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Vikentia [17]
2 years ago
6

Beech Manufacturing makes expanded and is now making two products: Standard and Deluxe. Each Standard model takes 1.5 machine ho

urs and the Deluxe model requires 2 machine hours. The company predicted it would produce 1,100 units of the Standard Model and 770 units of the Deluxe Model during July. The company uses units of input (machine hours) to budget utility costs. The utility rate per machine hour is $0.35. During July, the company produced 1200 units of the Standard model and 850 units of the Deluxe model and used 3400 machine hours. What is the utilities flexible budget for July
Business
1 answer:
Talja [164]2 years ago
6 0

Answer:

Beech Manufacturing

The utilities flexible budget for July is:

= $1,225

Explanation:

a) Data and Calculations:

Utility rate per machine hour = $0.35

                                              Standard      Deluxe      Total

Predicted production                1,100             770      1,870

Expected machine hours        1,650          3,080     4,730

Units produced                       1,200             850     2,050

Standard machine hour/unit      1.5                 2

Budgeted machine hours

(flexible budget)                    1,800           1,700     3,500

Actual machine hours used                                    3,400

Utilities Static Budget = $1,655.50 (4,730 * $0.35)

Utilities Flexible Budget = $1,225 (3,500 * $0.35)

Utilities Actual Budget = $1,190 (3,400 * $0.35)

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Suppose that consumers become more pessimistic about the future and, as a result, reduce their consumption by $10 billion. If th
iragen [17]

Answer:

Real GDP will decrease by $50 billion.

Explanation:

In order to calculate the net effect of a reduction in consumption of $10 billion, we need to identify the multiplier first.

Multiplier = 1 / marginal propensity to save

Marginal propensity = 1 - marginal propensity to consume = 1-0.8 = 0.2

Multiplier = 1 /0.2 = 5

The net change then of a reduction by 10 billion = 10 * 5 = $50 billion

Hope that helps.

4 0
3 years ago
Todd can afford to pay $390 per month for the next 7 years in order to purchase a new car. The interest rate is 6.8 percent comp
zvonat [6]

Answer:

$26,036.74

Explanation:

Tom is able to pay $390 per month for 7 years. The interest rate is 6.8 %. Tom will pay an equivalent of the present value of a $390 annuity for & years 6.8 per cent

The applicable formula is

PV = P ×  1 − (1+r)−n

                      r

Where PV is the present value

P is 390

r is 6.8% per year or 0.005666

n is 7 year or 84 months

PV = $390 x 1-(1+0.005666)84

   0.00566

PV = $390  x 1- 0. 622133410)

   0.00566

PV =390  x  (0.37786659/0.00566)

PV = $390 x 66.760

PV = $26,036.74

4 0
3 years ago
Suppose that an income producing property is expected to yield cash flows for the owner of $150,000 in each of the next five yea
vivado [14]

Answer:

$1,449,635.50  

Explanation:

The computation of the value of the property today is shown below:

First the present value for 5 years is

Year Cash flows    Discount factor      Present value

1 $150,000  0.925925926 $138,888.89  

2 $150,000  0.85733882         $128,600.82  

3 $150,000  0.793832241         $119,074.84  

4 $150,000  0.735029853         $110,254.48  

5 $150,000  0.680583197          $102,087.48  

Total present value            $598,906.51  

The discount factor is

= 1 ÷ (1 + rate)^years  

And, the formula of future value is

Future value = Present value × (1 + rate)^number of years

$1,250,000 = Present value × (1 + 0.08)^5

$1,250,000 = Present value × 1.469328077

So, the present value is $850,729

Now the today value of the property is

= $598,906.51 + $850,729

= $1,449,635.50  

7 0
3 years ago
At the end of the fiscal year, the usual adjusting entry to update Prepaid Rent for the portion of the benefit that was used up
TEA [102]

Answer:

d. net income for the year will be overstated.

Explanation:

The prepaid rent account is used to record the amount paid in advance for rent. Once the amount is paid, the entries required are

Debit Prepaid rent

Credit Cash account

On subsequent use of the rent, the required entries are

Debit Rent expense

Credit Prepaid rent

As such where at the end of the fiscal year, the usual adjusting entry to update Prepaid Rent for the portion of the benefit that was used up / expired was accidentally omitted, net income for the year will be overstated as the rent expense that would have been posted to reduce it would have been omitted.

6 0
3 years ago
Identify each of the following terms or phrases as an accounting (a) principle, (b) assumption, or (c) constraint.
german

Answer and Explanation:

The identification of the following terms as an accounting principle, assumption or constraint is

1 Business entity    = Assumption

2. Measurement  = Principle

3 Cost-benefit   = Constraint

4 Revenue recognition  = Principle

In this way the identification of the accounting terms would be done

The same is relevant too

7 0
2 years ago
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