Choosing firm goals for your business

The fact that one department may be labor intensive while another department is machine intensive explains in part why multiple

serious [3.7K]

Answer:

That statement is true

Explanation:

Pre-determined overhead is the method of overhead calculation that being done at the beginning of each accounting period. They use the number based on estimation from the performance on the previous period.

Determining pre-determined overhead of a machine is far easier compared to human labor since machine tend to give stable performance.

Since larger companies tend to use more machines than smaller companies, pre-determined overhad is more common among larger companies and rarely found in smaller ones.

8 0

2 years ago

Lori, a self-employed pediatrician, currently earns $200,000 annually. Lori has been able to save 15%of her annual Schedule C ne

Dafna11 [192]

Answer:

49.5%.

Explanation:

% of salary towards social security tax = (19000/200,000)*100

= 9.5%

% of savings = 15%

Yearly mortgage payments = 4333.33*12

= 52000

% of mortgage payments = (52000/200,000)*100

= 26%

Replacement ratio = 100% - ( 9.5% + 15% + 26%)

= 49.5%

Therefore, You would expect Lori's wage replacement ratio to be 49.5% at retirement.

7 0

2 years ago

For a project, the following earned value data have been assessed: AC: $ 4,000,000 CV: $ -500,000 SPI: 1.12 BAC: $ 9,650,000 Wha

Morgarella [4.7K]

Answer:

The BCWS is also known as Planned Value (PV).

So, in this way, PV = 3.125.000

Explanation:

With the data we can obtain the PV as follows:

First, let's calculate EV as EV = CV + AC.

EV = -500.000 + 4.000.000 = 3.500.000

After this, we can calculate PV with this formula: SPI = EV/PV

PV = EV/SPI

PV = 3.500.000/1.12 = 3.125.000

We can conclude, with these results, that the project actually is forward about the schedule but with an overcost about the budget. In other words, the project advance must be 41% but now is on 36% due to the negative variance on the costs (CV).

7 0

2 years ago

The builder of a new movie theater complex is trying to decide how many screens she wants. Below are her estimates of the number

DochEvi [55]

Answer:

Part (a):

Make a table showing the value of the marginal product for each screen from the first through the fifth:

Solution:

The answer is attached.

Part (b):

How many screens will be built if the real interest rate is 5.5 percent?

Answer: 3 screens

Part (c):

How many screens will be built if the real interest rate is 7.5 percent?

Answer: 1 screen

Part (d):

How many screens will be built if the real interest rate is 10 percent?

Answer: 0 screens

Part (e):

If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex?

Answer: $727,272.73(approx.)

Explanation:

Part (a):

Make a table showing the value of the marginal product for each screen from the first through the fifth:

Solution:

The solution is attached with working.

Part (b):

How many screens will be built if the real interest rate is 5.5 percent?

Solution:

3 screens

The interest cost of each screen = 5.5% x $1,000,000 = $55,000.

There are no other costs mentioned. The value of marginal product exceeds $55,000 for 3 screens.

Therefore, 3 screens should be built.

Part (c):

How many screens will be built if the real interest rate is 7.5 percent?

Solution:

1 screen

The value of the marginal product exceeds the interest cost (7.5% of $1,000,000, or $75,000) for only the first screen.

Thus, one screen will be built.

Part (d):

How many screens will be built if the real interest rate is 10 percent?

Solution:

0 screens

At 10% interest, the interest cost of a screen is $100,000, more than the value of the marginal product of even the first screen.

Thus, no screens will be built.

Part (e):

If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex?

Solution:

The value of the marginal product of the fifth screen is $40,000. At an interest rate of 5.5%, building five screens is profitable only if 5.5% times the per-screen construction cost is no greater than $40,000.

Financial cost per screen = real interest rate x construction cost of per screen

$40, 000 = 5.5% x construction cost per screen Construction cost per screen = $40,000 ÷ 5.5%

= $727,272.73(approx.)

3 0

2 years ago

Dibert Inc. has provided the following data concerning one of the products in its standard cost system.Inputs Standard Quantity

Soloha48 [4]

Answer:

Option (C) is correct.

Explanation:

Actual output = 5100 units

Actual direct labor-hours = 3,380 hours

Actual direct labor cost = $74,698

The labor rate variance:

= (Actual Hours × Actual rate ) - ( Actual Hours × Standard Rate)

= $74,698 - ( 3,380 Hours × $20.40 Per Hour)

= $74,698 - $68,952

= $5,746 U

Since, the Actual is more than the Standard, the Variance is Unfavorable

Hence, the correct answer is $ 5,746 U

5 0

2 years ago