How are wages for a particular job determined?

by the federal Wage and Hour Department

by the amount of inflation in the economy

by the equilibrium between supply and demand for workers

by advertisements in the newspaper or online

Answers

Answer 1

Answer:

by the equilibrium between supply and demand for workers

Explanation:

Wages are the amount to pay workers for a particular job when employed. Therefore, determining the wages for a particular job is mostly dependent "on the equilibrium between supply and demand for workers, " and sometimes location.

This is because the higher the number of workers available, the lesser the employers would be willing to increase the wage level of employees given the fact that they can easily find another employee. However, where there is a lesser number of employees for a particular job, the employers would be willing to increase the employees' wages to entice them.

Answer 2

According to the labor market equilibrium, The wages for a particular job are determined by the equilibrium between supply and demand for workers. Thus, the correct answer is option (c).

The term "labor market," sometimes referred to as the "job market," describes the supply and demand for labor, with employers meeting the demand and employees meeting the supply.

The supply and demand of labor, which are met by employees and employers respectively, are referred to as the labor market.Both macroeconomic and microeconomic perspectives on the labor market are important because they provide useful information on employment and the state of the economy as a whole.Two crucial macroeconomic indicators are labor productivity rates and unemployment rates.

Therefore, The wages for a particular job are determined by the equilibrium between supply and demand for workers. Thus, the correct answer is option (c).

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Related Questions

When the number of units produced equals the number of units sold, ______. Multiple select question. absorption costing net income is greater than variable costing net income absorption costing total expense is greater than variable costing total expense absorption costing net income is equal to variable costing net income all fixed overhead incurred flows to the income statement under both costing methods absorption costing total expense is less than variable costing total expense absorption costing net income is less than variable costing net income

Answers

Answer:

absorption costing net income is equal to variable costing net income.

Explanation:

A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.

Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.

Additionally, negotiated transfer prices can be defined as the final price reached between the buyer (consumer) of finished goods and services and the trader (seller) of such goods and services.

When the number of units produced equals the number of units sold, absorption costing net income is equal to variable costing net income as all the fixed overhead are entered into the income statement and thus, there wouldn't be any change in inventory.

On December 31, 2020, Oriole Company sold for $153000 an old machine having an original cost of $266000 and a book value of $113000. The terms of the sale were as follows: $40000 down payment $56500 payable on December 31 each of the next two years The agreement of sale made no mention of interest; however, 7% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2020 rounded to the nearest dollar? (The present value of an ordinary annuity of 1 at 7% for 2 years is 1.80802.)

Answers

Answer:

$102,153.13

Explanation:

Amount payable on December 31 each of the next two years = $56,500

The PV of ordinary annuity of ($1,7%,2 years) is 1.80802

The amount of the notes receivable net of the unamortized discount = Amount Payable * PV($1, 7%, 2)

= $56,500 * 1.80802

= $102,153.13

So, the amount of the notes receivable net of the unamortized discount on December 31, 2020 will be $102,153.13.

CAN SOMEONE PLEASE ACTUALLY HELP AND NOT USE THIS JUST FOR POINTS. I REALLY NEED THE HELP.

What are ?

Business Description

Marketing Strategies

Competitive Analysis

Marketing Plan

Operations and Management Plan

Financial Plan

Answers

The business description is basically describing what the business is for like what is the purpose of the business or what the business is doing.

Marketing strategies is basically the methods used by a business to promote their products such as public relations advertisement etc.

The marketing plan is basically a strategy that is set by the business to attract customers.

Operations and management plan is basically listing the organizational structure in the business and the activity those individuals will carry out.

The financial plan of a business is basically a financial strategy to determine how much money/monetary capital is required for the daily operations of the business.

define nationalization.​

Answers

Answer:

the process of transforming privately owned assets into public assets by bringing them under the public ownership of a national government or state.

Explanation:

Lang Warehouses borrowed $196,401 from a bank and signed a note requiring 7 annual payments of $33,942 beginning one year from the date of the agreement. (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: Determine the interest rate implicit in this agreement. (Do not round intermediate calculations. Round interest rate to 1 decimal place.)

Answers

Answer:

5%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

The interest rate implicit in the agreement can be determined by finding the internal rate of return.

Cash flow in year 0 =  $-196,401

Cash flow each year from year 1 to 7 = $33,942

IRR = 5%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

Question 11 (3 points)
When considering the costs and benefits of a decision, you should do something as
long as
a) the benefits are less than the costs
b) the costs are less than the benefits
c) the costs and benefits are both high
d) the costs and benefits are both low

Answers

Answer:b

Explanation:

I think it is

Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R Supplies costs $ 74,000 $ 74,000 Power costs $ 34,200 $ 33,400 Inspection costs $ 27,000 $ 33,400 Assembly costs $ 39,000 $ 39,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives

Answers

Answer:

Explanation:

Relevant costs are the costs which are affected by the decisions made by the management of an organization while irrelevant costs do not change in future as they're not affected by the decisions from the management.

Based on the information given, the relevant cost are:

1. Power cost

2. Inspection cost

The non relevant cost are:

1. Supplies cost

2. Assembly cost

Winston Company estimates that the factory overhead for the following year will be $478,800. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 26,600 hours. The total machine hours for the year were 54,000 hours. The actual factory overhead for the year was $986,000. Enter the amount as a positive number.

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the predetermined overhead rate:

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

Predetermined manufacturing overhead rate= 478,800 / 26,600

Predetermined manufacturing overhead rate= $18 per machine hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 18*54,000

Allocated MOH= $972,000

Finally, the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 986,000 - 972,000

Underallocated overhead= $14,000

Saturn Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased. Pluto Corporation owns 65% of Saturn's voting shares. On Jan 1, 20X7, Pluto Corporation purchased $120,000 face value of Saturn bonds from Star for $118,020. On the date Pluto purchased the bonds, the bonds' carrying value on Saturn's book was $126,019. The bonds pay 12 percent interest annually on December 31. The preparation of consolidated financial statements for Saturn and Pluto at December 31, 20X9, required the following consolidating entry:
Based on the information given above, what amount of gain or loss on bond retirement is included in the 20X7 consolidated income statement?
a. $8,000 gain
b. $5,200 gain
c. $8,000 loss
d. $5,200 loss

Answers

Answer:

a. $8,000 gain

Explanation:

The face value of the bonds purchased by Pluto Corporation are $120,000. The bonds are purchased at discount of $1,980.  The bonds have carrying value of $126,019 at the time of purchase. The net gain or loss is calculated by the difference between two values.

$120,000 - $126,019 - $6,019

The discount amount of the bond was $1,980.

Total gain on the bonds approximately ($6,019 + $1,980) = $8,000

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 10,600 65% Conversion costs $ 12,800 30% A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 142,100 Conversion costs $ 359,500 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for conversion costs for the first department for the month is closest to:

Answers

Answer:

$46.04

Explanation:

It is important to note that Gunes Corporation uses the weighted-average method. This means we are only interested in the Equivalent units completed and transferred and units in working process.

Total Conversion Cost

Consider the cost in opening work in process and cost during the year.

Total Conversion Cost = $12,300 + $359,000 = $371,300

Equivalent Units

Consider work completed in units completed and transferred and units in working process.

Equivalent Units = 7,400 x 100% + 1,900 x 35 % = 8,065 units

The units in working process have been calculated as :

Units in working process = 800 + 8500 - 7,400 = 1,900

Cost per Equivalent Units

Cost per Equivalent Unit = Total Cost ÷ Total Equivalent Units

                                           = $371,300 ÷ 8,065 units

                                           = $46.04

The cost per equivalent unit for conversion costs for the first department for the month is closest to $46.04

Answer:

$46.16

Explanation:

It is important to note that Gunes Corporation uses the weighted-average method. This means we are only interested in the Equivalent units completed and transferred and units in working process.

Total Conversion Cost

Consider the cost in opening work in process and cost during the year.

Total Conversion Cost = $12,800 + $359,500 = $372,300

Equivalent Units

Consider work completed in units completed and transferred and units in working process.

Equivalent Units = 7,400 x 100% + 1,900 x 35 % = 8,065 units

The units in working process have been calculated as :

Units in working process = 800 + 8500 - 7,400 = 1,900

Cost per Equivalent Units

Cost per Equivalent Unit = Total Cost ÷ Total Equivalent Units

                                          = $372,300 ÷ 8,065 units

                                          = $46.16

Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced. Overhead costs of $94,500 were estimated and allocated to the following activities: Activities Cost Drivers Total Cost
Materials handling Number of requisitions $40,000
Machine setups Number of setups 21,500
Quality inspection Number of inspections 33,000
$94,500 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total
Number of requisitions 400 600 1,000
Number of setups 200 300 500
Number of inspections 200 400 600 Instructions
(a) Determine the overhead rates for each activity Expected Use Estimatedof Cost Driver/Activity-Based
Activity Cost Pools Overhead Activity OH Rates
Materials Handling/ requisition
Machine Setups/setup
Quality inspections/ inspection
(b) Assign the manufacturing overhead costs for April to the two products using activity-based costing, and calculate a per unit OH cost.

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the activity rates using the following formula:

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

Materials handling=  40,000 / 1,000= $40 per requisition

Machine setups= 21,500 /500= $43 per setup

Quality inspection=  33,000 / 600= $55 per inspections

Now, we can allocate overhead to each product:

Missile range instruments:

Materials handling=  40*400= $16,000

Machine setups= 43*200= $8,600

Quality inspection= 55*200= $11,000

Total allocated overhead= $35,600

Space pressure gauges:

Materials handling=  40*600= $24,000

Machine setups= 43*300= $12,900

Quality inspection= 55*400= $22,000

Total allocated overhead= $58,900

Finally, the unitary overhead cost:

Missile range instruments:

Unitary allocated overhead= 35,600/50= $712

Space pressure gauges:

Unitary allocated overhead= 58,900/300= $196.33

Time Remaining 1 hour 8 minutes 42 seconds01:08:42 Item 5 Time Remaining 1 hour 8 minutes 42 seconds01:08:42 Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 22,020 hours and the total estimated manufacturing overhead was $550,500. At the end of the year, actual direct labor-hours for the year were 21,800 hours and the actual manufacturing overhead for the year was $550,500. Overhead at the end of the year was:

Answers

Answer:

under-applied overheads is $1,340

Explanation:

Note : I have attached the full question/similar as an image below.

Actual Overheads   = $594,960

Applied Overheads = $594,960 / 22,200 x 22,150 = $593,620

Since,

Actual Overheads  > Applied Overheads, overheads have been under-applied.

Amount of under-applied overheads is $1,340 ($594,960 - $593,620).

Please help!
Note that common skills are listed toward the top and less common skills are listed toward the bottom. According to O*NET, what are some common skills needed by Personal Financial Advisors? Select four options.

critical thinking
judgment and decision making
active listening
reading comprehension
operation and control
quality-control analysis

Answers

Answer:

critical thinking

judgment and decision making

reading comprehension

operation and control

critical thinking, judgment and decision making, reading comprehension and operation and control are some common skills needed by Personal Financial Advisors. Hence, options A, B, D and E are correct.

What is Personal Financial Advisors?

Personal financial advisors assess the needs of their clients' finances and offer advice on choices for investments, tax laws, and insurance. Advisors help their clients create both short- and long-term goals, including investing for retirement and saving for children's education.

An expert who provides expertise for customers' financial, investment, and personal decision-making is a financial advisor. Financial advisors may be employed or hired as independent contractors by a larger financial institution.

Both "advisor" and "adviser" are valid spellings for someone who gives counsel, such a financial advisor. The vast majority—if not all—of the things we provide here are provided by partners who give us money. This might have an impact on the subjects, venues, and methods of our writing.

Thus, options A, B, D and E are correct.

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Bumble Company is planning an IPO and management is meeting with their investment bankers to discuss the pricing strategy for this first time offering of the company's shares to the public. Bumble's CFO has spent a lot of time researching the price to earnings per share ratios (P/E Ratios) of several competitor companies, including Match which currently trades at $100 per share. The competitor P/E ratios range from 25-30x the next year's forecasted earnings per share. The CFO is forecasting Bumble's next year's earnings per share will be $3.20. He expects the Investment Bank to discuss a price range for the Bumble IPO of ...?
a. $100-$150 per share
b. $50-$100 per share
c. $80-$96 per share
d. Not enough information

Answers

Answer:

c. $80-$96 per share

Explanation:

given data

currently trades = $100 per share

P/E ratios = 25-30x

earnings per share = $3.20

solution

The company fixes the share price based on the P/E ratio

Price per share = Earning per share × P/E ratio      ............1

and

Lower end of price = Expected earning per share × Lowest P/E ratio      .......2

Lower end of price = $ 3.2 × 25

Lower end of price = $ 80

and

Higher end of price = Expected earning per share × Highest P/E ratio     .......3

Higher end of price = $ 3.2 × 30

Higher end of price = $ 96

So that here share price for the IPO will be in the range of $ 80 - $ 96 per share.

Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,700 cash and $33,700 of photography equipment in the company in exchange for common stock. 2 The company paid $2,300 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $900 cash. 20 The company received $3,531 cash in photography fees earned. 31 The company paid $695 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.

Answers

Answer:

1. See the attached excel file for the T-accounts.

2. Total of credit side = Total of debit side = $43,931

Explanation:

1. Post the transactions to the T-accounts.

Note: See the attached excel file for the T-accounts.

2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.

The trial balance will look as follows:

                                        Pose-for-Pics

                                        Trial balance

                                      For August, 31

Details                                     Debit ($)           Credit ($)    

Cash                                           6,336  

Equipment                               33,700  

Common stock                                                 40,400

Prepaid Insurance                     2,204  

Insurance Expenses                      96  

Office Supplies                            900  

Photography fees                                                3,531

Utilities Expense                          695                            

Total                                         43,931               43,931  

DT Motors paid its first annual dividend yesterday in the amount of $4.75 a share. The company plans to increase the dividend at a rate of 20 percent per year for the next 3 years. Thereafter, the dividend is expected to grow at 3.50 percent per year indefinitely. What is the amount of the dividend that is expected to be paid 11 years from now (D11 )

Answers

Answer:

$9.52

Explanation:

Calculation for the amount of the dividend that is expected to be paid 11 years from now (D11 )

D11 = 4.75(1.20)3(1.035)8

D11= $9.52

Therefore the amount of the dividend that is expected to be paid 11 years from now (D11 ) is $9.52

The objective theory of contracts refers to the fact that in determining whether a valid offer exists, the court will mainly consider whether: (A) The offeror and offeree were acting in a calm, reasonable, unemotional manner. (B) The intentions--both obvious and unobserved--of the offeror and offeree match their actions. (C) The offer would seem fair from the perspective of a prudent and reasonable person. (D) A reasonable person, observing the situation, would believe a genuine offer had been made.

Answers

Answer:

(A) The offeror and offeree were acting in a calm, reasonable, unemotional manner.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, etc.

Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.

Hence, the objective theory of contracts refers to the fact that in determining whether a valid offer exists, the court will mainly consider whether the offeror and offeree were acting in a calm, reasonable, unemotional manner.

Note: the offeror is the party that offers the project to another party while the offeree is the recipient of the offer in a contract.

Gabrielle just won $2.5 million in the state lotte, she is given the options of receiving a total of $1.3 million now, or she can elect to be paid 100,000 at the end of each of the next 25year. if Gabrielle can earn 5% annually on her investment, from a strict economic point of view which option should she takes​

Answers

é miulhão e meiom Explanation:

Brainly is forcing me to answering this, don’t report me sorry

Sunland, Inc. had pre-tax accounting income of $2100000 and a tax
rate of 40% in 2018, its first year of operations. During 2018 the company had the following transactions:

Received rent from Jane, Co. for 2019 $90000
Municipal bond income $114000
Depreciation for tax purposes in excess of book depreciation $54000
Installment sales profit to be taxed in 2019 $156000
At the end of 2018, which of the following deferred tax accounts and balances exist at December 31, 2018?
a. Deferred tax asset $57600
b. Deferred tax asset $36000
c. Deferred tax liability $57600
d. Deferred tax liability $36000

Answers

Answer:

b. Deferred tax asset $36000

Explanation:

The computation of the deferred tax is shown below:

= Rent received from Jane for the year 2019 × tax rate in 2018

= $90,000 × 40%

= $36,000

Here the rent received on 2019 but the tax should be paid on 2018 so this represent the deferred tax asset

Therefore the option b is correct

You should use a multimedia slide or canvas only if __________. a. the slide or canvas highlights important points b. your presentation is longer than ten minutes c. you have completed training in developing and using the software d. you develop your ideas using the direct organizational strategy

Answers

Answer:

a.

Explanation:

thats my answer my module

You should use a multimedia slide or canvas only if the slide or canvas highlights important points. The Option A.

When should you consider using a multimedia slide or canvas?

Multimedia slides or canvases are effective tools for highlighting important points in your presentation. By incorporating visual elements, such as images, charts, or videos, you make key information more engaging and memorable for your audience.

These visual aids can help reinforce your message, clarify complex concepts, and create a visually appealing presentation but it is important to use multimedia slides or canvases judiciously and ensure that they serve a purpose in enhancing the understanding and impact of your content. Therefore, the Option A is correct.

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express 75 kobo as a decimal of 1 naira 50 kobo​

Answers

0.05 i think because (15 kobo / 300 kobo) = 0.05

On December 31, 2017, Extreme Fitness has adjusted balances of $980,000 in Accounts Receivable and $91,000 in Allowance for Doubtful Accounts. On January 2, 2018, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $28,000. What amount would the company report as its net accounts receivable on December 31, 2017

Answers

Answer:

Account receivable = $889,000

Explanation:

The company would record as net receivables, the total amount on accounts receivable less total amount on the allowance for uncollectible account.

The above means that the balance would represent the amount of credit that has gone bad hence the value represent balance on net receivable account.

Therefore,

Accounts receivable

= Adjusted balance in accounts receivable - Allowance for doubtful account

= $980,000 - $91,000

= $889,000

Sheffield Company took a physical inventory on December 31 and determined that goods costing $218,900 were on hand. Not included in the physical count were $25,610 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $22,510 of goods sold to Alvarez Company for $32,160, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Sheffield report as its December 31 inventory

Answers

Answer:

$267,020

Explanation:

Calculation to determine what amount should Sheffield report as its December 31 inventory

Using this formula

December 31 inventory= Goods costing on hand+Goods purchased+Goods sold

Let plug in the formula

December 31 inventory= $218,900+$25,610+$22,510

December 31 inventory=$267,020

Therefore The amount that Sheffield should report as its December 31 inventory is $267,020

define moral hazard.​

Answers

Answer:

Moral hazard is type of situation in where on person or party gets involved in a very risky event when knowing that it is protected against and the person or party, which will incur the cost. This can arise when both people or parties have a incomplete information about on another or each other.

When Ian experiences diminishing marginal utility when buying shirts,
a. the price of each additional shirt he purchases falls when he gets volume discounts.
b. the price of each additional shirt he purchases falls when he gets volume discounts.
c. the value of the shirt he purchased start to fall as they wear out over time.
d. the value of the shirt he purchased start to fall as they wear out over time.
e. the personal value of each additional shirt he purchases starts to fall.

Answers

Answer:

e. the personal value of each additional shirt he purchases starts to fall.

Explanation:

Diminishing marginal utility means that as the number of goods that you consume increases, the utility received from consuming every additional unit decreases. For example, if you are very thirsty and drink a glass of Coke, the first glass will yield a very high utility. But as you consume more and more Coke, the following glasses will yield lower utility.

Crystal lives in the fictional country of Cuse, which raises government revenue by taxing everyone the same amount. The government of Cuse has just implemented a tax cut that reduces annual taxes by $2,500 per person. However, government spending has not changed, nor is it likely change in the future. The tax cut has raised Crystal's income by $2,500. If Crystal acts according to the prediction of new classical economics (and doesn't plan to leave Cuse), her consumption is likely to increase by_______ .
Suppose that instead of cutting taxes while keeping its spending the same, the government did the oppo it increased its spending by $2,500 per person while keeping taxes the same. If everyone in Cuse acted like Crystal, the likely increase in aggregate demand would be_______ per person.

Answers

Answer: $0; $0

Explanation:

New classical economists believe that any fiscal policy that the government embarks on is ineffective on the goods demanded by people.

If the government reduces taxes, Crystal (according to the New classical) will believe that the government will raise taxes in future to make up for the shortfall so she will send the $2,500 to savings so she can be able to pay off the future taxes.

If the government increases spending, Crystal will believe that this will be financed by future tax increases so she will still save the money to pay off future taxes.

Hoag Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below: Original Budget Actual Costs Fixed overhead costs: Supervision $ 9,880 $ 9,970 Utilities 4,160 4,440 Factory depreciation 21,320 21,190 Total fixed manufacturing overhead cost $ 35,360 $ 35,600 The company based its original budget on 2,600 machine-hours. The company actually worked 2,280 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,080 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month

Answers

Answer: $7,072 Unfavorable

Explanation:

Find fixed manufacturing overhead rate:

= Total budgeted fixed manufacturing overhead cost / Budgeted machine hours

= 35,360 / 2,600

= $13.60

Variance Favorable (Unfavorable) = (Standard hours allowed  - Budgeted machine hours) * fixed manufacturing overhead rate

= (2,080 - 2,600) * 13.60

= -$7,072

A newly issued bond pays its coupons once annually. Its coupon rate is 8%, its maturity is 20 years, and its yield to maturity is 10%. a. Find the holding-period return for a 1-year investment period if the bond is selling at a yield to maturity of 9% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If you sell the bond after one year, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%

Answers

Answer:

a) total HPR = 19.38%

b) tax liability = $56.23

Explanation:

price paid for the bond:

PV of face value = $1,000 / (1 + 10%)²⁰ = $148.64

PV of coupon payments = $80 x 8.5136 (PVIFA, 10%, 20 periods) = $681.09

market price = $829.73

coupon received during the year = $80

market price when bond is sold:

PV of face value = $1,000 / (1 + 9%)¹⁹ = $194.49

PV of coupon payments = $80 x 8.9501  (PVIFA, 9%, 19 periods) = $716.01

market price = $910.50

total HPR = ($910.50 + $80 - $829.73) / $829.73 = 19.38%

tax liability = ($80 x 40%) + ($80.77 x 30%) = $56.23

On January 2, year 1, Lava, Inc. purchased a patent for a new consumer product for $90,000. At the time of purchase, the patent was valid for fifteen years; however, the patent's useful life was estimated to be only ten years due to the competitive nature of the product. On December 31, year 4, the product was permanently withdrawn from sale under governmental order because of a potential health hazard in the product. What amount should Lava charge against income during year 4, assuming amortization is recorded at the end of each year

Answers

Answer:

The amount Lava should charge against income during year 4 is $63,000.

Explanation:

Since amortization is assumed to be recorded at the end of each year, this can be calculated as follows:

Annual amortization expense = Cost of the patent  / Patent's estimated useful life = $90,000 / 10 = $9,000

Amortization expense recorded prior to year 4 = Annual amortization expense * 3 years =  $9,000 * 3 = $27,000

Unamortized cost of patent charge against income during year 4 = Cost of the patent - Amortization expense recorded prior to year 4 = $90,000 - $27,000 = $63,000

Therefore, the amount Lava should charge against income during year 4 is $63,000.

Karim Corp. requires a minimum $8,100 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,500 and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.
July August September
Cash receipts $ 24,100 $ 32,100 $ 40,100
Cash payments 28,150 30,100 32,100
Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)
KARIM CORP.
Cash Budget
For July, August, and September
July August September
Beginning cash balance $8,500
Cash receipts 24,100
Total cash available 32,600
Cash payments
Interest revenue
Preliminary cash balance
Additional loan (loan repayment)
Ending cash balance
Loan balance
Loan balance - Beginning of month $0
Additional loan (loan repayment)
Loan balance - End of month

Answers

Answer:

a. Ending Cash Balance are as follow:

July = $8,100

August = $8,100

September = $14,343

b. Loan Balance End of Month are as follows:

July = $3,650

August = $1,723

September = $0  

Explanation:

Note: See the attached excel file for the cash budget.

In the attached excel file, the following calculations are made:

July Additional loan = Minimum required cash balance - July Preliminary cash balance = $8,100 - $4,450 = $3,650

August Loan repayment = August Preliminary cash balance - Minimum required cash balance = $10,027 - $8,100 = $1,927

September Loan repayment = Loan Balance End of Month at the beginning of September = $1,723

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