Answer:
Allocated overhead = $704,200
Explanation:
Allocated overhead = overhead absorpton rate × labour hours
Overhead absorption rate = estimated overhead /estimated labour hours
= $( 330,000 + 300,000 + 46,000 + 330,000)/(3000+7000) labour hours
=$100.6 per hour
Overhead to be allocated to Product P99Y= $100.6
× 7000
= $704,200
Allocated overhead = $704,200
Answer:
Dr Lawsuit Expense 305,090
Cr Lawsuit Liability 305,090
Dr Lawsuit Loss 112,720
Cr Lawsuit Liability 112,720
Explanation:
Preparation of Journal entries
Based on the information given we were told that Buchanan had to paid the amount of $305,090 for damages which means that the Journal entry will be:
Dr Lawsuit Expense 305,090
Cr Lawsuit Liability 305,090
Based on the information given we were told that he was considering to establish the amount of $112,720 as a self insurance allowance which means that the Journal entry will be:
Dr Lawsuit Loss 112,720
Cr Lawsuit Liability 112,720
Answer:
Explanation:
Reserve Ratio is the amount of liabilities that are held reserved by the commercial banks. The ratio indicated the amount which the bank has to hold as a reserve. Any amount in access of this ratio can be invested or held in bank reserves.
So in this question, the reserve ratio is 11%, of $132000, which is 14520 dollars. So 117480 dollars are left which can be invested to deposited in the total reserves. So A bank has $132000 in excess reserves and the required reserve ratio is 11%. This means the bank could have $14520 in checkable deposit liabilities and $117480 in total reserves.
All parties in the chain of distribution of a defective product are strictly liable for the injuries caused by that product.
Chain of distribution refers to everyone involved in a transaction of a product from the beginning stages to the end when the consumer has the product. Strict liability is a doctrine that states all parties in the chain of distribution of a defective product are liable for the damages caused by it.
Answer:
Milton Friedman was an economist from the Chicago School who was known mainly for two ideas: the monetarist view of inflation, and his support for free market policies.
Explanation:
As previously explained, Friedman was also a promoter of free market policies, and Reagan was a president that supported free market. Friedman supported lowering taxes to corporations, the wealthy, and the middle class, reducing regulations to businesses, and signing free trade agreements or reducing tariffs.
These were all policies that Reagan supported. He managed to cut taxes and regulations. He was less succesful in promoting free trade, but his successors: George Bush Father, Bill Clinton, and George Bush Son, also supported many of the views that Milton Friedman had.
