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Accounting

Compute manufacturing overhead variances and interpret findings

The following information was taken from the annual manufacturing overhead cost budget of the Fernetti Company. Variable manufacturing overhead costs $33,000 Fixed manufacturing overhead costs $21,450 Normal production level in labor hours 16,500 Normal production level in units 4,125 Standard labor hour

Multiple choice

A corporation issued $600,000 of 8%, 5-year bonds on January 1, at 102. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization, the amount of bond interest expense to be recognized on July 1 is a. $22,800. b. $24,000. c. $25,200. d. $48,000. Amway Comp

Standards

Should there be more of a standard regarding the income statement or is it acceptable that there is some room for variances? Support your response.

Foreign Tax credit calculations

Valencia Corporation, a U.S. corporation, has 2003 taxable income from U.S. sources of $300,000 and from foreign sources of $120,000 before considering the impact of foreign taxes. It paid $20,000 of foreign taxes during 2003. a. If Valencia's foreign taxes are not creditable, calculate its U.S. tax liability for 2003. b.

Becky Sherrick's regular hourly wage rate is $14...

BE2-4 Becky Sherrick's regular hourly wage rate is $14, and she receives an hourly rate of $21 for work in excess of 40 hours. During a January pay period, Becky works 45 hours. Becky's federal income tax withholding is $95, her FICA tax withheld is $53.20, and she has no voluntary deductions. Compute Becky Sherrick's gross e

Construct a p-chart for 95 percent confidence (1.96) and plot each of the months. If the next three months show crime incidence in this area as: What comments can you make regarding the crime rate?

The state and local police department are trying to analyze crime rates so they can shift their patrols from decreasing-rate areas to areas where rates are increasing. The city and county have been geographically segmented into areas containing 5,000 residences. The police recognize that not all crimes and offenses are reported:

7-9

Illinois Power & Heat just spend $5 million repairing one of its electrical generating stations that was damaged by a tornado. The loss was uninsured. Management has asked the public service commission for approval to treat the $5 million as an asset for rate-making purpose rather than as an allowed expense. What difference w

Compute the amount of overhead

I would like to know what the problem means by *Compute the amount of overhead to be allocated to each product under activity-based costing*. Isn't it the amount of overhead already calculate? (See attached file for full problem description)

Short Financial Management questions

1. As a general rule, the maturity of assets should be matched with the maturity of the financing. When (if ever) do you think financial managers should deviate from this principle? 2. In theory, stock price is based on the present value of future cash flows. Could you use this principle to explain the stock price of a start-

Optimal decision through decision tree modeling for Hale's TV show

Hale's TV Productions has acquired a script for a pilot episode of a new television show. A competitor has heard of the script, and offered Hale $100,000 for the script and rights to the series concept. If Hale decides to produce the pilot and market the series themselves, they'll face after-tax production costs of $100,000.

Computation of Bond Liability for Lance Armstrong Inc.

(Computation of Bond Liability) Lance Armstrong Inc. manufactures cycling equipment. Recently the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise fund

Accounting assumptions, principles, and constraints

(Assumptions, Principles, and Constraints) Presented below are assumptions, principles, and constraints: 1. Economic entity assumption 5. Historical cost principle 9. Materiality 2. Going concern assumption 6. Matching principle 10. Industry practices 3. Monetary unit assumption 7. Full disclosure principle 11. Con

Earning per share

On December 31,2003, Bercalir, Inc. had 200,000,000 shares of common stock and 3,000,000 shares of 9%, $100 par, value cumulative preferred stock issued and outstanding. There were no preferred dividends in mrears as of January I, 2004. On March I, 2004, Bercalir purchased 24,000,000 shares of its common stock as treasuIy stock.

Problems

Abnormal earnings are: AEt= Actual earning t-Required or "normal" earnings t Which may be expressed as Aet= NOPAT t- (r x BVt-1) Where NOPAT is the firm's net operating profit after taxes, r is the cost of equity capital and BV t-1. Required: Solve the following problems: 1. If NOPAT is $5,000, r=15%, and BVt-1 is $50

Comprehensive Costing

Organet Stamping Company manufactures a variety of products made of plastic and aluminum components. During winter months, substantially all production capacity is devoted to lawn sprinklers for the following spring and summer seasons. Other products are manufactures during the remainder of the year. Because a variety of pro

Financial losses and tax savings

True of False 1) Capitol Cost Allowance and a Terminal loss result in tax savings if a firm has positive taxable income, however, a Recapture of Income and Capital Gains increases taxes payable 2) All else equal, a decrease in the corporate tax rate decreases the value of the deprecation tax shield

Prepare an analysis of the overhead costs

You have been asked to prepare an analysis of the overhead costs in the order processing department of a mail order company like Lillian Vernon Corporation. As an initial step, you prepare a summary of some events that bear on overhead for the most recent period. the variable overhead flexible-budget variance was $5000 unfavorab

Calculate long-term debt to assets for 2006: Phoenix Corporation

Condensed financial data are presented below for the Phoenix Corporation: 2006 2005 Accounts receivable 267,500 230,000 Inventory 312,500 257,500 Total current assets 670,000 565,000 Intangible assets 50,000 60,000 Total assets 825,000 695,000 Current liabilities 252,500 200,000 Long-term liabi

Product price per unit

(See attached file for full problem description) --- CASES 7-61 Bevans Company makes two products, product X and product Y. Bevans has produced product X for many years without generating any hazardous wastes. Recently, Bevans developed product Y, which is superior to product X in many respects. However, production of prod

F1

Accounting is an information and measurement system that?

Tax problems

4. Oliver and Wendell are the two equal shareholders of Holmes Inc, an S corporation. It made an S election in its first year of operations. Each shareholder has a $10,000 basis in his stock at the beginning of the year. The corporation has $56,000 of net income from operations for the year and made a cash distribution of $80,00

Return on assets

How to calculate return on assets ? annual sales $5,000,000 with a net after tax margin of 5% and a sales to assets ratio of 4

Float measurement

What are some ways to manage your float and how do we measure float?

Accounting Questions

Fixed cost of restaurant = 21000/month avg bill = 19/customer variable cost s= 10.6 per meal 1. how many meals to attain profit of 8400/month 2. what is break even point per month 3 if fixed costs/rent go to 29925/mo and vaiable costs go to 12.50/meal, af price increase to 23/meal how many meals needed to make 8400/month