1=A
2=D
3=C
4=A
5=C
6=C
7=D
8=A
9=C
10=D
11=C
12=A
13=C
14=B
Answer:
D) $779,843.27
Explanation:
The present value of this donation = Donation in Year 1/(1+ discount rate)^9 + Donation in Year 2/(1+ discount rate)^8 + ….. + Donation in Year 2/(1+ discount rate)^1
= $100,000/(1+9%) + $100,000*(1+5%)/(1+9%)^2 +$100,000*(1+5%)^2/(1+9%)^3…. +$100,000*(1+5%)^9/(1+9%)^10 = $779,843.27
Or we can easily input in excel and generate NPV as file attached; in which the formula is NPV(discount rate, cash inflow year 1 : cash inflow year 10) = (9%, 100000,100000*(1+5%)….,100000*(1+5%)^9) = $779,843.27
Answer:
D. $96,000
Explanation:
We will allocate the cost on maintenance by first stablishing a rate per maintenence hour:
As this is direct method we aren''t doing an allocation to other service department we directly allocate against production department A and B
total hours: 480 + 320 = 800
160,000 total cost /800 hours = 200 per hour
Department B hours: 480
allocate to department B: 480 x 200 = 96,000
Answer:
A business can improve its average contribution ratio and its overall profitability, by shifting its sales mix to include more products with high contribution margin ratios.
In this case American steel company shift in product mix is due to a higher proportion of export sales. This shift caused to decline net income of the company. This is because the contribution margin ratio on export sales may lower than the other product mix. So, the shift of product mix to low contribution sales will cause to decline the net income.
Answer:
The total payroll tax expenses is $3139.5
See the prepared journal in the explanation below.
Explanation:
Before it is presented on a general journal, the calculation is done below;
1. Payroll tax expenses:
FICA Social Security taxes = 6.2% * 2300 * 10
= 0.062 * 2300 * 10
= $1,426
FICA Medicare taxes = 1.45% * 2300 * 10
= 0.0145 * 2300 * 10
= $333.5
FUTA taxes = 0.6% * 2300 * 10
= 0.006 * 2300 * 10
=$138
SUTA taxes = 5.4% * 2300 * 10
= 0.054 * 2300 *10
= $1242
Total payroll tax expenses = $1,426 + $333.5 + $138 + $1242
= $3139.5
Date General Journal Debit Credit
Jan. 31 Payroll tax expense $3139.5
FICA- Social sec. taxes payable $1,426
FICA- Medicare taxes payable $333.5
FUTA taxes payable $138
SUTA taxes payable $1242
(Payroll tax expense recognized)
