BUSINESS COLLEGE

Bob lives in San Diego and runs a business that sells boats. In an average year, he receives $793,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Bob does not operate this boat business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this boat business.Identify each of Charles's costs in the following table as either an implicit cost or an explicit cost of selling guitars.

a. The wages and utility bills that Charles pays
b. The wholesale cost for the guitars that Charles pays the manufacturer
c. The rental income Charles could receive if he chose to rent out his showroom
d. The salary Charles could earn if he worked as a financial advisor

Answers

Answer 1
Answer:

Answer:

Explanation:

Explicit Costs refers to costs that involve an immediate outlay of cash from the business and it is recorded and reported to the management.

Implicit Cost refer to the cost which the company had foregone while employing the alternative course of action and is neither recorded nor reported to the management of the company.

a. The wages and utility bills that Charles pays

Identification: Explicit Cost

b. The wholesale cost for the guitars that Charles pays the manufacturer

Identification: Explicit Cost

c. The rental income Charles could receive if he chose to rent out his showroom

Identification:  Implicit Cost

d. The salary Charles could earn if he worked as a financial advisor

Identification:  Implicit Cost

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During January, Luxury Cruise Lines incurs employee salaries of $2.9 million. Withholdings in January are $221,850 for the employee portion of FICA, $435,000 for federal income tax, $181,250 for state income tax, and $29,000 for the employee portion of health insurance (payable to Blue Cross Blue Shield). The company incurs an additional $179,800 for federal and state unemployment tax and $87,000 for the employer portion of health insurance.Required:A) Record the employee salary expense, withholdings, and salaries payable.B) Record the employer-provided fringe benefits.C) Record the employer payroll taxes.
ordan Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,200 containers follows. Unit-level materials $ 5,800 Unit-level labor 6,400 Unit-level overhead 3,900 Product-level costs* 9,600 Allocated facility-level costs 26,600 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Jordan for $2.80 each. Required Calculate the total relevant cost. Should Jordan continue to make the containers
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Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plantwide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers: Engineering $1,000,000 Setups 900,000 Machining 2,000,000 Inspection 800,000 Providing space 250,000 Providing utilities 180,000 Activity drivers for each activity have been identified and their practical capacities listed: Machine hours 25,000 Setups 200 Engineering hours 5,000 Inspection hours 2,500 The costs of facility-level activities are assigned using machine hours. What is (are) the product-level activity(ies)? a.engineering b.inspecting c.setups d.All of these choices are correct.
On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $90,000 in cash and giving a short-term note for $50,000. Legal fees paid were $1,750, delinquent taxes assumed were $25,000, and fees paid to remove an old building from the land were $9,000. Materials salvaged from the demolition of the building were sold for $1,000. A contractor was paid $415,000 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.

Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October: Percent Completed Units Materials Conversion Work in process, October 1 45,000 90 % 65 % Work in process, October 31 25,000 71 % 50 % The department started 386,000 units into production during the month and transferred 406,000 completed units to the next department. Required: Compute the equivalent units of production for October.

Answers

Answer:

The equivalent units of production for October are :

Raw Materials = 423,750

Conversion Costs = 418,500

Explanation:

Calculation of Equivalent Units of Production

1. Raw Materials

Ending Work In Process Inventory (25,000 × 71%)          17,750

Completed and Transferred (406,000 × 100%)           406,000

Equivalent Units of Production for Materials                 423,750

2. Conversion Costs

Ending Work In Process Inventory (25,000 × 50%)        12,500

Completed and Transferred (406,000 × 100%)           406,000

Equivalent Units of Production for Materials                 418,500

Sandpiper Inc. has a division that manufactures a component that sells for $ 160 and has a variable cost of $ 35. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $ 25. What is the minimum transfer price if the division is operating at​ capacity?

Answers

Answer:

market price $160

Explanation:

The division is operating at capacity.

This means is selling all the output to the market.

So if the division purchase at a lower price than market, it will reduce the profit of the division.

It this case the division minumin transfer price is the market price which is $160 Doing otherwise decrease the income of the company.

According to the quantity equation, the price level would change less than proportionately with a rise in the money supply if there were also

Answers

Answer:

the correct answer is either a rise in output or a fall in velocity.

good luck

Opportunity cost is not just about monetary cost; it includes anything other than the price of a good that a consumer gives up in order to buy his or her good of choice. Looking to invest in his first pair of dress shoes, Sean is deciding between a pair of slip-on shoes and a pair of traditional lace-up wingtips. In this case, the slip-ons cost $50 more than the Wingtips. Which of the following should be included in the opportunity cost of buying the slip-ons? Included in the Opportunity Cost
i. the classic look of traditional wingtips
ii. the savings that would come from buying the wingtips the money
iii. the no-lace convenience of slip-ons
iv. the pride that comes with wearing the more expensive shoes

Answers

Final answer:

Opportunity Cost refers to potential gain given up by choosing one option over others. For Sean, this includes the vintage look of wingtips and the saved $50 if he chooses slip-ons instead of wingtips. The convenience and pride Sean gets from the slip-ons don't count as Opportunity Cost since they are benefits, not losses.

Explanation:

The concept of Opportunity Cost in economics and business refers to the loss of potential gain from other options when one option is chosen. In Sean's case, the Opportunity Cost of buying the more expensive slip-ons shoes includes:

  1. The classic look of traditional wingtips: Sean gives up the vintage statement a lace-up wingtips may offer;
  2. The savings that would come from buying the wingtips: Sean would spend $50 extra buying the slip-ons than if he chose the wingtips;

However, the last two points: 'the no-lace convenience of slip-ons' and 'the pride that comes with wearing the more expensive shoes' do not fit into the Opportunity Cost. They instead are perceived benefits of the chosen slip-ons and not what is given up when he chooses that option.

Learn more about Opportunity Cost here:

brainly.com/question/32971162

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Fetzer Company declared a $0.55 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 8,000 shares in treasury stock. The journal entry to record the payment of the dividend is:

Answers

Answer:

Please see journals below

Explanation:

Retained earnings Dr $104,000

Common dividend payable Cr $104,000

Common dividend payable Dr $104,000

Cash Cr. $104,000

Retained earnings Dr $100,100

Common dividends payable Cr $100,100

Common dividends payable Dr $100,100

Cash Cr $100,100

Retained earnings Dr $110,000

Common dividends payable Cr $110,000

Working

Dividends payable

= 190,000 × $0.55

= $104,000

Common dividend payable

= $0.55 × (190,000 shares - 8,000 shares)

= $100,100

Stephanie manages the accounting department at an advertising agency. She needs to conduct performance appraisals for the eight employees in her department. Stephanie wants a performance appraisal tool that is highly accurate, ranks employees, and uses critical incidents to help explain ratings to appraisees. Which performance appraisal tool is best suited for Stephanie?

Answers

Answer:

The correct answer is behaviorally anchored rating scale.

Explanation:

The behavior-based rating scale is a performance appraisal method that combines elements of the traditional rating scale and critical incident methods.  In this, various levels of performance are presented along with a scale that describes them regarding the specific work behavior of an employee.
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