Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 120,000 units per year. The total budgeted overhead at normal capacity is $1,080,000 comprised of $420,000 of variable costs and $660,000 of fixed costs. Byrd applies overhead on the basis of direct labor hours. During the current year, Byrd produced 74,000 putters, worked 98,300 direct labor hours, and incurred variable overhead costs of $133,200 and fixed overhead costs of $612,000.

Required:
a. Compute the predetermined variable overhead rate and the predetermined fixed overhead rate.
b. Compute the applied overhead for Byrd for the year.
c. Compute the total overhead variance.

Answers

Answer 1
Answer:

Answer:

Instructions are below.

Explanation:

Giving the following information:

Standard= 1 direct labor hour per unit

The total budgeted overhead at normal capacity is $1,080,000 comprised of $420,000 of variable costs and $660,000 of fixed costs.

During the current year, Byrd produced 74,000 putters, worked 98,300 direct labor hours, and incurred variable overhead costs of $133,200 and fixed overhead costs of $612,000.

First, we need to calculate the estimated overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (420,000 + 660,000)/120,000

Estimated manufacturing overhead rate= $9 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 9*98,300= $884,700

Finally, the total overhead variance:

Overhead variance= real overhead - allocated overhead

Overhead variance= 745,200 - 884,700

Overhead variance= 139,500 favorable


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Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Net income $85,800 Depreciation expense 12,500 Gain on sale of land 8,000 Increase in merchandise inventory 2,550 Increase in accounts payable 6,650a. $37,400.b. $13,150.c. $94,400.d. $14,150.e. $29,400.
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Why don't consumers tend to get upset about tariffs?

Answers

Answer:

Tariffs are bans or taxes on stuff that gets imported and exported in and out of countries. This doesn't really affect consumers because they buy stuff and don't tend to notice. This does affect producers because they need supply to fill in the demand.

Note:

Hope this helps! Good Luck (^-^)

-kiniwih426

Answer:

Tariffs hurt consumers because it increases the price of imported goods. Because an importer has to pay a tax in the form of tariffs on the goods they are importing, they pass this increased cost onto consumers in the form of higher prices.

Explanation:

i dont know if this helps

You plan to buy a $250,000 home with a 20% down payment. The bank you want to finance the loan through suggests two options: a 15-year mortgage at 4.25% APR and a 30-year mortgage at 5% APR. What is the difference in monthly payments between these two options?

Answers

Answer:

A 15-year mortgage monthly payments is: $1,496.5

A 30-year mortgage monthly payments is: $1,060.1

=> The difference of monthly payment between the two options is: $436.4 ( $1,496.5 - $1,060.1) where the monthly payment of the option of 15-year mortgage is higher.

Explanation:

The borrowed amount in both options is : $250,000 * 80% = $200,000;

* A 15-year mortgage monthly payments is:

We have (1+APR) = ( 1 + Monthly Interest rate)^12 <=> 1.0425 = ( 1 + Monthly Interest rate)^12 <=> Monthly Interest rate = 0.3475%;

Amount of payment periods = 15 * 12 = 180

=> Monthly payment = (200,000 * 0.3475%) / [ 1 - 1.003475^(-180) ] = $1,496.5

* A 30-year mortgage monthly payments is:

We have (1+APR) = ( 1 + Monthly Interest rate)^12 <=> 1.05 = ( 1 + Monthly Interest rate)^12 <=> Monthly Interest rate = 0.4074%;

Amount of payment periods = 30 * 12 = 360

=> Monthly payment = (200,000 * 0.4074%) / [ 1 - 1.004074^(-360) ] = $1,060.1

To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 12% discount. During May, employees purchased 10,000 shares at a time when the market price of the shares on the New York Stock Exchange was $12 per share. KL will record compensation expense associated with the May purchases of:

Answers

Answer:

Dr Cash 105,600

Dr Compensation Expense 14,400

Cr Common Stock 10,000

Cr Paid-In Capital – Excess of Par 110,000

Explanation:

KL Corp Journal entry

Dr Cash 105,600

Dr Compensation Expense 14,400 (10,000*12*12%)

Cr Common Stock 10,000 (10,000*1)

Cr Paid-In Capital – Excess of Par 110,000

(10,000*(12-1))

Presented below are a number of balance sheet items for Montoya, Inc. for the current year, 2020. Goodwill $ 125,000
Accumulated Depreciation-Equipment $ 292,000
Payroll Taxes Payable 177,591
Inventory 239,800
Bonds payable 300,000
Rent payable (short-term) 45,000
Discount on bonds payable 15,000
Income taxes payable 98,362
Cash 360,000
Rent payable (long-term) 480,000
Land 480,000
Common stock, $1 par value 200,000
Notes receivable 445,700
Preferred stock, $10 par value 150,000
Notes payable (to banks) 265,000
Prepaid expenses 87,920
Accounts payable 490,000
Equipment 1,470,000
Retained earnings ?
Retained earnings ?Debt investments (trading) 121,000Income taxes receivable 97,630Accumulated depreciation-buildings 270,200Notes payable (long-term) 1,600,000Buildings 1,640,000
Required:
Required:1. Prepare a classified balance sheet in good form.

Answers

Answer:

MONTOYA, INC.  

                                     Balance Sheet  

                               December 31, 2017  

Assets

Current assets  

Cash                                                     $360,000  

Equity Investments (Trading)              121,000  

Notes Receivable                                        445,700  

Income Taxes Receivable                         97,630  

Inventory                                                239,800  

Prepaid Expenses                                         87,920  

Total current assets                                                           $1,352,050  

 

Property, plant, and equipment  

Land                                                             480,000  

Buildings                              $1,640,000  

Less: Accum Deprec - Buildings 270,200          1,369,800  

Equipment                                    1,470,000  

Less: Accum Deprec - Equipment292,000                  1,178,000  

                                                                                              3,027,800

Intangible assets  

Goodwill                                                         125,000  

Total assets                                                                          $4,504,850  

 

Liabilities and Shareholders’ Equity

Current liabilities  

Accounts Payable                                      $490,000  

Notes Payable to Banks                    265,000  

Payroll Taxes Payable                                  177,591  

Income Tax Payable                                 98,362  

Rent Payable - Short-term                         45,000  

Total current liabilities                                                          $1,075,953  

Long-term liabilities  

Unsecured Notes Payable (Long-term)  1,600,000  

Bonds Payable                             $300,000  

Less: Discount on Bonds Payable 15,000    285,000  

Rental Payable Long-term                            480,000  2,365,000

Total liabilities                                                                    3,440,953

 

Shareholders’ equity

Capital Stock  

Preferred stock, $10 par; 20,000 shares authorized, 15,000 shares issued 150,000  

Common stock, $1 par; 400,000 shares authorized, 200,000 issued   200,000 350,000  

Retained Earnings ($1,063,897 - $350,000) 713,897  

Total shareholders’ equity ($4,504,850 – $3,440,953) 1,063,897  

Total liabilities and shareholders’ equity $4,504,850    

Computation of Retained earnings:  

Accounting Equation  

Total assets $4,504,850  

Less: Liabilities 3,440,953  

Less: Contributed capital 350,000  

Retained earnings $713,897  

A classified balance sheet divides assets, liabilities, and equity into subcategories. Assets and liabilities are further divided into current and non-current. Retained earnings, part of equity, is calculated by adding this period's net income to last period's retained earnings and subtracting dividends paid.

A classified balance sheet categorizes assets, liabilities, and equity into subcategories to provide more meaningful information.

Assets

can be categorized as current assets (e.g. Cash, Debt investments (trading), Notes receivable, Prepaid expenses, Income taxes receivable, Inventory), long-term investments, property plant and equipment (PPE), Intangible assets such as Goodwill, and other assets.

Liabilities

can be categorized as current liabilities (e.g. Accounts payable, Notes Payable to the bank, Rent payable (short-term), Payroll Taxes Payable, Income taxes payable) and long-term liabilities (e.g. Notes payable (long-term), Rent payable (long-term), Bonds payable less discount on bonds payable).

Equity

is comprised of share capital (Common stock and Preferred stock) and Retained earnings.

To calculate Retained earnings, begin with the last period's retained earnings, add this period's net income, and subtract dividends paid. Given the provided information, we can't calculate it as not all necessary information is provided. Hence, it is mentioned as ?.

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Dillard’s, Inc., operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2016 third-quarter report, the company reported Cost of Goods Sold of $880 million, ending inventory for the third quarter of $1,900 million, and ending inventory for the previous quarter of $1,500 million. Estimate merchandise purchases for the third quarter.

Answers

Answer:

$1,280 million

Explanation:

The change between the opening inventory balance and the ending inventory balance for a period is as a result of the purchases of inventory and the sale of inventory during the period.

All of these elements are related as;

Opening inventory + purchases - cost of goods sold = ending inventory

As such, to estimate the merchandise inventory purchased,

let the purchase for the period be T

1500 + T - 880 = 1900 (All amounts in millions of $)

T = 1900 + 880 - 1500

= 1280

The merchandise purchases for the third quarter is $1,280 million.

Here is some price information on Fincorp stock. Suppose that Fincorp trades in a dealer market. Bid Ask 55.25 55.50 a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed

Answers

Answer:

$55.50

Explanation:

The bid price is $55,25 is the price applicable to investors would intend to sell their investment.

The ask price is $55.50 is the price applicable to investors who wish to acquire the Fincorp stock.

The prices have been computed in such a  way that the broker will always gain, whether an investor is buying or selling his/her stake.

Conclusively, the order given to the broker to buy at market would be executed at the ask price of $55.50, not the other way round.

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