Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell’s total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminum Total Cost Assembly 500 mach. hours 500 mach. hours $45,000 Inspections 350 150 $75,000 2,100 labor hours 1,900 labor hours Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much "assembly cost is assigned to titanium racquets"?

Answers

Answer 1

Answer:

Answer:

$22,500

Explanation:

Activity based costing (ABC) is a method of cast allocation where the overheads and other indirect costs are allocated to products and services based on the volume of different activities consumed by each product.

The total cost pool is divided by the defined cost drivers to determine the cost driver rate.

Titanium Hours Aluminium hours Cost

Assembly 500 500 1000 45000

Inspection 350 150 500 75000

Labor hours 2100 1900 4000 120000

Cost per labor hour = 120000/4000= 30

Using activity based costing , portion of the assembly cost assigned to titanium Racquets = Titanium assembly hours / total assembly hours * total assembly cost

500/1000*45000

=22,500

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Western Company is preparing a cash budget for June. The company has $11,000 cash at the beginning of June and anticipates $31,000 in cash receipts and $36,500 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must: Borrow $10,000. Borrow $4,500. Repay $5,500. Repay $4,500. Borrow $5,500.
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Harwinton, Inc. anticipates sales of 56,000 units, 54,000 units, 57,000 units and 56,000 units in July, August, September and October, respectively. Company policy is to maintain an ending finished-goods inventory equal to 50% of the following month's sales. On the basis of this information, how many units would the company plan to produce in September?
The total product curve: a. will become flatter as output increases if there are diminishing returns to the variable input. b. will be downward-sloping if there are diminishing returns to the variable input. c. shows the relation between output and the quantity of a variable input for varying levels of the fixed input. d. will become horizontal when the marginal product of the variable input is constant.

Retirement savingsA couple thinking about retirement decides to put aside $3,000 each year in a savings plan that earns 8% interest. In 5 years, they will receive a gift of $10,000 that also can be invested.

a. How much money will they have accumulated 30 years from now?

b. If the goal is to retire with $800,000 savings, how much extra do they need to save every year?

Answers

Answer:

a. $408,334.39

b. $3,457.40

Explanation:

r = rate per period = 8% = 0.08

P = Initial Value of Gift = $10,000

t = time = 30 - 5 = 25, As received after 5 years.

$A = P (1 + r)^(t)$

$A = $10,000 (1 + 0.08)^(25)$

$A = $10,000 x 1.08^(25)$

A = $10,000 x 6.8485

A = $68,484.75

$FV of annuity = P [((1 + r)^(n) - 1)/(r) ]$

P = Periodic Payment = $3,000

n = number of periods = 30

$FV of annuity = 3,000 [((1 + 0.08)^(30) - 1)/(0.08) ]$

$FV of annuity = 3,000 [((1.08)^(30) - 1)/(0.08) ]$

$FV of annuity = 3,000 [\frac{10.0627 - 1} {0.08} ]$

$FV of annuity = 3,000 [\frac{9.0627} {0.08} ]$

FV of annuity = $3,000 x 113.2832

FV of annuity = $339,849.63

Accumulated value of money can be calculated as follows;

$68,484.75 + $339,849.63

$408,334.39

If they wish to retire with $800,000 savings, they need to save additional amount of money every year to provide additional amount of money, as follows;

$800,000 - $68,484.75

$731,515.24

The extra annual savings can be calculated as follows;

$731,515.24 = P [((1 + 0.08)^(30) - 1 )/(0.08) ]$

$731,515.24 = P x 113.28

Divide the above equation by 113.28 we get;

$P = (731,515.24)/(113.28)$

P = $6,457.40

They are already paying $3,000, So the extra saving they need make every year is calculated as follows;

$6,457.40 - $3,000

$3,457.40

The Talley Corporation had taxable operating income of $495,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $40,000, (2) dividends received of $20,000, and (3) dividends paid of $25,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt. What is the firm’s taxable income? Round your answer to the nearest dollar.

Answers

Answer: $465,000

Explanation:

To calculate the Taxable income we would have to adjust the figure for dividends received as well as interest.

Now, 50% of dividends received are taxable so let's adjust for that first,

= 20,000 * 0.5

= $10,000

$10,000 of dividends are taxable.

To calculate the Taxable income we have to use the following formula,

Taxable income = Income after operating Costs - Interest Charges + Taxable dividends

= 495,000 - 40,000 + 10,000

= $465,000

That Taxable income is therefore $465,000

Note: The dividends paid are not included here because they are taxable and already included in the Taxable operating income so including it again would amount to Double Counting.

If you need any clarification do react or comment.

Answer: Firm's taxable income = $465,000

Explanation:

GIVEN the following :

Taxable operating income = $495,000

Dividend received = $20,000

Interest charges = $40,000

Firm's taxable income =?

NOTE: 50% of dividend received is tax exempt.

Therefore,

0.5 × $20,000 = $10,000

Taxable portion of dividend received = $20,000 - $10,000

Taxable dividend = $10,000

Taxable income = (Taxable operating income + taxable dividend) - interest charges

Taxable income = ( $495,000 + $10,000) - $40,000

Taxable income = $505,000 - $40,000

Firm's taxable income = $465,000

Harriet's Wimsey is a bookstore for people who love mysteries. How would a complete set of P. D. James mystery novels, a first edition copy of The Maltese Falcon, the money in the cash register, and an IOU from a loyal customer who forgot her wallet one day when she came to purchase the newest Dorothy Cannell book be listed on the store's balance sheetA. as owners' equity B. as current liabilities C. as fixed assetsD. as long-term liabilities E. as current assets

Answers

Answer:

E. as current assets

Explanation:

As we know that the

Balance sheet records the total assets, total liabilities and the stockholder equity

Where

The total assets comprises of current assets, tangible assets, and the intangible assets

And, the total liabilities comprises of current liabilities and the long term liabilities

In the given scenario, the purchase of the newest Dorothy Cannell book be listed on the store's balance sheet. So here, the newest Dorothy Cannel book represent the current asset side of the balance sheet

CD is an all equity firm that has 10,000 shares of stock outstanding at a market price of $20 a share. The firm's management has decided to issue $50,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 5 percent.a. What are the earnings per share at the break-even level of earnings before interest and taxes? Ignore taxes.

Answers

Answer:

EPS = $ 2.00

Explanation:

Earning per share: EBIT/outstanding shares

unlevered firm EPS:

oustanding shares: 10,000

Levered firm EPS:

(EBIT - interest)/outstanding shares

where:

Interest_ 50,000 x 5% = 5,000

Shares repurchase: 50,000 / 20 = 2,500

Outstanding shares: 10,000 - 2,500 = 7,500

$\left \{ {{EPS = EBIT/10,000} \atop {EPS = EBIT-5,000/7,500}} \right.$

EBIT/10,000 = (EBIT-5,000)/7,500

(0.75)EBIT = EBIT - 5,000

5,000 / (1-0.75) = EBIT

EBIT = 20,000

EPS: 20,000 / 10,000 = 2.00

A registered representative wishes to give a speech to a group of 35 potential retail clients at a restaurant. The speech is scripted and is a general discussion about investing in securities. Which statement is TRUE?

Answers

Answer:

Prior principal approval must be obtained and a copy of the speech must be retained in your firm's Office of Supervisory Jurisdiction

Explanation:

Because the speech is to be givento 35 attendees, it is under the Retail Communication. Every speech should be honest and of good taste; and the speech must be informational, but far from promotional.

It is not required that the speech content has to be pre-filed with the SEC. A copy must be kept a period of f 3 years for inspection by FINRA examiners. The speech script would be kept on file in the firm's supervisory compliance office that is the Office of Supervisory Jurisdiction.

On October 1, 2018, Hill Company borrows $20,000 from a local bank. The note has an interest rate of 6% and is due in one year. How much interest expense will Hill Company report on its 2018 income statement?