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Orlov [11]
3 years ago
11

A company begins operations in Year 1 and offers a one-year warranty on all products sold. Total appliance sales in Year 1 are $

1,600,000, and the company estimates future warranty costs in Year 2 to be 2% of current sales. Actual warranty costs in Year 2 are $25,000. Also in Year 2, the company has additional sales of $2,400,000 and revises its estimate of warranty costs associated with sales in Year 2 to be 1.5%. Exercise 8-15B Part 4 4. What is the balance in Warranty Liability at the end of Year 1 and Year 2
Business
1 answer:
Aleks04 [339]3 years ago
6 0

Answer: See explanation

Explanation:

Based on the information given in the question, the balance in Warranty Liability at the end of Year 1 and Year 2 will be calculated thus:

Balance in Warranty Liability at the end of Year 1 will be:

= $1,600,000 × 2%

= $1,600,000 × 0.02

= $32,000

Balance in Warranty Liability at the end of Year 2 will be:

= $2,400,000 × 1.5%

= $2,400,000 × 0.015

= $36,000

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Why are there so many cell phone stores in bad neighborhoods?
frosja888 [35]
In my opinion, bad neighborhoods have a large amount of cell phone stores because the people in the bad neighborhood usually don't come across (or have for that matter) phones. And to see the 'cool' cellphones in person and to have the people sell it in person, the people in the bad neighborhood should want it more. And considering the modern generation we are living in right now, people like technology and want it, in the term 'humans as economical creatures', a human's want will never be satisfied, they will always want more. So, as I said, people and their families like technology, and all the cellphone sellers will come to the neighborhoods who will buy and want more, why would they sell in places where people already have cell phones, so they go to bad neighborhoods.

unless you mean 'bad' isn't 'not highly rich' then I don't know, but as a thirteen year old, I tried.
5 0
3 years ago
One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors. True or false?.
MrMuchimi

True. One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.

<h3>What is a predetermined overhead rate?</h3>

This is the term that is used to refer to the allocation rate that is used in the determination of the estimated cost of the manufacturing overhead. It is used to show in either the order of the product or that of the job.

Hence based on this question we can say that it is true because the reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.

Read more on overhead rate here: brainly.com/question/13312583

#SPJ1

3 0
1 year ago
Marginal cost is calculated for a particular increase in output by A. multiplying the total cost by the change in output. B. div
Alina [70]

Answer:

B) dividing the change in total cost by the change in output

Explanation:

Marginal cost(MC) is the cost incurred as a result of producing additional units of goods and services. It is calculated by dividing a change in total cost by a change in output.

That is,

Marginal cost(MC)= change in total cost(TC)/ change in output

Total cost(TC): This is the addition of fixed and variable cost in production.

Total cost(TC)= fixed cost (FC)+variable cost (VC)

Fixed cost (FC) are cost that doesn't change during the production process such as buildings, machineries and furniture.

Variable cost (VC) are cost that changes or are used up during production process such as raw materials.

4 0
3 years ago
Read 2 more answers
Lake Co. receives nonrefundable advance payments with special orders for containers constructed to customer specifications. Rela
klasskru [66]

Solution :

We calculate the advances form the customer to be reported as the current liability as on Dec. 31, 2009 in the balance sheet as follows :

          <u>  Particulars  </u>                                                               <u>  Amount ($)</u>

Customer advances the balance Dec 31, 2008                           110

Add : advances that is  received with 2009 orders is                 195

Less : advances applicable to the orders in 2009                      -180

Less : advances from orders that are canceled in 2009          <u>  -45  </u>

Advances from the customers liability Dec. 31, 2009                  80

Therefore, the advance from the customer to be reported in the balance sheet as the current liability is $80.

6 0
2 years ago
A professional basketball players' union negotiates a contract that dramatically increases all players' salaries. How would this
Misha Larkins [42]

Answer:

B) It would increase the opportunity cost of becoming a broadcaster.

Explanation:

Opportunity costs are defined as the cost of choosing one alternative activity or investment over another.

The basketball player has two options, he can continue to play for an NBA team with a much better salary, or he can decide to become a broadcaster. If the player decides to quit basketball, then he will lose more money due to pay raise. That amount of money that he will lose if he decides to become a broadcaster is the opportunity cost of becoming a broadcaster. Since the pay increase raised the player's salary, the opportunity cost of becoming a broadcaster also increases.

4 0
3 years ago
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