Suppose one of the cases is selected at random and the outcome of the appeal and type of trial are observed.

epartments have estimated annual factory overhead costs of $256,000 and $480,000, respectively. The Fabrication Dept. expects 25

Phoenix [80]

Answer:

Factory overhead cost charged to each unit:

Fabrication Assembly

Factory overhead rates $10.24 $0.81

Machine hours per unit 5

Direct labor cost per unit $118.40

Factory overhead cost per unit $51.20 $95.90

Explanation:

a) Data and Calculations:

Fabrication Assembly

Annual overhead costs $256,000 $480,000

Expected machine hours 25,000 0

Expected direct labor costs 0 $592,000

Overhead rates $10.24 $0.81

($256,000/25,000) ($480,000/$592,000)

Assuming number of units produced = 5,000

Each unit will consume 5 (25,000/5,000) $118.40 ($592,000/5,000)

machine hours direct labor cost

Overhead cost per unit = $51.20 $95.90

($10.24 * 5) ($118.40 * $0.81)

5 0

3 years ago

4. Sectoral shifts, frictional unemployment, and job searches Suppose the world price of cotton falls substantially. The demand

antoniya [11.8K]

Answer:

The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment.

This is because it is temporary and people in the affected sector could opt for jobs in other performing sectors of the economy.

Explanation:

Suppose the world price of cotton falls substantially, the following scenario will ensue.

The demand for labor among cotton-producing firms in Texas will reduce .

The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will also decline .

The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment.

Frictional unemployment is seasonal employment that could occur when there is no demand or work period is completed unlike structural unemployment that can last for long.

It is a temporary unemployment situation because workers in the cotton industry could opt for jobs in other performing sectors of the economy.

5 0

3 years ago

MOSS COMPANY Selected Balance Sheet Information December 31, 2018 and 2017 2018 2017 Current assets Cash $ 90,650 $ 32,800 Accou

Andru [333]

Answer:

$65,250

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $5,000

Adjustment made:

Add : Depreciation expense $48,000

Add: Decrease in accounts receivable $13,000 ($31,000 - $44,000)

Less: Increase in inventory -$10,700 ($66,000 - $55,300)

Add: Increase in accounts payable $10,700 ($42,400 - $31,700)

Less: Decrease in income tax payable-$750 ($2,650 - $3,400)

Total of Adjustments $60,250

Net Cash flow from Operating activities $65,250

8 0

3 years ago

Consider a portfolio of stocks X, Y, Z whose returns in various economic conditions are set forth below.

jeka57 [31]

Answer:

The expected return is 10.95%

Explanation:

CALCULATE THE EXPECTED RETURN OF X

State _____Probability __X_____Expected return

Boom ____ 0.25 ______22% ___5.50%

Normal ___ 0.60 ______15% ___ 9.00%

Recession _0.15 _______5% ___ 0.75%

Total ______________________15.25%

CALCULATE THE EXPECTED RETURN OF Y

State _____Probability __Y_____Expected return

Boom ____ 0.25 ______10% ___ 2.50%

Normal ___ 0.60 ______9% ____5.40%

Recession _0.15 _______8% ___ 1.20%

Total ______________________9.10%

Now calculate the weighted average return based on investment in each portfolio

Expected return = ( Expected return of Assets X x Weight of Asset X ) + ( Expected return of Assets Y x Weight of Asset Y )

Expected return = ( 15.25% x $3000/$10000 ) + ( 9.10% x $7000/$10000 )

Expected return = 4.575% + 6.370%

Expected return = 10.945%

Expected return = 10.95%

5 0

3 years ago

For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $25,700 Food a

Aleks [24]

Answer:

a. $9,338

b. 0.363

Explanation:

a. Contribution Margin = Sales - Variable Cost

Where Sales = $25,700

Variable Cost = Food & Packaging + Payroll + 40% x General, Selling and Administrative expenses

V.C. = 8,982 + 6,500 + 40% * 3,700

V.C = 8,982 + 6,500 + 1,480

= $16,362

Therefore, Contribution Margin = Sales - Variable Cost

= $25,700 - $16,362

=$9,338

b. McDonald's contribution margin ratio = Contribution Margin / Sales

= $9,338 / $25,700

= 0.363

6 0

4 years ago