During the previous year, Yvo Corp. installed a production assembly line to manufacture furniture. In the current year, Yvo purchased a new machine and rearranged the assembly line to install this machine. The rearrangement did not increase the estimated useful life of the assembly line, but it did result in significantly more efficient production. The following expenditures were incurred in connection with this project:Machine $75,000Labor to install machine 14,000Parts added in rearranging the assembly line toprovide future benefits 40,000Labor and overhead to rearrange the assembly line 18,000What amount of the above expenditures should be capitalized in the current year?A. $147,000B. $107,000C. $89,000D. $75,000

Answers

Answer 1
Answer:

Answer:

A. $147,000

Explanation:

All cost incurrend in the installation of the assembly line, and their put to use to meet the company demand will be capitalized

the machine cost

the labor to install the machine

the parts added to the assembly line

rearrange of the assembly line

All those cost were incurred to leave the assembly line ready to use, are associate with the long-term asset so it can be capitalized through it.

75,000 + 14,000 + 40,000 + 18,000 = 147,000


Related Questions

Suppose that Tucker Industries has annual sales of $6.60 million, cost of goods sold of $2.94 million, average inventories of $1,205,000, and average accounts receivable of $660,000. Assuming that all of Tucker's sales are on credit, what will be the firm's operating cycle? (Round your answer to 2 decimal places.)
endrik is in charge of his company’s subsidiary in Beijing. He recently received a large bonus check because the subsidiary had exceeded sales expectations by 25 percent. What aspect of organizational architecture did Kendrik benefit from? Multiple Choice processes incentives forecasts norms
USE THIS INFORMATION FOR THE NEXT THREE QUESTIONS. On Jan. 1st Sally buys a computer with her credit card for $500. This transaction posts to her credit card account on Jan. 3rd. On Jan. 31st, Sally's monthly credit card cycle closes (with this being the only purchase) and she receives her bill in the mail on Feb. 5th. She is required to pay her bill by Feb. 25th. She mails her $500 check on Feb. 23rd, it is received by the credit card company on Feb. 24th and the money is withdrawn from her account on Feb. 27th. What is Sally's "credit card float" on this transaction
Internal rate of return method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $149,630 and annual net cash flows of $45,000 for each of the six years of its useful life. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the internal rate of return for the proposal.
What was the decision of the Supreme Court in kelo v.city of New London

A stock is selling for $41.60. The strike price on a call, maturing in 6 months, is $45. The possible stock prices at the end of 6 months are $35.00 and $49.00. Interest rates are 5.0%. Given an underpriced option, what are the short sale proceeds in an arbitrage strategy

Answers

Answer:

Possible outcome of stock price at end of 6 months (0.5 years)

Outcome 1:

Stock price = 35

Strike price = 45

Payoff call = max{ST - K,0} = max{35-45,0} = 0

Present value =

PV = 0/(1+5%)^0.5 = 0

Outcome 2:

Stock price = 49

Strike price = 45

Payoff call = max{ST - K,0} = max{49-45,0} = 4

Present value =

PV = 4/(1+5%)^0.5 = 3.903

Probability of both outcomes = 0.5

Value of call option = 0.5*0 + 0.5*3.903 = 1.95

Short sale arbitrage opportunity:

Short the stock and buy a call option. Invest the proceeds at 5% for 6 months:

Short stock = +41.6

long call = -1.95

Proceeds = 41.6 - 1.95 = 39.65

Amount after 6 months = 39.65*(1+5%)^0.5 = 40.629

Case 1:

Stock price = 35

Payoff from long call = 0

Buy the stock at market price and close the short stock position = -35

Total payoff = 40.629 - 35 = 5.629

Case 2:

Stock price = 49

Payoff from long call = 49 - 45 = 4

Buy the stock from market price and close the short stock position = -49

Total payoff = 40.629 + 4 - 49 = -4.3708

Present value of payoff from both cases = (0.5*5.629 + 0.5*(-4.3708))/(1+5%)^0.5

= 1.2581/1.0246 = 1.2277

Arbitrage payoff = 1.2277

Answer:

The short sale proceeds in an arbitrage strategy is 1.2277

Explanation:

From the question given,

The  Possible outcome of stock price at end of 6 months (0.5 years)

The Outcome  is:

The Stock price = 35

The Strike price = 45

The Payoff call = max(ST - K,0) = max(35-45,0) = 0

The Present value = PV = 0/(1+5%)^0.5 = 0

The  possible Outcome 2:

The Stock price = 49

The Strike price = 45

The Payoff call = max{ST - K,0} = max{49-45,0} = 4

The Present value =

PV = 4/(1+5%)^0.5 = 3.903

Then,

The Probability of both outcomes = 0.5

Value of call option = 0.5*0 + 0.5 x 3.903 = 1.95

Therefore, the Short sale arbitrage opportunity is:

The Short the stock and buy a call option.

Invest the proceeds at 5% for 6 months:

Short stock = +41.6

long call = -1.95

Proceeds = 41.6 - 1.95 = 39.65

Amount after 6 months = 39.65*(1+5%)^0.5 = 40.629

The Case 1:

Stock price = 35

Payoff from long call = 0

Buy the stock at market price and close the short stock position = -35

The Total payoff = 40.629 - 35 = 5.629

For Case 2:

Stock price = 49

Payoff from long call = 49 - 45 = 4

Buy the stock from market price and close the short stock position = -49

Total payoff = 40.629 + 4 - 49 = -4.3708

The Present value of payoff from both cases = (0.5*5.629 + 0.5*(-4.3708))/(1+5%)^0.5

= 1.2581/1.0246 = 1.2277

Then the Arbitrage payoff = 1.2277

What is the future value of an annuity due that pays $550 per year for 18 years? Use an annual interest rate of 8.00%.

Answers

Answer:

$22,245.44

Explanation:

For computing the future value we need to apply the future value which is to be shown in the attachment below:

Provided that,  

Present value = $0

Rate of interest = 8%

NPER = 18 years

PMT = $550

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after  applying the above formula, the future value is $22,245.44

Which of these statements regarding project crashing is true? Crashing is not possible unless there are multiple critical paths.
Activities not on the critical path cannot become critical after crashing.
Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.
Crashing a project often reduces the time it takes for lengthy or complex, but noncritical activities.

Answers

Answer:

The correct answer is letter "A": Crashing is not possible unless there are multiple critical paths.

Explanation:

Project crashing is a technique used to reduce the duration of a project to the least amount of extra cost by decreasing one or more critical activities. All of this is usually arranged in multiple entry charts where each critical activity receives the name of "critical path". It is imperative to have several critical paths so the crashing can be the most effective possible.

If both fixed expenses and the selling price per unit increase while variable costs per unit are​ unchanged, which of the following statements is true​? A. Breakeven point in units could​ increase, decrease, or remain the same. B. Breakeven point in units remains unchanged. C. Breakeven point in units decreases. D. Breakeven point in units increases.

Answers

Answer:

A

Explanation:

the sales price increase and because the variable cost are the same the contribution margin will increase, which lead to think the BEP is lower.

But, because the fixed cost also increase we cannot determinate where the new BEP Will be higher or lower. The fixed cost could increase so much that nulifies the increase in the contribution margin or even be higher enought that the BEP goes higher.

So Option A is the only true statment.

The following information describes a​ company's usage of direct labor in a recent​ period: Actual direct labor hours used 40 comma 000 Actual rate per hour $ 12.00 Standard rate per hour $ 11.25 Standard hours for units produced 27 comma 500 How much is the direct labor efficiency​ variance? A. $ 150 comma 000 favorable B. $ 150 comma 000 unfavorable C. $ 140 comma 625 unfavorable D. $ 140 comma 625 favorable

Answers

Answer:

C. $ 140 comma 625 unfavorable

Explanation:

The formula to compute the direct labor efficiency variance is shown below:

= Standard labor rate × (Standard hours for actual output - Actual hours)

where,  

Standard labor rate is $11.25

Standard hours for actual output is 27,500

And, actual hour is 40,000

Now put these values to the above formula  

So, the value would equal to      

= $11.25 × (27,500 hours - 40,000 hours)

= $140,625 unfavorable

Since actual hours is more than the standard hours so there is a unfavorable variance

The conclusion of a response message should a. include familiar expressions such as "If I may be of further assistance, please don't hesitate to call me."
b. provide specifics if further action is required.
c. omit the sender's name to avoid legal liability.
d. avoid repeating the information provided or referring to its use.

Answers

Answer: b. provide specifics if further action is required.

Explanation:

In a response message, one must be cordial and seek to promote GOODWILL with a customer. This can be done by simply referring to any provided information, providing specifics if any further action is required and including the sender's full contact information. Naturally there must also be a tone indicating a willingness to help but not with such cliché phrases such as, " Call me if you need any help". Such responses do not fit well in well written conclusions.

Other Questions