Atkinson Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 2016, Atkinson budgets 2017 assembly-support costs to be $8,800,000 and 2017 direct labor-hours to be 220,000.At the end of 2017, Atkinson is comparing the costs of several jobs that were started and completed in 2017.Laguna Model Mission ModelConstruction period Feb-June 2017 May-0ct 2017Direct material costs $106,550 $127,450Direct labor costs $ 36,250 $41,130Direct labor-hours 970 1,000Direct materials and direct labor are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labor-hours are worked. The 2017 actual assembly-support costs were $8,400,000, and the actual direct labor-hours were 200,000.Required:1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ?2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b) actual costing?3. Why might Atkinson Construction prefer normal costing over actual costing?

Answer:

2500

Explanation:

First depreciate for 6 years using regular method: (Cost - Salvage Value)/Initial Useful life

(50,000-10,000)/8 = 5000 <- this is annual depreciation

For 6 years, $30,000 accumulated depreciation

Now to calculate change in useful life, you do (Cost - Accumulated Depreciation - Salvage Value)/Remaining Useful life

Remaining Useful life = 10-6 = 4

(50,000-30,000-10,000)/4 = 2500

Answer:

Number of shares to be issued =  60,000  units

Explanation:

A private placement involves the issue of new shares to a few number of individual and institutional investors. Unlike initial public offering, here the shares are not offered to the general public.

The number of units to be issued is determined as follows

Units to be issued = Total capital to be raised / issue price per share

Number of units to be raised = $1215,000/$20.25 per share= 60,000  units

Number of shares to be issued =  60,000  units

Here is the full question.

The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenue producing investments together with annual rates of return are as follows:

Type of Loan/Investment               Annual Rate of Return (%)

Automobile loans                                8

Furniture loans                                   10

Other secured loans                          11

Signature loans                                 12

Risk-free securities                            9

The credit union will have $1.6 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments.

Risk-free securities may not exceed 30% of the total funds available for investment.

Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans).

Furniture loans plus other secured loans may not exceed the automobile loans.

Other secured loans plus signature loans may not exceed the funds invested in risk-free securities.

How should the $1.6 million be allocated to each of the loan/investment alternatives to maximize total annual return? Round your answers to the nearest dollar.

Automobile Loans $  

Furniture Loans $  

Other Secured Loans $  

Signature Loans $  

Risk Free Loans $  

What is the projected total annual return? Round your answer to the nearest dollar.

$  

Answer:

Explanation:

Let the amount invested in:

Automobile loans be Xa,

Furniture Loans be Xf,

Other Secured Loans be Xo,

Signature loans be Xs,    &;

Risk-free loans be Xr

In reference  on the Annual returns rate given;

Total annual returns = 8%×Xa + 10%×Xf + 11%×Xo + 12%×Xs + 9%×Xr

The various constraints given can be written as follows:

Xa + Xf + Xo + Xs + Xr = 1,600,000-----Constraint for amount available for investment

Xr = 30%*1,600,000 ----- Constraint for maximum risk free investment

Xs = 10%*(Xa + Xf + Xo + Xs) -----  Constraint for maximum amount in signature loans

Xf + Xo = Xa ------- Constraint for Furniture and other secured loans

Xo + Xs = Xr  ------ Constraint for other secured loans and signature loans

Using the Excel Formula for solving this;

we have the following result.

Automobile Loans                     $ 504,000

Furniture Loans                         $ 136,000

Other Secured Loans               $ 368,000

Signature Loans                        $ 112,000

Risk-Free Loans                        $ 480,000

The projected total annual return = $ 151,040

The computation of the excel formula on how we arrived at those valid figures above is shown in the attached files below.

Thanks!

Answer:

In the short run, as long as the contribution margin is positive he should continue in the industry. In the long run, if the company keeps losing money, he should leave the industry.

Explanation:

Giving the following information:

Bob mows lawns for $30 each. His total cost each day is $320, of which $70 is a fixed cost. He mows 10 lawns a day.

First, we need to calculate the unitary variable cost:

Total variable cost= 320 - 70= 250

Unitary varaible cost= 250/10= $25

Contribution margin= 30 - 25= $5

In the short run, as long as the contribution margin is positive he should continue in the industry. In the long run, if the company keeps losing money, he should leave the industry.

Answer: Disintermediated entitles or newcomers take on new Intermediary roles

Explanation:

Disintermediation refers to, for example, stockbrokers who only execute trade manually being left behind because of the development of online transactions.

However, new developments might bring new intermediary roles. Following our example, brokers who turn to electronic intermediation (or newcomers who take on the new intermediary role) prosper through reintermediation

Answer:

Find attached correct question that matches the options provided in this question:

The correct option is B, a credit to Interest Revenue for $2,700

Explanation:

The semiannual coupon interest receivable from the bond investment is the face value of $54,000 multiplied by 10% adjusted to reflect a six month revenue rather than a year a shown below:

semiannual interest receipt=$54,000*10%*6/12=$2,700

The $2,700 would be debited to cash as an income while also being credited to interest revenue ,hence option B is correct

Answer:

a. 0.15

b. $7.15 per share

c. $6.55

Explanation:

a. What will be the debt-to-equity ratio if it borrows $220,000?

Market value of equity = 17,000 * $100 = $1,700,000

Since the proceeds of a debt issue of $270,000 is used to buy back stock, we have:

Remaining market value of equity = $1,700,000 - $220,000 = $1,480,000

Therefore,

Debt-to-equity ratio = Debt / Remaining market value of equity = $220,000 / $1,480,000 = 0.15.

b. If earnings before interest and tax (EBIT) are $130,000, what will be earnings per share (EPS) if Reliable borrows $220,000?

Remaining number of shares = Remaining market value of equity / Market price per share = $1,480,000 / $100 = 14,800 shares

Interest on debt = $220,000 * 11% = $24,200

Tax = $0

Earning after interest and tax = EBIT - Interest on debt - Tax = $130,000 - $24,200 - $0 = $105,800

EPS = Earning after interest and tax / Remaining number of shares = $105,800 / 14,800 = $7.15 per share

c. What will EPS be if it borrows $420,000?

Remaining number of shares = ($1,700,000 - $420,000) / $100 = 12,800 shares

Interest on debt = $420,00 * 11% = $46,200

Tax = $0

Earning after interest and tax = EBIT - Interest on debt - Tax = $130,000 - $46,200 - $0 = $83,800

EPS = Earning after interest and tax / Remaining number of shares = $83,800 / 12,800 = $6.55 per share

Complete Question:

Fair Value Adjustment Journal General Computation of fair value adjustment. Fair Value Adjustment Computation - Available for Sale Portfolio Cost Fair ValueUnrealized Verrizano Corporation bonds payable Preble Corporation notes payable Lucerne Company common stock Total $ 66,500 S 61,900 46,400 85,100 $ 208,400 $ 193,400 54,000 87,900 Fair Value Adjustment General Journal

Answer:

Dr Unrealized loss — Equity $15,000

Cr Available-For-Sale Securities $15,000

Explanation:

The difference of the cost and fair value of the portfolio gives us the loss of $15,000 which must be accounted for in accounting books as under:

Dr Unrealized losses             $15,000

Cr Available-For-Sale Securities $15,000

Answer:

Variable  cost per unit = $1.5  per unit

Fixed cost = $14,558

Explanation:

Variable cost per unit

= cost at high activity - cost at low activity/High activity -low activity

=$(74,798- $41,663) / (40,160 -18,070) units

= $1.5  per unit

Fixed cost

Total fixed cost = cost at high activity - ( vc per unit × high activity)

= 74,798 - (1.5  × 40,160)

= $14,558

Variable  cost per unit = $1.5  per unit

Fixed cost = $14,558

Answer: Allowance for the doubtful accounts with a credit balance of $29,600

Explanation:

From the information that is provided in the question, the following can be deduced and the year-end financial statements should show:

Allowance for the doubtful accounts with a credit balance will be calculated as: the beginning allowance for the doubtful accounts + (the sales × Provision % ) - accounts receivable that were written off.

= $3,500 + ($1,110,000 × 3%) - $7,200

= $3500 + $33300 - $7200

= $36800 - $7200

= $29,600

Answer:

The correct answer is the option D: real GDP and the price level.

Explanation:

To begin with, the "model of aggregate demand and aggregate supply" is the name given to an economy model created by John Keynes many years ago and whose main purpose is to show in a graphic the existing relationship established by Keynes between the price level and the production level. Therefore that, as it is known, the GDP comprehends the production level in this model and it is used in order to try to predict the possible effects that some external factors may have in both the real GDP and the price level.

Answer:

The correct answer is (A)

Explanation:

The model of aggregate demand and aggregate supply explains the relationship between the price of a good and the quantity of same good.

What do we mean by quantity? Quantity here could be quantity demanded or quantity supplied.

The model of Aggregate Demand explains how price of a good affects the general or aggregate demand for that goods and how demand in turn affects price. The law of demand states that, all other things being equal, the higher the price of a good, the lower the quantity demanded of that good and vice versa.

The model of Aggregate Supply explains how the price of a good affects the quantity supplied and the law of supply states that if there's an increase in the price of a good, producers will be encouraged to supply more and vice versa; ceteris paribus!

For the other options, there are macro theories or models that explain them.

Personal Trainer, Inc. owns and operates fitness centers in a dozen Midwestern cities. The centers have done well, and the company is planning an international expansion by opening a new “supercenter” in the Toronto area. Personal Trainer’s president, Cassia Umi, hired an IT consultant, Susan Park, to help develop an information system for the new facility. During the project, Susan will work closely with Gray Lewis, who will manage the new operation. Background

During data and process modeling, Susan Park developed a logical model of the proposed system. She drew an entity-relationship diagram and constructed a set of leveled and balanced DFDs. Now Susan is ready to consider various development strategies for the new system. She will investigate traditional and Web-based approaches and weigh the pros and cons of in-house development versus other alternatives.

Susan wants to prepare a presentation that will calculate the total cost of ownership for the system.

What financial analysis tools are available to her, and what are the advantages (and possible disadvantages) of each tool?

Answer:

The answer is below

Explanation:

The financial tools available to her,

NPV: Net Present Value

1.  It is the total value benefit minus the total value of the costs.

2.  It adjusts the value of future costs and benefits to account for the time value of money.

3.  The systems can be compared more accurately and consistently.

ROI:  Return On Investment.

Advanatge

1.  It is a % rate that compares total net benefits received from a project to the total costs of the project.

2. Companies set a minimum ROI that all projects must match or exceed.

3. Disadvantage of this tool is that it expresses only an overall average rate of the return. It is not accurate for a given time period

PAY BACK ANALYSIS

1.  It determines the time it takes for an information system to pay for itself.

2. Total development and operating costs are compared with total benefits.

3.  Disadvantage of this method is that pay back analyzes on costs and benefits incurred at the beginning of a system’s useful life.

Answer:

Speedway Motorsports, Inc.,

Vertical Analysis of Income Statement

                                           Current Year              Previous Year

Revenues:

Admissions                                 20.28≅ 20.3           20.81 ≅20.8

Event-related revenue                 29.61 ≅ 29.6              30.32≅30.3

NASCAR broadcasting revenue    43.80≅ 43.8             42.82≅42.8

Other operating revenue                6.31  ≅  6.3            6.05≅6.1

Total revenues                                100%                     100%

Expenses and other:

Direct expense of events                 21.01 ≅ 21.0                21.10≅ 21.1

NASCAR event management fees  29.61≅  29.6                26.48≅ 26.5

Other direct expenses                      3.94  ≅  3.9                3.82≅3.8

General and administrative              35.84 ≅ 35.8                 40.08≅40.1

Total expenses and other                 87.72 ≅  87.7               91.49≅ 91.5

Income from continuing operations 12.23%                       8.51%

Explanation:                                    

Vertical Analysis =(Income Statement Item/ Sales )*100

We prepared a comparative income statement for these two years in vertical form, stating each item as a percent of revenues.

                                                Current Year           Previous Year

Revenues:

Admissions                             $100,694                $100,798

Event-related revenue           146,980                     146,849

NASCAR broadcasting revenue 217,469               207,369

Other operating revenue            31,320                    29,293

Total revenues                        $496,463                 $484,309

Expenses and other:

Direct expense of events         $104,303                    $102,196

NASCAR event management fees 133,682                 128,254

Other direct expenses                     19,541                      18,513

General and administrative             177,926                   194,120

Total expenses and other              $435,452               $443,083

Income from continuing operations $61,011                 $41,226

Answer: $5,440

Explanation:

When using the percent of sales method to determine bad debts, the company estimates a percentage that it believes will results in uncollectible debt and then applies it to the sales/revenue figure. The figure that is calculated is then debited along with the debit balance on the Allowance for doubtful accounts to the Bad debts account for the year and credited to the Allowance for doubtful accounts.

This company estimates that they will have 0.6% of credit sales uncollectible.

There are also $790,000 in sales of which all are on credit.

The Uncollectible estimate is therefore,

= 790,000 * 0.6%

= $4,740

This figure is then added to the debit amount on the Allowance for Uncollectible Accounts.

= 4,470 + 700

= $5,440

Note; A debit balance on the Allowance for doubtful debt account signifies that the bad debts were higher than anticipated the last time. This is why the figure is added to the current bad debts expense.

Answer: straight lines that are parallel to each other

Explanation: Q: A jeweler can potentially use two inputs in her handcrafted jewelry: copper or bronze. She finds that when she minimizes her costs, she either uses copper or bronze but not both. What must her isoquants look like?

An isoquant curve is defined as a line of equal or constant economic production on a graph, chart or map which describes all the combinations of inputs that produce the same level of output. If the jeweler either uses copper or bronze but not both, it means that the copper and bronze are perfect substitutes, that is,  they are two inputs that can be substituted for each other at a constant rate and at the same time maintaining the same output level. Her isoquants would appear as straight lines that are parallel to each other because all that matters is the sum of the two variables (copper and bronze), and not their individual values.

Answer:

1. $60,000

2. $30,000

3. $20,000

Explanation:

1. How much of the raw materials cost would be added to the Work in Process Inventory account during the period?

The amount to add add to the Work in Process Inventory account during the period is the direct material used calculated as follows:

Direct raw materials used =  Materials requisition 1445 For Job 101 + Materials requisition 1446 For Job 102 = $25,000 + $35,000 = $60,000

2. How much of the raw materials costs would be added to the Manufacturing Overhead account?

Manufacturing overhead refers to all indirect costs that are incurred during the production process. Therefore, the raw materials costs that would be added to the Manufacturing Overhead account is the indirect materials used on multiple jobs.

Therefore, we have:

Amount to add to the Manufacturing Overhead account = Indirect materials used = $30,000

3. Compute the ending balance in the Raw Materials Inventory account.

Ending raw materials balance = Beginning raw materials + Purchases of raw materials - Direct raw materials used - Indirect materials used = $20,000 + $90,000 - $60,00 - $30,000 = $20,000

Answer:

$8,100

Explanation:

The home was rented for more than 14 days, you must pay taxes for the rental income

Since Lille used the house for more than 15 days herself, limits her deduction. The home cannot be treated as rental home nor personal use vacation home.

total days used = (30 x 3) + 30 = 120 days

rental days = 90/120 = 75% (this doesn't apply to mortgage interest nor real estate taxes, they are still 100% deductible)

mortgage interest and real estate taxes still qualify as personal expenses = $3,000 + $1,500 = $4,500

utilities and depreciation will be deducted only 75% = ($800 + $4,000) x 75% = $3,600

total deductions = $4,500 + $3,600 = $8,100

Answer:

$42.69

Explanation:

From the question above Metallica Bearings Inc. is expected to pay a dividend of $13.75 pet share for a period of 12 years

The dividend will increase by 5.5 percent per year

= 5.5/100

= 0.055

The required rate of return is 13.5 percent

= 13.5/100

= 0.135

The first step is to calculate the price at 11 years

Price at 11 years= 13.75/ 0.135-0.055

= 13.75/0.08

= $171.87

The next step in to find the current price by applying the following formular

Current share price= Future value/ (1+r)^n

= $171.875/ (1+0.135)^11

= $171.87/ 1.135^11

= $171.87/ 4.026

= $42.69

Current share price= $42.69

Hence the current share price is $42.69

Answer:

$1,470,132

Explanation:

Expenditures:

March 1, $6,300,000

June 1, $5,270,000

December 31, $8,950,000

the weighted average interest rate:

$6,380,000 x 10% = $638,000

$12,550,000 x 11% = $1,380,500

total debt = $18,930,000

total interest = $2,018,500

weighted average interest rate = $2,018,500 / $18,930,000 = 10.663%

weighted average accumulated expenditures:

March 1, $6,300,000 x 10/12 = $5,250,000

June 1, $5,270,000 x 7/12 = $3,074,167

December 31, $8,950,000 x 0/12 = $0

total = $8,324,167

interests on the specific loan = $3,180,000 x 12% = $381,600

interests on remaining expenditures = ($8,324,167 - $3,180,000) x 10.663% = $548,520

total interest capitalized = $930,120

total interest expensed = total interests on other loans - interests capitalized on remaining expenditures = $2,018,500 - $548,520 = $1,469,980 ≈ $1,470,132 which we can match to the nearest option due since during the procedure we rounded a couple of times.

Answer:

3.14

Explanation:

Answer:

Gross Income = 46950

Explanation:

SOURCE                                                                                           AMOUNT

Illegal gross income (from poker)                                                   1200

Gain on stock sale                                                                           1000

Annuity (25000 - 210000/20)                                                         14500

Scholarship (excess of book allowance paid, for taxable car)       200

Tax refund (tex benefit of last year)                                                  50

Interest Income                                                                                 30000

Total Gross Income                                                                         46950

Answer:

Minimum transfer price = $10

Explanation:

The  Division A is operating at full capacity, hence it has no excess capacity

This implies that it can not produce enough to meet both the internal demand (from Division B) and external buyers.  

Hence, it implies that Division A can not accommodate the demands of the  Division B at a price lower than the external price of $10. Any price lower than $10 would  result into a loss in contribution.

To maximize and optimize the group profit

Minimum transfer price = External selling price at which Division A can sell product XX

Minimum transfer price = $10

Answer:

Ending inventory is greater than beginning inventory when purchases are less than cost of goods sold.

Explanation:

Ending inventory is greater than beginning inventory when purchases are less than cost of goods sold is the wrong answer option

Ending inventory is the amount of inventory a company has in stock at the end of it's fiscal year. It is the beginning inventory plus net purchases minus cost of goods sold.

When the beginning inventory is greater than the ending inventory, then has been sold in the period than you bought.

Answer:

$625

Explanation:

He made a profit of $2500 which is greater than $1500, so he would earn a 25% commmision

25% of $2500 = $625

I hope my answer helps you

Answer and Explanation:

The journal entry is shown below:

Depreciation expense Dr $398,000

          To Accumulated depreciation $398,000

(Being the depreciation expense is recorded)

For recording this we debited the depreciation expense as it increased the expenses and credited the accumulated depreciation as it decreased the value of the assets

The computation of the depreciation expense is as follows

Cost of the asset               $3,250,000

Less: accumulated

depreciation till date       ($1,801,000)

Undepreciation cost        $1,449,000

Less:

Estimated residual value  ($255,000)

Value for remaining

3 years                               $1,194,000

Divided by 3 years              ÷ 3

Depreciation expense      $398,000

Answer:

Sunset Corporation's taxable income is $3,000

Explanation:

Calculation of Sunset Corporation's taxable income is as worked below

Taxable Income = Operating Income - Operating Expenses + Capital Gains - Capital Losses  

Taxable Income = $200,000 - $175,000 + $30,000 - $52,000

Taxable Income = $3,000.  Hence, Sunset Corporation's taxable income is $3,000

Note that taxable income is the amount of income used to calculate how much tax an individual or a company owes or is going to pay the government in a particular tax year.

Answer:

The following Classification of activities for medical services at health smart clinic is categorized below

Explanation:

Solution

Given that:

The following activities for providing medical services at health smart Clinic is stated below:

     Activity               Control level     Activity Driver

A. Patient registering - Unit level - Number of patients

B. Cleaning beds - Unit level - bed, patients, labor hours

C. Stocking examination rooms - Facility Level - Number of rooms

D. Washing linens - Batch level - Loads

E. Ordering medical equipment - Facility Level - Cost of equipment, Number of suppliers

F. Heating the clinic - Facility Level - Degree days, space

G. Providing security services - Facility level - No. of days , area covered

H. Filing prescriptions - Batch level - No. of prescriptions

Answer:

$30,000

Explanation:

Data provided in the question

Purchase value of the office supplies = $50,000

Expected to use supplies in the first year = 60%

So expected to use supplies in the second year = 40%

Based on the above information, the supplies account balance at the end of the first fiscal year is

= Purchase value of the office supplies × Expected to use supplies in the first year

= $50,000 × 60%

= $30,000

We simply multiplied the purchased value with the expected supplies use in the first year so that the balance of the supplies for the first year could come

Answer:

$1,073.60

Explanation:

bond's current price = PV of face value + PV of coupons

maturity = 10 years

face value = $1,000

coupon rate = 7% annual

market rate = 6%

PV of face value = $1,000 / (1 + 6%)¹⁰ =$558.39

PV of coupons = coupon x annuity factor (10 years, 6%) = $70 x 7.3601 = $515.21

market value at issue date = $558.39 + $515.21 = $1,073.60

since the bond's coupon rate was higher than the market rate, the bond was sold at a premium.

Answer:

  $5/h

Explanation:

The contribution margin for Bales is ...

  $55 -20 = $35

The machine hours for Bales is 7.

The contribution margin per machine hour is ...

  $35/(7 h) = $5/h