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F. Naz
F. Naz, Chartered Accountant
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Experience:  Experience with chartered accountancy
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Use the following information to answer this question. Moorhouse

Customer Question

Use the following information to answer this question.
Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for
3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided the
following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
Fixed element Variable element
per month per client-visit
Revenue ____-____ $25.10
Personnel expenses $27,100 $7.10
Medical supplies 1,500 4.50
Occupancy expenses 6,000 1.00
Administrative expenses 3,000 0.10
Total expenses $37,600 $12.70
Actual results
for December:
Revenue $96,299
Personnel expenses $51,009
Medical supplies $17,425
Occupancy expenses $9,240
Administrative expenses $3,239
1. The personnel expenses in the planning budget for December would be closest to
A. $53,299.
B. $51,147.
C. $53,370.
D. $51,009.
2. Lyons Company consists of two divisions, A and B. Lyons Company reported a contribution margin of
$50,000 for Division A and had a contribution margin ratio of 30% in Division B, when sales in Division B
were $200,000. Net operating income for the company was $25,000, and traceable fixed expenses were
$40,000. Lyons Company's common fixed expenses were
A. $40,000.
B. $85,000.
C. $70,000.
D. $45,000.
Use the following information to answer this question.
The Adams Company, a merchandising firm, has budgeted its activity for November according to the
following information:
• Sales were at $450,000, all for cash.
• Merchandise inventory on October 31 was $200,000.
• The cash balance on November 1 was $18,000.
• Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.
• Budgeted depreciation for November is $25,000.
• The planned merchandise inventory on November 30 is $230,000.
• The cost of goods sold is 70% of the selling price.
• All purchases are paid for in cash.
3. The budgeted cash disbursements for November are
A. $375,000.
B. $405,000.
C. $530,000.
D. $345,000.
Use the following information to answer this question.
Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard
costs for one bag of Fastgro as follows:
Standard Standard Cost
Quantity per bag
Direct material 20 pounds $8.00
Direct labor 0.1 hours $1.10
Variable overhead 0.1 hours $0.40
The company had no beginning inventories of any kind on January 1. Variable overhead is applied to
production on the basis of standard direct-labor hours. During January, the company recorded the following
activity:
• Production of Fastgro: 4,000 bags
• Direct materials purchased: 85,000 pounds at a cost of $32,300
• Direct-labor worked: 390 hours at a cost of $4,875
• Variable overhead incurred: $1,475
• Inventory of direct materials on January 31: 3,000 pounds
4. The labor rate variance for January is
A. $585 U.
B. $475 F.
C. $475 U.
D. $585 F.
Use the following information to answer this question.
Werber Clinic uses client visits as its measure of activity. During January, the clinic budgeted for 2,700
client visits, but its actual level of activity was 2,730 client visits. The clinic has provided the following data
concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Fixed element Variable element
per month per client-visit
Revenue ___-___ $33.60
Personnel expenses $22,100 $8.70
Medical supplies 1,100 6.60
Occupancy expenses 5,600 1.60
Administrative expenses 3,700 0.40
Total expenses $32,500 $17.30
Actual results
for January:
Revenue $93,408
Personnel expenses $46,251
Medical supplies $19,348
Occupancy expenses $9,508
Administrative expenses $4,772
5. The activity variance for personnel expenses in January would be closest to
A. $261 F.
B. $661 U.
C. $661 F.
D. $261 U.
Use the following information to answer this question.
Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for
3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided the
following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
Fixed element Variable element
per month per client-visit
Revenue ____-____ $25.10
Personnel expenses $27,100 $7.10
Medical supplies 1,500 4.50
Occupancy expenses 6,000 1.00
Administrative expenses 3,000 0.10
Total expenses $37,600 $12.70
Actual results
for December:
Revenue $96,299
Personnel expenses $51,009
Medical supplies $17,425
Occupancy expenses $9,240
Administrative expenses $3,239
6. The revenue variance for December would be closest to
A. $3,429 F.
B. $3,680 U.
C. $3,680 F.
D. $3,429 U.
7. Last year, the House of Orange had sales of $826,650, net operating income of $81,000, and operating
assets of $84,000 at the beginning of the year and $90,000 at the end of the year. What was the company's
turnover rounded to the nearest tenth?
A. 9.2
B. 9.8
C. 10.2
D. 9.5
Submitted: 1 year ago.
Category: Homework
Expert:  F. Naz replied 1 year ago.

MuhammadCustomer: The data seems to be incomplete thanks.
Customer : Use the following information to answer this question.Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided thefollowing data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:Fixed element Variable elementper month per client-visitRevenue ____-____ $25.10Personnel expenses $27,100 $7.10Medical supplies 1,500 4.50Occupancy expenses 6,000 1.00Administrative expenses 3,000 0.10Total expenses $37,600 $12.70Actual resultsfor December:Revenue $96,299Personnel expenses $51,009Medical supplies $17,425Occupancy expenses $9,240Administrative expenses $3,2398. The activity variance for personnel expenses in December would be closest toA. $2,361 F.B. $71 U.C. $2,361 U.D. $71 F.Use the following information to answer this question.Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standardcosts for one bag of Fastgro as follows:Standard Standard CostQuantity per bagDirect material 20 pounds $8.00Direct labor 0.1 hours $1.10Variable overhead 0.1 hours $0.40The company had no beginning inventories of any kind on January 1. Variable overhead is applied toproduction on the basis of standard direct-labor hours. During January, the company recorded the followingactivity:• Production of Fastgro: 4,000 bags• Direct materials purchased: 85,000 pounds at a cost of $32,300• Direct-labor worked: 390 hours at a cost of $4,875• Variable overhead incurred: $1,475• Inventory of direct materials on January 31: 3,000 pounds9. The total variance (both rate and efficiency) for variable overhead for January isA. $40 F.B. $125 F.C. $85 F.D. $100 U.10. Division X of Charter Corporation makes and sells a single product which is used by manufacturers offork lift trucks. Presently it sells 12,000 units per year to outside customers at $24 per unit. The annualcapacity is 20,000 units and the variable cost to make each unit is $16. Division Y of Charter Corporationwould like to buy 10,000 units a year from Division X to use in its products. There would be no costsavings from transferring the units within the company rather than selling them on the outside market.What should be the lowest acceptable transfer price from the perspective of Division X?A. $17.60B. $21.40C. $16.00D. $24.00Use the following information to answer this question.Werber Clinic uses client visits as its measure of activity. During January, the clinic budgeted for 2,700client visits, but its actual level of activity was 2,730 client visits. The clinic has provided the following dataconcerning the formulas used in its budgeting and its actual results for January:Data used in budgeting:Fixed element Variable elementper month per client-visitRevenue ___-___ $33.60Personnel expenses $22,100 $8.70Medical supplies 1,100 6.60Occupancy expenses 5,600 1.60Administrative expenses 3,700 0.40Total expenses $32,500 $17.30Actual resultsfor January:Revenue $93,408Personnel expenses $46,251Medical supplies $19,348Occupancy expenses $9,508Administrative expenses $4,77211. The activity variance for net operating income in January would be closest toA. $2,019 F.B. $489 U.C. $489 F.D. $2,019 U.Use the following information to answer this question.Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided thefollowing data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:Fixed element Variable elementper month per client-visitRevenue ____-____ $25.10Personnel expenses $27,100 $7.10Medical supplies 1,500 4.50Occupancy expenses 6,000 1.00Administrative expenses 3,000 0.10Total expenses $37,600 $12.70Actual resultsfor December:Revenue $96,299Personnel expenses $51,009Medical supplies $17,425Occupancy expenses $9,240Administrative expenses $3,23912. The spending variance for medical supplies in December would be closest toA. $680 U.B. $725 F.C. $680 F.D. $725 U.13. The budget or schedule that provides necessary input data for the direct-labor budget is theA. production budget.B. schedule of cash collections.C. cash budget.D. raw materials purchases budget.14. Super Drive is a computer hard-drive manufacturer. The company's balance sheet for the fiscal yearended on November 30 appears below:Super Drive, Inc.Statement of Financial PositionFor the year ended November 30Assets:Cash $52,000Accounts receivable 150,000Inventory 315,000Property, plant, and equipment 1,000,000Total Assets $1,517,000Liabilities and stockholders' equity:Accounts payable $175,000Common stock 900,000Retained earnings 442,000Total liabilities andstockholders' equity $1,517,000Additional information regarding Super Drive's operations appears below:• Sales are budgeted at $520,000 for December and $500,000 for January.• Collections are expected to be 60% in the month of sale and 40% in the month following sale. There areno bad debts.• 80% of the disk-drive components are purchased in the month prior to the month of the sale, and 20%are purchased in the month of the sale. Purchased components comprise 40% of the cost of goods sold.• Payment for components purchased is made in the month following the purchase.• Assume that the cost of goods sold is 80% of sales.The budgeted cash collections for the upcoming December should beA. $520,000.B. $208,000.C. $462,000.D. $402,000.Use the following information to answer this question.Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standardcosts for one bag of Fastgro as follows:Standard Standard CostQuantity per bagDirect material 20 pounds $8.00Direct labor 0.1 hours $1.10Variable overhead 0.1 hours $0.40The company had no beginning inventories of any kind on January 1. Variable overhead is applied toproduction on the basis of standard direct-labor hours. During January, the company recorded the followingactivity:• Production of Fastgro: 4,000 bags• Direct materials purchased: 85,000 pounds at a cost of $32,300• Direct-labor worked: 390 hours at a cost of $4,875• Variable overhead incurred: $1,475• Inventory of direct materials on January 31: 3,000 pounds15. The materials quantity variance for January isA. $800 U.B. $300 F.C. $750 F.D. $300 U.Use the following information to answer this question.Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standardcosts for one bag of Fastgro as follows:Standard Standard CostQuantity per bagDirect material 20 pounds $8.00Direct labor 0.1 hours $1.10Variable overhead 0.1 hours $0.40The company had no beginning inventories of any kind on January 1. Variable overhead is applied toproduction on the basis of standard direct-labor hours. During January, the company recorded the followingactivity:• Production of Fastgro: 4,000 bags• Direct materials purchased: 85,000 pounds at a cost of $32,300• Direct-labor worked: 390 hours at a cost of $4,875• Variable overhead incurred: $1,475• Inventory of direct materials on January 31: 3,000 pounds16. The materials price variance for January isA. $1,300 U.B. $1,700 F.C. $1,640 U.D. $1,640 F.17. Coles Company, Inc. makes and sells a single product, Product R. Three yards of Material K areneeded to make one unit of Product R. Budgeted production of Product R for the next five months is asfollows:The company wants to maintain monthly ending inventories of Material K equal to 20% of the followingmonth's production needs. On July 31, this requirement wasn't met because only 2,500 yards of Material Kwere on hand. The cost of Material K is $0.85 per yard. The company wants to prepare a Direct MaterialsPurchase Budget for the rest of the year.The total cost of Material K to be purchased in August isAugust14,000unitsSeptember14,500unitsOctober15,500unitsNovember12,600unitsDecember11,900unitsA. $48,200.B. $42,300.C. $33,840.D. $40,970.18. Manufacturing Cycle Efficiency (MCE) is computed asA. Value-Added Time divided by Throughput Time.B. Value-Added Time divided by Delivery Cycle Time.C. Throughput Time divided by Delivery Cycle Time.D. Process Time divided by Delivery Cycle Time.Use the following information to answer this question.The Adams Company, a merchandising firm, has budgeted its activity for November according to thefollowing information:• Sales were at $450,000, all for cash.• Merchandise inventory on October 31 was $200,000.• The cash balance on November 1 was $18,000.• Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.End of exam• Budgeted depreciation for November is $25,000.• The planned merchandise inventory on November 30 is $230,000.• The cost of goods sold is 70% of the selling price.• All purchases are paid for in cash.19. The budgeted net income for November isA. $50,000.B. $75,000.C. $135,000.D. $68,000.20. The LFM Company makes and sells a single product, Product T. Each unit of Product T requires 1.3hours of direct labor at a rate of $9.10 per direct-labor hour. LFM Company needs to prepare a direct-laborbudget for the second quarter of next year. The budgeted direct-labor cost per unit of Product T would beA. $11.83.B. $7.00.C. $10.40.D. $9.10.
Customer : other exam
Customer : Use the following information to answer this question.Financial statements for Larkins Company appear below:Larkins CompanyStatement of Financial PositionDecember 31, Year 2 and Year 1(dollars in thousands)Year 2 Year 1Current assets:Cash and marketable securitiesAccounts receivable, netInventoryPrepaid expensesTotal current assetsNoncurrent assets:Plant & equipment, net$180210130505701,540$180180120505301,480Total assets $2,110 $2,010Current liabilities:Accounts payableAccrued liabilitiesNotes payable, short termTotal current liabilitiesNoncurrent liabilities:Bonds payableTotal liabilitiesStockholders' equity:Preferred stock, $20 par, 10%Common stock, $10 parAdditional paid-in capital--common stockRetained earningsTotal stockholders' equityTotal liabilities & stockholders' equity$10060902504807301201802408401,380$2,110$130601203105008101201802406601,200$2,010Larkins CompanyIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. Themarket price of a share of common stock on December 31, Year 2 was $150.Sales (all on account)Cost of goods soldGross marginSelling and administrative expenseNet operating incomeInterest expenseNet income before taxesIncome taxes (30%)Net income$2,7601,93083033050050450135$3151. Larkins Company's return on common stockholders' equity for Year 2 was closest to:A. 26.9%.B. 24.4%.C. 25.9%.D. 23.5%.2. A weakness of the internal rate of return method for screening investment projects is that itA. implicitly assumes that the company is able to reinvest cash flows from the project at the company's discount rate.B. doesn't take into account all of the cash flows from a project.C. doesn't consider the time value of money.D. implicitly assumes that the company is able to reinvest cash flows from the project at the internal rate of return.Use the following information to answer this question.Financial statements for Larkins Company appear below:Larkins CompanyStatement of Financial PositionDecember 31, Year 2 and Year 1(dollars in thousands)Year 2 Year 1Current assets:Cash and marketable securitiesAccounts receivable, netInventoryPrepaid expensesTotal current assetsNoncurrent assets:Plant & equipment, net$180210130505701,540$180180120505301,480Total assets $2,110 $2,010Current liabilities:Accounts payableAccrued liabilities$10060$13060Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. Themarket price of a share of common stock on December 31, Year 2 was $150.Notes payable, short termTotal current liabilitiesNoncurrent liabilities:Bonds payableTotal liabilitiesStockholders' equity:Preferred stock, $20 par, 10%Common stock, $10 parAdditional paid-in capital--common stockRetained earningsTotal stockholders' equityTotal liabilities & stockholders' equity902504807301201802408401,380$2,1101203105008101201802406601,200$2,010Larkins CompanyIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Sales (all on account)Cost of goods soldGross marginSelling and administrative expenseNet operating incomeInterest expenseNet income before taxesIncome taxes (30%)Net income$2,7601,93083033050050450135$3153. Larkins Company's return on total assets for Year 2 was closest to:A. 13.6%.B. 16.0%.C. 15.3%.D. 17.0%.4. Cridwell Company's selling and administrative expenses for last year totaled $210,000. During the year,the company's prepaid expense account balance increased by $18,000, and accrued liabilities increased by$12,000. Depreciation charges for the year were $24,000. Based on this information, selling andadministrative expenses adjusted to a cash basis under the direct method on the statement of cash flowswould beA. $240,000.B. $228,000.C. $180,000.D. $192,000.5. Kava Inc. manufactures industrial components. One of its products, which is used in the construction ofindustrial air conditioners, is known as K65. Data concerning this product are given below:Per UnitThe above per unit data are based on annual production of 4,000 units of the component. Direct labor canbe considered to be a variable cost. (Source: CMA, adapted)The company has received a special, one-time-only order for 500 units of component K65. There wouldbe no variable selling expense on this special order, and the total fixed manufacturing overhead and fixedselling and administrative expenses of the company wouldn't be affected by the order. Assuming that Kavahas excess capacity and can fill the order without cutting back on the production of any product, what isthe minimum price per unit on the special order below which the company shouldn't go?Selling price $180Direct materials $29Direct labor $5Variable manufacturing overhead $4Fixed manufacturing overhead $21Variable selling expense $2Fixed selling and administrative expense $17A. $38B. $59C. $180D. $786. Ignore income taxes in this problem.) Purvell Company has just acquired a new machine. Data on themachine follow:The company uses straight-line depreciation and a $5,000 salvage value. (The company considers salvagevalue in making depreciation deductions.) Assume cash flows occur uniformly throughout a year.The simple rate of return would be closest toPurchase cost $50,000Annual cost savings $15,000Life of the machine 8 yearsA. 30.0%.B. 17.5%.C. 12.5%.D. 18.75%.7. (Ignore income taxes in this problem.) The following data pertain to an investment:The net present value of the proposed investment isCost of the investment $18,955Life of the project 5 yearsAnnual cost savings $5,000Estimated salvage value $1,000Discount rate 10%A. $(3,430).B. $3,355.C. $0.D. $621.Use the following information to answer this question.Financial statements for Larkins Company appear below:Larkins CompanyStatement of Financial PositionDecember 31, Year 2 and Year 1(dollars in thousands)Year 2 Year 1Current assets:Cash and marketable securitiesAccounts receivable, netInventoryPrepaid expensesTotal current assetsNoncurrent assets:Plant & equipment, net$180210130505701,540$180180120505301,480Total assets $2,110 $2,010Current liabilities:Accounts payableAccrued liabilitiesNotes payable, short termTotal current liabilitiesNoncurrent liabilities:Bonds payableTotal liabilitiesStockholders' equity:Preferred stock, $20 par, 10%Common stock, $10 parAdditional paid-in capital--common stockRetained earningsTotal stockholders' equityTotal liabilities & stockholders' equity$10060902504807301201802408401,380$2,110$130601203105008101201802406601,200$2,010Larkins CompanyIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Sales (all on account)Cost of goods soldGross marginSelling and administrative expenseNet operating incomeInterest expenseNet income before taxes$2,7601,93083033050050450Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. Themarket price of a share of common stock on December 31, Year 2 was $150.Income taxes (30%)Net income135$3158. Larkins Company's dividend payout ratio for Year 2 was closest to:A. 42.9%B. 40.6%C. 24.6%D. 14.8%9. (Ignore income taxes in this problem.) The Keego Company is planning a $200,000 equipmentinvestment that has an estimated five-year life with no estimated salvage value. The company has projectedthe following annual cash flows for the investment:Assuming that the cash inflows occur evenly over the year, the payback period for the investment is_______ years.Year Cash Inflows1 $120,0002 60,0003 40,0004 40,0005 40,000Total $300,000A. 2.50B. 0.75C. 1.67D. 4.91Use the following information to answer this question.Financial statements for Larkins Company appear below:Larkins CompanyStatement of Financial PositionDecember 31, Year 2 and Year 1(dollars in thousands)Year 2 Year 1Current assets:Cash and marketable securitiesAccounts receivable, netInventoryPrepaid expensesTotal current assets$18021013050570$18018012050530Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. Themarket price of a share of common stock on December 31, Year 2 was $150.Noncurrent assets:Plant & equipment, net 1,540 1,480Total assets $2,110 $2,010Current liabilities:Accounts payableAccrued liabilitiesNotes payable, short termTotal current liabilitiesNoncurrent liabilities:Bonds payableTotal liabilitiesStockholders' equity:Preferred stock, $20 par, 10%Common stock, $10 parAdditional paid-in capital--common stockRetained earningsTotal stockholders' equityTotal liabilities & stockholders' equity$10060902504807301201802408401,380$2,110$130601203105008101201802406601,200$2,010Larkins CompanyIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Sales (all on account)Cost of goods soldGross marginSelling and administrative expenseNet operating incomeInterest expenseNet income before taxesIncome taxes (30%)Net income$2,7601,93083033050050450135$31510. Larkins Company's earnings per share of common stock for Year 2 was closest to:A. $17.50.B. $16.83.C. $25.00.D. $7.21.11. Which of the following would be classified as a financing activity on the statement of cash flows?A. Dividends paid to shareholders of the company on the company's common stockB. Dividends received on investments in another company's common stockC. Interest paid on bonds issued by the reporting companyD. Interest received on investments in another company's bonds12. A project profitability index greater than zero for a project indicates thatA. the discount rate is less than the internal rate of return.B. the company should reevaluate its discount rate.C. the project is unattractive and shouldn't be pursued.D. there has been a calculation error.
MuhammadCustomer: Are these two exams and will it be fine to answer it in next 24 hurs, thanks.
Customer : 13. Fonics Corporation is considering the following three competing investment proposals:Using the project profitability index, how would the above investments be ranked (highest to lowest)?Aye Bee CeeInitial investment required $62,000 $74,000 $95,000Net present value $10,000 $8,000 $12,000Internal rate of return 15% 17% 18%A. Aye, Bee, CeeB. Cee, Bee, AyeC. Bee, Cee, AyeD. Aye, Cee, Bee14. VIM Company purchased $100,000 in inventory from its suppliers on credit terms. The company'sacid-test ratio would most likelyA. be unchanged.B. be impossible to determine without more information.C. increase.D. decrease.15. The net present value method assumes that the project's cash flows are reinvested at theA. internal rate of return.B. payback rate of return.C. simple rate of return.D. discount rate used in the net present value calculation.16. Part N19 is used by Malouf Corporation to make one of its products. A total of 7,000 units of this partare produced and used every year. The company's Accounting Department reports the following costs ofproducing the part at this level of activity:An outside supplier has offered to make the part and sell it to the company for $24.50 each. If this offer isaccepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided.Per UnitDirect materials $2.20Direct labor $8.50Variable manufacturing overhead $1.30Supervisor’s salary $5.80Depreciation of special equipment $7.20Allocated general overhead $4.60The special equipment used to make the part was purchased many years ago and has no salvage value orother use. The allocated general overhead represents fixed costs of the entire company, none of whichwould be avoided if the part were purchased instead of produced internally. In addition, the space used tomake part N19 could be used to make more of one of the company's other products, generating anadditional segment margin of $25,000 per year for that product. What would be the impact on thecompany's overall net operating income of buying part N19 from the outside supplier?A. Net operating income would decline by $60,700 per year.B. Net operating income would decline by $10,700 per year.C. Net operating income would increase by $25,000 per year.D. Net operating income would decline by $21,900 per year.17. Which of the following would be considered a "use" of cash for the purpose of constructing a statementof cash flows?A. Selling the company's own common stock to investorsB. Purchasing equipmentC. Issuing long-term debtD. Amortizing a patent18. Centerville Company's debt-to-equity ratio is 0.60 Total assets are $320,000, current assets are$170,000, and working capital is $80,000. Centerville's long-term liabilities must beA. $80,000.B. $90,000.C. $30,000.D. $120,000.19. Degner Inc. has some material that originally cost $19,500. The material has a scrap value of $13,300as is, but if reworked at a cost of $2,100, it could be sold for $14,000. What would be the incrementaleffect on the company's overall profit of reworking and selling the material rather than selling it as is asscrap?A. -$1,400B. $11,900C. -$20,900D. -$7,600Use the following information to answer this question.The most recent balance sheet and income statement of Teramoto Corporation appear below:Comparative Balance SheetEndingBalanceBeginningBalanceAssets:Cash and cash equivalentsAccounts receivableInventoryPlant and equipmentLess accumulated depreciationTotal assets$435373582301$450$355969490286$367End of examLiabilities and stockholders' equityAccounts payableWages payableTaxes payableBonds payableDeferred taxesCommon stockRetained earningsTotal liabilities and stockholders' equity$572115212055261$450$481813202150197$367Income StatementSalesCost of good soldGross marginSelling and administrative expenseNet operating incomeIncome taxesNet income$89358730618911735$8220. The net cash provided by (used by) investing activities for the year wasA. $77.B. ($77).C. ($92).D. $92.
MuhammadCustomer: Can I provide the answer in next 24 hours thanks.
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Customer : This is the complete data below
Customer : Use the following information to answer this question.Financial statements for Larkins Company appear below:Larkins CompanyStatement of Financial PositionDecember 31, Year 2 and Year 1(dollars in thousands)Year 2 Year 1Current assets:Cash and marketable securitiesAccounts receivable, netInventoryPrepaid expensesTotal current assetsNoncurrent assets:Plant & equipment, net$180210130505701,540$180180120505301,480Total assets $2,110 $2,010Current liabilities:Accounts payableAccrued liabilitiesNotes payable, short termTotal current liabilitiesNoncurrent liabilities:Bonds payableTotal liabilitiesStockholders' equity:Preferred stock, $20 par, 10%Common stock, $10 parAdditional paid-in capital--common stockRetained earningsTotal stockholders' equityTotal liabilities & stockholders' equity$10060902504807301201802408401,380$2,110$130601203105008101201802406601,200$2,010Larkins CompanyIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. Themarket price of a share of common stock on December 31, Year 2 was $150.Sales (all on account)Cost of goods soldGross marginSelling and administrative expenseNet operating incomeInterest expenseNet income before taxesIncome taxes (30%)Net income$2,7601,93083033050050450135$3151. Larkins Company's return on common stockholders' equity for Year 2 was closest to:A. 26.9%.B. 24.4%.C. 25.9%.D. 23.5%.2. A weakness of the internal rate of return method for screening investment projects is that itA. implicitly assumes that the company is able to reinvest cash flows from the project at the company's discount rate.B. doesn't take into account all of the cash flows from a project.C. doesn't consider the time value of money.D. implicitly assumes that the company is able to reinvest cash flows from the project at the internal rate of return.Use the following information to answer this question.Financial statements for Larkins Company appear below:Larkins CompanyStatement of Financial PositionDecember 31, Year 2 and Year 1(dollars in thousands)Year 2 Year 1Current assets:Cash and marketable securitiesAccounts receivable, netInventoryPrepaid expensesTotal current assetsNoncurrent assets:Plant & equipment, net$180210130505701,540$180180120505301,480Total assets $2,110 $2,010Current liabilities:Accounts payableAccrued liabilities$10060$13060Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. Themarket price of a share of common stock on December 31, Year 2 was $150.Notes payable, short termTotal current liabilitiesNoncurrent liabilities:Bonds payableTotal liabilitiesStockholders' equity:Preferred stock, $20 par, 10%Common stock, $10 parAdditional paid-in capital--common stockRetained earningsTotal stockholders' equityTotal liabilities & stockholders' equity902504807301201802408401,380$2,1101203105008101201802406601,200$2,010Larkins CompanyIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Sales (all on account)Cost of goods soldGross marginSelling and administrative expenseNet operating incomeInterest expenseNet income before taxesIncome taxes (30%)Net income$2,7601,93083033050050450135$3153. Larkins Company's return on total assets for Year 2 was closest to:A. 13.6%.B. 16.0%.C. 15.3%.D. 17.0%.4. Cridwell Company's selling and administrative expenses for last year totaled $210,000. During the year,the company's prepaid expense account balance increased by $18,000, and accrued liabilities increased by$12,000. Depreciation charges for the year were $24,000. Based on this information, selling andadministrative expenses adjusted to a cash basis under the direct method on the statement of cash flowswould beA. $240,000.B. $228,000.C. $180,000.D. $192,000.5. Kava Inc. manufactures industrial components. One of its products, which is used in the construction ofindustrial air conditioners, is known as K65. Data concerning this product are given below:Per UnitThe above per unit data are based on annual production of 4,000 units of the component. Direct labor canbe considered to be a variable cost. (Source: CMA, adapted)The company has received a special, one-time-only order for 500 units of component K65. There wouldbe no variable selling expense on this special order, and the total fixed manufacturing overhead and fixedselling and administrative expenses of the company wouldn't be affected by the order. Assuming that Kavahas excess capacity and can fill the order without cutting back on the production of any product, what isthe minimum price per unit on the special order below which the company shouldn't go?Selling price $180Direct materials $29Direct labor $5Variable manufacturing overhead $4Fixed manufacturing overhead $21Variable selling expense $2Fixed selling and administrative expense $17A. $38B. $59C. $180D. $786. Ignore income taxes in this problem.) Purvell Company has just acquired a new machine. Data on themachine follow:The company uses straight-line depreciation and a $5,000 salvage value. (The company considers salvagevalue in making depreciation deductions.) Assume cash flows occur uniformly throughout a year.The simple rate of return would be closest toPurchase cost $50,000Annual cost savings $15,000Life of the machine 8 yearsA. 30.0%.B. 17.5%.C. 12.5%.D. 18.75%.7. (Ignore income taxes in this problem.) The following data pertain to an investment:The net present value of the proposed investment isCost of the investment $18,955Life of the project 5 yearsAnnual cost savings $5,000Estimated salvage value $1,000Discount rate 10%A. $(3,430).B. $3,355.C. $0.D. $621.Use the following information to answer this question.Financial statements for Larkins Company appear below:Larkins CompanyStatement of Financial PositionDecember 31, Year 2 and Year 1(dollars in thousands)Year 2 Year 1Current assets:Cash and marketable securitiesAccounts receivable, netInventoryPrepaid expensesTotal current assetsNoncurrent assets:Plant & equipment, net$180210130505701,540$180180120505301,480Total assets $2,110 $2,010Current liabilities:Accounts payableAccrued liabilitiesNotes payable, short termTotal current liabilitiesNoncurrent liabilities:Bonds payableTotal liabilitiesStockholders' equity:Preferred stock, $20 par, 10%Common stock, $10 parAdditional paid-in capital--common stockRetained earningsTotal stockholders' equityTotal liabilities & stockholders' equity$10060902504807301201802408401,380$2,110$130601203105008101201802406601,200$2,010Larkins CompanyIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Sales (all on account)Cost of goods soldGross marginSelling and administrative expenseNet operating incomeInterest expenseNet income before taxes$2,7601,93083033050050450Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. Themarket price of a share of common stock on December 31, Year 2 was $150.Income taxes (30%)Net income135$3158. Larkins Company's dividend payout ratio for Year 2 was closest to:A. 42.9%B. 40.6%C. 24.6%D. 14.8%9. (Ignore income taxes in this problem.) The Keego Company is planning a $200,000 equipmentinvestment that has an estimated five-year life with no estimated salvage value. The company has projectedthe following annual cash flows for the investment:Assuming that the cash inflows occur evenly over the year, the payback period for the investment is_______ years.Year Cash Inflows1 $120,0002 60,0003 40,0004 40,0005 40,000Total $300,000A. 2.50B. 0.75C. 1.67D. 4.91Use the following information to answer this question.Financial statements for Larkins Company appear below:Larkins CompanyStatement of Financial PositionDecember 31, Year 2 and Year 1(dollars in thousands)Year 2 Year 1Current assets:Cash and marketable securitiesAccounts receivable, netInventoryPrepaid expensesTotal current assets$18021013050570$18018012050530Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. Themarket price of a share of common stock on December 31, Year 2 was $150.Noncurrent assets:Plant & equipment, net 1,540 1,480Total assets $2,110 $2,010Current liabilities:Accounts payableAccrued liabilitiesNotes payable, short termTotal current liabilitiesNoncurrent liabilities:Bonds payableTotal liabilitiesStockholders' equity:Preferred stock, $20 par, 10%Common stock, $10 parAdditional paid-in capital--common stockRetained earningsTotal stockholders' equityTotal liabilities & stockholders' equity$10060902504807301201802408401,380$2,110$130601203105008101201802406601,200$2,010Larkins CompanyIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Sales (all on account)Cost of goods soldGross marginSelling and administrative expenseNet operating incomeInterest expenseNet income before taxesIncome taxes (30%)Net income$2,7601,93083033050050450135$31510. Larkins Company's earnings per share of common stock for Year 2 was closest to:A. $17.50.B. $16.83.C. $25.00.D. $7.21.11. Which of the following would be classified as a financing activity on the statement of cash flows?A. Dividends paid to shareholders of the company on the company's common stockB. Dividends received on investments in another company's common stockC. Interest paid on bonds issued by the reporting companyD. Interest received on investments in another company's bonds12. A project profitability index greater than zero for a project indicates thatA. the discount rate is less than the internal rate of return.
Customer : 12#
Customer : 12. A project profitability index greater than zero for a project indicates thatA. the discount rate is less than the internal rate of return.B. the company should reevaluate its discount rate.C. the project is unattractive and shouldn't be pursued.D. there has been a calculation error.13. Fonics Corporation is considering the following three competing investment proposals:Using the project profitability index, how would the above investments be ranked (highest to lowest)?Aye Bee CeeInitial investment required $62,000 $74,000 $95,000Net present value $10,000 $8,000 $12,000Internal rate of return 15% 17% 18%A. Aye, Bee, CeeB. Cee, Bee, AyeC. Bee, Cee, AyeD. Aye, Cee, Bee14. VIM Company purchased $100,000 in inventory from its suppliers on credit terms. The company'sacid-test ratio would most likelyA. be unchanged.B. be impossible to determine without more information.C. increase.D. decrease.15. The net present value method assumes that the project's cash flows are reinvested at theA. internal rate of return.B. payback rate of return.C. simple rate of return.D. discount rate used in the net present value calculation.16. Part N19 is used by Malouf Corporation to make one of its products. A total of 7,000 units of this partare produced and used every year. The company's Accounting Department reports the following costs ofproducing the part at this level of activity:An outside supplier has offered to make the part and sell it to the company for $24.50 each. If this offer isaccepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided.Per UnitDirect materials $2.20Direct labor $8.50Variable manufacturing overhead $1.30Supervisor’s salary $5.80Depreciation of special equipment $7.20Allocated general overhead $4.60The special equipment used to make the part was purchased many years ago and has no salvage value orother use. The allocated general overhead represents fixed costs of the entire company, none of whichwould be avoided if the part were purchased instead of produced internally. In addition, the space used tomake part N19 could be used to make more of one of the company's other products, generating anadditional segment margin of $25,000 per year for that product. What would be the impact on thecompany's overall net operating income of buying part N19 from the outside supplier?A. Net operating income would decline by $60,700 per year.B. Net operating income would decline by $10,700 per year.C. Net operating income would increase by $25,000 per year.D. Net operating income would decline by $21,900 per year.17. Which of the following would be considered a "use" of cash for the purpose of constructing a statementof cash flows?A. Selling the company's own common stock to investorsB. Purchasing equipmentC. Issuing long-term debtD. Amortizing a patent18. Centerville Company's debt-to-equity ratio is 0.60 Total assets are $320,000, current assets are$170,000, and working capital is $80,000. Centerville's long-term liabilities must beA. $80,000.B. $90,000.C. $30,000.D. $120,000.19. Degner Inc. has some material that originally cost $19,500. The material has a scrap value of $13,300as is, but if reworked at a cost of $2,100, it could be sold for $14,000. What would be the incrementaleffect on the company's overall profit of reworking and selling the material rather than selling it as is asscrap?A. -$1,400B. $11,900C. -$20,900D. -$7,600Use the following information to answer this question.The most recent balance sheet and income statement of Teramoto Corporation appear below:Comparative Balance SheetEndingBalanceBeginningBalanceAssets:Cash and cash equivalentsAccounts receivableInventoryPlant and equipmentLess accumulated depreciationTotal assets$435373582301$450$355969490286$367End of examLiabilities and stockholders' equityAccounts payableWages payableTaxes payableBonds payableDeferred taxesCommon stockRetained earningsTotal liabilities and stockholders' equity$572115212055261$450$481813202150197$367Income StatementSalesCost of good soldGross marginSelling and administrative expenseNet operating incomeIncome taxesNet income$89358730618911735$8220. The net cash provided by (used by) investing activities for the year wasA. $77.B. ($77).C. ($92).D. $92.
Customer : the another on below
Customer : NEW ONE
Customer : Use the following information to answer this question.Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided thefollowing data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:Fixed element Variable elementper month per client-visitRevenue ____-____ $25.10Personnel expenses $27,100 $7.10Medical supplies 1,500 4.50Occupancy expenses 6,000 1.00Administrative expenses 3,000 0.10Total expenses $37,600 $12.70Actual resultsfor December:Revenue $96,299Personnel expenses $51,009Medical supplies $17,425Occupancy expenses $9,240Administrative expenses $3,2391. The personnel expenses in the planning budget for December would be closest toA. $53,299.B. $51,147.C. $53,370.D. $51,009.2. Lyons Company consists of two divisions, A and B. Lyons Company reported a contribution margin of$50,000 for Division A and had a contribution margin ratio of 30% in Division B, when sales in Division Bwere $200,000. Net operating income for the company was $25,000, and traceable fixed expenses were$40,000. Lyons Company's common fixed expenses wereA. $40,000.B. $85,000.C. $70,000.D. $45,000.Use the following information to answer this question.The Adams Company, a merchandising firm, has budgeted its activity for November according to thefollowing information:• Sales were at $450,000, all for cash.• Merchandise inventory on October 31 was $200,000.• The cash balance on November 1 was $18,000.• Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.• Budgeted depreciation for November is $25,000.• The planned merchandise inventory on November 30 is $230,000.• The cost of goods sold is 70% of the selling price.• All purchases are paid for in cash.3. The budgeted cash disbursements for November areA. $375,000.B. $405,000.C. $530,000.D. $345,000.Use the following information to answer this question.Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standardcosts for one bag of Fastgro as follows:Standard Standard CostQuantity per bagDirect material 20 pounds $8.00Direct labor 0.1 hours $1.10Variable overhead 0.1 hours $0.40The company had no beginning inventories of any kind on January 1. Variable overhead is applied toproduction on the basis of standard direct-labor hours. During January, the company recorded the followingactivity:• Production of Fastgro: 4,000 bags• Direct materials purchased: 85,000 pounds at a cost of $32,300• Direct-labor worked: 390 hours at a cost of $4,875• Variable overhead incurred: $1,475• Inventory of direct materials on January 31: 3,000 pounds4. The labor rate variance for January isA. $585 U.B. $475 F.C. $475 U.D. $585 F.Use the following information to answer this question.Werber Clinic uses client visits as its measure of activity. During January, the clinic budgeted for 2,700client visits, but its actual level of activity was 2,730 client visits. The clinic has provided the following dataconcerning the formulas used in its budgeting and its actual results for January:Data used in budgeting:Fixed element Variable elementper month per client-visitRevenue ___-___ $33.60Personnel expenses $22,100 $8.70Medical supplies 1,100 6.60Occupancy expenses 5,600 1.60Administrative expenses 3,700 0.40Total expenses $32,500 $17.30Actual resultsfor January:Revenue $93,408Personnel expenses $46,251Medical supplies $19,348Occupancy expenses $9,508Administrative expenses $4,7725. The activity variance for personnel expenses in January would be closest toA. $261 F.B. $661 U.C. $661 F.D. $261 U.Use the following information to answer this question.Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided thefollowing data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:Fixed element Variable elementper month per client-visitRevenue ____-____ $25.10Personnel expenses $27,100 $7.10Medical supplies 1,500 4.50Occupancy expenses 6,000 1.00Administrative expenses 3,000 0.10Total expenses $37,600 $12.70Actual resultsfor December:Revenue $96,299Personnel expenses $51,009Medical supplies $17,425Occupancy expenses $9,240Administrative expenses $3,2396. The revenue variance for December would be closest toA. $3,429 F.B. $3,680 U.C. $3,680 F.D. $3,429 U.7. Last year, the House of Orange had sales of $826,650, net operating income of $81,000, and operatingassets of $84,000 at the beginning of the year and $90,000 at the end of the year. What was the company'sturnover rounded to the nearest tenth?A. 9.2B. 9.8C. 10.2D. 9.5Use the following information to answer this question.Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided thefollowing data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:Fixed element Variable elementper month per client-visitRevenue ____-____ $25.10Personnel expenses $27,100 $7.10Medical supplies 1,500 4.50Occupancy expenses 6,000 1.00Administrative expenses 3,000 0.10Total expenses $37,600 $12.70Actual resultsfor December:Revenue $96,299Personnel expenses $51,009Medical supplies $17,425Occupancy expenses $9,240Administrative expenses $3,2398. The activity variance for personnel expenses in December would be closest toA. $2,361 F.B. $71 U.C. $2,361 U.D. $71 F.Use the following information to answer this question.Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standardcosts for one bag of Fastgro as follows:Standard Standard CostQuantity per bagDirect material 20 pounds $8.00Direct labor 0.1 hours $1.10Variable overhead 0.1 hours $0.40The company had no beginning inventories of any kind on January 1. Variable overhead is applied toproduction on the basis of standard direct-labor hours. During January, the company recorded the followingactivity:• Production of Fastgro: 4,000 bags• Direct materials purchased: 85,000 pounds at a cost of $32,300• Direct-labor worked: 390 hours at a cost of $4,875• Variable overhead incurred: $1,475• Inventory of direct materials on January 31: 3,000 pounds9. The total variance (both rate and efficiency) for variable overhead for January isA. $40 F.B. $125 F.C. $85 F.D. $100 U.10. Division X of Charter Corporation makes and sells a single product which is used by manufacturers offork lift trucks. Presently it sells 12,000 units per year to outside customers at $24 per unit. The annualcapacity is 20,000 units and the variable cost to make each unit is $16. Division Y of Charter Corporationwould like to buy 10,000 units a year from Division X to use in its products. There would be no costsavings from transferring the units within the company rather than selling them on the outside market.What should be the lowest acceptable transfer price from the perspective of Division X?A. $17.60B. $21.40C. $16.00D. $24.00Use the following information to answer this question.Werber Clinic uses client visits as its measure of activity. During January, the clinic budgeted for 2,700client visits, but its actual level of activity was 2,730 client visits. The clinic has provided the following dataconcerning the formulas used in its budgeting and its actual results for January:Data used in budgeting:Fixed element Variable elementper month per client-visitRevenue ___-___ $33.60Personnel expenses $22,100 $8.70Medical supplies 1,100 6.60Occupancy expenses 5,600 1.60Administrative expenses 3,700 0.40Total expenses $32,500 $17.30Actual resultsfor January:Revenue $93,408Personnel expenses $46,251Medical supplies $19,348Occupancy expenses $9,508Administrative expenses $4,77211. The activity variance for net operating income in January would be closest toA. $2,019 F.B. $489 U.C. $489 F.D. $2,019 U.Use the following information to answer this question.Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided thefollowing data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:Fixed element Variable elementper month per client-visitRevenue ____-____ $25.10Personnel expenses $27,100 $7.10Medical supplies 1,500 4.50Occupancy expenses 6,000 1.00Administrative expenses 3,000 0.10Total expenses $37,600 $12.70Actual resultsfor December:Revenue $96,299Personnel expenses $51,009Medical supplies $17,425Occupancy expenses $9,240Administrative expenses $3,23912. The spending variance for medical supplies in December would be closest toA. $680 U.B. $725 F.C. $680 F.D. $725 U.13. The budget or schedule that provides necessary input data for the direct-labor budget is theA. production budget.B. schedule of cash collections.C. cash budget.D. raw materials purchases budget.14. Super Drive is a computer hard-drive manufacturer. The company's balance sheet for the fiscal yearended on November 30 appears below:Super Drive, Inc.Statement of Financial PositionFor the year ended November 30Assets:Cash $52,000Accounts receivable 150,000Inventory 315,000Property, plant, and equipment 1,000,000Total Assets $1,517,000Liabilities and stockholders' equity:Accounts payable $175,000Common stock 900,000Retained earnings 442,000Total liabilities andstockholders' equity $1,517,000Additional information regarding Super Drive's operations appears below:• Sales are budgeted at $520,000 for December and $500,000 for January.• Collections are expected to be 60% in the month of sale and 40% in the month following sale. There areno bad debts.• 80% of the disk-drive components are purchased in the month prior to the month of the sale, and 20%are purchased in the month of the sale. Purchased components comprise 40% of the cost of goods sold.• Payment for components purchased is made in the month following the purchase.• Assume that the cost of goods sold is 80% of sales.The budgeted cash collections for the upcoming December should beA. $520,000.B. $208,000.C. $462,000.D. $402,000.Use the following information to answer this question.Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standardcosts for one bag of Fastgro as follows:Standard Standard CostQuantity per bagDirect material 20 pounds $8.00Direct labor 0.1 hours $1.10Variable overhead 0.1 hours $0.40The company had no beginning inventories of any kind on January 1. Variable overhead is applied toproduction on the basis of standard direct-labor hours. During January, the company recorded the followingactivity:• Production of Fastgro: 4,000 bags• Direct materials purchased: 85,000 pounds at a cost of $32,300• Direct-labor worked: 390 hours at a cost of $4,875• Variable overhead incurred: $1,475• Inventory of direct materials on January 31: 3,000 pounds15. The materials quantity variance for January isA. $800 U.B. $300 F.C. $750 F.D. $300 U.Use the following information to answer this question.Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standardcosts for one bag of Fastgro as follows:Standard Standard CostQuantity per bagDirect material 20 pounds $8.00Direct labor 0.1 hours $1.10Variable overhead 0.1 hours $0.40The company had no beginning inventories of any kind on January 1. Variable overhead is applied toproduction on the basis of standard direct-labor hours. During January, the company recorded the followingactivity:• Production of Fastgro: 4,000 bags• Direct materials purchased: 85,000 pounds at a cost of $32,300• Direct-labor worked: 390 hours at a cost of $4,875• Variable overhead incurred: $1,475• Inventory of direct materials on January 31: 3,000 pounds16. The materials price variance for January isA. $1,300 U.B. $1,700 F.C. $1,640 U.D. $1,640 F.17. Coles Company, Inc. makes and sells a single product, Product R. Three yards of Material K areneeded to make one unit of Product R. Budgeted production of Product R for the next five months is asfollows:The company wants to maintain monthly ending inventories of Material K equal to 20% of the followingmonth's production needs. On July 31, this requirement wasn't met because only 2,500 yards of Material Kwere on hand. The cost of Material K is $0.85 per yard. The company wants to prepare a Direct MaterialsPurchase Budget for the rest of the year.The total cost of Material K to be purchased in August isAugust14,000unitsSeptember14,500unitsOctober15,500unitsNovember12,600unitsDecember11,900unitsA. $48,200.B. $42,300.C. $33,840.D. $40,970.18. Manufacturing Cycle Efficiency (MCE) is computed asA. Value-Added Time divided by Throughput Time.B. Value-Added Time divided by Delivery Cycle Time.C. Throughput Time divided by Delivery Cycle Time.D. Process Time divided by Delivery Cycle Time.Use the following information to answer this question.The Adams Company, a merchandising firm, has budgeted its activity for November according to thefollowing information:• Sales were at $450,000, all for cash.• Merchandise inventory on October 31 was $200,000.• The cash balance on November 1 was $18,000.• Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.End of exam• Budgeted depreciation for November is $25,000.• The planned merchandise inventory on November 30 is $230,000.• The cost of goods sold is 70% of the selling price.• All purchases are paid for in cash.19. The budgeted net income for November isA. $50,000.B. $75,000.C. $135,000.D. $68,000.20. The LFM Company makes and sells a single product, Product T. Each unit of Product T requires 1.3hours of direct labor at a rate of $9.10 per direct-labor hour. LFM Company needs to prepare a direct-laborbudget for the second quarter of next year. The budgeted direct-labor cost per unit of Product T would beA. $11.83.B. $7.00.C. $10.40.D. $9.10.
Customer : Hello
Customer : Hello , Did you refund the 60 dollars ? It looks like it
Customer : Hey
Customer : What up buddy ?
F. Naz, Chartered Accountant
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F. Naz and 6 other Homework Specialists are ready to help you
Expert:  F. Naz replied 1 year ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

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Customer: replied 1 year ago.
Hello, Did you get the other on?

Expert:  F. Naz replied 1 year ago.
I have answered all four, thanks.
Customer: replied 1 year ago.
PLease check what you sent to me vs what we agreed on !
Expert:  F. Naz replied 1 year ago.
Sent all four again to your another posted question, take care.
Customer: replied 1 year ago.
Thanks for your help!! I did see the another one.... SO SORRY !! You still owe me 30 dollars. We agreed to 4 for 150.00 and you collected 180. I have more that I have to type out . Are you will to keep the 30 for that one or return the 30 dollars. Please let me know ! Thank you all of your help!
Expert:  F. Naz replied 1 year ago.
If you have no problem then we can adjust this 30 in our next assignment, as the refund might create problem, take care.
Customer: replied 1 year ago.
I have to show work for ALL WORK FOR EACH OF THIS 20 questions. I know this may take you longer. The sooner the better for me...... I will agree to additional 30 dollars .. Total 60 with 30 paid and 30 dollars remaining.

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1. The work-in-process inventory account of a manufacturing
company shows a balance of $3,000 at the end of an
accounting period. The job-cost sheets of the two incomplete
jobs show charges of $500 and $300 for direct
materials, and charges of $400 and $600 for direct labor.
From this information, it appears that the company is
using a predetermined overhead rate as a percentage of
direct labor costs. What percentage is the rate?
2. The break-even point in dollar sales for Rice Company is
$480,000 and the company’s contribution margin ratio
is 40 percent. If Rice Company desires a profit of
$84,000, how much would sales have to total?
3. Williams Company’s direct labor cost is 25 percent of its
conversion cost. If the manufacturing overhead for the
last period was $45,000 and the direct material cost was
$25,000, how much is the direct labor cost?

4. Grading Company’s cash and cash equivalents consist of
cash and marketable securities. Last year the company’s
cash account decreased by $16,000 and its marketable
securities account increased by $22,000. Cash provided
by operating activities was $24,000. Net cash used for
financing activities was $20,000. Based on this information,
was the net cash flow from investing activities on
the statement of cash flows a net increase or decrease?
By how much?
5. Gladstone Footwear Corporation’s flexible budget cost
formula for supplies, a variable cost, is $2.82 per unit of
output. The company’s flexible budget performance report
for last month showed an $8,140 unfavorable spending
variance for supplies. During that month, 21,250 units
were produced. Budgeted activity for the month had
been 20,900 units. What is the actual cost per unit for
indirect materials?
6. Lyons Company consists of two divisions, A and B. Lyons
Company reported a contribution margin of $60,000 for
Division A, and had a contribution margin ratio of 30
percent in Division B, when sales in Division B were
$240,000. Net operating income for the company was
$22,000 and traceable fixed expenses were $45,000. How
much were Lyons Company’s common fixed expenses?
7. Atlantic Company produces a single product. For the most
recent year, the company’s net operating income computed
by the absorption costing method was $7,800, and its net
operating income computed by the variable costing method
was $10,500. The company’s unit product cost was $15
under variable costing and $24 under absorption costing.
If the ending inventory consisted of 1,460 units, how
many units must have been in the beginning inventory?

8. Black Company uses the weighted-average method in its
process costing system. The company’s ending work-inprocess
inventory consists of 6,000 units, 75 percent
complete with respect to materials and 50 percent complete
with respect to labor and overhead. If the total
dollar value of the inventory is $80,000 and the cost per
equivalent unit for labor and overhead is $6.00, what is
the cost per equivalent unit for materials?
9. At Overland Company, maintenance cost is exclusively a
variable cost that varies directly with machine-hours. The
performance report for July showed that actual maintenance
costs totaled $11,315 and that the associated rate
variance was $146 unfavorable. If 7,300 machine-hours
were actually worked during July, what is the budgeted
maintenance cost per machine-hour?
10. The cost of goods sold in a retail store totaled $650,000.
Fixed selling and administrative expenses totaled $115,000
and variable selling and administrative expenses were
$420,000. If the store’s contribution margin totaled
$590,000, how much were the sales?
11. Denny Corporation is considering replacing a technologically
obsolete machine with a new state-of-the-art
numerically controlled machine. The new machine would
cost $600,000 and would have a 10-year useful life.
Unfortunately, the new machine would have no salvage
value. The new machine would cost $20,000 per year to
operate and maintain, but would save $125,000 per year
in labor and other costs. The old machine can be sold
now for scrap for $50,000. What percentage is the simple
rate of return on the new machine rounded to the nearest
tenth of a percent? (Ignore income taxes in this problem.)

Lounsberry Inc. regularly uses material O55P and currently
has in stock 375 liters of the material, for which it paid
$2,700 several weeks ago. If this were to be sold as is on
the open market as surplus material, it would fetch $6.35
per liter. New stocks of the material can be purchased
on the open market for $7.20 per liter, but it must be
purchased in lots of 1,000 liters. You’ve been asked to
determine the relevant cost of 900 liters of the material
to be used in a job for a customer. What is the relevant
cost of the 900 liters of material O55P?
13. Harwichport Company has a current ratio of 3.0 and
an acid-test ratio of 2.8. Current assets equal $210,000,
of which $5,000 consists of prepaid expenses. The
remainder of current assets consists of cash, accounts
receivable, marketable securities, and inventory. What
is the amount of Harwichport Company’s inventory?
14. Tolla Company is estimating the following sales for the
first six months of next year:
January $350,000
February $300,000
March $320,000
April $410,000
May $450,000
June $470,000
Sales at Tolla are normally collected as 70 percent in the
month of sale, 25 percent in the month following the sale,
and the remaining 5 percent being uncollectible. Also, customers
paying in the month of sale are given a 2 percent
discount. Based on this information, how much cash
should Tolla expect to collect during the month of April?

15. Trauscht Corporation has provided the following data
from its activity-based costing system:


Activity Cost Pool Total Cost Total Activity
Assembly $704,880 44,000 machine-hours
Processing orders $91,428 1,900 orders
Inspection $117,546 1,950 inspection-hours

The company makes 360 units of product P23F a year,
requiring a total of 725 machine-hours, 85 orders, and 45
inspection-hours per year. The product’s direct materials
cost is $42.30 per unit and its direct labor cost is $14.55
per unit. The product sells for $132.10 per unit. According
to the activity-based costing system, what is the product
margin for product P23F?
16. Williams Company’s direct labor cost is 30 percent of its
conversion cost. If the manufacturing overhead for the
last period was $59,500 and the direct materials cost
was $37,000, what is the direct labor cost?
17. In a recent period, 13,000 units were produced, and there
was a favorable labor efficiency variance of $23,000.
If 40,000 labor-hours were worked and the standard
wage rate was $13 per labor-hour, what would be the
standard hours allowed per unit of output?
18. The balance in White Company’s work-in-process inventory
account was $15,000 on August 1 and $18,000 on
August 31. The company incurred $30,000 in direct labor
cost during August and requisitioned $25,000 in raw
materials (all direct material). If the sum of the debits to
the manufacturing overhead account total $28,000 for the
month, and if the sum of the credits totaled $30,000, then
was Finished Goods debited or credited? By how much?

19. A company has provided the following data:
Sales 4,000 units
Sales price $80 per unit
Variable cost $50 per unit
Fixed cost $30,000
If the dollar contribution margin per unit is increased
by 10 percent, total fixed cost is decreased by 15 percent,
and all other factors remain the same, will net operating
income increase or decrease? By how much?
20. For the current year, Paxman Company incurred
$175,000 in actual manufacturing overhead cost. The
manufacturing overhead account showed that overhead
was overapplied in the amount of $9,000 for the year.
If the predetermined overhead rate was $8.00 per
direct labor-hour, how many hours were worked
during the year?
Expert:  F. Naz replied 1 year ago.
Yes you are right by what time do you need the answer thanks. It is better that you post new question with price of $30, to avoid the future confustion, it will close the chapter thanks.
Expert:  F. Naz replied 1 year ago.
Have a nice day

Click here for solution 5
Customer: replied 1 year ago.
Thank you for your help !!!!!!!!!!!!!!!

I recv'd an 80 of the test and 90 onthe other and (2) 100 on the other two.How certain are you about the answer. I oweyou 30 more dollars. How do I pay you ?
Expert:  F. Naz replied 1 year ago.
It should be atleast 90% on the safeside, may be 100. You may post a new question with a price of $30, then when I will send you the answer again you may rate that, so our account will be settled, thanks.

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