BUSINESS COLLEGE

Garcia Co. sells snowboards. Each snowboard requires direct materials of $105, direct labor of $35, and variable overhead of $50. The company expects fixed overhead costs of $645,000 and fixed selling and administrative costs of $111,000 for the next year. It expects to produce and sell 10,500 snowboards in the next year.Required:
What will be the selling price per unit if Garcia uses a markup of 15% of total cost?

Answers

Answer 1

Answer:

Answer:

Selling price = $301.3

Explanation:

The selling price would be determined by adding the total unit cost to the mark- up.

Mark up is the proportion of cost that is to be earned as profit.

Selling price = Total unit cost + Profit

Profit = 25% × unit cost

Selling price = Unit cost + Mark-up

Selling price = Unit cost + (15%× unit cost)

Total unit cost =Variable cost + unit fixed cost

Total fixed cost = 645,000 + 111,000 = 756,000

Unit fixed cost = $756,000/10,500 =×72

Total unit cost = 105 + 35 + 50 + 72 = 262

Selling price = 262 + ( 15% + 262) = 301.3

Selling price = $301.3

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A 7X Corp.just paid a dividend of $2.30 per share. The dividend are expected to grow at 23 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 15 percent, what is the price of the stock today?
Investors expect the market rate of return this year to be 14.50%. The expected rate of return on a stock with a beta of 1.2 is currently 17.40%. If the market return this year turns out to be 12.10%, how would you revise your expectation of the rate of return on the stock?
Ben and Jerry were shareholders of Water Ice Inc., an S corp. On Jan. 1, 1998, Ben owned 40 shares and Jerry owned 60 shares. Ben sold his shares to Joe for $10,000 on March 31, 1998. The corp. reported a $50,000 loss at the end of 1998.How much of the loss is allocated to Joe?A. $20,000B. $15,060C. $12,500D. $10,000
Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information or the year is as follows:Activity Cost Driver Amount of DriverMaterials handling $72,000 Number of moves 3,000Engineering 165,000 Number of change orders 10,000Other overhead 280,000 Direct labor hours 50,000Heitger worked on four jobs in July. Data are as follows:Job 13-43 Job 13-44 Job 13-45 Job 13-46Beginning balance $20,300 $19,800 $2,300 $0Direct materials $6,500 $8,900 $12,700 $9,800Direct labor cost $18,000 $20,000 $32,000 $2,400Number of moves 44 52 29 5Number of change orders 30 40 20 20Direct labor hours 900 1,000 1,600 120By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still in process.Required:1. Calculate the activity rates for each of the three overhead activities.2. Prepare job-order cost sheets for each job showing all costs through July 31.3. Calculate the balance in Work in Process on July 31.4. Calculate the cost of goods sold for July.5. What if Job 13-46 required no engineering change orders? What is the new cost of Job 13-46? How would the cost of other jobs be affected?
Nevada Corporation has 64,700 shares of $17 par stock outstanding that has a current market value of $140. If the corporation issues a 5-for-1 stock split, the number of shares outstanding will be:

Cameron Corp. purchased a mine on January 1, 2018, for$530,000, which is estimated to contain 35,000 tons of iron ore. There is no residual value. The business extracted and sold 7,500 tons of ore in 2018 and 10,800 tons of ore in 2019. What is the depletion expense for 2019? (Round any intermediate calculations to two decimal places, and your final answer to the nearestdollar.) A.

$277,062

B.

$252,838

C.

$113,550

D.

$163,512

Answers

Answer:

D.$163,512

Explanation:

Depletion expense is a charge against profits for the use of natural resources.

Depletion rate = cost to purchase resource/ number of units = $530,000/ 35,000 tons = $15.14 per ton

Depletion expense for 2019 = Depletion rate * number of units extracted and sold in 2019 = $15.14 * 10,800 = $163,512

Pharoah, Inc., paid a dividend of $4.25 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 17.0 percent, what is the current value of the stock

Answers

Answer:

The current value of the stock is $3.63

Explanation:

The company's management does not expect to increase its dividend in the foreseeable future. It means that the dividend for this years (to be received after 1 years from today) is also $4.24

Future value (FV): $4.25

Rate: 17%

Present value (PV) = FV/(1+rate)^tenor

= 4.25/(1+17%) = $3.63

Ryan has moved frequently over his life and now lives in Key West, Florida. He works as a bartender and owns a small home. He has spent most of what money he has made and continues to do so. Ryan's brother, Sam, is very different. He finished graduate school and has saved as much as he can over the years. He owns a small business that he operates with his family. He is by no means rich but is certainly middle-class. Who needs long-term care insurance?

Answers

Ryan needs to take care of his expenses. He is not settled yet and frequent relocation to different cities in a short career as a bartender is definitely not efficient.

Sam on the other hand does know how to manage his finances and need not have special attention.

Personal finance management is a quality every individual should imbibe in himself and should inculcate following it in the long run.

Ryan might experience cash crisis sooner if he doesn't start saving from his limited income that he has because in case of emergency he might have to depend upon credits which by far is the worst debt someone can get himself into.

Ryan cannot continue to be a bartender for long age and should think of starting something on his own in which he has expertise. e.g. He can own a small bar in his hometown that gives him much better earnings.

Hence, Ryan needs to get long term care insurance for himself and secure any emergencies that might occur.

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Answer -Ryan

Explanation: Ryan just moved from a city in the USA to Florida and works as a bartender which includes he owns a small home compared to his brother that has a better life than Ryan. he needs the long term care insurance .

The average lead time of a unit of product through a manufacturing station is 18 minutes. The average work in process inventory at this station has been 30 pieces. What is the production rate?a. 3.0 pieces/min
b. 0.33 pieces/min
c. 1.66 pieces/min
d. 0.83 pieces/min

Answers

Answer:

Production rate = 1.66 pieces/min (Approx)

Explanation:

Given:

Average lead time = 18 minutes

Average work in process inventory = 30 pieces

Find:

Production rate

Computation:

Production rate = Average work in process inventory/Average lead time

Production rate = 30/18

Production rate = 1.66 pieces/min (Approx)

What should an adjustment letter focus on?a. Explaining the resolution to the problem b. Preventing a recurrence of the problem c. Communicating compliance d. Blaming the customer Apologizing

Answers

Answer:

The correct answers are letters "A", "B", and "C": Explaining the resolution to the problem; Preventing a recurrence of the problem; Communicating compliance.

Explanation:

Adjustment letters are communications with legal nature from companies to customers who filed a claim. The main purpose of the letter is to politely inform the client that the claim was received, what steps were taken to analyze the situation, what is the final resolution after the study and what will be done as a result. The ultimate goal of the adjustment letter is to keep a good relationship with the customer so they can continue doing business.

Final answer:

An adjustment letter should focus on explaining the resolution to the problem, preventing a recurrence of the issue, communicating compliance, and issuing an apology to the customer.

Explanation:

An adjustment letter should focus on several key elements to ensure effective communication and customer satisfaction. These include:

Explaining the resolution to the problem: The letter should clearly state what actions have been or will be taken to solve the issue. This is to reassure the customer that their issue is being handled properly.
Preventing a recurrence of the problem: The letter should detail the steps that are taken by the business in order not to let the issue occur again in the future, thereby showing concern for customer experience.
Communicating compliance: This involves ensuring that all the procedures, policies and regulatory requirements have been complied with, by apprising the customer about the same in detail.
Apologizing: An important part of an adjustment letter is an apology to the customer for the inconvenience they've experienced. The apology should sound sincere and indicate that the business values the customer.

The focus of the letter should never be blaming the customer. Rather, it should be centered around finding a resolution and preventing the recurrence of the problem.

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A company's balance sheet shows: cash $39,000, accounts receivable $45,000, equipment $80,000, and equity $87,000. What is the amount of liabilities?A. $83,000.B. $251,000.C. $77,000.D. $151,000.E. $164,000.

Answers

Answer:

C. $77,000

Explanation:

Calculation for the amount of liabilities

Using this formula

Amount of liabilities=(Cash+Account receivable +Equipment) -Equity

Let plug in the formula

Amount of liabilities=($39,000+$45,000+$80,000)-$87,000

Amount of liabilities=$164,000-$87,000

Amount of liabilities=$77,000

Therefore the Amount of liabilities will be $77,000

Final answer:

To determine the company's liabilities, you apply the fundamental accounting equation (Assets = Liabilities + Equity). In this case, the total liabilities amount to $77,000.

Explanation:

The amount of liabilities a company has can be determined by a key equation in financial accounting: Assets = Liabilities + Equity. This company's total assets are calculated as follows: cash ($39,000) + accounts receivable ($45,000) + equipment ($80,000) = $164,000. Knowing this and considering that Equity is $87,000, we can rearrange the equation to solve for Liabilities: Liabilities = Assets - Equity, which results in: Liabilities = $164,000 - $87,000 = $77,000. So the answer is C. $77,000.

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