Use the May 31 fiscal year-end information from the following ledger accounts (assume that all accounts have normal balances).

The following budget data pertain to the Machining Department of Yolkenverst Co.: Maximum capacity 62,000 units Machine hours pe

Marysya12 [62]

Answer:

Yolkenverst Co.

Machining Department

For the current year the department has a fixed overhead production volume variance, rounded to the nearest whole dollar, of:

= $7,148.

Explanation:

a) Data and Calculations:

Maximum capacity 62,000 units

Machine hours per unit 2.50

Variable factory overhead $ 4.20 per machine hour

Fixed factory overhead $ 432,500

Planned capacity units to be produced = 50,840 units (62,000 * 82%)

Actual capacity units produced = 50,000 units

Production volume variance = 840 units (50,840 - 50,000)

Fixed factory overhead rate of maximum capacity = $6.96 ($432,500/62,000)

Standard fixed overhead rate based on planned capacity = $8.51 ($432,500/50,840)

Fixed overhead production volume variance = production volume variance * standard fixed overhead rate based on planned capacity

= 840 * $8.51

= $7,148.4

= $7,148

7 0

1 year ago

In the Business Loan worksheet, enter the data values and formulas required to calculate the monthly payment on a business loan

Pavlova-9 [17]

Answer:

Monthly Payment: $1,879

Annual Payment: $13,975

Explanation:

To find the answer, we will use the present value of an annuity formula:

The formula is:

PV = A (1 - (1 + i)^-n) / i

Where:

PV = Present value of the investment (in this case, of the loan)
A = Value of the annuity (will be our incognita)
i = interest rate
n = number of compounding periods

The reason why we use this formula is because both the annual payments, and the monthly payments are annuities: payments that have regular time intervals, and have the same interest rate, which means that the value of each payment is the same.

To find the monthly payment, we first convert the annual interest rate of 6.2% to a monthly rate. The result is a 0.5% monthly rate.

Next, the number of compounding periods changes, because the monthly rate compounds each month, not once every year. For these reason, we use the number of months that there are in 15 years, which is 180 months (15 x 12 = 180).

Third, we divide the interest rate by 100 to obtain the decimal value: 0.5 / 100 = 0.005

Finally, we plug the correct amounts into the formula:

225,000 = X (1 - (1 + 0.005)^-180) / 0.005

225,000 = X (118.5)

225,000 / 118.5 = X

1,899 = X

Now, for the annual payment, we simply use the annual rate of 6.2% (divided by 100) instead of the monthly rate, and the compounding periods are now 15 years, instead of 180 months:

225,000 = X (1 - (1 + 0.062)^-15 / 0.062

225,000 = X (16.1)

225,000 / 16.1 = X

13,975 = X

4 0

2 years ago

Wildhorse Construction Company had a contract starting April 2021, to construct a $24900000 building that is expected to be comp

jek_recluse [69]

Answer:

The construction in process amount reported at December 2021 is $13,695,000

Explanation:

In this question, we are asked to state the amount the company will report construction in the process of.

Firstly, we calculate the profit = Total contract price - Expected costs of contract = $24,900,000-$22,900,000 = $2,000,000

The profit in percentage of cost is; 2,000,000/22,900,000 = 8.73%

The costs incurred in 2021 is $12,595,000

The proportionate profit = 12,595,000 * 8.73 = $1,100,000

The construction in process at December 2021 = Cost incurred + Proportionate profit = 12,595,000 + 1,100,000 = $13,695,000

3 0

2 years ago

You bought one of Lambert Sandblasting Company's 15-year bonds one year ago for $960. These bonds pay 7 percent annually, have a

maksim [4K]

Answer:

Real return on investment: 22.9465%

Explanation:

Okay let's explain each concept we have given:

Face Value $1,000

This is the ammount Lambert will pay at maturity

Purchase Value $ 960

This is the Ammount we pay for the bond

Market Value of the bond today $ ???

This is what we need to determinate to see the return we got

Once we got the market Value we will do:

Market Value / Purchase Value - 1 = rate of return

Now the market value today will be the present value of the bond, and the bond has the following data:

Mature in 14 year

bond rate 7% annualy.

So each year we receive the 7% of the face value ($1,000) = $70

And at the end of the bond life we receive 1,000

We need to bring this numbers at present day using the real market rate, because the economy is having inflation:

market rate 8%

inflation rate 2.7%

real rate:

(1+rate)/(1+inflation) -1 = real rate

$\frac{1.08}{1.027} -1 = real rate$

real rate = 5.16%

To know the present value of the bond we will have to consider:

present value of an annuity of 70$ during 14 year at a rate of 5.16% =
present value of the 1,000 that will be pay at maturity at a rate of 5.16%

The annuity will be

$70 * \frac{1-(1+0.0516)^-14}{0.0516} = 685.87$

$C * \frac{1-(1+rate)^-time}{rate} = present value$

$685,87

The present value of the 1,000 will be

face value/(1+rate)^time

1,000/(1+0.0516)^14 = $494,42

for a total of $1.180,29

Now we will calculate the real return on the investment:

we receive 1.180,29 for 960 so the rate is

1.180,29 /960 - 1 = 0.229465 = 22.9465%

8 0

2 years ago

On June 30, a printing shop provides $1,000 of services to a customer to custom print restaurant menus. The customer is sent a b

Margaret [11]

Answer:

June 30

Explanation:

According to the revenue recognition principle, the sale is made when it is earned, not when it is received by the customer. That means it follows the accrual basis of accounting, not the cash basis of accounting.

In the given situation, On June 30 the printing shop provides service to a customer for $1,000, On July 5 it sent a bill and on July 25, the amount is received by the customer.

So, The $1,000 would be recognized on June 30 when the sale is made by the printing shop

8 0

2 years ago