Answer: Memos omit a closing signature.
(I took the test and this was the answer)
Innovative Consulting has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.
Transactions
Mar. 1 Paid rent for the month, $4,000.
3 Paid advertising expense, $1,350.
5 Paid cash for supplies, $1,800.
6 Purchased office equipment on account, $11,500.
10 Received cash from customers on account, $8,600.
15 Paid creditor on account, $3,180.
27 Paid cash for miscellaneous expenses, $700.
30 Paid telephone bill for the month, $550.
31 Fees earned and billed to customers for the month, $37,200.
31 Paid electricity bill for the month, $830.
31 Paid dividends, $2,000.
Journalize the preceding selected transactions for March 2018 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Zenith Consulting Co.
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Office Equipment
LIABILITIES
21 Accounts Payable
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Fees Earned
EXPENSES
51 Rent Expense
52 Advertising Expense
53 Utilities Expense
54 Miscellaneous Expense
Answer:
Innovative ConsultingGeneral JournalDate Account Details Debit Credit
Mar. 1 51 Rent Expense $4,000
11 Cash $4,000
To record the payment for rent for the month.
Mar. 3 52 Advertising Expense $1,350
11 Cash $1,350
To record the payment for advertising expense.
Mar. 5 13 Supplies $1,800
11 Cash $1,800
To record the payment for supplies.
Mar. 6 14 Office Equipment $11,500
21 Accounts Payable $11,500
To record the purchase of office equipment on account.
Mar. 10 11 Cash $8,600
12 Accounts Receivable $8,600
To record the receipt of cash from customers.
Mar. 15 21 Accounts Payable $3,180
11 Cash $3,180
To record the payment of creditor on account.
Mar. 27 54 Miscellaneous Expense $700
11 Cash $700
To record the payment of Miscellaneous expense.
Mar. 30 53 Utilities Expense $550
11 Cash $550
To record the payment of telephone bill.
Mar. 31 2 Accounts Receivable $37,200
41 Fees Earned $37,200
To record fees earned and billed to customers for the month.
Mar. 31 53 Utilities Expense $830
11 Cash $830
To record the payment of electricity bill.
Mar. 31 33 Dividends $2,000
11 Cash $2,000
To record the payment of dividends to shareholders.
Explanation:
Innovative Consulting records business transactions as they occur on a daily basis in the general journal. Journal entries are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.
An informal trade barrier is created by government actions.
Oa. True
Ob. False
During 2020, Stellar Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Stellar for a lump sum of $137,655 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below. Type No. of Chairs Estimated Selling Price Each Lounge chairs 920 $90 Armchairs 690 80 Straight chairs 1,610 50 During 2020, Stellar sells 460 lounge chairs, 230 armchairs, and 276 straight chairs. What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.) Gross profit realized during 2020 $enter a dollar amount 27,232 Amount of inventory of unsold straight chairs $enter a dollar amount 42,021
Answer:
What is the amount of gross profit realized during 2020?
(460 x $33.30) + (230 x $29.60) + (276 x $18.50) = $27,232
What is the amount of inventory of unsold straight chairs on December 31, 2020?
[(920 - 460) x $56.70] + [(690 - 230) x $50.40] + [(1,610 - 276) x $31.50] = $26,082 + $23,184 + $42,021 = $91,287
Explanation:
lump sum cost of chairs = $137,655
Type Chairs Selling Price Each Total
Lounge chairs 920 $90 $82,800
Armchairs 690 $80 $55,20
Straight chairs 1,610 $50 $80,500
total 3,220 $218,500
if we allocate costs based on resale, then each chair should cost:
Lounge chairs $90 x ($137,655 / $218,500) = $56.70
Armchairs $80 x ($137,655 / $218,500) = $50.40
Straight chairs $50 x ($137,655 / $218,500) = $31.50
contribution margin per chair:
Lounge chairs $90 - $56.70 = $33.30
Armchairs $80 - $50.40 = $29.60
Straight chairs $50 - $31.50 = $18.50
Allocation is the distribution of a good or service.
True
False
Answer:
True
Explanation:
Allocation the action or process of allocating or distributing something.
Answer:
It's True
Explanation:
On edge 2021
A company will pay a $2 per share dividend in 1 year. The dividend in 2 years will be $4 per share, and it is expected that dividends will grow at 2% per year thereafter. The expected rate of return on the stock is 12%. a. What is the current price of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the expected price of the stock in a year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
(a) $ 46.43
(b) $ 50.00
Explanation:
In 1 year the dividend is:
D1 = $2
In 2 years, the dividend is:
D2 = $4
(a)
Now,
⇒ [tex]D3=D2\times (1+g)[/tex]
[tex]=4\times (1+4 \ percent)[/tex]
[tex]=4.16[/tex] ($)
In 2 years, the price will be:
⇒ [tex]P2=\frac{D3}{(r-g)}[/tex]
[tex]=\frac{4.16}{12 -14}[/tex]
[tex]=52.00[/tex] ($)
Today's price will be:
⇒ [tex]P0=\frac{D1}{(r-g)}+\frac{D2+P2}{(1+r)^2}[/tex]
[tex]=\frac{2}{1.12}+\frac{(4+52) }{1.12^2}[/tex]
[tex]=46.43[/tex] ($)
(b)
In 1 year, the price will be:
⇒ [tex]P1=\frac{(D2+P2)}{(1+r)}[/tex]
[tex]=\frac{4+52}{1.12}[/tex]
[tex]=50.00[/tex] ($)
NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.53 a share. The following dividends will be $.58, $.73, and $1.03 a share annually for the following three years, respectively. After that, dividends are projected to increase by 3.6 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 10 percent? Multiple Choice $16.67 $17.27 $3.40 $17.20 $13.60
Answer:
The current stock price is $13.60
Explanation:
D1 = $0.53
D2 = $0.58
D3 = $0.73
D4 = $1.03
Growth rate, g = 3.60%
Required return, r = 10.00%
D5 = D4 * (1 + g)
D5 = $1.03 * 1.036
D5 = $1.06708
P4 = D5 / (r - g)
P4 = $1.06708 / (0.10 - 0.036)
P4 = $16.673125
P0 = $0.53/1.10 + $0.58/1.10^2 + $0.73/1.10^3 + $1.03/1.10^4 + $16.673125/1.10^4
P0 = $13.60
So, current stock price is $13.60
Middle management is the intermediate management level accountable to top management and responsible for leading lower level managers. Which of the following is not a typical function of middle management? Middle management is at the center of a hierarchical organization, subordinate to the senior management but above the lowest levels of operational staff. Middle managers are accountable to top management for their department’s function. They provide guidance to lower-level managers and inspire them to perform better. Middle managers balance a functional or technical understanding of those who report to them with the interpersonal skills of a manager. This form of leadership requires a strong ability to communicate, mentor, train, hire, organize, optimize processes, and prioritize. Middle-management functions generally revolve around enabling teams of workers to perform effectively and efficiently and reporting these performance indicators to upper management. Middle management may be reduced in organizations as a result of reorganization. Such changes can take the form of downsizing," delayering," and outsourcing.
Answer:
Middle Management
Which is not a typical function:
Middle management may be reduced in organizations as a result of reorganization. Such changes can take the form of downsizing," delayering," and outsourcing.
Explanation:
Options:
1. Middle management is at the center of a hierarchical organization, subordinate to the senior management but above the lowest levels of operational staff.
2. Middle managers are accountable to top management for their department’s function. They provide guidance to lower-level managers and inspire them to perform better.
3. Middle managers balance a functional or technical understanding of those who report to them with the interpersonal skills of a manager. This form of leadership requires a strong ability to communicate, mentor, train, hire, organize, optimize processes, and prioritize.
4. Middle-management functions generally revolve around enabling teams of workers to perform effectively and efficiently and reporting these performance indicators to upper management.
5. Middle management may be reduced in organizations as a result of reorganization. Such changes can take the form of downsizing," delayering," and outsourcing.
The last option (No. 5) is certainly not a function of middle management. It is what happens to middle management during reorganization.
Cortez Company is planning to introduce a new product that will sell for $96 per unit. The following manufacturing cost estimates have been made on 20,000 units to be produced the first year: Direct materials $ 800,000 Direct labor 640,000 (= $16 per hour × 40,000 hours) Manufacturing overhead costs have not yet been estimated for the new product, but monthly data on total production and overhead costs for the past 24 months have been analyzed using simple linear regression. The following results were derived from the simple regression and provide the basis for overhead cost estimates for the new product. Simple Regression Analysis Results Dependent variable—Factory overhead costs Independent variable—Direct labor-hours Computed values Intercept $ 120,000 Coefficient on independent variable $ 5.00 Coefficient of correlation 0.921 R2 0.848 Required: a. What percentage of the variation in overhead costs is explained by the independent variable? 92.10% 45.00% 84.80% 8.48% None of the above
Answer:
84.80%
Explanation:
According to the given situation, the computation of the percentage of the variation is shown below:-
The Percentage of the variation is
= R^2 × Percentage
= 0.848 × 100
= 84.80%
Therefore for computing the percentage of the variation we simply applied the above formula.
hence, the percentage of variation is 84.80%
Today you are feeling bullish on UPP stock. You decide the best way to play that opinion is to purchase 5 call options that expire in 4 months with a strike price of 70.00. To lower your risk and your cost basis you simultaneously sell 3 call options that also expire in 4 months with a strike price of 77.50. The current stock price is 70.80. The price of the 70-strike call is 5.50 and the price of the 77.50 strike call is 2.40. The current continuously compounded risk free rate is 3% (annual). 3.
a. Calculate your profit/loss if the ending price of one share of UPP stock is 80.00.
b. Calculate your profit/loss if the ending price of one share of UPP stock is 65.00.
Answer:
a. Total profit = $22.2
b. Total profit = -$20.3 / Loss of $20.3.
Explanation:
a) If ending price is $80
Profit of long call = No. of contracts * [max(St - X,0) - premium paid]
Long call profit = 5 * [max(80 - 70,0) - 5.5]
Long call profit = 5 * [10 - 5.5]
Long call profit = $22.5
Profit of short call = No. of contracts * [-max(St - X, 0) + Premium received]
Profit of short call = 3 * [-max(80 - 77.5, 0) + 2.4]
Profit of short call = 3 * [-2.5 + 2.4]
Profit of short call = -$0.3
Total profit = Long call profit - Profit of short call
Total profit = 22.5 - 0.3
Total profit = $22.2
b) If ending price is $65
Profit of long call = No. of contracts * [max(St - X,0) - premium paid]
Profit of long call = 5 * [max(65 - 70, 0) - 5.5]
Profit of long call = 5 * [0 - 5.5]
Profit of long call = -$27.5
Profit of short call = No. of contracts * [-max(St - X, 0) + Premium received]
Profit of short call = 3 * [-max(65 - 77.5, 0) + 2.4]
Profit of short call = 3 * [0 + 2.4]
Profit of short call = $7.2
Total profit = Long call profit - Profit of short call
Total profit = -27.5 + 7.2
Total profit = -$20.3 / Loss of $20.3.
A three-year bank CD paying 7.23 percent compounded quarterly. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % eTextbook and Media A three-year bank CD paying 7.03 percent compounded monthly. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % eTextbook and Media A three-year bank CD paying 7.53 percent compounded annually. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % eTextbook and Media Which of the above investments has the highest effective annual interest rate (EAR)?
Answer:
Follows are the solution to the question:
Explanation:
m = 4,
EAR = [tex](1 + \frac{0.08}{4}) \times 4-1[/tex]
[tex]= 1 + 0.02 \times 4-1\\\\= 1 + 0.08 -1\\\\= 0.08\\\\[/tex]
The successful quarter cumulative rate of interest = 8.24 \%
In Method 2 use Tool in Texas:
By Using the (ICONV) worksheet:
1)
To pick the worksheet, click ICONV 2.
2)
Its previous meaning will represent the NOM.
3)
To clear the worksheet, click [CLR WORK] 2nd
Continue as below.
Displayed keystrokes:
NOM = previous value 2nd ICONV:
NOM = 0.00 2nd CLRWORK:
8 DAYS: Name = 8.00.
EFF: DownArrow = 0.00
DownArrow: C / Y = meaning previous
4)
DOS: C / Y = 5.00 p.m.
EFF: DownArrow = 0.00
CPT: FRP = 8.24
Which of the following descriptions pertains to a "Cognitive" style of decision-making? Review Later Decisions derived from the needs, desires, preferences, and/or values of the individual making the decision. This type of decision-making is centered on the individual deciding. An integrated feedback system between the individual/organization making a decision, and the broader environment’s reactions to those decisions. This type of decision-making process involves iterative cycles and constant assessment of the reactions and impacts of the decision. In many ways, decision making (particularly in groups, such as within an organization) is about communicative rationality. This is to say that decisions are derived based on the ability to communicate and share logic, using the firm’s premises and conclusions to drive behavior. Two answers in this answer set are correct. None of the answers in this answer set are correct.
Answer:
An integrated feedback system between the individual/organization making a decision, and the broader environment’s reactions to those decisions. This type of decision-making process involves iterative cycles and constant assessment of the reactions and impacts of the decision.
Explanation:
As the name implies, cognition requires the use of the senses to acquire information and process that information so as to enable better decision making. Individuals and organizations make use of the cognitive style of decision-making when they obtain information and process them to see how they affect others. The effects of the decisions should be properly observed and analyzed.
The method follows a circle. So, when one aim is reached, the decision-maker can evaluate whether it is satisfactory or whether more efforts should be made.
Kevin Hall is saving for an Australian vacation in three years. He estimates that he will need $5,920 to cover his airfare and all other expenses for a week-long holiday in Australia. If he can invest his money in an S&P 500 equity index fund that is expected to earn an average annual return of 10.5 percent over the next three years, how much will he have to save every year if he starts saving at the end of this year? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)
Answer:
$1,779.90
Explanation:
Formula for finding the amount he has to save, this formula would be used :
Amount = FV / annuity factor
Annuity factor = [(1 + r)^n - 1 / r]
FV = Future value = $5920
n = number of years = 3
i = interest rate = 10.5
Annuity factor = (1.105^3 - 1 ) / 0.105 = 3.326025
$5920 / 3.326025 = $1,779.90
3.Griffin Corporation has decided to alter their dividend policy starting next year. They just paid out $1.75 per share in dividends and are planning a major expansion over the next 4 years. They have announced that they will not pay any dividends during this expansion period. Starting in year 5, they will resume their historical dividend payout of $1.75 a share. They plan on increasing this dividend by 3% each year, thereafter. If shareholders require a 12% return on this stock, what should the stock be selling for in the market
Answer:
$12.36
Explanation:
Div₀ = $1.75
Div₁ = $0
Div₂ = $0
Div₃ = $0
Div₄ = $0
Div₅ = $1.75
Div₆ = $1.8025
first we must determine the terminal value at year 5 = Div₆ / (Re - g) = $1.8025 / (12% - 3%) = $20.03
now we must discount the future dividends using Re = $1.75/1.12⁵ + $20.03/1.12⁵ = $0.99 + $11.37 = $12.36
If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is: Multiple Choice Debit Cash and credit Legal Fees Earned. Debit Cash and credit Unearned Legal Fees. Debit Unearned Legal Fees and credit Legal Fees Earned. Debit Legal Fees Earned and credit Unearned Legal Fees. Debit Unearned Legal Fees and credit Accounts Receivable.
Answer:
The correct option: Debit Unearned Legal Fees and credit Legal Fees Earned
Explanation:
An UNEARNED FEES can be defined as the amount of money a company or an organization receives from their customer in advance for the services the company or the organization has not yet rendered which is why unearned fees is often recorded as a liability in the balance sheet until when the service has been rendered by the company to the customer before it will be reported as asset in the balance sheet while LEGAL FEES EARNED on the other hand is in form of an income statement account that help to show and report the amount of money or revenue amount that was been earned for service rendered to the customer.
fees fees fees fees fees fees
If Rina's boss is interested in a graphical representation of the relationship between the price and quantity of televisions demanded, you would advise your coworker to construct _________ using the data provided. However, if Rina's boss is more interested in the detailed numbers used to construct this visual representation, you would instead advise your coworker that ________ would be more appropriate.
Answer: a demand curve
Demand schedule
Explanation:
If Rina's boss is interested in a graphical representation of the relationship between the price and quantity of televisions demanded, you would advise your coworker to construct "a demand curve" using the data provided.
It should be noted that a demand curve is simply a graph that helps in showing the relationship that exists between the price of a particular good or service and the quantity that is being demanded for that particular good. In the graph, on the left vertical axis.is where the price will appear, and on the horizontal axis is where the quantity that is demanded will appear.
However, if Rina's boss is more interested in the detailed numbers used to construct this visual representation, you would instead advise your coworker that data schedule would be more appropriate.
A demand schedule is a simply a table which will help in showing how many of a particular good are being demanded at different prices.
HELP HELP HELP MEEE
if joseph is paid 225$ for the week and he worked 20 hours during the week what is his fixed rate?
Answer:
11.25 dollars per hour
Explanation:
225/20
11.25
Brainliest appreciated!
Southwest Airlines is able to keep fares low, in part because of relatively low maintenance costs on its airplanes. One of the main reasons for the low maintenance costs is that Southwest flies only one type of aircraft: the Boeing 737. However, Southwest flies three different versions of the 737. Suppose Southwest decides to conduct a study to determine whether there is a significant difference in the average annual maintenance costs for the three types of 737s used. a. State a measurable dependent variable for such a study. b. State a factor that might affect the independent variable, and list at least three levels.
:
.
Explanation:
the reason maintenance cost are low is because the airline has just one type of aircraft which is boeing 737.
a. the measurable dependent variable for the study is the fares of the southwast airlines.
b. a factor that might affect the independent variable is the three versions that are being used by the southwest airlines. the independent variable here is the maintenance cost of the airlines. the factor has 3 different levels which are boeing -700, -800, -900ER
thank you!
Andrew plans to retire in 40 years. He plans to invest part of his retirement funds in stocks, so he seeks out information on past returns. He learns that over the entire 20th century, the real (that is, adjusted for inflation) annual returns on U.S. common stocks had mean 8.7% and standard deviation 20.2%. The distribution of annual returns on common stocks is roughly symmetric, so the mean return over even a moderate number of years is close to Normal. What is the probability (assuming that the past pattern of variation continues) that the mean annual return on common stocks over the next 40 years will exceed 10%
Answer:
26%
Explanation:
Given that Mean, μ = 8.7% = 0.087
Standard Deviation, σ = 20.2% = 0.202
Normal distribution, n = 40
Notice that the distribution annual returns of stocks are a bell-shaped distribution.
hence, using the formula
Zscore = (x - μ ) / σ
= where we have P(return greater than 10%)
= P(x > 0.10)
= P(x > 0.10) = P [z > (0.10 - 0.087)/0.202]
= P (z > 0.0643)
= 1 - P (z > 0.0643)
= Using the value from standard normal z table,
= P (x > 610) = 1 - 0.740 =0.26 = 26%
Hence, the correct answer is 26%.
Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.March 1 - Bills are sent to clients for services provided in February in the amount of $800.March 9 - Corner Office, Inc. delivers office furniture ($1,060) and office supplies ($160) to Nexium leaving an invoice for $1,220.March 15 - Payment is made to Corner Office, Inc. for the furniture and office supplies delivered on March 9.March 23 - A bill for $430 for electricity for the month of March is received and will be paid on its due date in April.March 31 – Salaries of $850 are paid to employees.For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Answer: Please find answers in explanation column
Explanation:
Journal entry for Nexium & Associates
1.Journal to record Services provided in February.
Date Account Debit Credit
March 1 Accounts receivable $800
Service revenue $800
2.Journal to record purchase of furniture and supplies on account.
March 9 Office furniture $1,060
Office supplies $160
Accounts payable $1,220
3.Journal To record payment made to suppliers, Corner Office Inc.
March 15 Accounts payable $1,220
Cash $1,220
4.Journal To record the bill of electricity for march which is not yet due to be paid till April.
March 23 Electricity expense $430
Outstanding Liabilities $430
5.Journal To record the salary payment to employees.
March 31 Salaries expense $850
Cash $850
upo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours32,800 Total fixed manufacturing overhead cost$164,000 Variable manufacturing overhead per machine-hour$ 5 Recently, Job T687 was completed with the following characteristics: Number of units in the job10 Total machine-hours30 Direct materials$ 745 Direct labor cost$1,490 The unit product cost for Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer: $253.50 per unit
Explanation:
Total Overhead = Fixed manufacturing Overhead + Variable Manufacturing Overhead
= 164,000 + ($5 * 32,800)
= $328,000
Manufacturing overhead rate per hour = Total Overhead/ Machine hours
= 328,000/32,800
= $10 per hour
Job T687 used 30 machine hours so its manufacturing overhead is;
= 10 * 30
= $300
Job T687 cost = Direct materials + Direct labor cost + Manufacturing overhead
= 745 + 1,490 + 300
= $2,535
There were 10 units in the Job so unit product cost is;
= 2,535/10
= $253.50 per unit
Explain the different sources of short-term and long-term finance available to a sole trader and
available to a limited company. Advise Chris on whether becoming a sole trader or becoming a
limited company.
Answer:
short term finance is the process by which finance goes for short period of time, while long term finance is the process by which the finance company go for a long period of time
Explanation:
I advise Chris to become a limited company
Making the pro-forma financial statements as complicated as possible is always best
Answer:
false
Explanation:
Calculating the Predetermined Overhead Rate, Applying Overhead to Production, Reconciling Overhead at the End of the Year, Adjusting Cost of Goods Sold for Under- and Overapplied Overhead At the beginning of the year, Han Company estimated the following: Overhead $582,400 Direct labor hours 80,000 Han uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 6,950. By the end of the year, Han showed the following actual amounts: Overhead $613,320 Direct labor hours 84,100 Assume that unadjusted Cost of Goods Sold for Han was $927,000.
Required:
1. Calculate the predetermined overhead rate for Han. Round your answer to the nearest cent. $ per direct labor hour
2. Calculate the overhead applied to production in January. (Note: Round to the nearest dollar.) $
3. Calculate the total applied overhead for the year. $ Was overhead over- or underapplied? By how much? overhead $
4. Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance.
Answer:
Instructions are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 582,400/80,000
Predetermined manufacturing overhead rate= $7.28 per direct labor hour
Now, we can allocate overhead based on actual hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
January:
Allocated MOH= 7.28*6,950= $50,596
Year:
Allocated MOH= 7.28*84,100= $612,248
Now, we can determine the under/over allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 613,320 - 612,248
Under/over applied overhead= $1,072 underallocated
If overhead is underallocated, the cost of goods sold should increase:
Adjusted COGS= 927,000 + 1,072= $928,072
Jim wants to start his own business and needs $10,000 for working capital. He applies for a business loan at FirstBank. The banker tells Jim that the Bank will make the loan if Jim's father will personally guarantee repayment of the loan. Jim assures the banker that his father will do this. The banker calls Jim's father to confirm that he will guarantee Jim's $10,000 loan. Jim's father says: "Sure thing, I'd do anything for that boy." The bank makes the loan to Jim. Jim's new business is not successful and Jim is unable to repay the loan. Jim has no money. Jim's father has buckets of money. The bank sues Jim's father to recover the unpaid amount of the loan plus interest plus attorneys' fees and costs of collecting the debt.
Which of the following is true?
A. Jim's father can make a strong argument that he is not liable to pay his son's debt because the Bank did not have him sign a written guaranty agreement.
B.The oral agreement to guaranty the loan is not enforceable because it is contrary to public policy.
C.Jim’s father is liable to pay his son’s debt because the Bank partially performed under the loan agreement.
D.If it can be proven in a court of law that Jim's father orally agreed to guarantee the loan, Jim's father will be held liable for the repayment of the loanbecause 'a deal is a deal'.
Answer:
D. If it can be proven in a court of law that Jim's father orally agreed to guarantee the loan, Jim's father will be held liable for the repayment of the loan because 'a deal is a deal'.
Explanation:
In this case, an offer was made by the bank to Jim with his father as a third party, of which his father agreed to the terms and conditions of the loan through an oral channel. An oral channel is an acceptable means of communication of agreement. It could be through a phone call or fax. So, a contract has been consented to by Jim's father.
Jim's father is thus liable for the repayment of the loan.
Garvey's Fine Furnishings manufactures upscale custom furniture. currently uses a plantwide overhead rate based on direct labor hours to allocate its of manufacturing overhead to individual jobs. However, , owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs of manufacturing overhead while the Finishing Department incurs of manufacturing overhead. has identified machine hours (MH) as the primary manufacturing overhead cost driver in the Machining Department and direct labor (DL) hours as the primary cost driver in the Finishing Department.
Requirement 1. Compute the plantwide overhead rate assuming that Garvey's expects to incur 30,000 total DL hours during the year First identify the formula, then compute the rate.
Total manufacturing overhead / Cost allocation base = Plantwide overhead
(estimated) rate
$1,290,000 / 30,000 = 43
Requirement 2. Compute departmental overhead rates assuming that Garvey's expects to incur 14,500 MH in the Machining Department and 17,500 DL hours in the Finishing Department during the year. First identify the formula, then compute the rate for each department.
Total department / Cost allocation base = Departmental
overhead (estimated) overhead rate
Machining 870,000 / 14,500 = 60 per mach hour
Finishing 420,000 / 17,500 = 24 per DL hour
Requirement 3. If Garvey's continues to use the plantwide overhead rate, how much manufacturing overhead would be allocated to Job 450 and Job 455? Identify th formula, then calculate the amount of manufacturing overhead that would be allocated to the jobs if the plantwide overhead rate is used.
Actual use of Manufacturing overhead
Plantwide overhead rate x allocation base = allocated
Job 450 43 x 5 = 215
Job 455 43 x 5 = 215
Requirement 4. Based on your answers to Requirements 2 and 3, does the plantwide overhead rate overcost or undercost either job? Explain. If Garvey's sells its furniture at 125% of cost, will its choice of allocation systems affect product pricing? Explain.
The single plantwide rate undercosts Job 450 by $1 and undercosts Job 455 by $216.
Answer and Explanation:
1. Plantwide overhead rate =Total manufacturing cost divided cost allocation base= 1290000/30000= $43
2. Departmental overhead rate=
Total department / Cost allocation base =
For Machining
870,000 / 14,500 = 60 per machine hour
For Finishing
420,000 / 17,500 = 24 per DL hour
3.
=Plantwide overhead rate(see above) x allocation base
For Job 450 =
43*5=$215
For Job 455 =
43*5=$215
4. Add up machining and finishing for each job
Job 450= (2*60)+(4*24)=216
Job 455= (7*60)+(3*24)= 492
Total overhead allocation for job 450 = 216
Total overhead allocation for job 455=
492
Job 450 plant wide overhead rate under costs it by 216-215=$1
Job 455 plant wide overhead rate undercosts it by 492-215=$277
5. The price is set at 125% of cost and is therefore based on cost which is affected by the cost allocation system used here. Hence choice of allocation system affects price
What are the inventory methods used in accounting?
Answer:
- specific identification;
- first-in, first-out (FIFO);
- last-in, first-out (LIFO); and.
- weighted-average.
What is number one player in chess
Answer:
Magnus Carlsen
Explanation:
Managers in nonprofit organizations must prioritize the needs of
Answer:
One of the distinctive features of management in a nonprofit is the fact that the organizationhasmultiple stakeholderswhose needs are often equally important. Although a nonprofit organizationby definition does not earn profits, it must manage its bottom line. Nonprofits are usually driven by asocial mission that can be difficult to quantify, and they have clients or users of their services whose
Explanation:
How can social media endanger the safety of military service members and journalists?
Hackers may install spyware on government computers.
GPS technology may accidentally leak confidential information about location.
Communicating with friends and family while overseas leads to danger.
Terrorist groups may use social media to recruit new members.
Answer:
"GPS technology may accidentally leak confidential information about the location."
Explanation:
A good case in point was a watch tracking service that leaked classified GPS coordinates of our military servicemen and women's location. It jeopardized our ability to effectively operate in a foreign land without notice of occupied territory.
In this question, it places our military and journalists at risk because they know where they are at and so forth.
Ross is the CEO of IO Technological Solutions (IOTS), a multinational company. Ross stresses on a decentralized working environment and is very friendly with his staff. In board meetings, he stresses that every top level employee at IOTS should focus on building a personal relationship with his or her team members and mentor them to succeed in their work. In this scenario, Ross focuses on a __________ for his company. Group of answer choices hierarchy culture market culture clan culture adhocracy culture
Answer: Clan culture
Explanation:
Clan Culture like the term implies refers to a type of corporate environment where a collaborative nature is encouraged and fostered such that people try to achieve common goals the way a clan would by being united and interested in the growth of one another because this will lead to the growth of the company as a whole.
In being friendly with staff and encouraging top management to try to get their team members to succeed, Ross is following a clan culture. This type of corporate environment is known to be the least competitive type as a result.