All categories

3 years ago

EA9.

Business

1 answer:

OlgaM077 [116]3 years ago

7 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with $25,000 in overhead.

Poly is estimated to have 750,000 setups and 170,000 inspections.

Silk has 250,000 setups and 80,000 inspections.

First, we need to calculate the estimated overhead rate for each activity pool:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Setup:

Estimated manufacturing overhead rate= 100,000/1,000,000= $0.1 per setup

Inspections:

Estimated manufacturing overhead rate= 25,000/250,000= $0.1 per inspection

Now, we can allocate overhead costs:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Poly:

Allocated MOH= 0.1*750,000 + 0.1*170,000= $92,000

Silk:

Allocated MOH= 0.1*250,000 + 0.1*80,000= $33,000

You might be interested in

Suppose that Dillon derives 40 utils of total utility from eating 5 hotdogs and 42 utils of total utility from eating 6 hotdogs.

gavmur [86]

Answer: The marginal utility is 2

Explanation:

Utility is the satisfaction derived from the consumption of a particular commodity. Total utility is the total satisfaction derived from the consumption of a particular commodity. Marginal utility is the extra satisfaction that a consumer gets from consuming a product. Utility is measured in utils.

Marginal utility increases with an extra consumption of a good at first but later it begins to reduce as the extra good consumed doesn't really have give the consumer enough satisfaction anymore.

Regarding the question, eating 5 hotdogs gives 40 utils and eating 6 hotdogs gives 42 utils.

The marginal utility is the extra utils which will be 42-40 which gives 2 utils.

3 0

3 years ago

When one party to a transaction has incentives to engage in activities detrimental to the other party, there exists a problem of

Juli2301 [7.4K]

Answer: Moral hazard

Explanation: As per economic principles, if an individual increases the exposure to risk when covered by insurance, moral hazard happens, particularly when an individual takes further risks just because someone carries the burden of all those consequences.

There can be a moral hazard at which one party's policies may modify to the disadvantage of someone else after a business transaction has occurred. Moral hazard may arise through a type of asymmetric information in which the threat-taking group to trade is more aware of its motives than the person bearing the risk's implications.

Thus, from the above we can conclude that the correct option is A .

5 0

3 years ago

Wisconsin Farm Equipment Company sold equipment for cash. The income statement shows a loss on the sale of $ 10 comma 000. The n

tester [92]

Answer:

A. positive cash flow of $ 20 comma 900 from investing activities

Explanation:

book value - sales price = loss on sale

30,900 - sales price = 10,000

30,900 - 10,000 = sales price

sales price = 20,900

Assumming the purchase was on cash, it will be disclosure as cash generated from investing activities for 20,900

The reason is that cashflow do not focus on the gain or loss from the sale. It focus on the cash movements and this sale involve a cashinflow of 20,900

3 0

3 years ago

On January 1, 2009, a U.S. firm made an investment in Germany that will generate $5 million annually in depreciation, converted

Afina-wow [57]

Answer:

The expected real value (in terms of January 1, 2009, dollars) of the depreciation charge in year 2013 will be $1,958,815.416.

Explanation:

It is expected that the value of the dollar in the German market will fall at the same rate as that of the real market value of the dollar when we envisage the exchange rate will remain the same. Thus the depreciation of the tax write-off in terms of its real value in dollars will fall at 5% every year from 2009 to 2013.

Therefore, at a tax rate of 50% in Germany, a $2.5 million charge on depreciation on the investment of $5 million will result in 2013.

To calculate the real value of the dollar at an inflation of 5% yearly in 2013

When the tax rate in German is 50%, then charges of depreciation of $5 million will equal4$2.5 million in 2013 dollars. When the dollar's real value of this write-off is declining due to the inflation at 5% annually, the real value in 2013 will be calculated as:

Given: $2,500,000 (P/F , 5%, 5years) ; 0.78356 (factor for calculating the amount to be recieved after 5years)

= $2,500,000 * 0.78356

= $1,958,815.416

8 0

3 years ago

How do corporations raise money and resources to expand? Select THREE answers.

Vladimir [108]

Correct answer choices are :

A) They request a bank loan.

D) They agree to sell stocks.

E) They issue bonds.

Explanation:

Also, interest paid on bonds is a tax-deductible business investment for the organization. The problem is that interest payments generally are made on bonds even when no profits are earned. For this reason, a smaller corporation can sometimes raise much capital by issuing bonds.

4 0

3 years ago

Read 2 more answers