BUSINESS COLLEGE

Wellington Recycling recycles newsprint, cardboard, and so forth, into received packaging materials. For the coming year, Wellington estimates total manufacturing overhead to be $359,640. The managers are not sure if direct labor hours (estimated to be 9,990) or machine hours (estimated to be 7,982 hours) is the best allocation base to use for allocating manufacturing overhead. Wellington bids for jobs a 31 % markup over total manufacturing cost.After the new fiscal year began, Hollings Paper Supply asked Wellington Recycling to bid for a job that will take 1 ,975 machine hours and t ,700 direct labor hours to produce. The direct labor cost this will be $10 per hour, and the direct materials will total S25,500.

Required:
Compute the total job cost and price if Wellington decided to use direct labor hours as the manufacturing overhead allocation base for the year.

Answers

Answer 1
Answer:

To calculate the total Job Cost, it is required to add direct Materials with direct Labor and applied overhead.

Computation total job cost

Although when before that first determine the predetermined overhead cost which is

Then = Estimated total manufacturing cost ÷ estimated labor hours

Then = $359,640 ÷ $9,990

After that = $36 per hour

Now the total cost is

  1. Then = Direct material + direct labor + manufacturing overhead
  2. Now, = $25,500 + 1,700 × $10 +  $1,700 × $36
  3. After that = $25,500 + $17,000 + $61,200
  4. Then = $103,700

 Now the bid price is

  1. Then = Job cost - markup profit
  2. Now = $103,700 - $103,700 × 31%
  3. Then = $103,700 - $32,147
  4. Then = $135,847

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Answer 2
Answer:

Answer and Explanation:

The computation is shown below:

But before that first determine the predetermined overhead cost which is

= Estimated total manufacturing cost ÷ estimated labor hours

= $359,640 ÷ $9,990

= $36 per hour

Now the total cost is

= Direct material + direct labor + manufacturing overhead

= $25,500 + 1,700 × $10 +  $1,700 × $36

= $25,500 + $17,000 + $61,200

= $103,700

Now the bid price is

= Job cost - markup profit

= $103,700 - $103,700 × 31%

= $103,700 - $32,147

= $135,847

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Identify which of the objectives of business writing is not being met in the following message. I see that there appears to be an absolutely unfamiliar potential client requesting to converse with you in the upcoming afternoon interval. Would you prefer that I reject his request because you are already experiencing an overload of professional work demands?

Answers

Explanation:

There is no clear purposeful in the business writing above.

For it to be a message that effectively communicates the main information that you want to transmit, it is important that the message is written in the most objective and accurate way possible, so that there is no communication noise and so that the message reaches the receiver and the message is understood. central purpose of the message effectively.

Present value with periodic rates. Sam​ Hinds, a local​ dentist, is going to remodel the dental reception area and add two new workstations. He has contacted​ A-Dec, and the new equipment and cabinetry will cost ​$25 comma 000. The purchase will be financed with an interest rate of 10​% loan over 6 years. What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year) and monthly payments ​(12 per​ year)? Compare the annual cash outflows of the two payments. Why does the monthly payment plan have less total cash outflow each​ year? What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year)?

Answers

Answer:

What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year)

  • $2,820.62

and monthly payments ​(12 per​ year)?

  • $531.13

Compare the annual cash outflows of the two payments.

  • total semiannual payments per year = $2,820.62 x 2 = $5,641.24
  • total monthly payments per year = $531.13 x 12 = $6,373.56

Why does the monthly payment plan have less total cash outflow each​ year?

  • The monthly payment has a higher total cash outflow ($6,373.56 higher than $5,641.24), it is not lower. Since the compounding period is shorter, more interest is charged.

What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year)?

  • $2,820.62 x 12 payments = $33,847.44 ($25,000 principal and $8,847.44 interests)

Explanation:

cabinet cost $25,000

interest rate 10%

we can use the present value of an annuity formula to determine the monthly payment:

present value = $25,000

PV annuity factor (5%, 12 periods) = 8.86325

payment = PV / annuity factor = $25,000 / 8.8633 = $2,820.62

present value = $25,000

PV annuity factor (0.8333%, 60 periods) = 47.06973

payment = PV / annuity factor = $25,000 / 47.06973 = $531.13

The monthly payment plan has less total cash outflow each year compared to the semiannual payment plan because the principal loan amount is reduced more quickly, leading to less accrued interest over the lifetime of the loan. Using the loan amortization formula and plugging in the appropriate values will yield the payment amounts for each plan.

The subject at hand relates toloan amortization, specificially the calculation of periodic payments for a loan when the interest is compounded semi-annually or monthly.

Let us denote the principal loan amount as P, the interest rate as r, and the number of payments as n.

For semiannual payments, n equals the number of years multiplied by 2, and for monthly payments, n equals the number of years multiplied by 12. Also, the interest rate needs to be divided by the number of periods per year. Therefore, the semiannual interest rate is r/2, and the monthly interest rate is r/12.

The formula to calculate the periodic payment amount, A, is: A = P * [r(1 + r)^n] / [(1 + r)^n - 1].

In this case, the loan amount, P, is $25,000, and the interest rate, r, is 0.1 or 10%. Hence, for example, the semiannual loan payments can be calculated using the formula as follows: Substituting n = 6 * 2 and r = 0.1/2 into the formula, we will get the payment amount for semiannual payments.

The annual cash outflows for the two payment plans are not the same because the principal amount is reduced more quickly in the plan with more frequent payments (monthly), thus accumulating less interest over the life of the loan. The total cash outflow over the loan period would be less for the monthly payment plan compared to the semiannual payment plan.

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If one of your firm's customers is "stretching" its accounts payable, this may be a nuisance but it does not represent a real financial cost to your firm as long as the customer periodically pays off its entire balance. A. True B. False .

Answers

Answer:

False

Explanation:

If one of your firm's customers is "stretching" its accounts payable, this may be a nuisance but it does not represent a real financial cost to your firm as long as the customer periodically pays off its entire balance.

What would the net value of a long straddle position be if the stock price at expiration is $35?

Answers

Answer:

$1.15

Explanation:

Calculation for the net value of a long straddle position

Using this formula

Net value of a long Straddle=(Stock price at expiration-Strike price)-Put option selling-Call option selling

Let plug in the formula

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A client has an options account that is qualified to buy options and sell covered calls. The client calls his representative, telling him that he wants to sell naked calls in the account. Which statement is TRUE about this?A. The representative can do this without taking any further action
B. The "Special Statement for Uncovered Options Writers" must be provided before executing the transaction
C. The "Options Disclosure Document" must be provided before executing the transaction
D. The representative must open a separate options account for the customer and segregate the resulting naked options positions

Answers

Answer:

The correct answer is letter "B": The "Special Statement for Uncovered Options Writers" must be provided before executing the transaction.

Explanation:

A naked call is a type of strategy options traders use when writing a call option without owning the underlying assets. For this to be possible, the trader must sign an options agreement and the Registered Options Principal (ROP) must approve the account so the trader can write naked options.  

Before proceeding the "Special Statement for Uncovered Options Writers" must be provided.

New York Times Co. (NYT) recently earned a profit of $1.21 per share and has a P/E ratio of 19.59. The dividend has been growing at a 7.25 percent rate over the past six years. If this growth rate continues, what would be the stock price in five years if the P/E ratio remained unchanged

Answers

Answer:

If the growth rate continues, the stock in 5years if the P/E ratio remains unchanged will be $33.64.

Explanation:

Given

Profit/share (Eo) = $1.21

Percentage growth (g) =7.25%

Number of years = 5 years

To find stock price, we use the formula:

P_n = [P/E] * E_0 * [1 + g]^n;

So, we have

P_5 = 19.59 * $1.21 * [1 + 0.0725]^5

= $33.64

Therefore, If the growth rate continues, the stock in 5years if the P/E ratio remains unchanged will be $33.64.
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