B) His instrumentality estimates will be lower and his expectancy estimates will remain the same
C) His expectancy estimates for the next quarter will be lower
D) Neither her expectancy nor instrumentality estimates will change
E) His expectancy estimates for the next quarter will be higher
Answer:
Option E
His expectancy estimates for the next quarter will be higher
Explanation:
Will Presley's expectancy rate will be higher in the next sales quarter. This is because he feels that the birth of his new baby is instrumental to his his poor sales performance. Now that he feels that factor has been taken out of the way, he expects that there will be a great increase in the next sales quarter.
Answer:
1. Prepare a schedule of cost of goods manufactured
schedule of cost of goods manufactured
Direct labor cost $83,000
Raw Materials $133,000
Manufacturing overhead $202,000
Add Beginning Work In Process $5,900
Less Ending Work In Process ($20,500)
cost of goods manufactured $403,400
2. Prepare a schedule of cost of goods sold
schedule of cost of goods sold
Begining Finished goods $74,000
Add cost of goods manufactured $403,400
Less Ending Finished goods ($25,100)
Add Under- Applied Overheads $22,000
cost of goods sold $473,300
3. Prepare an income statement.
Sales $658,000
Less cost of goods sold ($473,300)
Gross Profit $184,700
Less Operating Expenses
Selling expenses ($106,000)
Administrative expenses ($46,000)
Net Income $ 32,700
Explanation:
1. Prepare a schedule of cost of goods manufactured
Raw Materials Consumed in Production
Begining Raw Materials Inventory $8,800
Add Raw material purchases $135,000
Less Ending Raw Materials Inventory ($10,800)
Raw Materials Consumed in Production $133,000
schedule of cost of goods manufactured
Direct labor cost $83,000
Raw Materials $133,000
Manufacturing overhead $202,000
Add Beginning Work In Process $5,900
Less Ending Work In Process ($20,500)
cost of goods manufactured $403,400
2. Prepare a schedule of cost of goods sold
Actual manufacturing overhead costs ($224,000) > Applied Manufacturing overhead($202,000)
Under- Applied Overheads
Applied Manufacturing overhead $202,000
Actual manufacturing overhead costs $224,000
Under- Applied Overheads $22,000
schedule of cost of goods sold
Begining Finished goods $74,000
Add cost of goods manufactured $403,400
Less Ending Finished goods ($25,100)
Add Under- Applied Overheads $22,000
cost of goods sold $473,300
3. Prepare an income statement.
Sales $658,000
Less cost of goods sold ($473,300)
Gross Profit $184,700
Less Operating Expenses
Selling expenses ($106,000)
Administrative expenses ($46,000)
Net Income $ 32,700
Answer:
I would issue stock because it is cheaper than borrowing.
Explanation:
First of all, issuing stock does not represent the obligation to pay interest over a long period of time, which can become very expensive if market conditions become adverse. Besides, if the company is small, it probably does not have the most advantageous financial conditions according to the banks, and the interest rate could be relatively high.
Besides, borrowing would mean increasing the liabilities in the financial statements, which could make the company less attractive for future investors.
Issuing stock does have the disadvantage of dilluting control of the company, because now stockholders own a piece of the company and could demand changes in management, and a different company strategy.
Answer:
Total cost under flexible budgeting is $390,850
Explanation:
Calculation of Standard direct labor Cost
Standard Direct labor Cost=Budgeted Labor cost/Budgeted hour of Production
=$136,000 / 8,000
=$17 per hour
Calculation of Standard material Cost
Standard material Cost = Budgeted material Cost /Budgeted hour of Production
=$150,000 / 8,000
=$18.75 per hour
Calculation of Total cost under flexible budgeting
Direct Material Cost = 10,600 * $18.75 = $198,750
Direct Labour Cost= 10,600 * 17 = $180,200
Fixed factory overhead= $11,900
Total budgeted cost $390,850
I believe the answer would be $110,000; $50,000
Answer:
Instructions are below.
Explanation:
We weren't provided with enough information to answer the requirements. But, I will provide the formulas.
1) Contribution margin:
CM= selling price - unitary variable cost
2) contribution margin ratio:
contribution margin ratio= contribution margin / selling price
3) break-even point in units
Break-even point in units= fixed costs/ contribution margin per unit
4) break-even point in sales dollars:
Break-even point (dollars)= fixed costs/ contribution margin ratio