1. Predetermined Overhead Rate ≈ $160.27
2. Hourly Billing Rate for Tara ≈ $245.73
(1) To compute the predetermined overhead rate, we need to calculate the total cost of services (salary plus overhead) for both appraisers and then divide it by the total billable hours.
Total Overhead Costs = $378,210
Total Salary Costs = Salary of Debbie + Salary of Tara = $150,000 + $81,000
= $231,000
Total Billable Hours = Billable hours of Debbie + Billable hours of Tara
= 2,000 + 1,800
= 3,800
Predetermined Overhead Rate = (Total Overhead Costs + Total Salary Costs) / Total Billable Hours
Predetermined Overhead Rate = ($378,210 + $231,000) / 3,800
Predetermined Overhead Rate = $609,210 / 3,800
Predetermined Overhead Rate ≈ $160.27 (rounded to 2 decimal places)
(2) To compute the hourly billing rate for Debbie and Tara, we'll use the formula:
Hourly Billing Rate = (Total Cost of Services + 20% Markup) / Total Billable Hours
For Debbie:
Total Cost of Services for Debbie = Salary of Debbie + (Predetermined Overhead Rate × Billable hours of Debbie)
Total Cost of Services for Debbie = $150,000 + ($160.27 × 2,000)
Total Cost of Services for Debbie = $470,540.00
Hourly Billing Rate for Debbie = ($470,540.00 + 0.20 × $470,540.00) / 2,000
Hourly Billing Rate for Debbie ≈ $282.32 (rounded to 2 decimal places)
For Tara:
Total Cost of Services for Tara = Salary of Tara + (Predetermined Overhead Rate × Billable hours of Tara)
Total Cost of Services for Tara = $81,000 + ($160.27 × 1,800)
Total Cost of Services for Tara = $369,486.00
Hourly Billing Rate for Tara = ($369,486.00 + 0.20 × $369,486.00) / 1,800
Hourly Billing Rate for Tara ≈ $245.73 (rounded to 2 decimal places)
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The predetermined overhead rate is found to be 163.77%, and the hourly billing rates for Debbie and Tara (including a 20% markup) are $237.40 and $142.44, respectively.
To calculate the predetermined overhead rate, we need to divide the total overhead costs by the total salary costs of both appraisers. In this case:
Total Overhead Costs = $378,210
Total Salary Costs = Debbie's Salary ($150,000) + Tara's Salary ($81,000) = $231,000
Predetermined Overhead Rate = Total Overhead Costs / Total Salary Costs = $378,210 / $231,000 = 1.6377 or 163.77%
To calculate the hourly billing rate for each appraiser, you add their salary cost per hour, the overhead cost per hour, and then mark up the total cost by 20%. For Debbie:
Debbie's Salary per Hour = $150,000 / 2,000 hours = $75
Debbie's Overhead per Hour = 1.6377 × $75 = $122.83
Total Cost per Hour for Debbie = $75 + $122.83 = $197.83
Hourly Billing Rate for Debbie (with 20% markup) = Total Cost per Hour × 1.20 = $197.83 × 1.20 = $237.40
Similarly, for Tara:
Tara's Salary per Hour = $81,000 / 1,800 hours = $45
Tara's Overhead per Hour = 1.6377 × $45 = $73.70
Total Cost per Hour for Tara = $45 + $73.70 = $118.70
Hourly Billing Rate for Tara (with 20% markup) = Total Cost per Hour × 1.20 = $118.70 × 1.20 = $142.44
Answer:
Direct Material Price Variance = (Actual price - standard price) x actual quantity purchased
Direct Material Price Variance = ($0.80 - $0.83) x 11400000 = $342000 (F)
Actual Price = $9120000 / 11400000 = $0.80
Direct Material Quantity Variance = (Actual quantity - standard quantity) x Standard Price
Direct Material Quantity Variance = (11400000 - 12480000) x $0.83 = $896400 (F)
Standard Quantity = 1040000 x 12 = 12480000
The direct materials price variance is $342,000 unfavorable and the direct materials quantity variance is $9,351,200 favorable.
To calculate Parker Plastic's direct materials price variance, we need to compare the standard price per unit of direct materials with the actual price per unit. The formula for calculating the price variance is (Actual Price - Standard Price) * Actual Quantity.
Using the given information, the actual price per unit is $0.80 per sq. ft, so the price variance is ($0.80 - $0.83) * 11,400,000 sq. ft = $342,000 U.
To calculate the direct materials quantity variance, we need to compare the standard quantity per unit of direct materials with the actual usage. The formula for calculating the quantity variance is (Actual Quantity - Standard Quantity) * Standard Price.
Using the given information, the actual usage is 11,400,000 sq. ft, so the quantity variance is (11,400,000 - 1,040,000) * $0.83 = $9,351,200 F.
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Answer:
Proportion of Kohl's Corporation financed by non-owners = approximately 61.9%
Explanation:
The formula used for calculating the proportion financed by non-owners is given as:
Proportion of Kohl's Corporation financed by non-owners = liabilities / total assets
As total assets in the annual report of Kohl's Corporation = $13,574
and total liabilities in the annual report of Kohl's Corporation = $ 8,397
therefore by putting the values in the above formula, we get
Proportion of Kohl's Corporation financed by non-owners = 8397 / 13574
Proportion of Kohl's Corporation financed by non-owners = 0.6186
Converting this result to the percentage, we get
Proportion = 0.6186 * 100
Proportion of Kohl's Corporation financed by non-owners = 61.86%
or approximately 61.9%
Answer:
Account Details Debit Credit
Notes Payable $1,100,000
Cash $30,500
Land 250,000
Building 750,000
Supplies (Food) 2,500
Accounts Receivable 95,000
Service Revenue 95,000
Salaries Expense 45,000
Supplies (Food) Exp. 5,000
G 17,000
Totals $1,195,000 $1,195,000
Explanation:
a) Notes Payable
Account Details Debit Credit
Cash $1,100,000
a) Cash Account
Account Details Debit Credit
Notes Payable $1,100,000
Land (b) $250,000
Building (c) 750,000
Salaries (f) 45,000
Supplies (Food) (g) 7,500
G (i) 17,000
Balance c/d $30,500
b) Land
Account Details Debit Credit
Cash $250,000
c) Building
Account Details Debit Credit
Cash $750,000
d) Supplies (Food)
Account Details Debit Credit
Accounts Payable $7,500
Supplies (Food) Expense (h) $5,000
Balance c/d $2,500
Accounts Payable
Account Details Debit Credit
Supplies (d) $7,500
Cash (g) $7,500
e) Accounts Receivable
Account Details Debit Credit
Service Revenue $95,000
Service Revenue
Account Details Debit Credit
Accounts Receivable (e) $95,000
f) Salaries Expense
Account Details Debit Credit
Cash $45,000
h) Supplies (Food) Expense
Account Details Debit Credit
Supplies (Food) $5,000
i) G
Account Details Debit Credit
Cash $17,000
Answer:
$149,000
Explanation:
Data provided as per the question below
Cost of goods sold = $982,000
Inventory = $186,000
Purchase = $945,000
The computation of amount of ending inventory is shown below:-
Cost of goods sold = Inventory + Purchase - Ending inventory
= $982,000 = $186,000 + $945,000 - Ending inventory
= $982,000 = $1,131,000 - Ending inventory
= $149,000
b.Meteor
c.Cash cow
d.Shiner
e.Top dog
Answer:
It is Star (B)
Explanation:
Option (a) True. Star is a product with high relative market share in a high growing market . This product is full of potential but require more investment and spending in the areas of advertising,innovation and market research in order to maintain its market leadership position. Hence, it might be cash neutral at this stage.
In the long-run, it will eventually turns to cash cow in the portfolio if we can sustain its position.
Option(b) Meteor. False. This does not exist in product portfolio matrix.
Option (c) Cash cow. False.
This product has a large relative market share in a stagnating (mature) market, profits and cash flows are expected to be high. Because of the lower growth rate, investments needed should also be low.
Hence, they typically generate cash in excess of the amount of cash needed to maintain the business and this ‘excess cash’ is supposed to be ‘milked’ from the Cash Cow for investments in other business units (Stars and Question Marks). Cash Cows ultimately bring balance and stability to a portfolio.
Option (d) Shiner. False .It does not exist
Option (e) Top dog. It is a product with low relative market share in a stagnant market.
b. first-in, first-out.
c. last-in, first-out.
d. weighted-average.
Answer:
b. first-in, first-out.
Explanation:
Generally, there are three methods for estimating the inventory shown below:
1. First-in-first, the company is selling the old products in this way than the new ones, which means first selling the old products and then selling the new ones
2. Weighted average method: Weighted cost is measured by considering the total revenue and total purchase
3. Last-in-first-out: Contrary to the first-in-first-out process, the first sale of new goods, then selling of old goods.
4. Base stock: The process by which the orders of the consumer are fulfilled by holding the less inventory
In the FIFO method, the highest ended inventory results in the lower cost of goods sold at the highest net profits.
In a period of rising prices, the first-in, first-out (FIFO) inventory method gives the highest reported net income because it records the oldest, less costly inventory as cost of goods sold, leaving the more expensive recent inventory on hand.
The inventory method which tends to give the highest reported net income in a period of rising prices is first-in, first-out (FIFO). The FIFO method assumes that the earliest goods purchased are the first to be sold. During a period of rising prices, the oldest inventory, which cost less, is recorded as cost of goods sold, leaving the newer, more costly inventory on hand. As a result, the cost of goods sold (an expense) would be lower, and, therefore, net income would be higher. Contrarily, the Last-in, first-out (LIFO) method would tend to show a lower net income in a period of rising prices because the more expensive recent inventory would be recorded as cost of goods sold first.
Similarly, the base stock and weighted-average methods may not reflect the highest net income in a period of rising prices as they take different approaches in calculating inventory and cost of goods sold.
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