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3 years ago

PB5.

Business

1 answer:

Olin [163]3 years ago

6 0

Answer:

Calculation of cost driver rates

Material receipts = $249,975/750 = $333.30 per requisition

Machine set-up = $150,000/200 set-ups = $750.00 per set-up

Assembly = $450,000/300 parts = $1,500 per part

Machine maintenance = $175,000/3,500 hours = $50 per machine hour

Calculation of overhead allocated to each unit of products

Material receipts

Simple = $333.30 x 300

369,991 units

= $0.27 per unit

Removable = $333.33 x 450

146,100 units

= $1.03 per unit

Machine set-up

Simple = $750 x 150 set-ups

369,991 units

= $0.30 per unit

Removable = $750 x 50 set-ups

146,100 units

= $0.26

Assembly

Simple = $1,500 x 100 parts

369,991 units

= $0.41 per unit

Removable = $1,500 x 200 parts

146,100 units

= $2.05 per unit

Machine maintenance

Simple = $50 x 2,000 machine hours

369,991 units

= $0.27 per unit

Removable = $50 x 1,500 machine hours

146,100 units

= $0.51 per unit

Calculation of overhead allocated to each product

Simple Removable

$ $

Material receipts 0.27 1.03

Machine set-up 0.30 0.26

Assembly 0.41 2.05

Machine maintenance 0.27 0.51

Overhead allocated 1.25 3.85

Explanation:

The overhead allocation rate is calculated by dividing the overhead for each cost pool by the total cost driver for each cost pool.

The overhead allocated to each product is calculated by multiplying the cost driver rate by the cost driver for each product divided by the number of units of each product.

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nataly862011 [7]

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Explanation:

MortgageMax is violating the law in recommending a particular counselor and recommending one of its affiliates. Lenders are not allowed to direct a loan candidate to a certain counselor in order to avoid any unfortunate situations that arise from the counselor being partial to the lender.

Lenders are also prohibited from offering the counselling via an affiliate for the same reason above. They are however, allowed to pay for the counselling.

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3 years ago

Terms of a lease agreement and related facts were:

Feliz [49]

Answer:

1) January 1, 2018, asset leased

Dr Lease receivable 550,000

Cr Equipment 550,000

January 1, incremental costs associated with lease transaction

Dr Lease receivable 6,652

Cr Cash 6,652

January 1, 2018, first lease payment collected

Dr Cash 200,000

Cr Lease receivable 200,000

2) to calculate the effective rate we can use the present value of an annuity due formula

PV annuity due factor, 3 periods, ?% = present value of lease receivable / annual payment = $556,652 / $200,000 = 2.78326

Now we must use an annuity due table to determine a possible rate. In this case, the exact rate is 8%.

3) December 31, 2018, interest receivable on lease contract

Dr Interest receivable 28,532

Cr Interest revenue 28,532

interest receivable = ($556,652 / $200,000) x 8% = $28,532

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3 years ago

Bond investors will experience capital gains when Group of answer choices market interest rates are high and falling. market int

solong [7]

Answer:

A) market interest rates are high and falling

Explanation:

Bonds and interest rates have an indirect relationship. When interest rates rise, bond prices tend to fall.

Bonds pay interests on a fixed rate. When market interest rates are rising, investors will prefer investing in other options due their high return as opposed to the fixed returns from bonds. Bonds become less attractive, leading to a decline in prices.

Buying Bonds when the interests are rising means buying at a cheaper rate. When interest rates start falling, bond prices will rise again due to their inverse relationship.

Capital gains occur when an investment is bought at a lower price and sold at a higher price. Buying bonds when interests rate is high and selling when interests are low will lead to capital gains.

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3 years ago

Elston Company compiled the following information as of December 31, 2014:Service Revenue $700,000Common Stock $150,000Equipment

Elden [556K]

Answer:

The Elston's stockholders' equity on December 31, 2014 is $550,000

Explanation:

For computing the stockholder equity, first, we have to find out the ending retained earning balance which equals to

= Beginning retained earning balance + Net income - dividend paid

= $375,000 + $75,000 - $50,000

= $400,000

where,

Net income = Service revenue - operating expenses

= $700,000 - $625,000

= $75,000

Now the stockholder equity equals to

= Common stock + ending balance of retained earning

= $150,000 + $400,000

= $550,000

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3 years ago

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givi [52]

Answer:

Bauer SPO

Explanation:

Bauer SPO is a primer student organization of the supply chain and management at the university of Houston C.T. Bauer College of Business.

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3 years ago