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7 days ago

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hour

s and its standard cost card per unit is as follows:
Direct materials: 4 pounds at $9 per pound $ 36
Direct labor: 3 hours at $12 per hour 36
Variable overhead: 3 hours at $8 per hour 24
Total standard cost per unit $ 96
The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 33,000 units and incurred the following costs:

a.
Purchased 165,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.

b.
Direct laborers worked 58,000 hours at a rate of $13 per hour.

c.
Total variable manufacturing overhead for the month was $729,060.

1. What raw materials cost would be included in the companyâ€™s planning budget for March?
2. What raw materials cost would be included in the companyâ€™s flexible budget for March?
3.
What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)

4.
What is the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)

5.
If Preble had purchased 173,000 pounds of materials at $7.20 per pound and used 165,000 pounds in production, what would be the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)

6.
If Preble had purchased 173,000 pounds of materials at $7.20 per pound and used 165,000 pounds in production, what would be the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)

7.
What direct labor cost would be included in the companyâ€™s planning budget for March?

8.
What direct labor cost would be included in the companyâ€™s flexible budget for March?

9.
What is the labor rate variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)

10.
What is the labor efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)

11.
What is the labor spending variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)

12.
What variable manufacturing overhead cost would be included in the companyâ€™s planning budget for March?

13.
What variable manufacturing overhead cost would be included in the companyâ€™s flexible budget for March?

14.
What is the variable overhead rate variance for March? (Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)

15.
What is the variable overhead efficiency variance for March? (Do not round intermediate calculations. Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)

Business

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Seaside Developments Inc. has $200,000 of no par value 4% cumulative preferred shares, and 12,000 shares of no par value common

harina [3808]

Response: a. $18,000

Clarification:

Cumulative Preferred Shares are types of shares whereby the company consistently pays Preferred dividends and if it cannot do so in any given year, the unpaid amount accumulates until they can pay it later.

In the question posed, the dividends owed to Preferred Shares are calculated as follows:

= 4% * 200,000

= $8,000

In the first year, $8,000 was allocated for dividends.

= 8,000 - 8,000

= 0

This implies that there are no preferred dividends owed from Year 1.

In Year 2, $18,000 was declared for dividends,

= 18,000 - 8,000

= $8,000

This indicates that in Year 2, the company managed to fulfill its Preferred dividends and still had funds available to distribute to Common Shareholders.

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1 month ago

Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its ex

Mariulka [3825]

Answer:

NPV = negative 37,599

Explanation:

To determine the NPV of the new sewing machine, we subtract the investment from the present value of anticipated cash inflows.

Initial investment = Cost of machine + Training expenses - Salvage value

Initial investment = 2,450,000 + 85,000 - 250,000

Initial investment = 2,285,000

Year DF(9%) Present Value

1 Cash inflow 390,000 x 0.917 $357,798

2 Cash inflow 400,000 x 0.842 $336,672

3 Cash inflow 411,000 x 0.772 $317,367

4 Cash inflow 426,000 x 0.708 $301,789

5 Cash inflow 334,100 x 0.650 $217,077 (434,100 - 100,000)

6 Cash inflow 435,000 x 0.596 $259,376

7 Cash inflow 436,000 x 0.547 $238,507

7 Salvage value 400,000 x 0.547 $218,814

Present Value of cash inflow $2,247,401

Initial investment $2,285,000

NPV ($2,247,401 - $2,285,000) (37,599)

Conclusion: Hillsong should refrain from acquiring the new machine since the NPV is negative.

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2 months ago

Consider an 8% coupon bond selling for $953.10 with three years until maturity making annual coupon payments. the interest rates

arsen [3447]

Answer:

a) YTM = 9.8%

b) realized compound yield = 9.9%

Explanation:

a) PMT is 80

par value FV = 1000

coupon rate = 8%

current price PV = 953.1

years to maturity n = 3

Yield to maturity (YTM) is calculated as $\frac{PMT+(FV-PV)/n}{(FV+PV)/2}$ = $\frac{80+(1000-953.1)/3}{(1000+953.1)/2}$ = 9.8%

b) r2 = 10% = 100%+10% = 1.1

r3 = 12% = 100%+12% = 1.12

To find the realized compound yield, we first need the future value (FV) of the principal and reinvested coupons.

FV = ($80 * 1.10 * 1.12) + ($80 * 1.12) + $1080 = $1268.16

Let a be the rate at which the future value equals $1268.16.

953.1(1+y)³ = $1268.16

(1+y)³ = 1.33

1+y = 1.099

y = 0.099 = 9.9%

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Answer:C) All of these statements are valid.

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Meryl, a training manager, is making a presentation to her company's business leaders. She says meeting the company's five-year

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Answer:

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