Answer:
a) 14,300 units
b)
Materials: 18,400
Conversion: 16,350
Explanation:
physical count of units:
beginning 2,100
transferred-in 16,300
ending (4,100)
transferred-out 14,300
equialent units for w/a:
transferred-out + percentage of completion ending WIP
Materials: 14,300 + 4,100 x 100% = 18,400
Conversion: 14,300 + 4,100 x 50% = 16,350
1. Calculate the percent change in operating income expected.___ %
2. Calculate the operating income expected next year using the percent change in operating income calculated in Requirement 1. $___
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Sales= 5,000 units
Selling price= $75
The unit variable cost= $45
Total fixed cost equals= $49,500
Operating income at 5,000 units sold is $100,500.
Degree of operating leverage= 1.5
Now Head-First expects to increase sales by 10% next year.
1) % Change on income= ?
We know that the degree of operating leverage is calculated by the following formula:
degree of operating leverage= %change in income/ %change in sales
1.5= %change in income/0.10
0.15= %change in income
15%= %change in income
2) Net operating income
Sales= 5,500*75= 412,500
Total variable cost= 5,500*45= (247,500)
Contribution margin= 165,000
Fixed costs= (49,500)
Net operating income= 115,500
Change in income= (115,500 - 100,500)/100,500= 0.1493= 14.93%
Answer:
The correct answer is B: $384,000
Explanation:
Giving the following information:
Blakely charges manufacturing overhead to products by using a predetermined application rate computed based on machine hours.
The following data pertain to the current year:
Budgeted manufacturing overhead: $480,000
Actual manufacturing overhead: $440,000
Budgeted machine hours: 20,000
Actual machine hours: 16,000
First, we need to calculate the manufacturing overhead rate:
manufacturing overhead rate= total estimated manufacturing overhead/ total amount of allocation base
manufacturing overhead rate= 480000/20000= 424 per hour
Allocated manufacturing overhead= overhead rate*actual hours= 24*16000= 384,000
Instructions
a. Prepare the entry to record the factory labor costs for the month of January.
b. Prepare the entry to assign factory labor to production.
(Weygandt, 12/2017, p. 20-31) Weygandt, J. J., Kimmel, P. D., Kieso, D. E. (2017). Accounting Principles, 13th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9781119411017 Always check citation for accuracy before use.
Answer:
a. Date Account Titles and Explanation Debit Credit
Factory labor $90,000
Factory wages payable $76,000
Employer payroll taxes payable $8,000
Employer fringe benefits payable $6,000
b. The entry to assign factory labor to production is the following
Date Account Titles and Explanation Debit Credit
Work in process inventory $76,500
(85% of $90,000)
Manufacturing overhead $13,500
(15% of $90,000)
Factory labor $90,000
Low asset turnover ratio
Low operating margin ratio
Low debt to equity ratio
High debt service coverage ratio
The ratios that indicate a strong capacity for a company are Low debt to equity ratio and High debt service coverage ratio.
Debt service coverage ratio is an example of a coverage ratio. It measures the solvency of a firm. A high ratio indicates greater solvency when compared with a low ratio.
Debt to equity ratio is an example of a debt ratio. A high debt to equity ratio indicates higher financial risk and weaker solvency. Thus, a lower ratio is more desirable.
To learn more about financial ratios, please check: brainly.com/question/14171325
Payoff $
b. What is the promised return on the company's debt? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Promised return %
c. What is the expected return on the company's debt? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Expected return %
Answer:
a. The payoff do bonholders expect to receive in the event of a recession=$83 million
b. The promised return is 0.30
c. The expected return is -16%
Explanation:
a. According to the given data the payoff do bonholders expect to receive in the event of a recession=$83 million
b. In order to calculate the promised return on the company's debt we would have to use the following formula:
promised return=(face value of debt/market value of debt)-1
promised return=($117 million/$90 million)-1
promised return=0.30
c. To calculate the expected return on the company's debt we would have to use the following formula:
expected vale of debt=($117*80%)+($90*20%=
=75.6 million
expected return=(75.6 million/$90 million)-1
expected return=-16%
How does restricting the number of hospitals correct this inefficiency? Explain briefly.
Answer: The answer is provided below
Explanation:
The certificate of need, is a legal document in the United States that is required in many states and federal jurisdictions before proposed expansion, acquisitions, or the creations of healthcare facilities will be allowed.
a. The market inefficiencies which will be eliminated by the certificate of needs laws are that:
The absence of certificate of needs laws will have resulted in an unregulated market competition among the hospitals. This competition could result into medical providers over-investing in medical equipments and facilities. This will lead to an increase in the demand for the equipments which in turn, leads to rise in the equipments costs and the burden caused by the rise in price is shifted to the patients in form of high prices which could lead to exploitation.
b. Restricting the number of hospitals can correct this inefficiency because the laws will help reduce competition among the hospitals which will help reduce demand for healthcare equipments.
This will help in pushing the market toward equilibrium over time whereby healthcare delivery are more affordable to people.