recognize this bad debt would be a debit to PROVISION FOR DOUBTFUL ACCOUNTS and a credit to ACCOUNTS RECEIVABLE.

Debit Provision for doubtful accounts $750

Credit Accounts receivable $750

Gull Corp. is considering selling its old popcorn machine and replacing it with a newer one. The old machine has a book value of $5,000, and its remaining useful life is five years. Annual costs are $4,000. A high school is willing to buy it for $2,000. New equipment would cost $18,000 with annual operating costs of $1,500. The new machine has an estimated useful life of five years.

Should the machine be replaced?

Proposal to Replace Equipment
Annual Variable Costs - Present Equipment $
Annual Variable Costs - New Equipment
Annual Differential Decrease in Cost $
Number of Years Applicable
Total Differential Decrease in Cost $
Proceeds from Sales of Present Equipment $
Cost of New Equipment
Annual Net Differential Increase in Cost - New Equipment $

Answers

Answer: No. The machine shouldn't be replaced.

Explanation:

Proposal to Replace Equipment

Annual Variable Costs - Present Equipment = $4000

Less: Annual Variable Costs - New Equipment = $1500

Annual Differential Decrease in Cost = $2500

Number of Years Applicable = 5

Total Differential Decrease in Cost = $2500 × 5 = $12500

Proceeds from Sales of Present Equipment = $2000

Cost of New Equipment = $8000

Annual Net Differential Increase in Cost - New Equipment = $18000 - $2000 = $16000

The machine shouldn't be replaced as the total differential decrease in cost is less than the annual net differential increase in cost of the new equipment.

Joao's Java Jungle sells cups of coffee. Joao pays each of his workers $50 per day while incurring a fixed cost of $100 and a variable input cost of $0.20 per cup of coffee for beans, cream, sugar, and paper cups. What is Joao's total cost per day when he does not hire any workers and does not produce any cups of coffee?

Answers

Answer:

Total cost= $100

Explanation:

Giving the following formula:

Joao pays each of his workers $50 per day while incurring a fixed cost of $100 and a variable input cost of $0.20 per cup of coffee for beans, cream, sugar, and paper cups.

If he does not hire any workers and does not sell a single cup of coffee, his total cost equals his fixed cost.

Total cost= $100

Lin Land Ltd. (LLL) is considering investing in an apartment complex. The sale price is $450,000 and LLL expects to have positive after-tax cash flows from rents of $20,000 for the next three years. At the end of the third year, LLL anticipates selling the apartment complex for a net after-tax gain on sale of $500,000. If LLL's required return is 15%, should LLL go ahead and purchase the apartment complex?

Answers

Answer:

no

Explanation:

we need to determine the npv to know if it is suitable

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

cash flow in year 0 = -450,000

cash flow in year 1 and 2 = 20,000

cash flow in year 3 = 20,000 + 500,000

i = 15%

npv = -75,577.38

Charles sells high-end electronic gadgets. Because of the nature of the products he deals with, Charles accepts payment through credit cards. What is he offering his customers, and how is it benefiting him?

Charles sells high-end electronic gadgets. Because of the nature of the products he deals with, Charles accepts payment through credit cards. This way, he is offering A)______

to his customers and mitigating the

B)______ involved in it.



A. discounts, loyalty, credits

B. loyalty, risk, advantages

Answers

Answer:

A. Credits

B. Risk

Explanation:

Charles is offering his customers to buy goods on credits. He is neither offering any discount (as the price of the high-end electronic gadgets are not changing) nor is he seeking any loyalty from his customers.

While the benefit Charles is gaining from this is that the risk involved in giving credit through credit card is being mitigated. If Charles had himself given the credit, then there would have been the risk of non-payment which he would have to bear. In this case the supporting bank or any other financial institution will bear the risk if the end buyer does not pay the credit card bill on time.

Answer:

credit, risks

Explanation:

Corect on edmentum

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. 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

Answers

Question Completion

A manufacturer of mountain bikes has the following marginal cost function:

C(q)=600/(0.7q+5)

Answer:

a. The total cost = $3,492.40

b. The profit on the first 30 bikes is:

= $2,507.60

Explanation:

a) Data and Calculations:

Fixed cost for producing the bicycles = $2,800

Number of bicycles produced = 30

Selling price per bike = $200

Marginal cost (C(q)) =600/(0.7q+5)

= 600/ (0.7*30 + 5)

= 600/ (21 + 5)

= 600/26

= $23.08

Total cost = Fixed cost + (C(q))

= $2,800 + $23.08 * 30

= $2,800 + $692.40

= $3,492.40

Profit:

Sales revenue $6,000 ($200 * 30)

Less Total cost  3,492.40

Profit =             $2,507.60

Platinum Services provides outsourced employee benefits administration services to several private and public sector companies. It is now planning to attract new business by introducing a premium service for high revenue companies (with year-end revenues of $2 billion or more) and wants to undertake a survey of companies sampled from the New York Stock Exchange, which lists public sector companies, in order to estimate the popularity of such a proposal.

Required:
What best describes the sampling frame?

Answers

Answer:

High revenue public companies on New York Stock Exchange

Explanation:

Sampling Frame is a list of all the units of population, which can be included in sample.

In this case - survey of sampled high revenue companies from New York Stock Exchange, for analysing popularity of 'employee benefit services'. Sampling Frame would be list of all high revenue public companies on New York Stock Exchange, out of which sample companies (for survey) will be selected.

Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on June 30, its Cash account shows a debit balance of $67,209. Easton's June bank statement shows $63,949 on deposit in the bank. Determine the adjusted cash balance using the following information:
Deposit in transit $ 6,050
Outstanding checks $ 2,675
Check printing fee, not yet recorded by company $ 30
Interest earned on account, not yet recorded by the company $ 45
The adjusted cash balance should be:_______

Answers

Answer:

See below

Explanation:

Given the above information, the adjusted cash balance should be;

Cash book balance

$67,209

Add:

Interest earned

$45

Less;

Bank fees

($30)

Adjusted cash book

$67,224

Bank balance

$63,949

Add:

Deposit in transit

$6,050

Less:

Outstanding checks

($2,675)

Adjusted bank balance

$67,324

Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes by $7 million. The installment receivable account at year-end 2021 had a balance of $8 million (representing portions of 2020 and 2021 installment sales), expected to be collected equally in 2022 and 2023. Sherrod was assessed a penalty of $2 million by the Environmental Protection Agency for violation of a federal law in 2021. The fine is to be paid in equal amounts in 2021 and 2022. Sherrod rents its operating facilities but owns one asset acquired in 2020 at a cost of $112 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight-line depreciation the next two years ($ in millions):

Answers

Answer:

1. Taxable income = $76 million

2.  Net income = $65.25 million

3-a. Net current Deferred Tax Asset = $1.95 million

3-b. Net current Deferred Tax Liability = $6.25 million

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.

The explanation of the answers I now provided as follows:

1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry.

1-a. Note: See the attached excel file for the determination of the amounts necessary to record income taxes for 2021 and the taxable income.

From the attached excel file, we have:

Taxable income = $76 million

1-b. The journal entries will look as follows:

Details                                                       Debit ($'m)             Credit ($'m)    

Tax expense (6.75 + 19 - 3)                           22.75

Deferred tax asset (25% * (1 + 13 - 2))             3.00

Deferred tax liability (25% * (7 + 20))                                              6.75

Tax payable (25% * 76)                                                                   19.00

(To record tax expense.)                                                                                

2. What is the 2021 net income?

This can be determined as follows:

Net income = Pretax accounting income - Tax expense = $88 million - $ 22.75 million = $65.25 million

3. Show how any deferred tax amounts should be classified and reported in the 2021 balance sheet.

3-a. The deferred tax amounts should be classified as follows.

From installment receivable in point (a) in the question:

Current deferred tax liability in 2022 (25%* ($4  / 2)) = $1

Noncurrent deferred tax liability in 2023 (25%* ($4 / 2)) = $1

From the depreciation in point (c.) in the question:

Noncurrent deferred tax liability (25%* ((24 + 24) - (14 + 7))) = $6.75

From the Warranty Expense/Payable in point (d.) of the question:

Current deferred tax asset (40%* 3) = $1.20

From the Acrrued Expense/Payable in point (e.) of the question:

Current deferred tax asset (25%* 7) = $1.75

Noncurrent deferred tax liability (25% * $6) = $1.50

3-b. These will be reported reported in the 2021 balance sheet as follows:

Sherrod, Inc.,

Balance Sheet (Partial)

As the Year Ended 31 December, 2021

Details                                                                         $'Million    

Assets:

Current Deferred Tax Asset (1.20 + 1.75)                      2.95

Current Deferred Tax Liability                                     -1.00  

Net current Deferred Tax Asset                                   1.95  

Liabilities:

Noncurrent Deferred Tax Asset (A)                              1.50

Noncurrent Deferred Tax Liabiity (1.0 + 6.75) (B)         7.75  

Net current Deferred Tax Liability (C = B - A)           6.25  

The budget director for Kanosh Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances.

October November December
Budgeted S&A Expenses
Equipment lease expense $5,800 $5,800 $5,800
Salary expense 6,700 7,200 7,600
Cleaning supplies 2,880 2,720 3,040
Insurance expense 1,800 1,800 1,800
Depreciation on computer 2,400 2,400 2,400
Rent 2,100 2,100 2,100
Miscellaneous expenses 710 710 710
Total operating expenses $22,390 $22,730 $23,450
Schedule of Cash Payments for S&A Expenses
Equipment lease expense
Prior month's salary expense 100%
Cleaning supplies
Insurance premium
Depreciation on computer
Rent
Miscellaneous expenses
Total disbursements for operating expenses $22,290 $18,030 $18,850


Required:
a. Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.
b. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter.
c. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.

Answers

Answer:

Explanation:

c. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.

The answer is 5400 because "at the end of the 4th quarter is only consists of 3 months (oct-dec). By taking the total amount you paid for all 6 months minus what you have to pay for 3 months.

Clothing Manufacturers is considering making a new article of clothing. They expect to hire an additional employee to produce the article of clothing which will cost $55,000 annually. The cost of making each article of clothing will be $33.60. If Clothing Manufacturers expects to sell 12,350 articles of clothing, then what is their incremental cost

Answers

Answer:

Clothing Manufacturers

Their incremental cost is $55,000.

Explanation:

a) Data and Calculations:

Expected sales unit = 12,350

Unit cost = $33.60

Total cost = $414,960 ($33.60 * 12,350)

Cost before additional employee = $359,960 ($414,960 - $55,000)

b) The incremental cost is the additional cost that was incurred in the production of 12,350 articles since an additional employee was hired.  The annual cost of hiring this additional employee is $55,000 as given.  This total amount represents the incremental cost for the Clothing Manufacturers.

On December 31, 2021 Sun Devils Company has outstanding bonds payable with a face value of $700,000, discount on bonds payable of $60,000, and interest payable of $15,000. The bonds mature on January 1, 2025, and interest is payable on a semi-annual basis. What amounts will be reported in the current liabilities section and long-term liabilities section of the balance sheet for these bonds

Answers

Answer:

current liabilities = $75,000

long-term liabilities = $700,000

Explanation:

Current liabilities includes a company`s obligation due for payment within a period of 12 months and long-term liabilities are company's obligation due for payment for period exceeding 12 months.

Practice Do It! Review 01 During the current month, Sheridan Company incurs the following manufacturing costs. (a) Purchased raw materials of $17,600 on account. (b) Incurred factory labor of $38,800. Of that amount, $31,900 relates to wages payable and $6,900 relates to payroll taxes payable. (c) Factory utilities of $3,100 are payable, prepaid factory property taxes of $2,990 have expired, and depreciation on the factory building is $9,400. Prepare journal entries for each type of manufacturing cost.

Answers

Answer:

Item a

Debit :

Credit :

Item b

Debit :

Credit :

Item c

Debit :

Credit :

Item d

Debit :

Credit :

Item e

Debit :

Credit :

Item f

Debit :

Credit :

Explanation:

If there is no immediate payment of cash, raise a liability - accounts payable

Clark Company estimated the net realizable value of its accounts receivable as of December 31, 2019, to be $170,000, based on an aging schedule of accounts receivable. Clark has also provided the following information: The accounts receivable balance on December 31, 2019 was $181,000. Uncollectible accounts receivable written off during 2019 totaled $12,500. The allowance for doubtful accounts balance on January 1, 2019 was $16,000. How much is Clark's 2019 bad debt expense

Answers

Answer:

$7,500

Explanation:

Calculation to determine How much is Clark's 2019 bad debt expense

First step is to calculate the Allowance for Doubtful Accounts balance

Allowance for Doubtful Accounts balance=

$181,000-$170,000

Allowance for Doubtful Accounts balance=$11,000

Second step is to calculate the amount to be written off

Written off=$16,000-$12,500

Written off=-$3,500

Now let calculate the bad debt expense

Bad debt expense=$11,000-$3,500

Bad debt expense=$7,500

Therefore How much is Clark's 2019 bad debt expense is $7,500

The Acme Toy Company introduced a new electric train, the Silver Bullet, in its Christmas catalog last year. Within four days of the catalog's mailing date, Acme had received phone orders for its entire inventory of trains. Paul Murrah, the sales manager responsible for the Silver Bullet, was delighted with the product's success. However, his excitement was overshadowed by the ____ cost resulting from lost sales that his division would suffer.

Answers

Answer:

Stock out

Explanation:

Stockout cost can be regarded as lost of income as well as expenses which is as a result of shortage of inventory.

These can come up in different vways such as

✓Sales-related way; instance of these is when there is an order been placed by a customer but inventory is not available to sell to him/her gross margin that is related to sale would be loss by the company.

✓Internal process-related; this is when there is no inventory for a production run when the company needs it, then cost will be incurred in getting it even on short notice.

1. palmer luckey's backers were early adopters who enjoyed becoming part of the development process

a) true

b) false

Answers

The answer is a)True.....

Schedule of Cash Payments Tadpole Learning Systems Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $120,000 April 140,000 May 160,000 Depreciation, insurance, and property taxes represent $10,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in November. Seventy percent of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May. Enter all amounts as positive numbers.

Answers

Solution :

                            Tadpole Learning System Inc.

     Schedule of cash payments for selling and administration expenses

                           For the three months ending May 31

Particulars                      March                     April                       May

March Expenses

Paid in March              $ 77,000

Paid in April                                               $ 33,000

                              ($110000 x 70%)     ($110000 x 30%)

April Expenses

Paid in April                                            $ 91,000                  

Paid in May                                                                                 $ 39,000                                                      

                                                             ($130000 x 70%)     ($130000 x 30%)

May expenses

Paid in May                                                                                $ 1,05,000

                                                                                              ($150000 x 70%)

Total cash payments  $ 77,000              $ 1,24,000            $ 1,44,000    

Given the expenses including depreciation, insurance and property tax of 10,000 to be deducted as it is not paid in the months of March, April, May. Hence it is excluded :

1                                   2                       3                                               2-3

Revised expense   Expense   Depreciation, insurance    Expense excluding

                                                 property tax                      depreciation,  

                                                                                            insurance and

                                                                                            property tax

March                     $ 1,20,000         $ 10,000                       $ 1,10,000

April                        $ 1,40,000         $ 10,000                       $ 1,30,000

May                        $ 1,60,000         $ 10,000                       $ 1,50,000

Westerville Company reported the following results from last year’s operations:

Sales $1,800,000
Variable expenses 435,000
Contribution margin 1,365,000
Fixed expenses 1,005,000
Net operating income $360,000
Average operating assets $1,200,000

At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics:

Sales $360,000
Contribution margin ratio 70% of sales
Fixed expenses $216,000

The company’s minimum required rate of return is 10%.

1. What is last year's margin?
2. What is last year's turnover?
3. What is last year's ROI?
4. What is the margin related to this year's investment opportunity?
5. What is the turnover related to this year's investment opportunity?
6. What is the ROI related to this year's investment opportunity?
7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year?
8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year?
9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year?

Answers

Answer:

Westerville Company

1. Last year's margin is:

= 20%

2. Last year's turnover is:

= $1,800,000

3. Last year's ROI is:

= 30%

4. The margin related to this year's investment opportunity is:

= 10%

5. The turnover related to this year's investment opportunity is:

= $360,000.

6. The ROI related to this year's investment opportunity is:

= 12%

7. The margin this year is:

= 18.33%

8. The turnover that it will earn this year is:

= $2,160,000

9. The ROI that it will earn this year is:

= 26.4%

Explanation:

a) Data and Calculations:

                                             Last Year's          This Year's          Total

Sales                                    $1,800,000           $360,000     $2,160,000

Variable expenses                  435,000              108,000          543,000

Contribution margin             1,365,000             252,000      $1,617,000

Fixed expenses                    1,005,000              216,000        1,221,000

Net operating income          $360,000             $36,000       $396,000

Average operating assets $1,200,000           $300,000    $1,500,000

Minimum Required Rate of Return = 10%

=                                             $120,000             $30,000       $150,000

1. Last year's margin = 20% ($360,000/$1,800,000) * 100

2. Last year's turnover = $1,800,000

3. Last year's ROI = 30% ($360,000/$1,200,000) * 100

4. The margin related to this year's investment opportunity is:

= 10% ($36,000/$360,000) * 100

5. The turnover related to this year's investment opportunity is $360,000.

6. The ROI related to this year's investment opportunity is:

12% ($36,000/$300,000)

7. The margin = 18.33% ($396,000/$2,160,000) * 100

8. The turnover that it will earn this year = $2,160,000

9. The ROI that it will earn this year = 26.4% ($396,000/$1,500,000) * 100

In the free enterprise system, or market economy, individuals are responsible for
being informed and making careful decisions.
True of False

Answers

Answer:

True

Explanation:

Free Enterprise system or market economy is where the individuals have the chance to make decisions on their own. This means that there are no government restrictions.

In this type of economy, the desires of the consumers and the profit-making goals of the producers help in determining what will be produced. In the same manner, the decision on how to produce will be determined by the Labour and the management.

To sum it up, this system allows the individual to decide on the purchasing of goods, the selling of the product, the hiring of Labour, and the type of structure they want to work on, giving them full freedom and responsibility to make decisions.

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