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Wittaler [7]
3 years ago
14

Heavy Products, Inc. (HPI) developed standard costs for direct material and direct labor. In 2020, HPI estimated the following s

tandard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity Budgeted price Direct materials 0.90 pounds $60 per pound Direct labor 0.10 hours $30 per hour During June, Heavy Products produced and sold 19,000 containers using 1,200 pounds of direct materials at an average cost per pound of $63 and 17,100 direct manufacturing labor-hours at an average wage of $31.25 per hour. The direct manufacturing labor price variance during June is: $3600 unfavorable $950,400 unfavorable $21,375 unfavorable $21,375 favorable
Business
1 answer:
marissa [1.9K]3 years ago
5 0

Answer:

C. $21,375 unfavorable

Explanation:

Standard rate = $30 per hour

Actual rate = $31.25

Actual time = 17,100 direct labor hours

Direct manufacturing labor price variance= Actual time * (Standard rate - Actual rate)

= 17,100 * ($30 - $31.25)

= 17,100 * (-$1.25)

= $21,375 Unfavorable

So, the Direct manufacturing labor price variance during June is $21,375 U.

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Business collected S6,600 rent in advance on July 1. Accountant record the journal entry for this collected amount on July 1. Th
suter [353]

Answer:

This is correct

Explanation:

There will be two entries. One at the time of receiving cash on 1st July . That would be

Cash. B. $6600 (debit)

Unearned Rent Revenue. $ 6600 (credit)

On 31st Dec an adjusting entry would be made . The rent for 6 months will be calculated which will be as given above.

Rent for 6 months = ( 6,600/12 )* 6= $ 3,300

The entry will be

Unearned Rent Revenue $3,300 (debit)

Rent Revenue $ 3,300 (credit)

$ 3300 will be deducted from the current liabilities on the credit side.

Rent Revenue of $3300 will be added on the credit side of the income statement.

3 0
3 years ago
Consider a firm with an EBIT of $500,000. The firm finances its assets with $2,000,000 debt (costing 6 percent) and 50,000 share
Schach [20]

Answer:

EPS is reduced by $1.92 and 42%

Explanation:

EBIT                      $500,000

Interest Expense ($120,000)     ($2,000,000 x 6%)

EBT                       $380,000

Tax 40%               <u>($152,000)</u>

Net Earninig         <u>$228,000</u>

Outstanding stock = 50,000

EPS = $228,000 / 50,000 = $4.56 per share

Change in Capital Structure.

EBIT                      $500,000

Interest Expense ($60,000)     ($1,000,000 x 6%)

EBT                       $440,000

Tax 40%               <u>($176,000)</u>

Net Earninig         <u>$264,000</u>

Outstanding stock = 50,000 + 50,000 = 100,000

EPS = $264,000 / 100,000 = $2.64 per share

Change in EPS = $4.56 - $2.64 = $1.92 per share

Change in EPS = $1.92 / $4.56 = 0.42 = 42%

5 0
3 years ago
On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 28,000 shares of 6%, $50 par, cumulati
Shalnov [3]

Answer:

basic earnings per share = $1.14

diluted earnings per share = $1.02

Explanation:

net income = $178,905

preferred stocks = 28,000 x 6% x $50 = $84,000

January 1, 100,000 shares outstanding x 12/12 = 100,000

February 28, purchased -22,000 treasury stocks x 10/12 = -18,333

September 30, sold 5,800 treasury stocks x 3/12 = 1,450

total weighted average stocks = 83,117

diluted stocks = [($48 - $38) / $48] x 48,000 = 10,000

basic earnings per share = (net income - preferred dividends) / weighted average stocks = ($178,905 - $84,000) / 83,117 stocks = $1.14

diluted earnings per share = (net income - preferred dividends) / (weighted average stocks + diluted stocks) = ($178,905 - $84,000) / (83,117 + 10,000 diluted stocks) = $1.02

3 0
3 years ago
In July 2008, the average price of gasoline in the United States was $4.09 per gallon and consumers bought 6 percent less gasoli
Basile [38]

Answer:

PED= 0.1571

Explanation:

The price elasticity of demand (PED) indicates how the quantity demanded change when the price changes. Is defined by this equation:  

Price Elasticity of Demand = Percentage change in Q/ Percentage change in P  

In this case, the problem is giving percentage changes in Q but we must calculate the percentage change in price:

%Change in price = ( p2-p1/p1)*100= ($4.09-$2.96)/$2.96= 0.3817*100=38.17%

%Change in quantity is= -6%

PED= -6%/38.17%

In absolute value:

PED= 0.1571

If the PED is less than 1 then gasoline is considered as inelastic.

6 0
3 years ago
Gentleman Gym just paid its annual dividend of $3 per share, and it is widely expected that the dividend will increase by 5% per
Roman55 [17]

Answer and Explanation:

The computation of the price that should be sell is shown below:

As we know that

Price = dividend × (1 + growth rate) ÷ (discount rate - growth rate)

a. The price is

= $3 × 1.05 ÷ (15% - 5%)

= $31.50

b. Now the price is

= $3 × 1.05 ÷ (12% - 5%)

= $45

Hence, the above represent the answer in both the cases.

6 0
2 years ago
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