BUSINESS COLLEGE

Listed below are costs found in various organizations.For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product.
1. Direct labor
2. Executive salaries
3. Factory rent
4. Property taxes, factory.
5. Boxes used for packaging detergent produced by the company
6. Salespersons' commissions
7. Supervisor's salary, factory
8. Depreciation, executive autos.
9. Wages of workers assembling computers
10. Insurance, finished goods warehouses
11. Lubricants for production equipment.
12. Advertising costs
13. Microchips used in producing calculators.

Answers

Answer 1
Answer:

The following are the costs incurred and their types:

  • 1. Direct labor - Fixed - manufacturing cost
  • 2. Executive salaries - Fixed - administrative cost
  • 3. Factory rent - Fixed - administrative cost
  • 4. Property taxes, factory - Fixed - administrative cost
  • 5. Boxes used for packaging detergent produced by the company - Variable - manufacturing cost
  • 6. Salespersons' commissions - Variable - selling cost  
  • 7. Supervisor's salary, factory - Fixed - administrative cost
  • 8. Depreciation, executive autos - Variable -  
  • 9. Wages of workers assembling computers - Variable - administrative cost
  • 10. Insurance, finished goods warehouses - Variable - administrative cost
  • 11. Lubricants for production equipment - Variable - administrative cost
  • 12. Advertising costs - Variable - selling cost  
  • 13. Microchips used in producing calculators - Variable - manufacturing cost

Related Questions

Suppose that Spain and Germany both produce jeans and shoes. Spain's opportunity cost of producing a pair of shoes is 3 pairs of jeans while Germany's opportunity cost of producing a pair of shoes is 11 pairs of jeans.By comparing the opportunity cost of producing shoes in the two countries, you can tell that ------- has a comparative advantage in the production of shoes and ------ has a comparative advantage in the production of jeans.Suppose that Spain and Germany consider trading shoes and jeans with each other. Spain can gain from specialization and trade as long as it receives more than ------ of jeans for each pair of shoes it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than--------- of shoes for each pair of jeans it exports to Spain.Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of jeans) would allow both Germany and Spain to gain from trade?4 pairs of jeans per pair of shoes, 1 pair of jeans per pair of shoes, 6 pairs of jeans per pair of shoes, 2 pairs of jeans per pair of shoes
Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Product 1 Product 2 Product 3 Cost $ 40 $ 110 $ 70 Selling price 100 180 130 Costs to sell 6 80 30
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Suppose that there are two goods, X and Y, that are competing for dominance in a market with network externalities. Furthermore, suppose that the market has chosen good X even though it is inferior to good Y and that the net benefits of switching from X to Y are $20 while the costs of switching are $30. If the market stays with good X, then __________________ has occurred. If the costs of switching were to fall to $15 and the market still stays with good X then ___________________________.
During 2019, Ocean Consulting had the following transactions with it clients (customers): On February 1, 2019, the company received cash of $5,500 from clients in payment of their account balances as of December 31, 2018. On November 1, 2019, the company received $2,500 cash as payments in advance for services to be performed in 2020. The company received a total of $15,500 in cash for services that were performed during 2019. The company sent bills totaling $4,500 to clients for services performed during 2019; this amount was unpaid as December 31, 2019.As a result of these transactions during 2019, the firm's stockholders' equity will:__________

The future of cities in the United States and in other countries will be determined by their ability to benefit from the _________________ and to minimize or counterbalance the ______________________.

Answers

Answer:

The correct answer is letter "B": Economies of agglomeration; corresponding diseconomies.

Explanation:

Economies of agglomeration refer to a type of economy in which companies are located one close to another to take advantage of their core competencies. This economic structure typically helps businesses to reduce relocation and delivery costs increasing their profits but in some other cases, the costs could increase if some of the firms lost their economies of scale.

Thus, metropolises in the U.S. must find ways to boost the benefit of economies of agglomeration minimizing the negative effects of the diseconomies of scale in which some firms might fall.

At the end of business on September 1, the total displayed on the cash register tape shows $1,059 of cash sales for the day. However, when the clerk and the supervisor count the cash in the register, the count reveals that $1,050 was actually collected from customers. Required:
Write down the journal entry.

Answers

Answer and Explanation:

The journal entry is shown below:

Cash $1,050  

Cash short and over $9  

      Sales revenue  $1,059

(Being the cash collection is recorded)

Here we debited the cash as it increased the assets and credited the sales revenue as it also increased the revenue and the difference is debited to cash short and over

On January 1, 20X8, Peta Company acquired 85 percent of Star Company's common stock for $100,000 cash. The fair value of the noncontrolling interest was determined to be 15 percent of the book value of Star at that date. What portion of the retained earnings reported in the consolidated balance sheet prepared immediately after the business combination is assigned to the noncontrolling interest

Answers

Answer:

15 percent

Explanation:

The maximum total interest in any company is 100%. Since 85% of the common stock of Star Company was acquired by Peta Company, Peta Company is automatically the parent company to Star Company no matter the amount of cash its paid for the acquisition while the remaining 15% will automatically be classified as non-controlling interest.  

Therefore, noncontrolling interest can be calculated as follows:

Noncontrolling interest = Total interest - Peta company's interest

                                        = 100% - 85% = 15%

Therefore, 15 percent is the portion of the retained earnings reported in the consolidated balance sheet prepared immediately after the business combination that is assigned to the noncontrolling interest. The amount paid for the percentage interest acquisition does matter when profit is been shared between the parent company and the non-controlling interest.

Note:

A parent company is a company that has more than 50 percent of outstanding shares and therefore it is in charge of all decision making of the company. The company it acquired its more than 50 percent outstanding shares now becomes its subsidiary.

Non-controlling interest refers to the ownership of  less than 50 percent of outstanding shares in a company and therefore not in charge of all decision making of the company. It is also referred as the minority interest.

, Inc. retires a $15 million (face value) bond issue when the carrying value of the bonds is $13 million, but the market value of the bonds is $16 million. The entry to record the retirement will include: Select one: a. A gain of $2 million b. A loss of $2 million c. A loss of $4 million d. A gain of $4 million e. A loss of $3 million

Answers

Answer:

Loss on bond redemption  = $3 million

Explanation:

Given:

Face value = $15 million

Carrying value = $13 million

Cash paid = $16 million

Find:

Profit / loss

Computation:

Loss on bond redemption  = Carrying value - Cash paid

Loss on bond redemption  = $13 million - $16 million

Loss on bond redemption  = $3 million

The entry to record the retirement will include option E. A loss of $3 million. To understand the calculation see below.

Bond Redemption

We are provided with the information about :

Face value = $15 million

Carrying value = $13 million

Cash paid = $16 million

We need to find profit or loss. The difference between Carrying value and Cash paid is the profit or loss.

Carrying Value - Cash paid

$13 million - $16 million

-$3 million, the answer is negative hence there is loss.

Therefore, the correct option is E. A loss of $3 million.

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When do you need to apply for program completion and review? a couple of weeks before program completion 1-2 semesters before program completion Never, you don’t need to complete any paper work to prepare for program completion one month before program completion

Answers

Answer:1-2 semesters before program completion.

Explanation:Program completion and review are a very necessary aspect and component of successful completion of a program. The standard recommended period for applying for program completion and review is one to two semesters before the program is to be completed. This is necessary in order to give adequate review period and other normally carried out activities before finally Issuing the certificate to the qualified person.

Final answer:

One should typically apply for program completion and review 1-2 semesters before the actual program completion. This allows for sufficient paperwork processing time and error correction.

Explanation:

The timeline for application of program completion and review typically depends on specific rules and guidelines of your institution. Generally, it is advisable to apply for program completion 1-2 semesters before the actual completion of your program. This gives enough time for any required paperwork to be processed and for any issues or errors to be rectified. It also allows your institution to review all your credits and ensure you have met all the necessary criteria to successfully complete your program.

Learn more about program completion here:

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On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $88,000. A total of $4,000 was paid for installation and testing. During the first year, Milton paid $6,000 for insurance on the equipment and another $2,200 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $8,000. During Year 1, the equipment produced 13,000 units. What is the amount of depreciation for Year 1?

Answers

Answer:

The depreciation expense for Year 1 is $9880

Explanation:

The cost of equipment to be recorded in the books is the price at which it was purchased and the cost incurred to bring it to intended use that is the installation cost. Thus, the cost of the equipment in the books will be recorded as,

Equipment = 88000 + 4000 = $84000

The insurance and maintenance are recurring expenses and are not capitalized.

The depreciation rate under units of production method is,

Depreciation rate = (cost - salvage value) / estimated useful life in units

Depreciation rate = (84000 - 8000) / 100000  =  $0.76 per unit

The depreciation expense for Year 1 = 0.76 * 13000 = $9880

Answer:

$10,920

Explanation:

Cost of equipment = List price of equipment + Cost of installation and testing

                     $88,000 + $4,000 = $92,000

Salvage value = $8,000

Depreciation cost of equipment = Cost of equipment - salvage value

              $92,000 - $8,000 = $84,000

Estimated unit of production = 100,000 units

Year 1 units produced = 13,000 units

Depreciation = $84,000 * 13,000 / 100,000

                    = $10,920
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