The following costs were incurred in September:

Elite Stationary employs 20 full-time employees and 10 trainees. Direct and indirect costs are applied on a professional labor

kolezko [41]

Answer:

Since cost per hour of full-time employees is $150, while cost per hour of trainees $27, clients using proportionately more full-time employees than trainees will <u>be under billed or charged for the resources or labor hour used</u>.

Explanation:

The data in the question are merged and they are first separated before answering the question as follows:

Details Budget Actual

Indirect costs $250,000 $400,000

Annual salary of each employee $200,000 $250,000

Annual salary of each trainee $40,000 $45,000

Total professional labor-hours 40,000 dlh 50,000 dlh

In normal costing system, actual costs are used.

Therefore, labor hours for each category and cost per hour can be calculated as follows:

Full-time employees total labor hours = (20/30) * 50,000 = 33,333 hours

Each full-time employee annual labor hour = 33,333/20 = 1,667 hours

Cost per hour of full-time employees = $250,000/1,667 = $150 per hour

Trainee total labor hours = (10/30) * 50,000 = 16,667 hours

Each trainee annual labor hours = 16,667/10 = 1,667 hours

Cost per hour of trainees = $45,000/1,667 = $27 per hour

Since cost per hour of full-time employees is $150, while cost per hour of trainees $27, clients using proportionately more full-time employees than trainees will <u>be under billed or charged for the resources or labor hour used</u>.

5 0

3 years ago

Joe bought a stock at $57 per share. The price promptly fell to $55. Joe held on to the stock until it again reached $57, and th

Y_Kistochka [10]

Answer: Weak form EMH

Explanation:

Weak form efficiency is also called the random walk theory states that past volume, price movements and earnings do not affect the price of a stock and can not be used to forecast its future direction. Weak form efficiency states that prices of future securities are random and not determined by past events and that there is no relationship between past information and current market prices.

The principle of weak form efficiency has been contradicted because other investors are making use of Joe's past information to create a trading pattern.

4 0

3 years ago

Suppose that the Bethesda Mining Company had sales of $2,166,873 and net income of $108,381 for the year ending December 31, 201

In-s [12.5K]

Answer: attached below

Explanation:

6 0

3 years ago

A portfolio manager buys $1 million of U.S. Treasury bills maturing in 90 days at a price of $990,390 and discount rate of 3.8%.

ioda

Answer:

A. Outperforming the benchmark

Explanation:

Calculation to determine what the manager's portfolio

First step is to calculate the Treasury bill, bond-equivalent yield for U.S.

Using this formula

Treasury bill

=(Face value − Market value) / Market value × 365 / 90

Let plug in the formula

Treasury bill= ($1,000,000 − 990,390) / 990,390 × 365 / 90

Treasury bill=0.0097 × 0.04056

Treasury bill= 3.93%.

Second step is to calculate The total market value of the portfolio

Total market value portfolio=$990,390 + $100,000 + $200,000

Total market value portfolio= $1,290,390

Now let calculate the manager's portfolio

Manager's portfolio=3.93% ($990,390 / $1,290,390) + 4.34% ($100,000 / $1,290,390) + 4.84% ($200,000 / $1,290,390)

Manager's portfolio=3.93%(76.75%)+4.34%(7.75%)+4.84%(15.50%)

Manager's portfolio=0.0410*100

Manager's portfolio= 4.10%

Therefore Based on the above calculation the manager's portfolio is 4.10% OUTPERFORMING THE BENCHMARK because the manager's portfolio of 4.10% is higher than bond-equivalent yield benchmark portfolio of 4.0%.

7 0

3 years ago

Smith Fabricating uses job costing and applies overhead using a normal costing system and uses direct labour cost as the allocat

SSSSS [86.1K]

Answer: C. $950

Explanation:

Hello.

Your question was missing a few details so I threw them in. You'll find it in attachments.

To calculate the total Manufacturing costs for Job 201 we would need to calculate the overhead cost allocation rate first to find out how much Overhead to allocate to Job 201.

Using a normal costing system with direct labour cost as the allocation base,

Overhead allocation rate = (Overheads/Direct Labor Cost)*100

= (100,000/50,000)*100

=200%

Overhead allocation rate is 200% or 2x direct labor cost.

Now to calculate the total Manufacturing costs of Job 201,

Total manufacturing cost for Job 201 = Direct Material + Direct Labor + Manufacturing Overheads

= 350 + 200 + (200*2 for manufacturing overhead)

= 350 + 200 + 400

= $950

$950 is the total manufacturing cost for Job 201 making option C correct.

7 0

3 years ago