BUSINESS COLLEGE

At the beginning of a year, a company predicts total direct materials costs of $1,010,000 and total overhead costs of $1,270,000. If the company uses direct materials costs as its activity base to allocate overhead, what is the predetermined overhead rate it should use during the year?

Answers

Answer 1

Answer:

Answer:

1.267 = Overhead Rate

Explanation:

As general approach, the manufacturing rate, along with any rate is done by dividing the cost by a cost driver.

$(Cost\:Of\: Manufacturing\: Overhead)/(Cost\: Driver)= $Overhead \:Rate$

In this case teh cost is the manufacturing overhead and the cost driver the direct materials cost:

$(1,270,000)/(1,010,000)= $Overhead Rate$

Using Direct Materials cost, the rate would be:

$1.257425743= $Overhead Rate$

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Pelican, Inc. had revenues of $395,000, expenses of $155,000, and dividends of $54,000 during the current year. Based on the given information, which of the following statements is true?a. Net income for the current year totaled $186,000. b. Total retained earnings decreased by $186,000 during the current year. c. Total retained earnings increased by $240,000 during the current year. d. Net income for the current year totaled $240,000
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Shaan and Anita currently insure their cars with separate companies, paying $850 and $675 a year. If they insure both cars with the same company, they would save 10 percent on their annual premiums. What would be the future value of the annual savings over 8 years based on an annual interest rate of 8 percent

Answers

Answer: $1,622.08

Explanation:

Currently both Shaan and Anita are cumulatively paying;

= 850 + 675

= $1,525

Their savings are;

= 1,525 * 10%

= $152.50

As this saving is fixed, it is an annuity. The future value over 8 years at 8% is;

Future Value of Annuity = Annuity * Future value annuity factor, 8 years, 8%

= 152.50 * 10.6366

= 1,622.0815‬

= $1,622.08

If the marginal propensity to consume is 0.8, by how much will GDP increase after government spending increases by $200

Answers

Answer:

If disposable income increases by $5 billion and consumer spending ... spending by $100 billion and the marginal propensity to consume is 0.8. ... Suppose investment spending increases by $50 billion, and as a result real GDP increases by $200 billion. ... deliberate changes in taxation and/or government spending.

Explanation:

Which of the following statements are inconsistent with the efficient market hypothesis?a. The average annual return on stocks is greater than zero. b. Stocks that outperform the index in March always underperform it in April. c. Half of fund managers are able to beat their relevant index each year, before fees. d. Stocks that outperform the index in March always outperform it in April.

Answers

Answer:

b. Stocks that outperform the index in March always underperform it in April.

d. Stocks that outperform the index in March always outperform it in April.

Explanation:

The Efficient market hypothesis states that in an efficient market, all the available information in the market are reflected in the prices of the stocks being traded. As such, all stock are fairly priced.

Stocks that perform in a certain way in March and then in another way in April are violations of the hypothesis. This is because if indeed the market was efficient, the prices would adjust to reflect the different performances by month such that there would be no more fluctuations.

Review the liabilities section of the balance sheet for Rings and Things. What problem can you identify with the payroll information, particularly as it relates to how much the one employee gets paid? What solution would you offer Janet and Omar?

Answers

Final answer:

The question asks to identify a problem in the liabilities section of a balance sheet, specifically in the payroll information, and suggest a solution. Possible issues could be inaccurate payroll calculations or inconsistencies between records. A possible solution could be auditing the payroll and implementing regular checks.

Explanation:

The question asks you to review the liabilities section of the balance sheet for a company named Rings and Things with a focus on the payroll information. It's important to note that without specific details from the balance sheet and payroll information, a precise issue can't be identified. However, typical problems in this area could include inaccurate payroll calculations or discrepancies between the balance sheet and payroll records.

A solution to these issues could involve auditing the payroll procedures to identify and rectify any errors or inconsistencies. Furthermore, regular checks and audits could be implemented to prevent these types of issues from occurring in the future. It’s fundamental that Janet and Omar ensure all records are meticulous and accurate to maintain a healthy balance sheet.

Learn more about Balance Sheet and Payroll here:

brainly.com/question/36088100

#SPJ3

Answer:

Explanation:

Most of the liability costs are coming from payroll, the individual salesperson. This employee only worked for 20 hours during April, and yet still makes an income of $1000 dollars. This means they have an hourly rate of $50 an hour, which is way more than the standard employee should be making. I would recommend Janet and Omar to decrease the hourly rate to something more standard, like minimum wage. This would decrease their liability costs by more than 50% because California's minimum wage rate is only about $12-13.

A single stock futures contract on a nondividend-paying stock with current price $180 has a maturity of one year. a. If the T-bill rate is 4.0%, what should the futures price be? (Round your answer to 2 decimal places.) Futures price $

b. What should the futures price be if the T-bill rate is still 4.0% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price $

c. What if the interest rate is 6.5% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price $

Answers

Answer:

a. $187.20.

b. $202.48.

c. $217.43.

Explanation:

Please find the below for detailed explanations and calculations:

We have the formula for determining the future price of the non-dividend-paying stock as below:

Future price = Spot price x (1+ annual risk free rate )n; which n = number of year(s) to maturity.

Thus, apply the general formula above, we have the below calculations:

a. Future price = 180 x (1+4%)^1 = $187.20;

b. Future price = 180 x ( 1+4%)^3 = $202.48;

c. Future price = 180 x (1+6.5%)^3 = $217.43.

A company had the following information taken from various accounts at the end of the year: Sales discounts $ 41,000
Deferred revenues $ 32,000
Total revenues $ 459,000
Purchase discounts $ 15,000
Sales allowances $ 35,000
Accounts receivable $ 205,000
What was the company's net revenues for the year?