In China, a high-context culture, it's important to avoid quickly getting down to business, instead focusing on building relationships and trust.
Explanation:When traveling to China from the United States to negotiate a commercial real estate deal, it is important to be aware of the cultural differences between high and low context cultures. In this scenario, the answer is C. quickly getting down to business. High-context cultures, like China, value relationships and trust-building, which often involve non-business related interactions and a slower approach to business dealings. Therefore, as a Starbucks executive, you should avoid the tendency of low-context cultures like the U.S., which is to quickly get down to business without adequate relationship-building. Other professional behaviors such as dressing in formal attire and shaking hands after negotiations could be appropriate depending on the specific circumstances and the preferences of the Chinese counterparts.
Diversification works because:I. unsystematic risk exists.II. combining stocks into a portfolio reduces the standard deviation of each stock in the portfolio.III. firm-specific risk can be dramatically reduced if not eliminated.A) I onlyB) III onlyC) I and II onlyD) I and III onlyE) I, II, and III
Answer:
D) I and III only.
Explanation:
II is false because the standard deviation of each stock is an inner characteristic of the stock and cannot be affected by combining it with other stocks in an investment portfolio. I. is true because each stock risk answer to the sector risk and company risk essentially, and by having stock of different sectors and companies is expected that unsystematic risks as these are off-setted. By having a portfolio with wide not-correlated stocks is expected that the risk can be reduced dramatically.
A company purchased a weaving machine for $264,970. The machine has a useful life of 8 years and a residual value of $14,500. It is estimated that the machine could produce 759,000 bolts of woven fabric over its useful life. In the first year, 109,500 bolts were produced. In the second year, production increased to 113,500 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year?a. $36,135b. $38,227c. $39,623
Answer:
$37,455
Explanation:
The computation of the depreciation per units or bolts under the units-of-production method is shown below:
= (Original cost - residual value) ÷ (estimated production bolts)
= ($264,970 - $14,500) ÷ (759,000 bolts)
= ($250,470) ÷ (759,000 bolts)
= $0.33 per bolt
Now for the second year, it would be
= Production units in second year × depreciation per bolts
= 113,500 units × 0.33
= $37,455
This is the answer and the same is not provided in the given options
The negotiation process involves several steps such as: preparing for negotiation; knowing your walk-away point; and working towards a common goal.
a. True
b. False
Answer:
(A) True.
Explanation:
In the negotiation process, there are two parties with different goals that can be incompatible. If the expected outcome is not satisfactory that will be the walk-away point. If it is satisfactory they can adjust theirs positions to achieve a common goal.
The negotiation process can be said to be in four stages, which are:
preparation
opening
bargaining
closure.
Suppose Amazon.com has offered you free shipping on your next purchase of more than $35. This offer is an example of ________.
A) sales promotionB) personal sellingC) a public relations strategyD) horizontal diversificationE) a pull strategy
Answer: Option A
Explanation: Sales promotion is the method of convincing a prospective consumer to buy the commodity. Sales promotion is intended to be used as a brief-term tool to boost sales – it is seldom appropriate as a way to develop long-term customer retention.
Giving discount, rebates and other such special offers are some of the many examples of sales promotion. In simple words,it is done to boost the sales for the current period.
In the given case, Amazon is also offering money saving offers to attract customers. Hence we can conclude that this is an example of sales promotion.
Last year, Buckner & Jones Company incurred the following costs: Direct materials $42,000 Direct labor 63,000 Manufacturing overhead 94,500 Selling expenses 25,200 Administrative expenses 23,100 Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were zero. The total period expense was: a.$250,000. b.$24,000. c.$190,000. d.$48,300.
Answer:
Option (D) is correct.
Explanation:
Given that,
Direct materials = $42,000
Direct labor = 63,000
Manufacturing overhead = 94,500
Selling expenses = 25,200
Administrative expenses = 23,100
Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each.
Total period expense:
= Selling expenses + Administrative expenses
= $25,200 + $23,100
= $48,300
Therefore, the total period expense was $48,300.
The total period expense for Buckner & Jones Company is the sum of selling expenses and administrative expenses, which equals $48,300.
To calculate the total period expense for Buckner & Jones Company, we need to identify which costs are considered period expenses. Period expenses include selling expenses and administrative expenses. According to the given data, the selling expenses are $25,200 and the administrative expenses are $23,100. By adding these two together, we get the total period expense.
Total period expense = Selling expenses + Administrative expenses
Total period expense = $25,200 + $23,100
Total period expense = $48,300.
Therefore, the correct answer is d. $48,300.
At the end of the current year, Accounts Receivable has a balance of $490,000; Allowance for Doubtful Accounts has a debit balance of $4,500; and sales for the year total $2,210,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $16,700. Determine the amount of the adjusting entry for uncollectible accounts.
Answer:
$21,200
Explanation:
The computation of the amount of the adjusting entry for uncollectible accounts is shown below:
= Estimated amount of Allowance for Doubtful Accounts balance + debit balance of Allowance for Doubtful Accounts
= $16,700 + $4,500
= $21,200
Simply we added the estimated amount and the debit balance so that the accurate amount can come
All other information which is given is not relevant. Hence, ignored it
Baggage fees. An airline charges the following baggage fees: $25 for the first bag and $35 for the second. Suppose 54% of passengers have no checked luggage, 34% have one piece of checked luggage and 12% have two pieces. We suppose a negligible portion of people check more than two bags. (a) Build a probability model, compute the average revenue per passenger, and compute the corresponding standard deviation. (b) About how much revenue should the airline expect for a flight of 120 passengers
Answer:
a) on average 15.70 dollar per person on baggage fees
b) a 120 passangers flight will generate 1,884 dollars on baggage fees
Explanation:
We multiply the probability by the outcome withthe bjective to create a weighted average based on probability of success:
P(x) revenue
no bag: 54% $ 0 0
a bag: 34% $ 25 8.50
two bag: 12% $ 60 7.2
average revenue 15.70
Now, for the fligh of 120 passangers we use this estimation:
120 x 15.70 = $ 1,884
Final answer:
A probability model was constructed for baggage fee revenues, calculating an average revenue per passenger of $15.70 and a corresponding standard deviation of approximately $32.92. For a flight of 120 passengers, the expected revenue is $1,884.00.
Explanation:
To answer the student's question about building a probability model, calculating the average revenue per passenger and its corresponding standard deviation, and estimating the expected revenue for a flight with 120 passengers based on the given baggage fees, we will start by defining the random variable X, which represents the revenue in dollars from a single passenger.
No checked luggage (54% of passengers): $0
One piece of checked luggage (34% of passengers): $25
Two pieces of checked luggage (12% of passengers): $25 + $35 = $60
The probability model for X can be expressed as:
P(X = $0) = 0.54
P(X = $25) = 0.34
P(X = $60) = 0.12
To compute the average revenue per passenger, we use the expectation of X:
E(X) = (0 × 0.54) + ($25 × 0.34) + ($60 × 0.12) = $0 + $8.50 + $7.20 = $15.70
To calculate the standard deviation, we need to find the variance of X, and then take the square root:
E(X²) = (0² × 0.54) + ($25² × 0.34) + ($60² × 0.12) = $1331.50
Variance = E(X²) - [E(X)]² = $1331.50 - ($15.70)² = $1331.50 - $246.49 = $1085.01
Standard Deviation = √Variance = √$1085.01 ≈ $32.92
To estimate the expected revenue for a flight with 120 passengers, we multiply the average revenue per passenger by the number of passengers:
120 passengers × $15.70 = $1,884.00
Suppose the reserve requirement is currently 20%. Instructions: Enter your answers as a whole number. a. Assume Second Bank has deposits of $300 million. Calculate the required reserves for Second Bank. $ million b. At the end of the day, Second Bank has $65 million of reserves. Will Second Bank be a borrower or lender in the federal funds market? Second Bank will reserves of $ million in the federal funds market.
Final answer:
To calculate the required reserves for Second Bank, multiply the deposits by the reserve requirement. If Second Bank has $65 million of reserves, it will be a lender in the federal funds market.
Explanation:
To calculate the required reserves for Second Bank, we need to multiply the deposits by the reserve requirement.
a. Required reserves = Deposits x Reserve Requirement
Deposits = $300 million
Reserve Requirement = 20%
Required reserves = $300 million x 20% = $60 million
Therefore, the required reserves for Second Bank are $60 million.
b. If Second Bank has $65 million of reserves, which is greater than the required reserves of $60 million, it will be a lender in the federal funds market. Second Bank can lend the excess reserves of $5 million.
If the marginal propensity to consume in a municipality is 0.8, what is the value of the simple multiplier? If a new stadium that adds $30 million in new consumption expenditures is built, what is the impact on the economy based on this multiplier? Suppose the marginal propensity to import is 0.3, what happens to the multiplier and to the impact on the economy?
Final answer:
The marginal propensity to consume (MPC) of 0.8 leads to a simple multiplier of 5, meaning that $30 million in new spending for a stadium results in a $150 million increase in the economy. Incorporating a marginal propensity to import of 0.3 reduces the multiplier to 2 and the stadium's economic impact to $60 million.
Explanation:
The marginal propensity to consume (MPC) is a key concept in economics that indicates the proportion of additional income that a consumer will spend rather than save. When the MPC is 0.8, it means that for every extra dollar received, 80 cents will be spent. This spending generates additional income and spending in the economy, which can be calculated using the simple multiplier. The formula for the simple multiplier is 1/(1 - MPC), which in this case would be 1/(1 - 0.8) or 5. This means that every dollar of initial spending generates five dollars of total economic activity.
When a new stadium is built with an initial spending of $30 million, and the multiplier is 5, the total impact on the economy would be 5 times $30 million, which equals $150 million.
However, if we incorporate the marginal propensity to import of 0.3, we must adjust the multiplier because some of the spending now leaks out of the local economy to pay for imports. The new multiplier is calculated as 1/(1 - (MPC - marginal propensity to import)), which would be 1/(1 - (0.8 - 0.3)) or 1/(0.5), resulting in a multiplier of 2. This reduces the total impact of the stadium to 2 times $30 million, which is $60 million.
A $100 million interest rate swap has a remaining life of 10 months. Under the terms of the swap, the six-month LIBOR is exchanged semi-annually for 12% per annum. The six-month LIBOR rate in swaps of all maturities is currently 10% per annum with continuous compounding. The six-month LIBOR rate was 9.6% per annum two months ago. What is the current value of the swap to the party paying floating? What is it's value to the party paying fixed?
Answer:
Explanation:
Fixed = 12% (exchanged for = receive)
Floating = LIBOR = 9.6% two months ago
Remaining life of swap = 10 months
6 month LIBOR rate for all maturities = 10% (used for discounting)
Receive:
Fixed = [(100)(0.12)(6/12) * e - 0.10 * (4/12)] + 106e - 0.10 * (10/12)= $103,328,005
Pay:
Floating = {100 + [(100)(.096)(.5)]} * e - .10 * (4/12)= $101,364,247
Value of swap to party paying floating: $103,328,004.6 - $101,364,247.3 = $1,963,757
Value of swap to party paying fixed =
- $1,963,757
The time for the current iteration is up and one of the features isn't complete. What do you do?
Select an answer:
Stop working and add the incomplete feature back into the backlog.
Stop working but ask the assigned resource to complete the feature while you plan the next iteration.
Extend the iteration to complete the feature.
Stop working and add the incomplete feature to the next iteration.
Answer:
Stop working and add the incomplete feature back into the backlog.
Explanation:
In case a task could not be completed in the current iteration, it is best to add it to the backlog, so that in subsequent iterations it will be completed (giving it priority, of course).
Of course, it is not convenient to extend the iteration time just to finish the incomplete task. Also, we should not add it directly to the next iteration because we would be altering its structure. So the most appropriate thing to do, is to leave it marked as a priority to be included in the next iterations.
If the time for the current iteration is up and one of the features is not complete, what you should do is to:
Stop working and add the incomplete feature back into the backlog.After you have stopped working on this iteration, you have to take this feature that is not complete to the backlog.
After it has been added to the backlog, The iterations that would follow is where the feature is going to be prioritized and completed subsequently.
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Developing a new automobile requires the services of many types of experts such as design and electronics engineers, procurers, metallurgists–the list is extensive. Rather than employ these individuals directly, the automaker will outsource the work. The specialists then work at facilities owned by the automaker rather than at their own employers' places. This demonstrates a type of _____.
Answer: Boundaryless organization
Explanation:
Boundaryless organization is an organization that is not hindered or limited by boundaries created through established structures.
It could also mean an organization whose operation is not confined to a particular location or the confine of their office complex.
The idea of boundaryless organization was first conceptualized by Jack Welch who wanted to eliminate any form of barrier (both internally and externally) in the way General Electrics carried out its operations.
•Note that in order to achieved the concept of a boundaryless organization, flexibility and adaptability must be considered.
•Latest technology for getting work done must also be adopted over traditional mode of operation
Compute the takt time for a service system that intended to perform a standardized service. The system will have a total work time of 358 minutes per day, two 19-minute breaks, and an hour for lunch. The service system must process 88 jobs a day. (Round your answer to 2 decimal places.) Takt time minutes per cycle
Answer:
2.95 minutes
Explanation:
For computing the takt time minutes per cycle, first we have to determine the available time which is shown below:
= Total work time - break time
= 358 minutes - 98 minutes
= 260 minutes
The 98 minutes is come from
2 × 19 minutes = 38 minutes
1 hour lunch = 60 minutes
Total break time = 98 minutes
Now the takt time minutes per cycle would be
= Total available time ÷ number of jobs in a day
= 260 minutes ÷ 88 jobs
= 2.95 minutes
Suppose the price of salt increases by 10 percent and, as a result, the quantity of pepper demanded (holding the price of pepper constant) increases by 1 percent.The cross-price elasticity of demand between salt and pepper is? (Enter your response rounded to two decimal places and include a minus sign if appropriate.) In this example, salt and pepper are?
A. complements,
B. not related,
C. substitute. Instead, suppose salt and pepper were complements. If so, then the cross-price elasticity of demand between saltand pepper would be. A.greater than 1. B. zero. C.greater than minus−1.
D. negative.
E. positive.
Answer:
The cross-price elasticity of demand between salt and pepper is= 0.1 positive.
Salt and pepper are complements.
Explanation:
Lets first understand what elasticity of demand is. Elasticity of demand is the responsiveness of demand to changes in prices only. Now not all products are highly responsive to changes in prices. Such products whose demand changes significantly due to changes in price are referred to as Elastic products and those whose demand doesn't change that much as a result of changes in price are Inelastic products. Examples of inelastic products are, basic necessities like, bread, milk, eggs etc.
The elasticity of demand is measured by the change in quantity demand of a product upon change in price of that product. In this case the cross-price elasticity of demand between salt and pepper is= Change in quantity demand of pepper/ Change in price of Salt
= 1/10=0.1
0.1 elasticity of demand of a product means that product is price inelastic, which means the demand of the product doesn't change as hugely as it's price changes.
The cross-price elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. In the given example, salt and pepper are substitutes, and the cross-price elasticity of demand between them is positive at 0.10. If they were complements, the cross-price elasticity would be negative.
Explanation:In this example, salt and pepper are substitutes. The cross-price elasticity of demand between salt and pepper measures the responsiveness of the quantity demanded of pepper to a change in the price of salt. To calculate the cross-price elasticity of demand, we divide the percentage change in the quantity demanded of pepper by the percentage change in the price of salt. In this case, since the price of salt increased by 10 percent, and the quantity of pepper demanded increased by 1 percent, the cross-price elasticity of demand between salt and pepper is positive at 0.10.
If salt and pepper were complements, the cross-price elasticity of demand would be negative. Complementary goods are those that are typically consumed together, such as bread and butter, or salt and pepper. When the price of one complementary good increases, the demand for the other complementary good decreases. Therefore, the cross-price elasticity of demand between salt and pepper would be negative.
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Digby's balance sheet has $85,185,000 in equity. Further, the company is expecting net income of 3,000,000 next year, and also expecting to issue $4,000,000 in new stock. If there are no dividends paid what will beDigby's book value?
Answer:
Digby's Book Value: $
Book value of existing equity 85,185,000
Book value of additional equity 4,000,000
Net income 3,000,000
Digby's total book value 92,185,000
Explanation:
The book value of Digby is the aggregate of book value of existing equity, book value of additional equity issued and net income.
Suppose a banking system has a required reserve ratio of 0.15. How much can the money supply increase in response to a $1 billion increase in excess reserves for the whole banking system?
Answer:
the money supply increase in response to a $1 billion increase in excess reserves for the whole banking system is $6.67billion.
Explanation:
Increase in money supply = 1/0.15
Increase in money supply = $6.67 billion
Therefore, the money supply increase in response to a $1 billion increase in excess reserves for the whole banking system is $6.67billion.
Which of the following individuals would NOT be considered part of the labor force? a. Aileen, who is a full-time student working part-time b. Lisa, who is working part-time but wants to be working full-time c. Kimberly, who has retired from the military and now works at the post office d. Charles, who is in the Marines and is currently deployed to Iraq e. Thomas, who is unemployed but has given up searching for a job
Answer:
e. Thomas, who is unemployed but has given up searching for a job
Explanation:
The term "labor force" refers to people in an economy that are either employed or unemployed and searching for employment.
From the options provided, Thomas is the only one who is not employed and not looking for a job hence, he should not be considered as part of the labor force.
The labor force includes individuals who are either employed or actively seeking employment. Therefore, out of the individuals listed, Thomas is the one not considered part of the labor force as he is unemployed and has given up searching for a job.
Explanation:In the context of labor economics, the labor force consists of persons who are either employed or unemployed (actively seeking work). This highlights a crucial aspect of the labor force definition; it's not just about whether a person is working, but also includes whether they're actively seeking employment. In the given options:
Aileen, Lisa, Kimberly, and Charles all fall into the labor force because they are either working or willing to work.However, Thomas is not considered part of the labor force. Although he is unemployed, he has given up searching for a job, therefore placing him outside of the labor force.It's essential to differentiate between types of unemployment and those who constitute the 'out of labor force' group. For example, a person out of work but actively seeking is still considered part of the labor force as opposed to someone who is also out of work but has stopped looking for employment.
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Jackson foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required.
1. Compute Jackson's predetermined overhead allocation rate (Formula needed)
2. Prepare the journal entry to allocate manufacturing overhead. (Debits first then credits)
3. Is manufacturing overhead under-allocated or over-allocated? By how much?
4. Prepare the journal entry to adjust for the under-allocated or over-allocated manufacturing overhead. (debits first, then credits). Does your entry increase or decrease cost of goods sold?
At the beginning of the month, the company expected to incur the following:
- Mfg. overhead costs $880,000
- Direct labor costs 1,540,000
- Machine hours 80,000 hours
At the end, these are actual results:
- Direct labor $1,210,000
- Depreciation on mfg. plant and equip. 530,000
- Property taxes on plant 36,500
- Sales salaries 29,500
- Delivery wages 20,500
- Plant janitor's wages 24,000
- Machine hours 60,000 hours
Answer:
1) $ 11 per hour
2) Work in Process (Debit) 660,000
Manufacturing overhead clearing (credit) 660,000
3) Manufacturing overhead is over-allocated by $ 69,500
4) Manufacturing overhead clearing (debit) 69,500
Cost of good sold 69,500
Yes, the entry decreases the cost of goods sold as the actual overhead expenses are less than the applied over head cots.
Explanation:
1) Overhead rate = Expected manufacturing overhead / Estimated number of machine hours
Overhead rate: 880,000 / 80,000 = $ 11 / machine hour
2) Journal entry is recorded based on every hour worked during the period. Since 60,000 hours are worked so total of 660,000 manufacturing overheads are recorded using following entry.
Work in Process (Debit) 660,000
Manufacturing overhead clearing (credit) 660,000
3) Under-application results when actual manufacturing overheads are higher than expectation and vice versa. In question provided total hours were 60,000 instead of 80,000 budgeted hours, further actual cost amounted to $590,500 (530,000 for depreciation, 36,500 for property taxes, 24,000 plant janitor), thus there is over application by 660,000 - 590,500 = 69,500.
Note: Sales salaries and delivery wages are not included in overhead expenses as they are not part of manufacturing overheads.
4) Manufacturing overhead clearing (debit) 69,500
Cost of good sold 69,500
As there is over application of overhead expenses so there is a credit in manufacturing overhead account, so in order to clear the clearing account balance is transferred to cost of goods sold resulting in net profit to bottom line.
Final answer:
Jackson's predetermined overhead allocation rate would be $11 per machine hour. The company over-allocated manufacturing overhead by $69,500. The adjustment journal entry decreases the cost of goods sold by the same amount.
Explanation:
To compute Jackson's predetermined overhead allocation rate, we use the formula:
Overhead Rate = Estimated Manufacturing Overhead Costs / Estimated Total Units in the Allocation Base
In this case, the allocation base is machine hours.
Thus, the overhead rate = $880,000 / 80,000 hours = $11 per machine hour.
The journal entry to allocate manufacturing overhead when the overhead is applied to a job would be:
Debit: Work in Process
Credit: Manufacturing Overhead
Assuming the company uses all the estimated machine hours, if 60,000 machine hours were actually used:
Debit Work in Process $660,000 (60,000 hours x $11)
Credit Manufacturing Overhead $660,000
To determine if manufacturing overhead is under-allocated or over-allocated, we compare the estimated overhead costs with the actual overhead costs. We sum up the actual overhead costs: depreciation on manufacturing plant and equipment $530,000, property taxes on the plant $36,500, and plant janitor's wages $24,000, which equals $590,500. Since this is less than the applied overhead of $660,000, there is an over-allocation of $69,500 ($660,000 - $590,500).
The journal entry to adjust for the over-allocated manufacturing overhead would be:
Debit: Manufacturing Overhead $69,500
Credit: Cost of Goods Sold $69,500
This entry would decrease the cost of goods sold, as it corrects the over-applied overhead.
Reuben Rubino is a Tax Professional working during the Emerald Advance offer period before tax season starts. He has taken and passed the financial product compliance course. He wants to apply for an Emerald Advance. What should he do?
a. Reuben can complete his own product application.
b. Reuben needs to have another associate complete his application because self-preparation of product applications is prohibited.
c. Reuben is ineligible to apply for H&R Block Emerald Advance.
d. None of the above.
Answer and Explanation:
b. Reuben needs to have another associate complete his application because self-preparation of product applications is prohibited.
The stock of Big Joe's has a beta of 1.38 and an expected return of 16.26 percent. The risk-free rate of return is 3.42 percent. What is the expected return on the market?a. 7.60%b. 8.04%c. 9.30%d. 12.72%e. 12.16%
Answer:
d. 12.72%
Explanation:
To calculate the expected return on the market, we will use the Capital asset pricing model (CAPM) equation.
The CAPM allows to relate the risk-free rate of return (RFROR), the market risk premium, the beta of an asset and the expected return of this asset.
Expected return = risk-free ROR + (Beta*Market risk premium)
In this case we know all the parameters but the Market risk premium (MRP), so we have:
[tex]ER=RFROR+\beta*MRP\\\\\\16.26=3.42+1.38*MRP\\\\MRP=(16.26-3.42)/1.38=9.30[/tex]
We also know that the beta of the market, by definition, is equal to one. So now that we know the market risl premium we can calculate the expected return on the market:
[tex]ER=RFROR+\beta*MRP\\\\ER=3.42+1*9.30=3.42+9.30=12.72[/tex]
The expected return on the market is 12.72%.
Final answer:
Using the CAPM formula, we rearrange to solve for the Expected Return on the Market and find it to be 12.72%, corresponding to option d.
Explanation:
The student's question concerns finding the expected return on the market using the Capital Asset Pricing Model (CAPM). The CAPM formula is given by:
Expected Return on Stock = Risk-Free Rate + Beta * (Expected Return on Market - Risk-Free Rate)
We can rearrange this formula to solve for the Expected Return on the Market (ERM), as follows:
ERM = ((Expected Return on Stock - Risk-Free Rate) / Beta) + Risk-Free Rate
Substituting the provided values into this equation, we get:
ERM = ((16.26% - 3.42%) / 1.38) + 3.42%
ERM = (12.84% / 1.38) + 3.42%
ERM = 9.30% + 3.42%
ERM = 12.72%
Therefore, the expected return on the market is 12.72%, which corresponds to option d.
Parsons Company is planning to produce 2,800 units of product in 2017. Each unit requires 1.20 pounds of materials at $5.60 per pound and a half-hour of labor at $12.00 per hour. The overhead rate is 70% of direct labor. (a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. Direct materials $ Direct labor $ Overhead $ (b) Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.) Standard cost $ Click if you would like to Show Work for this question: Open Show Work
Answer:
a. Budgeted amounts for 2017: $
Direct material (1.20 pounds x $5.60 x 2,800 units) = 18,816
Direct labour (0.5 hr x $12 x 2,800 units) = 16,800
Applied overhead (0.5 hr x $8.40 x 2,800 units) = 11,760
Budgeted amount for 2017 47,376
b. Standard Cost for One Unit of Product
$
Direct material ( 1.20 pounds @ $5.60 per pound) = 6.72
Direct Labour (0.5 hour @ $12 per hour) = 6.00
Overhead (0.5 hours @ $8.40 per hour) = 4.20
Standard cost for one unit of product 16.92
Explanation:
The Budgeted amount for 2017 is the budgeted direct material cost , budgeted direct labour cost and budgeted overhead. Budgeted direct material cost is the product of standard quantity, standard price and budgeted output. Budgeted direct labour cost is the product of standard hours, standard rate and budgeted output. Budgeted overhead is the product of standard hours, standard overhead rate and budgeted output.
The standard cost per unit of product is comprised of standard material cost per unit, standard labour cost per unit and standard overhead cost per unit.
Standard material cost per unit is the product of standard quantity and standard price. Standard labour cost per unit is the product of standard rate and standard hours. Overhead cost per unit is the product of standard overhead rate and standard hours. Standard overhead rate is 70% of $12 = $8.40.
The 2017 budgeted amount for Parsons Company is calculated to be $18,816 for direct materials, $16,800 for direct labor, and $11,760 for overhead. The standard cost of one unit of product based on these costs is $16.92.
Explanation:To compute the budgeted amounts for 2017 for Parsons Company, we first need to calculate the cost for each component: direct materials, direct labor, and overhead.
Direct Materials: Each unit requires 1.20 pounds of materials, so for 2,800 units, it would be 2,800 * 1.20 = 3,360 pounds of materials. The cost for materials is $5.60 per pound, so 3,360 * $5.60 = $18,816. Direct Labor: Each unit requires a half-hour of labor, so for 2,800 units, it would be 2,800 * 0.5 = 1,400 hours of labor. The cost for labor is $12.00 per hour, so 1,400 * $12.00 = $16,800. Overhead: The overhead is 70% of direct labor. Hence, $16,800 * 0.70 = $11,760.
To compute the standard cost of one unit of product, we add the cost per unit of materials, labor, and overhead. The cost per unit for each is:
Direct Materials: $18,816 / 2,800 = $6.72 Direct Labor: $16,800 / 2,800 = $6.00 Overhead: $11,760 / 2,800 = $4.20
The standard cost of one unit is hence, $6.72 + $6.00 + $4.20 = $16.92 (rounded to 2 decimal places).
Learn more about Budgeting and Cost Calculation here:https://brainly.com/question/17136241
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At the end of 2011, the government of China's debt was yen12.2 trillion. (yen is yuan, the currency of China). In 2012, the government spent yen12.7 trillion and ended the year with a debt of yen11.6 trillion. How much did the government receive in tax revenue in 2012? The government received ¥61 trillion in tax revenue in 2012.
Answer:. Y 13.6 trillion
Explanation:. Y
Total debt 2011 12.2 trillion
Expenditures 2012. 12.7
Total. 24.9
Less debts 2012. (11.6)
Balance. 13.6
The goverments spending if not from tax is supposed to increase the debts to Y24.9 trillion it's reduction to Y11.6 trillion means Y13.6 which is the difference was earned from tax to make expenditures.
Final answer:
The government received ¥61 trillion in tax revenue in 2012.
Explanation:
The government received ¥61 trillion in tax revenue in 2012.
To calculate the tax revenue, we need to find the difference between the beginning and the end of the government's debt for that year: ¥12.2 trillion - ¥11.6 trillion = ¥0.6 trillion. This means that the government's debt decreased by ¥0.6 trillion in 2012. The amount of tax revenue received is equal to the decrease in debt, which is ¥0.6 trillion. Therefore, the government received ¥0.6 trillion or ¥61 trillion in tax revenue in 2012.
SAP Inc. received a $1.5 million grant under its Small Business Innovation program. SAP invested the grant money and developed a system to remove metal contaminants from storm water in shipyards. The firm estimates that each shipyard spends $500,000 a year on storm water clean-up efforts. If SAP is able to sign up and retain four shipyards in the first year onwards, what is the present value (PV) of the project (net of investment) if the cost of capital for SAP is 14% per year? Assume a cost of operations and other costs for SAP equal 50% of revenue.A) $4.80 million
B) $5.64 million
C) $4.51 millionD) $5.93 million
Answer:
B) $5.64 million
Explanation:
SAP inc can receive $500,000/ shipyard and 4 shipyards a year yields gross cash flows of 500*4 = $2,000,000. Half of these are costs that give us a Net cash flow of $1,000,000/ year.
Since there is no maturity of the project we calculate present value of cash flow with the following formula
PV of cash flow = 1,000,000/0.14 = $7.14 million rounded off
NPV = 7.14-1.5 = 5.64 million
Hope that helps.
The five steps in the process of conversation, in sequential order, are __________.
(A) closing, feedback, business, feedforward, opening
(B) opening, closing, middle, business, transitions
(C) feedforward, feedback, business, transitions, closing
(D) opening, feedforward, business, feedback, closing
Answer:
Letter D is correct. Opening, feedforward, business, feedback, closing.
Explanation:
Every conversation goes through certain stages, regardless of whether the relationship is formal or personal between the interlocutors.
There are 5 stages that determine a conversation process, they are:
Opening, feedforward, business, feedback, closing.Opening begins with a greeting, which can be verbal or nonverbal.Some basic and trivial considerations such as asking how a person is are also part of opening.
Feedforward is the transition to the focal point of the conversation. It is the visualization of what you will say next.
Business already sets up as the stage where the main focus of the conversation is said. This is the central stage of a conversation, where interlocutors discuss ideas and opinions.
Feedback is the stage in which there is a retroactive effect, ie the information or response that the sender has from the receiver and serves as an evaluation parameter of the result of a message.
Closing is the final stage of a conversation, occurs when all the other stages of the conversation have already been developed and satisfied, and can end with a greeting.
The five steps in the process of conversation, in sequential order, are opening, feedforward, business, feedback, closing.
Explanation:The correct order of the five steps in the process of conversation is (D) opening, feedforward, business, feedback, closing.
Opening: The first step is to establish a conversation by greeting the participants and setting the tone. Feedforward: This step involves providing any necessary background information or context to guide the conversation. Business: The main part of the conversation where the topic is discussed, questions are asked, and information is exchanged. Feedback: The step where participants reflect on the conversation, summarize the main points, and address any concerns or questions. Closing: The final step is to bring the conversation to a close, express gratitude, and confirm any next steps or follow-up actions. Learn more about Conversation process here:https://brainly.com/question/37283672
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The financial manager for Eastern Bay Brewery is working with the firm's marketing department to bring out a new line of pumpkin ale. The new product development and subsequent production will require a long-term investment of funds by the company. Which of the following sources of financing would be representative of such a long-term funding requirement?
a. Commercial paper
b. Issuance of bonds
c. Line of credit
d. Factoring
Answer:
The correct answer is letter "B": Issuance of bonds.
Explanation:
Firms tend to issue bonds when they need to raise funds to continue with their operations or to start the massive production of a new good. Bonds work like a loan between financial institutions and the companies. Financial institutions, typically banks, agree with the firms in providing an amount of money so that the firm will pay back within a specific time in the long term.
Assume the firms in a monopolistically competitive industry initially are earning positive economic profits. Which of the following will not occur over time?
A. The firms' economic profits will be reduced
B. New firms will enter
C. Demand for the existing firms' output will become more inelastic
D. The number of substitutes available in the industry will increase
Answer:
C. Demand for the existing firms' output will become more inelastic
nn wants to rent an apartment and she finds that apartments in her town are renting at a price lower than she is willing to pay. However, she finds it very difficult to find an apartment to rent. Finally, after six months of searching, she finds an apartment but she has to pay an additional $1,000 to have the locks changed. The best way to describe Ann's experience is that she has just experienced the effects an inelastic demand apartments bad luck with no market explanation a price ceiling an elastic demand for apartments O a price floor
Answer: an elastic demand for apartment
Explanation:
Elasticity of demand is the degree of responsiveness of demand to changes in price of goods and services. It's said to be elastic when a change in price leads to a more proportionate change in demand that is the consumer is willing to purchase more goods as a result of fall in price and less goods as a result of increase in price.
In the above scenario the Consumers are willing to rent all the apartments available at a low price and that is why Nn could not get an apartment even though the prices are lower than her budget.
It's not an inelastic demand because there is always little or no change in demand in an inelastic and it's not a market ceiling nor a price floor because the prices are not fixed by non market forces like the goverments and it's a situation that is economically explanable.
Economies and companies could improve their "wealth" by:
allowing specialization of tasks.
Answer:
Economies of scale
Explanation:
Economies of scale is a situation where there is a reduction in cost as more output is produced. Continuous production of output ultimately leads to specialization of task.
When using the IDRC to assess the external environment the company will look at which of the following?
A. Rules
B. Leadership
C. Knowledge
D. Economy
Answer: Knowledge
Explanation: IDRC engages in expertise, creativity, and strategies to increase the quality of life in developing countries as a segment of Canada's international affairs and development activities. IDRC aims to address realistic development issues with the brilliant minds in Canada and across the globe.
In addition to promoting global stability and development, partnering with local academic institutions and financing agencies effectively decreases reliance on assistance while establishing political leadership.
Thus, from the above we can conclude that the primary focus in the program is on knowledge.
Answer:
Geography
Explanation:
Choices were:
Leadership
Technology
Geography
Knowledge
____ leaders cause changes in individuals and social systems.
a. Transactional
b. Transformational
c. Transnational
d. Transregional
Answer:
b. Transformational leader
Explanation:
Transformational leadership in itself is an inspiring leadership style in which the leader encourages teams to identify areas and processes that need change. This enhances innovation and helps to create a vision to guide the change. This type of leader also ensures that the employees are thoroughly trained and gives them autonomy and room to be creative. It is most likely to result in company growth as it discourages complacency.