Answer:
Activity Rates
Consultation $150
Drawings $58
Modeling $0.7
supervision $190
Billings $1037.5
Collections $1642.5
Total overhead allocated: $ 126,826
Explanation:
First, we divide the cost of each activity over the base total to get the rate.
![\left[\begin{array}{ccccc}$Activity&Driver&cost&Total&Rate\\$Consultation&$contact hours&315000&2100&150\\$Drawings&$desing hours&104400&1800&58\\$Modeling&$square feet&32200&46000&0.7\\$supervision&$days&228000&1200&190\\$Billings&$jobs&8300&8&1037.5\\$Collections&$jobs&13140&8&1642.5\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%24Activity%26Driver%26cost%26Total%26Rate%5C%5C%24Consultation%26%24contact%20hours%26315000%262100%26150%5C%5C%24Drawings%26%24desing%20hours%26104400%261800%2658%5C%5C%24Modeling%26%24square%20feet%2632200%2646000%260.7%5C%5C%24supervision%26%24days%26228000%261200%26190%5C%5C%24Billings%26%24jobs%268300%268%261037.5%5C%5C%24Collections%26%24jobs%2613140%268%261642.5%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Now we apply this rate against the job activity measurement:
![\left[\begin{array}{ccccc}$Activity&Job&$Rate&$Allocated\\$Consultation&410&150&61500\\$Drawings&352&58&20416&\\$Modeling&7400&0.7&5180&\\$supervision&195&190&37050&\\$Billings&1&1037.5&1037.5&\\$Collections&1&1642.5&1642.5&\\$Total&&&126826&\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%24Activity%26Job%26%24Rate%26%24Allocated%5C%5C%24Consultation%26410%26150%2661500%5C%5C%24Drawings%26352%2658%2620416%26%5C%5C%24Modeling%267400%260.7%265180%26%5C%5C%24supervision%26195%26190%2637050%26%5C%5C%24Billings%261%261037.5%261037.5%26%5C%5C%24Collections%261%261642.5%261642.5%26%5C%5C%24Total%26%26%26126826%26%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Solution:
Computation of % , revenue recognition and gross profit - Beck construction (In millions )
Year Actual cost incurred (A)
2020 $ 50
2021 $ 85
2022 $ 55
Year Total cost incurred till date (B)
2020 $ 50
2021 $ 135
2022 $ 190
Year Total Estimated cost (C)
2020 $ 150
2021 $ 220
2022 $ 190
Year % of completion (D) (B/C)
2020 33%
2021 61%
2022 100%
Year Contract price (E)
2020 $187
2021 $187
2022 $187
Year Total revenue to be recognised (F) ( E*D)
2020 $62
2021 $114
2022 $187
Year Revenue for current period (G)
2020 $62
2021 $52
2022 $73
Year Gross Profit (H) (G-A)
2020 $12
2021 $-33
2022 $18
This would be a controlled experiment. You would randomly assign people into groups and watch their behavior as they interact with different temperatures. You would have two experimental groups and one control group.
Answer:
The below additional piece of information is missing from the question:
In its 2018 income statement, what amount of interest expense should Hernandez report from this lease transaction?
The interest expense for 2018 is $150,000
Explanation:
Interest expense for 2018 is the implicit interest 10% multiplied by the difference present value of $1,800,000 minus annual payment of $300,000.
In order to compute the interest expense,the annual payment must be deducted first since the annual payment was made at the start of the year,hence interest is only due on the net amount of $1,500,000($1,800,000-$300,000).
Interest expense=$1,500,000*10%=$150,000
The main thing Vinnie did wrong was have multiple credit cards, and it say sin the question 'had fun with them' he probably did not monitor how much money he was spending.
