Ultimate Business Study Guide - Questions & Answers

Liukko Corporation's standard wage rate is $14.90 per direct labor-hour (DLH) and according to the standards, each unit of output requires 2.8 DLHs. In June, 1,800 units were produced, the actual wage rate was $15.80 per DLH, and the actual hours were 5,110 DLHs. The Labor Efficiency Variance for June would be recorded as a:__________. a. credit of $1,043. b. debit of $1,043. c. credit of $1,106. d. debit of $1,106.
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Kelly Realty loaned money and received the following notes during 2018:NoteDatePrincipal AmountInterest RateTerm(1)Oct. 1$28,0006%1 year(2)Jun. 3022,00010% 9 months(3)Sep. 1914,00014% 90 daysRequired:1. Determine the maturity date and maturity value of each note.2. Journalize the entries to establish each note Receivable and to record collection of principle and interest at maturity.Include a single adjusting entry on December 31, 2018, the fiscal year-end, to record accrued interest revenue on any applicable note.Explanations are not required.(Round to the nearest dollar)
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Tulip growing is a perfectly competitive industry, and all tulip growers have the same cost curves. The market price of tulips is $25 a bunch, and each grower maximizes profit by producing 2,000 bunches a week. The average total cost of producing tulips is $20 a bunch, and the average variable cost is $15 a bunch. Minimum average variable cost is $12 a bunch.Draw a graph representing a tulip growers short-run cost curves (ATC, AVC, and MC curves). On the vertical axis, label the $25.00 price, average total cost ($20.00) and average variable cost ($15.00) of producing 2,000 tulips, and the lowest possible average variable cost of $12.00.a. What is the economic profit that each tulip grower is making in the short run? Please show your calculations.b. What is the lowest price at which the tulip grower will produce (instead of shutting down)?c. What is each growers profit at the shutdown point?d. At a price of $25.00 per bunch, would we expect entry or exit in the long run?
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An insurance company monitors customer complaints. There are several possible problem categories including wrong bill sent, charges too high, failure to add new coverage, deletion of existing coverage and incorrect address. Determine the percentage that each problem contributes to customer complaints.
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A shift in the supply curve can be caused by:A. a change in buyers' incomesB. a change in the price of a goodC. a change in one of the determinants of supplyD. a shift in demand.
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Veys Limos, Inc., is considering the purchase of a limousine that would cost $155,776, would have a useful life of 7 years, and would have no salvage value. The limousine would bring in cash inflows of $32,000 per year in excess of its cash operating costs. Determine the internal rate of return on the investment in the new limousine.
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Maria is a high school senior. She wants to go to the local community college and become a nurse. Her grades are average, but she comes from a low-income family. What could she do to in order to afford the next step in her dream to become a nurse?
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Explain the difference between a bid price and an asked price and explain why the prices are different
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An analysis of comparative balance sheets, the current years income statement, and the general ledger accounts of Wellman Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.1. Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity.(a) Payment of interest on notes payable.(b) Exchange of land for patent. (c) Sale of building at book value. (d) Payment of dividends. (e) Depreciation. (f) Receipt of dividends on investment in stock. (g) Receipt of interest on notes receivable. (h) Issuance of common stock. (i) Amortization of patent. (j) Issuance of bonds for land.
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Your boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were no deductions as their Christmas bonuses. None of the employees have reached the Social Security wage base for the year. What is the gross-up amount for each of the following employees? a) The tax rate on bonuses is 28%. b) The Social Security (6.2%) and Medicare taxes (1.45%) must be added to this rate. c) Yves St. John, regular gross pay per period $1425 Kim Johnson, regular gross pay per period $2,400 d) Michael Hale, regular gross pay per period $2,240
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Lincoln Company issued $ 90,000 of 10-year, 9 % bonds payable on January 1, 2018. Lincoln Company pays interest each January 1 and July 1 and amortizes discount or premium by the straight-line amortization method. The company can issue its bonds payable under various conditions.Requirements 1. Journalize Anderson Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at face value. Explanations are not required. 2. Journalize Anderson Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at 92. Explanations are not required. 3. Journalize Anderson Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at 103. Explanations are not required. 4. Which bond price results in the most interest expense for Anderson Company? Explain in detail.
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The PMI "Code of Ethics and Professional Conduct" provides guidelines for ethical behavior by project management practitioners. It describes four main values that should guide a project managers actions. List these four values and give one example per value of why it should guide a project managers actions.
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Rabah has just been hired as manager of a health spa. The owner has commissioned a market study that estimates the per person (average consumer's) monthly demand for visiting the health spa to be q = 10 - 1/2p. The cost of operating is C(q) = 2q, where q is the number of visits. The owner has been charging a $64 per month membership fee and a $4 per-visit fee. Part of Rabah's salary is 10% of the monthly profits. 1. What per-visit fee p and per month membership fee F should Rabah suggest from the following options? Select one: a. p = 2, F = 80 b. p = 3, F = 91. c. p = 3, F = 90 d. p = 2, F = 81
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An investor owns 5,000 shares of IBM stock, $105 per share. He thinks that there is no large rise and possible drop in price. This investor decides to sell 50 December 110 call option at $4, receiving $20,000. Note: Each call option contract provides for the right to buy 100 shares of stock. December 110 call option means that the strike price of the call is 110 and it matures in December.Required:1. If IBM stock price rises from $105 to $112, the profit associated with the passive strategy is __________ and the profit associated with the covered call writing strategy is ____________.
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An individual is known to their coworkers for keeping promises. The individual promised that they would attend a scheduled project meeting or send a representative from their team. The meeting organizer just received an email from the individual that they would not be able to attend the scheduled project meeting. a. Which one of the following conclusions is best supported by the passage above? 1. The organizer is expecting a representative from the individual's team to attend the meeting. 2. No one from the individual's team will be attending the meeting. 3. Coworkers believe that the individual never breaks promises.
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Shawl Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product F02E specifies 5.5 direct labor-hours per unit of F02E. The standard variable overhead rate is $6.80 per direct labor-hour. During the most recent month, 1,560 units of product F02E were made, and 8,700 direct labor-hours were worked.The actual variable overhead incurred was $52,635.Required:a. What was the variable overhead rate variance for the month?b. What was the variable overhead efficiency variance for the month?
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Motivational theory applications argue for recognizing individual differences. They also suggest paying attention to members of diverse groups. Is this a contradiction? Why or why not? Compare and contrast two motivational theories (one content and one process theory) regarding how they can support diversity within teams.
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Required: Access the American Eagle 2014 Annual Report/10K (In the appendix to the textbook or obtain online). Look at the financial statements and Notes to the financial statements closely and attempt to infer what kinds of information they report. Then, answer the following questions based on the Report.1. What type of product does it sell?2. On what date does American Eagle Outfitters most recent reporting year end?3. Are its financial statement audited by independent CPA's?4. Does its total assests increase or decrease over the last year?
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During 2018, its first year of operations, Pave Construction provides services on account of $142,000. By the end of 2018, cash collections on these accounts total $101,000. Pave estimates that 25% of the uncollected accounts will be bad debts. Required: 1. Record the adjustment for uncollectible accounts on December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Journal entry worksheet Record the adjustment entry for Uncollectible Accounts Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Bad debt expense 10,250 Allowance for uncollectible accounts 10,250 2. Calculate the net realizable value of accounts receivable.
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Aquaguard manufactures three models of water purifiers in three separate plants at Taiwan. These plants serve the demand in Europe. All three models sell at a unit price of $100 and the holding cost is 5% of the selling price per month. The monthly demand for these models is normally distributed with the following parameters: Model 1: Mean 1000, SD 300 Model 2: Mean 1000, SD 300 Model 3: Mean 1000, SD 300 The demand for Model 1 and Model 2 has a correlation coefficient of (-) 0.35, while that for Model 3 is independent of the other two models. The company wishes to make two of the models in one plant by using flexible technology. Required:a) Which two models should Aquaguard choose in order to minimize production variability in the new plant? (as measured by the coefficient of variation).
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Potatoes cost Janice $1.25 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. If she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30, how many pounds of potatoes will she purchase? What if she only had $2.00 to spend? Janice will purchase with her original $5.00 of income. Janice will purchase when her income is $2.00
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Trout farming is a perfectly competitive industry and all trout farms have the same cost curves. When the market price is $25 a fish, farms maximize profit by producing 200 fish a week. At this output, average total cost is $20 a fish and average variable cost is $15 a fish. Minimum average variable cost is $12 a fish.Required:i) If the price falls to $20 a fish, will a trout farm produce 200 fish a week. Explain why or why not?ii) If the price falls to $12 a fish, what will the trout farmer do?iii) What are two points on a trout farm's supply curve?
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Charlie Company had $1,800 of supplies on hand at January 1. During the year, supplies with a cost of $4,000 were purchased. At December 31, the actual supplies on hand amount to $1,300. After the adjustments are recorded and posted at December 31, determine the balances in the Supplies and Supplies Expense accounts.Supplies Supplies Expensea. $1,300 $4,500b. $5,300 $5,800 c. $1,300 $5,800 d. $1,800 $4,500
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Arlene is single and has taxable income of $18,000. Her tax liability is currently $2,236. She has the opportunity to earn an additional $5,000 if she accepts and completes a special project at work. There are no additional expenses to offset the $5,000 income. Consequently, Arlene will have a tax liability of $2,986. Required:1. If she accepts the special project. Arlene has a marginal tax rate of __________.
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