An important role of the product owner in the Scrum framework for agile development is to prioritize and manage the product backlog, ensuring that it reflects the stakeholders' needs and maximizing the value delivered by the development team.
Product backlog refers to an essential component in the Scrum framework for agile development. It represents a dynamic and prioritized list of features, enhancements, and fixes that need to be implemented in the product.
The product owner plays a crucial role in managing the product backlog by collaborating with stakeholders, gathering requirements, and determining the priority of items.
They ensure that the backlog is continuously refined, updated, and aligned with the evolving needs of the project.
This prioritization process helps the development team focus on delivering high-value functionality and adapt to changes efficiently throughout the project's lifecycle.
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GlobalHead Foundation is a profit-making organization that conducts welfare programs for differently-abled children it strives to keep its pace with its competitors and comes up with equivalent programs that can beneft the children. Recently, the management of GlobalHead had ideas that could put it in the forefront of the healthcare sector. However, the company has been reluctant to take risks and go beyond its usual workflow, In this scenario, GlobalHead is required to. A. have a situational constraint B. set a stretch goal C. have a rotational design D. set a cognitive target
B. Set a stretch goal. GlobalHead Foundation should set a stretch goal to break free from reluctance, inspire innovation, and push for significant achievements.
Setting a stretch goal will help GlobalHead Foundation overcome its reluctance and push itself to go beyond its usual workflow. By aiming for a challenging objective, the organization can inspire its management and employees to think innovatively and come up with ideas that can put them at the forefront of the healthcare sector. This will create a sense of urgency and motivation within the organization, encouraging them to take calculated risks and embrace change.
Setting a stretch goal also fosters a culture of creativity and continuous improvement. It encourages employees to explore new possibilities and push their boundaries to develop equivalent programs that can benefit differently-abled children. By striving for a stretch goal, GlobalHead can differentiate itself from competitors and stay competitive in the sector, ultimately benefiting the children they serve.
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.
Enviro Company issues 8%,10-year bonds with a par value of $250,000 and semianriual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 871/2. Prepare the journal entry for the issuance of the bonds for cash on January 1. Record the issue of bonds with a par value of $250,000. Note: Enter debits before credits.
Cash debit: $218,750, Discount on Payable Bonds debit: $31,250, Bonds Payable credit: $250,000.
The following would be the journal entry for the cash-for-bonds issuance on January 1:
Cash debit: $218,750
Debit: Discount on Payable Bonds $31,250
Bonds Payable, Inc. $250,000
By dividing the $250,000 par value by the 87 1/2% (or 87.5%) selling price, the corporation receives cash in the amount of $218,750. When calculating the discount on bonds payable, the cash received is subtracted from the bonds' par value. It amounts to $31,250 in this instance ($250,000 - $218,750). The par value of $250,000 is then credited to the Bonds Payable account.
Given that the market rate of 10% is higher than the coupon rate of 8%, this entry reflects the bonds being issued at a discount. The Bond Discount The difference between the par value of the bonds and the money investors contributed is represented by the payable account.
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top management’s views about where the company is headed and what its future product-customer-market-technology will be
Top management's views about where the company is headed and its future product-customer-market-technology (PCMT) can vary depending on the specific company and its strategic vision. However, there are some common factors that top management typically considers when shaping their views on the company's direction:
1. Market Analysis: Top management conducts thorough market analysis to identify current and emerging trends, customer preferences, and market opportunities. They assess the competitive landscape and industry dynamics to understand where the company can differentiate itself and capture future market share.
2. Customer Insights: Understanding customer needs, preferences, and behaviors is crucial for determining the future direction of the company. Top management gathers customer insights through market research, customer feedback, and data analysis to identify unmet needs and develop products and services that align with customer expectations.
3. Technological Advancements: Top management monitors technological advancements and assesses their potential impact on the industry and the company's products or services. They stay updated on emerging technologies, digital transformation, and innovation trends to leverage new technologies that can drive future growth and enhance the company's competitive advantage.
4. Strategic Planning: Top management engages in strategic planning processes to define the company's long-term goals and objectives. They consider the organization's strengths, weaknesses, opportunities, and threats (SWOT analysis) to identify areas for improvement and develop strategies that align with the company's capabilities and resources
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Donald E. Petersen, former chairman of the board of Ford Motor Company, remarked, "If we aren’t customer driven, our cars won’t be either."
How do cars add value to people’s lives?
Cars add value to people’s lives by providing convenience, independence, status, employment opportunities, and entertainment. Cars add value to people’s lives in many ways.
Firstly, they provide convenience and mobility to people, allowing them to travel to different places easily and quickly. They also offer a sense of independence and freedom, as people are no longer restricted to public transportation schedules or walking distances.
Secondly, cars provide status and prestige to people who own them. Some people may choose to buy cars that are luxurious or high-end, which can boost their confidence and social status.
Thirdly, cars provide employment opportunities to many people. The automobile industry creates jobs for people in manufacturing, engineering, sales, and many other fields.
Finally, cars can also provide entertainment and recreation to people. Some people enjoy driving for fun, while others may use their cars to go on road trips or explore new places.
In conclusion, cars add value to people’s lives by providing convenience, independence, status, employment opportunities, and entertainment.
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Hello...I would like a rebuttal to this answer. Thanks!
Enterprise funds are accounted for on a full accrual basis. Thus, they are accounted for similarly to businesses. Governmental funds, by contrast, are accounted for on a modified accrual basis. The arguments in favor of using the full accrual basis for accounting for enterprise funds include the following: • The full accrual basis of accounting (i.e., a measurement focus on all economic resources) captures all the resources and obligations associated with an activity, including capital assets and long-term obligations. It provides a complete picture of the entity's financial position and operating results. • The measurement focus on all economic resources is more consistent with the GASB's objectives that financial reporting should provide information to determine whether current-year revenues were sufficient to pay for current-year services and to assist users in assessing service efforts, costs, and accomplishments. • Full accrual accounting provides information on depreciation, an essential cost of operations. • Business-type accounting facilitates comparisons with similar private enterprises. The arguments against including the following: • Two separate measurement focuses and bases of accounting within the same set of financial statements are confusing and limit the usefulness of government-wide consolidated statements that purport to present an overview of the entity as an economic whole. • There are no clear-cut distinctions between business and non-business activities. Despite many similarities, government activities cannot — and should not — be compared to activities carried out in the private sector. A government should have sound political and economic reasons — other than merely earning a profit — for conducting a particular action in the public sector. If it does not, then the activity should be privatized. These reasons suggest that the activities should be assessed by criteria other than profits — the "bottom line" of business-type financial reports. • Insofar as the full accrual basis is superior to the modified accrual basis, it should be used to account for all government activities, not merely business-type activities. Indeed, the above arguments can be applied to governmental and enterprise funds.
The use of full accrual basis for accounting for enterprise funds is justified for several reasons. It provides a comprehensive view of the entity's financial position and operating results by capturing all resources and obligations, including capital assets and long-term obligations.
This measurement focus aligns with the objectives of financial reporting and facilitates comparisons with private enterprises. Additionally, full accrual accounting offers valuable information on depreciation, a crucial cost of operations.
However, there are arguments against using full accrual basis, such as the potential confusion and limited usefulness of combining two different measurement focuses within the same set of financial statements. Furthermore, government activities should not be solely compared to private sector activities, as they serve different purposes and require different assessment criteria.
The proponents of using full accrual basis for enterprise funds argue that it provides a comprehensive view of the financial position and operating results. By including all economic resources and obligations associated with an activity, such as capital assets and long-term obligations, the full accrual basis ensures that nothing is overlooked.
This approach aligns with the objectives of financial reporting set by the Governmental Accounting Standards Board (GASB) to determine whether current-year revenues were sufficient to cover current-year services and to assess service efforts, costs, and accomplishments.
Furthermore, full accrual accounting allows for the inclusion of depreciation, which is an essential cost of operations for enterprises. Another argument in favor of full accrual basis is that it facilitates comparisons with private enterprises. By using similar accounting methods, it becomes easier to benchmark performance and evaluate efficiency.
This is particularly relevant for business-type activities within the government that function similarly to private businesses. The ability to make meaningful comparisons helps in assessing the effectiveness and competitiveness of government-operated enterprises. However, there are counterarguments against the use of full accrual basis for all government activities.
One concern is the potential confusion and limited usefulness of having two separate measurement focuses and bases of accounting within the same set of financial statements. This can make it challenging to present an overview of the entity as an economic whole when different accounting principles are applied. It may also complicate the interpretation of financial information for users of the statements.
Moreover, the nature of government activities and their objectives differ from those of private businesses. Government actions are driven by political and economic considerations, rather than solely focusing on earning a profit.
Therefore, comparing government activities to private sector activities solely based on financial performance may not provide a complete understanding of their purpose and impact. It is argued that government activities should be assessed by criteria other than profits, as the "bottom line" of business-type financial reports, to account for their broader societal objectives.
While the full accrual basis offers advantages for accounting enterprise funds, there are valid arguments against its universal application across all government activities. The decision to use full accrual accounting should consider the need for comprehensive financial reporting, the comparability with private enterprises, and the distinctiveness of government activities and objectives.
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The use of full accrual basis for accounting for enterprise funds is justified for several reasons. It provides a comprehensive view of the entity's financial position and operating results by capturing all resources and obligations.
This measurement focus aligns with the objectives of financial reporting and facilitates comparisons with private enterprises. Additionally, full accrual accounting offers valuable information on depreciation, a crucial cost of operations.
However, there are arguments against using full accrual basis, such as the potential confusion and limited usefulness of combining two different measurement focuses within the same set of financial statements. Furthermore, government activities should not be solely compared to private sector activities, as they serve different purposes and require different assessment criteria.
The proponents of using full accrual basis for enterprise funds argue that it provides a comprehensive view of the financial position and operating results. By including all economic resources and obligations associated with an activity, such as capital assets and long-term obligations, the full accrual basis ensures that nothing is overlooked.
This approach aligns with the objectives of financial reporting set by the Governmental Accounting Standards Board (GASB) to determine whether current-year revenues were sufficient to cover current-year services and to assess service efforts, costs, and accomplishments.
Furthermore, full accrual accounting allows for the inclusion of depreciation, which is an essential cost of operations for enterprises. Another argument in favor of full accrual basis is that it facilitates comparisons with private enterprises. By using similar accounting methods, it becomes easier to benchmark performance and evaluate efficiency.
This is particularly relevant for business-type activities within the government that function similarly to private businesses. The ability to make meaningful comparisons helps in assessing the effectiveness and competitiveness of government-operated enterprises. However, there are counterarguments against the use of full accrual basis for all government activities.
One concern is the potential confusion and limited usefulness of having two separate measurement focuses and bases of accounting within the same set of financial statements. This can make it challenging to present an overview of the entity as an economic whole when different accounting principles are applied. It may also complicate the interpretation of financial information for users of the statements.
Moreover, the nature of government activities and their objectives differ from those of private businesses. Government actions are driven by political and economic considerations, rather than solely focusing on earning a profit.
Therefore, comparing government activities to private sector activities solely based on financial performance may not provide a complete understanding of their purpose and impact. It is argued that government activities should be assessed by criteria other than profits, as the "bottom line" of business-type financial reports, to account for their broader societal objectives.
While the full accrual basis offers advantages for accounting enterprise funds, there are valid arguments against its universal application across all government activities. The decision to use full accrual accounting should consider the need for comprehensive financial reporting, the comparability with private enterprises, and the distinctiveness of government activities and objectives.
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In January 2006, Los Angeles-based Hilton Hotels Corpration annourwed that ffe company was
introducing a new luxury hotel line named the Waldorf Astoria Collection. Five weeks later, the company
announced that it finalized its acquisition of the lodging assets of British company Hilton Group plc
(Hilton Group) including its operating subsidiary, Hilton Intemational Co. Then in September in Moscow,
Hilton Hotels Corporation signed a long-term franchise agreement with Russian joint stock company
Sadko Hotel as franchisee. Also included in the agreement was the American company Interstate
Management Services, Inc. as the hotel operator for its first hotel, the upscale Hilton Moscow
Leningradskaya.
These and other developments enabled the company's leadership to announce, "In all,
2006 was quite a year, one of the most exciting and productive ever for Hilton Hotels Corporation. We hit
the ground running with the Hilton International acquisition, kept our eye on our strategic and
made significant progress toward all of our strategic goals." I
These events were important not only for Hilton Hotels Corporation, but reflected the expansion processes
in the global hotel industry as a whole. During the rise of in the hotel industry,
companies such as Hilton Hotels Corporation were in of finding new markets and setting
priorities.
In January 2006, Hilton Hotels Corporation announced the introduction of a new luxury hotel line called the Waldorf Astoria Collection. Shortly after, the company finalized the acquisition of the lodging assets.
Hilton Group plc, including Hilton International Co. This acquisition expanded Hilton Hotels Corporation's presence and assets.
In September of the same year, Hilton Hotels Corporation signed a franchise agreement with Sadko Hotel, a Russian joint-stock company, to establish its first hotel in Moscow, the Hilton Moscow Leningradskaya. The agreement also involved Interstate Management Services, Inc., an American company, as the hotel operator.
These developments were significant for Hilton Hotels Corporation and reflected the overall expansion happening in the global hotel industry. Companies like Hilton Hotels Corporation were actively seeking new markets and setting strategic goals to capitalize on the industry's growth. The year 2006 was described as one of the most exciting and productive for Hilton Hotels Corporation, as they made progress towards their strategic objectives.
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.- Each year a company receives $3.5 million, at the end of the year. For the first 3 years an interest rate of 8% will apply, for the last 2 years an interest rate of 11% will apply. a) What is the Future Value ? b) What is the Present Value?
a) Future ValueWe are supposed to find the future value of $3.5 million, at the end of the year. The interest rate for the first 3 years is 8%, and for the last 2 years, it's 11%.We'll use the Future Value formula to calculate it.
We'll use the Present Value formula to calculate it. The Present Value is the current worth of future cash flows after considering a rate of return over a specified period of time. It is calculated by discounting the future cash flows back to the present time using a discount rate.
Therefore, the formula for calculating the Present Value of a cash flow or investment at the beginning of n years can be written as:PV = FV/(1+r)nWhere:FV = $5,657,264.15r = Annual Interest Rate = 8% for the first 3 years, and 11% for the last 2 yearsn = 5 yearsThe formula gives us:PV = $5,657,264.15/(1+0.11)²/(1+0.08)³PV = $3,208,459.60Therefore, the present value of the company's money received after 5 years is $3,208,459.60.
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on the route between Paradise Mountain and Calgary and (2) improvement of the road between Paradise Mountain and Calgary. costs. Information about the two alternatives is shown below. Complete parts (a) through (c). a. Compute the benefit-cost ratio of both alternatives. Is each individually viable? b. Using an incremental benefit-cost ratio approach, which of the two alternatives should be chosen? Improvement - New Buses) would be . The alternative should be chosen in either case. (Round to three decimal places as needed.) c. Compute the present worths of the two alternatives. Compare the decision based on present worths with the decisions based on benefit-cost. (Round to the nearest dollar as needed.)
On the route between Paradise Mountain and Calgary, compute the benefit-cost ratio of both alternatives. Improvement of the road between Paradise Mountain and Calgary.
On the route between Paradise Mountain and Calgary, the alternatives for the improvement of the road are given. The alternatives and their initial cost and benefits are given below. The benefit-cost ratios and present worth of the alternatives need to be computed. Calculation of Benefit-Cost Ratio.
Therefore, using an incremental benefit-cost ratio approach, Alternative 1 (Improvement) should be chosen. Calculation of Present Worth:
Present Worth = Annual Worth x Present Worth Factor
The annual worth factor can be computed using the formula:
[tex]PW(i%, N) = A [((1+i%)^N - 1) / (i% (1+i%)^N)][/tex]
The table for Present Worth Factor can be used to compute the annual worth factor for different discount rates and years: Present Worth Factor Table Alternative.
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Suppose that on January 15,2010 , the Canadian government issued a five-year inflation-indexed note with a coupon of 4%. On the date of issue, the consumer price index (CPI) was 265. By January 15, 2015, the CPI had increased to 322 . What principal and coupon payment was made on January 15,2015? Assume that the face value is $1000. The principal amount of the bond increased to $ (Round to the nearest cent.) The semi-annual coupon payment is $ (Round to the nearest cent.)
An inflation-indexed bond is a bond in which the principal amount of the bond is adjusted periodically to account for inflation in the economy.
The coupons of these bonds are also adjusted periodically to account for the change in inflation. It allows the investor to earn a return on investment that is not affected by the inflation rate in the economy, thus providing some stability to the investment.
Given,
The Canadian government issued a five-year inflation-indexed note on January 15,2010, with a coupon of 4%. On the date of issue, the consumer price index (CPI) was 265. By January 15,2015, the CPI had increased to 322. The face value is $1000.
To find: What principal and coupon payment was made on January 15,2015?
We know that the coupon payment of the bond is 4% of the face value, which is $1000.
Therefore, the semi-annual coupon payment is $20.
The CPI has increased from 265 to 322 over 5 years.
The principal amount of the bond would be increased by the same percentage as the CPI.
We can use the formula:
Principal amount = (CPI at maturity/CPI at issue date) x Face value of the bond
Where CPI is the Consumer Price Index
Hence,
The principal amount of the bond increased to (322/265) × $1000 = $1215.09 (rounded to the nearest cent)
The semi-annual coupon payment is $20 (rounded to the nearest cent).
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American General offers a 13-year annuity with a guaranteed rate of 9.54% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $700 annually over the 13 year period? How much should a customer pay for this annuity? $ (Round to the nearest cent.)
A customer should pay approximately $6,037.53 for this annuity.
By using the given parameters of the annuity, including the number of years (13), annual payment ($700), and interest rate (9.54% compounded annually), we can calculate the present value of the annuity using the present value formula. After performing the calculation, we find that the customer should pay approximately $6,037.53 for this annuity. This amount ensures that they will receive annual payments of $700 over the 13-year period. To calculate the amount that should be paid for the annuity, we can use the present value formula for an annuity.
Given:
Number of years (n) = 13
Annual payment (PMT) = $700
Interest rate (r) = 9.54% (convert to decimal: 0.0954)
The present value (PV) can be calculated using the formula:
PV = PMT * (1 - (1 + r)^(-n)) / r
Substituting the given values into the formula:
PV = $700 * (1 - (1 + 0.0954)^(-13)) / 0.0954
Using a calculator, we find that the present value (amount to be paid for the annuity) is approximately $6,037.53.
Therefore, a customer should pay approximately $6,037.53 for this annuity in order to receive annual payments of $700 over the 13-year period.
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An IT firm consisting of several subsidiary units works on the development of software for alloy die casting. The firm conducts regular surveys about their own products already on the market. Recently, the managing body of the firm directed the software architects to evaluate the performance of the software application and decided to initiate a software quality improvement program by which they could enhance the quality attributes of their existing software along with up-gradation of new selling target. Hence the IT firm planned to start multi-site development at various locations for better economic reasons. A. In this context suggest by highlighting one instance that how the potentiality of scalability for this multi-site development approach of the newly developed product can be impacted in a positive and negative manner. (2+2=4) B. In this context suggest by highlighting one instance that how the potentiality of performance for this multi-site development approach of the newly developed product can be impacted in a positive and negative manner.
Scalability is defined as a characteristic of software application or system which allows it to handle an increased amount of work by adding resources.
For this multi-site development approach of the newly developed product, the potentiality of scalability can be impacted in a positive manner because as the product is developed on different locations, there are chances of errors, bugs and lagging, but these issues can be easily identified and resolved on-site basis. On the other hand, the potentiality of scalability can be impacted negatively if the development of software application at various locations does not have a proper communication and collaboration system among them which can lead to inconsistency in product development and finally to production of non-uniform software products which can lead to a negative impact on the scalability of the product.
The potentiality of performance for this multi-site development approach of the newly developed product can be impacted positively because with multi-site development, there is an availability of ample resources for the development team, including enhanced human resources, testing, and feedback cycles that allow the development team to concentrate more on product quality and less on distribution costs. Additionally, multi-site development helps to increase the innovation, speed, and the overall quality of the software product. The downside to this approach is that if the communication and collaboration among the different locations and teams are poor, it could impact the performance negatively. It can lead to conflicts, misunderstandings, duplication of work, and problems with achieving uniformity in the software products. These issues will ultimately result in a negative impact on the product's performance.
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Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $200. Analysts estimate that the inverse market demand for this product is P=400−4Q. a. Determine the equilibrium level of output in the market. b. Determine the equilbrium market price. $ c. Determine the profits of each firm. $
Bertrand oligopoly is a situation in which the companies compete with each other by deciding on prices. In this oligopoly market.
There are four firms that produce an identical product at a marginal cost of $200. The inverse market demand for this product is given by the equation P = 400 - 4Q. We will solve this problem in three parts. Equilibrium level of output in the market.
Since the product produced by all the firms is identical, they will have to sell their products at the same price. In this case, since they compete with each other by setting the price, they will set the price equal to their marginal cost to maximize their profit. Therefore.
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E16-17 Various Unrelated Transactions [LO 16-4]
Following are several unrelated transactions involving a hospital.
1. The hospital has a contractual agreement with a lender requiring that $600,000 in cash be set aside to meet its future debt payment.
2. The hospital accrued $1,600,000 in patient service revenues. Charity services of $465,000 were also provided. Contractual adjustments total $585,000.
3. An increase of $55,000 was recorded for bad debts.
4. General services of $200,000 were donated by technicians. Normally, the hospital would have purchased these specialized services.
5. An endowment contribution of $1,600,000 was received.
6. Investments held by the hospital increased in fair value by $42,000.
7. The hospital purchased $847,000 in equipment with resources that had been contributed in prior years for such a purchase.
Required
a. Prepare journal entries to record the foregoing transactions, assuming the hospital is a not-for-profit facility. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
b. Prepare journal entries to record the foregoing transactions, assuming the hospital is a business-type government facility. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
A journal entry is a way of recording any transaction, whether it is economic or not. An accounting diary that displays the credit and debit positions of a corporation lists transactions. Multiple recordings, every one of which can be a type of debit or credit, may be included in the journal entry.
A journal entry acts as a record of a commercial transaction in your company's books. In double-entry bookkeeping, each transaction necessitates the creation of at least two distinct entries. A bookkeeper tracks all the alterations that a transaction might make to a company by noting them in their diary.
Simply enter one debit along with one credit in your journal. Include more than two accounts, or more than one credit alongside a debit, in your diary entries. At the end of a particular accounting month, adjusting journal entry are made to address problems like unpaid invoices and ensure that the books are in balance.
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Ivy Com, has received a request for a special order of 9,000 units of product G4 for $46.15 each. The normal selling price of this product is 551.16cach, but the units would need to be modified slightly for the customer. The normal unit product cost of product G4 is computed as follows: Direct materials $17.68. Dirct labor $6.31 Variable manufacturing overhead \$3.84 Fixed manufacturing overhead $6.70 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overthead costs. The customer would like some modifications made to product G4 that would increase the variable costs by $6.03 per tnit and that would require a one-time imvestment of $46410 in special molds that would have no salvage value. This special order would have no effect on the company's otber sales. The company has ample spare capacity for producing the special order. Determine the effect on total net operating income of accepting the special order. Round only your final answer to the nearest dollar and enter a loss as negative, a gain as positive.
Accepting the special order would result in an increase in total net operating income of $64,200.
To determine the effect on total net operating income of accepting the special order, we need to calculate the incremental costs and revenues associated with the order.
Incremental revenue:
Number of units in the special order: 9,000
Selling price per unit: $46.15
Incremental revenue = 9,000 units × $46.15 per unit = $415,350
Incremental costs:
Direct materials: $17.68 per unit
Direct labor: $6.31 per unit
Variable manufacturing overhead: $3.84 per unit
Additional variable costs per unit due to modifications: $6.03 per unit
Total variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead + Additional variable costs
Total variable cost per unit = $17.68 + $6.31 + $3.84 + $6.03 = $33.86
Incremental fixed costs:
There are no incremental fixed costs since the special order would have no effect on total fixed manufacturing overhead costs.
One-time investment in special molds: $46,410
Total incremental costs:
Total variable cost = Total variable cost per unit × Number of units in the special order
Total variable cost = $33.86 × 9,000 units = $304,740
Total fixed costs = $0 (no incremental fixed costs)
Total one-time investment = $46,410
Total incremental costs = Total variable cost + Total fixed costs + Total one-time investment
Total incremental costs = $304,740 + $0 + $46,410 = $351,150
Effect on total net operating income:
Net operating income effect = Incremental revenue - Total incremental costs
Net operating income effect = $415,350 - $351,150 = $64,200
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of the five-year period, Ybarra must pay the bond holders a balloon payment of $400,000. a. What would the issue price of the bonds be if the prevailing interest rate is: Round answers to the nearest whole number. (i) 4%$ (ii) 6%$ b. Compute the market price of these bonds on November 1, 2017 assuming that the prevailing market interest rate at that 8% Round answer to the nearest whole number. q
The issue price of the bonds with a prevailing interest rate of 6% would be approximately $311,434.
To calculate the issue price of the bonds, we can use the present value formula. The present value of the balloon payment can be calculated as the discounted value of the future payment.
a. Assuming the prevailing interest rate is:
(i) 4%
(ii) 6%
Let's calculate the issue price for each case:
(i) Prevailing interest rate of 4%:
To calculate the issue price, we need to discount the $400,000 balloon payment back to its present value using a 4% discount rate. Since the balloon payment is due after five years, we will discount it for five periods.
Issue price = $400,000 / (1 + 0.04)^5
Issue price ≈ $329,481
Therefore, the issue price of the bonds with a prevailing interest rate of 4% would be approximately $329,481.
(ii) Prevailing interest rate of 6%:
Using the same formula, we can calculate the issue price with a 6% discount rate.
Issue price = $400,000 / (1 + 0.06)^5
Issue price ≈ $311,434
b. To compute the market price of these bonds on November 1, 2017, assuming a prevailing market interest rate of 8%, we need to compare the coupon rate of the bond (which is not provided) with the prevailing market interest rate.
If the coupon rate is equal to the market interest rate of 8%, the bond will be priced at its face value, which is typically $1,000 or $1,000 per bond.
If the coupon rate is higher than 8%, the bond will be priced at a premium (above face value).
If the coupon rate is lower than 8%, the bond will be priced at a discount (below face value).
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From the project plan, we that a project has a total budgeted cost of $983,112 and a project completion time of 18 weeks. At the moment, the project has been in a performing stage. At the end of week 8 , the project progress report shows that the project has consumed a total of $310,635, the project cumulative earned value is $285,084, and the project schedule performance index is 0.88. What is the value of the cost variance at the end of week 8?
The value of the cost variance at the end of week 8 is $28430.68.
According to the given data; The project total budgeted cost = $983,112
The project completion time = 18 weeks
The project is currently in the performing stage The project has consumed = $310,635
The project cumulative earned value = $285,084
The project schedule performance index = 0.88
So, we have to find the value of the cost variance at the end of week 8.
Here, we will use the cost variance formula:
COST VARIANCE (CV) = Earned Value (EV) - Actual Cost (AC) CV = EV - AC
And, Earned Value (EV) = (Percent completed) x (Total budget)
Earned Value (EV) = (285,084/983,112) x 100% = 29.00%
Actual Cost (AC) = $310,635
Cost Variance (CV) = EV - AC= (Percent completed) x (Total budget) - Actual cost CV = (29.00%) x ($983,112) - $310,635 = $28430.68
Therefore, the value of the cost variance at the end of week 8 is $28430.68.
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April decided to deposit $7,000 into a CD that offers her an APR of 5.4 percent with quarterly compounding for 3 years. How much money will she have in this CD when it matures in 3 years?
The problem concerns determining how much money April will receive after depositing $7,000 into a CD offering her an annual percentage rate (APR) of 5.4% compounded quarterly for three years. To solve the problem, we will utilize the following formula:
[tex]A = P(1 + r/n)^nt[/tex]
where: A = the total amount accumulated after time t P = the principal amount (initial investment) r = the annual interest rate (as a decimal) n = the number of times the interest is compounded per year t = the number of years The information given in the problem is as follows:Principal amount (P) = $7,000 Annual interest rate (r) = 5.4%
Compounding frequency (n) = 4 times per year (quarterly)Time (t) = 3 years Substituting these values into the formula above, we have:A = $7,000(1 + 0.054/4)^(4 x 3)A = $7,000(1.0135)^12A = $7,000(1.4818)A = $10,373.03 Therefore, after three years, April will have $10,373.03 in the CD when it matures.
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TRUE/FALSE. resort gift shop is operated as a partnership, with five partners. shan has a one-third interest in the firm. each of the other partners has a one-sixth interest. thieu is the senior partner. with respect to management decisions
True. In a partnership, the management decisions are typically made by the partners collectively. In this case, the resort gift shop is operated as a partnership with five partners. Shan has a one-third interest in the firm, and each of the other partners has a one-sixth interest. Thieu being the senior partner means that he has a higher position or authority within the partnership. As a result, Thieu may have more influence or decision-making power when it comes to management decisions. However, it is important to note that major decisions should be made collectively by all the partners, as this is a characteristic of partnerships.
a. Whit would Rockis profit margin be if the Lime division were dropped? b. What would Rock's profit margin be if the Nina division were dropped?
a. The profit margin is the amount by which revenue from sales exceeds costs of goods sold or production. It is usually expressed as a percentage of sales. Rock Company has two divisions, Lime and Nina. If Lime division is dropped, it would result in a decrease in both revenue and expenses.
The costs associated with Lime division, including the cost of goods sold, direct labor costs, and direct materials costs would all decrease, while sales revenue would also decrease. However, the decrease in expenses would be greater than the decrease in revenue, as the Lime division was operating at a loss. Thus, the profit margin would increase if Lime division were dropped.b. Similarly, if the Nina division were dropped, it would also result in a decrease in both revenue and expenses.
It is important to note that dropping a division may have other impacts beyond the changes in revenue and expenses. It may also affect the overall business strategy and future growth potential of the company. Therefore, the decision to drop a division should be carefully considered based on a variety of factors, not just the impact on profit margin.
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A government's policy of redistributing income makes the income distributiona. more equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient.b. more equal, distorts incentives, alters behavior, and makes the allocation of resources more efficient.c. less equal, distorts incentives, alters behavior, and makes the allocation of resources more efficient.d. less equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient.Question 35The marketplace allocates resourcesa. to those desiring them least.b. efficiently.c. fairly.d. both efficiently and equitably.Question 36A typical worker’s normal or average income is calleda. the life cycle.b. in-kind transfers.c. transitory income.d. permanent income.
34. A government's policy of redistributing income makes the income distribution more equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient. Hence, Option (A) is correct.
35. The marketplace allocates resources efficiently. Hence, Option (B) is correct.
36. A typical worker’s normal or average income is called permanent income. Hence, Option (D) is correct.
34. When a government implements a policy of income redistribution, it aims to make the income distribution more equal by taking from higher-income individuals or groups and transferring it to lower-income individuals or groups.
While this redistribution may address income inequality, it can have unintended consequences.
Thus, the unintended effects result from the redistribution of income and can hinder economic productivity and efficiency.
35. Through the forces of supply and demand, market participants determine the prices and quantities of goods and services, leading to an efficient allocation of resources based on consumer preferences and producer capabilities.
Thus, the marketplace allocates resources more efficiently than others.
36. A typical worker's normal or average income represents the expected long-term income that a worker can rely on and is based on factors such as education, skills, and experience.
Permanent income is distinguished from transitory income, which refers to temporary fluctuations in income due to factors like bonuses, overtime pay, or one-time windfalls.
Thus, permanent income is how a typical worker’s normal or average income is referred to.
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Question 34
A government's policy of redistributing income makes the income distribution
a. more equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient.
b. more equal, distorts incentives, alters behavior, and makes the allocation of resources more efficient.
c. less equal, distorts incentives, alters behavior, and makes the allocation of resources more efficient.
d. less equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient.
Question 35
The marketplace allocates resources
a. to those desiring them least.
b. efficiently.
c. fairly.
d. both efficiently and equitably.
Question 36
A typical worker’s normal or average income is called
a. the life cycle.
b. in-kind transfers.
c. transitory income.
d. permanent income.
You want to have a maximum payment of $1000. Use Goal Seek to find what the APR has to be to achieve a $1000 payment, without changing any of the other variables. Do not edit the APR cell after running Goal Seek.
Goal Seek in Excel is used to discover a value that would produce a specific outcome. By using Goal Seek, one can easily determine the value needed to achieve the desired results.
Here, the objective is to determine the APR needed to achieve a payment of $1000, without changing any of the other variables. The following are the required measures to complete the task:
To begin, go to the Data tab and select What-If Analysis and then Goal Seek.
Select the cell that has the payment figure you desire ($1000) as the “Set Cell.”
Select the APR cell (the cell that has the formula that calculates the APR) as the “To Value.” Excel will give you the option to alter the value to meet your needs. Press Enter once you’ve selected the values and click OK.
Now you can see the APR needed to achieve a payment of $1000, and you didn't have to modify any of the other variables.
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, consider how societal and organizational structures
(critical
management theory in Week 2) affect individual managers' ability to move toward a
more professional management practice.
The concept of critical management theory is based on the idea that managers are not objective and neutral and that their personal interests and societal values influence their decision-making. The organizational and societal structures shape the way managers think and act, influencing their ability to move toward more professional management practices.
Critical management theory is a theoretical framework that critiques the assumptions and practices of traditional management theories. It emphasizes that managerial decisions and practices are not objective but rather are influenced by the managers' personal interests, societal values, and power relationships in the organization. The societal and organizational structures affect individual managers' ability to move toward a more professional management practice in several ways.
The societal structures in which organizations operate shape the behavior of managers. Society's expectations of managers and their behaviors have a significant impact on organizational structures. For instance, organizations are expected to operate in a socially responsible manner, which means that managers must take into account societal expectations and values while making decisions.
Organizational structures, such as hierarchies, reward systems, and communication channels, also affect the managers' ability to move towards more professional management practices. For instance, if an organization has a hierarchical structure, it may make it difficult for managers to share their ideas and collaborate with their peers. Additionally, if the reward system does not incentivize professional behavior, it may be difficult for managers to adopt professional management practices. Therefore, societal and organizational structures shape individual managers' behavior and affect their ability to move towards more professional management practices.
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Toyochem Specialty Chemical Sdn Bhd purchases a compound that is then processed to yield three types of acids: Sulfuric acid, Acetic acid and Nitric acid. In January 2022, Toyochem purchased 10,000 gallons of the compound at a cost of RM280,000 and the company incurred joint production cost of RM40,000. Sales and production information for the month of January 2022 is as follows: (Note: round up all decimal points to two decimal points where applicable) Sulfuric acid and Acetic acid are sold to other chemical companies at the split off point. Nitric acid can be sold at the split off point or processed further into ammonia nitic for the manufacture of fertilizer. Required: Compute and allocate the total joint cost to three products using: a) Physical unit method. (3 marks) b) Sales-value at split of point. (3 marks) c) Net realizable value method. (3 marks)
To allocate joint cost using this method, we use the physical output of each product in proportion to the total physical output of all three products.
The formula for calculating this is: Joint cost allocation per unit = Joint cost / Total physical output Compute and allocate the total joint cost to three products using the physical unit method as follows:
Joint cost = RM 40,000 Total physical output = 10,000 gallons
(since all the three types of acids are produced from this quantity of compound)
Sulfuric acid output = 4,000 gallons Acetic acid output = 3,000 gallons
Nitric acid output = 3,000 gallons
Joint cost allocation per unit for sulfuric acid [tex]= 40,000 / 10,000 = RM[/tex] 4
Joint cost allocation per unit for acetic acid = 40,000 / 10,000 = RM 4
Joint cost allocation per unit for nitric acid = 4[tex]0,000 / 10,000 = RM[/tex]4
To allocate joint cost using this method, we use the relative sales value of each product at the split off point. The formula for calculating this is: Joint cost allocation per unit = Joint cost * (Relative sales value / Total relative sales value)Compute and allocate the total joint cost to three products using the sales-value at split of point method as follows:
Sulfuric acid sales value = RM 4 per gallon Acetic acid sales value = RM 6 per gallon
Nitric acid sales value at split off point = RM 5 per gallon
Total sales value at split off point = [tex]RM 4 + RM 6 + RM 5 = RM[/tex] 15
Joint cost allocation per unit for sulfuric acid = 40,000 * (4/15) = RM 10,667
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an auditor selected a product maintained in the finished goods warehouse. the auditor counted the product and compared this amount with the amount in the finished goods perpetual inventory subsidiary account. which asb balance assertion is the auditor most likely testing?
This audit procedure is essential to ensure that the company's financial statements accurately reflect the value of its finished goods inventory.
The auditor is most likely testing the accuracy assertion of the finished goods inventory.
In auditing, the accuracy assertion refers to the correctness and accuracy of the financial information presented in the company's financial statements. By counting the physical inventory and comparing it to the amount recorded in the finished goods perpetual inventory subsidiary account, the auditor is verifying whether the recorded inventory quantity is accurate and in agreement with the actual physical inventory on hand.
Any discrepancies found during the audit may indicate potential errors in recording, misstatements, or other issues related to inventory management and control.
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Lando Corporation is a domestic company with two wholly owned subsidiaries. Michaels, CPA, has been engaged to audit the financial statements of the parent company and one of its subsidiaries and to serve as the group auditor. Thomas, CPA, has audited the financial statements of the other subsidiary whose operations are material in relation to the consolidated financial statements.
The work performed by Michaels is sufficient for serving as the group auditor and to report as such on the financial statements. Michaels has not yet decided whether to refer to the part of the audit performed by Thomas.
Identify and discuss two reporting requirements with which Michaels must comply in naming Thomas and referring to the work done by Thomas.
Two reporting requirements that Michaels, CPA, must comply with in naming Thomas and referring to his work are: 1. Disclosure of the identity of the other auditor: Michaels must disclose Thomas, CPA, as the auditor of the subsidiary whose operations are material in relation to the consolidated financial statements.
2. Description of the extent of the work performed by the other auditor: Michaels must provide information about the scope of Thomas' audit procedures and the reliance placed on his work in the overall audit of the group financial statements.
1. Disclosure of the other auditor's identity is necessary to provide transparency and allow stakeholders to understand the involvement of multiple auditors in the audit process.
2. Describing the extent of the work performed by the other auditor helps users of the financial statements assess the degree of reliance placed on that auditor's findings and conclusions. It provides insights into the division of responsibilities between the group auditor and the other auditor.
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You are senior on the audit of Rexxon (Pty) Ltd, a medium sized wholesaler of stationery and supplies. All of the company's financial systems are computerized and you have been asked to assist in the
This documentation serves as a record of the work performed and is essential for reporting to the client and management.
As a senior on the audit of Rexxon (Pty) Ltd, a medium-sized wholesaler of stationery and supplies, with all of the company's financial systems computerized.
If you have been asked to assist in the preparation of an audit programme, you should do the following:
Assess the risk: First and foremost, assess the risk associated with the client and the audit, and design audit procedures to address those risks.
Understand the client: Conduct interviews with management to gain a better understanding of the client's processes, internal controls, and how they work.
Create a list of audit procedures: Based on your assessment of the risk and understanding of the client, you should create a list of audit procedures that are tailored to the client's specific circumstances.
Set up a timeline: Establish a schedule for performing the audit procedures, ensuring that they are performed in a timely and efficient manner.
Assign tasks: Assign tasks to team members as needed to ensure that all audit procedures are performed effectively.
Document your work: Document your work in an audit program, including the procedures you performed, the evidence you collected, and any findings or issues that you identified.
This documentation serves as a record of the work performed and is essential for reporting to the client and management.
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Column A
Column B
General Manager
2. Sales Manager
3. Human Resources
4. Housekeeping
5. Food & Beverage
Time left for
assessme
156:1
a. Deliver food and beverage and related services and amenities to all customers.
b. Able to work in all the departments
Empty bins and all garbage's
d. General upkeep of the building including interior and exterior
e. Ensure that all staff work according to government rules and notify of any wrong doing
f. Incharge of only the revenue generating departments to make profit
g. General maintenance of all equipments
h. Delivery of food to only inhouse guest
i. Clean and sanitize all guest and staff areas
J. Bring in new business and maintain client relation to retain existing business
k.. Meeting clients and telling them how they should run their business
1. Work around policies that will best suit the establishment and staff
m. Manages the profitability of the whole operations by leading the team
The General Manager oversees overall operations, maximizes revenue, coordinates departments, ensures compliance, maintains cleanliness, expands clientele, and follows guidelines.
The General Manager is in charge of managing the business' overall operations and guaranteeing its profitability. To maximize revenue and successfully control costs, they manage a team and make strategic decisions. To guarantee efficient operation and coordination, they collaborate closely with all departments, including Sales, Human Resources, Housekeeping, and Food & Beverage. The general manager makes sure that everyone on staff complies with all laws and standards, and that any infractions are dealt with right away. They are also in responsible of ensuring the cleanliness and general upkeep of the structure, both inside and out. The general manager also concentrates on expanding the company's clientele and developing new business to keep current clients. They operate within specified guidelines to create a setting that is ideal for the establishment and its workers.
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Question 10 AEC Company began Year 1 with $50.000 in Cash and Common Stock. On January 1 , Year 1 , ABC Company issued a $250,000. of 20 -year 10 s. bonds. The bonds were issued at face value. Interest is paid on December 31 each year. If this is the only activity in Year 1 which section of the Statement of Cash Flows will display a cash outflow? Financiriz Actities No section of the Statement of Cash Flows will incur an outflow. lnvesting Activities Opcrating Activitics Question 9 On March 1. Year 1. ABC Company received $40,000 cash from the issue of a two-year, 6% note. What is ABC Company's Total Liabilities for Year 1? 542,400 $40.000 $42.000 $40,400 Next
Based on the information provided, the issuance of $250,000 of 20-year 10% bonds on January 1, Year 1, at face value would result in a cash inflow in the financing activities section of the Statement of Cash Flows.
Therefore, the correct answer to Question 10 is: Financing Activities.
Based on the information provided in the question, ABC Company received $40,000 cash from the issue of a two-year, 6% note on March 1, Year 1. This means that ABC Company borrowed money by issuing a note payable. The note payable represents a liability for the company since it owes the principal amount borrowed plus interest.
To calculate the total liabilities for Year 1, we need more information. Specifically, we need to know the amount of the note payable and any other liabilities the company may have incurred throughout the year. Without that information, we cannot determine the exact total liabilities for Year 1. Therefore, none of the provided options ($542,400, $40,000, $42,000, $40,400) can be considered as the correct answer for Question 9.
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arnold industries started the year with $104,800 cash and reported net cash provided by operating activities of $210,000, cash paid for dividends of $42,400, cash received from stock issuance of $34,000, cash paid for equipment purchases of $152,000, cash paid for intangible assets of $106,000, and cash paid on bank loan of $37,000. required: calculate the following: 1. net cash provided by (used in) investing activities. 2. net cash provided by (used in) financing activities. 3. ending cash. 4. free cash flow.
1. Net cash provided by (used in) investing activities: $-258,000
2. Net cash provided by (used in) financing activities: $-3,400
3. Ending cash: $126,400
4. Free cash flow: $58,000
1. Net cash provided by (used in) investing activities: $-258,000
Net cash provided by (used in) investing activities reflects the cash flows associated with the purchase or sale of long-term assets. In this case, Arnold Industries paid $152,000 for equipment purchases and $106,000 for intangible assets. Therefore, the net cash used in investing activities can be calculated as the sum of these two amounts:
Net cash provided by (used in) investing activities = Cash paid for equipment purchases + Cash paid for intangible assets
= $152,000 + $106,000
= $258,000 (negative because it represents cash used)
2. Net cash provided by (used in) financing activities: $-3,400
Net cash provided by (used in) financing activities represents the cash flows associated with obtaining or repaying capital from various financing sources. In this case, Arnold Industries received $34,000 from stock issuance and paid $37,000 on a bank loan. Additionally, $42,400 was paid as dividends. To calculate the net cash provided by (used in) financing activities, we sum up these amounts:
Net cash provided by (used in) financing activities = Cash received from stock issuance + Cash paid on bank loan + Cash paid for dividends
= $34,000 + (-$37,000) + (-$42,400)
= $-3,400 (negative because it represents cash used)
3. Ending cash: $126,400
To calculate the ending cash balance, we need to consider the initial cash balance, net cash provided by operating activities, net cash provided by (used in) investing activities, and net cash provided by (used in) financing activities. We can calculate the ending cash balance using the following formula:
Ending cash = Initial cash + Net cash provided by operating activities + Net cash provided by (used in) investing activities + Net cash provided by (used in) financing activities
= $104,800 + $210,000 + (-$258,000) + (-$3,400)
= $126,400
4. Free cash flow: $58,000
Free cash flow represents the cash generated by a company's operations that is available for discretionary purposes, such as reinvestment in the business, debt repayment, or distribution to shareholders. It is calculated by subtracting capital expenditures (equipment purchases) from net cash provided by operating activities. In this case, the calculation would be as follows:
Free cash flow = Net cash provided by operating activities - Cash paid for equipment purchases
= $210,000 - $152,000
= $58,000
Therefore, Arnold Industries had a free cash flow of $58,000.
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Clouds Ltd. produces assembling machines. The company expected to have total overheads of E240,000 and to produce 4,000 assembling machines. The actual production equals 1,800 assembling machines and the actual fixed production overheads equal £190,000. Considering this information, which of the following statements is true? a. There is over-absorption of overheads of £108,000. b. There is under-absorption of overheads of £108,000 which increases profit. c. There is under-absorption of overheads £82,000. d. None of the answers is true.
Calculation of the overhead rate per machine: The overhead rate per machine-hour is calculated by dividing the total budgeted overhead costs by the total budgeted machine-hours for the year. The budgeted overhead cost of E240,000 will be divided by the expected machine hours of 4,000 hours for the year. Thus, the overhead rate per machine-hour is calculated as follows: E240,000 / 4,000 machine hours = E60 per machine hour
Calculation of the expected overhead cost for 1,800 machines: Using the calculated overhead rate per machine-hour of E60, we can find the expected overhead cost for the actual production level of 1,800 machines. The expected overhead cost is calculated as follows:
1,800 machine-hours x E60 per machine hour = E108,000
Now let's determine the under or over-absorption of the overheads: We'll calculate the difference between the expected overhead cost and the actual fixed production overheads. A firm with higher overheads than the expected overhead cost experiences over-absorption, whereas a firm with lower overheads than the expected overhead cost experiences under-absorption of overheads. We'll use the following formula to compute the over-absorption/under-absorption amount: Actual overhead cost - Expected overhead cost Now that we have actual fixed overheads of £190,000 and expected overheads of £108,000 for 1,800 machines, we can determine whether there is under-absorption or over-absorption of overheads.
Under absorption of overheads = Actual overheads - Expected overheads= £190,000 - £108,000= £82,000
Therefore, there is under-absorption of overheads £82,000.
Option (c) is correct.
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