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AlexFokin [52]
4 years ago
6

During Year 1, Fox Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs relat

ed to dollar sales are 2% within 12 months following the sale and 4% in the second 12 months following the sale. Sales and actual warranty expenditures for the years ended December 31, Year 1 and Year 2, are as follows: Actual Sales - Warranty Expenditures Year 1 - $ 150,000 - $ 2,250 Year 2 - 250,000 - 7,500 $ 400,000 - $ 9,750 What amount should Fox report as estimated warranty liability in its December 31, Year 2, balance sheet?a. $ 2,500
b. $ 4,250
c. $11,250
d. $14,250
Business
1 answer:
Olin [163]4 years ago
6 0

Answer:

D) $14,250

Explanation:

In order to determine the total warranty liability that Fox must report in its December 31, 2014, balance sheet, we must multiply the total sales for both 2013 and 2014 by the estimated warranty expenses and then subtract the incurred warranty expenses:

  • total sales during 2013 and 2014 = $150,000 + $250,000 = $400,000
  • estimated warranty expenses = 2% + 4% = 6%
  • incurred warranty expenses = $2,250 + $7,500 = $9,750

warranty liability = ($400,000 x 6%) - $9,750 = $24,000 - $9,750 = $14,250

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Julli [10]

Answer:

Volume variance    $1,320  Favorable

Explanation:

The fixed overhead volume variance is the difference between the actual and budgeted production unit multiplied by the standard fixed production overhead cost per unit.

Standard fixed overhead cost per unit = $11×6 =  116

                                                                                             Units

Budgeted     units                                                               375

Actual            units                                                              <u>395</u>

Volume variance                                                                  20

Standard fixed overhead cost                                        <u>× $66 </u>

Volume variance                                                              <u>  $1,320   Favorable</u>

                       

3 0
4 years ago
You purchased shares of a mutual fund at a price of $20 per share at the beginning of the year and paid a front-end load of 6.0%
Feliz [49]

Answer:

1.99%

Explanation:

Calculation for your return if you sold the fund at the end of the year

Return={[$20 * (100%-6%) * (1.10 - .015)] -$20}/$20

Return={[$20 * .94 * (1.10 - .015)] -$20}/$20

Return = 1.99%

Therefore your return if you sold the fund at the end of the year would be 1.99%

3 0
3 years ago
True/False
matrenka [14]

Answer:

True

Explanation:

In business, target marketing is a strategy in which the marketing efforts of a firm is centered toward a part of a larger market with great prospect of making profit

4 0
4 years ago
To compare two programs for training industrial workers to perform la skilled job, 10 workers are included in an experiment. All
Alex17521 [72]

If we compare the p value and the significance level assumed  we see that  so we can conclude that we have enough evidence to reject the null hypothesis, and we can conclude the the true mean for method 1 is lower than the mean for the method 2 at 5% of significance.

<h3>Data given and notation</h3>

We can calculate the sample mean and deviation with these formulas:

represent the mean for the sample mean for 1

represent the mean for the sample mean for 2

represent the sample standard deviation for the sample 1

represent the sample standard deviation for the sample 2

sample size selected 1

sample size selected 2

represent the significance level for the hypothesis test.

t would represent the statistic (variable of interest)

represent the p value for the test (variable of interest)

State the null and alternative hypotheses.

We need to conduct a hypothesis in order to check if the average time taken when training under method 1 is less than the average time for Method 2, the system of hypothesis would be:

<h3>Null hypothesis:</h3>

Alternative hypothesis:

If we analyze the size for the samples both are less than 30 so for this case is better apply a t test to compare means, and the statistic is given by:

(1)

t-test: "Is used to compare group means. Is one of the most common tests and is used to determine whether the means of two groups are equal to each other".

Calculate the statistic

We can replace in formula (1) the info given like this:

 P-value

The first step is calculate the degrees of freedom, on this case:

Since is a one sided test the p value would be:

To learn more about  null hypothesis visit the link

brainly.com/question/16261813

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5 0
1 year ago
On March 1st, Kalka Company borrowed $5,000 in the form of a three-month note payable with an annual interest rate of 6 percent.
STatiana [176]

Answer:

Option (A) is correct.

Explanation:

Given that,

On March 1st,

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Annual interest rate = 6 percent

Period = one month

Interest expense accrued=5000\times0.06\times\frac{1}{12}

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As Kalka Company borrowed $5000 on March 1st and accrued interest expenses on March 31st is $25.

7 0
3 years ago
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