What is a plant wide overhead rate? Why are multiple overhead rates, rather than a plant wide…

What is a plant wide overhead rate? Why are multiple overhead rates, rather than a plant wide overhear rate, used in some companies?

What is a plant wide overhead rate Why are multiple

Ratio analysisRequiredMatch each of the following ratios with the formula used to c

Ratio analysis

Required

Match each of the following ratios with the formula used to compute it.

 

1. Working capital

a. Net income ÷ Average total stockholders’ equity

2. Current ratio

b. Cost of goods sold ÷ Average inventory

3. Quick ratio

c. Current assets ÷ Current liabilities

4. Accounts receivable turnover

d. 365 ÷ Inventory turnover

5. Average days to collect

e. Net income ÷ Average total assets

6. Inventory turnover

f. (Net income ÷ Preferred dividends) ÷ Average

 

outstanding common shares

7. Average days to sell inventory

g. (Current assets – Inventory – Prepaid expenses)

 

 ÷Current liabilities

8. Debt to assets ratio

h. Total liabilities ÷ Total equity

9. Debt to equity ratio

i. 365 ÷ Accounts receivable turnover

10. Return on investment

j. Total liabilities ÷ Total stockholders’ equity

11. Return on equity

k. Net credit sales ÷ Average net receivables

12. Earnings per share

l. Current assets ÷ Current liabilities

 

WEEK 5 DISCUSSION 1 answer below »

Some physician practices will bill at rates from 100% of Medicare to 500% of Medicare.

Which one do you think is correct and why? Discuss what are you going to look for and why

*NO MORE THAN TWO PARAGRAPHS

EXERCISE 11A–1 Transfer Pricing Situations [LO5] In each of the cases below, assume that Division…

EXERCISE 11A–1 Transfer Pricing Situations [LO5]

In each of the cases below, assume that Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits.

 

 

 

  Division X:

Capacity in units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  

100,000  

100,000

Number of units being sold to outside customers . . . . . .

100,000

80,000

Selling price per unit to outside customers . . . . . . . . . . .

$50

$35

Variable costs per unit . . . . . . . . . . . . . . . . . . . . . . . . . . .

$30

$20

Fixed costs per unit (based on capacity) . . . . . . . . . . . . .

$8

$6 Division Y:

Number of units needed for production . . . . . . . . . . . . . .

Purchase price per unit now being paid to an

outside supplier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  

 

20,000

 

$47  

 

20,000

 

$34

 

Required:

1.       Refer to the data in case A above. Assume that $3 per unit in variable selling costs can be avoided on intracompany sales. If the managers are free to negotiate and make decisions on their own, will a transfer take place? If so, within what range will the transfer price fall? Explain.

2.       Refer to the data in case B above. In this case, there will be no savings in variable selling costs on intracompany sales. If the managers are free to negotiate and make decisions on their own, will a transfer take place? If so, within what range will the transfer price fall? Explain.

 

1*An investment that costs $50,000 will return $15,000 operating cash flows per year for five… 1 answer below »

1*An investment that costs $50,000 will return $15,000 operating cash flows per year for five years. Determine the net present value of the investment if the required rate of return is 14 percent. Should the investment be undertaken?

-Yes, the profit is $25,000.

-No, the accounting return is less than 14%.

-No, the net present value is negative at $11,045.

-Yes, the net present value is positive at $1,496. 50.

What is a static planning budget? What is a static planning budget

What is a static planning budget?

What is a static planning budget

Calculate the variable costs per thousand bottles for one-separation rounds, two-separation… 1 answer below »

General guidelines for completing this assignment: A minimum of three relevant and credible sources that can be used to support the concepts discussed in the case. APA formatted annotated bibliography. Develop a three paragraph response for each resource: The first paragraph provides a brief summary of the author's purpose,covering the main points of the work. The second paragraph points out the strengths and evaluates its methods and presentation. The third reflects on how the source may be used for the case study. Each cited source needs to be specifically linked to the concepts in the case.
***************

Here are the questions you need to answer for this case: Calculate the variable costs per thousand bottles for one-separation rounds, two-separation rounds, and two-separation ovals, assuming that all ovals are printed on the machine with the automatic feature for ovals. Do one set of calculations for the Albany area (scrap included) and another for New York–New Jersey (freight included, but not scrap). Only do one bottle size (the smallest) and assume the average order size is 10,000 bottles. Prepare a suggested price list for the Albany area. Consider only one-separation rounds and two-separation rounds or ovals, for only the smallest size bottle

As a guide to completing this case you should consider the following questions: How did Mr. Lipman's goal of a 30 percent margin (at capacity) affect your price recommendations? Which products should the company attempt to sell in New York–New Jersey? Explain.

Why would a firm ever offer a price on a product that is below its full cost?

Why would a firm ever offer a price on a product that is below its full cost?

 

Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 2

Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following:DepartmentCuttingFinishing Direct labor-hours6 20 Machine-hours80 4 Materials requisitioned$500 $310 Direct labor cost$70 $150 Compute the total manufacturing cost assigned to Job 203.

Non-accounting : n1 = 13 S2 1 = 210.2Accounting : n2 = 10 S2 2 = 36.5A professor in the accounting..

Non-accounting : n1 = 13 S2 1 = 210.2Accounting : n2 = 10 S2 2 = 36.5A professor in the accounting department of a business school would like to determine whether there is more variability in the final exam scores of students taking the introductory accounting course who are not majoring in accounting than for students taking the course who are majoring in accounting. Random samples of 13 non-accounting majors and 10 accounting majors are selected from the professor’s class roster in his large lecture, and the following results are computed based on the final exam scores: At the 0.05 level of significance, is there evidence that there is more variability in the final exam scores of students taking the introductory accounting course who are not majoring in accounting than for students taking the course who are majoring in accounting? Assume that the population final exam scores are normally distributed