Huish Awnings makes custom awnings for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools: Overhead Costs:
Production overhead $150,000
Office expense 100,000
Total $250,000
Distribution of resource consumption:
Activity Cost Pools
Making Awnings Job Support Other Total
Production overhead 45% 40% 15% 100%
Office expenses 8% 65% 27% 100%
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The amount of activity for the year is as follows:
Activity Cost Pool Annual Activity
Making awnings 5,000 metres
Job support 200 jobs
Other Not applicable
Prepare the first-stage allocation of overhead costs to the activity cost pools
Answers
Answer and Explanation:
The preparation of the First stage allocation of overhead costs to the activity cost pools is presented below
Particulars Making awnings Job Support Other Total
Production Overhead $67,500 $60,000 $22,500 $150,000
Office Expenses $8,000 $65,000 $27,000 $100,000
The production overhead is allocated in 45% 40%, 15% and 100%
And,
The office expenses is allocated in 8%, 65%, 27% and 100%
The same is shown above
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A store sells 20 ice cream bars per hour for $4 each, but on discount days, it sells 35 ice cream bars per hour for $3. Based on these two data points, what would be the slope for the relationship between the price and the quantity of ice cream sold?
There are seven main instruments used in trade policy with _____ being the oldest and the simplest. local content requirements tariffs subsidies voluntary export restraints import quotas
Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $396,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period: Department DLH Loans Processed Direct Costs Consumer 14,000 700 $ 280,000 Commercial 8,000 300 $ 180,000 Banc Corp. Trust estimates that it costs $400 to analyze and close a commercial loan. What is the overhead rate if Banc Corp. Trust allocates the remaining indirect costs using direct labor hours? Multiple Choice a. $12.55 per hour.b. $18.00 per hour. c. $1,000 per loan. d. $800 per loan.
Hayes Corp. is a manufacturer of truck trailers. On January 1, 2021, Hayes Corp. leases ten trailers to Lester Company under a six-year non-cancelable lease agreement. The following information about the lease and the trailers is provided: 1) Annual payment of $120,175 is due on January 1, 2021 and at December 31 from 2021 to 2025. Hayes Corp. has an implicit rate of 8% (present value factor for 6 periods at 8% is 4.99271). 2) Titles to the trailers pass to Lester at the end of the lease. 3) The fair value of each trailer is $60,000. The cost of each trailer to Hayes Corp. is $54,000. Each trailer has an expected useful life of nine years. 4) Collectibility of the lease payments is probable. Instructions (a) What type of lease is this for the Lester Company and Hayes Corp? (b) Prepare a lease amortization schedule for Lester Company till 12/31/2021. (c) Prepare the journal entries for Lester Company on 1/1/2021 and 12/31/2021. Round all amounts to the nearest dollar.
Store Travel Time Each Way Price of a Dress
(Minutes) (Dollars per dress)
Local Department Store 15 102
Across Town 30 87
Neighboring City 60 63
Juanita makes $58 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $58 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Store Opportunity Cost of Time Price of a Suit Total Cost
(Dollars) (Dollars per suit) (Dollars)
Local Department Store 103
Across Town 88
Neighboring City 63
Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the:______. .
Answers
1. The opportunity cost and total cost table is shown in the attached image below. 2. Juanita will minimize the cost of the dress if she buys it from the: Neighboring City.
The value of the next best alternative foregone when a decision is made to opt for resources like time, money, or effort to a certain option is known as opportunity cost. In other words, it is the cost of choosing one choice over another while considering the benefits and drawbacks of both options.
As there are only so many resources available, selecting one choice frequently implies forgoing its advantages. It's a manner of approaching decision-making that considers both the advantages and disadvantages of various options
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The complete question might be:
Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $103 for the dress: Juanita makes $16 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
1.Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
2. Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress if she buys it from the :______.
b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.)
c. Calculate raw material productivity figures (units/$ where $1
Answers
Answer:
Part A:
Labur Productivity:
For US=5.14, LDC=1.35
Capital Productivity:
For US=1.72 LDC=4.31
Part B:(Multi factor productivity)
For US=1.29 LDC=1.03
Part C: (Raw material productivity)
For US=4.90 LDC=10.02
Explanation:
Part A:
Labur Productivity:
For US:
For LDC:
Capital Productivity:
For US:
For LDC:
Part B:
For US:
For LDC:
Part C:
For US:
ForLDC:
Converting Raw material FC into $ (1$=10FC)
Raw Material =19550/10=$1955
B. slopes upward for inferior goods and downward for normal goods.
C. slopes downward for both normal and inferior goods.
D. slopes upward for both normal and inferior goods.
Answers
Answer:
A. slopes upward for normal goods and downward for inferior goods.
Explanation:
In the case of Engle curve it plots the relationship between income and demand for a good.
In the case of the normal goods, as the income rises the demand also rises while on the other hand in the case of inferior goods, the income rises the demand false
So it sloped upward for the normal goods and slop downwards for the inferior goods
Final answer:
An Engel curve shows the relationship between the quantity of a good consumed and a consumer's income. It slopes upward for normal goods and downward for inferior goods.
Explanation:
An Engel curve shows the relationship between the quantity of a good consumed and a consumer's income. It helps us understand how the demand for a particular good changes as income levels vary.
The correct answer to the question is A. An Engel curve slopes upward for normal goods and downward for inferior goods. This means that as income increases, the demand for normal goods also increases, while the demand for inferior goods decreases.
For example, if someone's income increases, they may choose to consume more high-quality goods like organic food instead of cheaper alternatives. This would result in an upward-sloping Engel curve for organic food, indicating that it is a normal good.
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Answers
Answer:
1. Which firm has a greater FCF (free cash flow)?
- (A) Firm A
2. What is firm A’s (annual) tax shield?
- (B) $0.8
3. What is firm B’s (annual) tax shield?
- (C) $3.2
Explanation:
since firm A's debt is $20, its value is $100, then its equity = $80
since firm B's debt is $80, its value is $100, then its equity = $20
Firm A's cash flow = (EBIT - interest expense) x (1 - tax rate) = [$10 - ($20 x 10%)] x 0.6 = $4.80
Firm B's cash flow = (EBIT - interest expense) x (1 - tax rate) = [$10 - ($80 x 10%)] x 0.6 = $1.20
Firm A's annual tax shield = taxable interest x tax rate = ($20 x 10%) x 40% = $0.80
Firm B's annual tax shield = taxable interest x tax rate = ($80 x 10%) x 40% = $3.20
Final answer:
Firm B has a greater FCF compared to Firm A. Firm A has a tax shield of $0, and Firm B has a tax shield of $3.2.
Explanation:
1. Firm B has a greater Free Cash Flow (FCF) compared to Firm A. FCF is calculated as EBIT(1-TC) + TC(D-RD), and in this case, Firm B has a higher outstanding debt which leads to a higher tax shield, resulting in a greater FCF for Firm B.
2. Firm A's annual tax shield can be calculated by subtracting the debt payments from the earnings before interest and taxes (EBIT) and then multiplying the result by the tax rate. In this case, the annual tax shield for Firm A is $0, as the interest expense is greater than the taxable income.
3. Firm B's annual tax shield can be calculated in the same way as Firm A's. In this case, the annual tax shield for Firm B is $3.2. This is because the debt payments are lower than the taxable income and result in a tax shield.
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Answers
Answer:
2019 Tax Impact of Chained Consumer Price Index for All Urban Consumers
The impact is very minimal with just a reduction of $150 from 2018's $24,550. However, the chained Consumer Price Index (chained CPI) is more progressive than the fixed weighted CPI, as it does not use a fixed bracket of goods.
Explanation:
The chained Consumer Price Index indexes consumer spending, taxes, and Social Security benefits to the rate of inflation. Considered an alternative measurement to the Consumer Price Index (CPI), the Chain-weighted CPI factors in the product substitutions by consumers and other changes in their spending habits, which are unlike the fixed-weighted bracket of goods used by the ordinary CPI.
Answers
Answer:
The correct answer is letter "C": the price rises and demand is elastic.
Explanation:
Price elasticity of demand describes the relationship between changes in quantity demanded and prices. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal to or greater than 1, the demand is elastic. This means in front of relatively small changes in price, major changes in quantity demanded will occur.
Therefore, if a good or service increases in price being the product inelastic, the quantity demanded is likely to drop (demand law) implying the producers' revenue will be decreased.