Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1. Direct Material Price is
= Actual Quantity × (Standard Rate - Actual Rate)
= 1,780,000 × ($1.40 - $1.30)
= 1,780,000 × 0.10
= $178,000 Favorable
Direct Material Quantity Variance is
= Standard Rate × (Standard Quantity - Actual Quantity)
= $1.40 × [(210,000 × 8) - 1,780,000]
= $1.40 × (1,680,000 - 1,780,000)
= $1.40 × -100,000
= -$140,000 Unfavorable
Direct Labor Rate Variance is
= Actual Hour × (Standard Rate - Actual Rate)
= 4,900 hours × ($12 - $13)
= -4,900 hours × $1
= -$4,900 Unfavorable
Direct Labor Efficiency Variance is
= Standard Rate × (Standard Hours - Actual Hours)
= $12 × [(210,000 × 0.024) - 4,900]
= $12 × [5,040 - 4,900]
= $12 × 140 hour
= $1,680 Favorable
2. As we can see that the material price variance and labor efficiency variance comes in favorable while on the other side, the material quantity variance and labor rate variance comes in unfavorable.
And we assume that the managers are purchasing the materials efficiently at lesser rates and the usage is not efficient.
Consequently , labor is efficient if the company paid at higher rate.
Therefore the managers are making trade offs.
Moreover, they are compromising of labor rate so that there would be rise in efficiency.
And at the same time if cheaper material is buyed so the quality is compromised and the changes of wastage is high that reflects the material quantity variance unfavorable
Answer:
( c ) $27,950
Explanation:
The computation of the uniform amount that should be deposited is shown below:
= Accumulated sum of amount × (A/F, 14% ÷ 2, 2 × 6)
= $500,000 × (A/F, 7%, 12)
= $500,000 × 0.0559
= $27,950
hence, the amount that should be deposited is $27,950
Hence, the correct option is c. $27,950
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
Economic espionage.
Explanation:
Economic espionage is an activity of unlawfully targeting and spying the sensitive information of corporate or government. The motive behind economic espionage is more than just earning profit, it is much larger in scope and scale. It include theft of critical economic intelligence, trade secret, intellectual property, etc. There are different ways of conducting economic espoinage:
1) Hiring insider of corporate or research institution and getting information on trade secrets etc.
2) By Cyber attack, theft, bribery, etc.
3) Building relationship with corporate or goverment, which seems innocent, however, motive is to gather economic intelligence.
There is Law been passed to protect against economic espionage.
Suppose that Spain and Switzerland consider trading cheese and beer with each other. Spain can gain from specialization and trade as long as it receives more than (1, 1/10, 1/5, 5, 10) barrels of beer for each pound of cheese it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than(1, 1/10, 1/5, 5, 10) pound of cheese for each barrel of beer it exports to Spain.
Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of beer) would allow both Switzerland and Spain to gain from trade? Check all that apply.
A. 6 barrels of beer per pound of cheese
B. 1 barrel of beer per pound of cheese
C. 7 barrels of beer per pound of cheese
D. 4 barrels of beer per pound of cheese
Answer:
Spain has a proportional advantage in the production of cheese since it has to provide up only 5 barrels of beer for making one pound of cheese, although, Switzerland has to provide up 10 barrels of beer which is higher. Switzerland has a proportional advantage in the construction of beer since it has to give up 1/10th pound of cheese, although, Spain has to provide up 1/5th pound of cheese which is higher.
The price must be higher than the opportunity cost of the retailer and less than the prospect cost of the consumer. The terms of trade should lie among the prospect cost of the buyer and seller to be favorable to both.
More than 5 barrels.
More than 1/10th pound of cheese.
A and C.
Spain has a comparative advantage in cheese production and Switzerland in beer production. Spain gains from trade when it receives more than 5 barrels of beer per pound of cheese it exports, and Switzerland when it gets more than 1/10 pound of cheese per barrel of beer. From this, option A (6 barrels per pound) and C (7 barrels per pound) are both beneficial trade prices for both countries.
When we compare the opportunity cost of producing cheese in Spain and Switzerland, we can see that Spain has a comparative advantage in the production of cheese, and Switzerland in the production of beer. This is because Spain can produce cheese at a lower opportunity cost than Switzerland.
Regarding trade, Spain will gain from specialization and trade as long as it receives more than 5 barrels of beer for each pound of cheese it exports to Switzerland. For Switzerland, it will gain from trade as long as it receives more than 1/10 pound of cheese for each barrel of beer it exports to Spain.
Considering the above, the prices of trade that would allow both countries to gain from trade would be A. 6 barrels of beer per pound of cheese and C. 7 barrels of beer per pound of cheese. These prices are above the opportunity cost of cheese in Spain and below the opportunity cost of cheese in Switzerland, satisfying the needs of both parties.
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Answer:
Each firm sets it price equal to its average total cost.
Explanation:
In economic theory, perfect competition is a market with a large number of sellers and buyers, producing similar products and having a small market share that does not affect prices. Let's explain the characteristics of the perfect competition :
1) manufacturers of identical products. . .
Products in the perfect competitive market are completely substitute. In other words, products and services offered by vendors do not differ from one another in terms of quality or character.. . .
2) the firm has a small market share that will not affect prices. . .
No vendor in this market has the ability to influence prices by increasing or decreasing production. Also, no buyer can reduce the supply of goods and lead to lower prices
3)Market where there are many buyers and sellers. . .
The above feature is directly related to this. Thus, if there is a seller or buyer in the market (such as monopoly or monopsony), it can easily affect the market price. However, in perfect competition, every seller and buyer must act based on market prices.
4)There is no obstacle to entering and leaving the market. . .
That is, access to the market is extremely easy and at the same time neither the state nor the old market participants have a barrier for the new participant.
5)Perfect information. . .
Every market participant knows the prices, quality and production methods.
6) Zero transaction costs...
Buyers and sellers do not bear any transaction costs (contract costs, etc.) during the purchase of goods and services. . .
7) Maximizing profits. . .
In a highly competitive market, the main purpose of firms is to maximize their profits, without any serious obstacles. In a fully competitive market, maximum profits are earned when marginal costs are equal to marginal revenue.
As you see there is information above about the easy entry and exit, the identical products and maximizing profits but nothing about the equal prices to average costs.
1.Use the direct write-off method to journalize Peterson’s write-off of the uncollectible receivables.
2.What is Peterson’s balance of Accounts Receivable at February 28, 2014?
Answer:
1) Bad debt expense (Debit) 1,800
Accounts receivable (Credit) 1,800
2) $12,200
Explanation:
1) Write off method of accounting directly credits accounts receivable instead of creating a provision for doubtful debt. Therefore following entry is recognized
Bad debt expense (Debit) 1,800
Accounts receivable (Credit) 1,800
2) Ledger balance of accounts receivable is $ 12,200 calculated as follows:
Opening Balance (31 January 2014) 15,000
Add: Sales on account during February 18,000
Less: Collection during February (19,000)
Less: Written off (1,800)
Balance at 28 February 2014 $12,200
Answer: LG needs to be aware of the implications around leasing her property or to selling off out rightly.
whether A sale or lease happens between her and the company /individual who wants to buy over or make use of the property. So she cannot ignore the legal formalities and report the transaction as a lease.
Explanation: