Terms of a lease agreement and related facts were:
a. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $6,652.
b. The retail cash selling price of the leased asset was $550,000.
c. Its useful life was three years with no residual value.
d. The lease term is three years and the lessor paid $550,000 to acquire the asset.
e. Annual lease payments at the beginning of each year were $200,000.
f. Lessor’s implicit rate when calculating annual rental payments was 9%.
(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2018.
2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs.
3. Record any entry(s) necessary at December 31, 2018, the fiscal year-end.

Answers

Answer 1

Answer:

1) January 1, 2018, asset leased

Dr Lease receivable 550,000

    Cr Equipment 550,000

January 1, incremental costs associated with lease transaction

Dr Lease receivable 6,652

    Cr Cash 6,652

January 1, 2018, first lease payment collected

Dr Cash 200,000

    Cr Lease receivable 200,000

2) to calculate the effective rate we can use the present value of an annuity due formula

PV annuity due factor, 3 periods, ?% = present value of lease receivable / annual payment = $556,652 / $200,000 = 2.78326

Now we must use an annuity due table to determine a possible rate. In this case, the exact rate is 8%.

3) December 31, 2018, interest receivable on lease contract

Dr Interest receivable 28,532

    Cr Interest revenue 28,532

interest receivable = ($556,652 / $200,000) x 8% = $28,532


Related Questions

Which of the following is not an example of a problem explained by agency theory?

A manager fires underperforming employees.

A manager takes few risks to ensure steady dividends.

A manager encounters a conflict of interest between their responsibilities to shareholders and their responsibilities to employees.

A manager protects her own job rather than the shareholder’s wealth.

Answers

Answer:

d

Explanation:

A manager protects her own job rather than the shareholder’s wealth.

its not correct.

ssume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You need money today to open a new restaurant, and your uncle offers to give you $100,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment

Answers

Answer:

13.08%

Explanation:

this is an annuity due, and to determine its present value we can use the following formula:

present value = (annual payment / i) x {1 - [1 / (1 + i)ⁿ]} x (1 + i)

100,000 = (15,000 / i) x {1 - [1 / (1 + i)¹²]} x (1 + i)

The math is really complicated if you do it by hand, instead you should use a financial calculator. You would need to calculate the IRR, but the cash flows are:

first cash flow = -85,000

then 11 cash flows of 15,000 (remember that an annuity due is collected in advance)

IRR = 13.08%

What is meant by interest elasticity

Answers

Answer:

Interest elasticity means that demand for a financial product changes with changes in the interest rate.

Explanation:

The proportional change in the quantity of money demanded divided by the proportional change in interest rate.

ABC Company's production budget for October is based on 500 units. Standard unit cost for raw materials is $130 per unit ($10 per pound x 13 pounds per unit).

ABC's actual production in October= = 525 units.
The actual cost of materials used = $69,300 ($11 per pound x 12 pounds per unit).

Required:
a. Calculate the raw materials price variance for October. Is it favorable or unfavorable?
b. Calculate the raw materials usage variance for October. Is it favorable or unfavorable?

Answers

Answer and Explanation:

The computation is shown below;

a. Raw material price variance is

= (standard price - actual price) × actual quantity

= ($10 - $11) × ($69,300 ÷ $11)

= ($10 - $11) × 6,300

= $6,300 unfavorable

b. The raw material usage variance is

= (Standard quantity - actual quantity) × standard price

= (525 × 13 - 6,300) × $10

= $5,250 favorable

In this way it should be calculated

Isabella and Antonio are auto mechanics. Isabella takes 6 hours to replace a clutch and 4 hours to replace a set of brakes. Antonio takes 8 hours to replace a clutch and 6 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage.

Answers

Isabella has an absolute advantage in both clutch replacement and brake replacement due to her ability to complete each task in less time.

- Isabella also has a comparative advantage in both clutch replacement and brake replacement, assuming similar skills and pay rates.

How to determine the whether anyone has an absolute advantage at either task and, for each task

To determine absolute and comparative advantages in this scenario, we need to compare the productivity of Isabella and Antonio in replacing clutches and brakes.

Let's analyze the tasks:

1. Clutch Replacement:

- Isabella takes 6 hours.

- Antonio takes 8 hours.

Based on the time taken, Isabella has an absolute advantage in clutch replacement because she can complete the task in less time than Antonio.

2. Brake Replacement:

- Isabella takes 4 hours.

- Antonio takes 6 hours.

Again, based on the time taken, Isabella has an absolute advantage in brake replacement because she can complete the task in less time than Antonio.

Similar to clutch replacement, if we assume similar skills and pay rates, Isabella would also have a comparative advantage in brake replacement due to her ability to complete the task more quickly.

Comparative advantage is based on a comparison of opportunity costs, and without specific information about the trade-offs involved, we can infer that Isabella's ability to complete both tasks more quickly gives her a comparative advantage in both.

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Which option is an example of capital as a factor of production?
A. A government increasing taxes
B. An artist painting a picture
OC. A tree used to make paper
D. An industrial assembly line

Answers

The example of capital as a factor of production is D. An industrial assembly line

What are factor of production?

In economics, factors of production can be regarded as the resources,  as well as the  inputs  which serves as those things that is used in the production process to produce output.

It shoud be noed hat hese are needed in the manudacture of the goods and services however there are various was that these factors are been used, the various inputs determine the quantity of output  with respect to the relationship called the production function.

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Conflict and conflict resolutions happens often in the workplace.
Mary Parker Follett shared with us the point of integrative
conflict resolution where both parties indicate their preference(s)
and then work together to find a solution for both. The
alternative is to dominate the other party
Please find and share an article (copy and paste Web URL into
your discussion) that outlines an example of integrative conflict
resolution where both parties indicated their preferences and
worked towards a resolution together. You must cite the
- textbook and utilize exhibit 2.6 in our textbook to support your
discussion post.
Also, please outline your feedback from the article i.e. why you
selected the article and how it resonated with you.
Your initial discussion post must be 150 words in length.

Answers

I found an article titled "Integrative Conflict Resolution: A Case Study" by Robert I. Field, which provides an in-depth example of how integrative conflict resolution was used to resolve a dispute between a healthcare provider and an insurance company. The article details the specific steps taken by both parties to understand each other's perspectives and preferences, and how they worked together to find a mutually beneficial solution.

I selected this article because it provides a clear and practical example of how integrative conflict resolution can be applied in a real-world setting. The case study format allows the reader to understand the specific challenges that were faced by the healthcare provider and the insurance company, and how they were able to overcome them through collaboration.

The article resonated with me because it illustrates the importance of active listening and mutual understanding in conflict resolution. It emphasizes the need for both parties to clearly express their preferences and concerns, and to work towards a solution that addresses the needs of both. The article also highlights the benefits of integrative conflict resolution, such as increased satisfaction, improved relationships, and greater long-term stability.

Overall, the article is a valuable resource for anyone interested in learning about integrative conflict resolution, and serves as an excellent example of how this approach can be used to resolve disputes in the workplace. It teaches the importance of understanding and actively listening to the other party's concerns and preferences, and how to collaborate effectively to find a solution that addresses everyone's needs.

How does implementing change affect strategic relationship management?
A. It upsets the balance between the needs of key positions.
ОО
B. There is very little impact on relationship management.
O C. Change doesn't impact internal relationships.
O D. It makes fewer resources available to satisfy stakeholders.

Answers

Answer:

A it upsets the balance

Explanation:

Answer:a

Explanation:

it upsets the balance

The level of analysis for the Industry environment is the _____ level:

Answers

Luv I don’t know sorry very sorry

If leaseplan continues its diversity management activities, as described in the case, select the most closely aligned statistics to ots potential outcome

Answers

Tolerate is Thomas's generic action options for managing diversity is most illustrated in the case. Thus, option D is correct.

What is diversity?

Diversity can be defined as the part of the workforce where there is a significant benefit to having a diverse workforce; this can be based on social or ethnic background; this is the state of the variety of people employed in the company.

The lease plan is satisfied that there is gender diversity, which is supported. As there are various numbers of male as well as female employees that are a part of the lease plan. As the number of women working in the company grows, this will demonstrate how the other gender is treated.

Therefore, option D is correct.

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The question is incomplete, Complete question probably will be  is:

Leaseplan Effectively Manages Diversity The term, glass ceiling, was used to represent an absolute barrier or solid roadblock that prevented women from advancing to higher-level positions. The ceiling resulted in women finding themselves stuck in lower-level jobs, ones that did not have profit and loss responsibility, and jobs with less visibility, power, and influence. This scenario is changing. This case illustrates the Leaseplan Effectively Manages Diversity The term, glass ceiling, was used to represent an absolute barrier or solid roadblock that prevented women from advancing to higher-level positions. The ceiling resulted in women finding themselves stuck in lower-level jobs, ones that did not have profit and loss responsibility, and jobs with less visibility, power, and influence. This scenario is changing. This case illustrates the impact motivated leadership and changing company policies can have on gender diversity in the workplace. According to the United States Department of Labor, compared to women comprising 21 percent of the workforce in 1920, women comprised nearly half of the workforce in the United States in 2013, making gender diversity issues more and more important. This activity asks you to identify and apply your knowledge of such aspects of diversity. Read the case below and answer the questions that follow. In 2003, the representatives of LeasePlan USA's top customers were mostly women, as was the majority of the company's employees. However, men represented a large majority of top managers at the company, reflecting the old-boys network type culture that dominated the fleet industry. New leadership decided to change this and provided career counseling to women, revised reward systems to focus on performance instead of seniority, and replaced some existing managers. Two years ago, only one of seven top executives was a woman. Now, three of the top eight executives are women. The company's new chief executive claims that these changes are motivated by strategy rather than political correctness. He says, "LeasePlan doesn't build anything...Our sustainable competitive advantages are people." LeasePlan now also implements a development program catered specifically for female employees. The program includes skills assessments, career guidance, communications, brand building, and panel discussions with female executives from other companies. Which of Thomas's generic action options for managing diversity is most illustrated in the case? Multiple Choice suppress

isolate

deny

include/exclude

tolerate

What is a commodity

Answers

Answer:

Something useful or valuable.

Explanation:

It’s a Noun. Meaning a raw material or primary agricultural product that can be bought & sold, such as copper or coffee.

• a useful or valuable thing, such as water or time

can i go to business school

Answers

Answer:

yess

Explanation:

nothing should hold you back from reaching your goals.

Answer:

Apply to schools and sure, why not

Explanation:

PLEASE HELP!! ILL GIVE 10 POINTS AND BRAINLIEST

how can passion help lead to a successful business?

Answers

Answer: A person with passion typically exudes confidence, and confidence creates value for themselves and others by leading the way, not showing the way.

Professionals who are confident are great leaders and earn the respect and confidence of others. Passion creates excitement.

a. “South Africa’s mobile market: the bottlenecks blocking competition”. With particular reference to the South African economy, discuss the validity of the opinions highlighted in the case study.

Answers

Answer:

k

Explanation:

____ refers to stocks of goods and materials that are maintained for many purposes, the most common being to satisfy normal demand patterns. Group of answer choices Inventory Production Supply Chain Management Logistic

Answers

Answer:

The correct answer is the first option: Inventory.

Explanation:

To begin with, the concept of "Inventory" in the field of business refers to the combination of both the goods that are available for sale and the rar materials that are needed in order to produce a new final good for the company. So therefore that this concept implicates the accumulation of those objects in order to satisfy normal demand patterns that the consumers have. Moreover, the term represents one of the most important assets of the company due to the fact that its rotation involves the number of sales, so that means that a good inventory rotation implicates in a good number of sales and therefore in profits.

QUESTION 82
Lucent Technologies is considering a project that has the following cash flow and WACC data.
a) Determine the project's NPV.
b) Decide whether IRR or MIRR is appropriate for this problem. Explain which of these you chose and determine the value.
c) Given your solutions for a & b, advise management to accept or reject the project by making the appropriate comparisons.
7.45%
WACC:
Year
Cash flows
0
-$32,600 $15,000 $17,000
$13,000
-$4,000

Answers

a)  the NPV of the project is $3,573.36. b) the MIRR of the project is 5.94%.

c) the positive NPV of $3,573.36 and the MIRR of 5.94%, it is advisable for the management to accept the project.

a) To calculate the NPV of the project, we need to discount the future cash flows to their present value using the weighted average cost of capital (WACC) of 7.45%.

Year 0 cash flow: -$32,600

Year 1 cash flow: $\(15,000 / (1 + 0.0745)^1\) = $13,947.74

Year 2 cash flow: $\(17,000 / (1 + 0.0745)^2\) = $14,377.64

Year 3 cash flow: $\(13,000 / (1 + 0.0745)^3\) = $10,748.23

Year 4 cash flow: -$\(4,000 / (1 + 0.0745)^4\) = -$2,900.25

NPV = -$32,600 + $13,947.74 + $14,377.64 + $10,748.23 - $2,900.25 = $3,573.36

Therefore, the NPV of the project is $3,573.36.

b) The IRR (Internal Rate of Return) and MIRR (Modified Internal Rate of Return) are both methods used to evaluate the attractiveness of an investment opportunity. The IRR is the discount rate that makes the NPV of the project equal to zero, while the MIRR is the discount rate that equates the present value of cash inflows to the future value of cash outflows.

In this case, since the project has non-conventional cash flows (negative initial cash flow followed by positive cash flows and then a negative cash flow), the IRR approach may lead to multiple IRR values, making it unreliable. Therefore, MIRR is more appropriate for this problem.

To calculate MIRR, we need to find the future value of the initial outflow, and the present value of all future inflows, then find the discount rate that equates these values.

Future value of the initial outflow: -$ = -$41,670.92

Present value of future inflows: $15,000 + $17,000 + $13,000 - $4,000 = $41,000

MIRR = [(41,000 / 41,670.92)^(1/4)] - 1 = 5.94%

Therefore, the MIRR of the project is 5.94%.

c) Based on the positive NPV of $3,573.36 and the MIRR of 5.94%, it is advisable for the management to accept the project. The positive NPV indicates that the project's inflows exceed the outflows, generating value for the company, while the MIRR of 5.94% is higher than the cost of capital of 7.45%, indicating that the project is expected to provide returns that are higher than the required rate of return.

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HELP PLEASE! 50 POINTS
1. being driven and dependable will never truly help us find success as a student or employee.
True
False
2. being part of extra curricular activities and clubs isn’t really important, we are already so busy that it would just stress us out
True
False
3. Lifelong learners understand that learning is a lifestyle not a destination
True
False
4. teachers, parents, school groups, quality peers and mentors are just a few resources we can lean on in life
True
False

Answers

1: True. 2. False. 3. False. 4. True.

As long as the organization is making good progress toward achieving an ideal standard, its management may not need to: Take any corrective action if the variance for the period is large. Curtail spending on variable costs. Modify its standards. Take any corrective action when variances are reported, even if the variances for the period are substantial in amount. Curtail spending on fixed costs.

Answers

Answer: Take any corrective action when variances are reported, even if the variances for the period are substantial in amount

Explanation:

When organizations are making progress, the management may not need to impose some measures but allow the measures which was already in place for the success to keep playing out. One of the measures the management doesn't need to consider when making good progress to success is taking any corrective action when variances are reported, even if the variances for the period are substantial in amount

A company purchased equipment valued at $66000. It traded in old equipment for a $9000 trade in allowance. The old equipment cost $44000 and accumulated depreciation of $36000. This transaction has commercial substance. What is the recorded value of the new equipment?

Answers

Answer:

11000.

Explanation:

Is the answer to this question

908 25. द्वितीय लेखाविधि तथा विश्लेषण Nuwakot Consultancy was organized on June 2, 2019, by a group of accountants to provide accounting and tax services to small businesses in Kathmandu. The following transactions occurred during the first month of business. June 2 June 5 June 8 June 15 June 17 June 23 June 28 June 29 Received contributions of Rs. 10,000 from each of the three owners of the business is exchange for shares of stock. Purchased a computer system for Rs. 12,000. The agreement with the vendor requires a down payment of Rs. 2,500 with the balance in 60 days. Signed a two-year promissory note at the bank and received cash of Rs. 20,000. Billed Rs. 12,350 to clients for the first-half of June. Paid a Rs. 900 bill from the local newspaper for advertising for the month of June. Received the amounts billed to clients for services performed during the first half of the month. Received and paid gas, electric, and water bills. The amount is Rs. 2,700. Received the landlord's bill for Rs. 2,200 for rent on the office space that Nano Consultancy leases. The bill is payable by the 10th of the following month. Paid salaries and wages for June. The total amount is Rs. 5,670. Billed Rs. 18,400 to clients for the second half. Declared and paid dividends in the amount of Rs. 6,000. June 30 June 30 June 30 Required: (a) Journal entries on the books of Nuwakot Consultancy. (For the transactions entered into during the month. Ignore depreciation and interest expenses). (b) Post the transactions into T-accounts. (c) A trial balance at June 30, 2019.​

Answers

1. The Journal Entries on the books of Nuwakot Consultancy for the June Transactions are as follows:

Journal Entries:

Date    Transactions                          Debit       Credit

June 2 Cash                               Rs. 30,000

Common Stock                                            Rs. 30,000

June 5 Computer                      Rs. 12,000

Cash                                                               Rs. 2,500

Accounts Payable                                         Rs. 9,500

June 8 Cash                            Rs. 20,000

Notes Payable                                            Rs. 20,000

June 15 Accounts Receivable Rs. 12,350

Service Revenue                                        Rs. 12,350

June 17 Advertising Expense     Rs. 900

Cash                                                                Rs. 900

June 23 Cash                          Rs. 12,350

Accounts Receivable                                Rs. 12,350

June 28 Utility Expense           Rs. 2,700

Cash                                                            Rs. 2,700

June 29 Rent Expense            Rs. 2,200

Rent Payable                                             Rs. 2,200

June 30 Salaries &

   Wages Expense                  Rs. 5,670

Cash                                                          Rs. 5,670

June 30 Accounts Receivable Rs. 18,400

Service Revenue                                   Rs. 18,400

June 30 Dividends                Rs. 6,000

Cash                                                       Rs. 6,000

2. The Posting of the transactions into T-accounts is as follows:

Cash Account

Date    Transactions                          Debit       Credit

June 2 Common Stock             Rs. 30,000

June 5 Computer                                              Rs. 2,500

June 8 Notes Payable             Rs. 20,000

June 17 Advertising Expense                             Rs. 900

June 23 Accounts Receivable Rs. 12,350

June 28 Utility Expense                                  Rs. 2,700

June 30 Salaries and Wages Expense          Rs. 5,670

June 30 Dividends                                         Rs. 6,000

June 30 Balance                                           Rs. 44,580

                                               Rs. 62,350    Rs. 62,350

Common Stock

Date    Transactions                          Debit       Credit

June 2 Cash                                               Rs. 30,000

Computer

Date    Transactions                          Debit       Credit

June 5 Cash                              Rs. 2,500

June 5 Accounts Payable        Rs. 9,500

June 30 Balance                                        Rs. 12,000

Accounts Payable

Date    Transactions                          Debit       Credit

June 5 Computer                                        Rs. 9,500

Notes Payable

Date    Transactions                          Debit       Credit

June 8 Cash                                              Rs. 20,000

Rent Payable

Date    Transactions                          Debit       Credit

June 29 Rent Expense                              Rs. 2,200

Accounts Receivable

Date    Transactions                          Debit       Credit

June 15 Service Revenue          Rs. 12,350

June 23 Cash                                             Rs. 12,350

June 30 Service Revenue        Rs. 18,400

Service Revenue

Date    Transactions                          Debit       Credit

June 15 Accounts Receivable                    Rs. 12,350

June 30 Accounts Receivable                   Rs. 18,400

June 30 Balance                      Rs. 30,750

Advertising Expense

Date    Transactions                          Debit       Credit

June 17 Cash                                  Rs. 900

Utility Expense

Date    Transactions                          Debit       Credit

June 28 Cash                             Rs. 2,700

Rent Expense

Date    Transactions                          Debit       Credit

June 29 Rent Payable               Rs. 2,200

Salaries and Wages Expense

Date    Transactions                          Debit       Credit

June 30 Cash                              Rs. 5,670

Dividends

Date    Transactions                          Debit       Credit

June 30 Cash                                Rs. 6,000

3. The preparation of the trial balance at June 30, 2019, is as follows:

Date    Transactions                          Debit       Credit

Cash                                            Rs. 44,580

Common Stock                                            Rs. 30,000

Computer                                   Rs. 12,000

Accounts Payable                                         Rs. 9,500

Notes Payable                                            Rs. 20,000

Rent Payable                                                Rs. 2,200

Accounts Receivable               Rs. 18,400

Service Revenue                                       Rs. 30,750

Advertising Expense                    Rs. 900

Utility Expense                           Rs. 2,700

Rent Expense                            Rs. 2,200

Salaries and Wages Expense   Rs. 5,670

Dividends                                  Rs. 6,000

Totals                                      Rs. 92,450 Rs. 92,450

What are the journal entries?

Journal entries are made to record the transactions of a business as they occur daily.

Journal entries help post transactions to the general ledger (T-accounts).

With a trial balance, the balances in the general ledger are summarized to prepare financial statements.

Transaction Analysis:

June 2 Cash Rs. 30,000 Common Stock Rs. 30,000

June 5 Computer Rs. 12,000 Cash Rs. 2,500 Accounts Payable Rs. 9,500

June 8 Cash Rs. 20,000 Notes Payable Rs. 20,000

June 15 Accounts Receivable Rs. 12,350 Service Revenue Rs. 12,350

June 17 Advertising Expense Rs. 900 Cash Rs. 900

June 23 Cash Rs. 12,350 Accounts Receivable Rs. 12,350

June 28 Utilities Expense Rs. 2,700 Cash Rs. 2,700

June 29 Rent Expense Rs. 2,200 Rent Payable Rs. 2,200

June 30 Salaries and Wages Expense Rs. 5,670 Cash Rs. 5,670

June 30 Accounts Receivable Rs. 18,400 Service Revenue Rs. 18,400

June 30 Dividends Rs. 6,000 Cash Rs. 6,000

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A hyperlink:
A. can tell you if the battery on your laptop is running low.
B. can run the grammar check function.
C. can take the user to an external Internet site.
D. can spell check your slide presentation.

Answers

Can run the grammar check function

Answer: C

Explanation:

Cardinal Company is considering a five-year project that would require a $2,915,000 investment in equipment with a useful life of five years and no salvage value. The company’s discount rate is 16%. The project would provide net operating income in each of five years as follows:



Sales $ 2,863,000
Variable expenses 1,014,000
Contribution margin 1,849,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs $ 781,000
Depreciation 583,000
Total fixed expenses 1,364,000
Net operating income $ 485,000

15. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the project’s actual simple rate of return? (Round your answer to 2 decimal places.)

Answers

Answer:

The initial investment is $2,915,000. The annual net operating income is $485,000. The project's simple rate of return is the annual net operating income divided by the initial investment.

The variable expense ratio is 45%, which means that the variable expenses are $2,863,000 x 45% = $1,288,350.

The contribution margin is $2,863,000 - $1,288,350 = $1,574,650.

The fixed expenses are $781,000 + $583,000 = $1,364,000.

The net operating income is $1,574,650 - $1,364,000 = $210,650.

The simple rate of return is $210,650 / $2,915,000 = 7.22%.

Therefore, the project's actual simple rate of return is 7.22%.

A company's total overhead varies with output level. It has recorded the following observations of output and total overhead cost: Output level 100,000 units 400,000 units It is known that there is an increase in fixed cost of $200,000 when output exceeds 300,000 units. Using the high low method, what is the variable overhead cost per unit? (2 Points) O A. $5.00 per unit B. $5.67 per unit Total overhead cost $800,000 $2,500,000 C. $6.25 per unit D. $6.60 per unit​

Answers

Answer:

Explanation:

Using the high-low method, we need to first find the variable cost per unit and then use it to calculate the fixed cost.

Total change in overhead cost = $2,500,000 - $800,000 = $1,700,000

Output change = 400,000 - 100,000 = 300,000

Therefore, the variable cost per unit is:

Variable cost per unit = Total change in overhead cost / Output change

Variable cost per unit = $1,700,000 / 300,000

Variable cost per unit = $5.67 per unit

To find the fixed cost, we can use the following equation:

Fixed cost = Total overhead cost - (Variable cost per unit x Output level)

For the high output level of 400,000 units:

Fixed cost = $2,500,000 - ($5.67 x 400,000)

Fixed cost = $2,500,000 - $2,268,000

Fixed cost = $232,000

For the low output level of 100,000 units:

Fixed cost = $800,000 - ($5.67 x 100,000)

Fixed cost = $800,000 - $567,000

Fixed cost = $233,000

Since the fixed cost increases by $200,000 when output exceeds 300,000 units, we can conclude that the fixed cost for the 400,000 unit level is $233,000 + $200,000 = $433,000.

Therefore, the variable overhead cost per unit using the high-low method is $5.67 per unit. The correct answer is option B.

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Three years ago, Cornelius Matthews purchased 500 shares in the Vanguard Dividend Growth fund - a Morningstar five-star fund that invests in corporations that are currently paying dividends and is a fund that will provide a steady stream of dividend income. His rationale fort choosing this fund was that he wanted a fund that was conservative and highly rated. Each share in the fund cost $22. At the end of the three years, he received income dividends and capital gain distributions that total $3.62 a share for the three-year period. At the end of the three years, the shares in the fund were selling for $27.

How much did Mr. Matthews invest in this fund?

A$11,000
B$13,500
C$5.14
D$3.62

Answers

Mr. Matthews' investment in the Vanguard Dividend Growth fund was (A) $11,000

To determine how much Mr. Matthews invested in the Vanguard Dividend Growth fund, we need to calculate the cost of the initial investment of 500 shares at $22 per share:

500 shares x $22 per share = $11,000

Therefore, Mr. Matthews invested $11,000 in the fund.

We are also told that Mr. Matthews received income dividends and capital gain distributions that total $3.62 per share for the three-year period. To determine the total amount of dividends and distributions received, we can multiply $3.62 per share by 500 shares and by 3 years:

$3.62 per share x 500 shares x 3 years = $5,430

Therefore, Mr. Matthews received $5,430 in income dividends and capital gain distributions over the three-year period.

Finally, we are told that the shares in the fund were selling for $27 at the end of the three years. To determine the value of Mr. Matthews' investment at the end of the three years, we can multiply the current share price by the number of shares he owns:

500 shares x $27 per share = $13,500

Therefore, Mr. Matthews' investment in the Vanguard Dividend Growth fund was $11,000, and the value of his investment at the end of the three years was $13,500.

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how are payday lenders different from a bank or credit union

Answers

The payday lenders are different from a bank/credit union because of its mode of repayment services.

What is payday loan?

The payday loan is a short-term borrowing based where the lender will usually impose higher-interest credit based on the borrower's income

Let understand that the similarities between the payday lenders and bank/credit union is the credit service they provided to borrowers.

However, what makes the Payday loans different from banks loans is the duration of repayments.

Unlike other types of loans, the payday loans repayment period is usually shorter, a minimum of a month to a maximum of 24 months.

In conclusion, the payday lenders are different from a bank/credit union because of its mode of repayment services.

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Imagine yourself as an interviewer. What 5 qualities would you look for in
an applicant? Rank them from 1-5 (1 being the most important) and explain
why you ranked them that
way.

Answers

1. Determined

As an interviewer, I would want my applicant to be determined to finish their jobs and be incredibly precise on their work. I'd want them to feel like they can do it, KNOW that they can do it. That's what makes a good employee.

2. Hard Working

I would want my employees to be hard at work, or even myself hard at work. I want them to try their hardest, try as good as they can. Attempt to perfect the mistakes that you had in the past, try and make a new future for yourself. Work hard.

3. Enthusiasm

Enthusiasm is, surprisingly, an important part in choosing an applicant for a job. You want them to be enthusiastic about what they're doing, try and not let them be over-stressed by the work that's being put on them.

4. Friendliness

If I were hiring someone, I'd want them to be friendly. Not a mean old grump, more of a "Hey, good morning' fella!" type of guy. It's better to make a friendly atmosphere around the office that everyone can enjoy rather than a tight atmosphere, introvertly unable to talk.

5. Chill

I'd want a relaxed atmosphere, like stated in no. 4. A pal that sits back and chills during break, laid back and easy going. Easy to start a conversation with.

Solid Oak Bureau Company uses job costing. Solid Oak Bureau Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information is available:

Estimated amounts Trimming Dept. Finishing Dept.
Direct labor cost $320,000 $400,000
Direct labor hours 25,000 40,000
Manufacturing overhead costs $416,000 $260,00


Actual amounts Trimming Dept. Finishing Dept.
Direct Material requisitioned $22,500 $52,500
Direct Labour cost $35,400 $37,100
Direct Labour hours 5400 5000

What is the predetermined manufacturing overhead rate for the Trimming Department?
a. 77% of direct labor cost
b. 107% of direct labor cost
c.130% of direct labor cost
d. 100% of direct labor cost

Answers

Answer:

c. 130% of direct labor cost

Explanation:

Note : Manufacturing overhead is allocated based on direct labor cost in the Trimming Department.

Where,

Budgeted Overheads are $416,000

Total Direct Labor Cost  are $320,000

Therefore,

Predetermined Overhead Rate = Budgeted Overheads ÷ Total Direct Labor Cost

                                                    = $416,000 ÷ $320,000

                                                    = $1.30 or 130 %      

The predetermined manufacturing overhead rate for the Trimming Department is 130 %  

_____ was not alone in asserting that the united states was rapidly and by necessity becoming an entrepreneurial economy.

Answers

The United States is rapidly and inescapably transitioning to an entrepreneurial economy, Pete Druker claimed, but he was not alone in this assertion.

How can entrepreneurship contribute to the economic growth of a nation?

They stimulate new employment through the development of novel goods and services, which eventually accelerates economic growth. Therefore, it should be understood that entrepreneurship-promoting public policy is crucial for economic growth.

What role does an entrepreneur play in business?

Innovation and creativity, taking calculated risks, succeeding in those risks, organizing and managing one's business, catalyzing economic growth, getting through resistance to change, and doing research are some of the various aspects of entrepreneurship.

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Find the following values.
a. An initial $500 compounded for 10 years at 6%
b. An initial $500 compounded for 10 years at 12%
c. The present value of $500 due in 10 years at 6%
d. The present value of $1,552.90 due in 10 years at 12% and at 6%
e. Define present value and illustrate it using a time line with data from Part d. How are present values affected by interest rates?

Answers

a. An initial $500 compound-ed for 10 ye-ars at 6%.

PV= $500

I=6%

N= 10

FV=?

PMT= 0

FV = PV(1+i)^n

500(1.06)^10= $895.45

b. An initial $500 comp-ounded 10 years at 12%.

I= 12%

N= 10

PMT= 0

PV= -500

FV= ?

FV = PV(1+i)^n

500(1.12)^10= $1552.92

c. The pre-sent va lue of $500 due in 10 yea-rs at 6%

I= 6%

N= 10

PMT=0

PV=?

FV=500

PV = FV/(1+i)^n

PV = $500 / (1.06)^10

= $279

d. The pre-sent value $1,552.90 due in 10 ye-ars at %12 and at %6

I= 12% and 6%

N= 10

PMT= 0

PV= ?

FV= $1,552.90

PV = FV/(1+i)^n

PV = $1,552.90 / (1.12)^10

= $499.99

PV = $1,552.90 / (1.06)^10

= $867.13

e. Present Value

Present Value is today's value of mo-ney received at some point in the future discount-ed at current int-erest rates.

How are present values affect-ed by int-erest rates? The pre-sent value gets small-er as you incr-ease the disco-unt rate.

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An example of an investing activity on a statement of cash flows is:
Multiple Choice
Paying wages of employees.
Withdrawals by the owner
Purchase of land.
Selling inventory.
Contribution from owner.

Answers

An example of an investing activity on a statement of cash flows is Purchase of land.

Which of the following actions falls under the category of investing?

Long-term investments, long-term purchases, taking notes payable, lending loans, and a select few other investments aside from cash and cash equivalents are all included in investing operations.

What exactly is a financial activity?

In accounting, the term "investing activities" refers to the acquisition and disposal of long-term assets as well as other corporate investments over a certain reporting period. The reported investing activities of a company provide information on the total investment gains and losses it incurred over a specific time period.

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