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3 years ago

Compounding refers to the growth process that turns $1 today into a greater value several periods in the future.

1 answer:

5 0

The above statement is TRUE. Compounding is the process by which the worth of an investment increases because the earnings on an investment, which is made up of the capital gains and interest earn interests as time passes.

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Stewart Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plant-wide factory overhead rate

Sophie [7]

Answer:

Allocated MOH= $320

Explanation:

Giving the following information:

Overhead Direct Labor Product

Hours (dlh) A B

Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh

Finishing Dept. 72,000 10,000 4 16

Totals $320,000 20,000 dlh 20 dlh 20 dlh

<u>First, we need to calculate the plantwide overhead rate:</u>

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

Predetermined manufacturing overhead rate= 320,000 / 20,000

Predetermined manufacturing overhead rate= $16 per direct labor hour

<u>Now, we can allocate overhead:</u>

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

Allocated MOH= 16*20

Allocated MOH= $320

5 0

3 years ago

If a Phillips curve shows that unemployment is high and inflation is low in the economy, then that economy:

Rasek [7]

Answer:

is producing at a point where output is less than potential GDP.

Explanation:

When the unemployment is high it is obvious that the economy is under its potential level but there is inflation case so we need to know the meaning of Philips Curve. The aggregate demand and aggregate supply model provides a simple summary of the possible outcomes proposed by the Phillips curve. The Phillips curve shows the combination of inflation and unemployment arising when the economy of the aggregate demand curve in the short run shifts along the short-term aggregate supply curve. Increased demand for goods and services will lead to higher prices in the short term and increased output of goods and services. Increasing output means increasing employment and lowering unemployment. In addition, the higher the rate this year, the higher the rate of inflation, no matter what the price level is in the past. Thus, the change in aggregate demand leads to short-term changes in inflation and unemployment rates, which is consistent with the dependence described in the Phillips curve. Monetary and fiscal policy tools are used to influence the aggregate demand curve, that is, to move the economy along the Phillips curve. Increasing money supply, government spending, or tax cuts move the aggregate demand curve to the right and drives the economy to a point where the Phillips curve corresponds to lower unemployment and higher inflation. Reducing money supply, government spending, or raising taxes will push the aggregate demand curve to the left, while the economy shifts to the point where Phillips curves with lower inflation and higher unemployment. In this sense, the Phillips curve offers policymakers a set of combinations of inflation and unemployment.

4 0

3 years ago

Online Analytical Processing (OLAP) is included in many Business Intelligence (BI) software applications. We use this OLAP for a

Mumz [18]

Yes I think is b hope it’s works

6 0

3 years ago

8) walter co. and sandburg industries report the following information at december 31: walter sandburg accounts receivable $41,0

True [87]

Walter Co. is a manufacturer because it uses raw materials, and has a stock of merchandise inventory, work-in-progress inventory, and finished goods inventory. The current assets of Walter Co. will be:

Current Assets:

Cash 6,000

Inventories

Raw materials inventory 21,000

Work in progress inventory 40,000

Finished goods inventory 25,000

Merchandise inventory 48,000

Total inventory 1,34,000

Other assets

Accounts receivable 41,000

Prepaid expenses 1,000

Current assets 2,22,000

A manufacturing company is a company that takes in raw materials processes the raw materials and then sells the finished goods manufactured in the market. So the current assets section of the balance sheet of Walter Co. is given which will be written on the right side of the balance sheet.

Learn more about manufacturing companies here:

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3 0

2 years ago

To assign overhead costs to each product, the company:_____.

mina [271]

Answer:

a. multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.

Explanation:

Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

Generally, an activity-based costing uses multiple cost pools such as manufacturing cost or customer services and multiple cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.

Cost pool is simply the amount of money spent by a firm on a particular activity.

Hence, to assign overhead costs to each product, the company multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.

In activity-based costing, the activity rate for an activity cost pool is calculated by using the following formula;

Activity rate = total overhead cost/activity for the activity cost pool.

4 0

3 years ago