Kevin's Company uses a normal costing system, applying overhead using a single plant-wide rate. At the beginning of the year, budgeted (estimated) manufacturing overhead costs totaled $400,000, budgeted direct labor hours totaled 80,000 hours and budgeted machine hours totaled 20,000 hours. At the end of the year, the actual overhead costs recorded totaled $450,000 and actual direct labor hours were 86,000. Kevin's Company's production process is very labor-intensive and therefore uses direct labor hours as the activity base. With this information, what is the assigned (applied) amount of MOH that Sherfield Company assign to production

Answers

Answer 1

Answer:

$430,000

Explanation:

MOH recovery rate = Estimated MOH / Estimated direct labor hours

MOH recovery rate = $400,000 / 80,000 hours

MOH recovery rate = $5 per direct labor hours

So, the applied amount of manufacturing overhead rate is $5

Assigned amount of MOH = MOH recovery rate * Actual direct labor hours

Assigned amount of MOH = $5 * 86,000 DLH

Assigned amount of MOH = $430,000


Related Questions

American Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $850. What is the bond's nominal coupon interest rate

Answers

Answer:

7.71%

Explanation:

Calculation to determine the bond's nominal coupon interest rate

First step is to determine the PMT using Financial calculator

FV = $1,000

N= 25 × 2 = 50 periods ( semi-annual)

i/y=9.25/2=4.63

PV= - 850

PMT=?

Hence,

PMT=38.55

Second step is to calculate the Annual coupon Payment

Annual coupon Payment =38.55x2

Annual coupon Payement= 77.10

Now let determine the bond's nominal coupon interest rate using this formula

Nominal coupon rate= Annual coupon payment/par value

Let plug in the formula

Nominal coupon rate=77.10/1000

Nominal coupon rate=7.71%

Therefore the bond's nominal coupon interest rate is 7.71%

9. Bayarmaa owns land with an adjusted basis of $610,000 subject to a mortgage of $350,000. On April 1, Bayarmaa sells her land subject to the mortgage for $650,000 in cash, a note for $600,000, and property with a fair market value of $120,000. What is the amount realized

Answers

Answer:

610000-b=a

Explanation:

April 1=610000

Bayarmaa owns land with an adjusted basis of $610,000 subject to a mortgage of $350,000. The amount realized is $1,720,000. The correct option is b.

What are taxes?

Taxes are necessary contributions levied by a government entity, whether local, regional, or national, on individuals or corporations. Taxation funds government activities such as public works and services such as roads and schools, as well as programs such as Social Security and Medicare.

The amount realized by Alice is equal to the assumed property tax

Cash = $650,000

Note = $600,000

Property for market value = $120,000

Mortgage debt =  $350,000

Prorated property tax = 9000 x 31 + 28 + 31 / 365 days = 2,219

Adding all the money = 1722, 219

Therefore, the correct option is b. $1,720,000.

To learn more about taxes, refer to the link:

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The question is incomplete. Your most probably complete question is given below:

a. $1,370,000

b. $1,720,000

c. $1,820,000

d. $1,250,000

Caber corporation applies manufacturing overhead on the basis of machine-hours. at the begining of the most recent year, the company based it predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour.
a. The pre-determined overhead rate was based on how many estimated machine-hours?
A. 5,783.
B. 6,000.
C. 5,900.
D. 5,842 24.
b. The applied manufacturing overhead for the year was closest to:_____.
A. $58,017.
B. $59,590.
C. $60,600.
D. $58,597.
c. The overhead for the year was:_____.
A. $1,010 underapplied.
B. $590 overapplied.
C. $590 underapplied.
D. $1,010 overapplied.

Answers

Answer and Explanation:

The calculation of each part is given below:

a. The estimated machine hours is

= $60,600 ÷ 10.10

= 6,000 machine hours

b. The applied manufacturing overhead is

= 5,900 × $10.10

= $59,590

c. The overhead should be

= $60,600 - $59,590

= $1,010 underapplied

In this way each and every part should be determined

So the same should be considered and relevant

Alpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $1.36 at the end of next year. The company’s earnings’ and dividends’ growth rate are expected to grow at the constant rate of 8.70% into the foreseeable future. If Alpha Moose expects to incur flotation costs of 5.00% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be

Answers

Answer:

Alpha Moose Transporters

If Alpha Moose expects to incur flotation costs of 5.00% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be:

= $30.84.

Explanation:

a) Data and Calculations:

Current stock price = $33.35 per share

Dividend per share = $1.36

Flotation costs =  5.00%

Flotation-adjusted stock price = $31.68 ($33.35 * 0.95)

Expected dividend growth rate = 8.70%

Expected rate of returns = 4.29% ($1.36/$31.68 * 100)

Cost of new common stock = Dividend per share/(Expected rate of returns - Dividend growth rate)

= $1.36/(0.0429 - 0.087)

= $1.36/0.0441

= $30.84

Journ Co. purchased short-term investments in available-for-sale securities at a cost of $52,000 on November 25, 2017. At December 31, 2017, these securities had a fair value of $48,800. This is the first and only time the company has purchased such securities.

Required:
a. Prepare the November 25, 2017, entry to record the purchase of securities.
b. Prepare the December 31, 2017, year-end adjusting entry for the securities’ portfolio.
c. For each account in the entry for part 2, explain how it is reported in financial statements.
d. Prepare the April 6, 2018, entry when Journ sells one-half of these securities for $26,000.

Answers

Answer:

Journ Co.

Journal Entries:

a. November 25, 2017:

Debit Investments in available for sale securities $52,000

Credit Cash $52,000

To record the purchase of available for sale securities.

b.

December 31, 2017:

Debit Unrealized loss on available for sale securities $3,200

Credit Investments in available for sale securities $3,200

To record the adjusting entry for the securities.

c. The unrealized loss on available for sale securities of $3,200 ($52,000 - $48,800) will be reported in the income statement as unrealized loss in the OCI section.  In the balance sheet, the investment will be reported at $48,800.  This adjustment does not affect the cash flows statement.

d.

April 6, 2018:

Debit Cash $26,000

Credit Investments in available for sale securities  $26,000

To record the sale of one-half of the securities.

Explanation:

a) Data and Analysis:

November 25, 2017: Investments in available for sale securities $52,000 Cash $52,000

December 31, 2017: Unrealized loss on available for sale $3,200 Investments in available for sale securities $3,200

April 6, 2018: Cash $26,000 Investments in available for sale securities  $26,000

suppose the transfers of pillars to the lantern would reduce sales to outside customers by 15000. whats the lowest transfer price that would

Answers

Answer:

$1.20

Explanation:

Variable cost per pillar is $0.80, there is demand of pillar for 15000 by an outside customer. The selling cost is around $0.40. The total variable cost is $1.20, this is minimum transfer price that can be set by the supplier.

The number of all credit-card holders in the U.S. is IN(a) million card holders and the collective amount of credit card debt that all credit-card holders carry is D(x) billion dollars, x years after 2010. The average credit card debt per card holder at year x is:

Answers

Answer: D(x) / IN(a)

Explanation:

If one wanted to find out the average credit card debt per card holder then the correct formula would be:

= Amount of debt that all credit card holders carry / Number of credit card holders

As the amount of debt that all credit card holders carry is denoted by D(x) and the number of credit card holders is IN(a), the average credit card debt per card holder is:

= D(x) / IN(a)

On March 31, 2019, Brodie Corporation acquired bonds with a par value of $400,000 for $425,800. The bonds are due December 31, 2024, carry a 12% annual interest rate, pay interest on June 30 and December 31, and are being held to maturity. The accrued interest is included in the acquisition price of the bonds. Brodie uses straight-line amortization.Required: 1. Prepare journal entries for Brodie to record the purchase of the bonds and the first two interest receipts.
2. Next Level If Brodie failed to separately record the interest at acquisition, explain the errors that would occur in the company’s financial statements (no calculations are required).

Answers

Answer:

1. March 31, 2019

Dr Investment in held-to-maturity debt securities

$413800

Dr Interest income $12,000

Cr Cash $425800

2. June 30, 2019

Dr Cash $12,000

Cr Investment in held-to-maturity debt securities

$300

Cr Interest income $11700

3. December 31, 2019

Dr Cash $24000

Cr Investment in held-to-maturity debt securities

$600

Cr Interest income $23400

2. Assets overstated

Profit overstated

Explanation:

1. Preparation of the journal entries for Brodie to record the purchase of the bonds and the first two interest receipts.

1. March 31, 2019

Dr Investment in held-to-maturity debt securities

$413800

Dr Interest income $12,000

(400000*12%*3/12)

Cr Cash $425800

(To record the purchase of held-to-maturity securities)

2. June 30, 2019

Dr Cash $12,000

(400000*12%*3/12)

Cr Investment in held-to-maturity debt securities

$300

[($12,000/10)*3/12]

Cr Interest income $11700

($12,000-$300)

(To record the interest and amortization)

3. December 31, 2019

Dr Cash $24000

(400000*12%*6/12)

Cr Investment in held-to-maturity debt securities

$600

[($12,000/10)*6/12]

Cr Interest income $23400

($24,000-$600)

(To record the interest and amortization)

2. Based on the information given assuming Brodie failed to SEPARATELY RECORD THE INTEREST AT ACQUISITION, the errors that would occur in the company’s financial statements would be OVERSTATED ASSETS in the balance sheet and the PROFIT would as well be OVERSTATED.

The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 200th gallon of gasoline entails the following:
• a private cost of $3.03;
• a social cost of $3.23;
• a value to consumers of $3.39.
Refer to Scenario 10-1. Suppose the equilibrium quantity of gasoline is 220 gallons; that is, Q MARKET = 220. Then the equilibrium price of a gallon could be:________
a. $3.08.
b.$2.77.
c. $2.45.
d. $3.69.

Answers

Answer:

a. $3.08

Explanation:

Calculation to determine what the equilibrium price of a gallon could be:

Based on the information given the Private cost is $3.03 while the Social cost is $3.23 which indicates that Social cost lies ABOVE the private cost and since The MARKET EQUILIBRIUM tend to occurs when Private value=Private cost which means that the EQUILIBRIUM PRICE lies between $3.03 and $3.23, Therefore the EQUILIBRIUM PRICE of a gallon would be $3.08 because it lies between $3.03 and $3.23.

packaging materials for processed​

Answers

Answer:

Types of packaging material used in food

Plastics. Plastics are organic polymeric materials that can be molded into the desired shape. ...

Metals (steel, tin, aluminum) The main use of these metals is the preservation of canned foods and beverages. ...

Glass. ...

Wood, cardboard and papers. ...

Advances in packaging techniques.

Hatch has a standard of 2.2 hours of labor per unit, at $10.70 per hour. In producing 1,640 units, Hatch used 3,900 hours of labor at a total cost of $40,400. What is Hatch's total labor variance

Answers

Answer: $1,794.40 Unfavorable

Explanation:

Total labor variance = Actual cost of labor - Standard cost of labor

Actual cost of labor = $40,400

Standard cost of labor = Hours per unit * Cost per hour * Number of units

= 2.2 * 10.70 * 1,640

= $38,605.60

Total labor variance = 40,400 - 38,605.60

= $1,794.40 Unfavorable

Unfavorable because actual cost of labor was greater than the standard cost.

The business cycle measures fluctuations in the long-run trend growth rate of GDP. fluctuations in the profit of businesses. fluctuations in consumption. short-run fluctuations in economic activity. fluctuations in the average tax rate paid by businesses.

Answers

Answer: short-run fluctuations in economic activity.

Explanation:

The business cycle helps explain fluctuations in economic activity within a period of time which makes it a short run measure. The cycle consists of expansion phases and recession phases which show that economic activity seems to expand and then go into a recession overtime.

The lowest point in the recession is called the depression and when this happens, the economy hits rock bottom and starts to expand after some time. This is what happened with the Great Depression and the Great Recession. The height of the expansion is the peak and here, the economy is at its most successful.

Which of these is more likely to be true?
A. An adaptor is likely to consider radical innovations
B. An innovator is likely to consider incremental innovations
C. Large companies often find it easier to adopt radical innovations.
D. Innovators will often push for radical innovations.

Answers

Answer: D. Innovators will often push for radical innovations.

Explanation:

A radical innovation is one that when made, changes up the way things were being done in the industry that it appears in. For instance, when the first digital camera was made, it changed photography forever.

This is what innovators want. They want to come up with a product that would change the way things are being done and enable them to take over the market.

Suppose Blue Hamster Manufacturing Inc. is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $3,225,000. The project is expected to generate the following net cash flows:

Year Cash Flow
Year 1 $275,000
Year 2 $475,000
Year 3 $425,000
Year 4 $400,000

Blue Hamster Manufacturing Inc.'s weighted average cost of capital is 7%, and project Beta has the same risk as the firm's average project. Based on the cash flows, what is project Beta's NPV?

Answers

Answer and Explanation:

The computation of the net present value is shown below:

Year          Cash flows       Discount factor at 7%    Present value

0               -$3,225,000            1                                 -$3,225,000

1                  $275,000        0.934579439                   $257,009.3458

2                 $475,000        0.873438728                   $414,883.3959

3                  $425,000       0.816297877                     $346,926.5977

4                  $400,000       0.762895212                    $305,158.0848

Net present value                                                        -$1,901,022.576

Contrary to popular opinion, CEOs of major U.S. companies come from a wide variety of private universities and state universities, not just a handful of well-publicized MBA programs. What does this fact tell you about sources of power and organizational politics

Answers

Answer: Power is earned

Explanation:

The fact that so many influential CEOs come from such a wide array of universities shows that they had to work to get to where they are today and were not simply handed positions because of the university they came from.

It shows that if one wants to succeed in business, their alma mater does not matter. They could be from an Ivy league college or from a state college in Mississippi, what matters is their determination to work hard and gain a good track record that will take them all the way to the top.

Journalize the following sales transactions for Antique Mall. Explanations are not required. The company estimates sales returns at the end of each month.
Jan. 4 Sold $14,000 of antiques on account, credit terms are n/30. Cost of goods is $7,000.
8 Received a $400 sales return on damaged goods from the customer. Cost of goods damaged is $150.
13 Antique Mall received payment from the customer on the amount due from Jan. 4, less the return.
20 Sold $4,900 of antiques on account, credit terms are 1/10, n/45, FOB destination. Cost of goods is $2,450.
20 Antique Mall paid $70 on freight out.
29 Received payment from the customer on the amount due from Jan. 20, less the discount.

Answers

Answer:

Antique Mall

Journal Entries:

Jan. 4 Debit Accounts Receivable $14,000

Credit Sales Revenue $14,000

credit terms are n/30.

Debit Cost of goods sold $7,000

Credit Inventory $7,000

Jan. 8 Debit Sales Returns $400

Credit Accounts Receivable $400

Debit Damaged Goods $150

Credit Cost of goods sold $150

Jan. 13 Debit Cash $13,600

Credit Accounts Receivable $13,600

Jan. 20 Debit Accounts Receivable $4,900

Credit Sales Revenue $4,900

credit terms are 1/10, n/45, FOB destination.

Debit Cost of goods sold $2,450

Credit Inventory $2,450

Jan. 20 Debit Freight-out Expense $70

Credit Cash $70

Jan. 29 Debit Cash $4,851

Debit Cash Discounts $49

Credit Accounts Receivable $4,900

Explanation:

a) Data and Analysis:

Jan. 4 Accounts Receivable $14,000 Sales Revenue $14,000

credit terms are n/30.

Cost of goods sold $7,000 Inventory $7,000

Jan. 8 Sales Returns $400 Accounts Receivable $400

Damaged Goods $150 Cost of goods sold $150

Jan. 13 Cash $13,600 Accounts Receivable $13,600

Jan. 20 Accounts Receivable $4,900 Sales Revenue $4,900

credit terms are 1/10, n/45, FOB destination.

Cost of goods sold $2,450 Inventory $2,450

Jan. 20 Freight-out Expense $70 Cash $70

Jan. 29 Cash $4,851 Cash Discounts $49 Accounts Receivable $4,900

Wahlberg Company Income Statement For the Years Ended December 31
2020 2019
Net sales $1,813,600 $1,746,200 Cost of goods sold 1,013,400 990,000 Gross profit 800,200 756,200 Selling and administrative expenses 514,800 474,000 Income from operations 285,400 282,200 Other expenses and losses Interest expense 17,400 14,400 Income before income taxes 268,000 267,800 Income tax expense 78,019 77,600 Net income $ 189,981 $ 190,200
Wahlberg Company Balance Sheets December 31 Assets 2020 2019 Current assets Cash $60,000 $64,700 Debt investments (short-term) 70,200 49,600 Accounts receivable 117,400 101,100 123,700 Inventory 115,500 Total current assets 371,300 330,900 Plant assets (net) 598,900 523,900 $970,200 $854,800 Total assets Liabilities and Stockholders' Equity Plant assets (net) 598,900 523,900 $970,200 Total assets $854,800 Liabilities and Stockholders' Equity Current liabilities Accounts payable $160,800 $144,700 Income taxes payable 43,500 41,800 Total current liabilities 204,300 186,500 Bonds payable 220,000 200,000 424,300 Total liabilities 386,500 Stockholders' equity Common stock ($5 par) 275,600 300,100 Retained earnings 270,300 168,200 Total stockholders' equity 545,900 468,300 Total liabilities and stockholders' equity $970,200 $854,800 All sales were on account. Net cash provided by operating activities for 2020 was $230,000. Capital expenditures were $136,000, and cash dividends were $87,881. nings per share, 6.8 or 6.8%. Use 365 days for calculation.) 3.38 (a) Earnings per share (b) Return on common stockholders' equity 33.31 % (c) Return on assets 20.53 % (d) 1.82 :1 Current ratio 1.21 times (e) Accounts receivable turnover (f) 16.6 days Average collection period (g) Inventory turnover 15.16 times (h) 16.4 days Days in inventory 1.87 times (i) Times interest earned times (j) Asset turnover (k) Debt to assets ratio 22.32 % (l) Free cash flow

Answers

Answer:

Answer:

Wahlberg Company

(a) Earnings per share = $3.45 ($189,981/55,120) $3.17 ($190,200/60,020)

(b) Return on common stockholders' equity = 34.80%       40.61%

                                             ($189,981/$545,900)      ($190,200/$468,300)

(c) Return on assets    =         19.58%                       22.25%

                                             ($189,951/$970,200)      ($190,200/$854,800)

(d) Current ratio =                             1.82 times        1.77 times

= Total current assets                         371,300/    330,900/

/Total current liabilities                      204,300     186,500

(e) Accounts receivable turnover = 16.60 times

(f) Average collection period = 22 days

(g) Inventory turnover  = 8.47 times

(h) Days in inventory = 43.1 days

(i) Times interest earned times  = 16.4 times    19.6 times

(j) Asset turnover = 1.99x

(k) Debt to assets ratio  =   43.37%      45.22%

(l) Free cash flow  

= $94,000

Explanation:

a) Data and Calculations:

Wahlberg Company

Income Statement

For the Years Ended December 31

                                                                2020          2019

Net sales                                          $1,813,600   $1,746,200

Cost of goods sold                            1,013,400       990,000

Gross profit                                         800,200       756,200

Selling and administrative expenses 514,800       474,000

Income from operations                    285,400      282,200

Other expenses and losses

Interest expense                                   17,400         14,400

Income before income taxes            268,000      267,800

Income tax expense                             78,019         77,600

Net income                                      $ 189,981    $ 190,200

Wahlberg Company

Balance Sheets December 31

Assets                                                        2020          2019

Current assets

Cash                                                     $60,000     $64,700

Debt investments (short-term)              70,200       49,600

Accounts receivable                              117,400       101,100

Inventory                                               123,700      115,500

Total current assets                             371,300    330,900

Plant assets (net)                                598,900    523,900

Total assets                                      $970,200  $854,800

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable                            $160,800   $144,700

Income taxes payable                         43,500       41,800

Total current liabilities                      204,300     186,500

Bonds payable                                  220,000   200,000

Total liabilities                                   424,300    386,500

Stockholders' equity

Common stock ($5 par)                   275,600    300,100

Retained earnings                            270,300    168,200

Total stockholders' equity               545,900   468,300

Total liabilities and

stockholders' equity                    $970,200 $854,800

Net cash provided by operating activities for 2020 was $230,000.

Capital expenditures were $136,000

Cash dividends were $87,881.

Earnings per share, 6.8 or 6.8%

Outstanding shares    =55,120 ($275,600/$5)    60,020 ($300,100 /$5)

Average Receivable = $109,250 ($117,400 + $101,100)/2

Average inventory = $119,600 ($123,700 + $115,500)/2

Average assets = $912,500 ($970,200 + $854,800)/2

(a) Earnings per share = $3.45 ($189,981/55,120) $3.17 ($190,200/60,020)

(b) Return on common stockholders' equity = 34.80%       40.61%

                                             ($189,981/$545,900)      ($190,200/$468,300)

(c) Return on assets    =         19.58%                       22.25%

                                             ($189,951/$970,200)      ($190,200/$854,800)

(d) Current ratio =                             1.82 times        1.77 times

= Total current assets                         371,300/    330,900/

/Total current liabilities                      204,300     186,500

(e) Accounts receivable turnover  = $1,813,600/$109,250 = 16.60 times

= Net Sales/Average Receivable

(f) Average collection period = $109,250/$1,813,600  * 365 = 22 days

(g) Inventory turnover  = $1,013,400/$119,600 = 8.47 times

(h) Days in inventory = $119,600/$1,013,400 * 365 = 43.1 days

(i) Times interest earned times = EBIT/Interest Expense

= 16.4 times ($285,400/$17,400)      19.6 times ($282,200/$14,400)

(j) Asset turnover = Sales/Average Assets = $1,813,600/$912,500 = 1.99x

(k) Debt to assets ratio  =   43.37%      45.22%

                           ($424,300/$970,200)    ($386,500/$854,800)

(l) Free cash flow  = Net cash provided by operating activities - Capital expenditures

=  $230,000 - $136,000

= $94,000

What type of business would publish a new product marketing promotion in the local newspaper, online, and in stores

Answers

Answer: c. business-to-consumer

Explanation:

A company that is trying to sell to consumers directly would be trying to market its goods to those same consumers. To do so they would use various media such as local newspapers, online and in store marketing because this is where they know that they would find consumers.

The business in this scenario is doing this so it must be a business to consumer type company. Companies targeting other businesses would not advertise like this but through official channels with other companies directly.

A 30-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 8%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.)

Answers

Answer and Explanation:

a. The yield to maturity is

Given that

FV = $1000,

PV = -$900

PMT = 80  (8% of $1,000)

NPER = 30

The formula is

=RATE(NPER,PMT,-PV,FV,TYPE)

after applying the formula, the rate is 8.97%  

b. In the case when the bond is sold at par so this means that yield to maturity is equivalent to the coupon rate i.e. 8%

c. The yield to maturity is  

Given that

FV = $1000,

PV = -$1100

PMT = 80  (8% of $1,000)

NPER = 30

The formula is

=RATE(NPER,PMT,-PV,FV,TYPE)

after applying the formula, the rate is 7.18%  

A(n) _____ typically hires the staff of an employer and writes paychecks, pays taxes, prepares and implements HR policies, keeps all the required HR records for the employer, and bears legal liability for a fee.

Answers

Answer: professional employer organization

Explanation:

A professional employer organization is referred to as an outsourcing firm that helps in the provision of services to businesses.

The services that they provide to the businesses include preparation and implementation of HR policies, Payroll, tax administration, regulatory compliance assistance etc.

Spanolia LLC is estimating its WACC. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for 1,000 USD. The firm's marginal tax rate is 40 percent. What is the after-tax cost of debt? Answer in % terms to 2 decimal places w/o the % sign.

Answers

Answer:

Spanolia LLC

The after-tax cost of debt is:

= 7.20%.

Explanation:

a) Data and Calculations:

Coupon interest rate of bonds = 12%

Maturity period = 20 years

Selling price = $1,000

Firm's marginal tax rate = 40%

After-tax cost of debt = Coupon interest rate * (1 - tax rate)

= 12% * (1 - 0.4)

= 12% * 0.6

= 7.20%

b) Spanolia's after-tax cost of debt is derived by multiplying the cost of debt by the after-tax rate.  The after-tax cost of debt represents the interest that Spanolia LLC pays on the bonds less the income tax savings that it gains because interest expenses are tax-deductible.

The impact of interest rate changes in the PV of $100 due in 20 years compared to the PV of $100 due in one year are:
a. smaller because interest rate changes have a greater impact on the near-term cash flows than distant cash flows.
b. the same because the cash flow is the same.
c. greater because interest rate changes have a greater impact on distant cash flows than near-term cash flows.
d. sometimes less and sometimes more depending on the interest rate.

Answers

Answer: c. greater because interest rate changes have a greater impact on distant cash flows than near-term cash flows.

Explanation:

Interest rate changes have a greater impact on distant cashflows because those cashflows will be exposed to the interest rates for longer. This means that they will be subjected to more discounting than a cashflow that is due in one year which would be subject to only a single year of discounting.

For instance, assume the required rate of return for two investments is 10%. One investment yields $10,000 in 20 years and another yields $10,000 in 2 years .

The present value of both are:

= 10,000 / (1 + 10%)²⁰                                                  = 10,000 / ( 1 + 10%)²

= $1,486.43                                                                  = $8,264.46

Notice the difference. The longer term investment was more exposed to interest rate effects.

A jewelry manufacturer incurred the following costs: 15,000 units produced with costs of $557,500, and 5,000 units produced with costs of $292,500. Which cost formula would you estimate using the high-low method? Group of answer choices Y=$265,000+$37.17X Y=$160,000+$17.67X Y=$265,000+$58.50X Y=$160,000+$26.50X

Answers

Answer:

Y=$160,000+$26.50X

Explanation:

Variable Cost = $26.50

Fixed Cost = $160,000

cost formula would you estimate using the high-low method : Y=$160,000+$26.50X

Baskin's pretax accounting income in Year 2 is $100,000. Baskin received cash rental payments in advance for $20,000 in Year 1 and $30,000 in Year 2, which are taxed in the year of receipt. It is expected the rent will be recognized for financial reporting purposes as $25,000 in Year 3 and $25,000 in Year 4. The income tax rate is 40%. What is Baskin's tax basis for rental revenues in Year 2

Answers

Answer:

the  baskin tax basis for rental revenue is $10,000

Explanation:

The computation of the baskin tax basis for rental revenue is given below:

= Year 4 rent recognized × income tax rate

= $25,000 × 40%

= $10,000

Hence, the  baskin tax basis for rental revenue is $10,000

The same should be considered and relevant

You are annoyed by receiving identical marketing messages from an online shopping site you have used. If the company wishes to maintain a good relationship with you, which of the following CRM components needs to be addressed to improve customer satisfaction?

a. Privacy.
b. Mining social media inputs.
c. Cleaning up the data.
d. Customers expect more.

Answers

Answer: c. Cleaning up the data.

Explanation:

Cleaning up data in regards to Customer Relationship Management (CRM) refers to making changes to the messages sent to customers such that they are different or at the very least offer some new information that the customer has not seen before.

It is very important to do this because people do not like receiving the same messages over and over again as this could be considered spamming. This would lead to them unsubscribing from the service.

K Company estimates that overhead costs...
K Company estimates that overhead costs for the next year will be $3,700,000 for indirect labor and $890,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. Of 125,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate?
a. $0.03 per direct labor hour
b. $36.72 per direct labor hour.
c. $2960 per direct labor hour
d. $712 per direct labor hour
e. $0.14 per direct labor hour

Answers

Answer:

Predetermined manufacturing overhead rate= $36.72 per direct labor hour

Explanation:

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

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

Predetermined manufacturing overhead rate= (3,700,000 + 890,000) / 125,000

Predetermined manufacturing overhead rate= 4,590,000 / 125,000

Predetermined manufacturing overhead rate= $36.72 per direct labor hour

Assume the money supply is $800, the velocity of money is 8, and the price level is 2. Using the quantity theory of money: a. Determine the level of real output.

Answers

Answer:

3200

Explanation:

The computation of the level of real output is given below;

We know that

Money supply × velocity of money = Price level × Real output

And,  

Nominal output = Price level ×  real output.

Now  

a) level of real output = money supply × velocity of money ÷  price level

= 800 × 8 ÷ 2

= $6400 ÷ 2

= 3200

Often, an organization makes a portion of its ________ accessible to external parties as its extranet.a. blog.b. inner firewall.c. internet.d. intranet.

Answers

Answer:

d. intranet.

Explanation:

A local area network (LAN) refers to a group of personal computers (PCs) or terminals that are located within the same general area and connected by a common network cable (communication circuit), so that they can exchange information from one node of the network to another. A local area network (LAN) is typically used in small or limited areas such as a set of rooms, a single building, school, hospital, or a set of well-connected buildings.

Generally, some of the network devices or equipments used in a local area network (LAN) are an access point, personal computers, a switch, a router, printer, etc.

An intranet can be defined as a private computer network established within an organization and is typically used for securely sharing organizational informations, computing resources, operational system, and collaboration tools between employees through an internet protocol (IP). Thus, it's mainly a private network that is only accessible to authorized users or employees within an organization.

However, an organization often makes a portion of its intranet accessible to external parties such as vendors, authorized customers, partners, etc., as its extranet in order to have access to business information.

At the beginning of May, Golden Gopher Company reports a balance in Supplies of $390. On May 15, Golden Gopher purchases an additional $2,200 of supplies for cash. By the end of May, only $190 of supplies remains. Required: 1.

Answers

Answer:

Missing word "rief Exercise 3-6 Parts 1 and 2 1. & 2. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No journal entry required n the first account field.) view transaction list view general journal Journal Entry Worksheet Record the purchase of supplies. General Journal Debit Credit Date 2,600 May 15 Supplies expense Enter debits before credits clear entry record entry 7. 062 points Brief Exercise 3-6 Part 3 3. Calculate the balances after adjustment on May 31 of Supplies and Supplies Expense. Ending Balance Supplies Supplies expense"

1&2   Date   General Journal              Debit      Credit

     May 15   Supplies                          $2,200

                          Cash                                         $2,200

     May 31   Supplies expense           $2,400

                   ($390 + $2,200 - $190)

                          Supplies                                    $2,400

3). Particulars           Ending Balance

Supplies                     $190

Supplies expense     $2,400

Typical cash outflows of a project include all of the following except: A. the original investment B. depreciation expense. C. additional inventory required D. repairs and maintenance expenses E. all of the above are typical cash outflows.

Answers

Answer:

B. depreciation expense

Explanation:

Project cash flow can be regarded as how cash flows into as well as out of an organization with respect to a particular potential or existing project. Project cash flow encompass costs for such a project as well as the revenue.

conventional cash flow as regards a project is been structured typically as an initial outflow, which is then followed by inflows numbers over a particular period of time.

Typical cash outflows of a project include the following ;

✓the original investment

✓additional inventory required

✓repairs and maintenance expenses

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