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My name is Ann [436]
3 years ago
15

Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,800,000;

sales of $5,375,000; cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Assume a target income of 15% of average invested assets. Compute residual income for the division:a. $100,300.
b. $196,750.
c. $150,500.
d. $133,000.
e. $150,450
Business
1 answer:
kondaur [170]3 years ago
6 0

Answer:

Option D

Residual income= $133,000

Explanation:

<em>Residual Income is measure of how much a division or a part of a business is able to generate over and above the company-wide opportunity cost of capital.  </em>

<em>A division with a controllable profit over and margin over and above the cost of fund is evaluated to be profitable .  </em>

Residual income = Controllable margin - (cost of capital(%)× operating assets)  

cost of capital = target ROI = 15%

controllable profit= 5,375,000- 3,225,000- 1,147,000

                             = 1003000

Residual income =  1,003,000 -(15%×5,375,000)

                            = $133,000

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Markley Manufacturing calculated its predetermined overhead rate to be 120% of direct labor cost. During June, the company incur
Nana76 [90]

Answer:

Applied Manufacturing Overheads are $102,000

Overapplied Manufacturing overheads are $18,000

Explanation:

Under or over applied manufacturing overhead can be determined by comparing the actual and applied manufacturing overheads.

Applied overheads can be calculated by multiplying pre-determined overhead rate and actual level of quantity. Predetermined overhead rate is calculated using estimated overhead and estimated activity on which overheads are applied.

In this question the predetermined overhead rate is 120% of direct labor cost.

Applied overhead = Direct labor cost x 120% = $85,000 x 120% = $102,000

Actual overheads incurred = $84,000

Overapplied Manufacturing overheads = $102,000 - $84,000 = $18,000

3 0
3 years ago
On October 15, 2019, the Department of Labor announced that the Producer Price Index (PPI) experienced an unexpected 1.1 percent
Kruka [31]

Answer:

A. We should expect higher interest rates and lower stock prices.

Explanation:

Producer price index refers to the price that producers recieve for their products. When there is an increase in PPI it means producers are receiving more revenue.

Increased revenue will result in more money in circulation. To regulate the excess money the monetary authorities will increase interest rate to reduce borrowing and by extension money in the economy.

Because there is now a need to get more funds by the companies, they will lower share prices to make them attractive to prospective investors.

5 0
3 years ago
The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4
Bezzdna [24]

Answer:

a. Manufacturing overhead rate - Department 100 = $57,500 / 4,000 hours = $14.375 per machine hours

Manufacturing overhead rate - Department 200 = $62,500/8,000 hours = $7.8125 per machine hours

b.  Journal Entries

S/N    Account Titles                         Debit           Credit

1       Inventory - Raw material          $110,000

             Account Payable                                     $110,000

2    Work in process                            $32,500

     Manufacturing overhead              $7,500

             Inventory - Raw materials                         $40,000

3    Work in process                            $52,500

     Manufacturing overhead              $11,000

              Materials control                                       $63,500

4      Manufacturing overhead            $17,250

               Leasehold payable                                    $16,250

               Utilities payable                                          $1,000

5.     WIP Control (14,375*800)            $11,500

                Manufacturing overhead allocation         $11,500

c. Particulars                               Dep 100     Dep 200   Total

Direct materials                           $32,500     $13,500   $46,000

Direct labour                                $52,500     $13,500   $106,000

Manufacturing overhead             $35,750     $18,750   $54,500    

(11,000+7,500+16,250+1,000

+9,000+4,750+3,750+1,250)

Total Cost of Job A                     $120,750   $85,750    $206,500

7 0
3 years ago
SmartTalk, Inc, makes and markets cell phones and related accessories. When problems develop with SmartTalk products or sales, t
Iteru [2.4K]

Answer:

D) an ineffective marketing plan.

Explanation:

Product liability is defined as the liability that manufacturer bears when he puts defective product in the hands of the consumer.

Manufacturers are liable for damages that occur from the use of their products. They are also responsible for providing adequate instructions on use of the product and warning of adverse effects a user can experience.

SmartTalk, Inc produces cell phones and related accessories. They have product liability when there is a manufacturing defect, design defect, and inadequate warning on use of the product.

However the company does not have product liability for ineffective marketing as this is related to how well the company sells the product and not if the product is defective.

5 0
3 years ago
____ helps individuals, groups, and organizations store useful information, such as a list of tasks to complete or a list of nam
Gnoma [55]

Answer:

The correct answer here is Personal information managers.

Explanation:

PIM or personal information manager is a software application which is used by individual, groups and organizations to manage contacts, calendar, reminders, alerts, notes , making appointments, project management etc through its PIM tools and these tools can vary according to the need. So it can be said that this personal information manager acts as a personal organizer.

7 0
3 years ago
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