BUSINESS COLLEGE

If the master budget prepared at a volume level of 10,000 units includes direct materials of $40,000, a flexible budget based on a volume of 12,000 units would include direct materials of $48,000.a. True
b. False

Answers

Answer 1
Answer: The answer would be true if you really think about it because if 10,000 units is $40,000 then 12,000 units would estimate up to about $48,000

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A company's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130. The amount of sales required to realize an operating income of $200,000 is Group of answer choices

Cheap Money Bank offers your firm a discount interest loan at 8.25% for up to $25 million and, in addition, requires you to maintain a 15 percent compensating balance against the amount borrowed. What is the effective annual interest rate on this lending arrangement?

Answers

Answer:

10.75%

Explanation:

The computation of the effective annual interest rate is shown below:

= Interest  ÷ total net amount available

where,

Total net amount available would be

= Loan amount - Loan amount × interest rate - loan amount × compensating percentage

= $25,000,000 - $25,000,000 × 8.25% - $25,000,000 × 15%

= $25,000,000 - $2062,500 - $3,750,000

= $19,187,500

And, the interest would be $2,062,500

Now put these values to the above formula  

So, the rate would equal to

= $2,062,500 ÷ $19,187,500

= 10.75%

Nolan Company's cash account shows a $29,193 debit balance and its bank statement shows $28,152 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $2,801. The June 30 bank statement lists $32 in bank service charges; the company has not yet recorded the cost of these services. In reviewing the bank statement, a $80 check written by the company was mistakenly recorded in the company’s books as $89. June 30 cash receipts of $3,853 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement. The bank statement included a $34 credit for interest earned on the company’s cash in the bank. The company has not yet recorded interest earned. Prepare a bank reconciliation using the above information.

Answers

Answer:

Explanation:

Bank reconciliation is practice of reconciling the bank account balance in a company's book to the balance reported by the bank i order to discover and correct any discrepancy

Workings

Bank reconciliation for Nolan  for the month of June

Bank statement balance                                28,152  

Add bank deposit              3,853                    3853

                                                                        32,005

Less outstanding check   (2801)                      (2801)

                                                                         29,204

Cash book balance                                         29,193

Add back error in check (89-80)      9

Interest Earned                                 34                 43

                                                                          29,236

Less bank charges                           32                (32)

                                                                          29,204

During March, Zea Inc. transferred $55,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $61,000. The journal entries to record these transactions would include a:

Answers

Answer:

See below

Explanation:

Given the above information, the journal entries to record these transactions would be ;

Finished goods Dr $55,000

______ Work in process Cr $55,000

(Being record of transfer from work in process to finished goods)

Cost of goods sold Dr $61,000

__________ Finished goods Cr $61,000

(Being record of cost of goods sold)

Changes in real GDP reflect Group of answer choices only changes in prices. only changes in the amounts being produced. both changes in prices and changes in the amounts being produced. neither changes in prices nor changes in the amounts being produced.

Answers

Answer:

Only changes in the amounts being produced  is the correct answer to this question.

Explanation:

Real GDP is the value of goods and services at base year prices so real GDP changes reflect changes in the amounts produced in the economy.

Effective gross domestic product ( GDP) is an inflation-adjusted indicator representing the cost of the goods and economic resources by a nation in a given year (demonstrated in foundation-year prices) and is often referred to as "current prices," "corrected deflation," or "constant currency" GDP.

Final answer:

Changes in real GDP reflect both changes in prices and changes in the amounts being produced.

Explanation:

Changes in real GDP reflect both changes in prices and changes in the amounts being produced. Real GDP is a measure of the total value of goods and services produced in an economy adjusted for inflation. As prices increase, the value of goods and services produced will also increase, resulting in a higher real GDP. Similarly, when more goods and services are produced, real GDP increases as well.

Learn more about GDP here:

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Over a certain period, large-company stocks had an average return of 12.14 percent, the average risk-free rate was 2.49 percent, and small-company stocks averaged 17.09 percent. What was the risk premium on small-company stocks for this period?a. 9.93%
b. 19.39%
c. 14.81%
d. 11.85%
e. 4.88%

Answers

Answer:

14.6 percent

Explanation:

Data provided in the question

The average return of large-company stock = 12.14 percent

The average risk-free rate of return = 2.49 percent

The average return of small-company stock = 17.09 percent

By considering the above information, the risk premium is  

= Average return of small-company stock - Average risk-free rate of return

= 17.09 percent - 2.49 percent  

= 14.6 percent

This is the answer but the same is not provided in the given options

We simply deduct the risk-free rate of return from the market return so that the risk premium could come

Mullee Corporation produces a single product and has the following cost structure: Number of units produced each year 7,000 Variable costs per unit: Direct materials $ 51 Direct labor $ 12 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 5 Fixed costs per year: Fixed manufacturing overhead $441,000 Fixed selling and administrative expense $112,000 The absorption costing unit product cost is:________a. $65 per unit
b. $128 per unit
c. $63 per unit
d. $149 per unit

Answers

Answer:

unitary absorption production cost= $128

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

First, we need to calculate the unitary fixed manufacturing overhead:

Unitary fixed overhead= 441,000 / 7,000= $63

Now, the unitary absorption production cost:

unitary absorption production cost= 51 + 12 + 2 + 63

unitary absorption production cost= $128
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