Answer:
d
Explanation:
Indirect costs are costs of production that cannot be directly linked to a unit, activity or product.
Indirect manufacturing costs are cost of production that cannot be directly linked to a good that is produced.
Examples of indirect manufacturing cost include :
Indirect Materialsutility machine maintenance Real estate taxes on the factoryDepreciation Salary of production floor managerDuring the current year, Rothchild, Inc., purchased two assets that are described as follows:
Heavy Equipment
Purchase price, $275,000.
Expected to be used for 10 years, with a residual value at the end of that time of $50,000.
Expenditures required to recondition the equipment and prepare it for use, $75,000.
Patent
Purchase price, $75,000.
Expected to be used for five years, with no value at the end of that time.
Rothchild depreciates heavy equipment by the declining-balance method at 150 percent of the straight-line rate. It amortizes intangible assets by the straight-line method. At the end of two years, because of changes in Rothchild's core business, it sold the patent to a competitor for $35,000.
a. Compute the amount of depreciation expense on the heavy equipment for each of the first three years of the asset's life.(Omit the "$" sign in your response.)
Year 1 Year 2 Year 3
Depreciation expense $ $ $
b. Compute the amount of amortization on the patent for each of the two years it was owned by Rothchild.(Omit the "$" sign in your response.)
Year 1 Year 2
Amount of amortization $ $
c-1. Prepare the plant and intangible assets section of Rothchild's balance sheet at the end of the first and second years.(Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)
Year 1
Accumulated amortization Equipment Accumulated depreciation Purchase price Patent $
Equipment Patent Less: Accumulated depreciation Accumulated amortization Add: Accumulated depreciation $
Equipment Patent Accumulated amortization Purchase price Accumulated depreciation
Total plant and intangible assets $
Year 2
Accumulated depreciation Accumulated amortization Equipment Purchase price Patent $
Accumulated amortization Patent Add: Accumulated depreciation Equipment Less: Accumulated depreciation
Total plant assets $
c-2. Calculate the amount of the gain or loss on the patent that would be included in the second year's income statement.(Input the amount as positive values. Omit the "$" sign in your response.)
Gain Losson sale by $
Answer:
Rothschild, Inc.
a. Depreciation expense on the Heavy Equipment for first three years:
Depreciation expense:
Year 1 105,000
Year 2 73,500
Year 3 51,450
b. Amortization on the patent for each of the two years:
Year 1 = 15,000
Year 2 = 15,000
c. Rothschild's Balance Sheet at the end of the first and second years:
Year 1
Equipment $350,000
less accumulated depreciation 105,000 $245,000
Patent $75,000
less accumulated amortization 15,000 $60,000
Total plant and intangible assets $305,000
Year 2
Equipment $350,000
less accumulated depreciation 178,500 $171,500
Patent $75,000
less accumulated amortization 30,000 $45,000
Total plant and intangible assets $216,500
c.2. Loss from sale of patent = 10,000
Explanation:
a) Data and Calculations:
Heavy Equipment Patent
Purchase price $275,000 $75,000
Expenditures to recondition for use 75,000 0
Residual value at end of lifetime (50,000) 0
Depreciable amount $300,000 $75,000
Estimated useful life 10 years 5 years
Depreciation methods Declining-bal. Straight-line
Annual depreciation of patent $15,000 ($75,000/5)
Depreciation rate 30% 20% (100%/5)
Sales proceeds at end of year 2 $35,000
a. Depreciation expense on the Heavy Equipment for first three years:
Depreciation expense:
Year 1 $105,000 ($350,000 * 30%)
Year 2 $73,500 ($245,000 * 30%)
Year 3 $51,450 ($171,500 * 30%)
b. Amortization on the patent for each of the two years:
Year 1 = $15,000
Year 2 = $15,000
c. Rothschild's Balance Sheet at the end of the first and second years:
Year 1
Equipment $350,000
less accumulated depreciation 105,000 $245,000
Patent $75,000
less accumulated amortization 15,000 $60,000
Total plant and intangible assets $305,000
Year 2
Equipment $350,000
less accumulated depreciation 178,500 $171,500
Patent $75,000
less accumulated amortization 30,000 $45,000
Total plant and intangible assets $216,500
c.2. Loss from sale of patent = $10,000 ($45,000 - $35,000)
Which of the following choices correctly depicts whether McDonald's, the University Wisconsin, and Apple Inc. would have a need for managerial accounting?
a. The division of activities into unit-level, batch-level, product-sustaining level, and facility-level categories is commonly known as a cost: Object.
b. Application method.
c. Estimation method Hierarchy
d. Classification scheme that is useful in traditional, volume-based systems.
Answer:
a. The division of activities into unit level, batch level, product sustaining level and facility level categories is commonly known as cost.
Explanation:
The managerial accounting is important for any service business. McDonalds have service business and they run on zero tolerance for disruption in consumer service. Management accounting enables to identify cost for product sustaining and batch producing.
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $7 per hour and capital is rented at $11 per hour. If the marginal product of labor is 65 units of output per hour and the marginal product of capital is 55 units of output per hour, should the firm increase, decrease, or leave unchanged the amount of capital used in its production process
Answer:
leave unchanged
Explanation:
because it doe snore jobs then the other one
In June, one of the processing departments at Furbush Corporation had ending work in process inventory of $12,000. During the month, $404,000 of costs were added to production and the cost of units transferred out from the department was $426,000. In the department’s cost reconciliation report for June, the total cost accounted for would be:_________
a) $842,000
b) $46,000
c) $876,000
d) $438,000
Answer:
d) $438,000
Explanation:
Calculation to determine what In the department’s cost reconciliation report for June, the total cost accounted for would be:
Using this formula
Total cost accounted for = Cost of ending work in process inventory + Cost of units transferred out
Let plug in the formula
Total cost accounted for=$12,000+$426,000
Total cost accounted for=$438,000
Therefore In the department’s cost reconciliation report for June, the total cost accounted for would be: $438,000
Economic growth and public policy
Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign investment in Argentina. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?
a. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
b. Give families cash payments on the condition that their children show up for school and medical exams.
c. Increase taxes on income from savings.
d. Protect property rights and enforce contracts.
Answer:
a. Foreign Portfolio Investment
b. a. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
d. Protect property rights and enforce contracts.
Explanation:
This is an example of Foreign Portfolio Investment (FPI). Foreign portfolio investment is when an entity from a foreign country invests in another country by buying the shares of a company in the local country. The American company bought shares in Argentina so the qualifies as FPI.
To increase productivity companies that are pursuing research should be given patents and tax breaks. The tax breaks will enable them have more money to reinvest into the research and the patent will provide incentive to them to continue the research knowing full well that they will be compensated by being the only ones to be able to use the technology invented for some time.
Also protecting property rights and enforcing contracts encourages investment in a country because people will be more trusting of making a return from business dealings. Higher investment leads to more productivity and growth.
For each example presented below, identify the managerial skill being illustrated.
a. Charles didn't get much done today because he wasted a lot of time worrying that his coworker was going to gossip about him to their supervisor.
b. Although you usually believe that personality tests are not useful in hiring contexts, you feel they are appropriate in this case because the interviewer took the time to explain why the organization uses them and how they will be used,
c. You contributed more than of the material for the project for which your team got a performance bonus, but you only received 25% of the bonus amount.
A job candidate you are interviewing acts nervous, gives a weak handshake, and fails to talk with confidence. Although the rest of the interview goes well and the candidate seems to have the characteristics you are looking for you give mediocre ratings because of the poor start to the interview.
1. First impression bias
2. The halo effect
3. The contrast effect
4. Selective perception
Question Completion with Options:
1. Interactional Fairness
2. Distributive Fairness
3. Procedural Fairness
4. Trust
Answer:
1. Managerial skills being illustrated in each of the examples presented:
a. Trust
b. Interactional fairness
c. Distributive fairness
2. 1. First impression bias
Explanation:
Trust: Here, Charles showed a lack of trust in one of his colleagues who was a gossip.
Interactional fairness: The quality of time spent interacting with another person can improve perceptions and relationships.
Distributive fairness: This involves a comparison of outcome with the cost incurred to earn the benefit.
Procedural fairness requires fairness in decision-making without bias.
An insurer sells a one-year policy to many people with the following loss distributions:Size of loss Probability of loss50,000 0.00530,000 0.0110,000 0.025,000 0.050 0.915Assume:1) The fair premiums, the administrative expenses and the profit loading are all paid at the beginning of the year;2) The claims are paid one year later;3) The interest rate is 8%;4) The administrative expenses are assumed to be 10% of the fair premiums;5) The profit loading is assumed to be 5% of the expected claim costs.Find the fair premium for the policy.
Answer:
Explanation:
The table can be computed as follows:
Size of loss Probability of loss
50000 0.005
30000 0.01
10000 0.02
5000 0.05
0 0.915
The expected claim for the cost can be calculated by multiply each of the loss sizes with their corresponding probability loss.
i.e.
[tex]= [50000 \times 0.005] + [30000 \times 0.01] + [10000 \times 0.02] + [5000 \times 0.05] + [0 \times0.915][/tex]
[tex]= 250 + 300 + 200 + 250 + 0[/tex]
[tex]= 1000[/tex]
Following the given assumptions:
The fair premium(X) of the policy is calculated as follows:
[tex]X= \dfrac{Expected \ Claim }{(1 + interest \ rate ) }+(Administrative \ Exp.\times X )+ exp. \ profit \ percentage[/tex]
[tex]X= \dfrac{1000}{(1 + 8\%)}+(10 \%\times X) +( 5\% \times 1000)[/tex]
[tex]X= \dfrac{1000}{(1 + 0.08)}+(0.1 X) + 50[/tex]
[tex]X-0.1X= \dfrac{1000}{(1.08)}+ 50[/tex]
0.9 X = 975.9259
X = 975.9259/0.9
Fair Premium (X) = 1084.36
When there is a capacity constraint :_________
A. firms are not maximizing their profits during high season.
B. consumers will avoid the producer and go with a firm that has extra capacity.
C. firms face sunk costs when deciding whether or not to expand.
D. firms can use peakload pricing to increase profits during periods of high demand.
Answer:
The answer is "Option D".
Explanation:
Capacity restrictions are indeed a regulation that restricts the number of items that a supplier could be assigned. Trade could be allocated to a leading provider through the constraint, or the amount of trade can be restricted for a supplier, therefore companies having resource constraints may employ peak price and increase revenue during peak times.
A partner invests into a partnership a building with an original cost of $180,000 and accumulated depreciation of $80,000. This building has a $140,000 fair value. As a result of the investment, the partner's capital account will be credited for Group of answer choices $140,000. $100,000. $180,000. $240,000.
Answer:
$140,000
Explanation:
For accounting and legal purposes, the contribution of a partner to a partnership business is recorded using the fair value of the asset contributed.
It therefore means that;
Capital account = Fair value of the asset (I.e partner's investment in a partnership business is based on fair value of such investment)
With regards to the foregoing, the partner's capital account will be credited with $140,000
The contribution margin ratio is 25% for Grain Company and the break-even point in sales is $200,000. To obtain a target net operating income of $60,000, sales would have to be:_____.
A. $260,000.
B. $440,000.
C. $280,000.
D. $240,000.
Answer:
Option B. 440000
Explanation:
Given the contribution margin = 25%
Sales at break-even point = $200000
Net operating income = $60000
Sales at break even point = TFC / contribution margin ratio
200000 = TFC / 25%
TFC = 50000
Now find the net income:
Net income = Contribution margin - Fixed cost
60000 = Contribution margin - 50000
Contribution margin =60000 + 50000 = 110000
Sales revenue = Contribution margin / contribution ratio
Sales revenue = 110000 / 0.25 = 440000
The Federal Open Market Committee decides that it must increase the money supply by $50. Committee members tell you the reserve ratio is 0.2. They ask you what directive they should give to the open market desk. You tell them, being as specific as possible, using the money multiplier.
The Fed should _____________$ worth of government bonds.
Answer and Explanation:
As we know that
Multiplier Effect = 1 ÷ Reserve Ratio
So,
Reserve ratio = 1 ÷ 0.2
= 5
Now this means that $1 million deposit result into increased by $5 million in the overall money supply
So the money supply should rise by $50 and it should be $10 of the government securities
An analyst feels that Brown Company's earnings and dividends will grow at 25% for two years, after which growth will fall to a constant rate of 6%. If the projected discount rate is 10%, and Brown's most recently paid dividend was $1, the value of Brown's stock using the multistage dividend discount model is closest to:____.
A. $31.25.
B. $33.54.
C. $36.65.
Answer:
C. $36.65
Explanation:
Calculation to determine what the dividend discount model is closest to:
Dividend discount model =$1(1.25) / 1.1 + [$1(1.25)2/ (0.10-0.06)] / 1.1
Dividend discount model = $36.65
Therefore the value of Brown's stock using the multistage dividend discount model is closest to:$36.65
You sold a put contract on EDF stock at an option price of $.50 and an exercise price of $21. Today, EDF stock is selling for $20 a share and your option position was closed out. Ignoring transaction costs and taxes, what is your total profit
Answer:
-$50
Explanation:
Calculation to determine your total profit on this investment
Total profit = 1 × 100 × ($.50 - $21+ $20)
Total profit = 100×(-$0.5)
Total profit = -$50
Therefore your total profit on this investment is -$50
Burns Corporation's net income last year was $99,200. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents $ 21,900 Accounts receivable $ 13,500 Inventory $ (16,800 ) Prepaid expenses $ 4,100 Long-term investments $ 10,200 Property, plant, and equipment $ 77,000 Accumulated depreciation $ 33,200 Liability and Equity Accounts: Accounts payable $ (19,600 ) Accrued liabilities $ 16,800 Income taxes payable $ 4,200 Bonds payable $ (61,200 ) Common stock $ 41,600 Retained earnings $ 94,900 The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,300. Required: a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) b. Prepare the investing activities section of the company's statement of cash flows for the year. c. Prepare the financing activities section of the company's statement of cash flows for the year.
Answer and Explanation:
The preparation of the each section of the cash flow statement is presented below:
a.
Cash flow from operating activities
Net Income $99,200
Adjustments made
Adjustment for non cash effects
Depreciation $33,200
Change in operating assets & liabilities
Increase in accounts receivable -$13,500
Decrease in inventories $16,800
Increase in prepaid expenses -$4,100
Decrease in accounts payable -$19,600
Increase in accrued liabilities $16,800
Increase in income tax payable $4,200
Net cash flow from operating activities (a) $133,000
b.
Cash Flow from Investing activities
Equipment purchased -$77,000
Long term investments purchased -$10,200
Net cash Flow from Investing activities (b) -$87,200
c
Cash Flow from Financing activities
Cash dividends -$4,300
Issuance of the Common stock $41,600
Bonds paid $-61,200
Net cash Flow from Financing activities (c) -$23,900
Mark, an HR Manager at Pyramid Inc., is responsible for the HR planning process in his organization. He has reviewed the organization's strategic plans. Which of the following is most likely to be Mark's next step in the planning process?
a. Develop HR staffing plans and actions
b. Compile HR planning forecasts
c. Implement HR staffing plans and actions
d. Assess external and internal workforce
Answer: d. Assess external and internal workforce
Explanation:
There are four steps involved in the HR planning process in an organization. The first step is the one that Mark just completed of reviewing the organization's strategic plans.
The next thing to do is the assess both the internal and external workforce of the organization so as to better understand them. After this step he would have to compile HR planning forecasts and then design HR staffing plans based on the strategic goals of the organization.
Salaries and Wages Expense appears on the _________, while Salaries and Wages Payable is a(n):a. Balance sheet; expense on the balance sheetb. Income statement; expense on the income statementc. Income statement; liability on the balance sheetd. Balance sheet; liability on the income statement
Answer: income statement ; liability on the balance sheet
Explanation:
It should be noted that wages and salaries expense don't appear on the balance sheet directly. They appear in the income statement.
On the other hand, salaries and wages payable is considered to be a liability on the balance sheet. Therefore, the correct option is "income statement ; liability on the balance sheet".
On August 19, 2019, Portland Corporation repurchases 1,400 shares of its outstanding common stock for $9 per share. On October 31, 2019, Portland sells 600 shares of treasury stock for $13 per share. Any additional sales of treasury stock during the year were sold for $4 per share. On December 31, 2019, Portland had no remaining treasury stock.
Required:
Prepare the necessary journal entries to record any transactions associated with treasury stock.
Answer:
Portland Corporation
Journal Entries:
August 19, 2019:
Debit Treasury Stock $12,600
Credit Cash $12,600
To record the purchase of 1,400 shares of treasury stock for $9 per share.
October 31, 2019:
Debit Cash $7,800
Credit Treasury Stock $7,800
To record the resale of 600 shares of treasury stock for $13 per share.
December 31, 2019:
Debit Cash $3,200
Credit Treasury Stock $3,200
To record the resale of 800 shares of treasury stock for $4 per share.
December 31, 2019:
Debit Additional Paid-in Capital $1,600
Credit Treasury Stock $1,600
To record the loss incurred in the sale of treasury stock.
Explanation:
a) Data and Analysis:
August 19, 2019: Treasury Stock $12,600 Cash $12,600
October 31, 2019: Cash $7,800 Treasury Stock $7,800
December 31, 2019: Cash $3,200 Treasury Stock $3,200
December 31, 2019: Additional Paid-in Capital $1,600 Treasury Stock $1,600
On July 1, 20X1, Georgia Inc., which uses UOP depreciation, purchases a machine for $16,000; the company estimates that the machine will have a useful life of 15,000 machine hours and a salvage value of $1,000. You are given the following usage data: 20X1 3,000 hours 20X2 2,200 hours 20X3 6,170 hours 20X4 5,300 hours Depreciation expense on the machine for 20X1 is:
a. $1,600
b. $3,000
c. $1,500
d. $3,200
e. $16,000
Answer:
Annual depreciation= $3,000
Explanation:
Giving the following information:
Purchase price= $16,000
Useful life= 15,000 machine hours
Salvage value= $1,000
Machine hours 20X1= 3,000
To calculate the depreciation expense for 20X1, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated
Annual depreciation= [(16,000 - 1,000) / 15,000]* 3,000
Annual depreciation= $3,000
As compared to a traditional income statement format, an income statement organized by cost behavior does not include:As compared to a traditional income statement format, an income statement organized by cost behavior does not include:
Complete Question:
As compared to a traditional income statement format, an income statement organized by cost behavior does not include:
a contribution margin.
b cost of goods sold.
c operating income.
d revenues
Answer:
As compared to a traditional income statement format, an income statement organized by cost behavior does not include:
b cost of goods sold.
Explanation:
Cost behavior describes the classification of costs into four main patterns because of the way they respond to changing activity levels. The four basic cost behavior patterns are fixed, variable, mixed (semi-variable), and step. These cost behavior patterns remain valid within the relevant production and sales range or activity level or volume.
g A(n. ________ determines which areas of a firm's operations represent strengths or weaknesses (currently or potentially. compared to competitors. A. transactional analysis B. internal analysis C. structural analysis D. break-even analysis
Answer:
B. internal analysis
Explanation:
An internal analysis is the detailed examination with respect to the internal components of the company. It can be tangible or intangible like assets, process, etc. It helps to make the decision in an accurate manner also it identify the areas in which the growth or revised plan should be done. Moreover, it shows the strength and weakness of the company and the same should be compared to its rivalrs
Therefore, the option b is correct
Interest income has been recorded during the year as interest payments have been received by Parnell. The Oracle bonds are currently valued on the financial market at $205 million.
Required:
Prepare the appropriate adjusting entry, if one is necessary.
Answer:
Interest payments (Dr.) $20.5 million
Interest Interest Income (Cr.) $20.5 million
Explanation:
Adjusting entries are prepared when there is change in the transaction after it has been recorded or if the entry is recorded incorrectly. The change in the transaction may impact the financial statements so adjusting entries are prepared which correct the impact of transaction.
When a journal entry is made in a standard cost system to record the liability for direct manufacturing labor costs, the difference between the debits to the work in process accounts and the credits to the payroll payable is:___________a. only the price variance.b. only the efficiency variance.c. the difference between the actual costs incurred and the budgeted costs.d. the price and the efficiency labor variances.
Answer:
When a journal entry is made in a standard cost system to record the liability for direct manufacturing labor costs, the difference between the debits to the work in process accounts and the credits to the payroll payable is:___________
the price and the efficiency labor variances.
Explanation:
The total direct labor cost variance is the difference between the standard cost for actual production and the actual cost in production. It is divided into two main variances. They are the Labor Rate (price) Variance and the Labor Efficiency Variance. Using standard cost system, the cost debited to the work in process account is based on standard cost, while the corresponding credit entry in the payroll payable is based on the actual cost. The labor variance is, therefore, the price and efficiency labor variances.
Identify whether the situations described below are example of uneven cash flows or annuity payments.
a. You recently moved to a new apartment and signed a contract to pay monthly rent to your landlord for a year.
b. SOE Corp. hires an average of 10 people every year and matches the contribution of each employee toward his or her retirement fund.
c. Franklinia Venture Capital (FVC) invested in a budding entrepreneur’s restaurant. The restaurant owner promises to pay FVC 10% of the profit each month for the next 10 years.
d. You have committed to deposit $600 in a fixed interest–bearing account every quarter for four years.
Solution :
The Uneven cash flow is defined as the series of unequal payments which is done over a period of time. Whereas if a regular amount is to be made in a fixed period of time, that such payments are known as equal cash flows.
An annuity payments refers to the payment that is made at equal interval of times. It pays a fixed amount of payments for an individual.
In the given situations,
a). Monthly rents payment is annuity payments.
b). Uneven cash flow
c). Uneven cash flow
d). Annuity
On November 1, 2010, Salem Corporation sold land priced at $900,000 in exchange for a 6%, six-month note receivable. As a result of this sale of land, what will Salem's Balance Sheet on December 31, 2010 include
Answer:
Note receivables of $900,000 & Interest receivable of $9,000
Explanation:
As a result of this sale of land, what will Salem's Balance Sheet on December 31, 2010 include?
Interest receivable = $900,000*6%*2/12
Interest receivable = $900,000 * 0.01
Interest receivable = $9,000
So, Salem's Balance Sheet on December 31, 2010 will include Note receivables of $900,000 and Interest receivable of $9,000.
Gilbert is an independent consultant who helps organizations select the right accounting software for their needs. After evaluating a local nonprofit organization, Gilbert recommended an accounting software package that he believes meets specifications, secures documents, and satisfies user requirements. Gilbert did not tell his client that he owns a 25% share in the business that developed the software, and that he will benefit if the organization decides to purchase the software he recommends. Which principle of the Software Engineering Code of Ethics has Gilbert violated?
Answer:
The principle of the Software Engineering Code of Ethics that Gilbert violated is:
Judgement (as related to full disclosure of personal involvement).
Explanation:
Gilbert is required by the Judgement Principle to "disclose those conflicts of interest that cannot reasonably be avoided or escaped." Since Gilbert professionally believes that the software meets specifications, secures documents, and satisfies user requirements, it is not quite apparent if he violated any principle. However, he could have informed his client of his personal interest in the software and also presented other software packages of other companies from which the client could make its independent choice.
The principle of the Software Engineering Code of Ethics that Gilbert violated is Judgement.
The following information should be considered:
Gilbert is required by the Judgement Principle to disclose those conflicts of interest that cannot reasonably be avoided.Since Gilbert professionally believes that the software meets specifications, documents are safe, and satisfies user requirements, it is not quite apparent if he violated any principle. However, he could have informed his client of his personal interest in the software and also presented other software packages of other companies from which the client could make its independent choice.
Learn more: brainly.com/question/16911495
explain why it is important for marketers to be able to measure the effectiveness of marketing activities.
Georgina consumes only grapefruits and pineapples. Her utility function is U (x comma y )equals x to the power of 0.8 end exponent y to the power of 0.2 end exponent, where x is the number of grapefruits consumed and y is the number of pineapples consumed. Georgina’s income is $105, and the prices of grapefruits and pineapples are $4 and $3, respectively. How many grapefruits will she consume?
Answer:
21
Explanation:
Given that:
The utility function U(x, y) = [tex]x^{0.8} y^{0.2}[/tex]
The budget line income is:
105=4x +3y
The equation MRTS is:
[tex]\dfrac{MU_x}{MU_y } =\dfrac{ Px}{Py}[/tex]
where;
[tex]MU_x(x,y) = 0.8 \times x^{0.8-1}\times y^{0.2} \\ \\ \implies 0.8 \times x^{-0.2}\times y^{0.2}[/tex]
[tex]MU_y(x,y) = 0.2 \times x^{0.8}\times y^{0.2-1} \\ \\ \implies 0.8 \times x^{0.8}\times y^{-0.8}[/tex]
and:
[tex]P_y= 3[/tex]
[tex]P_x = 4[/tex]
∴
Using the equation MRTS:
[tex]\dfrac{MU_x}{MU_y } =\dfrac{ Px}{Py}[/tex]
[tex]\dfrac{ 0.8 \times x^{-0.2}\times y^{0.2} }{0.8 \times x^{0.8}\times y^{-0.8}} = \dfrac{4}{3}[/tex]
[tex]\dfrac{4y }{x} = \dfrac{4}{3}[/tex]
4x = 12y
x = 12y/4
x = 3y
Replacing the value of x into the budget line income, we have:
105 = 4x + 3y
105 = 4(3y) + 3y
105 = 12y + 3y
105 = 15y
y = 105/15
y = 7
Then, from x = 3y
x = 3(7)
x = 21
Thus, she will consume 21 gapefruits
Wildhorse, Inc. had net sales in 2020 of $1,502,400. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $221,100 debit, and Allowance for Doubtful Accounts $3,000 credit. If Wildhorse estimates that 8% of its receivables will prove to be uncollectible.
Required:
Prepare the December 31, 2017, journal entry to record bad debt expense.
Answer and Explanation:
The journal entry is shown below:
Bad debt expense Dr $14,668 ($221,100 × 8% - $3,000)
To Allowance for doubtful debts $14,668
(Being bad debt expense is recorded)
Here the bad debt expense is debited as it increased the expense and credited the allowance for doubtful debt as it decreased the assets
The following standards have been established for a raw material used to make product O84: Standard quantity of the material per unit of output 8.6 meters Standard price of the material $ 19.80 per meter The following data pertain to a recent month's operations: Actual material purchased 4,900 meters Actual cost of material purchased $ 101,430 Actual material used in production 4,600 meters Actual output 650 units of product O84 The direct materials purchases variance is computed when the materials are purchased. Required:
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= (19.8 - 20.7)*4,900
Direct material price variance= $4,410 unfavorable
Actual price= 101,430/4,900= $20.7
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (8.6*650 - 4,600)*19.8
Direct material quantity variance= $19,602 favorable
This tutorial comprises of two sections. Answer all the questions.
Section A
1. Marketing Sciences Ltd specialize in carrying out product trials for the companies such as Tesco, GlaxoSmithKline and Vodafone.
a) Business carries out product trials on new products in order to
A) Guarantee sales levels
B) Assess levels of demand
C) Achieve economy of sales
D) Collect secondary research
Answer:
b) Explain why this answer correct?
Answer:
a)
D) Collect secondary research
b) By testing products, a company can collect more information for statistics and parts of each product.