In an economy with no government and no foreign sectors, autonomous consumer spending is $250 billion, plannedinvestment spending is $350 billion, and the marginal propensity to consume is 2/3.a. Plot the aggregate consumption function and planned aggregate spending.b. What is unplanned inventory investment when real GDP equals $600 billion?c. What is Y*, income–expenditure equilibrium GDP?d. What is the value of the multiplier?e. If planned investment spending rises to $450 billion, what will be the new Y*?
Answers
Answer:
Please see attachment
Explanation:
Please see attachment
Related Questions
Here are some facts about the relationship between three goods: Firm X produces a good that it sells to Firm Y. Firm Y produces a service and sells it to consumers. Firm Z produces a service that is similar to Firm Y, and they also sell to consumers. Firm Z has no relationship with Firm X. Firm X experiences an increase in the demand for its product. We can expect this to a. the price that it charges for its product. This change in the price of good X will cause the b. curve for good Y to c. . The change in the market for good Y will cause the price of good Y to d. . This change in the price of good Y will cause the e. for good Z to f. . Enter increase
Answers
Answer:
a. increase
b. supply
c. decrease
d. increase
e. demand
f. increase
Explanation:
An increase in demand will cause an increase in the equilibrium price and quantity of a good so (a) is increase.
Since a decrease in supply will cause an increase in the equilibrium price and a decrease in the equilibrium quantity of a good so (b) (c) and (d) are supply, decrease and increase respectively.
Also a change in demand will cause equilibrium price and output to change in the same direction. Therefore (e) and (f) are demand and increase respectively.
The organizational process of changing over from the current information system to a new one best defines: a. reorganization. b. replacement. c. system alteration. d. installation. e. physical design.
Answers
The organizational process of changing over from the current information system to a new one best defines installation.
Option D
Explanation:
Corporate change takes place when a company moves from its current state to a planned future state. Corporate change management is the practice of initiating and executing behavioral improvements so that staff opposition to change is reduced and the business benefits maximized at the same time.
In today's business climate, businesses must continuously experience transition if they are to remain competitive. In order to survive, companies react to factors like market globalization and rapidly developing technology. These improvements may be quite minor— as in the case where a new software system is set up— or quite large— as when the overall marketing strategy is re-focused, a hostile takeover is combatted, or a company is changed in the face of increasing foreign competition.
Explain why paying each bill individually (paying transaction by transaction) is detrimental to one’s financial stability?
Answers
Answer:
Paying bills individually is more expensive
Explanation:
Paying bills by transaction is more expensive and a damaging to a person's financial health. Bill payment should be organized and planned to avoid unnecessary cost that comes with paying each bill individually.
Exodus Limousine Company has $1,000 par value bonds outstanding at 17 percent interest. The bonds will mature in 40 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the percent yield to maturity is: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)
Answers
Answer:
Consider the following calculation
Explanation:
Yield to maturity is not given here. So we assume that Yield to maturity is 10%.
Present value of interest payment :
PV = A*PVIFA (n= 40,i =10%)
= 170*9.7791
= 1662.45
Present value of principal payment at maturity
PV = FV*PVIF (n= 40,i =10%)
= 1000 * .0221
= 22.10
Current price of bond = 1662.45+22.10
= $ 1684.55
The current price of the bonds can be calculated using the formula for present value of a bond. The formula is PV = C/(1 + r)^n. Plugging in the given values, the current price of the bonds is approximately $8.34.
Explanation:The current price of the bonds can be calculated using the formula for present value of a bond. The formula is:
PV = C/(1 + r)^n
Where:
PV is the present value of the bondC is the annual interest paymentr is the percent yield to maturityn is the number of years until maturityIn this case, the annual interest payment is $170 (17% of $1000) and the number of years until maturity is 40. Let's assume the percent yield to maturity is 15%. Plugging these values into the formula:
PV = 170/(1 + 0.15)^40 = $8.34
So the current price of the bonds is approximately $8.34.
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What is the conclusion of the test that determines the regression parameters ????_1 is equal to zero at a 0.01 level of significance? (Assume that the conditions necessary for proper inference are satisfied.) Select one: a) National income is a significant indicator of the company sales. b) National income is not a significant indicator of the company sales. c) Intercept is a significant indicator of the company sales. d) Intercept is not a significant indicator of the company sales.
Answers
Answer:
It implies that national income is not a significant indicator of the company's sales. The correct answer is B.
Explanation:
The reason is that regression coefficients are expected to be compared with table value. since the regression coefficients are zero at 0.01 level of significance, it means that the results are not statistically significant. Thus, we can conclude that national income is not a significant indicator of the company's sales.
The test that determines the regression parameter 1 equals zero at a 0.01 level of significance concludes that national income is not a significant indicator of company sales. Thus, option B is correct.
What is the regression parameter?The parameter (the regression coefficient) represents the amount by which a change in x must be multiplied to obtain the corresponding average change in y, or the amount y changes for every unit increase in x. It represents the degree to which the line slopes upwards or downwards in this manner.
The reason for this is that regression parameter should be compared to table values. The results are not statistically significant because the regression coefficients are 0 at the 0.01 level of significance.
Therefore, option B is correct, that we can conclude that national income is not a significant predictor of company sales.
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Brad's Robotics Incorporated will earn $60 in one year if it does well. The debtholders are promised payments of $40 in one year if the firm does well. If the firm does poorly, expected earnings in one year will be $10 and the repayment will be $5 because of the dead weight cost of bankruptcy. The probability of the firm performing poorly or well is 40%. If bondholders are fully aware of these costs what will they pay for the debt?
Answers
Answer:
pay for the debt = $17.76
Explanation:
given data
earn = $60
debt holders payments = $40
earnings = $10
repayment = $5
probability = 40%
to find out
what will they pay for the debt
solution
we consider here interest rate on the bonds = 7%
so we now get here pay for the debt that is express as
pay for the debt = ( debt holders payments × probability + earn × repayment ) ÷ ( 1 + interest rate ) ..........................1
put here value we get
pay for the debt = [tex]\frac{0.4*40+0.6*5}{(1+0.7)}[/tex]
pay for the debt = $17.76
Suppose a new sandwich restaurant is opening on your street. On the opening day, you order a sandwich for $15. While you are eating it, you realize that the sandwich is not very good. On the next day, you decide to make the $15 sandwich by yourself. You get all ingredients from the local supermarket for $5. How much does GDP increase by over both days together?
a. $5
b. $15
c. $20
d. $30
Answers
Answer:
c. $20
Explanation:
GDP (Gross Domestic Product) is the total monetary value of goods and services produced within the borders of the United States, regardless of who owns the assets or the nationality of the labor used in the production of that product.
GDP = C + I + G + (X - M)
The first day:
Consumption $ 10
Investment $ 5
Second day:
Expenses: $ 5
GDP = $20
Sam comes home from work one day and finds two letters in his mailbox. One is an eviction notice from his landlord,Quinn, telling him he has to be out of the apartmentin 30 days because his barking device has been bothering the other tenants. It also states that Sam was not allowed to conduct a business from his apartment. Sam is angry because he specifically told Quinn that he was working on a new invention, and Quinn had wished him luck. The second letter is from the chain store, demanding that Sam deliver the promised 1,000 units immediately. Specifically,the following critical elements must be addressed:
A. Analyze the elements of this case to determine whether a valid contract exists between Sam and the chain store. Support your response by identifying the elements of a valid contract in your analysis.
B. Assume there is not a valid contract between Sam and the chain store. Analyze the elements of a quasi-contract and a promissory estoppel to determine whetherthe chain store would prevail on a claim of either. Why or why not? Include support for your analysis.
C. Identify the rights and obligations of both the landlord and tenant under a standard residential lease agreement.
D. Based upon those rights and obligations, does Sam’s landlord have groundsto evict? Why or why not?
E. Further, what defenses might Sam raise to an eviction action? Support your response.
Answers
Answer:
Consider the following explanations
Explanation:
Answer to the first question:
No valid contract exists between Sam and the chain store. For any contract to be valid, it should come under the purview of law. All the conditions and liabilities must be properly written down and registered and they should be agreed upon by both the parties. Though an oral contract is a valid one, it can be hard to prove the legality of such contract as there are no written legal bindings.
Answer to the second question:
The quasi contract case of the chain store will not prevail, as quasi contract is a contract which is enforced by a court of law upon the parties, whether they may agree to it or not. In this case, court's order was not involved.
Promissory Estoppel helps and affected party to recover from a loss suffered due to one's promise not kept. For legal enforcement, it must have the three elements, promisor, promisee and detriment suffered by the promisee. In this case, the promisee is the chain store which was promised by Sam, the promisor that he will ship 1000 instruments to the chain store. However, he was not able to supply the same because of the eviction notice given by the landlord of Sam. Hence, the detriment is suffered by the Chain store due to promise of Sam which was not kept. This needs to be proved by the chain store in a court with reasonable belief that they have actually suffered losses. If reasonable cause is produced by the chain store they have a strong case on the basis of promissory estoppel.
Answer to the third question:
Rights of landlord:
Access to property for inspection, repair and maintenance.
Timely receipt of rent payment with gradual increase in rent over a period of time.
Collection of security deposit before signing lease agreement.
Can restrict tenant from sub-letting his property.
Can evict tenant if property is damaged or lease contract terms are violated.
Obligations of landlord:
To provide tenant with a property with proper living conditions.
To provide tenant with electric and water supply.
To carry out necessary repair and maintenance of the property for which he is responsible under the contract.
To get the lease agreement registered with proper authority.
To provide the tenant with prior written notice before terminating the contract.
Rights of tenant:
To live a peaceful and happy life. If disturbance occurs due to some neighbor, he can ask them or the landlord to stop or can make a formal complaint.
Entitled for a standard accommodation with electric supply and water supply.
Entitled for privacy and landlord cannot enter his accommodation without his prior permission except in case of emergency.
Entitled for reimbursement for any repairs carried out for which the landlord is responsible.
Right to prior written notice for termination of contract or review in rent.
Obligations of tenant:
Pay the rent on time.
Pay the charges mention in the lease agreement.
Keep the property maintained and in good condition.
To inform the landlord for carrying out any repairs in the property.
To give access to the landlord for inspection, with prior appointment.
To live in a socialized manner without causing disturbance to the landlord and neighbors.
To comply with all the terms and conditions of the lease agreement.
To give prior written notice before evicting the property or ending the lease agreement.
Answer to the fourth question:
Based on the above rights and obligations of the tenant and landlord, Sam's landlord has proper ground to evict Sam from his property. As per the lease agreement, Sam was given the property for residential purpose only and not for carrying out any scientific work or invention. His work was causing nuisance and disturbance to the neighbors which was breach of terms of the lease agreement. Sam was entitled for use of the property only for living and peaceful purposes.
Answer to the fifth question:
Sam can raise his defense that he had told the landlord before signing the lease agreement that he was working on a new invention and at that time landlord never raised any objection. He also never questioned about the type of work that will be carried out by Sam in the rented property. He also did not include the terms in the lease agreement on which Sam was insisting hard, to avoid any future obligations.
Aaron is being introduced to his new workplace and coworkers. His boss tells him the names of people and departments, but she says very little about each person's rank or the relationship between departments. She also does not speak much about the culture of the workplace. However, at the end of the introduction she says, "Hopefully now you have a better understanding of who we are, what we stand for, and how things work here." Aaron's boss's communication style seems to be best described as what?
Answers
Answer: An Intuitive communication style
Explanation: Those that use the intuitive communication style prefer a more casual, common-sense based approach to communicating ideas. They want to understand the big-picture concepts and aren’t interested in getting too bogged down in the details of the idea. In many ways, intuitive communicators are the opposite of analytical communicators, who prefer to have all of the relevant details on hand when making a decision.
Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area.
The charter issued by the state authorized the following stock:
Common stock, $10 par value, 98,000 shares authorized
Preferred stock, $50 par value, 8 percent, 59,000 shares authorized
During January and February of this year, the following stock transactions were completed:
Sold 78,000 shares of common stock at $20 cash per share.
Sold 20,000 shares of preferred stock at $80 cash per share.
Bought 4,000 shares of common stock from a current stockholder for $20 cash per share.
Required:
Net income for the year was $210,000; cash dividends declared and paid at year-end were $50,000.
Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.)
Answers
The final stockholders' equity of Quick Fix-It Corporation at the end of the year is $1,860,000, calculated by adding the net common stock ($700,000), preferred stock ($1,000,000), and retained earnings ($160,000) together.
Explanation:The stockholders' equity section of the balance sheet can be calculated as follows:
Common stock: The company sold 78,000 shares at $10 par value each, which equals $780,000. However, they bought back 4,000 shares at $20 each, meaning they paid $80,000 for this. Therefore, the net common stock is $780,000 - $80,000 = $700,000.Preferred stock: The company sold 20,000 preferred shares at a par value of $50 each, which equals $1,000,000.There was also a net income of $210,000 for the year, but a payout of $50,000 in dividends. This means an addition to Retained Earnings of $160,000 ($210,000 - $50,000).Therefore, the final stockholders' equity is the sum of the net common stock, preferred stock, and the addition to retained earnings, which equals $1,860,000 ($700,000 + $1,000,000 + $160,000).
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if a taxpayer's 2019 household income of $60,000 places the taxpayer at 350% of the federal poverty level, what is the taxpayer's normal expected contribution when calculating the refundable tax credit for which the taxpayer may be eligible under the ppaca to purchase a qualified health plan?
Answers
Answer:
The taxpayer's normal expected contribution when calculating the refundable tax credit for which the taxpayer may be eligible under the ppaca to purchase a qualified health plan is $57,000.
Explanation:
With an income of $ 600,000, the tax payer is at 350% of the Federal Poverty Level or FPL, so the normal expected contribution is 9.5% of his income.
The normal expected contribution = 9.5% of his income
= 600000*9.5%
= $57,000
Therefore, The taxpayer's normal expected contribution when calculating the refundable tax credit for which the taxpayer may be eligible under the ppaca to purchase a qualified health plan is $57,000.
When calculating the refundable tax credit for which the taxpayer may be eligible under the ppaca to purchase a qualified health plan, the taxpayer's normal expected contribution is $57,000.
The taxpayer's income is at 350 percent of the Federal Poverty Level, or FPL, thus the normal expected contribution is 9.5 percent of his earnings.
The computation of normally expected contribution (NEC):
[tex]=0.095 \text{ of his income}[/tex]
[tex]=600,000[/tex] × [tex]0.095[/tex]
[tex]= 57,000[/tex]
Note = 9.5% 04 0.095
As a result, when computing the refundable tax credit for which the taxpayer may be eligible under the ppaca to purchase a qualified health plan, the taxpayer's normal expected contribution is $57,000.
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A site is improved with a single-family residence. If vacant, the value of the site for a residential use would be $100,000. However, the site is zoned so that a commercial use is allowed, and if vacant, it would sell as commercial property for $160,000. The cost of demolishing the existing structure is $20,000. What is the value of the property as improved for commercial use?
Answers
Answer:
Value of property= $140,000
Explanation:
If there were no commercial use of the site, it would have a value of $100000. But due to the site being zoned which allows it to be used for commercial purposes will have a value of $160000. But in order to make it available for commercial use, the existing structure has to be demolished which will cost $20000. Therefore, the value of property as improved for commercial use would be the net of sale value and costs incurred to make it available for sale. Calculation is as follows:
Sale value = $160,000
Costs to sell = (-$20,000)
Net value= $140,000
In EXtreme Programming (XP) the Customer works very closely with the development team and the development team uses "User Stories" to convey functionality.
A. True
B. False
Answers
Answer:
True
Explanation:
this is to ensure deeper understanding.
The statement is true: in Extreme Programming (XP), the customer closely collaborates with the development team, using User Stories to communicate functionality needs. This collaborative approach is a key component of agile methodologies.
The statement that in Extreme Programming (XP) the customer works very closely with the development team and that the team uses "User Stories" to convey functionality is true. This close collaboration is central to agile methodologies, of which XP is a prominent example. The Agile Manifesto reinforces the importance of customer collaboration over contract negotiation, highlighting the necessity for business people and developers to work together daily throughout a project. This approach shifts focus from a traditional contractual relationship to a partnership where the customer plays an active role in the development process, providing valuable input and helping in prioritizing work through direct involvement and communication.
User stories are a concise, simple language tool that allows customers to articulate their requirements without needing a deep knowledge of IT or system development. However, ensuring that the customer is sufficiently knowledgeable and prepared to be involved in this way can be a challenge, but it is crucial for setting sensible priorities and accurately reflecting customer needs within the product. Should a customer be unable or unwilling to participate to the required extent, it might be necessary for someone from the development side to represent the customer's perspective, running the risk that the real user needs might not be fully understood or met.
According to Agile principles, such as those outlined in Extreme Programming, effective communication is paramount, recommending face-to-face conversations as the most efficient way to convey information. The core idea is to integrate customer feedback continuously and iteratively to ensure that the end product delivers business value and meets the evolving needs of the customer, contrasting sharply with the traditional waterfall model, which emphasizes a sequential design process.
Secret Prizes Inc. is planning to sell 200 buckets and produce 190 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Secret Prizes has 300 kilos of plastic in beginning inventory and wants to have 200 kilos in ending inventory. How much is the total amount of budgeted direct labor for March? $1,425 $3,000 $2,850 $1,500
Answers
Answer:
Budgeted direct labour hours
= 0.5 hour x 200 buckets
= 100 hours
Budgeted amount of direct labour
= 100 hours x $15
= $1,500
Explanation:
There is need to calculate direct labour hour, which is 0.5 hour multiplied by number of buckets budgeted. then, we will determine the budgeted amount of direct labour, which is budgeted direct labour hours multiplied by hourly rate.
Information from the records of the Conundrum Company for September 2018 was as follows:
Sales $307,500
Selling and administrative expenses 52,500
Direct materials used 66,000
Direct labor 75,000
Variable factory overhead 50,000
Factory overhead 51,250
Inventories
Sept. 1, 2018 Sept 30, 2018
Direct materials $ 8,000 $10,500
Work in process 18,750 21,000
Finished goods 17,250 14,250
Conundrum Corporation produced 20,000 units.
The prime costs per unit for September were
a.$7.05
b.$8.8125
c.$20.00
d.$14.7375
Answers
Answer:
The prime costs per unit for September were a. $7.05
Explanation:
The prime costs per unit for September were (consider the following calculation).
step 1. = ($66,000 + $75,000) / 20,000 units
step 2. = $141,000 / 20,000 units
step 3. = $7.05 per unit
Final answer:
The prime costs per unit of the Conundrum Company are calculated by adding the direct materials used ($66,000) with the direct labor ($75,000) and then dividing by the number of units produced (20,000 units), resulting in a cost of $7.05 per unit.
Explanation:
Prime Costs Calculation
The question involves calculating the prime costs per unit for the Conundrum Company. Prime costs consist of direct materials and direct labor. In the provided data, we have the following figures for the month of September 2018:
Direct materials used: $66,000
Direct labor: $75,000
To calculate the prime costs per unit, we add the direct materials used to the direct labor and then divide by the number of units produced. The calculation is as follows:
Prime Costs = Direct Materials + Direct Labor
Prime Costs = $66,000 + $75,000
Prime Costs = $141,000
Units Produced = 20,000
Prime Costs per Unit = Prime Costs / Units Produced
Prime Costs per Unit = $141,000 / 20,000
Prime Costs per Unit = $7.05
Therefore, the correct answer is (a) $7.05.
As the chief marketing officer at Chevrolet, you'd like to determine how much the engineering team's redesigned dashboards are going to influence your sales forecasts. You've decided to use the Delphi technique, but you're not sure who to include in your research. Of the following groups who might provide useful insights, which group are you least likely to turn to for feedback?Academic researchers in automotive engineeringAudio/hearing specialistsExperts in efficient environmental designVision and visual processing scientists
Answers
Answer:
Vision and visual processing scientists
Explanation:
The vision and visual processing scientists can give a better feedback on how the new dashboards will be received by the customer. This is a user experience approach which supports their study in techniques like Delphi.
1 year treasury investment yield 4%; while a high tech comonn stock investment yeilds 25%. the risk free rate of return is:______A. 0%B. 4%C. 21%D. 25%
Answers
Answer:
B. 4%
Explanation:
The risk free return is equal to the one year treasury investment yield because the treasury investment is a government bond and the people have a guarantee by the government that they will be paid what they are owed, thus a 1 year treasury investment yield is often looked at as a risk free rate of return. In this question the one year treasury yield is 4% so the risk free rate of return is also 4%.
Under what circumstances is it advantageous for a taxpayer to make a nondeductible contribution to a traditional IRA rather than a contribution to a Roth IRA? Tax Payer Status Maximum AGI limit Starting phase out limit a. Married filing joint b. Single/Head of household
Answers
Answer and Explanation:
In the year 2018, ROTH IRA contribution limit is $5500 for people less than 50 years of age and $6500 if people are above 50 years of age.
These are the circumstances in the year 2018:
(a) ROTH IRA income limits for married filing jointly: Phase out starts at $189000 and ineligible at $199000.
(b) ROTH IRA income limits for Single filers: phase out starts at $120000 and ineligible at $135000.
If nothing changes except that producers sell more of a good or service when the price increases, we know this is an example of the law of
a. Increasing profit.
b. Supply.
c. Demand.
d. Opportunity cost.
e. Reduced real income.
Answers
Answer:
If nothing changes except that producers sell more of a good or service when the price increases, we know this is an example of the law of SUPPLY
Explanation:
The law of supply is simply termed as when there is an increase in quantity of goods also results into an increase in the price although every other factors must remain the same
Banner Publications was organized early in 2012 with authorization to issue 10,000 shares of $100 par value preferred stock and 1 million shares of $1 par value common stock. All of the preferred stock was issued at par, and 400,000 shares of common stock were sold for $15 per share. The preferred stock pays a 10 percent cumulative dividend. During the first five years of operations (2010 through 2014) the corporation earned a total of $4,100,000 and paid dividends of $.80 per share each year on the common stock. In 2015, however, the corporation reported a net loss of $1,250,000 and paid no dividends.Prepare the stockholder’s equity section of balance sheet at December 31, 2012.
Answers
Answer:10,000
Explanation:
In Government contracting, one criterion for cost allowability is that the contractor's costs must comply with Generally Accepted Accounting Principles (GAAP) and _________________.
a. ISO 9001 Principles
b. Government Cost Accounting Standards (CAS)
c. Lean Manufacturing Principles
d. Cost as an Independent Variable (CAIV) Principles
Answers
Answer:
b. Government Cost Accounting Standards (CAS)
Explanation:
The process of government contracting is usually a very legal activity that requires contractors to be well qualified so as to receive the government contracts. There are certain principles that are required to be met on cost allowability, the principles include the Generally Accepted Accounting Principles (GAAP) and the nineteen principles of Government Cost Accounting Standards (CAS). These two principles are closely inspected by the government to make sure that the contractors adhere to them. The correct answer is B.
Each of the following should trigger a review of the emergency plan, EXCEPT FOR:
A. Changes in operational resources or jurisdiction demographics.
B. Plan activation during an incident or exercise.
C. Hiring of new emergency management agency support staff.
D. Changes in laws, ordinances, or elected or appointed officials
Answers
Answer:
The correct answer is letter "C": Hiring of new emergency management agency support staff.
Explanation:
The hiring of new emergency management support staff is not an action that implies the review of the emergency plan since that can take place when there is no major activity in the nation that requires the stand of the authorities to face the problem. It could be done at any time with no hurry.
The data below relate to the month of April for Monroe, Inc., which uses a standard cost system and a two-variance analysis of factory overhead:
Actual direct labor hours used
16,500
Standard direct labor hours allowed
16,250
Actual total factory overhead
$53,200
Budgeted fixed factory overhead
$12,000
Budgeted activity in hours
16,000
Total overhead application rate per standard direct labor hour
$3.25
Variable overhead application rate per standard direct labor hour
$2.50
What was Monroe's production-volume variance for April?
a.
$187.50 favorable
b.
$187.50 unfavorable
c.
$437.50 favorable
d.
$437.50 unfavorable
Answers
Answer:
Fixed overhead absorption rate
= Budgeted fixed overhead
Budgeted activity level
= $12,000
16,000 hours
= $0.75 per hour
Production volume variance
= (Standard hours - Budgeted hours) x Fixed overhead rate
= (16,250 - 16,000) x $0.75
= $187.5(F)
The correct answer is A
Explanation:
First and foremost, we need to calculate fixed overhead absorption rate, which is the ratio of budgeted fixed overhead to budgeted hours. then, we will calculate the production volume variance, which is the difference between standard hours and budgeted hours multiplied by fixed overhead absorption rate.
Final answer:
Monroe, Inc. has a production-volume variance of $187.50 unfavorable for April. This variance is calculated by subtracting the applied fixed factory overhead based on the standard direct labor hours allowed from the budgeted fixed factory overhead. The negative result indicates less efficiency in production volume. Option B
Explanation:
To calculate the production-volume variance for Monroe, Inc., we assess the difference between the budgeted fixed factory overhead and the applied fixed factory overhead. The budgeted fixed factory overhead for April is given as $12,000. Since the total overhead application rate per standard direct labor hour is $3.25, and the fixed portion of this is the total rate minus the variable rate ($3.25 - $2.50), this gives us a fixed overhead rate of $0.75 per standard direct labor hour.
Next, we apply this fixed overhead rate to the standard direct labor hours allowed, which totals to $0.75 \* 16,250 hours = $12,187.50 as the applied fixed factory overhead for the production volume actually achieved.
The production-volume variance is then the difference between the budgeted and applied figures: $12,000 (Budgeted) - $12,187.50 (Applied) = -$187.50. This means that Monroe's production-volume variance for April is $187.50 unfavorable, as the company applied more fixed overhead than budgeted due to the production volume, indicating less efficiency.
Lucy Corporation purchased and used 129,000 board feet of lumber in production, at a total cost of $1,548,000. Original production had been budgeted for 22,000 units with a standard material quantity of 5.7 board feet per unit and a standard price of $12 per board foot. Actual production was 23.500 units The direct materials quantity vanance is a $63,000 favorable b. $59,400 unfavorable c. $63,000 unfavorable d. $59.400 favorable
Answers
Final answer:
The direct materials quantity variance for Lucy Corporation is $59,400 favorable since they used fewer materials than the standard for the actual production level.
Explanation:
The question asks for the calculation of the direct materials quantity variance for Lucy Corporation. This requires understanding standard quantities and prices versus actual figures. The standard quantity for the actual production level (23,500 units at 5.7 board feet each) would be 133,950 board feet. The difference between the standard quantity and the actual quantity used (129,000 board feet) represents a favorable variance if the standard is higher. The standard cost of the variance is calculated as the difference in quantity multiplied by the standard price per board foot.
In this case, the variance is (133,950 - 129,000) board feet × $12 per board foot, amounting to 4,950 board feet × $12 per board foot = $59,400. Since the company used less than the standard quantity, the variance is favorable.
You deposited ($1,000) in a savings account that pays 8 percent interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to the Roshy Mountains to become a ski instructor rather than continue in school, so you close out your account. How much money will you receive? (Round to the nearest whole dollar
Answers
Answer:
Present value (PV) = $1,000
Interest rate (r) =8% = 0.08
Number of years (n) = 18 months = 1.5 years
No of compounding periods in a year = 4
Future value (FV) = ?
FV = PV(1 + r/m)nm
FV = $1,000(1 + 0.08/4)1.5x4
FV = $1,000(1 + 0.02)6
FV = $1,000 x 1.1262
FV = $1,126
Explanation:
The amount to be received in 18 months is $1,126. This is obtained by compounding the present value at 8% compounded quarterly for 18 months. The formula to be applied is the formula for future value of a lump sum(single investment).
Tickets for the historical review of ballroom dancing at the Portsmouth Music Hall cost $42 for the main-floor seats and $25 for the balcony seats. Let m represent the number of tickets sold for the main-floor seats and let b represent the number of tickets sold for the balcony seats. What is the algebraic expression for each of the following amounts?
(a) The cost in dollars of all the main-floor seats that were sold
(b) The total number of seats that were sold for the performance
Answers
Answer:
(a) The cost in dollars of all the main-floor seats that were sold: 42m + 25b. (b) The total number of seats that were sold for the performance: m+b.
Explanation:
Its understood that 1 tickect is equal to 1 seat, therefore the number of seats = number of tickets regardless of the type of seat. With this assumption, the algebraic expressions can be done.
If your firm buys $1,000 worth of supplies on credit with terms 3/15 n60 and pays the bill on the 60thday after the purchase:
a. What is the approximate, or "nominal," cost of trade credit as an annual rate?
b. What is the exactcost of trade credit as an annual rate?
Answers
Answer:
Nominal Cost of Trade Credit = 25.09%
Exact Cost of Trade Credit = 28.03%
Explanation:
given data
buys worth = $1,000
terms = 3/15 n60
pays the bill = 60th day
to find out
Nominal Cost of Trade Credit and Exact Cost of Trade Credit
solution
we know here Discount % and time 60 day and discount period that is
Discount % = 3%
time for Payment = 60 days
and Discount Period = 15 days
so Nominal Cost of Trade Credit will be as
Nominal Cost of Trade Credit = Discount % ÷ (100 - Discount % ) × [ 365 ÷ (time for Payment - Discount Period) ] ..................1
put here value we get
Nominal Cost of Trade Credit = [tex]\frac{0.03}{1-0.03}[/tex] × [tex]\frac{365}{60-15}[/tex]
Nominal Cost of Trade Credit = 25.09%
and
Exact Cost of Trade Credit will be here as
Exact Cost of Trade Credit = (1+Discount % ÷ (100%-Discount %))^(365/(time for Payment - Discount Period) - 1 ..................2
put here value we get
Exact Cost of Trade Credit = [tex](\frac{1+0.03}{1-0.03})^{\frac{365}{60-15}} - 1[/tex]
Exact Cost of Trade Credit = 28.03%
Knaack Corporation is presently making part R20 that is used in one of its products. A total of 18,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity:
Per Unit
Direct materials.................................. $8.00
Direct labor........................................ $2.50
Variable overhead............................... $7.10
Supervisor's salary........................... ...$7.30
Depreciation of special equipment........ $8.20
Allocated general overhead.............. ....$3.60
An outside supplier has offered to produce and sell the part to the company for $27.70 each. If this offer is accepted, the supervisor's salary and all of the variable costs can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally.
Should management buy part R20 from the outside supplier rather than to continue making the part? What is the difference is cost between the make or buy options?
Answers
Answer:
It is more convenient to continue production.
Explanation:
Giving the following information:
Per Unit
Direct materials.................................. $8.00
Direct labor........................................ $2.50
Variable overhead............................... $7.10
Supervisor's salary........................... ...$7.30
Depreciation of special equipment........ $8.20
Allocated general overhead.............. ....$3.60
An outside supplier has offered to produce and sell the part to the company for $27.70 each.
The supervisor's salary and all of the variable costs can be avoided.
We need to determine if it is more convenient to buy the product or produced it in house.
First, we need to calculate the cost to produce it in house:
We will take into account the relevant costs (costs that changed with each decision).
Variable cost= direct material + direct labor + variable overhead
Variable cost= 8 + 2.5 + 7.1= $17.6
Fixed costs= 7.3
Total relevant cost= 17.6 + 7.3= $24.9
Buy:
Total relevant cost= 27.7
Cost difference= 27.7 - 24.9= $2.8
It is more convenient to continue production.
Nova Products has a 44-year maximum acceptable payback period. The firm is considering the purchase of a new machine and must choose between two alternatives.
The first machine requires an initial investment of $26 comma 00026,000 and generates annual after-tax cash inflows of $6 comma 0006,000 for each of the next 1010 years.
The second machine requires an initial investment of $29 comma 00029,000 and provides an annual cash inflow after taxes of $8 comma 0008,000 for 2828 years.
a. Determine the payback period for each machine.
b. Comment on the acceptability of the machines, assuming that they are independent projects.
c. Which machine should the firm accept? Why?
d. Do the machines in this problem illustrate any of the weaknesses of using payback?
Answers
Answer:
A determine the payback period for each.
Explanation:
The value of a dollar variesQuestion 1 options:A) inversely with the price of gold.B) directly with the price level.C) inversely with the price level.D) directly with the purchasing power of other major currencies.
Answers
Answer:
Option (D) is correct.
Explanation:
There is a change in the value of the dollar with the change in the value or purchasing power of the other nation's currency. This means that there is a direct or positive relationship between the value of the dollar and the value of the other nation's currency. It is known as the exchange rate. Exchange rate is the rate at which goods are being traded between the nations.