Where do most banks get the text to explain their calculations of interest?

Nonamiya [84]

1 - Point-of-Sale Display
2 - Sampling
3 - In-Store Promotion
4 - Event Marketing

7 0

3 years ago

Bretthauer Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July. Prio

Elanso [62]

Answer:

b. Manufacturing overhead applied to Work in Process for the month was $66,000

Explanation:

In posting the journal entries for a manufacturing company, the total of the amount on the credit side of the Manufacturing Overhead account represents the amount applied to and to be posted to the debit side of the Work in Process to complete the double entries.

Therefore, the correct option form the question is b. Manufacturing overhead applied to Work in Process for the month was $66,000.

7 0

3 years ago

Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The

Tom [10]

a. Standard labor-hours is 7920 hours.

b. Standard labor cost allowed is $42,768.

c. The labor spending variance is $1588(U).

d. The labor rate variance is $1706 and the labor efficiency variance $3294(U).

e. The variable overhead rate is $5971(U) and efficiency variances for the month $5580(U).

<u>Explanation:</u>

a)Standars hours(SH) allowed to make 19800 jogging mates

=SH per unit $\times$ 19800

=(24/60)*19800

=7920 hours

24/60 has been taken to convert minutes into hours.

b)Standard Labor Cost (SC) of 19800 jogging mates

$=19800 \times SC per unit=19800 \times $2.16\\=$42,768$

=$42,768

c)Labour Spending Variance

$=Standard Cost - Actual Cost(AC)=$42,768 - $44,356=$1588(U)$

=$1588(U)

d)Labor Rate Variance

$=(SR per hour-AR per hour)\timesAH=(5.4-5.2)*8530=$1706(F)$

=$1706

Actual Hours(AH) * Actual Rate per hour(AR)= Actual Cost(AC)

$8530 \times AR = $44,356$

$AR = \frac{44356}{8530}\\ \\AR = 5.2$

Labor Efficiency Variance

$=(SH-AH) \times SR\\=(7920-8530)*$5.4=$3294(U)$

=$3294(U)

e) Variable overhead rate variance = Actual hours worked (Standard overhead rate - Actual overhead rate)

= 8530 (4.5 - 5.20)

= $5971(U)

Actual overhead rate = $44,356 / 8530 = 5.20

Variable overhead efficiency variance = Standard overhead rate (Standard hours - Actual hours)

= 4.50 (7290 - 8530)

= $5580(U).

8 0

3 years ago

Nicole is a calendar-year taxpayer who accounts for her business using the cash method. On average, Nicole sends out bills for a

BigorU [14]

Answer:

a) I guess that Nicole bills $12,000 per month, not $512,000.

Assuming that the last time Nicole billed her customers was November, she was able to collect $11,760 before the year ended. I will also assume that the remaining $240 are uncollectible.

If Nicole postpones billing her customers during December, her taxable income as a cash basis taxpayer will decrease by $12,000 x 70% = $8,400

she will be able to save $8,400 x 2% = $168 in current taxes, but she will have to pay them next year anyways.

b) The time value of money should affect Nicole's calculations because she is saving the interests that could be earned by $168 in 1 year. We are not given any specific interest rate but we could use 6% as an example. Nicole will gain $168 x 6% = $10.08

But she will also lose potential interests earned on the $8,400 that she billed later. Using the same interest rate, 6%, she will lose $8,400 x 6% x 1/12 (only 1 month) = $42.

That means that the net result from this = $10.08 - $42 = -$31.92.

As you can see, Nicole is losing money. The higher the interest rate, the more money she will lose.

c) The risk of increasing uncollectible accounts will always exist. Nicole already has around 2% of uncollectible accounts, and combining two bills at one time might lead to a higher percentage of uncollectible accounts. Of course, this depends on her clients, but the risk will increase a little bit or a lot, but it will increase.

4 0

4 years ago

Nico bought 100 shares of cisco systems stock for $30.00 per share on january 1, 2013. he received a dividend of $2.00 per share

Kamila [148]

Jan. 1, 2013:
Initial investment = (100 shares)*($30/share) = $3,000.

End of 2013:
Dividend collected = ($2/share)*(100 shares) = $200

End of 2014:
Dividend collected = ($3/share)*(100 shares) = $300

End of 2015:
Dividend collected = ($4/share)*(100 shares) = $400

Returns::
From sales of 100 shares = ($33/share)*(100 shares) = $3,300
From dividends = 200 + 300 + 400 = $900
Total returns = 3,300 + 900 = $4,200

Realized returns = Total returns - Initial inestment
= 4200 - 3000
= $1,200

Answer: $1,200

6 0

4 years ago