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
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Comparing Costs of Credit Using Three Calculation Methods. You have been pricing a compact disk player in several stores. Three stores have the identical price of $300. Each store charges 18 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C uses the previous balance method. Assume you purchased the disk player on May 5 and made a $100 payment on June 15. What will the finance charge be if you made your purchase from store A? From store B? From store C? (Obj. 2)
Wade Corp. has 150,000 shares of common stock outstanding. In 2020, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in the $1,210,000 are as follows.1. In 2020, Wade Corp. sold equipment for $40,000. The machine had originally cost $80,000 and had accumulated depreciation of $30,000. The gain or loss is considered non-recurring.2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $90,000 before taxes; the loss from disposal of the subsidiary was $100,000 before taxes.3. An internal audit discovered that amortization of intangible assets was understated by $35,000 (net of tax) in a prior period. The amount was charged against retained earnings.4. The company recorded a non-recurring gain of $125,000 on the condemnation of some of its property (included in the $1,210,000).Instructions Analyze the above information and prepare an income statement for the year 2020, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 19% on all items, unless otherwise indicated.)
You are the supply chain manager for a small company that makes customized road bicycles. YouCEO asks you to explain the steps in the process for manufacturing and delivering the product toconsumers, in your supply chain. Use the module content and Better Business to explain the steps ithe process, in four to five sentences minimum.HTML Editora
A company began its fiscal year with inventory of $186,000. Purchases and cost of goods sold for the year were $945,000 and $982,000, respectively. What was the amount of ending inventory?
Answers
Answer:
Calculate the tax consequence of withdrawal from retirement account.
T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.
Analysis
They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.
Calculation of tax consequences if withdrawal amount is $2,100:
Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.
= $2100 × 35%
= $735
The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.
= $2100 × 10%
= $210
(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)
Total expenses include the tax amount and penalty charge on withdrawal amount. So, it is calculated as follows:
Total expenses =$735 + $210
Total expenses = $945
Conclusion
Therefore, T and L would incur a tax of $945 on their withdrawal. This $945 is the sum of income tax amount and penalty on withdrawal balance.
Answers
Answer:
No, I do not think justices should be forced to retire.
Explanation:
In order to ensure that the rule of law is maintained and every arm of government and it's institutions has no influences on justices, justices should not be forced to retire, as long as they are of good behavior and conduct.
Final answer:
The question pertains to the argument of whether the tenure of Supreme Court justices in a democracy should be capped or not. The professor's comment implies that long tenure might hinder dynamic legal interpretations in line with evolving societal values. Whether one supports the traditional life appointment system for justices or not depends on personal perspective.
Explanation:
The law professor's statement likely implies that with the evolving socially progressive landscape, having Supreme Court justices serve for 25 years or more could lead to stagnation in legal interpretation and decision making. Whether the current life appointment system for justices should be changed or not is a matter of personal opinion. Supporters of the current system often argue that it preserves judicial independence and protects the court from political pressures. On the other hand, those in favor of imposing retirement ages for justices often cite the need for fresh perspectives and dynamic legal interpretations that align with current societal values.
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Answers
Answer:
The incremental annual net cash inflows provided by the new machine would be $2,525.
Explanation:
In order to calculate the incremental annual net cash inflows provided by the new machine we would have to use the following formula:
incremental annual net cash inflows=saving in annual operating cost+contribution earned on additional sales
=( $4,125-$3,730)+(21,300×$0.10)
=$395+$2,130
=$2,525
Hence, The incremental annual net cash inflows provided by the new machine would be $2,525.
Answers
Answer: a. Brands enhance loyalty.
Explanation:
Brands enhance loyalty because people are more likely to identify with a symbol than with something that has a general identity. When a company has a brand therefore, it will enhance the loyalty of its consumers as they look to identify with that brand.
Take Adidas for instance, the three stripes logo is so iconic that people can sometimes have entire wardrobes of Adidas apparel to show those three stripes off and show that they identify with it. This is the benefit that Nancy stands to gain with branding.
Shipping fees to import circuit board: $20
Labor, overhead, and additional material costs of final product: $115
Import duties levied on circuit board (to be paid by the German division): 10% of transfer price
German tax rate: 60%
Assume that U.S. and German tax authorities allow a transfer price for the circuit board set at either U.S. variable manufacturing cost or the U.S. market price. Alpha’s management is in the process of exploring which transfer price is better for the firm as a whole.
Required:
1. Compute overall company profitability per unit if all units are transferred and U.S. variable manufacturing cost is used as the transfer price. Show separate calculations for the U.S. operation and the German division.
2. Repeat requirement (1). assuming the use of the U.S. market price as the transfer price. Which of the two transfer prices is better for the firm?
3. Assume that the German division can obtain the circuit board in Germany for $155.
a. If you were the head of the German division, would you rather do business with your U.S. division or buy the circuit board locally? Why?
b. Rather than proceed with the transfer, is it in the best interest of Alpha to sell its goods domestically and allow the German division to acquire the circuit board in Germany? Why? Show computations to support your answer.
Answers
Answer:
1-If the transfer price is set equal to the U.S. variable manufacturing cost, Alpha Communications will have a profit of $32.80 per circuit board with US Share as $0 and German Share as $32.80.
2-If the transfer price is set equal to the U.S. market price, Alpha Communications will have a profit of $39.20 per circuit board with US Share as $24 and German Share as $15.20. The transfer price as US market price is more effective for the Alpha Communications.
3:a-If the German division can obtain the boards in Germany for 155, it is better for the German division because due to lack of additional shipping fee and import duty, this price is more feasible for the German division.
3:b- If the company decide to sell the US circuit boards locally and allow German division to obtain the circuit boards in Germany, then Alpha Communication will have a profit of $60 per circuit board with US Share as $24 and German Share as $36.
Explanation:
1-If the transfer price is set equal to the U.S. variable manufacturing cost, Alpha Communications will have a profit of $32.80 per circuit board. The calculations are as follows:
US Operation:
Sales Revenue(Price set to variable manufacturing cost): $130
Variable Manufacturing Cost: : ($130)
_________________________________________________
Contribution Margin : $ 0
German Operation:
Selling Price: $360
Transfer Price: ($130)
Additional Cost: ($115)
Shippng Cost: ($20)
Import Duty (10% of Transfer Price): 10% x 130=0.1x130= ($13)
_________________________________________________
Income Before Tax: $82
Income Tax (60% of Income Before Tax):60%x82 ($49.20)
___________________________________________________
Income After Tax $32.80
2-If the transfer price is set equal to the U.S. market price, Alpha Communications will have a profit of $39.20 per circuit board. The transfer price as US market price is more effective for the Alpha Communications. The calculations are as follows:
US Operation:
Sales Revenue(Price set to variable manufacturing cost): $170
Variable Manufacturing Cost: : ($130)
_________________________________________________
Income Before Tax : $ 40
Income Tax (40% of Income Before Tax):40%x40 :($16)
_________________________________________________
Income After Tax: : $24
German Operation:
Selling Price: $360
Transfer Fee: ($170)
Additional Cost: ($115)
Shippng Cost: ($20)
Import Duty (10% of Transfer Price): 10% x 170=0.1x170= ($17)
_________________________________________________
Income Before Tax: $38
Income Tax (60% of Income Before Tax):60%x38 ($22.80)
___________________________________________________
Income After Tax $15.20
Total Income By Alpha Communication: $24+$15.20=$39.20
3-a: If the German division can obtain the boards in Germany for 155, it is better for the German division because due to lack of additional shipping fee and import duty, this price is more feasible for the German division.
At the lower tranfer price of 130, the total impact of transfer is given by
Transfer Price: $130
Shippng Cost: $20
Import Duty (10% of Transfer Price): 10% x 130=0.1x130= $13
___________________________________________________
Total Impact $163
It is more than the local available price, Thus the company should purchase their circuit board locally.
3-b If the company decide to sell the US circuit boards locally and allow German division to obtain the circuit boards in Germany, then Alpha Communication will have a profit of $60 per circuit board.
US Operation:
Sales Revenue(Price set to variable manufacturing cost): $170
Variable Manufacturing Cost: : ($130)
_________________________________________________
Income Before Tax : $ 40
Income Tax (40% of Income Before Tax):40%x40 :($16)
_________________________________________________
Income After Tax: : $24
German Operation:
Selling Price: $360
Local Circuit Board Price ($155)
Additional Cost: ($115)
_________________________________________________
Income Before Tax: $90
Income Tax (60% of Income Before Tax):60%x38 ($54)
___________________________________________________
Income After Tax $36
Total Income By Alpha Communication: $24+$36=$60.0
Final answer:
To calculate overall company profitability, we compare two scenarios: using U.S. variable manufacturing cost or U.S. market price as the transfer price. Using U.S. variable manufacturing cost as the transfer price results in higher profitability. If the German division can obtain the circuit board in Germany for $155, it would be more advantageous to buy locally and sell domestically.
Explanation:
To calculate the overall company profitability per unit, we need to consider two scenarios: using the U.S. variable manufacturing cost as the transfer price and using the U.S. market price as the transfer price.
- Scenario 1: U.S. variable manufacturing cost as transfer price: The U.S. operation would sell the circuit board to the German division for $130, while the German division would sell the final product for $360. The German division would incur additional costs, such as shipping fees, labor and overhead, and import duties. After accounting for these costs and taxes, the overall profitability per unit for the company would be $14.40.
- Scenario 2: U.S. market price as transfer price: The U.S. operation would sell the circuit board to the German division for $170, while the German division would sell the final product for $360. Again, the German division would incur additional costs and taxes. After accounting for these costs and taxes, the overall profitability per unit for the company would be $13.50.
In this case, using the U.S. variable manufacturing cost as the transfer price results in higher profitability for the company. However, it's important to consider other factors, such as the business relationship between the U.S. and German divisions and the potential benefits of local sourcing.
If the German division can obtain the circuit board in Germany for $155, it would be more advantageous for the head of the German division to buy the circuit board locally instead of doing business with the U.S. division. This is because the local sourcing option is cheaper and eliminates the need for import duties, resulting in higher profitability for the German division.
Rather than proceeding with the transfer, it would be in the best interest of Alpha to sell its goods domestically and allow the German division to acquire the circuit board in Germany. This is because selling domestically avoids the additional costs and taxes associated with the transfer, while the German division can source the circuit board locally at a lower cost.
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Answers
Answer:
The correct solution is "$397000".
Explanation:
Given:
Net income,
= $377000
Depreciation,
= $59000
Accounts receivable increase,
= $27000
Accounts payable decreased,
= $12000
Now,
From operating activities, the cash flow will be:
= By putting the values, we get
=
= ($)