Answer:
A) Unit Quantity Standard × Actual Output
Explanation:
The Unit Quantity Standard is the amount of materials that should have been used to manufacture one unit.
The actual output is how many units were actually produced.
The total standard material quantity allowed is the total amount of materials used to produce the output units. In order to calculate the total standard material quantity allowed, we have to multiply the unit quantity standard times the actual output in units.
For example, the unit quantity standard was 2 lbs. per unit and the actual output was 5,000 units, then the total standard material quantity allowed = lbs. per unit x 5,000 units = 10,000 lbs.
Answer:
The problem with the argument that infant industries need to be protected from foreign competitions are as follows:
1, Fall in standard of living
2. Barrier to free trade
3. Invitation to trade wars
4. Protection of inefficient industries
5. Distortion of free market actors
Explanation:
1. Fall in Standard of Living - Consumers are not forced to patronize producers of substandard products due to the barriers to suppliers of high quality imported goods.
2. Barrier to Free Trade- Trade protection is a barrier to free international trade, the gains of the principles of comparative cost advantage upon which international trade is established will be lost.
3. Invitation to Trade Wars - Other countries may take retaliatory measures
which may eventually lead to trade war between or among trade partners.
4. Protection of Inefficient Industries - The incentive to perform better is not there when infant industries are protected from foreign competitors.
5. Distortion of free market actors - Protection leads to distortion in market equilibrium which will lead to market failure.
Answer:
(a)
Dr. Cash $2,630,000
Cr. Preferred Stock $2,147,000
Cr. Add-in-Capital excess of par preferred stock $483,000
Explanation:
Preferred stockholders has an advantage that they are paid first when there is any dividend is announced. The residual dividend will be divided into the common stockholders. Any prior years due dividend and current years dividend associated with preferred share will be paid first.
Par value = 113,000 x 19 = $2,147,000
Excess of par value = $2,630,000 - $2,147,000 = $483,000
Date of Declaration:
Dr: Retained Earnings 22,850,000
Cr: Common Stock Dividend Distributable 350,000
Cr: Paid-in Capital in Excess of Par-Common 22,500,000
500,000*45 = 22,500,000
22,500,000+350,000=22,850,000
Date of Distribution:
(70%*500,000) = 350,000
Dr: Common Stock Dividend Distributable 350,000
Cr: Common Stock 350,000
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