Which type of savings account offers the best interest rates?

use the cost index method to estimate the current construction cost for a building equivalent to one constructed in 1980 at a co

oksano4ka [1.4K]

Answer:

To determine the current equivalent cost of a construction built in 1980 whose cost was $ 2.7 million, we must establish the relationship between the price index for that year, comparing it with that of the current year.

Taking into account that the average cost index for 1980 was 1941, and that said value is currently 3620, we can note that there was a significant increase in costs. Since 3620/1941 = 1.86, to determine the current cost of construction we must multiply its cost by 1.86.

So, since 2.7 x 1.86 = 5.022, we can establish that the equivalent cost at current prices of said building would have been $ 5,022,000.

6 0

3 years ago

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budg

Sati [7]

Answer:

Bramble Corporation

The difference between cash receipts and cash disbursements for December would be:

= $71,000

Explanation:

a) Data and Calculations:

Balance Sheet October 31

Assets Cash $ 21,400

Accounts receivable 71,400

Merchandise inventory 156,800

Property, plant and equipment,

net of $573,400 accumulated

depreciation 1,095,400

Total assets $ 1,345,000

Liabilities and Stockholders' Equity

Accounts payable $ 255,400

Common stock 821,400

Retained earnings 268,200

Total liabilities and

stockholders' equity $ 1,345,000

November December January

Budgeted sales $320,000 $300,000 $290,000

Cash Collections:

55% month of sale 176,000 165,000 159,500

45% following month 71,400 144,000 135,000

Total collections $247,400 $309,000 $294,500

Cost of goods sold $224,000 $210,000 $203,000

= (70% of Sales for the month)

Ending Inventory 147,000 142,100

Goods available $371,000 $352,000

Beginning Inventory 156,800 147,000 142,100

Purchases $214,200 $205,000

Cash disbursements:

Payment to suppliers 255,400 214,200 205,000

Other monthly exp. 23,800 23,800

Total disbursements $279,200 $238,000

Comparison of Cash receipts with Cash disbursements:

November December

Cash receipts $247,400 $309,000

Cash disbursements $279,200 $238,000

Difference ($31,800) $71,000

8 0

3 years ago

Fallsview Glatt Kosher Caterers ran a business that provided travel packages, including food, entertainment, and lectures on rel

inessss [21]

Answer: The Contract is valid.

Explanation:

Under the UCC’s Statute of Frauds, transactions above $500 for goods cannot be made orally alone and have to be written in writing as well. This is the law that Rosenfield relied on.

However, Fallsview can argue that the Passover Retreat is not a Good, but rather a Service in which case it does not fall under the Statute.

The main bone of contention thereby becomes, if indeed it is a service or a good.

If it is a Hybrid of both, then the Court needs to decide if the services outweigh the goods involved.

From the text we see that the following were included in the package, food, entertainment, and lectures on religious subjects.

Food is the only good there and is outweighed by Entertainment and lectures on religious subjects.

As such, the contract is valid as it is for more service than good.

4 0

3 years ago

Read 2 more answers

The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company's desired rate of

kirill [66]

Answer:

The present value index is 0.91 which is less than 1. So, the investment should not be accepted.

Explanation:

Present Value Index : It shows the ratio between the sum of present value of all years cash inflows after applying the discount rate and initial investment.

In mathematically,

Present value index = Sum of present value of all years cash flows with discount rate ÷ Initial Investment

where,

Present value = Net cash flow × Discount rate

So,

Year 1 = $180,000 × 0.909 = $163,620

Year 2 = $120,000 × 0.826 = $99,120

Year 3 = $100,000 × 0.751 = $75,100

Year 4 = $90,000 × 0.683 = $61,470

Year 5 = $90,000 × 0.621 = $55,890

Now, Sum all the yearly cash inflows which equals to

= $163,620 + $99,120 + $75,100 + $61,470 + $55,890

= $455,200

So, the present value index = $455,200 ÷ $500,000 = 0.91

Hence, the present value index is 0.91 which is less than 1. So, the investment should not be accepted.

5 0

3 years ago

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an ela

brilliants [131]

Answer:

Becton Labs, Inc.

1. Direct materials:

a. Price variance

= $20,600 Favorable

Quantity variance

= $1,890 Unfavorable

b. The company can sign the contract provided it is made clear to the new supplier that price variations would not be welcome shortly after signing the contract, but will depend on the market realities.

2. Direct labor:

a. Direct labor rate and efficiency variances:

Direct labor rate variance

= $3,200 Favorable

Efficiency variance

= $8,160 Unfavorable

b. I would not recommend that the new labor mix be continued. The old mix may be working better because the labor efficiency cost increased with the new mix labor mix.

3. The variable overhead rate and efficiency variances:

Variable overhead rate variance

= $5,200 Favorable

Variable overhead efficiency variance

= $2,380 Unfavorable

Explanation:

a) Data and Calculations:

Standard Costs for 1 Unit of Fludex:

Standard Standard Standard Cost

Quantity or Hours Price or Rate

Direct materials 2.40 ounces $27.00 per ounce $64.80

Direct labor 0.60 hours $12.00 per hour 7.20

Variable manufacturing

overhead 0.60 hours $3.50 per hour 2.10

Total standard cost per unit $74.10

Activities recorded during November:

a. Materials purchased = 13,000 ounces at $330,300

Each ounce = $25.41 (330,300/13,000)

b. Materials used for production = 10,150 ounces (13,000 - 2,850)

Standard materials = 4,200 * 2.40 = 10,080 ounces

c. Direct labor hours = 20 * 160 = 3,200 hours

Standard labor hours = 0.60 * 4,200 = 2,520

Average labor rate = $11.00 per hour

Direct labor costs = $35,200 ($11.00 * 3,200)

d. Standard variable overhead = $11,200 (3,200 *$3.50)

Actual overhead incurred = $6,000

Actual overhead rate = $1.43 ($6,000/4,200)

e. Units produced = 4,200

1. Direct materials:

a. Price variance = (Actual price - standard price)* Actual units

= ($25.41 - $27.00)13,000 = $20,600 F

Quantity variance = (Actual quantity - Standard quantity) Standard Cost

= (10,150 - 10,080) * $27.00

= $1,890 U

b. The company can sign the contract provided it is made clear to the new supplier that price variations would not be welcome shortly after signing the contract, but will depend on the market realities.

2. Direct labor:

a. Direct labor rate and efficiency variances:

Direct labor rate variance = (Actual rate - Standard rate) * Actual hours

= ($11 - $12) * 3,200 = $3,200 Favorable

Efficiency variance = (Actual hours - Standard hours) * Standard rate

= (3,200 - 2,520) * $12

= $8,160 Unfavorable

b. I would not recommend that the new labor mix be continued. The old may be working better because the labor efficiency cost increased.

3. The variable overhead rate and efficiency variances:

Variable overhead rate variance = Actual costs − (AH × SR)

= $6,000 - (3,200 * $3.50)

= $6,000 - $11,200

= $5,200 Favorable

Variable overhead efficiency variance = (AH − SH) × SR

= (3,200 - 2,520) * $3.50

= $2,380 Unfavorable

3 0

3 years ago