Workers with knowledge-based education and managerial skills are

Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should tak

Katen [24]

Answer:

Total Overhead Variance $156750 Favorable

Explanation:

Given Data

Byrd Company

Normal production capacity 100,000 units per year

Direct Labor Hours at normal capacity = 100,000

Total budgeted overhead at normal capacity is $1,100,000

Variable costs $400,000

Fixed costs$700,000

Actual Production 71,800 putters

Actual Direct Labor Hours 99,000

Actual Variable Overheads $ 197450

Actual Fixed Overhead Costs $ 734,800

Formulae And Calculations

Predetermined Variable Overhead Rate = Variable Costs / Direct Labor Hours

Predetermined Variable Overhead Rate = $400,000 / $100,000 = $ 4 per hour

Predetermined Fixed Overhead Rate = Fixed Costs / Direct Labor Hours

=$700,000 / $100,000 = $ 7 per hour

Applied Overhead = Applied Variable Costs + Applied Fixed Costs

= $ 4*99,000+ $ 7 *99,000= $ 396,000 + $ 693,000=

Applied Overhead =$ 1089,000

Total Overhead Variance = Actual Overhead - Overhead Applied

Total Overhead Variance =$ 197450+ $ 734,800-$ 1089,000

=932250-$ 1089,000= $156750 Favorable

It is favorable because actual is less than applied.

7 0

3 years ago

The following financial information was summarized from the accounting records of Buddy Corporation for the current year ended D

Nat2105 [25]

Answer:

(a) $56,730

(b) $36,330

(c) $ 51,800

(d) $24,800

(e) $36,230

Explanation:

(a) Gross profit for the Dalmatian Division:

= Net sales - Total Cost of goods sold

= $87,000 - $30,270

= $56,730

(b) Income from operations from the Dalmatian Division:

= Gross Profit - Direct operating expenses

= $56,730 - $20,400

= $36,330

(c) Gross profit for the Beagle Division:

= Net sales - Total Cost of goods sold

= $99,000 - $47,200

= $ 51,800

(d) Income from operations from the Beagle Division:

= Gross Profit - Direct operating expenses

= $51,800 - $27,000

= $24,800

(e) Total income from operations;

= $36,330 + $24,800

= $61,130

Earnings before interest and taxes:

= Total income from operations - General overhead

= $61,130 - $18,160

= $42,970

Earnings before taxes:

= Earnings before interest and taxes - Interest expense

= $42,970 - $2,040

= $40,930

Net income = Earnings before taxes - Income taxes

= $40,930 - $4,700

= $36,230

6 0

3 years ago

Suppose the risk-free return is 6.6 % and the market portfolio has an expected return of 8.5 % and a standard deviation of 16 %

elena-14-01-66 [18.8K]

johnson & johnson corporation stock has a beta of 0.30. what is its expected return

7 0

3 years ago

Michael had a severe hearing impairment and worked as the supervisor of a fast food restaurant. Michael’s manager and the human

KiRa [710]

Answer: The correct answer is "C) giving up rather than standing up to the boss as required by law.".

Explanation: This is a situation of: giving up rather than standing up to the boss as required by law.

Michael should have sued his boss before the law so that he could instead be compensated for the bad treatment and discrimination and also collect unemployment compensation in the event that the employment relationship is terminated.

6 0

3 years ago

(Bond valuation relationships) Stanley, Inc. issues 15-year $1 comma 000 bonds that pay $85 annually. The market price for

BaLLatris [955]

Answer:

a) The value of the bond (to you) is 959.6965579

b)

if the value of the market's required yield to maturity on a comparable-risk bond increases to 11 percent ; we have the value to be 820.2282606
if the market's required yield to maturity on a comparable-risk bond decreases to 7 percent; we have the value to be 1136. 61871

c) Yield to maturity is the expected return on holding the bond till maturity

Thus, Bonds should be purchased when the yield to maturity is the highest ; As such!, if the yield to maturity on a comparable - risk bond decrease to 7%.

You should purchase the Stanley bonds at the current market price of $960.

Explanation:

Given that:

Par Value (F) = $1000

Interest Rate ( annual coupon rate) = $85

Market demand return ( yield to maturity) = 9% = 0.09

Time of maturity = 15 years

a. What is the value of the bond to you?

The value of the bond can be calculated as follows:

= $\frac{annual coupon}{yield}*(1-\frac{1}{(1+yield)^t} )(\frac{Par Value}{(1+yield)^t} )$

= $\frac{85}{0.09}*(1-\frac{1}{(1+0.09)^{15}} )(\frac{1000}{(1+0.09)^{15}} )$

= 959.6965579

Thus, the value of the bond to you = 959.6965579

b. What happens to the value if the market's required yield to maturity on a comparable-risk bond increases to 11 percent .

If increase to 11 % occurs:

we have :

= $\frac{85}{0.11}*(1-\frac{1}{(1+0.11)^{15}} )(\frac{1000}{(1+0.11)^{15}} )$

= $\frac{85}{0.11}*(1-\frac{1}{(1.11)^{15}} )(\frac{1000}{(1.11)^{15}} )$

= 820. 2282606

Hence, if the value of the market's required yield to maturity on a comparable-risk bond increases to 11 percent ; we have the value to be 820. 2282606

What happens to the value if the market's required yield to maturity on a comparable-risk bond decreases to 7 percent?

If decrease to 7% occurs:

= $\frac{85}{0.07}*(1-\frac{1}{(1+0.07)^{15}} )(\frac{1000}{(1+0.07)^{15}} )$

= $\frac{85}{0.07}*(1-\frac{1}{(1.07)^{15}} )(\frac{1000}{(1.07)^{15}} )$

= 1136. 61871

c) Under which of the circumstances in part b should you purchase the bond?

Yield to maturity is the expected return on holding the bond till maturity

Thus, Bonds should be purchased when the yield to maturity is the highest ; As such!, if the yield to maturity on a comparable - risk bond decrease to 7%.

You should purchase the Stanley bonds at the current market price of $960.

8 0

4 years ago