4. Super Smarts University has a sticker price of $45,000 per year. Kyle is applying there and uses their online net

Actual sales volume for a period is 5,000 units. Budgeted sales volume is 4,500. Actual selling price per unit is $15 an budgete

uranmaximum [27]

Answer:

-$3750 unfavorable

Explanation:

Given that

Actual Sales volume = 5,000 units

Budgeted sales volume = 4,500

Actual selling price per unit = $15

Planned selling price = $15.75

So, the computation of the sales price variance is given below:-

= Actual quantity sold × (actual selling price - planned selling price)

= 5,000 × ($15 - $15.75)

= 5,000 × (-$0.75)

= -$3750 unfavorable

3 0

2 years ago

Balance sheet and income statement data indicate the following: Bonds payable, 10% $1,000,000 Preferred 5% stock, $100 par (no c

dangina [55]

Answer:

The Time interest earned ratio is 4.5

Explanation:

Given:

Bonds payable 10% in 2 years $1000000

Preferred 5% stock $100 par (no change during the year) 300000

Common stock, $50 par (no change during the year) 2000000

Income before income tax for year 350000

Income tax for year 80000

Common dividends paid 50000

Preferred dividends paid 15000

Time interest earned ratio is a measure of how a company is able to pay up its debts based on its income. It is the ratio of earnings before tax and interest to total interest expense.

Interest expense = $1000000 × 10% = $100000 × 0.1 = $100000

Therefore the earnings before tax and interest = Income before income tax for year + Interest expense = $350000 + $100000 = $450000

the earnings before tax and interest = $450000

Time interest earned ratio = earnings before tax and interest / Interest expense = $450000 / $100000 = 4.5

The Time interest earned ratio = 4.5

7 0

2 years ago

Kathy wants to buy a condominium selling for $95 comma 000. The taxes on the property are $1500 per year, and homeowners' in

kumpel [21]

Answer:

Check the answers below!

Explanation:

There is just one question despite the exercise requires completition of 7 additional numerals.

a. Required down payment = Price of the condominium * interest rate required by the bank.

$95.000 * 20% = $19.000

b. 28% of adjusted monthly income is:

(5000-145)*28%=

1359.4

c. Monthly payments of principal and interest for a 25-year loan.

Using PV of ordinary annuity formula,

with PV of the bank loan =96000*80%=76800

d.Total monthly payment=

671+((346+1400)/12)=

817

e.YES---- 817 < 1359.4

f. Amt. of First payment on the loan applied to the principal:

671-(76800*0.00792)=

62.74

ie.$ 63

g.Total amount she pays for the condominium with a 25-year conventional loan(without including taxes & homeowners' insurance)

671*12 mths. *25 yrs. =

201300

h) So, Total interest paid for the 25-year loan:

201300-76800=

124500

No.of periods=25*12=300

at monthly interest of 9.5%/12=

76800=Pmt.*(1-1.00792^-300)/0.00792

Solving the above, we get the monthly payment as 671

5 0

2 years ago

g Handal Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the c

nordsb [41]

Answer:

Overhead Cost - S1 = $30201

Explanation:

To assign Overhead costs to S1, we first need to calculate the Overhead Absorption rate for Machining and Order filling.

The Overhead Absorption rate for Machining is calculated by dividing the Machining Overheads by the number of Machine hours to calculate $ Overhead per Machine Hour.

Total Machining Hours = 11500 + 3600 = 15100

Machining = $11325 / 15100 Hours = $0.75 / Machine Hour

Now we do the same calculation for Order Filling Overheads and divide them by Number of Orders.

Total Number of Orders = 270 + 1240 = 1510

Order Filling = 26274 / 1510 = $17.4 per order

Now we allocate the Overheads to S1 on the basis of Machine Hours and Number of orders relating to S1.

S1 Machine Hours = 11500

S1 Orders = 1240

S1 Overheads = 0.75 × 11500 + 17.4 × 1240 = $30201

8 0

2 years ago

Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer La

Monica [59]

Answer: $15,000

Explanation:

Given that,

Elite U:

Costs $50,000 per year

Larry values attending Elite U = $60,000 per year

State College:

Costs = $30,000 per year

Offered Larry an annual scholarship = $10,000

Larry values attending State College = $40,000 per year

No Name U:

Costs = $20,000 per year

Offered Larry a full annual scholarship = $20,000

Larry values attending No Name = $15,000 per year

Larry gets economic surplus from:

Elite U = $60,000 - $50,000

= $10,000

State college = $40,000 + $10,000 - $30,000

= $20,000

No Name U = $15,000 + $20,000 - $20,000

= $15,000

State college > No Name > Elite U

Therefore, the opportunity cost of attending State college is the value of the next best alternative that is No Name U.

Hence, the opportunity cost is $15,000.

3 0

2 years ago