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3 years ago

For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclose in

Business

1 answer:

ratelena [41]3 years ago

8 0

Answer:

Cruz Company

Indicating whether to (a) record a liability, (b) disclose in notes, or (c) have no disclosure.

Transaction Remark

1. Guarantee of supplier's debt (c) have no disclosure

2. Damages for disgruntled employee (b) disclose in notes

Explanation:

When it is not probable that the supplier whose debt is guaranteed by Cruz will default on the debt, there is no need to make a disclosure since probable liability is not accruing to Cruz. But with the legal case of a disgruntled employee, Cruz should disclose the information in a note. It can only be recorded as a liability when the amount of the damages can be reasonably estimated.

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Schneider, Inc., had the following information relating to Year 1: Budgeted factory overhead: $74,800 Actual factory overhead: $

astraxan [27]

Answer:

<u>The actual direct labor hours are 45,000.</u>

<u>The overhead rate for Year 2 is $1.74.</u>

Explanation:

Compute the actual direct labor hours:

$\begin{aligned}\text{Actual direct labor hours}&=\dfrac{\text{Applied overheads}}{\text{Overhead rate}}\\&=\dfrac{\$76,500}{1.7}\\&=45,000\end{aligned}$

<u>Therefore, the actual direct labor hours are 45,000.</u>

Compute the overhead rate for Year 2:

$\begin{aligned}\text{Overhead rate}&=\dfrac{\text{Actual overheads}}{\text{Actual direct labor hours}}\\&=\dfrac{\$78,300}{45,000}\\&=1.74\end{aligned}$

<u>Therefore, the overhead rate for Year 2 is $1.74.</u>

<u />

Working note:

Calculate the overhead rate for Year 1:

$\begin{aligned}\text{Overhead rate}&=\dfrac{\text{Budgeted overheads}}{\text{Estimated direct labor hours}}\\&=\dfrac{\$74,800}{44,000}\\&=1.7\end{aligned}$

7 0

3 years ago

In the late 1950s and 1960s, television Westerns were extremely popular and included Gunsmoke, Bonanza, Wagon Train, and The Big

notsponge [240]

Answer: (C) Decline

Explanation:

The decline stage is one of the type of last stage in the product life cycle as it basically representing the actual behavior of the product in the market which results in the form of negative growth.

The decline stage basically demonstrating about the decrease sales and also the profit of the products in an organization.

According to the given scenario, the television western is one of the type of category that entering into the decline stage due to the change in the taste of the customers.

Therefore, Option (C) is correct answer.

7 0

4 years ago

Economics-- multiple choice!

artcher [175]

Answer:

combat unemployment?

Explanation:

That seems the likeliest answer compared to the others since national parks provide jobs.

5 0

3 years ago

Describe two examples of important things that financial planning skills can help you do, and explain why these things are impor

Alex777 [14]

Answer:

Two examples of important things that financial planning skills can help us do are:

Acquire a strong savings habit
Set realistic goals

Explanation:

Acquire a strong savings habit: This is achievable when a person has a clear understanding of how much are their expenses and how much is needed to be save in order to acquire capital goods or to construct a fund for unexpected costs.

Set realistic goals: When a person knows how much its income is and has a realistic financial planning he knows what goals are achievable and which are not.

7 0

3 years ago

If a school has a capacity of 100 seats and all are full for the term, what can you do to increase profitability?

Ksivusya [100]

The school need to increase its tuition fee in order to increase its profitability despite having a full class already.

<h3>What is a profitability?</h3>

This refers to the measurement of an organization's profit in relation to its expenses.

Despite that this capacity of 100 seats are filled for the term, the school can decide to increase its tuition fee in order to increase its profitability for the school session.