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Feline Watch Company makes wrist watches out of silver metal sheets. Five hours of labor are needed to make each watch. Factory

natima [27]

Answer:

Feline Watch Company should budget $15,000 overhead costs.

Explanation:

5 labor hours per unit of watch at $7 per labor hour

Variable Overheads $4 per labor hour

Total Variable overheads for 500 watches

$4 per labor hour * 5 labor hours per watch * 500 watches = $10,000

Fixed Overhead = $5,000

Total Overhead = $15,000

4 0

3 years ago

on december 1, bright company receives a 6% interest-bearing note from galvalume company to settle a $20,000 account receivable.

andreyandreev [35.5K]

At December 31, bright should record interest revenue of $100. Money gained by lending money or money acquired from depositing or investing can both be referred to as interest revenue.

Is interest revenue a liability or an asset?

If a company anticipates receiving the interest payment within the year, it typically records the interest receivable as a current asset on its balance sheet. Companies that collect interest from loans view this revenue as a significant source of income that belongs at the top of the income statement. It is the price of taking out a loan from a bank, financial institution, bond buyer, or another lender. In order to assist a business finance its operations, such as the acquisition of rival businesses or machinery, plant, and property, interest expense is incurred.

To learn more about interest revenue, refer to:

brainly.com/question/27992328

3 0

1 year ago

In the text, Curves is an example of which path? a. Looking across alternative industries b. Looking across strategic groups wit

Elena L [17]

Answer:

The correct option is D) Looking across complementary offerings

Explanation:

There are about 6 well-known paths to achieving a Blue Ocean Strategy.

Generally, the Blue Ocean Strategy (BOS) seeks to avoid locking horns with the competition by identifying niche areas that are critical to the attainment of a competition-free space. According to the BOS took kit, there are 6 paths to achieving a blue ocean strategy.

One of them is called looking across complementary offerings.

Another term for the Curve is Value Ramp. Value Ramp simply refers to a methodology for evaluating one's service/product offerings. It consists of a graph that plots a curve sloping upwards from left to right, showing the relationship between price and the value or perception of value being delivered by the business.

The principle offered here stated that the higher the perception of one's brand, the more one should be able to charge for their services.

Value is thought to increase as the business delivers more and more personalized services in a relationship-oriented fashion rather than generic products and services which are readily available off the shelf in most cases.

Cheers

7 0

3 years ago

The stock of Big Joe's has a beta of 1.64 and an expected return of 13.30 percent. The risk-free rate of return is 5.8 percent.

larisa86 [58]

Answer:

expected return on market = 0.10373 or 10.373%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

rRF is the risk free rate

rpM is the market risk premium

We will first calculate the market risk premium using the required rate of return for stock, beta and risk free rate and plugging these values in the formula above.

0.1330 = 0.058 + 1.64 * rpM

0.1330 - 0.058 = 1.64 *rpM

0.075 = 1.64 * rpM

rpM = 0.075 / 1.64

rpM = 0.04573 or 4.573%

As we know that the beta for market is always equal to 1, we can calculate the rate of return for market as,

expected return on market = 0.058 + 1 * 0.04573

expected return on market = 0.10373 or 10.373%

7 0

3 years ago

Waterway Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $162,900.

satela [25.4K]

Answer:

(a) Straight Line Depreciation for 2020 $ 28,800

(b) Activity Method of Depreciation for 2020 $ 5,616

(c) Sum of the years Depreciation for 2021 $ 38,400

(d) Double declining balance depreciation for 2021 $ 39,096

Explanation:

Computation for requirement (a) - Straight Line Depreciation for 2020

Straight line method considers depreciation on adepreciable base after considering a salvage value and spreads it evenly over the life of the asset.

Cost of machine $ 162,900

Estimated Salvage Value $ 18.900

Depreciable Basis $ 144,000

Estimated Life 5 years

Straight Line Depreciation for 2020 = $ 144,000/5 = $ 28,800

Computation for requirement (b) - Activity Method Depreciation for 2020

Activity method depreciation considers depreciation over the estimated usage of the asset and multiplies by the usage in a given period. The depreciable basis is after considering the salvage value.

Depreciable basis - same as SL depreciation $ 144,000

Usage Life of the machine 20,000 hours

Machine usage for 2020 780 hours

Depreciation on a per hour basis $ 144,000/ 20,000 = $ 7.2 per hour

Depreciation for 2020 on a usage of 780 hours = 780 * $7.20 = $ 5,616

Computation for requirement (c) - Sum of the years digits for 2021

In a sum of the years depreciation method, the sum of the life of the assets are added and considered as a depreciable life. The salvage value is considered in determining the depreciable basis.

Depreciable basis - same as SL depreciation $ 144,000

Estimated life of the asset 5 years

Sum of the years, (5+4+3+2+1) 15

so the first year depreciation shall be 5/15, the next year 4/15 and so on,

We need to compute the depreciation for 2021 which is the second year, so the formula shall be:

4/15 (remaining useful life) * $ 144,000(depreciable basis) = $ 38,400

Computation for requirement (d) - Double declining balance for 2021

In a double declining balance method the depreciation rate (%) is double that of a straight line method. The subsequent years depreciation is on a reduced balance. No salvage value is considered

The first year's depreciation is calculated

Cost of Machine* (2 * Straight Line depreciation %)

$ 162,900* (2 * 20 %) so the depreciation for 2020 would be

$ 162,900 * 40 % = $ 65,160.

For 2021, which is the requirement in our question, the cost would be the reduced value.

Original Cost of the machine $ 162,900

Double Declining balance Depreciation 2020 $ 65,160

Declining Cost basis for 2021 depreciation $ 97,740

Depreciation @ 40 % $ 39,096

6 0

3 years ago