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ohaa [14]
4 years ago
12

Degregorio Corporation makes a product that uses a material with the following direct material standards: Standard quantity 2.5

kilos per unit Standard price $5 per kilo The company produced 6,600 units in November using 16,850 kilos of the material. During the month, the company purchased 18,900 kilos of the direct material at a total cost of $90,720. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for November is:
Business
1 answer:
nydimaria [60]4 years ago
7 0

Answer:

Materials quantity variance = $1,750(U)

Explanation:

Standard quantity(SQ) = $2.5 * 6600 = 16500 Kg

Standard Price( SP) = $5  

Actual quantity(AQ) = 16,850 Kg  

Actual Price( AP) = $90,720 / 18,900 kg = $4.8

Materials quantity variance = SP * (SQ - AQ)  

Materials quantity variance = 5 * ( 16500 - 16,850 )

Materials quantity variance = 5 * (350)

Materials quantity variance = $1,750(U)

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Answer: $742910

Explanation:

The weighted average combines interest rates into a single interest rate which yields a combined cost which is about thesame as cost of the original separate loans.

The weighted-average interest rate for interest capitalization purposes for the company above is calculated in the attachment below.

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3 years ago
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Indira’s financial services company knowingly financed high-risk securities during a time when all their competitors were doing
fomenos

Answer:

ongoing legal defenses

Explanation:

Based on the scenario being described within the question it can be said that the most quantifiable cost to the company would be ongoing legal defenses. That is because they are financing high-risk securities and all the other competitors were caught, therefore there is a high chance that they will as well and are going to need legal defense.

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3 years ago
Hi-Tech, Inc., reports net income of $51.0 million. Included in that number are depreciation expense of $4.1 million and a loss
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Answer:

The net cash flows from operating activities is $54.9 million computed as below:

Explanation:

<u>Hi-Tech Corporation</u>

<u>Cash flows from Operating Activities</u>

Net Income                                        51.0

Depreciation                                         4.1

Loss on disposal of equipment          1.9

Increase in receivable                          (1.1)

Increase in payable                          2.1

Increase in inventory                         <u> (3.1)</u>

Net CF from Operating Activities <u> 54.9</u>

The major is here is that in determining the cash flows from operating activities, the net income is adjusted for the impacts of non cash items  by:

  1. adding back depreciation and/or amortization, loss on sale of fixed assets, increase in provision and impairment of assets (if any),
  2. deducting gains on sale of fixed assets, decrease in provisions and reversal of impairment of assets.

Thereafter, movement in working capital is considered as follows:

  1. Deduct Increase/add decrease in current assets (receivables and payable),
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The essence of making these adjustments are that they have have inverse relationship between net income computation and cash flows. For example, while depreciation is deducted to arrive at net income, depreciation does not involvement in cash, hence depreciation charge should be added back to arrive at cash flow from operating activities.

Regarding movement in working capital, an increase in receivable means that the reporting entity have sold its goods or services without collection cash, thus tieing down its cash resources. The same can be said of inventory where the increase in inventory means that the entity have let out cash in stocking up inventory thus reducing its cash inflow or increasing its cash outflows. But the reverse is the case when talking about payable, as an increase in payables means that the reporting entity have held back cash it will have used to settle its obligations hence increasing reducing cash outflows or increasing cash inflows.

4 0
4 years ago
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The labor force or work force force, refers to the people employed or looking for work in the country or segment of the economy.

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