Answer:
A. about 2.0%
Explanation:
The forecasted error for week 1 is 1%. The demand for week 1 is 50 while estimated demand or forecast was 49. The difference between the two values is 1. The forecasted demand for week 2 is 50 while actual demand for week 2 is 54. The difference between the forecast and actual value is 4. The difference in week 3 is 5. Mean absolute deviation is 6% which means there can be 6% standard deviation from the forecasted values.
The error in Mean Absolute Percentage would be as follows:
A). about 2.0%
What is the Mean Absolute Percentage?
Given that,
Week 1
The error in the forecast = 1%
Demand = 50
Forecasted demand = 49
The difference in the estimated demand and actual demand = 50 -49 = 1
Week 3
The error in the forecast = 1%
Demand = 58
Forecasted demand = 63
The difference in the estimated demand and actual demand = 63 - 58 = 5
Also,
Mean deviation [tex]= 6%[/tex]%
This implies that the standard deviation in the three values is of [tex]6[/tex]%.
∵ 2% is the error
Thus, option A is the correct answer.
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The following information is available for Bonita Industries: Allowance for doubtful accounts at December 31, 2019 $23500 Credit sales during 2020 1280000 Accounts receivable deemed worthless and written off during 2020 28900 As a result of a review and aging of accounts receivable in early January 2021, it has been determined that an allowance for doubtful accounts of $16700 is needed at December 31, 2020. What amount should Bonita record as "bad debt expense" for the year ended December 31, 2020?
Answer:
$22,100
Explanation:
With regards to the above, the calculation for bad debt expense is is given as;
= Bad debt expense balance required + bad debt written off from accounts receivables - Existing bad debt allowance balance
= $16,700 + $28,900 - $23,500
= $22,100
Therefore, bad debt expense for the year ended December 31, 2020 is $22,100
From the next year onwards, Colt Systems is estimated to have an EBIT of $15 million. It will also spend $6 million annually on total capital expenditures and increases in net working capital, and have $3 million in depreciation expenses. Colt is currently an all-equity firm with a corporate tax rate of 35% and a cost of capital of 10%. a) What is the market value of its equity today (assuming all cash flows are paid back to the equity holders at the end of each year)?
Answer: $67.5 million
Explanation:
Since we are given the information that all cash flows are paid back to the equity holders at the end of each year, the market value of its equity today will be:
= [EBIT × (1 - t) + Depreciation - Capital Expenditure - Change in Working capital] / (Cost of Capital - Growth rate)
= ($15 million(1 - 35%) + $3 million - $6 million) / 10%
= [$15 million (1 - 0.35) + $3 million - $6 million] / (10%
= ($15 million × 0.65) + $3 million - $6 million) / 0.1
= ($9.75 million + $3 million - $6 million)/0.1
= $6.75 million / 0.1
= $67.5 million
Calculate Cost of Goods Manufactured for 2019 using the following information. Direct Materials, Jan. 1, 2019 $ 40,000 Work-in-Process, Dec. 31, 2019 69,000 Direct Labor 48,500 Finished Goods, Dec. 31, 2019 105,000 Finished Goods, Jan. 1, 2019 128,000 Manufacturing Overhead 72,500 Direct Materials, Dec. 31, 2019 43,000 Work-in Process, Jan. 1, 2019 87,000 Purchases of Direct Material 75,000
Answer:
$234,000
Explanation:
Calculation to determine the Cost of Goods Manufactured for 2019
First step is to calculate the direct materials used in production
Direct materials used in production=$40,000+$75,000-$43,000
Direct materials used in production=$72,000
Second step is to calculate the COGM
COGM=$87,000+$72,000+$48,500+$72,500-$69,000
COGM=$211,000
Now let calculate the COGS
COGS=$128,000+$211,000-$105,000
COGS=$234,000
Therefore the Cost of Goods Manufactured for 2019 is $234,000
Answer:
sry need to answer (points) :(
Explanation:
Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of directors declares a 20 percent stock dividend. This stock dividend will be distributed on January 20, 2019 to the stockholders of record on January 15, 2019. The market price of the company's stock is $10 per share on December 31, 2018.
Complete the necessary journal entry to record the declaration of the stock dividend by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns
list Journal entry worksheet
Mustang Corporation had 100,000 shares of $2 par value common stock outstanding On December 31, 2018, the company's board of directors declares a 20 percent stock dividend. This stock dividend will be distributed on January 20, 2019 to the stockholders of record on January 15, 2019. The market price of the company's stock is $10 per share on December 31, 2018
Note Enter debit before credits
Date General Journal Debit Credit
Dec 31
Record entry Clear entry View General journal
Answer:
1. Dec 31, 2018
Dr Retained Earnings $200,000
Cr Common Stock dividend distributable $40,000
Cr Paid in Capital in Excess of par $160,000
2. Jan 15 , 2019
No Journal Entry is required
3. Jan 20 , 2019
Dr Common Stock dividend distributable $40,000
Cr Common Stock $40,00
Explanation:
Preparation of the necessary journal entry to record the declaration of the stock dividend
1. Dec 31, 2018
Dr Retained Earnings $200,000
(100,000 Shares * 20%* $ 10)
Cr Common Stock dividend distributable $40,000
(100,000 Shares * 20%* $2)
Cr Paid in Capital in Excess of par $160,000
($ 200,000 - $ 40,000 )
2. Jan 15 , 2019
No Journal Entry is required
3. Jan 20 , 2019
Dr Common Stock dividend distributable $40,000
Cr Common Stock $40,000
(100,000 Shares * 20%* $2)
Mrs. Williams finds that she has two options for investing $32,000.02 for fifteen years. The first option is to deposit the $32,000.02 into a fund earning a nominal rate of discount d(4) payable quarterly. The second option is to purchase an annuity-immediate with 15 level annual payments, the annuity payments computed using an annual effective rate of 7%, and then when she gets an annuity payment, to immediately invest it into a fund earning an annual effective rate of 5%. Mrs. Williams calculates that the second option produces an accumulated value that is $1,500 more than the accumulated value yielded by the first option. Calculate d(4).
Answer:
faith
Explanation:
A company's income statement showed the following: net income, $130,000; depreciation expense, $38,000; and gain on sale of plant assets, $12,000. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $11,000; merchandise inventory increased $26,000; prepaid expenses increased $7,800; accounts payable increased $5,000. Calculate the net cash provided or used by operating activities.
Answer:
$138,200
Explanation:
Calculation the net cash provided or used by operating activities.
Net income $130,000
Depreciation $38,000
Gain on sale long-term asset ($12,000)
Account Receivable decreased $11,000
Inventory Increased ($26,000)
Prepaid Expenses Increased ($7,800)
Account Payable Increased $5,000
Net cash provided by operating activities $138,200
Therefore net cash provided or used by operating activities is $138,200
World trade benefits from free and fair trade among nations. Nevertheless, governments of many countries continue to practice protectionism. While protectionism earns profits for domestic producers and tariff revenues for governments, consumers pay higher prices because of protective restrictions. Imposing tariffs increases the price of goods to consumers. Removing tariffs decreases the price of goods to consumers. Imposing quotas limits supply and therefore increases the price of goods to consumers. Removing quotas makes products more available and therefore decreases the price of goods to consumers.
Answer:
Economic effects of imposing a tariff is that it will increase the prices for the goods and consumers will have to pay more for certain good.
Explanation:
Many countries promote trade without tariff so that they can benefit the consumers of their country, but this is only possible if both countries have good relations. Many countries are governed by World trade organizations in order to govern the trade policies. The countries can flourish their trade if they have minimum tariffs and trade policies. Imposition of higher tariff will create burden on consumers of a country.
Sheffield Corp. sells its product for $70 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $12, and variable overhead $1. Fixed costs are: $720000 manufacturing overhead, and $90000 selling and administrative expenses. The per unit manufacturing cost under absorption costing is
Answer:
$40
Explanation:
Calculation to determine what The per unit manufacturing cost under absorption costing is
The per unit manufacturing cost under absorption costing= $15 + $12 + $1 + ($720,000 / 60,000)
The per unit manufacturing cost under absorption costing= $15 + $12 + $1 +$12
The per unit manufacturing cost under absorption costing= $40
Therefore The per unit manufacturing cost under absorption costing is $40
The president of the Micro Brewing Corporation asks you, as the company economist, to forecast changes in consumer beer purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $5.50 to $7.50, the quantity demanded will decrease from 2200 units to 1800 units a month. Should the Micro Brewing Corporation raise its price? Explain the economic basis for this recommendation to the president
Answer:
It is more profitable to raise the selling price by $2.
Explanation:
To determine whether the company should raise the selling price, we need to determine the effect on income. The best option is the one with the higher sales revenue.
Sales revenue= selling price * number of units
Current:
Sales revenue= 5.5*2,200= $12,100
Proposal:
Sales revenue= 7.5*1,800= $13,500
It is more profitable to raise the selling price by $2.
A trader wishes to know the cost of goods sold during the year.
Which financial statment will provide the answer? *
A Balance sheet
B Profit and loss Account
C Trading Account
D Trial Balance
Three professors at George Washington University did an experiment to determine if economists are more selfish than other people. They dropped 122 stamped, addressed envelopes with $20 cash in two different classrooms (one economics, one not) on the George Washington campus. Of these, 42% were returned overall. From the economics class 51% of the envelopes were returned. From the other class 36% were returned.
From
the business, psychology, and history classes 31% were returned.
Let: R = money returned; E = economics classes; O = other classes
a. Write a probability statement for the overall percent of money returned.
b. Write a probability statement for the percent of money returned out of the economics classes.
c. Write a probability statement for the percent of money returned out of the other classes.
d. Is money being returned independent of the class? Justify your answer numerically and explain it.
e. Based upon this study, do you think that economists are more selfish than other people? Explain why or why not. Include numbers to justify your answer.
Solution :
It is given that :
At George Washington University, three professors wanted to do an experiment to find out if the economist people are more selfish than the other people.
They dropped 122 stamped addressed envelopes filled with 20 dollar cash at a economics classroom and the other at the other subjects classroom.
It is given that --
money returned = R
economics classes = E
other classes = O
a). the probability statement of the overall percent of the money returned is given by : 100.P(R)
b). the statement of probability that the percent of money returned out of the economics classes is 100.P(R|E)
c). the statement of probability that shows the percent of the money returned out of the other classes is 100.P(R|O)
d). No, the money returned is not independent of the classes as the P(R) is not equal to P(R|E)
e). No, based on the study, the economist are not selfish than other classes' people as the percent of the envelops returned from the economics classes is 51% and that from other classes is 36%.
Suppose the college administrators estimate that the beautification initiative will cost $3,600. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 170 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $18.
Answer:
the questions seems to be incomplete, so I looked for similar ones:
the total benefit of the project is estimated at $18 x 170 = $3,060
the result is probably lower than expected because:
this is an nonexcludable good, and it is nonrival in consumptionthe free rider problem occurs herecollege administrators should not carry out the project id they only base their decision on expected benefitExplanation:
Desjarlais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
Activity Cost Pools Activity Rate
Setting up batches $ 87.25 per batch
Assembling products $ 6.38 per assembly hour
Processing customer orders $ 53.91 per customer order
Data concerning two products appear below:
Product S96U Product Q06F
Number of batches 34 45
Number of assembly hours 105 820
Number of customer orders 17 29
Required:
a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system?
b. How much overhead cost would be assigned to Product QO6F using the company's activity-based costing system?
Answer:
Results are below.
Explanation:
To allocate overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
S96U:
Setting up batches= 87.25*34= $2,966.5
Assembling products= 6.38*105= $669.9
Processing customer orders= 53.91*17= $916.47
Total allocated costs= $4,552.87
QO6F:
Setting up batches= 87.25*45= $3,926.25
Assembling products= 6.38*820= $5,231.6
Processing customer orders= 53.91*29= $1,563.39
Total allocated costs= $10,721.24
Identify the subject pronoun in the following sentence: "They went to the store to buy him a jacket."
a They
b the
c buy
d him
Answer:
A
Explanation:
Subject pronouns are those pronouns that perform the action in a sentence. They are I, you, he, she, we, they, and who. Any noun performing the main action in the sentence, like these pronouns, is a subject and is categorized as subjective case.
define nationalization.
Answer:
the process of transforming privately owned assets into public assets by bringing them under the public ownership of a national government or state.
Explanation:
The following transactions occurred during July:
1. Received $1,090 cash for services provided to a customer during July.
2. Received $5,800 cash investment from Bob Johnson, the stockholder of the business.
3. Received $940 from a customer in partial payment of his account receivable which arose from sales in June.
4. Borrowed $7,900 from the bank by signing a promissory note.
5. Received $1,440 cash from a customer for services to be rendered next year.
6. Provided services to a customer on credit $565.
What was the amount of revenue for July?
a. $1,090
b. $1,655
c. $3,095
d. $4,035
e. $17,170
Answer:
b. $1,655
Explanation:
Calculation for What was the amount of revenue for July
Cash for services $1,090
Add Services provided on credit $565
Revenue $1,655
($1,090+$565)
Therefore the amount of revenue for July will be $1,655
Total costs are $180,000 when 10,000 units are produced; of this amount, variable costs are $64,000. What are the total costs when 12,000 units are produced? Assume the new quantity is within the relevant range. Select one
a $216.000
b $116.000
C $192800
d. None of the answers given
Option C equates to a total cost of $192,000 when 12,000 units are produced.
What is the variable cost formula?To calculate variable costs, divide the cost of producing one unit of your product by the total number of units produced. This formula looks like this: Total variable costs are calculated by multiplying cost per unit by the total number of units.
With the given data, the following formula can be used to calculate fixed costs:-
The total cost is comprised of both fixed and variable charges.
Fixed costs plus $64,000 is $180,000.
Costs fixed = $116,000
With the aid of this data and the formula for total costs, it is possible to determine the total costs for manufacturing 12,000 units as follows:
Total costs equals fixed costs plus (Variable cost per unit x Quantity)
$116,000 in total costs plus ($6 times 12,000)
$192,000 is the total cost.
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Who founded crypto currency in the world
Answer:
☁︎Satoshi Nakamoto's☁︎
Explanation:
Two months later, a paper entitled 'Bitcoin: A Peer-to-Peer Electronic Cash System' was passed around a cryptography mailing list. The paper is the first instance of the mysterious figure, Satoshi Nakamoto's appearance on the web, and permanently links the name "Satoshi Nakamoto" to the cryptocurrency.
Tommy's parents died in a plane crash and he went to live with his guardian, Aunt Rose. Rose had a very small house and did not have a separate bedroom and bath for 12-year-old Tommy. She and Tommy decided to use some of his inheritance to pay for an addition to the house. He had some shares of stock transferred into Rose's name so that she could sell them when the money was due to be paid. The stock transfers are:
Answer:
presumed voidable unless Rose can show no unfair advantage was taken.
Explanation:
In the given scenario Tommy had some shares of stock transferred into Rose's name so that she could sell them when the money was due to be paid for the addition to the house.
However Tommy is a minor living with his guardian Aunt Rose.
She may have an unfair influence over him that will force him to make the share transfers.
Considering this the transfer of shares can be viewed as voidable until she proves she did not use the unfair advantage of being a guardian to push the transaction through
Naumann Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 200 100 % Variable expenses 36 18 % Contribution margin $ 164 82 % Fixed expenses are $130,000 per month. The company is currently selling 1,200 units per month. Required: Management is considering using a new component that would increase the unit variable cost by $46. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected
Answer:
An increase in net operating income of $127,200
Explanation:
Consider the variable effect of the changes.
Sales ($400 x 400) $160,000
Less Variable expenses ( $82 x 400) ($32,800)
Contribution $127,200
therefore,
An increase in net operating income of $127,200
On January 1, 2020, Barwood Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of Barwood's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $65 per share on the date of grant. The fair value of the options at the grant date is $150,000. The period of benefit is 2 years. Prepare Barwood's journal entries for January 1, 2020, and December 31, 2020 and 2021
Answer and Explanation:
The journal entries are shown below;
On Jan 1, 2020
No journal entry is required
On Dec 31, 2020
Compensation expense Dr ($150,000 ÷ 2) $75,000
To paid in capital stock option $75,000
(Being compensation expense is recorded)
On Dec 31, 2021
Compensation expense Dr ($150,000 ÷ 2) $75,000
To paid in capital stock option $75,000
(Being compensation expense is recorded)
Ralph buys a perpetuity due paying 500 annually. He deposits the payments into a savings account earning interest at an effective annual rate of 10%. Ten years later, before receiving the eleventh payment, Ralph sells the perpetuity based on an effective annual interest rate of 10%. Using the proceeds from the sale plus the money in the savings account, Ralph purchases an annuity due paying X per year for 20 years at an effective annual rate of 10%. Calculate X.
Answer:
X = 1523
Explanation
Perpetuity due = (C/r) + C. Where Annual payment C =500, Annual effective interest rate = 10%
Perpetuity due = (500/10%) + 500 = 5500
Value of perpetuity due will remain same after 10 years
Money in saving account can be calculated with FV of an Annuity due formula
FV = C*(1+r) *{(1+r) ^n−1} / r
Where n = 10 years
FV = 500*(1+10%) * {(1+10%)^10 - 1} / 10%
FV = 500*1.10 * [1.10^10 - 1 / 0.10}
FV = 550 * 1.5937424601/0.10
FV = 550 * 15.937424601
FV = 8765.58353055
FV = 8766
Total proceeds = 5500 + 8766 = 14266
Now this proceed is the present value for annual payment of X calculation . Formula of the present value (PV) of annuity due: PV = X * [1- (1+r) ^-n / r] * (1+r) : Where PV = 14266, Annuity payment X = ?, Interest rate r = 10%, Period of annuity = 20 years.
1.10^-20
PV = X * [1- (1+r)^-n / r] * (1+r)
14266 = X * (1 - (1+10%)^-20 / 10%) * (1+10%)
14266 = X * [1 - 0.14864362802/0.10]*1.10
14266 = X * [8.5135637198*1.10]
14266 = X * 9.3649
X = 14266 / 9.3649
X = 1523.347820051469
X = 1523
A company expects to pay a dividend of $3.50 per share one year from today. the dividend is expected to grow at 30 percent per year for three years. Thereafter, the dividend will grow at 4 percent per year in perpetuity. if the appropriate discount rate for the stock is 13 percent, what is the price of the stock today
Answer: $70
Explanation:
Price = Present value of year 1 dividend + Present value of year 2 dividend + Present value of year 3 dividend + Present value of year 4 dividend + Present value of year 4 price
Year 4 price = Year 4 dividend / ( Required return - Growth rate after 3 years)
= (3.50 * 1.30³ * 1.04) / (13% - 4%)
= $88.856
Price = (3.50 / (1 + 13%)) + ( (3.50 * 1.3) / 1.13²) + ( (3.50 * 1.3²) / 1.13³) + ( (3.50 * 1.3³) / 1.13⁴) + 88.856/1.13⁴
= $69.97
= $70
A pump has failed in a facility that will be completely replaced in 3 years. A brass pump costing $6000 installed will last 3 years. However, a used stainless steel pump that should last 3 more years has been sitting in the maintenance shop for a year. The pump cost $13,000 new. The accountants say the pump is worth $7000 now. The maintenance supervisor says that it will cost an extra $500 to reconfigure the pump for the new use and that he could sell it used (as is) for $4000.
(a) What is the book cost of the stainless steel pump?
(b) What is the opportunity cost of the stainless steel pump?
(c) How much cheaper or more expensive would it be to use the stainless steel pump rather than a new brass pump?
a. $1500 cheaper
b. $1500 more expensive
c. $7500 cheaper
d. $7500 more expensive
Answer:
A. $7,000
B. $4,000
Explanation:
(a) Based on the information given the book cost of the stainless steel pump will be $7,000 reason been that we were told that the pump is worth the amount of $7,000 now.
(B) Based on the information given the opportunity cost of the stainless steel pump will be $4,000 reason been that we were told that the pump future Salvage worth in which the pump could likely be sold is $4,000
(c) Calculation for How much cheaper or more expensive would it be to use the stainless steel pump rather than a new brass pump
Based on the information given to make use of a new brass pump will cost the amount of $6,000 and in a situation where the stainless steel pump is been use the total value will be the pump present value of the amount of $7,000 in addition with the value to reconfigure the pump of the amount of $500 which indicate that the stainless steel pump is more expensive Calculated as:
More expensive=($7,000+$500)-$6,000
More expensive=$7,500-$6,000
More expensive=$1,500
Therefore the stainless steel pump is MORE EXPENSIVE with the amount of $ 1500 more expensive than the new brass pump.
The 10% bonds payable of Crane Company had a carrying amount of $4060000 on December 31, 2020. The bonds, which had a face value of $3900000, were issued at a premium to yield 8%. Crane uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2021, several years before their maturity, Crane retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is:_____.
Answer:
The correct answer is "43,000".
Explanation:
The given values are:
Carrying amount,
= $4060000
Face value,
= $3900000
Now,
For June 30, 2021, the Interest expense will be:
= [tex]4060000\times 10 \ percent\times \frac{1}{2}[/tex]
= [tex]203,000[/tex]
For June 30, 2021, the cash interest will be:
= [tex]3900000\times 8 \ percent\times \frac{1}{2}[/tex]
= [tex]156,000[/tex]
Now,
On June 30, 2021, the premium's amortization will be:
= Interest expense - Cash interest
= [tex]203,000-156,000[/tex]
= [tex]47,000[/tex]
On retirement, the cash paid will be:
= [tex]3900000\times 104 \ percent[/tex]
= [tex]4,056,000[/tex]
On June 30, 2021, the less carrying amount will be:
= Carrying amount - amortization
= [tex]4060000-47000[/tex]
= [tex]4,013,000[/tex]
Then,
The loss on retirement as well as ignoring taxes will be:
= Cash paid - less carrying amount
= [tex]4,056,000-4,013,000[/tex]
= [tex]43,000[/tex]
Pina Corp. enters into a contract with a customer to build an apartment building for $921,300. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $156,000 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $52,000 each week that completion is delayed. Pina commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Determine the transaction price for the contract, assuming Pina has limited information with which to develop a reliable estimate of completion by the August 1, 2021, deadline.
Question Completion:
Completed by August 1, 2021 August 8, 2021 August 15, 2021 After August 15, 2021 Probability 70 % 20 6 4.
Answer:
Pina Corp.
The transaction price for the contract, assuming Pina has limited information with which to develop a reliable estimate of completion by the August 1, 2021, deadline is:
= $921,300.
Explanation:
Data and Calculations:
Completed by Probability
August 1, 2021 70%
August 8, 2021 20%
August 15, 2021 6%
After August 15, 2021 4%
Total = 100%
Contract price = $921,300
Performance bonus = $156,000
Expected completion date = August 1, 2021
Reduction of bonus per week if completion is delayed = $52,000
After August 15 (three weeks of non-completion), there is no performance bonus because it would have been reduced to $0 ($156,000/$52,000 = 3 weeks).
two examples of events that occasions which people come together
Answer:
•wedding
•birthday party
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Whitewater Wine Foundation expects 125,000 attendees at their May festival. Wine-tasters pay a $10 entrance fee which includes a tasting glass and wine-tasting wristband. Designated drivers pay a $5 entrance fee and receive a ticket for one non-alcoholic drink. Of the attendees, 10% are expected to be designated drivers. Costs to the festival are $.25 for wristbands, $.90 for tasting glasses and $.15 for non-alcoholic drinks. All drink tickets are expected to be used. What is the total purchases budget for the May festival
Answer:
Total purchase budget= $134,375
Explanation:
First, we need to calculate the number of wristbands, tasting glasses, and non-alcoholic drinks glasses.
Wristbands= one per attendant= 125,000
Tasting glasses= 125,000*0.90= 112,500
Non-alcoholic drinks glasses= 125,000*0.10= 12,500
Now, the total purchase budget:
Purchases:
Wristbands= 125,000*0.25= 31,250
Tasting glasses= 112,500*0.9= 101,250
Non-alcoholic drinks glasses= 12,500*0.15= 1,875
Total purchase budget= $134,375
What conditions make a market perfectly competitive? A market is perfectly competitive if A. it has many buyers and one firm, which produces a product with no close substitutes, with barriers to new firms entering the market. B. it has many buyers and a few sellers, all of whom are selling differentiated products, with no barriers to new firms entering the market. C. it has many buyers and a few sellers, all of whom are selling identical products, with barriers to new firms entering the market. D. it has many buyers and many sellers, all of whom are selling identical products, with no barriers to new firms entering the market. E. it has many buyers and many sellers, all of whom are selling differentiated products, with no barriers to new firms entering the market.
Answer:
E. It has many buyers and many sellers , all of whom are selling differentiated products , with no barriers to new firms entering the market.
Explanation:
A perfect market is a market where there are large number of buyers such that all participants are price takers hence cannot influence the price of commodities sold in such market.
In a perfect market, there are no barriers to entry and exit. This also means that new firms can enter the market. Here, the buyers are free to buy from any person and the sellers are free to sell to anyone. Differentiated products are also sold there.
Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $345,000, and budgeted direct labor hours were 23,000. The average wage rate for direct labor is expected to be $30 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow:
Job 39 Job 40 Job 41 Job 42
Beginning balance $26,200 $32,800 $16,700 $0
Materials requisitioned 18,000 21,000 8,400 13,300
Direct labor cost 9,100 18,100 3,050 4,200
Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 110 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.
Required:
1. Calculate the overhead rate based on direct labor cost.
% of direct labor cost
2. Set up a simple job-order cost sheet for all jobs in process during June. If an amount is zero, enter "0".
Naranjo Company
Job-Order Cost Sheets
Job 39 Job 40 Job 41 Job 42
Balance, June 1 $ $ $ $
Total $ $ $ $
3. What if the expected direct labor rate at the beginning of the year was $20 instead of $25? What would the overhead rate be?
New budgeted direct labor cost = $
New overhead rate = % of direct labor cost
How would the cost of the jobs be affected?
Answer:
1. Budgeted direct labor cost = Average wage rate for direct labor * Budgeted direct labor hours
Budgeted direct labor cost = $30 * 23,000
Budgeted direct labor cost = $690,000
Overhead rate = Budgeted overhead costs/Budgeted direct labor cost
Overhead rate = $345,000 / $690,000
Overhead rate = 0.5
Overhead rate = 50%
2. Applied Overhead = Direct labor cost * Overhead rate
Job 39 Job 40 Job 41 Job 42
Beginning balance $26,200 $32,800 $16,700 $0
Material requisitioned $18,000 $21,000 $8,400 $13,300
Direct labor cost $9,100 $18,100 $3,050 $4,200
Applied Overhead $4,550 $9,050 $1,525 $2,100
Total Cost $57,850 $80,950 $29,675 $19,600
3. Budgeted direct labor cost = Average wage rate for direct labor * Budgeted direct labor hours
Budgeted direct labor cost = $20 * 23,000
Budgeted direct labor cost = $460,000
Overhead rate = Budgeted overhead costs/Budgeted direct labor cost
Overhead rate = $345,000 / $460,000
Overhead rate = 0.75
Overhead rate = 75%