BUSINESS COLLEGE

Faux Trees Company produces artificial Christmas trees. A local shopping mall recently made a special order offer; the shopping mall would like to purchase 230 extra-large white trees. Faux Trees Company is currently producing and selling 20,000 trees; the company has the excess capacity to handle this special order. The shopping mall has offered to pay $160 for each tree. An accountant at Faux Trees Company provides an estimate of the unit product cost as follows This special order would require an investment of $5000 for the molds required for the extra-large trees. These molds would have no other purpose and would have no salvage value. The special order trees would also have an additional variable cost of $6.03 per unit associated with having a white tree. This special order would not have any effect on the company's other sales. If the special order is accepted, the company's operating income would increase (decrease) by

Answers

Answer 1
Answer:

Answer:

operating income increase by 30,413 dollars

Explanation:

We will calculate the income as usuall revenues - expense

We aren't given with other manufacturing cost so we assume this are all the cost involved in the order:

Special Order Revenue: 230 trees at $160 each: 36,800

Special Order Cost:

mold cost:                                                 5,000

variable cost: 230 trees x 6.03 dollars = 1,387

Total cost for the order:                            6,387

Financial outcome:     36,800 - 6,387 =  30,413
Answer 2
Answer:

Final answer:

The special order from the local shopping mall would increase the Faux Trees Company's operating income by $22,413.10.

Explanation:

To determine the change in the operating income due to this special order, we must first calculate the total revenue and total costs associated with the order. The total revenue can be calculated as the product of the offered price per tree ($160) and the number of trees ordered (230), which equals $36,800.

The total cost is the sum of the initial investment for the molds ($5000), plus the variable cost per tree ($6.03) multiplied by the number of trees (230), which equals $6386.90.

So, the change in operating income, or profit, due to this special order can be found by subtracting the total costs ($6386.90 + $5000) from the total revenue ($36800). In this case, the special order would increase the company's operating income by $22,413.10.

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Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by direct labor hours, with 150,000 hours for the Standard and 50,000 hours for the Extreme.After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $200,000 of overhead, with 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product.It was also estimated that the setup cost pool would have $100,000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme.A. What is the overhead rate per product under Traditional costing?What is the overhead rate under Absorption Costing for:B. The machine pool overhead rateC. The setup pool overhead rate
an employee of a company is being paid to assist in the sale of stock options to the company's employees and will recieve a bonus based on sales results. this company employee
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The skill you’re focusing on this week is:

Answers

could you explain some more please

Hartley Company produces two products, Flower and Planter. Flower is a high-volume item totaling 20000 units annually. Planter is a low-volume iterm totaling only 6000 units per year. Flower requires 1 hour or are 2000 completion, while each unit of Planter requires 2 hours. Therefore, total annual direct labor hours are 32000 12000). Expected annual manufacturing overhead costs are $960000. Hartey uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of:________. a. need more information to compute.
b. $60.
c. $30.
d. $36.92

Answers

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Estimated manufacturing overhead= 960,000

Estimated number of hours= 32,000

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 960,000/32,000= $30 per direct labor hour

Now, we can allocate to each unit of Planter:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 30*2= $60

Leslie Hoyt is 35 years old. She wants to purchase a $250,000, 5-year life insurance policy. The pre- mium per $1,000 is $2.99. What is her annual premium?

Answers

Answer: 35.88

Explanation:

I’m not sure if this is right I just did 2.99 x12

_____ occurs when a creditor obtains a court order that directs an employer to set aside a portion of an employee's wages to pay a debt owed to the creditor.

Answers

Answer:

Garnishment

Explanation:

Garnishment refers to an order in which a person directs a third party with respect to seize assets  i.e salary earned from employment or money in a bank account so that the unpaid debt amount could be settled out

In the given case, the same situation occurs so this is a case of garnishment and the same is to be considered

Fetzer Company declared a $0.55 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 8,000 shares in treasury stock. The journal entry to record the payment of the dividend is:

Answers

Answer:

Please see journals below

Explanation:

Retained earnings Dr $104,000

Common dividend payable Cr $104,000

Common dividend payable Dr $104,000

Cash Cr. $104,000

Retained earnings Dr $100,100

Common dividends payable Cr $100,100

Common dividends payable Dr $100,100

Cash Cr $100,100

Retained earnings Dr $110,000

Common dividends payable Cr $110,000

Working

Dividends payable

= 190,000 × $0.55

= $104,000

Common dividend payable

= $0.55 × (190,000 shares - 8,000 shares)

= $100,100

The Bureau of Labor Statistics announced that in January 2013, of all adult Americans, 143,322,000 were employed, 12,332,000 were unemployed, and 89,008,000 were not in the labor force. Use this information to calculate: a. the adult population b. the labor force c. the labor-force participation rate d. the unemployment rate

Answers

Answer:

a. 244,662,000

b. 155,654,000

c. 63.62%

d. 7.92%

Explanation:

a. the adult population

Adult population = Number of employed + Number of unemployed + Number of people not included in labor force

= 143,322,000 + 12,332,000 + 89,008,000

= 244,662,000

b. the labor force

Labor force = Number of employed + Number of unemployed

= 143,322,000 + 12,332,000

= 155,654,000

c. the labor-force participation rate

Labor-force participation rate = Labor force ÷ Adult population × 100

= 155,654,000 ÷ 244,662,000 × 100

= 63.62%

d. the unemployment rate

Unemployment rate = Number of unemployed ÷ Labor force × 100

= 12,332,000 ÷ 155,654,000 × 100

= 7.92%

The Bureau of Labour Statistics announced is:

  • A. The adult population is 244,662,000
  • B. the labour force is155,654,000
  • C. the labor-force participation rate is 63.62%
  • D. the unemployment rate is 7.92%

A. The adult population = Employed + Unemployed + Not in the labour force

The adult population = 143,322,000 + 12,332,000 + 89,008,000

The adult population = 244,662,000

B. The labour force = Employed + Unemployed

The labour force = 143,322,000 + 12,332,000

The labour force = 155,654,000

C. The labor-force participation rate = (Labour force / Adult population) × 100

The labor-force participation rate = 155,654,000 ÷ 244,662,000 × 100

The labor-force participation rate = 63.62%

D. The unemployment rate = Number of unemployed ÷ Labour force × 100

The unemployment rate = 12,332,000 ÷ 155,654,000 × 100

The unemployment rate = 7.92%

Therefore, a. 244,662,000, b. 155,654,000, c. 63.62%, d. 7.92%

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