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VikaD [51]
3 years ago
10

Assume US GAAP to answer this question. In 2017, $2 million in wages were earned and no cash wages were paid. In 2018, $8 millio

n in wages were earned and $9 million in cash wages were paid. Cash wages were used to first pay wages earned in 2017 with the remainder used to pay wages earned in 2018. Any earned but unpaid wages will be paid during the first quarter of 2019. Using only the information provided, which of the following statements is most accurate?
a. Liabilities increased by $1.0 million in 2018
b. Liabilities increased by $3.0 million in 2018
c. Assets decreased by $5.0 million in 2018
d. Retained earnings decreased by $10.0 million in 2018
e. Retained earnings decreased by $7.0 million in 2018
Business
1 answer:
kari74 [83]3 years ago
6 0

Answer: a. Liabilities increased by $1.0 million in 2018

Explanation:

In 2018, $9 million was used to settle the wage debt of 2017 and the remainder was used to settle the wages in 2018.

The money remaining in cash after the wage settlement was:

= 9,000,000 - 2,000,000 - 8,000,000

= -$1,000,000

This means that $1,000,000 of wages was not settled in 2018 which means that this would have to go to the Wages Payable account to signify that the company owes wages.

This account is a liability account so liabilities in 2018 would increase by $1,000,000.

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Exercise 8-5A Determining flexible budget variances LO 8-4 Benson Manufacturing Company established the following standard price
leva [86]

Answer:

A. $720 Unfavorable

B. $840 Unfavorable

C. $1,560 Unfavorable

D. $800 Favorable

E. $30 Unfavorable

F. $790 Unfavorable

Explanation:

The computation of given question is shown below:-

A. Sales = (Budget quantity - Actual quantity) × Budgeted sale price

= ($8.10 - $7.80) × 2,400

= $0.3 × 2,400

= $720 Unfavorable

B. Variable manufacturing = (Actual variable cost - Budgeted variable manufacturing cost) × Budgeted sale price

= ($4.25 - $3.90) × 2,400

= $0.35 × 2,400

= $840 Unfavorable

C. Contribution margin = ((Budgeted sales price - Budgeted variable manufacturing cost) - (Actual sale price - Actual variable cost)) × Budgeted sale price

= (($8.10 - $3.90) - ($7.80 - $4.25)) × 2,400

= $0.65 × 2,400

= $1,560 Unfavorable

D. Fixed manufacturing = Actual fixed manufacturing cost - Budgeted  Fixed manufacturing cost

= $1,300 - $2,100

= $800 Favorable

E. Fixed selling and admin cost = Actual selling and administrative costs - Budgeted fixed selling and administrative cost

= $530 - $500

= $30 Unfavorable

F. Net income (loss) = Contribution margin - Fixed manufacturing + Fixed selling and admin cost

= $1,560 - $800 + $30

= $790 Unfavorable

8 0
3 years ago
When vegans carry signs that read "meat is murder" or when antiabortion marchers hand out literature illustrated with gruesome p
kompoz [17]

They are likely to engage in moral shock that will help them in attracting new members and other likeminded citizens. This is an emotional or cognitive process in which is being used as a way of encouraging other people to be involved or participate in what they want them to participate to.

4 0
3 years ago
Which of the following is not always a result of unethical behavior? a. loss of profits b. loss of goodwill c. loss of trust d.
ehidna [41]

Answer:

The correct answer is letter "A": loss of profits.

Explanation:

A company's loss of profits can be caused because of several reasons. Typically is the result of<em> internal factors such as ineffective managerial strategies, unethical executives allocation of resources, inefficient production processes or poor market study and external factors such as suppliers deficit, political events or government regulations. </em>

<em>Thus, unethical events are not the only reason why entities incur losses.</em>

7 0
3 years ago
Polar Containers makes​ high-end coolers for camping. The total task time needed to make a cooler is 310 ​seconds, with the long
Degger [83]

Answer:

TAKT time: 840 seconds

maximum output:  315 coolers.

Explanation:

The takt time refers to matching the production pace with the demand

\frac{availalbe-working-time}{customer \: or \: firm \: demand}

To produce 30 coolers per 7-hours day we need an outpot of:

7 hours x 60 minutes x 60 seconds = 25,200

output of 30 coolers

takt: 25,200 / 30 = 840 seconds

producing a cooler every 840 seconds is the takt time.

Maximum output:

If the company does several cooler in parallel it will have a bottle neck in the longest individual task so, this time determinates the maximum output.

25,200 second of working time available

80 second longest task to complete a cooler:

25,200 / 80 = 315 coolers.

7 0
2 years ago
What are the three aspects of corporate organization according to the economics of organizational architecture article?
Iteru [2.4K]

Answer:

The three aspects of corporate organization according to the economics of organizational architecture article are;

Decision Right Assignments

Reward System

Performance Evaluation

7 0
3 years ago
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