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# Accounting

### Employer Tax Rates: Calculate SUTA, FUTA, and Unemployment

Sam's company's payroll for the year is \$737,910. Of this amount \$472,120 is for wages paid in excess of \$7,000 to each individual employee. The SUTA rate is Sam's Company's state is 2.9% on the first \$7,000 for each employee's earnings Compute: (a) Net FUTA tax \$... (b) Net SUTA tax \$... (c) Total unemployment taxes \$...

### La Fiesta Mexican Restaurant

Need a paragraph for each explanation in your own words (not word for word from a website) La Fiesta Mexican Restaurant is a family-owned business located at One Plaza Place, Springfield, MO, 63120, incorporated on January 1, 2006, electing S status, and began business soon thereafter. The owners are Jose Rodriguez, President;

### Inflation, on average, makes people neither richer nor poorer.

Inflation, on average, makes people neither richer nor poorer. Therefore it has no cost. True or false? Explain.

### Matching Asset Mix and Financing Plans - Winfrey Diet Food Corp

Winfrey Diet Food Corp. has \$4,500,000 in assets Temporary current assets \$1,000,000 Permanent current assets 1,500,000 Fixed Assets 2,000,000 Total Assets 4,500,000 Short-term rate are 8 percent. Long-term rates are 13 percent Earnings before interest and taxes are 960,000. The tax r

### Reasons for issuing FASB Statement No.144

Analyze the reason(s) for issuing FASB Statement No. 144 and compare and contrast the accounting information on this statement, Statement No. 121, and Accounting Principles Board Opinion (APB) # 30. DISCUSS THESE; (1) Analysis of the reason(s) for issuing FASB Statement No. 144 (2) Differences among FASB Statement No. 144

### Weller Company: Predetermined Overhead Rates

Please see attached problem for properly formatted charts. Weller Company's flexible budget for manufacturing overhead (in condensed form) follows: Overhead Costs Cost formula Machine hours (per machine hour) 8,000 9,000 10,000 Variable cost \$1.05 \$8,400 \$9,450 \$10,500 Fixed cost 24,800 24,800 24,8

### Harmon Household Products: Material Variance

Harmon Household Products. Inc. manufactures a number of consumer items for general household use. One of these products, a chopping board, requires expensive hardwood. During a recent month, the company manufactured 4,000 chopping boards using 11,000 board feet of hardwood. The hardwood cost the company \$18,700. The company

### Contrasting ROI and Residual Income - JW & Associates of Boston

Please see attached. JW & Associates of Boston has two divisions that operate in Allston and Chelsea. Selected data on the two divisions follow: Division Allston Chelsea Sales...... \$9,000,000 \$20,000,000 Net operating incom

### A three-month Treasury bill and a six-month bill both sell at a discount of 10 percent.

A three-month Treasury bill and a six-month bill both sell at a discount of 10 percent. Which offers the higher annual yield?

### Purchase Production - NEC Company

NEC Company produces 8,000 part each year, which are used in the production of one of its products. The unit product cost of part is \$36, computed as follows: Variable Production Costs .......... \$16 Fix Production Costs ............... 20 Unit Product Cost .................. \$36 The parts can be purchased from an o

### Manufacturing Overhead - Silo's Company

Silo's Company uses a predeterminated overhead rate based on labor-hours to apply manufacturing overhead to jobs. Estimate and actual data for direct labor and manufacturing overhead for last year are as follows: Estimated Actual Direct Labor Hours.............600,000 550,000 Manufacturin

### Compumeds Company: Manufacture Process

Compumeds Company manufactures products A and B from a joint process. Product A has been allocated \$2,500 of the \$20,000 in total joint costs associated with the production of 1,000 units each of A and B each year. A can be sold at the split-off point for #3 per unit, or it can be processed further with additional costs of \$1,00

### Net Operating Income - LLC Corporation

Please verify my answer. LLC Corporation has received a request for a special order of \$6,000 units of product Z50 for \$21.20. Product Z50's unit product cost is \$16.20, determine as follows: Direct Materials ........... \$6.10 Direct Labor ............... \$4.20 Variable Manufacturing Overhead ................... \$2.30 F

### Impact on operating income

NEC Company produces 8,000 part each year, which are used in the production of one of its products. The unit product cost of part is \$36, computed as follows: Variable Production Costs .......... \$16 Fix Production Costs ............... 20 Unit Product Cost .................. \$36 The parts can be purchased from an outsi

### Lock Box

A company with most of its customers in New York, has decided to consider using a lock box to help improve it's cash flow. The bank has indicated it will be able to reduce the company's collection float by 3 days. Given the following details should the lock box option be used ? Average number of payments per day in new York

### Effect on cash position

Indicate whether the following corporate actions Increase, Decrease, or cause no change to the cash position. ? Cash is paid for raw materials purchased for inventory ? A dividend is paid ? Merchandise is sold on Credit ? Common Stock is issued ? Raw material is purchased for Inventory on Credit ? A piece of machinery is p

### Discontinuance: Vanilli Company

Vanilli Company plans to discontinue a division that generates a total contribution margin of \$20,000 per year. Fixed overhead associated with this division is \$50,000, of which \$5,000 cannot be eliminated. The effect of this discontinuance on Vanilli's operating income would be an increase of \$______?

### Manufacturing Overhead - Silo's Company

Silo's Company uses a predeterminated overhead rate based on labor-hours to apply manufacturing overhead to jobs. Estimate and actual data for direct labor and manufacturing overhead for last year are as follows: Estimated Actual Direct Labor Hours.............600,000 550,000 Manufacturing o

### Opportunity Costs in Acquisitions

Company X is a four year-old advertising agency that has grown rapidly in the last two years. The company specializes in marketing for professional and semi-professional sports teams, but in the last two years they have branched out to additional markets, such as fitness clothing, energy foods, and sports equipment. Company X

### Split off point - Wallace Company

Please see attached problem. Wallace Company produces two products from a common input. Data relating to the two products are given below: Product A Product B Sales value at the split off point.... \$60,000 \$120,000 Allocated joint product costs... \$45,000 \$90,000 Sales value after further processing... \$90,00

### Calculating Production Runs

Details: You have just met with the Director of Purchasing. He has been attempting to reduce his costs by placing fewer, but larger, orders for raw materials. You suspect that his department's actions have been contributing to your organization's high COS. Your assignment is to calculate the EOQ/ELS for the following two cases.

### FASB and EITF pronouncements dealing with extraordinary items.

Several FASB and Emerging Issues Task Force (EITF) pronouncements deal with accounting for extraordinary items. If you should search the Financial Accounting and Reporting Section (FARS) database and the Financial Accounting Standard Board (FASB) Web site to identify the FASB and EITF pronouncements dealing with extraordinar

### Lockbox System - Garden Groves, Inc.

Garden Groves, Inc., a Florida-based company, has determined that the majority of its customers are located in the New York City area. Therefore, it is considering using a lock box system offered by a bank located in New York. The bank has estimated that use of the system will reduce collection float by three dates. Based on the

### Flexible Budgets

Please see attached problem. Item Cost Formula Utilities... \$6,000 per year, plus \$0.30 per machine hour (MH) Supplies... \$10,000 per year, plus \$0.80 per machine hour Depreciation... \$25,000 per year Indirect labor... \$21,000 per year, plus \$0.40 per machine hour Using these cost formulas, complete the following f

### Flexible Budgets - Hardball Corporation

Hardball Corporation uses the following cost formulas in its flexible budget for manufacturing overhead: Item Cost Formula Utilities... \$6,000 per year, plus \$0.30 per machine hour (MH) Supplies... \$10,000 per year, plus \$0.80 per machine hour Depreciation... \$25,000 per year Indirect labor... \$21,000 per year, plus \$

### Net Income - Streuling Company

Net Income A summary of the operations of Streuling Company for the year ended May 31, 2006, is shown below. Advertising expense . . . . . . . . . \$ 2,760 Supplies expense . . . . . . . . . . . 37,820 Rent expense . . . . . . . . . . . . . . 1,500 Salaries expense . . . . . . . . . . . . 18,150 Miscellaneous expense . . .

### Kim Edwards and Chris Phillips Retirement

P3-9. Kim Edwards and Chris Phillips are both newly minted 30-year old MBAs. Kim plans to invest \$1,000 per month into her 401(k) beginning next month, while Chris intends to invest \$2,000 per month, but he does not plan to begin investing until 10 years after Kim begins investing. Both Kim and Chris will retire at age 67, and t

### Cycle Time - BOSE Corp.

During the last quarter, BOSE Corp. recorded the following average times per order received and processed: Wait time to start production.... 9.0 days Inspection time..... 0.8 days Process time... 3.0 days Move time... 0.2 days Queue time... 6.0 days a. Compute the throughput time. Throughput time =

### Standard Costs: Dana Corp's Operations

Please assist with the attached problem. Selected data relating to Dana Corp's operations for April are given below: Number of units produced.... 500 Units Number of actual direct labor hours worked... 1,400 Hours Total actual direct labor cost.... \$10, 850 The standard cost card indicates that 2.5 hours of di

### Expected Value and Standard Deviation - Myers Business Systems

Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given below: Possible Sales Market Reaction in Units Probabilities Low response . . . . . . . . . . . . . 20