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adoni [48]
3 years ago
8

Q1. Big Money Monster is a business school. The school bases its budgets on two measures of activity: number of students and num

ber of courses. The school uses the following data in its budgeting: Fixed cost per month Variable cost per student Variable cost per course Faculty wages $4,000 $0 $20 Course supplies $1,000 $10 $50 Administrative expenses $2,000 $20 $30 In July, the school budgeted for 300 students and 15 courses. Actual results for the month appear below: Number of Students 280 Number of Courses 18 Faculty wages $4,200 Course supplies $4,800 Administrative expenses $8,300 What is the spending variance for course supplies (choose the closest answer)
Business
1 answer:
maxonik [38]3 years ago
4 0

Answer:

Big Money Monster

The spending variance for course supplies is:

$50 Unfavorable.

Explanation:

a) Data and Calculations:

                                       Fixed cost   Variable cost   Variable cost    Total

                                       per month    per student     per course

Faculty wages                   $4,000             $0                   $20

Course supplies                $1,000             $10                  $50

Administrative expenses $2,000            $20                  $30

Budgeted number of students = 300

Budgeted number of courses = 15

Actual number of students = 280

Actual number of courses = 18

Actual Faculty wages = $4,200

Actual Course supplies = $4,800

Budgeted Costs:

                                       Fixed cost   Variable cost   Variable cost    Total

                                       per month    per student     per course

Faculty wages                   $4,000             $0                   $20          $4,300

Course supplies                $1,000             $10                  $50            4,750

Administrative expenses $2,000            $20                  $30            8,450

Budgeted costs:

Faculty wages = $4,000 + $0 + $20 * 15 = $4,300

Course supplies = $1,000 + $10 * 300 + $50 * 15 = $4,750

Administrative expenses = $2,000 + $20 * 300 + $30 * 15 = $8,450

Budgeted Cost of Course Supplies = $4,750

Actual Cost of Course Supplies =         4,800

Spending variance for Course Supplies = 50 Unfavorable

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Willow Creek Nursery, with an authorization of 72,000 shares of preferred stock and 210,000 shares of common stock, completed se
GaryK [48]

Answer:

Explanation:

The journal entries are shown below:

1. Cash A/c Dr $4,000,500

         To Common stock $2,540,000

         To Paid-In Capital in Excess of Par-Common Stock  $1,460,500

(Being issuance of the common stock is recorded)

2. Land A/c Dr $860,000

   Building A/c Dr $2,533,000

        To Preferred Stock  $2,925,000

        To Paid-In Capital in Excess of Par-Preferred Stock  $468,000

(Being issuance of the preferred stock is recorded)

All other information which is given is not relevant. Hence, ignored it

8 0
3 years ago
the four key problem-solving steps occurring during the agreement stage: brainstorm as many solutions as possible, develop an ac
Nookie1986 [14]

The agreement stage incorporates four key problem-solving steps. Each is briefly described below:

  1. Brainstorm as many solutions as possible: in the first step, several possible solutions to a problem are analyzed so that the best optimal solution can be considered.
  2. Develop an action plan: in this stage, a comprehensive plan is developed in which tasks are assigned to respective individuals with the resources to be used and the required amount of time to complete the tasks.
  3. Implement the action plan: this is the execution phase where the actual implementation of tasks is performed based on the requirements mentioned in the action plan.
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6 0
1 year ago
The common stock of Dayton Repair sells for $43.19 a share. The stock is expected to pay $2.20 per share next year when the annu
mihalych1998 [28]

Answer: 7.35%

Explanation:

Based on the information given, the market rate of return on this stock will be calculated as:

= (D1/P0) +G

where,

D1= Dividend at year 1 = 2.20

P = price at present =43.19

G = dividend growth rate =2.25%

We then slot the figures into the formula and we will get:

= (D1/P0) +G

= (2.20 / 43.19) + 2.25%

= 0.051 + 2.25%

= 5.1% + 2.25%

= 7.35%

Therefore, the market rate of return will be 7.35%.

4 0
2 years ago
Skor Co. leased equipment to Douglas Corp. on January 2, 2011 for a 7-year period expiring December 31, 2017. Equal payments und
ExtremeBDS [4]

Answer:

$2,400,000

Explanation:

Always remember that in the case of a sales type lease, the lessor at the inception of the sales type lease would recognize sale of equipment at a price of present value of the lease payments which is $2,800,000 and cost of goods sold will be recorded at cost of equipment which is $2,400,000.

Case 1: If the equipment was an inventory then the double entry would be as under:

Recording of Sales:

Dr Lease Asset $2,800,000

Cr           Sale of Inventory $2,800,000

Recording of inventory out:

Dr Cost of Goods Sold $2,400,000

Cr           Inventory Account $2,400,000

Case 2: If the equipment was fixed asset then the double entry would be as under:

Recording of Sales:

Dr Lease Asset $2,800,000

Cr       Sale of Fixed Asset $2,800,000

Recording of equipment handing over to customer:

Dr Cost of Goods Sold $2,400,000

Cr        Equipment Account $2,400,000

In both of the cases the cost of goods sold will be $2,400,000.

4 0
3 years ago
Aspen Integrated Marketing used to have a strict hierarchical structure, with information given only to those who required it. T
Brums [2.3K]

Answer:

open-book management or it can also be called a boundaryless organization.

Explanation:

Open-book management

This is simply the act of sharing with employees at all levels of an organization some vital information that is somehow or previously meant for too management staff only. It also involves opening a company's financial statements to all employees and giving them the education that will enable them to understand how the company makes money and how their actions affect its success and bottom line.

Boundaryless organization

This is simply known as a form of organization structure in which there are no barriers to information flow. Boundaryless designs include barrier-free, modular and virtual organizations. An organization without barriers has permeable internal and external boundaries and requires higher level of trust and shared interests, a shift in philosophy from executive development to organizational development, greater use of teams etc.

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2 years ago
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