BUSINESS COLLEGE

Rist Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation estimated that it would incur $255,000 in manufacturing overhead during the year and that it would work 100,000 machine-hours. The Corporation actually worked 105,000 machine-hours and incurred $270,000 in manufacturing overhead costs. By how much was manufacturing overhead underapplied or overapplied for the year? (Round your intermediate calculations to 2 decimal places.)

Answers

Answer 1
Answer:

Answer:

underapplied by 2,250

Explanation:

(Cost\: Of \:Manufacturing \:Overhead)/(Cost \:Driver)= Overhead \:Rate

we will distribute the expected cost of overhead  ovwer the cost driver. In this case, machine hours:

255,000 / 100,000 = 2.55

Then we multiply thew rate by the amount of actual hours:

105,000 x 2.55 = 267,760

We compare with the appleid overhead:

267,760 - 270,000 = -2,250

As the actual overehad was higher than applied overhead the overhead was underapplied

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Nuzum Corporation has two divisions: Division M and Division N. Data from the most recent month appear below: Total Company Division M Division N Sales $557,000 $254,000 $303,000 Variable expenses 144,910 81,280 63,630 Contribution margin 412,090 172,720 239,370 Traceable fixed expenses 273,000 128,000 145,000 Segment margin 139,090 44,720 94,370 Common fixed expenses 94,690 43,180 51,510 Net operating income $ 44,400 $ 1,540 $ 42,860 Management has allocated common fixed expenses to the Divisions based on their sales. The break-even in sales dollars for Division N is closest to:
Esquire Comic Book Company had income before tax of $1,400,000 in 2021 before considering the following material items: Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $380,000. The division generated before-tax income from operations from the beginning of the year through disposal of $580,000. The company incurred restructuring costs of $95,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)

Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $10,000 not due for three years. The interest rate on the note is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

Answers

Canliss Mining Company borrowed $41,006.

To find out how much Canliss Mining Company borrowed, we'll work step by step.

Future Value of $1 (FV): This factor calculates the future value of a present sum after a certain number of periods.

Given that the annual installment payments of $10,000 are not due for three years, we'll find the future value of this annuity.

The FV factor for 7% over three years is approximately 1.225.

So, the future value of the annuity is

10,000 * 1.225 = $12,250

Present Value of $1 (PV): This factor calculates the present value of a future sum. In this case, we want to find out how much the $12,250 due in three years is worth in present terms.

Using the PV factor for 7% over three years, we find it's approximately 0.816.

So, the present value is

12,250 * 0.816 \approx $10,002

This means that Canliss Mining Company borrowed approximately $10,002 from the local bank.

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What are three strategies that you can use to make better financial decisions?

Answers

Investing at a young age so you can either have a heathy amount of money or retire at a young age, try to have people work for you and not work for someone, be smart with your money and use common sense when buying something. Example: “do I really need this though?”
I would say save, invest and start a business

Right Medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 1% of sales. Sales were $15 million and actual warranty expenditures were $20,000 for the first year of selling the product. What amount (if any) should Right report as a liability at the end of the year? (Enter your answers in whole dollars.)

Answers

Answer:

warranty liability $ 130,000

Explanation:

the warrant liability will de clared based on sales volume and the expected warranty expenditures associate with sales.

This is done to match the expenses of the warranty with the period on which are generated. If don't further period will have expenditures which related to sales of prior periods.

Having said that we proceeds:

warranty liability:

15,000,000 x 1% =         150,000

warranty expenditures (20,000)

                       net          130,000

the company still spect this sales will generate additioal warranty expenditres for 130,000 dollars. this is a liability.

Final answer:

Based on an expected 1% of sales as warranty costs, Right Medical should report a warranty liability of $130,000 at year-end, subtracting the actual costs ($20,000) from the expected costs ($150,000).

Explanation:

The question revolves around estimating the warranty liability that Right Medical should report at the end of the year after introducing a new implant with a five-year warranty. Based on industry standards, warranty costs are expected to be 1% of sales. The company did indeed incur actual warranty expenditures of $20,000, however, the expectation based on sales would be $150,000 (1% of $15 million). Since the actual expenditures are lower than expected, the company should report the difference between the expected cost (calculated as 1% of sales) and the actual cost as the warranty liability. Therefore, Right Medical should report a liability of $150,000 - $20,000 = $130,000 at the end of the year.

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An increase in the interest rate A. increases the percentage yield of holding money. B. decreases the opportunity cos

Answers

Answer:

increases the opportunity cost of holding money

Explanation:

An increase in the interest rate actually increases the opportunity cost of holding money.

The opportunity cost of holding money is the nominal interest rate. Opportunity cost can be referred to as the interest rate that is forgone on alternative assets. So, when interest rate increases, the opportunity cost of holding money also increases.

A company is in its first month of operations. Supplies worth $4,000 were purchased on January 5. At the end of the month supplies worth $3,000 were in hand. What adjusting entry would be made at the end of January?

Answers

Answer:

Adjustying Entry at the end of January

                                                 Dr.        Cr.

Supplies Expense Account  $1,000

Supplies Inventory Account             $1,000

Explanation:

Opening supplies  = 0 (First month of operation)

Purchases on January 5 = $4,000

Supplies on January 31 = $3,000

Closing Inventory = Opening Inventory + Purchase during the month - Expense for the month

$3,000 = $0 + $4,000 - Expense for January

Expense for January = $4,000 - $3,000 = $1,000

Alpha Division had the following information: Average operating asset base in Alpha Division $500,000 Operating income in Alpha Division $60,000 Cost of capital 14% Target return on investment (ROI) 16% Margin for Alpha Division 21% If the asset base is decreased by $120,000, with no other changes, what will Alpha Division's return on investment be? (Note: Round answer to two decimal places.) a. 18.50% b. 15.79% c. 10.50% d. 12.55%

Answers

Answer: Option B

Explanation: As we know that,

ROI=(Operating\ income)/(total\ assets)

where,

Operating income = $60,000

total asset = current asset base - decrease in current asset base

total asset = $500,000 - $120,000

                  = $ 380,000

Now, putting the values into equation we get :-

ROI\:=\:(\$60,000)/(\$380,000)

               = 15.79%

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