Most canadian businesses have more than five employees? True or false

In 2017, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2018 for $700,000. Before the Decemb

MArishka [77]

Answer:

d) as a current liability

Explanation:

Current Liabilities are those liabilities which are payable within one years time e.g trade payable, tax payable etc.

The credit against the purchase of inventory is classified as the trade payable and it is paid in a short time, so it will be reported on the balance sheet in current liability section.

5 0

3 years ago

g Oriole Company had actual sales of $1100000 when break-even sales were $660000. What is the margin of safety ratio? 67% 40% 33

Sonbull [250]

Answer:

40%

Explanation:

Oriole company has an actual sales of $1,100,000

The break even sales is $660,000

Therefore, the margin of safety can be calculated as follows

= Actual sales-break-even sales/actual sales

= $1,100,000-$660,000/$1,100,000

= $440,000/$1,100,000

= 0.4×100

= 40%

Hence the margin of safety is 40%

3 0

3 years ago

Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control c

guapka [62]

Answer:

a) 500F and 3,000U

the company use a cheaper material thus, favorable price variance.

But this material had lower quality thus, negative quantity variance

b) 4,000U 2,100U

There was overtime thus, making labor rate higher and productivity as the shift are longer, decrease.

It could also be a combination between wrong directives from the supervisor or defective equipment

Explanation:

DIRECT MATERIALS VARIANCES

$(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance$

std cost $ 1.50

actual cost $ 1.48

quantity 25,000 (amount purchased)

difference $0.02

price variance $500.00

$(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance$

std quantity 18000 (3,000 toys produced x 6 per toy)

actual quantity 20000 (25,000 - 5,000 ending inventory)

std cost $1.50

difference -2000.00

quantity variance $(3,000.00)

DIRECT LABOR VARIANCES

$(standard\:rate-actual\:rate) \times actual \: hours = DL \: rate \: variance$

std rate $21.00

actual rate $22.00 (88,000 labor cost / 4,000 direct labor hours)

actual hours 4,000

difference $(1.00)

rate variance $(4,000.00)

$(standard\:hours-actual\:hours) \times standard \: rate = DL \: efficiency \: variance$

std hours 3900.00 (3,000 toys x 1.3 hours per toy)

actual hours 4000.00

std rate $21.00

difference -100.00

efficiency variance $(2,100.00)

5 0

3 years ago

Assume a consumer is spending all her income on two goods: X and Y. At the current consumption combination of the two goods, if

xeze [42]

Answer:

The customer should buy more of good X.

Explanation:

Marginal utility is the additional satisfaction derived from spending an additional unit of money on a commodity.

In the scenario above, since more additional satisfaction is derived from purchasing good X than it is derived from purchasing good Y, then more of good X should be purchased, because this is clearly the commodity that offers more satisfaction.

Therefore, in order for utility to be maximized, more money should be spent on more of good X.

7 0

3 years ago

Read 2 more answers

Which capital budgeting technique is used on an exclusionary basis to prevent investing time and resources investigating using m

IceJOKER [234]

Answer:

"Net Present Value" is the right approach.

Explanation:

A method used to determining or calculating the gaps between the current valuation of initial investment as well as the outputs of something like development or possible expenditure is termed as net present value.

The formula which is used to find the NPV is given below:

⇒ $NPV=\frac{Cash \ flow}{(1+i)^t}-initial \ investment$

here,

i = Return required
t = No. of periods

4 0

3 years ago