Which of the following is something that companies are likely to engage in with famous, well-publicized sports teams?

EcoFabrics has budgeted overhead costs of $1,162,350. It has allocated overhead on a plantwide basis to its two products (wool a

alina1380 [7]

Answer:

EcoFabrics

1. Overhead Rates using activity-based costing:

Cutting = $1.80 per machine hour

Design = $390 per setup

2. Allocation of overhead:

Wool Cotton

Cutting $221,400 $221,400

Design 479,700 239,850

Total allocated $701,100 $461,250

3. Overhead rate using the traditional approach:

Predetermined overhead rate = $2.10

4. Allocation of overhead:

Wool Cotton

Total allocated $581,175 $581,175

Explanation:

a) Data and Calculations:

Budgeted overhead costs = $1,162,350

Estimated direct labor hours = 553,500

Activity Cost Cost Drivers Overhead Costs Wool Cotton Total

Pools

Cutting Machine hours $442,800 123,000 123,000 246,000

Design Number of setups 719,550 1,230 615 1,845

1. Overhead Rates using activity-based costing:

Cutting = $1.80 ($442,800/246,000) per machine hour

Design = $390 ($719,550/1,845) per setup

2. Allocation of overhead:

Wool Cotton

Cutting $221,400 ($1.80 * 123,000) $221,400 ($1.80 * 123,000)

Design 479,700 ($390 * 1,230) 239,850 ($390 * 615)

Total allocated $701,100 $461,250

3. Overhead rate using the traditional approach:

Predetermined overhead rate = $2.10 ($1,162,350/553,500)

4. Allocation of overhead:

Wool Cotton

Total allocated $581,175 ($1,162,350 * 50%) $581,175 ($1,162,350 * 50%)

4 0

2 years ago

On January 1, Garcia Supply leased a truck for a three-year period, at which time possession of the truck will revert back to th

Brut [27]

Answer:

PV=?

N=3

FV= 47,700

PMT= 17,000

I= 5%

Put values in financial calculator

Pv=$87,500

Now use this value to calculate residual value at the end of year 4

PV= 87,500

N=4

Fv=?

PMT= -17,000

I=5

$33,084= residual value in 4 years.

Explanation:

3 0

3 years ago

Knowing that a third party may use the information that Ray is providing, does Ray owe a duty of confidentiality to Onyx?

artcher [175]

Answer:

B. Yes, although it may be breached in most states if there is a court order to do so.

Explanation:

Duty of confidentiality is a provision that has been put in place in most states, to enable clients open up freely if they need help. This allows professionals to take whatever actions necessary to carry out full service delivery when helping the client. Some of these details include health status, a client-lawyer case story, a social media's access to users' personal details, etc. The law prohibits professionals from disclosing information made available to them by the client to a third party. This duty is held by many professional bodies like the medical body, legal body, among others. This duty can be broken by law in situations where the client sues the professional, or when there is a legal court order to do so.

3 0

2 years ago

During the first month of operations ended July 31, Western Creations Company produced 80,000 designer cowboy hats, of which 72,

bulgar [2K]

Answer:

Western Creations Company

1. Income Statements for July and August, under absorption costing:

July August

Sales Revenue $4,320,000.00 $4,320,000.00

Cost of goods sold 3,240,000.00 2,649,600.00

Gross profit $1,080,000.00 $1,670,400.00

Total selling & admin. exp. $169,000.00 $169,000.00

Net Income $911,000.00 $1,501,400.00

2. Income Statements for July and August, using variable costing:

July August

Sales Revenue $4,320,000.00 $4,320,000.00

Variable cost of goods sold 3,081,600.00 2,491,200.00

Contribution margin $1,238,400.00 $1,828,800.00

Fixed expenses:

Total fixed costs 345,000.00 345,000.00

Net income $893,400.00 $1,483,800.00

3a. The reason for the differences in the amount of the income from operations in in (1) and (2) for July is the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).

3b. The reason for the differences in the amount of the income from operations in (1) and (2) for August is also the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).

Explanation:

a) Data and Calculations:

Number of hats produced = 80,000

Number of hats sold = 72,000

Ending inventory = 8,000

1 Sales $4,320,000.00

2 Manufacturing costs: July August

3 Direct materials $1,600,000.00 $1,280,000.00

4 Direct labor 1,440,000.00 1,152,000.00

5 Variable manufacturing cost 240,000.00 192,000.00

6 Fixed manufacturing cost 320,000.00 320,000.00

Total manufacturing costs $3,600,000.00 $2,944,000.00

Under absorption costing:

Unit cost = $45 ($3,600,000/80,000) $36.80 ($2,944,000/80,000)

Cost of goods sold = $3,240,000 ($45*72,000) $2,649,600 (36.8*72,000)

Ending Inventory = 360,000 ($45*8,000) 294,400 ($36.8*8,000)

7 Selling and administrative expenses:

8 Variable $144,000.00 $144,000.00

9 Fixed 25,000.00 25,000.00

Total selling & admin. exp. $169,000.00 $169,000.00

Under variable costing:

2 Manufacturing costs:

3 Direct materials $1,600,000.00 $1,280,000.00

4 Direct labor 1,440,000.00 1,152,000.00

5 Variable manufacturing cost 240,000.00 192,000.00

8 Variable selling & admin cost 144,000.00 144,000.00

Total variable costs = $3,424,000.00 $2,768,000.00

Unit variable cost = $42.80 ($3,424,000/80,000) $34.60

Cost of goods sold = $3,081,600 ($42.80 * 72,000) $2,491,200

Ending Inventory = 342,400 ($42.80 * 8,000) 276,800

6 Fixed manufacturing cost $320,000.00 $320,000.00

9 Fixed selling & admin. cost 25,000.00 25,000.00

Total fixed costs = $345,000.00 $345,000.00

7 0

2 years ago

The independent cases are listed below includes all balance sheet accounts related to operating activities: Net income Depreciat

OLEGan [10]

Answer: Please see below

Explanation: The values from the question are scattered, but here is how they should appear

Case A Case B Case C

Net income $310,000 15,000 $420,000

Depreciation expense 40,000 150,000 80,000

Accounts receivable increase

(decrease 100,000 (200,000) (20,000)

Inventory increase (decrease) (50,000) 35,000 50,000

Accounts payable increase (50,000) 120,000 70,000

Accrued liabilities increase

(decrease) 60,000 (220,000) (40,000)

To calculate the operating activities section of cash flows for each of the given cases,

we use the Indirect method formula

Net cash flow from operating actvities = Net Income + Non-Cash Expenses – Increase in Working Capital

Net cash flow from operating actvities =Net Income +/- Changes in Assets & Liabilities + Non-Cash Expenses

Net cash flow from operating actvities = Net Income + Depreciation + Stock Based Compensation + Deferred Tax + Other Non Cash Items – Increase in Accounts Receivable – Increase in Inventory + Increase in Accounts Payable + Increase in Accrued Expenses + Increase in Deferred Revenue

Following the formulae above, we can determine what expense should be added or subtracted to give the operating activities of cash flow below as

Case A Case B Case C

Net Income $310,000 15,000 $420,000

Net Income Adjustments to Reconcile Net Income to net Cash provided by operating activities

Depreciation 40,000 150,000 80,000

Changes in Assets and Liabilities

Accounts Receivable - 100,000 200,000 20,000

Inventory 50,000 -35,000 - 50,000

Accounts Payable -50,000 120,000 70,000

Accrued Liabilities 60,000 - 220,000 -40,000

Net Cash Provided by Operating Activities

$310,000 $230,000 $500,000

6 0

2 years ago