BUSINESS COLLEGE

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Fixed Component per Month Variable Component per Job Actual Total for February
Revenue $280 $39,250
Technician wages $8,400 $8,250
Mobile lab operating expenses $4,800 $31 $9,290
Office expenses $2,400 $3 $2,700
Advertising expenses $1,580 $1,650
Insurance $2,870 $2,870
Miscellaneous expenses $970 $1 $425

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $31 per job, and the actual mobile lab operating expenses for February were $9,290. The company expected to work 150 jobs in February, but actually worked 154 jobs.

Required:
Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February.

Answers

Answer 1
Answer:

Answer:

I used an excel spreadsheet since there is not enough room here. I ordered the given data:

                                              Fixed           Variable           Actual Total

Revenue                                                        $280                $39,250

Technician wages                $8,400                                       $8,250

Mobile lab operating exp.   $4,800              $31                   $9,290

Office expenses                   $2,400               $3                   $2,700

Advertising expenses           $1,580                                       $1,650

Insurance                              $2,870                                       $2,870

Miscellaneous expenses        $970                $1                      $425              

The actual results yielded an unfavorable operating income variance. Operating income = $14,065, unfavorable variance = $2,645

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"Which statements are TRUE about variable annuities? I Contributions to the separate account are tax deductible II Contributions to the separate account are not tax deductible III Earnings in the separate account build tax-deferred IV Earnings in the separate account are taxable each year"

Answers

Answer:  II Contributions to the separate account are not tax deductible

III Earnings in the separate account build tax-deferred

Explanation:

Variable Annuities represent an investment vehicle where one puts money in a certain type of investment with the goal being that they will earn an income in retirement which is dependent on how their chosen investment performed therefore making the payout variable.

Contributions to the separate account are not tax deductible. The tax advantage of Variable annuity contracts instead is that the income earned from the annuity gets to build tax-deferred with taxes only applying to them when a withdrawal is made.

If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred

Answers

Answer:

$117,000

Explanation:

Manufacturing overhead is also known as the production overhead. It can be estimated by the adding the variable manufacturing overhead to the fixed manufacturing overhead. Therefore:

Fixed manufacturing overhead is equivalent to the cost of the fixed units (i.e. 15,000 units) = $4*15000 = $60000

Variable manufacturing overhead is equivalent to the cost of the variable units (i.e. 19000 units) = $3*19000 = $57000

Total manufacturing overhead = $60000 + $57000 = $117000

5. The Bureau of Economic Analysis reported that, in real terms, overall consumer spending increased by $345.8 billion in 2015. a. If the marginal propensity to consume is 0.50, by how much will real GDP change in response? Enter your answer in billions of dollars. Change in GDP: $ 172.9 billion b. If there are no changes in autonomous spending other than the increase in consumer spending described in part a, and unplanned inventory investment, I u n p l a n n e d , decreases by $100 billion, what is the change in real GDP? Enter your answer in billions of dollars. Change in GDP: $ billion c. GDP at the end of 2014 was $15,982.3 billion. If GDP were to increase by the amount calculated in part b, what would be the percentage increase in GDP? Round your answer to the nearest hundredth of a percent. Percentage change in GDP: %

Answers

Answer & Explanation:

a. MPC = 0.50; Change in consumption spending = $345.8 billion

According to multiplier formula,

Change in real GDP/ Change in consumption spending = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2

So, Change in GDP = Change in consumption spending*2 = (345.8)*2 = $691.6 billion

Change in GDP = $691.6 billion

b. Change in investment = -$100

According to multiplier formula,

Change in real GDP/ Change in investment = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2

So, Change in GDP = Change in investment*2 = (-100)*2 = -200

So, total change in GDP = 691.6 - 200 = $491.6 billion

Change in real GDP = $491.6 billion

c. Percentage change in real GDP = (Change in Real GDP/GDP at the end of 2014)*100 = (491.6/15,982.3)*100 = 3.08%

Dudley is a manager at the SuperCuts franchise. He has had to fire two employees because they were treating walk-in customers with disdain and thus turning away business. Once those employees were gone, he trained new employees on how to greet customers. Business has been improving and he has realized how important personnel are for a retail business. What role do the personnel play at his SuperCuts franchise?

Answers

Answer:

they are the interface between the brand and the customer

Explanation:

Based on the information provided within the question it can be said that the personnel in SuperCuts are the interface between the brand and the customer. The personnel are the ones that interact on a daily basis with the shoppers and provide all the information that they need regarding the SuperCut's brand in order to generate sales.

The situation that requires a departure from the cost basis of accounting to the lower-of- cost-or-net-realizable-value basis in valuing inventory is necessitated by Select one: a. an increase in selling price. b. a decline in the value of the inventory. c. an increase in the value of the inventory. d. a desire for more profit.

Answers

Answer:

B. A decline in the value of the inventory.

Explanation:

Cost basis accounting: It is a method of calculating the value of inventory on actual cost for tax purposes as the purchase price is adjusted for dividends and return of capital distribution. It uses lower of cost either original cost or current market price. The market price should not be less or more than the net realizable value. Net realizable value is defined as the selling price minus cost of completion. Therefore, the cost basis of accounting to the lower-of- cost-or-net-realizable-value basis in valuing inventory is necessitated by a decline in the value of the inventory.

Which of the following categories in the portfolio matrix is a market leader and growing fast?a.Star
b.Meteor
c.Cash cow
d.Shiner
e.Top dog

Answers

Answer:

It is Star (B)

Explanation:

Option (a) True. Star is a product with high relative market share in a high growing market . This product is full of potential but require more investment and spending in the areas of advertising,innovation and  market research in order to maintain its market leadership position. Hence, it might be cash neutral at this stage.

In the long-run, it will eventually turns to cash cow in the portfolio if we can sustain its position.

Option(b) Meteor. False. This does not exist in product portfolio matrix.

Option (c) Cash cow. False.

This product has a large relative market share in a stagnating (mature) market, profits and cash flows are expected to be high. Because of the lower growth rate, investments needed should also be low.

Hence, they  typically generate cash in excess of the amount of cash needed to maintain the business and this  ‘excess cash’ is supposed to be ‘milked’ from the Cash Cow for investments in other business units (Stars and Question Marks). Cash Cows ultimately bring balance and stability to a portfolio.

Option (d) Shiner. False .It does not exist

Option (e) Top dog. It is a product with low relative market share in a stagnant market.
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