Ultimate Business Study Guide - Questions & Answers

Determine whether each survey question is biased or unbiased. If biased, explain your reasoning. Do you prefer watching exciting football games or sitting through choir recitals?1. biased; the question addresses more than one issue. 2. biased; the question encourages a certain response. 3. unbiased biased; the question causes a strong reaction.
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Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $300,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $322,000 of overhead costs are incurred and 130,000 hours are used.Required:A) Compute the manufacturing overhead rate for the year.B) What is the amount of under- or overapplied overhead at December 31st?C) Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.
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At the beginning of the tax year, Barnaby's basis in the BBB Partnership was $118,800, including his $11,880 share of partnership debt. At the end of the tax year, his share of debt was $17,820. His share of the partnership's income for the year was $47,520, and he received cash distributions totaling $29,700. In addition, his share of the partnership's nontaxable income was $2,376.Determine Barnaby's basis at the end of the tax year.
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Scott Company had sales of $12,350,000 and related cost of goods sold of $7,500,000 for the year ending December 31, 20Y8. Scott provides customers a refund for any returned or damaged merchandise. Scott Company estimates that customers will request refunds for 0.8% of sales and estimates that merchandise costing $48,000 will be returned in 20Y9. Journalize the adjusting entries on December 31, 20Y8, to record the expected customer returns. If an amount box does not require an entry, leave it blank.
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Kayak Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Kayak Company's production costs for the year were: direct labor, $26,000; direct materials, $46,000; and factory overhead applied $5,600. The overhead application rate was:_______. a. 17.69%. b. 21.54%. c. 464.29%. d. 4.64%. e. 12.17%.
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Which of the following statement regarding characteristics of high performance teams is false?1. High-performance teams have strong core values. 2. High-performance teams turn a general sense of purpose into specific performance objectives. 3. High-performance teams have members who focus on individual effort and excellence. 4. Members of high-performance teams have the right mix of skills. 5. Members of high-performance teams feel collectively accountable.
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Suppose that a monopoly firm finds that its MR is $68 for the first unit sold each day, $67 for the second unit sold each day, $66 for the third unit sold each day, and so on. Further suppose that the first worker hired produces 5 units per day, the second 4 units per day, the third 3 units per day, and so on.Required:a. What is the firms MRP for each of the first five workers?b. Suppose that the monopolist is subjected to rate regulation and the regulator stipulates that it must charge exactly $58 per unit for all units sold. At that price, what is the firms MRP for each of the first five workers?c. If the daily wage paid to workers is $242 per day, how many workers will the unregulated monopoly demand?d. If the daily wage paid to workers falls to $113 per day, how many workers will the unregulated monopoly demand?e. Comparing your answers to parts c and d, does regulating a monopolys output price always increase its demand for resources?
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Waterway Industries owned 22500 shares of Carla Vista Co. purchased in 2017 for $618750. On December 15, 2020, Waterway declared a property dividend of all of its Carla Vista Co. shares on the basis of one share of Carla Vista for every 10 shares of Waterway common stock held by its stockholders. The property dividend was distributed on January 15, 2021. On the declaration date, the aggregate market price of the Carla Vista shares held by Waterway was $910000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of:________
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Sarbanes-Oxley does not require: A) companies and their independent accountants to report on the effectiveness of the companies' internal controls. B) companies to turn over responsibility for establishing and maintaining internal controls for financial reporting to auditors. C) all publicly held companies to comply with the act. D) companies to file their internal control reports with the 10-K report with the Securities and Exchange Commission.
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A company that produced 1,000 units and sold 800 units had the following costs: Direct materials $150,000 Factory building and equipment depreciation $250,000 Sales salaries $130,000 Office building and equipment depreciation $170,000 Office salaries $200,000 Factory insurance, utilities, etc. $300,000 Factory wages $100,000 Office insurance, utilities, etc. $140,000 Total product cost is: A. $800,000 B. $580,000 C. $640,000 D. $1,440,000
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Atkinson Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 2016, Atkinson budgets 2017 assembly-support costs to be $8,800,000 and 2017 direct labor-hours to be 220,000. At the end of 2017, Atkinson is comparing the costs of several jobs that were started and completed in 2017.Laguna Model Mission ModeConstruction period Feb-June 2017 May-0ct 2017Direct material costs $106,550 $127,450Direct labor costs $36,250 $41,130Direct labor-hours 970 1,000Direct materials and direct labor are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labor-hours are worked. The 2017 actual assembly-support costs were $8,400,000, and the actual direct labor-hours were 200,000. Required: 1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ? 2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b) actual costing? 3. Why might Atkinson Construction prefer normal costing over actual costing?
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Sundance Systems has the following transactions during July. July 5 Purchases 56 LCD televisions on account from Red River Supplies for $3,300 each, terms 3/10, n/30. July 8 Returns to Red River two televisions that had defective sound. July 13 Pays the full amount due to Red River. July 28 Sells remaining 54 televisions from July 5 for $3,800 each on account.Required: Record the transactions of Sundance Systems, assuming the company uses a perpetual inventory system.
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Fed could change its inflation target temporarily to offset the effect of an aggregate demand shock (a-bar). In this problem, you can calculate by how much. Suppose that the economy starts in the steady state in 2021 with pi-bar = 2%, b-bar = 1/2, m-bar = 1/2, and v-bar= 1/2. An AD shock equal to a-bar = 2% occurs in 2021.a. Using the simple monetary policy rule, show by how much inflation and short-run output change in 2021 if the Fed keeps its target inflation equal to 2%. Calculate inflation and short-run output for 2022 and 2023.b. Use an AD/AS diagram to show how a decrease in the inflation target can keep inflation and short-run output from starting to rise in 2021. Explain your diagram and what it reveals about monetary policy.c. Calculate how much the Fed needs to lower its inflation target pi-bar below 2% to keep inflation and short-run output from rising.d. Suppose the Fed adopts a Taylor rule. Show how adding a term nY (n-bar Y-bar) to the simple monetary policy rule changes the shift in the AD curve following an aggregate demand shock a-bar n the AD equation. Using the parameter values for this question, calculate the value of n-bar for the Fed that keeps inflation and short-run output from rising.
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The reported net incomes for the first 2 years of Sarasota Products, Inc., were as follows: 2020, $155,500; 2021, $188,100. Early in 2022, the following errors were discovered. 1. Depreciation of equipment for 2020 was overstated $15,900. 2. Depreciation of equipment for 2021 was understated $37,500. 3. December 31, 2020, inventory was understated $48,400. 4. December 31, 2021, inventory was overstated $15,800.Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed.
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PLEASE what is lean production? in details (GCSE) keywords.
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Upon review of the effectiveness of a strategic business decision using evidence-based analytics, business leaders may reverse course. Refer to Highlight, "Unanticipated Consequences at FedEx" What factor(s) led to reversal of the new scheduling system?
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The following transactions were completed by the company.a. The company completed consulting work for a client and immediately collected $5,500 cash earnedb. The company completed commission work for a client and sent a bill for $4,000 to be received within 30 daysc. The company paid an assistant $1,400 cash as wages for the periodd. The company collected $1,000 cash as a partial payment for the amount owed by the client in transaction be. The company paid $700 cash for this period's cleaning services. Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
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Innova uses 1,000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows. Direct materials $61.17 Direct labor 43.50 Overhead 126.50 Total $231.17 Overhead costs include variable material handling costs of $7.50, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of 60% variable costs and 40% fixed costs. A vendor has offered to supply the IMC2 component at a price of $200 per unit. Required:(a) Prepare the incremental analysis for the decision to make or buy IMC2. (b) Should Innova purchase the component from the outside vendor if Innovas capacity remains idle?
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Western Company is preparing a cash budget for June. The company has $12,000 in cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must:a. Borrow $4,500. b. Borrow $2,500. c. Borrow $10,000. d. Repay $7,500. e. Repay $2,500.
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Without checking the facts, a broker who is the sellers agent tells a buyer that the property taxes in a particular neighborhood are among the lowest in the area. The buyer relies on the brokers statement and makes an offer on a house in the neighborhood. Before closing, it is determined that the taxes are actually among the highest in the area. The buyer could seek to rescind the contract on the basis of:___________.
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An office has 5 copy machines that need to be serviced approximately once an hour either for paper, staples, or toner or repair. Each machine therefore runs approximately 1 hour before needing some attention. The average service time is 7 minutes. Copier downtime in this busy office costs approximately $20 per hour. The cost of attendant is $15 per hour. Using the finite queuing analysis, answer the following questions:________. a. What is the average number of copiers in line? b. What is the average number of copiers still in operation? c. What is the average number of copiers being serviced? d. The firm is considering adding another attendant at the same $15 rate. Should the office do it?
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Arizona Corp. acquired the business Data Systems for $305,000 cash and assumed all liabilities at the date of purchase. Datas books showed tangible assets of $310,000, liabilities of $16,000, and stockholders equity of $294,000. An appraiser assessed the fair market value of the tangible assets at $295,000 at the date of acquisition.Required:a. Compute the amount of goodwill acquired.b. Record the acquisition in a financial statements model.
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New World Deli exchanged land for a more suitable parcel of land to be used for a new restaurant. New World Deli reported the old land at its original cost of $85,000. According to an independent appraisal, the old land currently is worth $110,000. New World Deli paid $15,000 in cash to complete the transaction. Required:Record the exchange.
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Index Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 17,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $9,010. An additional 76,000 units were started into production during the month and 83,000 units were completed and transferred to the next processing department. There were 10,000 units in the ending work in process inventory of the Forming Department that were 70% complete with respect to conversion costs. A total of $445,915 in conversion costs were incurred in the department during the month.Required:1. The cost per equivalent unit for conversion costs for the month is closest to ___________. a. $5,150b. $5,300c. $5,867d. $5,050
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