Barton's Taco Tico has four taco makers and ten other employees who take orders from customers and perform other tasks. The four taco makers and the other employees are paid an hourly wage. How would you classify (1) the wages paid to the taco makers and other employees and (2) materials (e.g., cheeses, salsa, tomatoes, lettuce, taco shells, etc.) used to make the tacos?A Fixed Cost Fixed B Fixed Cost Variable
C Variable Cost Fixed
D Variable Cost VariableA) Choice C B) Choice D C) Choice A D) Choice B
Answers
Answer:
The correct answer is letter "B": Choice D.
Explanation:
Fixed costs are business expenses that do not change when production levels increase or decrease. These are one of two types of business expenses and the other is variable costs. Variable costs change with increases or decreases in production volume. Then:
1)The wages paid to the taco makers and other employees - Variable Costs
2)Materials (e.g., cheeses, salsa, tomatoes, lettuce, taco shells, etc.) used to make the tacos - Variable Costs
Related Questions
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows: Administration Accounting Domestic International Employees – 29 40 31 Transactions 38,000 – 19,000 76,000 Department direct costs $ 350,000 $ 147,000 $ 950,000 $ 3,750,000Allocate the cost of the service departments to the operating departments using the direct method.
An income statement for Sam's Bookstore for the first quarter of the year is presented below:Sam's BookstoreIncome StatementFor Quarter Ended March 31Sales $ 910,000Cost of goods sold 560,000Gross margin 350,000Selling and administrative expensesSelling $ 119,000Administration 142,000 261,000Net operating income $ 89,000On average, a book sells for $65. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed.The contribution margin for Sam's Bookstore for the first quarter is:____________
Determine the total assets of Novak Corp. at December 31, 2020. Presented below is selected information related to Novak Corp. Accounts Payable $4,440 Salaries and Wages Expense $24,420 Cash 13,320 Notes Payable 37,000 Advertising Expense 8,880 Rent Expense 14,504 Service Revenue 79,920 Accounts Receivable 19,980 Equipment 42,920 Dividends 11,100
Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $3,000 in the bank and leave it there: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. How much interest will you earn in the first year?
Answers
Answer:
See explaination and attachment
Explanation:
Stockholders' equity is the amount of assets remaining in a business after all liabilities have been settled. It is calculated as the capital given to a business by its shareholders, plus donated capital and earnings generated by the operation of the business, less any dividends issued.
Balance Sheet is a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
See attachment for the step by step solution of the given problem.
Final answer:
The total stockholders' equity for Finishing Touches as of December 31, 2021, is calculated by adding the value of issued common and preferred stocks, and adjusting for treasury stocks and retained earnings. The total is $3,403,600.
Explanation:
The stockholders' equity section of Finishing Touches as of December 31, 2021, includes several items. These include the issuance of common stock, issuance of preferred stock, purchase and resale of treasury stock, the net income, and the payment of dividends. Let's break them down:
- Common Stock: 100,000 shares were issued at $35 per share, amounting to $3,500,000.
- Preferred Stock: 3,000 shares were issued at $11 per share, amounting to $33,000.
- Treasury Stock: The company bought 11,000 shares at $40 per share (creates a decrease in equity amounting to -$440,000) and sold 5,500 of these shares at $45 per share (creates an increase in equity of $247,500). The net decrease in equity due to treasury stock transactions is -$192,500.
- Retained Earnings: The company earned net income of $160,000 but paid out dividends ($94,500 to common stockholders and $2,400 to preferred stockholders), resulting in an increase in retained earnings of $63,100.
So, the total stockholders' equity for Finishing Touches as of December 31, 2021, would be $3,403,600 ($3,500,000 + $33,000 - $192,500 + $63,100).
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Answers
Answer:
$73,600
Explanation:
A learning curve is a correlation between a learner's performance on a task and the number of attempts or time required to complete the task; this can be represented as a direct proportion on a graph
The last unit will be 22nd unit .
Using learning curve table ,
Time required to build 22nd unit = 3125.49 hours
labour cost to build 22nd unit ( $20 per hour ) = $20 x $3125.49
labour cost to build 22nd unit = $62509.80
Using learning curve table ,
material and equipment cost to build 22nd unit = $11090.67
Therefore,
total cost to build the last unit = Labour cost + Material and equipment cost total cost to build the last unit = $62509.80 + $11090.67
total cost to build the last unit = $73600.47
Learning rate for labour hours ( L1) = Time for 2nd unit / Time for 1st unit
Learning rate for labour hours ( L1) = 4500/5000
Learning rate for labour hours ( L1) = 0.90
Learning rate for material and equipment usage
Learning rate for material and equipment usage = Material and equipment cost for 2nd item / Material and equipment cost for 1st item
Learning rate for material and equipment usage = 24000/30000
Learning rate for material and equipment usage = 0.80 or 80 %
Answers
Answer: 3,125 UNITS
Explanation:
According to the question above, the seasonal relatives for each quarter for the current year financials has been calculated thus:
1st quarter 0.5
2nd quarter 1.0
3rd quarter 1.25
4th quarter 1.25
using the above relatives to calculate what the next fiscal year order will be:
Total relatives above = 4.0
for the 4th quarter for the next year order :
= 1.25/4.0 * forecasted qty to be ordered for the next fiscal year
=1.25/4.0 * 10,000
0.3125 * 10,000
=3,125 units will be ordered in the forth quarter of the next fiscal year.
The number of units that would be ordered in the next fiscal year would be 3125
The financial report
The first quarter = 0.5
The second quarter = 1.0
The third quarter = 1.25
The fourth quarter = 1.25
0.5+1+1.25+1.25 = 4
The relatives are 4
The solution for the 4th quarter
= 0.3125
The number of the units in the fiscal year would be 0.3125*10000
= 3,125 units
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Answers
Answer:
Part 1 . Determine the cost of goods manufactured
Direct materials $280,000
Direct labor $324,000
Factory overhead $188,900
Add Opening Stock of Work In Progress Inventory $72,300
Less Closing Stock of Work In Progress Inventory $76,800
Cost of Goods Manufactured $788,700
Therefore cost of goods manufactured is $788,700
Part 2 . Statement of Cost of Goods Manufactured
Opening Stock of Finished Goods Inventory 39,600
Add Cost of Goods Manufactured 788,700
Less Closing Stock of Finished Goods (41,200)
Cost of Goods Manufactured 787100
Explanation:
Part 1 . Determine the cost of goods manufactured
This is a calculation of all Overheads Incurred in the Manufacturing process
Part 2 . Statement of Cost of Goods Manufactured
It is Important to note that Glenville Company is in the Manufacturing Business and their Cost of Sales cost from cost of Finished Goods.This would be the statement available for external use
Answers
Answer:
The $8 million is the amount which should Carter report as net cash from investing activities.
Explanation:
Cash flow from investing activities : It includes all types of transactions whether it is a sale or purchase of fixed assets and intangible assets.
So, the net cash flow amount from investing activities is equals to
= Sale of marketable securities + Sale of land - Purchase of equipment - purchase of patent
= $30 million + $15 million - $25 million - $12 million
= $8 million
The sale of common stock and purchase of treasury stock is a part of financing activities. Hence, it is not considered in the computation part.
Thus, the $8 million is the amount which should Carter report as net cash from investing activities.
Final answer:
Carter Containers' cash inflows from selling marketable securities, land, and common stock total $85 million. The cash outflows from buying treasury stock, equipment, and a patent total $58 million. Therefore, the net cash from investing activities is $27 million.
Explanation:
To figure out the net cash from investing activities for Carter Containers, we begin by looking at the inflows of cash. These are generated by the sales of marketable securities, land, and common stock for $30 million, $15 million, and $40 million, respectively.
We then take into consideration the outflows, which are the result of purchasing treasury stocks, equipment, and a patent, costing $21 million, $25 million, and $12 million respectively.
Summing up all the cash inflows gives us a total of $85 million. The total outflows, which are the company's expenses, amount to $58 million. To determine the net cash from investing activities, we subtract the total cash outflows from the total inflows.
Therefore, Carter's net cash from investing activities is $27 million ($85 million - $58 million).
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Answers
Answer:
Price of stock = $44.05
Explanation:
The price of a share can be calculated using the dividend valuation model
According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.
To determine the price of the stock to , we calculate the present value for each of the dividend payable for the next five years and then sum them.
The formula below would help
PV = G× (1+r)^(-n)
PV = Present Value, r required rate of return - 10%, n- the year, G- dividend payable in a particular year
Year PV of dividend
1 2+6 ×× 1.1^-1 = 7.27
2 10 × 1.1^-2 = 8.26
3 12× 1.1^-3 = 9.02
4 14 × 1.1^-4 =9.56
5 16 × 1.1^-5 = 9.93
Total Present Value of dividend = 7.27+ 8.26 +9.02 +9.56 +9.93 = 44.05
Price of stock = $44.05
Maurer, inc.,has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If yoy require a return of 10 percent on the company's stock, how much will you pay for a share today?
Answer:
Price of stock = $44.05
Explanation:
The price of a share can be calculated using the dividend valuation model
According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.
To determine the price of the stock to , we calculate the present value for each of the dividend payable for the next five years and then sum them.
The formula below would help
PV = G× (1+r)^(-n)
PV = Present Value, r required rate of return - 10%, n- the year, G- dividend payable in a particular year
Year PV of dividend
1 2+6 ×× 1.1^-1 = 7.27
2 10 × 1.1^-2 = 8.26
3 12× 1.1^-3 = 9.02
4 14 × 1.1^-4 =9.56
5 16 × 1.1^-5 = 9.93
Total Present Value of dividend = 7.27+ 8.26 +9.02 +9.56 +9.93 = 44.05
Price of stock = $44.05