BUSINESS COLLEGE

Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,650 client-visits, but its actual level of activity was 3,590 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per monthVariable element per client-visit Revenue - $39.90 Personnel expenses$35,900 $11.10 Medical supplies 1,900 7.90 Occupancy expenses 8,900 1.90 Administrative expenses 5,900 0.10 Total expenses$52,600 $21.00 The activity variance for administrative expenses in July would be closest to: Multiple Choice $66 F $6 U $66 U $6 F

Answers

Answer 1
Answer:

Answer:

$666 Favorable

Explanation:

The computation of Activity variance is shown below:-

For computing the activity variance first we need to compute the Planning budget and flexible budget

Planning budget = $35,900 + $11.10 × 3,650

= $76,415

Flexible budget = $35,900 + $11.10 × 3,590

= $75,749

Activity variable = Activity variance - Flexible budget  

= $76,415 - $75,749

= $666 Favorable

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Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October: Percent Completed Units Materials Conversion Work in process, October 1 45,000 90 % 65 % Work in process, October 31 25,000 71 % 50 % The department started 386,000 units into production during the month and transferred 406,000 completed units to the next department. Required: Compute the equivalent units of production for October.

Answers

Answer:

The equivalent units of production for October are :

Raw Materials = 423,750

Conversion Costs = 418,500

Explanation:

Calculation of Equivalent Units of Production

1. Raw Materials

Ending Work In Process Inventory (25,000 × 71%)          17,750

Completed and Transferred (406,000 × 100%)           406,000

Equivalent Units of Production for Materials                 423,750

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Completed and Transferred (406,000 × 100%)           406,000

Equivalent Units of Production for Materials                 418,500

A small office building produces NOI of $8,995 per year. We intend to buy the property, if the price is right, and hold it for four years. At that time (EOY 4) we believe we can sell the property for $197,000. If we require an 8% ROA, what is the most we should pay now for this investment?A. The NPV is negative, so reject the investment.
B. The NPV is positive, so invest.
C. The NPV is greater than the NOI, so invest.
D. The GPI is greater than the NOI, so invest.
E. The NPV is greater than the OPX, so invest.

Answers

Answer:

Option B is correct.

The NPV is positive, so invest.

Explanation:

Year Cash Flow

0          -160000

1            8995

2             8995

3             8995

4           205995

$13,512.46

Examine the values for depreciation in 2014 and net fixed assets in 2013 and 2014. What was Fincorp gross investment in plant and equipment during 2014?

Answers

Answer:

This question is not complete.It is missing statement of profit or loss and balance sheet for both years,however find attached missing details.

The value of depreciation as shown by the statement of profit or loss in the year 2013 is $500 while that of 2014 is $520,the increase by $200 in 2014 is due to plant and equipment acquired in the year.

The gross investment in plant and equipment in 2014 is $1320

Explanation:

The gross investment is computed thus

=fixed asset in 2014-fixed asset in 2013+depreciation of 2014

Fixed asset in 2014=$5800

Fixed asset in 2013=$5000

depreciation in 2014=$520

gross investment=$5800-$5000+$520

                             =$1320

Answer:

what do u mean

Explanation:

2014 and 2013, they will both be dif. and its incomplete

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Answers

Answer:

Jaxon Furnishings Company Vs Logging Opportunities in Alaska

Comparison of the benefits of increased wood production to the costs of deforestation:

The company is using the __environmental sustainability___ approach to make this ethical decision.

Explanation:

According to brittanica.com, environmental "sustainability is understood as a form of intergenerational ethics in which the environmental and economic actions taken by present persons do not diminish the opportunities of future persons to enjoy similar levels of wealth, utility, or welfare."

An approach to an ethical decision is sustainable when it considers the long-term benefits and costs associated with the decision, instead of concentrating on the short-term benefits as some business transactions are done.  Short-termism selfishly considers the immediate gains from a transaction.  It lacks a futuristic appetite for the good of future generations.

44,000 shares of common stock outstanding at a market price of $32 a share. The common stock will pay a $1.50 annual dividend and has a dividend growth rate of 3.5 percent. There are 7,500 shares of 9% preferred stock outstanding at a market price of $92 a share. The outstanding bonds mature in 11 years, have a total face value of $825,000, a coupon rate of 6.5 percent, a face value per bond of $1,000, and a market price of $989 each. The tax rate is 35 percent. What is the weight of equity in to be use to calculate the firm's WACC?

Answers

Answer:

The weight of equity in to be use to calculate the firm's WACC is 0.48 or 48%

Explanation:

The weight of equity to be used in firm's WACC computation is market value of equity divided by the sum of market value of equity ,preferred stock and bonds.

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Market value of preferred stock=7,500*$92      =$690,000

Market value of bonds=$825,000*$989/$1000=$815,925.00  

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Suppose that there are 50 firms in a monopolistically competitive industry in country A and 50 firms in the same monopolistically competitive industry in country B. If country A and country B engage in international trade, we expect that the total number of firms in this industry: A. will first decrease, then increase. B. will increase. C. will remain unchanged. D. will decrease.

Answers

Answer:

B. will increase

Explanation:

Assuming that 50 firms in a monopolistically competitive industry in country A and 50 firms in the same monopolistically competitive industry in country B. If country A and country B engage in international trade, we expect that the total number of firms in this industry will increase .Because after trade, assuming firms in both countries make economic (excess) profits, this will attract entry of other firms into the industry in both markets. So, number of firms will increase.The correct answer is Option (B).
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