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Accounting

The Milling Department: Overhead Variances

The Milling Department uses standard machine hours to allocate overhead to products. Budgeted volume for the year was 36,000 machine hours. A flexible budget is used to set the overhead rate. Fixed overhead is budgeted to be $720,000 and variable overhead is estimated to be $10 per machine hour. During the year, two products

Performance Evaluation Reports for Purchasing Departments

The purchasing department of Bradley Inc. is responsible for companywide purchasing. Its total costs are assigned to each division based on the number of purchase orders the purchasing department processes for each division. The purchasing department's fixed costs are $300,000 per year, and it expects to process15, 000 purchase

Analyze the tax implications

Analyze the tax implications of capital gains and/or losses based on the following case study. Apply the IRS codes to calculate adjusted gross income for individuals. Support your conclusions with reference to specific IRS codes and regulations. Rob and Mary purchased as investments three identical parcels of land over a seve

Investments in Internetworking Solutions

Cisco Systems, Inc., is the world's leading supplier of internetworking solutions targeted at corporate enterprise intranets and the internet. Using the instructions below, access Ciscos 2011 Annual Report. 1. Identify any amounts that Cisco reports as short-term investments, and as long-term investments. What changes have o

Active Versus Passive Investors

When calculating their AGI for taxing purposes, it is imperative that taxpayers differentiate between active (also called nonpassive) and passive activities. Generally, passive losses are not deductible as losses against active income items. Because a taxpayer can only deduct passive losses from passive activity income, any pass

Productivity Measurements from Economists and Managers

Economists and managers have long recognized the importance of productivity in determining an organization's success. Productivity is the relation between the firm's output of goods and services and the inputs necessary to produce that output. If the firm is able to produce more output with the same inputs, we say it has improve

"Wait, Is Savings Good or Bad? The paradox of Thrift"

Please write an article review on "Wait, Is Savings Good or Bad? The paradox of Thrift" which can be found at http://research.stlouisfed.org/pageone-economics/uploads/newsletter/2012/PageOneClassrmEdition0512ParadoxofThrift.pdf

Emerging Trends in Accounting

Gaines Company recently initiated a postaudit program. To motivate employees to take the program seriously, Gaines establised a bonus program. Managers receive a bonus equal to 10 percent of the amount by which actual net present value exceeds the projected net present value. Victor Holt, manager ofthe North Western Division, ha

Tax Treatment Legislation, Employee Disposable Income, and Employer Profits

Explain the impact of tax treatment legislation on employee disposable income and employer profits. Your response should be at least 300 words in length. You are required to use at least your textbook as source material for your response.( MUST BE APA FORMATTED) APA rules for formatting, quoting, paraphrasing, citing, and li

Premium Rate Case Study

Complete Case 5: Blue Pointe Healthcare: Assist with writing a case review that addresses premium development. That include quantitative and qualitative factors, conclusions and recommendations. This case illustrates the development of a premium rate by a managed care plan for submission of a bid to furnish healthcare se

Anticipated revenue and estimated rate of return

The XYZ has a choice between two warehouses. A lease at location A costs 1000 per month with a payment 2000 upfront to guarantee the 3 year lease. Location B would cost 1200 per month and would be leased from month to month. The anticipated revenue in either location is 1500 per month. the estimated rate of return is 10%. using

Taxation of Nonprofit Organizations

Your local government created an agency to serve the local community in providing low income housing. That housing agency, called the Local Housing Board, is a tax exempt agency of local government and was created to receive federal funds for housing and was intended to use those federal funds to provide housing for low income r

Estimating Production Costs

The Fancy Umbrella Company makes beach umbrellas. The production process requires 3 square meters of plastic sheeting and a metal pole. The plastic sheeting costs $0.50 per square meter and each metal pole costs $1.00. At the beginning of the month, the company has 5,000 square feet of plastic and 1,000 poles in raw materials i

Fixed, Variable, and Average Costs

Midstate University is trying to decide whether to allow 100 more students into the university. Tuition is $5000 per year. The controller has determined the following schedule of costs to educate students: Number of Students Total Costs 4000 $30,000,000 4100 $30,300,000 4200 $30,600,

Break-Even and Target Profit

Break-Even and Target Profit Nolan Estevez started his company, The Sign of Things to Come, three years ago after graduating from Eastend College. While earning his engineering degree, Nolan became intrigued by all of the neon signs he saw at bars and taverns around the university. Few of his friends were surprised to see him

Accounting Equation To Record Wages

During June, Stone Company's employees earned wages of $18,500. Social Security (FICA) withheld was $1,210.00 and Federal income taxes withheld were $2,008.00. Use the accounting equation to record wages expense and wages payable at the end of February. Stone Company will pay their February wages and pay the payroll taxes to

Rate to Generate Profit

Assume that a certain nursing home has two categories of payers. Medicaid pays $65.00 per day and private pay patients pay the established per diem, but approximately 10 percent of private-pay charges are not collected. Variable costs are $50.00 per day and fixed costs are expected to be $2,000,000. Expected volume is 100,000 pa

Central Valley Company: Contribution Margin

AQ-3 The Central Valley Company is a merchandising firm that sells a single product. The company's revenues and expenses for the last three months are given below: Central Valley Company Comparative Income Statement For the Second Quarter April May June Sal

Downhill Pty Ltd.: Overhead Cost

AQ-2 Downhill Pty Ltd. manufactures snow skis and snow boards. Overhead costs are currently allocated using a plantwide overhead rate based on direct labour hours, but the company is contemplating a shift to activity-based costing for overhead. The following data relate to 2009: Downhill Pty Ltd Budgeted Overhead Costs for

Prioritizing Projects

Companies often prioritize projects in the following four categories: Absolutely essential, Highly necessary, Economically justified, and All other. Provide one example for each category. Why do firms do this type of categorization?

Accumulated Retained Earnings Impact the Book Value

Explain how accumulated retained earnings impact the book value of a firm's stock. Say the current market price of this firm's stock on the NYSE is $56.25 per share and the book value of the stock is $45 per share: 1. Give two reasons why the market book share prices might be different. Be specific. 2. If the market fo

EPS for Common Stock: Gwinnett Park Co.

I am having problems determining the EPS for common stock. Gwinnett Park Co. reported net income of $916,800 for its fiscal year ended September 30, 2011. At the beginning of that year, 150,000 shares of common stock were outstanding. On February 1, 2011, an additional 30,000 shares were issues. On August 1, 2011, 12,000 shar

Variable Overhead Efficiency Variance Calculations

1. V Company's product has a labor standard of 2 hours per unit. For 2011, it estimates its production will be 200,000 units (400,000 DLHs). It budgets total overhead at $900,000, which results in a fixed overhead rate of $1.50 per hour. Actual data for the year includes: Actual production, 198,000 units (440,000 DLHs), Actual v

Impairment of intangible assets

A toffee company discovers that its competitor is producing and selling what appears to be its patented toffee-coated popcorn for a cheaper price. The company sues its competitor for patent infringement, but its defense is unsuccessful and it loses the lawsuit. The company's chief financial officer adds the cost for the defense

Income Taxes

California Surplus Inc. qualifies to use the installment-sales method for tax purposes and sold an investment on an installment basis. The total gain of $75000 was reported for financial reporting purposes in the period of sale. The installment period is 3 years; one-third of the sale price is collected in 2012 and the rest in 2

Capital Gain: Net Returns and Long/Short-Term Gains

(Only 2 Questions) James Welling, a 37 year old engineer has an appointment to meet you in about an hour. As you are reviewing his accounts, you notice that he is a fairly active trader. He seems to do pretty well with returns that outpace the averages, but you can't help wonder how much he ends up paying each year in capital

Determination of Missing Account Balances and Values

Balances & Values Determine the missing values (A,B,C,D, & E). Revenues................................................260 Expenses................................................ 210 Dividends Declared.................................30 Additional Investment by Ow