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2 years ago

Budgeted production (in units) 1,200

Business

1 answer:

Nadusha1986 [10]2 years ago

5 0

Answer:

C.$5,250 F

Explanation:

Volume variance is the variance between the actual quantity of a product sold or consumed during a period of time. Value of variance can be calculated by multiplying the volume variance with standard rate.

Standard Rate per unit = Budgeted Manufacturing Overhead / Budgeted production = $21,000 / 1200 = $175

Volume Variance = ( Actual Quantity - Budgeted Quantity ) x Standard rate = ( 1500 - 1200 ) x $17.5 = $5,250

As the Actual Production of unit is higher than the budgeted, so the variance is favorable.

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Use the chart to answer the questions. Year Potential GDP Real GDP 2017 $18.17 trillion $18.05 trillion 2018 $18.51 trillion $18

sineoko [7]

Answer:

a. Output gap for 2017 = –0.66%

b. Output gap for 2018 = 0.27%

c. From 2017 to 2018, the output gap became more positive.

Explanation:

The following are given in the question:

Year Potential GDP Real GDP

2017 $18.17 trillion $18.05 trillion

2018 $18.51 trillion $18.56 trillion

To calculate output gap in percentage form, the following formula is used:

Output gap = ((Real GDP - Potential GDP) / Potential GDP) * 100 ......... (1)

Therefore, we have:

a. Calculate the output gap for 2017. %

Using equation (1), we have:

Output gap for 2017 = ((18.05 - 18.17) / 18.17) * 100 = –0.66%

b. Calculate the output gap for 2018. %

Using equation (1), we have:

Output gap for 2018 = ((18.56 - 18.51) / 18.51) * 100 = 0.27%

c. From 2017 to 2018, the output gap became more .

Since the output gap in 2017 is negative while the output gap in 2018 is positive; this implies that from 2017 to 2018, the output gap became more positive.

8 0

3 years ago

Jurgenson Company issued bonds with a $100,000 face value on January 1, 2019. The five-year term bonds were issued at 98 and had

vekshin1

Answer:

Option A. $7000

Explanation:

The reason is that in the statement of cash flow, the interest expense for the year paid is an cash ouflow and must be deducted from the operating activities as it the companies borrow to finance its operations to perform better. Hence it is related to operating activities, so it must be deducted from the operating activities.

The interest paid at the end of the year is $7000 ($100,000 * 7%).

4 0

2 years ago

Which of the following items is recognized for governmental activities in the government-wide statement of activities and not th

bija089 [108]

Answer:

b. Property tax revenue for an amount deferred because it was not available

Explanation:

Government statement of activities shows the various expenses and revenue that the government has within a given period. It is usually on accrual basis.

While statement of revenues, expenditure and change in fund shows revenue and expense items that have been incurred by the government. This is not based on accrual but actual revenue earned and expense incurred.

So property tax revenue for an amount deferred because it was not available. Will appear on government statement of activities but will not appear in statement of revenue, expense, and change of funds because no present revenue or expense is involved.

5 0

2 years ago

The higher the number of business units in a company's portfolio, the more difficult it is for corporate managers to remain info

Ira Lisetskai [31]

Answer:

True

Explanation:

When a company increases the amount of business units it is harder to be informed about each business unit. When the manager try to understand and review all the information about the business units the time is not enough, in that case the sustainability of a multiple units business model is a challenge. When this happens, the manager can empower a business unit manager, so the corporate manager just needs to know the basic information and be informed about the decisions and results obtained evaluating the results of the business unit.

7 0

3 years ago

The W.C. Pruett Corp. has $800,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 8%. In addition,

statuscvo [17]

Answer:

1. TIE ratio = EBIT / Interest expense

EBIT = [ (Annual sales x profit margin) / (1 - tax rate) ] + Amount of debt x interest rate

= [ ($2,880,000 x 3%) / (1 - 0.30) ] + $800,000 x 8%

= 187428.57143

= $187,428.57

TIE ratio = $187,428.57 / ($800,000 x 8%)

TIE ratio = $187,428.57 / $64,000

TIE ratio = 2.92857

TIE ratio = 2.93

2. ROIC = [ EBIT x (1 - tax rate) ] / (Amount of debt + common stock)

= [$187428.57 x (1 - 0.30) ] / ($800,000 + $600,000)

= 0.093714285

= 9.37%

3 0

3 years ago