A bakery famous for its cupcakes opens its doors at 9 a.m. and allows each customer to purchase up to 2 cupcakes until the day's

Information Provided:

Yearly Demand (D) = 200,000 × 12 = 2,400,000 units

Ordering Cost (S) = $500 each order

Carrying Cost (H) = 20% of the Unit Price = $10 × 20% = $2

Cost per Unit = $10

Calculations:

1) Optimal Order Quantity =

Optimal Order Quantity =

2)

Annual Holding Expense = (34,641 / 2) × 2

Annual Holding Expense = $34,641

3) Orders Each Year = Yearly Demand / Optimal Order Quantity

Orders Each Year = 2,400,000 / 34,641

Orders Each Year = 69.2820646

Orders Each Year = 69 (Approximately)

4) Yearly Transportation Variable Cost = Cost per Unit × Yearly Demand

Yearly Transportation Variable Cost = $0.10 × 2,400,000

Yearly Transportation Variable Cost = $240,000

5) Yearly Clerical Expense = Orders Each Year × Cost Each Order

Yearly Clerical Expense = 69.282 × $500

Yearly Clerical Expense = $34,641

Response:

$5,917,965.66 annually

Clarification:

The sum of $48 million accounts for the total of all annuities after a decade. To determine how much the city of Glendale must allocate each year, we use the present value of annuity equation, outlined below.

P   = PV ×  r / 1 − (1+r)−n

Where P is the payment amount

PV = present value of annuity: $48,000,000.00

r = interest rate: 4 % = 0.04

n: number of periods: 10

P = $48,000,000 x {0.04/(1-(1+0.04)-10}

P = $48,000,000 x {0.04/ 1-0.6755641688)

P =$48,000,000x (0.04/0.3244358312)

P= $48,000,000 x 0.123290951

P= 5,917,965.66 per year

Answer:

The right choice is option (D).

Explanation:

The scenario provides the following information:

Operating Income (EBIT) = $2,500,000

Depreciation Expense = $500,000

Tax rate = 40%

Net investment = $1,000,000

Thus, we can determine BBC's free cash flow using this formula:

= EBIT × (1 - Tax Rate) + Depreciation & Amortization - Net investment

Insert the values into the formula above:

So, the calculation becomes:

= $2,500,000 × (1 - 40%) + $500,000 - $1,000,000

= $1,500,000 + $500,000 - $1,000,000

= $1,000,000

The definitions are accurately paired with their corresponding terms

Explanation:

1. Operating cycle - C. The duration necessary to procure goods or services from suppliers, distribute them to customers, and collect payment from those customers.

2. Accrual basis accounting- B. Record expenses when they are incurred to generate revenue.

3.  Retained Earnings = Beginning Retained Earnings + Net Income - Dividends Declared -  J. This represents the equation from the income statement.

4. Unearned revenue - F. This asset account captures cash paid in advance of incurred expenses.

5. Revenues - Expenses = Net Income - L. This is known as the retained earnings equation.

6. Expenses  - I. Record revenues when received and expenses when they are disbursed.

7. Prepaid Expenses  -  A. To report the longevity of a business over shorter periods.

8. Gains  - E. These are increases in assets or reductions in liabilities resulting from peripheral transactions.

9. None of these are accurate

Answer:

(a) Predetermined overhead rate for the entire plant:

= 30

Applied manufacturing overhead for Job A:

= Total hours of direct labor × Predetermined overhead rate for the plant

= 15 × 30

= 450

Applied manufacturing overhead for Job A:

= Total direct labor hours × Plantwide predetermined overhead rate

= 9 × 30

= 270

(b) Department-specific predetermined overhead rates:

= 30

= 1.2

Applied manufacturing overhead for Job A:

= (Machining machine hours × 30) +  (Assembly direct labor hours × 1.2)

= (11 × 30) +  (10 × 1.2)

= 330 + 12

= 342

Applied manufacturing overhead for Job B:

= (Machining machine hours × 30) +  (Assembly direct labor hours × 1.2)

= (12 × 30) +  (5 × 1.2)

= 360 + 6

= 366