ompany X and company Z are planning to merge their business into one and are seeking regulatory approval. What is the most likely reasoning X

Answers

Answer 1

Answer: The newly created firms is able to take advantage of economies of scale.

Explanation:

A merger is an agreement whereby two companies come together and pool their resources together in order to form one company and achieve same organizational goals.

One main reason why companies merge together is in order to achieve economies of scale. This is the reduction in cost as a result of the expansion and increase in production level.


Related Questions

Bob writes a check to cash for $1000 to pay a bill from Acme. He then finds out that Acme breached the contract so he decides he will not pay them and puts a stop payment on the check. However, the check is stolen by Theron Thief (and Bob was not negligent) who then gives it to his landlord, Larry Landlord, who Theron already owes $1000. If Larry does not know about the theft or any problems with the instrument, what is the status of Larry:

Answers

Answer:

Holder in due course

Explanation:

A holder in due course arise when someone accepted the negotiable instrument for exchange in the value without any kind of reason. In this, there is a right for claim the value of an instrument that oppose to the orginator and the intermediate holders

So as per the given situation, Lary is holder in due case as he is holding the check in the good faith also he is not aware of the last theft

If your firm is a potential entrant thinking about entering an industry, you want the entry barriers to be _____.

Answers

Answer:

High

Explanation:

Entrants can be regarded as firms that are willing in entering a particular industry. As regards to market theory, a potential entry can become actual entry into a market on some condition such as when existing firms that are in the market have their earns above the Normal profit. It should be noted that If your firm is a potential entrant thinking about entering an industry, you want the entry barriers to be High

The beauty of an economic model comes from:______.
a. its ability to represent a complex reality without any simplification.
b. its ability to make clear predictions that are consistent with reality.
c. its simplicity in presenting the essential elements of an otherwise complex reality.
d. b and c.

Answers

Answer:

D

Explanation:

An economic model is a simplified abstraction of reality. An economic model aims to present economic reality in a simplified form. it also aims to make accurate prediction consistent with reality.

for example, the law of demand is an example of an economic model.

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

this economic model is true because rational human beings tend to purchase more of normal goods when the price is lower than when the price is higher.

Millington Materials is a leading supplier of building equipment, building products, materials, and timber for sale, with over 200 branches across the Mid-South. On January 1, 2021, management decided to change from the average inventory costing method to the FIFO inventory costing method at each of its outlets. The following table presents information concerning the change. The income tax rate for all years is 40%.

Income before Income Tax
FIFO Average Cost Difference
Before 2015 $35 million $28 million $7 million
2015 48 million 25 million 23 million
2016 30 million 29 million 1 million

Requied:
a. Prepare the journal entry to record the change in accounting principle.
b. Determine the net income to be reported in the 2016–2015 comparative income statements.

Answers

Answer:

A. Dr Inventory $30

Cr Income tax payable $12

Cr Retained earnings $18

B. 2016 Net income $18

2015 Net income $28.80

Explanation:

a. Preparation of the journal entry to record the change in accounting principle.

Dr Inventory $30

Cr Income tax payable $12

Cr Retained earnings $18

b. Calculation to Determine the net income to be reported in the 2016–2015 comparative income statements

Balance at Jan ,2015 $21.00 millions

[35 millions- (35 millions* 40%)]

NET INCOME $28.80 millions

Cash dividends ($4.20) millions

Balance At December 31,2015 $45.60 millions

NET INCOME $18 millions

Cash dividends ($4.20) millions

BALANCE AT DECEMBER 31,2016 $59.40 millions

Therefore the net income to be reported in the 2016–2015 comparative income statements will be:

2016 Net income $18

2015 Net income $28.80

The journal entry to record the change in accounting principle will be:

Debit Inventory $30 million

Credit Income tax $12 million

Credit Retained earnings $18 million

(To record error correction)

It should be noted that the income tax will be credited in the amount below:

= 40% × ($7 million + $23 million)

= 40% × $30 million.

= 0.4 × $30 million

= $12 million

The retained earnings will be:

= $30 million - $12 million

= $18 million

The net income to be reported in the 2016–2015 comparative income statements will be $18 million and $28.8 million.

The net income for 2016 will be:

= $30 million - $12 million

= $18 million

The net income for 2015 will be:

= $48 million - (40% × $48 million)

= $45 million - $19.2 million

= $25.8 million

Read related link on:

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Sunland Company sells office equipment on July 31, 2022, for $22,080 cash. The office equipment originally cost $72,560 and as of January 1, 2022, had accumulated depreciation of $38,910. Depreciation for the first 7 months of 2022 is $4,980.

Required:
Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment.

Answers

Answer:

Accumulated depreciation on Jan 1 , 2022 = $38,910

Depreciation for first 7 months of 2022 = $4,980

Accumulated depreciation on July 31 , 2022 = Accumulated depreciation on Jan 1 , 2022 + Depreciation for first 7 months of 2022 = 38,910 + 4,980 = $43,890

Sale price of equipment = $22,080

Book value of equipment on July 31, 2022 = Cost price - Accumulated depreciation = 72,560 - 43,890 = $28,670

Loss on disposal of equipment = Book value of equipment on July 31, 2022 - Sale price of equipment = 28,670 - 22,080 = $6,590

No. Account Titles and Explanation                Debit     Credit

(a)    Depreciation expense                               $4,980

            Accumulated depreciation- equipment             $4,980

(b)    Cash                                                            $22,080  

Accumulated depreciation - equipment           $43,890  

Loss on disposal of equipment                         $6,590

                   Equipment                                                     $72,560

Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative​ advantage, ______.

Answers

Answer:

If Mary and Tim specialize in the good in which they have a comparative​ advantage, ______.

Mary would specialize in making cakes while Tim would specialize in making pies.

Explanation:

a) Data and Calculations:

Mary's opportunity cost of making a cake = 2 pies

She can make additional 5 (10/2) cakes instead of making pies

This will increase her cakes to 25 a day (20 + 5)

Tim's opportunity cost of making a cake = 4 pies

She can make additional 40 pies (10 * 4) instead of making cakes

This will increase her pies to 60 pies a day (20 + 40)

When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.

The following information is available for Cubic Company before closing the accounts. After all closing entries are made, what will be the balance in the Retained earnings account

Answers

Answer: See explanation

Explanation:

Your question isn't complete but here are other information that I found online:

Net income = $112700

Retained earnings = $108000

Dividend = $40000

The balance in the Retained earnings account will be calculated as:

Retained earnings = $108000

Add: Net income = $112700

Less: Dividend = $40000

Balance of retained earnings = $180700

Creating a Budget
Before you can make a spending plan that works for your particular situation, you'll need to understand your spending priorities. What must you spend money on, and what items do you simply want? First, make sure you understand the following terms:
budget: a plan for saving and spending
expenditure: the amount of money spent
necessity: an item that a person must have, such as housing, clothing, or food
luxury: an item that offers physical comfort or enjoyment but is not necessary for life and health.
1. Classify each of the following expenditures as a necessity or a luxury. If any item can be considered either a necessity or a luxury, depending on the situation, classify it as either.
Expenditure Necessity Luxury Either
a. Auto insurance
b. Clothing for school
c. Concert tickets
d. Dinner for two at the newest
e. restaurant in town Groceries
f. Music downloads
g. Medical treatment for strep throat
h. Theme park tickets
i. New car
j. Rent
k. School lunches
I. School ski trip
m. Cell phone service
2. For those items that you indicated could be either necessities or luxuries, describe when you would consider them necessities and when you would view them as luxuries.
MAKING A BUDGET
3. Income First, write down your weekly income: $______.
4. Expenditures For one week, keep track of all of your expenditures. At the end of the week, put the totals in the table below.
Weekly Expenditure Current Amount
Clothing $
Debt repayment (monthly payment + 4) $
Entertainment $
Food (including groceries, meals
out, and snacks) $
Rent and utilities (monthly payment = 4) $
Transportation (own car, ridesharing, public
transportation, etc.) $
Personal care items $
Other $
Total Weekly Expenditures $
5. Subtract your total expenditures from your weekly income.
6. Revised budget
At the end of the week, did you have any money left? Or did you spend more than you earned? If you want to make better use of your money, take a look at how you're spending it and decide where you can trim expenditures. You may find that you could be spending your money on something you really want.
Weekly Expenditure New Budget Actual Spending
Clothing $ $
Debt repayment (monthly payment + 4) $ $
Entertainment $ $
Food (including groceries, meals out,
and snacks) $ $
Rent and utilities (monthly payment + 4) $ $
Transportation (own car, ridesharing,
public transportation, etc.) $ $
Personal care items $ $
Other $ $
Total Weekly Expenditures $ $
7. Using your revised budget as a guide, record your income and expenses for another week. How much money were you able to save?

Answers

Answer:

a. Auto insurance - Expenditure

b. Clothing for school - necessity

c. concert tickets - luxury

d. Dinner for two at the newest - luxury

e. Restaurant in town groceries - expenditure

f. music downloads - luxury

g. medical treatment for strep throat - necessity

h. Theme park tickets - luxury

i. New car - luxury

j. Rent - expenditure

K. school lunches - necessity

l. school ski trip - expenditure

m. Cell phone service - necessity

Explanation:

2. Necessity is anything without which survival of a person is not possible. Luxury is anything which adds value to the living standard of a person but survival without such thing is possible.

3. My weekly income is $200

4. Clothing $20

Debt repayment $50

entertainment $30

Food $45

Rent and utilites $25

transportation $10

Personal care items $5

Others $3

total weekly expenditure $188

5. $200 - $188 = $12

6. Yes i have $12 as saving at the end of the week.

Lafayette, Inc. was incorporated on January 1, 2014. Lafayette issued 15,000 shares of common stock and 800 shares of preferred stock on that date. The preferred stock is cumulative, $100 par, with an 12% dividend rate. Lafayette has not paid any dividends yet. In 2017, Lafayette had its first profitable year, and on November 1, 2017, Lafayette declared a total dividend of $44,000. What is the total amount that will be paid to common stockholders

Answers

Answer:

$5,600

Explanation:

Calculation to determine the total amount that will be paid to common stockholders?

Total amount paid to common stockholders=$44,000-[(800 (12%)($100)*4]

Total amount paid to common stockholders=$44,000-($9,600*4 )

Total amount paid to common stockholders=$44,000-$38,400

Total amount paid to common stockholders=$5,600

(2014-2017=4)

Therefore the total amount that will be paid to common stockholders is $5,600

Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume that Yankee has 220,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $440,000 at January 1, 2021. The following information pertains to Yankee during 2021:

Net income $240,000
Dividends declared and paid $72,000
Market price of common stock on 12/31/2016 $29/share

What amount would Matsui report in its year-end 2016 balance sheet for its investment in Yankee?
a. $1,608,000.
b. $1,368,000.
c. $1,329,600.
d. None of these answer choices is correct.

Answers

Answer: $1,852,320

Explanation:

First find out the proportion owned by Matsui.

= 74,800 shares / 220,000

= 34%

The investment at the end of the year is:

= Cost of investment + Shares of net income - Share of dividend

Share of income:

= Percentage ownership * Net income

= 34% * 240,000

= $81,600

Share of dividend:

= 34% * 72,000

= $24,480

Investment at end of year:

= 1,795,200 + 81,600 - 24,480

= $1,852,320

Name four commercial services which are useful to the manufacturer​

Answers

Answer:

hu

Explanation:

giyughhyyfrfjjtvvhi

Tim has a knee replacement. He has applied for a loan for this surgery; the loan has an annual interest rate of 9 percent. The artificial knee can function for 10 years and depreciates at a constant rate every year until the time of replacement. Fees for knee replacement surgery are expected to grow at 10 percent annually. What is the cost of this capital

Answers

That will more and likely be 10

Understand and explain the process of idea generation and validation

Answers

Answer:

Idea generation is the creative process or procedure that a company uses in order to figure out solutions to any number of difficult challenges. It involves coming up with many ideas in a group discussion, selecting the best idea or ideas, working to create a plan to implement the idea, and then actually taking that idea and putting it into practice. The idea can be tangible, something you can touch or see, or intangible, something symbolic or cultural.

Idea validation is the process of testing and validating your idea prior to launching your business name, tagline, product, service or website. This is like the research and development process big companies use to test product ideas before they’re released to the general public.

Idea validation can involve anything from information-gathering interviews to special landing pages on the web. The entire purpose is to expose the idea to your target audience before you build and release the final product.

A company purchased a marketable security for $10,000 on 3/3/2013. On 3/30/2013, the company prepared its financial statements and marked the security to its market value, which was $17,500. The security was sold on 4/30/2013 for $15,000. The company used the Trading Securities method to account for the security. The statutory tax rate is 35%. What was the effect of the sale of the security on Income Tax Payable on 4/30/2013

Answers

Answer:10,000

Explanation: i got it in my classkick

Sales $ 100,000 Operating expenses $ 94,000 Operating assets $ 40,000 Stockholder's equity $ 25,000 Cost of capital 10 % What is Sweet Dreams Company's return on investment (ROI)

Answers

Answer:

15%

Explanation:

Given that :

Operating expenses = $94000

Operating assets = $40,000

Sales = $100,000

Return on investment = profit / operating asset

Profit = sales - operating expenses

Profit = (100,000 - 94000) = $6000

Return on investment = $6000 / $40000 = 0.15

= 0.15 * 100% = 15%

Auerbach Inc. issued 8% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $225 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 10%. Assuming that Auerbach issued the bonds for $255,366,000, what would the company report for its net bond liability balance at December 31, 2021, rounded up to the nearest thousand?

Answers

Answer:

Auerbach Inc.

For its net bond liability balance at December 31, 2021, the company would report:

= $253,482 (in thousands).

Explanation:

a) Data and Calculations:

Face value of bonds = $225,000,000

Price of bonds =           $255,366,000

Bonds premiums =         $30,366,000 ($255,366,000 - $225,000,000)

Maturity date = September 30, 2031

Maturity period = 10 years

Coupon interest rate = 8%

Effective interest rate = 10%

Payment of interest = Semiannually on March 31 and September 30:

December 31, 2021:

Interest expense = $6,384,150 ($255,366,000 * 10% * 3/12)

Cash payment =    $4,500,000 ($225,000,000 * 8% * 3/12)

Premium amortization = $1,884,150

Fair value of bonds payable = $253,481,850 ($255,366,000 - $1,884,150)

Listed below are several transactions that typically produce either an increase or a decrease in cash. Indicate by letter whether the cash effect of each transaction is reported on a statement of cash flows as an operating (O), investing (I), or financing (F) activity.

a. Sale of Common Stock.
b. Sale of Land
c. Purchase of Treasury Stock
d. Merchandise Sales
e. Issuance of a long-term note payable
f. Purchase of merchandise
g. Repayment of note payable
h. Employee salaries
i. Sale of equipment at a gain.
j. Issuance of bonds

Answers

Answer:

a. Sale of Common Stock.

Classification: Financing activity

b. Sale of Land

Classification: Investing activity

c. Purchase of Treasury Stock

Classification: Financing activity

d. Merchandise Sales

Classification: Operating  activity

e. Issuance of a long-term note payable

Classification: Financing activity

f. Purchase of merchandise

Classification: Operating  activity

g. Repayment of note payable

Classification:

Financing activity

h. Employee salaries

Classification: Operating  activity

i. Sale of equipment at a gain.

Classification: Investing activity

j. Issuance of bonds

Classification: Operating  activity

The following data relate to direct labor costs for the current period: Standard costs 7,500 hours at $11.70 Actual costs 6,400 hours at $10.50 What is the direct labor time variance

Answers

Answer:

Direct labor time (efficiency) variance= $12,870 favorable

Explanation:

Giving the following information:

Standard costs 7,500 hours at $11.70

Actual costs 6,400 hours

To calculate the direct labor time (efficiency) variance, we need to use the following formula:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (7,500 - 6,400)*11.7

Direct labor time (efficiency) variance= $12,870 favorable

The accountant for Fazzi Corp. was preparing a bank reconciliation as of April 30, 2017. The following items were identified: Fazzi's book balance $46,200 Outstanding checks 1,100 Interest earned on checking account 50 Customer's NSF check returned by the bank 500 In addition, Fazzi incorrectly recorded a customer's check in cash receipts as $150; the bank recorded the amount correctly as $510. What amount will Fazzi report as its adjusted cash balance at April 30, 2017

Answers

Answer:

See below

Explanation:

With regards to the above information, the adjusted cash balance at April 30, 2017 is computed as shown below;

Book balance

$46,200

Add:

Interest earned on checking account

$50

Less:

Customer's NSF check returned by the bank

($500)

Add:

Error in recording customer's check

($510 - $150)

$360

Add:

Outstanding checks

$1,100

Adjusted cash book balance

$47,210

Excellent Company has provided the following operating information for one of its divisions: Sales $100,000 Variable expenses $55,000 Contribution margin $45,000 Direct fixed expenses $35,000 Common fixed expenses allocated in proportion to sales amounts to $16,000. Based on the provided information, calculate the division's segment margin.

Answers

Answer:

See below

Explanation:

Given the above information, segment margin is computed as shown below.

Segment margin = Net sales - Cost of sales - Fixed cost

Given that;

Net sales = $100,000

Cost of sales = $55,000

Fixed cost = $35,000

Then,

Segment margin = $100,000 - $55,000 - $35,000

Segment margin = $10,000

Therefore, the division's segment margin is $10,000

A newly independent Eastern European nation wants to adopt a floating exchange rate system in order to restore monetary control to its government. Using the monetary autonomy argument, how do this country's ministers justify establishing this system? Trade deficits are determined by the balance between savings and investment in a country, not by the external value of its currency. Unpredictability of exchange rate movements makes business planning difficult. Speculation in exchange rates dampens the growth of international trade and investment. Each country should be allowed to choose its own inflation rate. Variable exchange rates are more receptive to a trade balance.

Answers

Answer:

Each country should be allowed and given the possibility to set its own inflation rate.

Explanation:

The monetary autonomy argument states that a country's central bank should be free to influence its own money supply and internal economic conditions, and therefore a fixed exchange rate should be ineffectual and inefficient.

The proponents said that each country should be entitled to set its own inflation rate. Therefore, Each country should be given the free will to chose and decide its own inflation rate.

Sysco Corporation, formed in 1969, is the largest global distributor of food service products, serving over 500,000 restaurants, hotels, schools, hospitals, and other institutions. The following summarized transactions are typical of those that occurred in a recent year (dollars are in millions). a. Purchased buildings costing $450 and equipment costing $234 for cash.
b. Borrowed $119 from a bank, signing a short-term note.
c. Provided $54,171 in service to customers during the year, with $23,358 on account and the rest received in cash.
d. Paid $129,574 cash on accounts payable.
e. Purchased $41,983 of inventory on account.
f. Paid payroll, $5,240 during the year.
g. Received $19,043 on account paid by customers.
h. Purchased and used fuel of $1,600 in delivery vehicles during the year (paid for in cash).
i. Declared $598 in dividends at the end of the year to be paid the following year.
j. Incurred $126 in utility usage during the year; paid $93 in cash and owed the rest on account.
Required:
For each of the transactions, prepare journal entries.

Answers

Answer:

Sysco Corporation

Journal Entries:

a. Debit Buildings $450

Debit Equipment $234

Credit Cash $684

To record the purchase of long-term assets for cash.

b. Debit Cash $119

Credit Short-term Note Payable $119

To record the funds borrowed from a bank.

c. Debit Accounts receivable $23,358

Debit Cash $30,813

Credit Service Revenue $54,171

To record the provision of service to customers on account and for cash.

d. Debit Accounts Payable $129,574

Credit Cash $129,574

To record the payment on account.

e. Debit Inventory $41,983

Credit Accounts Payable $41,983

To record the purchase of merchandise on account.

f. Debit Salaries Expense $5,240

Credit Cash $5,240

To record the payment of payroll during the year.

g. Debit Cash $19,043

Credit Accounts receivable $19,043

To record the cash received from customers on account.

h. Debit Delivery Vehicles Expense $1,600

Credit Cash $1,600

To record the purchase of fuel for the delivery vehicles.

i. Debit Dividend $598

Credit Dividends Payable $598

To record the declaration of dividend.

j. Debit Utilities Expense $126

Credit Cash $93

Credit Utilities Payable $33

To record the Utilities expenses incurred during the year.

Explanation:

Transactions Analysis:

a. Buildings $450  Equipment $234  Cash $684

b. Cash $119 Short-term Note Payable $119

c. Accounts receivable $23,358 Cash $30,813 Service Revenue $54,171

d. Accounts Payable $129,574 Cash $129,574

e. Inventory $41,983 Accounts Payable $41,983

f. Salaries Expense $5,240 Cash $5,240

g. Cash $19,043 Accounts receivable $19,043

h. Delivery Vehicles Expense $1,600 Cash $1,600

i. Dividend $598 Dividends Payable $598

j. Utilities Expense $126 Cash $93 Utilities Payable $33

sykes company has sales revenue of $585,700. Cost of goods sold before adjustment is $335,900. The company's actual manufacturing overhead is $92,000, while allocated manufacturing overhead is $104,400. What is the actual gross profit

Answers

Answer:

Actual gross profit $262,200

Explanation:

The computation of the actual gross profit is as follows;

Allocated manufacturing overhead

$104,400

Actual manufacturing overhead

$92,000

Over applied manufacturing overhead

$12,400

Unadjusted cost of goods sold

$335,900

Less:

Over applied manufacturing overhead

($12,400)

Adjusted cost of goods sold

$323,500

Sales revenue

$585,700

Less:

Adjusted cost of goods sold

($323,500)

Actual gross profit

$262,200

Waterway Industries Recorded operating data for its Cheap division for the year. Waterway requires its return to be 10%. Sales $1600000 Controllable margin 88000 Total average assets 4400000 Fixed costs 100000 What is the ROI for the year

Answers

Answer:

See below

Explanation:

Given the above information, first we need to get the value of contribution margin , which is computed as;

Controllable margin = Contribution margin - Total direct fixed cost

$88,000 = Contribution margin - $100,000

Contribution margin = $88,000 + $100,000

Contribution margin = $188,000

Also,

Net income = Contribution margin - Total fixed expense

Net income = $188,000 - $100,000

Net income = $88,000

Return on investment = Net income ÷ Average operating assets

Return on investment = $88,000 ÷ $4,400,000

Return on investment = 2%

Therefore, the ROI for the year is 2%

cutter enterprises purchased equipment for $75,000 on january 1, 2021. the equipment is expected to have a five-year life and a residual value of $4,200. using the double-declining-balance method, depreciation for 2021 and the book value at december 31, 2021, would be: book

Answers

Answer:

Double Declining Depreciation rate = 1/5*2

Double Declining Depreciation rate = 40%

Double Declining Depreciation for 2021 = $75,000*40%

Double Declining Depreciation for 2021 = $30,000

Book value at December 31, 2021 = $75,000 - $30,000

Book value at December 31, 2021 = $45,000

Determine the internal rate of return for a project that costs $177,000 and would yield after-tax cash flows of $21,000 per year for the first 5 years, $29,000 per year for the next 5 years, and $42,000 per year for the following 5 years.

Answers

Answer:

12.60 %

Explanation:

Using the CF function of a financial calculator the  internal rate of return will be calculated as follows :

- $177,000 CF 0

$21,000 CF 1

5 shift Nj

$29,000 CF 2

5 shift Nj

$42,000 CF 3

5 shift Nj

Then

Shift IRR = 12.60 %

therefore,

the internal rate of return for a project is 12.60 %

Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020, 11,250 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.

Cost Element Standard (per unit) Actual

Direct materials 8 yards at $4.40 per yard $375,575 for 90,500 yards ($4.15 per yard)
Direct labor 1.2 hours at $13.40 per hour $200,925 for 14,250 hours ($14.10 per hour)
Overhead 1.2 hours at $6.10 per hour (fixed $3.50; variable $2.60) $49,000 fixed overhead $37,000 variable overhead

Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400.
Required:
Compute the total, price, and quantity variances for (1) materials and (2) labor.

Answers

Answer:

Results are below.

Explanation:

To calculate the total, price, and quantity variance for direct material, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (4.4 - 4.15)*90,500

Direct material price variance= $22,625 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (8*11,250 - 90,500)*4.4

Direct material quantity variance= $2,200 unfavorable

Total direct material variance= 22,625 - 2,200= $20,425 favorable

To calculate the total, rate, and efficiency variance for direct labor, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (1.2*11,250 - 14,250)*13.4

Direct labor time (efficiency) variance= $10,050 unfavorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (13.4 - 14.1)*14,250

Direct labor rate variance= $9,975 unfavorable

Total direct labor variance= -10,050 - 9,975= $20,025 unfavorable

Rerun Manufacturing Company is in the process of preparing its 2020 budget and is anticipating the following changes: 30% increase in the number of units sold. 25% increase in the direct material unit cost. 20% increase in the direct labor cost per unit. 12% increase in the manufacturing overhead cost per unit. 20% increase in the sales price. 6% increase in the administrative expenses.

Answers

Answer:

$403,485

Explanation:

The computation is shown below;

Composition of direct material, direct labor and factory overhead in the ratio of 3:2:1

So,  

Direct Materials = $333,000 × 3 ÷ 6 =$166,500

Direct Labor = $333,000 × 2 ÷ 6 = $111,000

Factory Overhead = $333,000 × 1 ÷ 6 = $55,500

Now the Revised Cost of Goods Sold for the year 2020 is

Direct Materials = $166,500 × 125% = $208,125

Direct Labor = $111,000 × 120% = $133,200

Factory Overhead = $55,500 × 112% = $62,160

finally  the estimated cost of goods sold for the year 2020 is

= $208,125 + $133,200 + $62,160

= $403,485

At the beginning of 2018, Hold Steady Company had total assets of $520,000 and total liabilitiesof $250,000. Answer each of the following questions.

a. If total assets increased $60,000 and stockholders' equity decreased $90,000 during theyear, determine the amount of total liabilities at the end of the year.
b. During the year, total liabilities decreased $75,000 and stockholders' equity increased$50,000. Compute the amount of total assets at the end of the year.

Answers

Answer:

a. $400,000

b. $495,000

Explanation:

Assets = Equity + Liabilities

520,000 = Equity + 250,000

Equity = 520,000 - 250,000

= $270,000

a. Assets increased by $60,000. This would be:

= 520,000 + 60,000

= $580,000

Equity decreased by $90,000:

= 270,000 - 90,000

= $180,000

Liabilities = Assets - Equity

= 580,000 - 180,000

= $400,000

b. Total liabilities decreased $75,000:

= 250,000 - 75,000

= $175,000

Equity increased by $50,000:

= 270,000 + 50,000

= $320,000

Assets = Equity + Liabilities

= 175,000 + 320,000

= $495,000

A company has a Deferred Tax Liability of $35,000. Now, the government has just changed the statutory tax rate from 35% to 30% effective immediately. What is the correct journal entry to record the impact of this tax rate change

Answers

Answer and Explanation:

The correct journal entry to record the impact of this tax rate change is shown Below:

Income Tax Expense $5,000

     To Deferred Tax Assets $5,000

(being the income tax expense is recorded)

here the income tax expense is debited as it increased the expense and credited the deferred tax assets

So, the same should be considered

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