Use the PACED decision-making process to make the decision for Brent. Show your work.

Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2017 contained the following data. Variable Costs Fixed Cos

nydimaria [60]

Answer:

$\left[\begin{array}{cccc}-&Budget&Variance&Actual\\IL&10,000&700&9,300\\IM&11000&-3,800&14,800\\Utilities&7,400&-2,400&9,800\\Maintenance&6,000&1,200&4,800\\Total \: Variable&34,400&-4,300&38,700\\Supervisor&35,400&0&35,400\\Depreciation&7,100&0&7100\\PT and insurance&7,700&-600&8,300\\Maintenance&6,000&0&6,000\\Total \: Fixed&56,200&-600&56,800\\Total \: MO&90,600&-4,900&95,500\\\end{array}\right]$

Explanation:

We list them and subtract budget - actual

When actual is greater than budget the variance is negatine.

While budget being lower than actual is considered a positive variance.

3 0

2 years ago

On January 1, 2017, Dagwood Company purchased at par 6% bonds having a maturity value of $300,000. They are dated January 1, 201

statuscvo [17]

Answer:

Dagwood bonds receivables 300,000 debit

Cash 300,000 credit

--to record purchase of bonds--

Interest receivables 18,000 debit

Interest revenue 18,000 credit

--to record accrued interest on dagwood bonds--

Cash 18,000 debit

Interest receivables 18,000 credit

--to record collection of interest--

Explanation:

as the bonds are purchased at par we pay for the same as the face value

interest for the year

principal x rate

300,000 x 6% = 18,000

at December 31th the interest are receivables as we didn't collect the cash yet

Then, on january first, we receive the cash and write-off the receivables

4 0

2 years ago

A company's 2013 year-end balance sheet included the following: Jan. 1 Dec. 31 Accounts Receivable $80,000 $100,000Inventory $60

denis-greek [22]

Answer:

B. $170,000.

Explanation:

X company

statement of cash flow

For the year ended

Net income (balancing) (Note - 1) $170,000

Cash flow from operating activities

Depreciation expense $25,000

Increase in account receivable $(20,000)

Increase in inventory $(10,000)

decrease in Prepaid Expenses $25,000

Decrease in Accounts Payable $(20,000)

Increase in Deferred Revenue $30,000

Cash flow $30,000

Net cash flow from operating activities $200,000

Note 1:

Net cash flow from operating activities - Total changes in working capital= $200,000-$30,000 = $170,000.

3 0

2 years ago

Suppose Boyson Corporation's projected free cash flow for next year is FCF1 = $150,000, and FCF is expected to grow at a constan

bearhunter [10]

Answer:

The total corporate value of the firm is $3,000,000

Explanation:

The total corporate value of the firm is computed as:

Total corporate value = FCF1 / (average cost of capital - Growth rate)

Where

FCF1 is $150,000

Growth rate is 6.5%

average cost of capital is 11.5%

Putting the values :

= $150,000 / (11.5% - 6.5%)

= $150,000 / 5%

= $3,000,000

8 0

2 years ago

Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficien

Setler [38]

Answer:

a) Regulating cable TV prices - This is motivated by the concern about efficiency. Since one cable TV company can easily become a monopolist and manage cable TV prices on its own, market power (a type of market failure) is hindered by regulation. These measures aim to decentralize power and distribute it once again.

b) Providing some poor with vouchers that can be used to buy food. - Being a concern for equality, this regulation aims to improve fairness and equality among society levels by giving vouchers to poor people. Equality measures are usually non-efficient by the means of concern, and are a common practice in all governments.

c) Prohibiting smoking in public places - Being a concern about efficiency, this aims to overcome a possible externality. Third parties (non-smokers) are affected by something they cannot influence, which indicates a case of externality failure. Government regulation is essential

d) Breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companies. - Once a monopoly, Standard Oil is broken down into several smaller, competition-oriented companies. The market failure regarding market power is regulated by this move. When this happens, Standard Oil will not be able to dictate prices.

e) Imposing higher personal income tax rates on people with higher incomes - Being an equality measure by nature, this economic remedy tries to create less discrepancy among income across all social levels. The standard deviation becomes smaller, which is the result of equality measures. Although people with higher incomes will always have a similar income, regulation vastly influences people with less income.

f) Instituting laws against driving while intoxicated. - This is an efficiency measure (against externality), as sober drivers and traffic participants become influenced by drunk drivers who they cannot control. In case of an accident, the third party is imposed a cost that could be fatal. Therefore, it has to be regulated.

4 0

1 year ago