Which method of allocated profits and losses is based on a percentage of initial investment by the partners?

Acme Company’s production budget for August is 17,600 units and includes the following component unit costs: direct materials, $

Ivan

Answer:

Instructions are below.

Explanation:

Giving the following information:

Actual production in August was 18,810 units.

During August, 319,770 pounds of raw material were used that were purchased at $0.50 per pound.

The standard direct material cost per unit consists of 11 pounds of raw material at $0.7 per pound.

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (0.7 - 0.5)*319,770

Direct material price variance= $63,954 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 18,810*11= 206,910

Direct material quantity variance= (206,910 - 319,770)*0.7

Direct material quantity variance= $79,002 unfavorable

7 0

4 years ago

Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget.

Georgia [21]

Answer:

$47,000

Explanation:

The cash budget is a forecast of the company's expected movement in cash considering the expected outflows and inflows. This movements result in a change between the opening and ending cash balance. This may be expressed mathematically as

Opening balance + Cash receipts - Cash disbursed = ending balance

Cash receipts for the period

= $264,000

Cash disbursed

= $138,000 + $80,000 + $10,000 + $15,000

= $243,000

ending balance = $26,000 + $264,000 - $243,000

= $47,000

5 0

3 years ago

Donna wants to buy a new coat. During the ________ stage of the buyer decision process she will ask her friends to recommend sto

koban [17]

During the information search stage of the buyer decision process she will ask her friends to recommend stores that sell good quality winter wear clothing.

Explanation:

As a buyer, we always look into lot of recommendations and options to buy a product.

Information search is the major phenomena while buying a product. Information search helps in making decision for a consumer or purchaser.

Information search can be classified into two types:

i) Internal research

ii) External research

Newspapers, magazines and even word of mouth help in providing information during decision making process. This information search before buying a product helps the consumer to make good decision and gain profit over their purchase.

4 0

4 years ago

If Professor Siegel is correct that stocks are less risky than bonds, then the risk premium on stock may be zero. Assuming that

Ulleksa [173]

If Professor Siegel is correct that stocks are less risky than bonds, then the risk premium on stock may be zero. Assuming that the risk-free interest rate is 2.5 percent, the growth rate of dividends is 1 percent and the current level of dividends is $70, use the dividend-discount model to compute the level of the S&P 500 that is warranted by the fundamentals.

Instruction: Round your response to 2 decimal places.

The level of the S&P 500 is

Answer:

Dividend discount model:

Price= D(1+g)/r-g

g=growth rate 1%

r= as given in question risk free rate 2.5%

D₀= $70

D₁=$70(1+0.01) with growth rate

Solution:

70(1+0.01)/(0.025-0.01)

=$4713.33

5 0

4 years ago

Amazon.com and barnes and noble are in the same industry, but their primary difference can be defined as two companies that have

Alenkinab [10]

their primary difference can be defined as two companies that have different : business models Amazon provide a medium so other sellers could sell their books through their sites. This way, they won't need any space for their house cause they sell other's product. Meanwhile, barnes and nobles is a book retailer, which means they produce and put their own books to the stores.

6 0

3 years ago