Answer and Explanation:
The preparation of the retained earnings statement is presented below:
Opening retained earning balance $721,100
Add: prior period adjustment $86,370
Add: net income $1,562,700
Less: dividend paid $79,000
Ending retained earnings $2,291,170
The above items would be added and deducted that increase and decrease the retained earnings balance
Criminal law defines crimes, establishes punishments, and includes payment for personal injury.
t or f
Answer:
t
Explanation:
the letter t is cool
Dorman Industries has a new project available that requires an initial investment of $6.1 million. The project will provide unlevered cash flows of $835,000 per year for the next 20 years. The company will finance the project with a debt-to-value ratio of .3. The company’s bonds have a YTM of 6.2 percent. The companies with operations comparable to this project have unlevered betas of 1.31, 1.24, 1.46, and 1.41. The risk-free rate is 3.2 percent, and the market risk premium is 6.4 percent. The company has a tax rate of 40 percent.
Required:
What is the NPV of this project?
Answer:
NPV = $ 400,115.43
Explanation:
NPV of this project = $ 400,115.43
On January 1, 2021, Rapid Airlines issued $240 million of its 8% bonds for $221 million. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $229 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates.
Required:
Prepare the journal entries to record interest on June 30, 2021 (the first interest payment), on December 31, 2021 (the second interest payment) and to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet.
Answer:
June 30
Dr Interest expense $11,050,0000
Cr Discount on bond payable $1,450,000
Cr Cash $9,600,000
December 31, 2021
Dr Interest expense $11,122,500
Cr Discount on bond payable $1,522,500
Dr Cash $9,600,000
December 31, 2021
Dr Unrealized Holding loss -NI $1,000,000
Dr Unrealized Holding loss -OCI $9,972,500
Cr Fair value Adjustment $10,972,500
Explanation:
Preparation of the journal entries to record interest on June 30, 2021
June 30
Dr Interest expense $11,050,0000
($221 million*10%/2)
Cr Discount on bond payable $1,450,000
($11,050,000-$9,600,000)
Cr Cash $9,600,000
($240 million*8%/2)
(To record first interest payment)
Preparation of the journal entries to record interest on December 31, 2021
December 31, 2021
Dr Interest expense $11,122,500
[($221,000,000+$1,450,000)*10%/2]
Cr Discount on bond payable $1,522,500
($11,122,500-$9,600,000)
Dr Cash $9,600,000
($240 million*8%/2)
(To record second interest payment)
Preparation of the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet.
December 31, 2021
Dr Unrealized Holding loss -NI $1,000,000
Dr Unrealized Holding loss -OCI $9,972,500
($10,972,500-$1,000,000)
Cr Fair value Adjustment $10,972,500
($229 million-$221 million+$1,450,000+$1,522,500)
(To adjust the bonds to Fair value)
The information content of a regular dividend increase generally signals that:Multiple Choicefuture dividends will be lower.the firm has recently sold a subsidiary.the firm has a one-time surplus of cash.the firm has more cash than it needs due to steadily declining sales.management believes the future earnings of the firm will be strong.
Answer:
management believes the future earnings of the firm will be strong
Explanation:
The information content with respect to the regular dividend would be increase when the company would have a greater amount of earnings in near future and they try to give the greater amount of dividend to the shareholders. This represent the management would trust that the earnings of the future of the firm would be strong
Hence, the last option is correct
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.
Gallerani Corporation has received a request for a special order of 4,300 units of product A90 for $26.90 each. Product A90's unit product cost is $26.40, determined as follows: Direct materials$2.55 Direct labor 7.85 Variable manufacturing overhead 6.95 Fixed manufacturing overhead 9.05 Unit product cost$26.40 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90 that would increase the variable costs by $3.30 per unit and that would require an investment of $22,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:
Answer:
Effect on income= $4,875 increase
Explanation:
Giving the following formula:
Production costs:
Direct materials$2.55
Direct labor 7.85
Variable manufacturing overhead 6.95
Total= $17.35
Special offer:
Selling price= $26.9
Number of units= 4,300
Increase in variable cost= $3.3
Increase in fixed costs= $22,000
Because it is a special offer and there is unused capacity, we will take into account only the incremental fixed costs.
To calculate the effect on income, we need to use the following formula:
Effect on income= incremental contribution margin - incremental fixed costs
Effect on income= 4,300*(26.9 - 17.35 - 3.3) - 22,000
Effect on income= $4,875 increase
______________, a vast network of linked computers, had its origins in the late 1960s, when scientists at the United States Department of Defense Advanced Research Projects Agency (DARPA) established the ARPAnet computer network so they could transfer data between sites working on similar research projects. This led to a quantum leap forward in computer communications.
Answer:
The internet.
Explanation:
The internet refers to a vast, global system of interconnected computer networks.
There's a standard framework for the transmission of informations on the internet, it is known as the internet protocol suite or Transmission Control Protocol and Internet Protocol (TCP/IP) model. One of the very basic rule of the TCP/IP protocol for the transmission of information is that, informations are subdivided or broken down at the transport layer, into small chunks called packets rather than as a whole.
Hence, the standard Internet communications protocols which allow digital computers to transfer (prepare and forward) data over long distances is the TCP/IP suite.
Additionally, WWW simply means World Wide Web. The World Wide Web was invented by Sir Tim Berners-Lee in 1990 while working with the European Council for Nuclear Research (CERN); Web 2.0 evolved in 1999. Basically, WWW refers to a collection of web pages that are located on a huge network of interconnected computers (the Internet). Also, users from all over the world can access the world wide web by using an internet connection and a web browser such as Chrome, Firefox, Safari, Opera, etc.
Winnebagel Corp. currently sells 28,400 motor homes per year at $75,000 each and 7,400 luxury motor coaches per year at $117,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 23,400 of these campers per year at $21,000 each. An independent consultant has determined that if the company introduces the new campers, it should boost the sales of its existing motor homes by 3,000 units per year and reduce the sales of its motor coaches by 890 units per year.
Required:
What is the amount to use as the annual sales figure when evaluating this project?
Answer:
$820,530,000
Explanation:
Calculation to determine the amount to use as the annual sales figure when evaluating this project
Campers sale revenue $ 491,400,000 (23,400*$21,000)
Add: Increase in motor homes sales $
$225,000,000
( 3,000*$75,000)
Less: Decrease in luxury motor coaches $ 104,130,000 (890*$117,000)
Annual sales figure $820,530,000
Therefore the amount to use as the annual sales figure when evaluating this project will be $820,530,000
Rave Reviews Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly). The number of employees in each department follows. Cafeteria 40 Human Resources 60 Machining 200 Assembly 300 Rave Reviews uses the direct method of cost allocation and allocates cost on the basis of employees. If Human Resources cost amounts to $1,800,000, how much of the department's cost would be allocated to Assembly
Answer:
$1,080,000
Explanation:
Calculation to determine how much of the department's cost would be allocated to Assembly
First step is to calculate the Total number of employees to be considered for direct method allocation
Total number of employees to be considered for direct method allocation = 200 + 300
Total number of employees to be considered for direct method allocation = 500
Now let calculate the Overhead cost allocated to Assembly
Overhead cost allocated to Assembly = (300 ÷ 500)×$1,800,000
Overhead cost allocated to Assembly = 60% x $1,800,000
Overhead cost allocated to Assembly = $1,080,000
Therefore how much of the department's cost would be allocated to Assembly is $1,080,000
You are the president of an internet company that has enjoyed great success. You are considering expanding operations into the South American markets and need to raise $500 million of additional funding to do so. You are considering borrowing the money in the bond market at a 8% rate or issuing an additional public offering of common stock. The company treasurer, Chris, suggests an issuance of preferred stock instead. How is preferred stock different than bonds or common stock
Answer: See explanation
Explanation:
A bond is regarded as a fixed income instrument and it's a loan that an investor makes to a borrower. On the other hand, in preference shares, dividends have to be paid out to the shareholders before the issuance of common stock dividends.
We should note that whilw bonds typically have a maturity date, the preference shares do not have a maturity date.
During bankruptcy, bondholders are more likely to get paid than the holders of preference shares. When there's default, bondholders can go to court since they've a legal obligation to get paid unlike the holders of preference shares who do not.
Aaron's Rentals has 58,000 shares of common stock outstanding at a market price of $36 a share. The common stock just paid a $1.64 annual dividend and has a dividend growth rate of 2.8 %. There are 12,000 shares of 6 % preferred stock outstanding at a market price of $51 a share. Preferred stock pays a dividend of $6 a year The outstanding bonds mature in 17 years, have a total face value of $750,000, a face value per bond of $1,000, and a market price of $1,011 each. The bonds pay 8 % interest, semiannually. The tax rate is 34 %. What is the firm's weighted average cost of capital
Answer:
The firm's weighted average cost of capital (WACC) is 7.76%.
Explanation:
Note: Par value of the preferred stock is $100 but it is omitted in the question.
Market price share = (Dividend just paid (1 + Dividend growth rate)) / (Cost of equity – Dividend growth rate) ………………………………….. (1)
Substituting the relevant values into equation and solve for cost of equity, we have:
36 = (1.64 * (1 + 0.028)) / (Cost of equity – 0.028)
36 = 1.68592/ (Cost of equity – 0.028)
36(Cost of equity – 0.028) = 1.68592
36Cost of equity - 1.008 = 1.68592
36Cost of equity = 11.68592 + 1.008
Cost of equity = (1.68592 + 1.008) / 36
Cost of equity = 0.0748, or 7.48%
Cost of preferred stock = (Par value * Dividend rate) / Current price = (100 * 6%) / 51 = 0.1176, or 11.76%
Cost of debt = Coupon rate * (100% - tax rate) = 8% * (100% - 34%) = 0.0528, or 5.28%
Common stock market value = 58,000 * $36 = $2,088,000
Preferred market value = 12,000 * $51 = $612,000
Bond market value = $750,000 * ($1,011 / $1,000) = $758,250
Total market value of the company = Common stock market value + Preferred market value + Bond market value = $2,088,000 + $612,000 + $758,250 = $3,458,250
WACC = (7.48% * ($2,088,000 / $3,458,250)) + (11.76% * (612,000 / $3,458,250)) + (5.28% * ($758,250/ $3,458,250)) = 0.0776, or 7.76%
Indicate whether each of the following costs associated with productionwould be classified as direct materials, direct labor, or manufacturing overhead.
a. Salaried supervisor responsible for several product lines
b. Maintenance personnel
c. Hourly workers assembling goods
d. Nails used to assemble cabinets
e. Bike frame used to build a racing bike
f. Factory utilities
g. Glue used to assemble toys
Answer and Explanation:
The classification is as follows
a. Manufacturing overhead as it is an indirect cost
b. Manufacturing overhead as it is related to factory
c. Direct labor as it represent the hours
d. Manufacturing overhead as it is an indirect material cost
e. Direct material as it represent the material cost
f. Manufacturing overhead as it is an indirect cost
g. Manufacturing overhead as it is an indirect material cost
In this way it could be categorized
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
A town wishes to build a new school that will cost $15,000,000. The school is to be built in 10 years. The town will provide funding for the new school by depositing a uniform amount into an investment fund paying 5% per year, compounded annually. How much must be set aside in each of the 10 years to provide for the new school?
Answer:
Annual deposit= $1,192,568.62
Explanation:
Giving the following formula:
Future Value= $15,000,000
Number of periods= 10 years
Interest rate= 5% compounded annually
To calculate the annual deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (15,000,000*0.05) / [(1.05^10) - 1]
A= $1,192,568.62
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.
In 1993, Sheffield Company completed the construction of a building at a cost of $2,340,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $69,600 at the end of that time.
Early in 2004, an addition to the building was constructed at a cost of $585,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $23,400.
In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.
Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places)
Annual depreciation expense—building ___________
Answer:
Annual depreciation expense is $23,547
Explanation:
In the year 2022 the cost of the building will be written down value.
Using straight line depreciation method : (Cost - Salvage value ) / Useful life
Depreciation in 1994 = ( 2,340,000 - 69,600 ) / 40 years = 56,760
There is addition construction in year 2004 the carrying value of the building will be :
2,340,000 - ( 56,760 * 20 ) = 1,204,800
Depreciation in 2004 : ( 1,204,800 + 585,000 ) - 23,400 / 30 years = 58,880
Carrying value on 2022 :
1,789,800 - ( 58,880 * 18 years) = 729,960
Depreciation expense in 2022:
729,960 / 31years = $23,547
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
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
You are given the following information concerning Parrothead Enterprises:
Debt: 9,300 6.5% coupon bonds outstanding, with 22 years to maturity and a quoted price of 104.75. These bonds have a par value of $1,000 and pay interest semi-annually.
Common stock: 240,000 shares of common stock selling for $64.80 per share. The stock has a beta of .93 and will pay a dividend of $3.00 next year. The dividend is expected to grow by 5.3 percent per year indefinitely.
Preferred stock: 8,300 shares of 4.65 percent preferred stock selling at $94.30 per share.
Market: 11.7% expected return, a risk-free rate of 3.75%, and a 23% tax rate.
Calculate the company's WACC.
Answer:
WACC is 8.19%
Explanation:
WACC (Weighted Average Cost of Capital is determined by multiplying capital source cost of both equity and debt by their relevant weight and then summing the results to identify the value using the formulae given below:
WACC = (E/V x Re) + [D/V x Rd x (1 - Tc)]
where:
E = Market Value of the firm's equity
D = Market Value of the firm's debt
V = E + D
Re = Cost of Equity
Rd = Cost of Debt
Tc = Tax Rate
In the given question, we will first determine the cost of equity. As shown below:
Cost of Equity = Average of CAPM and Dividend Capitalisation Model
CAPM = Risk free rate of return + Beta x (market rate of return - risk free rate of return)
CAPM = 3.75 + 0.93 x (11.7 - 3.75)
CAPM = 11.14%
Dividend Capitalisation Model = Expected dividend net year / Current Price + Growth Rate
Dividend Capitalisation Model = 3 / 64.8 * 100 + 5.3
Dividend Capitalisation Model = 9.93%
Cost of Equity = 9.93 + 11.14 = 10.54%
Next is the cost of debt which would be calculated using YTM (Yield to maturity)
where:
Par Value = 1047.5
Face Value = 1000
Coupon rate = 6.5
Years to maturity = 22 years
Coupon Payment Frequency is semi annually.
The Cost of debt = 6.1%
After Tax it would be 4.7% [6.1% * (1 - 23%)]
Next, we will determine the rate of preferred stock before calculating the WACC.
Rate of preferred stock = Annual dividend / Current Price * 100
Rate of preferred stock = 4.65 / 94.3 * 100
Rate of preferred stock = 4.93%
Finally, we will calculate the Market Value (MV) of equity, debt and preferred stock. As shown below:
MV Equity = 240,000 x 64.8 = 15,552,000
MV Debt = 1047.5 x 9300 = 9,741,750
MV preferred stock = 8,300 x 94.3 = 782,690
Total = 26,076,440
WACC = (15,552,000 / 26,076,440 * 10.54%) + (9,741,750 / 26,076,440 * 4.7%) + (782,690 / 26,076,440 * 4.93%)
WACC = 6.28% + 1.76% + 0.15%
WACC = 8.19%
what more, could starbucks have done, to maximize it's chances of success with laboulange
Answer:
It probably felt like the end of the line last year when Starbucks announced plans to close all 22 La Boulange pastry shops. This was the very same croissant-creating brand that Starbucks CEO Howard Schultz once publicly praised as a key to boosting the quality of Starbucks baked goods.
But for La Boulange founder Pascal Rigo, the store closure wasn’t the end. It was a new beginning. At 56, Rigo is in the midst of making one of fast-casual’s most widely watched reinventions. In Humpty Dumpty-like fashion, he is gluing the broken pieces together again and has opened five stores in the San Francisco Bay Area—with two more on the way—under the name, La Boulangerie de San Francisco.
His grand plans: to reassemble La Boulangerie as a fast-casual powerhouse by opening up some 20 to 40 locations. He also plans to enlarge its 40,000-foot baked goods facility in San Francisco that attracts business from such high-profile retail clients as Costco and, reportedly, Trader Joe’s. While it may not be quite the magnitude of what Chipotle CEO Steve Ells accomplished after buying back Chipotle from McDonald’s, the guy who founded La Boulange has a nice chunk of it back from Starbucks.How is Starbucks diversifying itself by purchasing La Boulange? y increasing its product offerings to include bakery items. How does Starbucks' current market power increase its chances for success in expanding its product offerings to include bakery items?
have a good day/night
may i please have a branlliest
sorry if it wrong
Problem solving importance to the future of workplace
Answer:
ha hatdog cheese dog tatay mo sabog
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
The projected benefit obligation was $280 million at the beginning of the year and $300 million at the end of the year. Service cost for the year was $18 million. At the end of the year, there were no pension-related other comprehensive income accounts. The actuary’s discount rate was 5%. What was the amount of the retiree benefits paid by the trustee?
Answer:
$12 million
Explanation:
Calculation to determine the amount of the retiree benefits paid by the trustee
Beg PBO $280 million
Less En PBO ($300 million)
Add Service cost $18 million
Add Interest cost $14 million
(280million*5%)
Retiree benefits Paid by trustee $12 million
Therefore the amount of the retiree benefits paid by the trustee is $12 million
The standard cost of Product B manufactured by Pharrell Company includes 2.3 units of direct materials at $6.70 per unit. During June, 26,800 units of direct materials are purchased at a cost of $6.65 per unit, and 26,800 units of direct materials are used to produce 11,500 units of Product B. (a) Compute the total materials variance and the price and quantity variances. Total materials variance $ Materials price variance $ Materials quantity variance
Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (6.7 - 6.65)*26,800
Direct material price variance= $1,340 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (2.3*11,500 - 26,800)*6.7
Direct material quantity variance= $2,345 unfavorable
Now, the total variance:
Total direct material variance= Direct material price variance +/- Direct material quantity variance
Total direct material variance= 1,340 - 2,345
Total direct material variance= $1,005 unfavorable
During its first year of operations, Swifty Corporation had these transactions pertaining to its common stock. Jan. 10 Issued 27,100 shares for cash at $6 per share. July 1 Issued 60,500 shares for cash at $7 per share. (a) Journalize the transactions, assuming that the common stock has a par value of $6 per share. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $3 per share.
Answer:
Swifty Corporation
Journal Entries:
a) Par value of $6 per share
Jan. 10
Debit Cash $162,600
Credit Common Stock $162,600
To record the issuance of 27,100 shares for cash at $6 per share.
July 1
Debit Cash $423,500
Credit Common Stock $363,000
Credit Additional Paid-in Capital $60,500
To record the issuance of 60,500 shares for cash at $7 per share.
b) Stock at no-par with a stated value of $3 per share:
Debit Cash $162,500
Credit Common Stock $81,300
Credit Additional Paid-in Capital $81,300
To record the issuance of 27,100 shares for cash at $6 per share.
July 1
Debit Cash $423,500
Credit Common Stock $181,500
Credit Additional Paid-in Capital $242,000
To record the issuance of 60,500 shares for cash at $7 per share.
Explanation:
a) Data and Analysis:
a) Par value of $6 per share
Jan. 10 Cash $162,600 Common Stock $162,600 27,100 shares for cash at $6 per share.
July 1 Cash $423,500 Common Stock $363,000 Additional Paid-in Capital $60,500
b) Stock at no-par with a stated value of $3 per share:
Cash $162,500 Common Stock $81,300 Additional Paid-in Capital $81,300
July 1 Cash $423,500 Common Stock $181,500 Additional Paid-in Capital $242,000
At the end of the year, actual Logistics Department variable costs totaled $296,700 and fixed costs totaled $437,950. The Atlantic Division had a total of 4,500 shipments and the Pacific Division had a total of 5,700 shipments for the year. How much Logistics Department cost should be charged to the Pacific Division at the end of the year for performance evaluation purposes
Answer:
The Pacific Division should be charged $ 410,539.70 at the end of the year.
Explanation:
Given that at the end of the year, actual Logistics Department variable costs totaled $ 296,700 and fixed costs totaled $ 437,950, and the Atlantic Division had a total of 4,500 shipments and the Pacific Division had a total of 5,700 shipments for the year, to determine how much Logistics Department cost should be charged to the Pacific Division at the end of the year for performance evaluation purposes, the following calculation should be performed:
296,700 + 437,950 = 734,650
4,500 + 5,700 = 10,200
10,200 = 734,650
5,700 = X
5,700 x 734,650 / 10,200 = X
4,187,505,000 / 10,200 = X
410,539.70 = X
Therefore, the Pacific Division should be charged $ 410,539.70 at the end of the year.
As a consequence of automation and product diversity, in cost estimation Select one: A. companies no longer need to pay attention to estimating overhead. B. direct labor is playing an increasingly important role in cost determination. C. a facility level approach to estimating costs is increasingly important. D. cost estimation is improved with the inclusion of non-unit cost drivers.
Answer:
D. cost estimation is improved with the inclusion of non-unit cost drivers.
Explanation:
In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production. The various type of costs are;
1. Product cost is the expenses incurred when a product is sold.
2. Period cost refers to the period in which costs are incurred.
3. Fixed cost refers to costs that remains constant over variations in production activity, irrespective of amount of goods.
3. Variable cost refers to cost which are the same per unit of production but vary directly with level of output.
4. Direct costs refer to the costs that are peculiar to a particular department or area while indirect cost can't be traced to any.
5. Manufacturing overhead are all indirect cost required in producing a good that isn't associated with direct materials or direct labor.
As a consequence of automation and product diversity, in cost estimation; cost estimation is improved with the inclusion of non-unit cost drivers.
A simple random sample of 60 items resulted in a sample mean of 76. The population standard deviation is 14.
a. Compute the 95% confidence interval for the population mean (to 1 decimal).
Answer: (72.383,79.617)
Round to: (72.4,79.6)
Explanation:
Go to stat, calc, 8-Tinterval, and then just plug in the given information
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 61 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:
Fixed Cost per Month Cost per Course Cost per Student
Instructor wages $2,950
Classroom supplies $280
Utilities $1,220 $65
Campus rent $4,800
Insurance $2,300
Administrative expenses $4,000 $44 $4
For example, administrative expenses should be $4,000 per month plus $44 per course plus $4 per student. The company’s sales should average $870 per student. The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 51 students. The actual operating results for September appear below:
Actual
Revenue $51,660
Instructor wages $11,120
Classroom supplies $17,830
Utilities $1,840
Campus rent $5,000
Insurance $2,240
Administrative expenses $3,734
Required:
Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September.
Answer:
From the attached excel file, we havee:
Revenue and spending income from operations variance = $4,566 Favorable
Activity income from operations variance = -$5,860 Unfavorable
Explanation:
Note: See part a of the attached excel file for the flexible budget performance report that shows both revenue and spending variances and activity variances for September.
Also Note: See parts b and c of the attached excel file for the calculations of revenue and spending variances and activity variances respectively for September.
Johnson is a volunteer fireman for Prince George's County. One evening, he responds to an alarm at a residence. Outside the house, Bob grabs Johnson by the shoulders and says: My little daughter is in the house. Please save her! I'll pay you $20,000.00 if you get her out alive! Johnson bravely rushes into the burning house and rescues the little girl. The next day, Johnson finds Bob and asks for his check. Bob refuses to pay. Under these facts
a. Johnson will lose based on the theory of preexisting duty.
b. Johnson will lose based on the theory of past consideration
c. Johnson will be awarded the money based on the theory of ordinary contract law
d. Johnson will be awarded the money based on the theory of necessity
Answer: a. Johnson will lose based on the theory of preexisting duty.
Explanation:
Based on the information given in the question, Johnson will lose based on the theory of preexisting duty.
According to the theory of preexisting duty, when an individual is under the pre-existing duty to perform ans.auch person is under a contract, there will not be any consideration when there's a modification of the contract and then the modification is void.
In this case, it is the duty of Johnson to save lives as a firefighter. Therefore, saving the daughter of Bob simply means that he's performing his duty and if Bob refuses to pay him, Johnson will lose based on the theory of preexisting duty.