$420,000.

$400,000.

$430,000.

Answer:

**Question: What percentage of the variation in overhead costs is explained by the independent variable**

Answer: 82.8%

**Explanation:**

= 0.848 (84.8%), the explanation of variation in Y from the X regress

**Question: What is the total overhead cost for an estimated activity level of 60,000 direct labor-hours**

Answer: $410,000

**Explanation:**

The equation resulting from this regression analysis is:

Total overhead = Estimated fixed cost + Estimated variable cost per labor hour x Labor hours

= Intercept estimate + Coefficient estimate on independent variable x 60,000 DLH

= 110000 + 5 x 60000 DLH

= 110000 + 300000

= 410000

Answer:

**Here is the full question with the appropriate tables.**

Cortez Company is planning to introduce a new product that will sell for $108 a unit. The following manufacturing cost estimates have been made on 20,000 units to be produced the first year;

__Direct Materials $700,000 __

__Direct Labor $720,000 (= $18 per hour × 40,000 hours) __

Manufacturing overhead costs have not yet been estimated for the new product, but monthly date on total production and overhead costs for the post 24 months have been analyzed using simple linear regression. The following results were derive from the simple regression and provide the basis for overhead cost estimates for the new product.

__ Simple Regression Analysis Results. __

__Dependent variable-Factory overhead cost-Independent Variable-Direct labor hours Computed values __

__Intercept $ 120,0000 __

__Coefficient on independent variable $ 5.00 __

__Coefficient of correlation .920 __

__R² .828 __

What percentage of the variation in overhead costs is explained by the independent variable? 82.8% 91.1% 99.4% 74.5% None of the above.

What is the total overhead cost for an estimated activity level of 60,000 direct labor-hours?

$410,000.

$420,000.

$400,000.

$430,000.

**Answer:**

R² = 82.8%

$420,000

**Explanation:**

Given that:

R² = .828

The percentage of the variation in overhead costs explained by the independent variable in Y from the X regressor = %

**= 82.8%**

Given that:

direct labor-hours = 60,000

To calculate the Total overhead cost; we have:

(Total overhead) to be = Estimated fixed cost + estimated variable cost per

labor hour × labor-hours

= Intercept estimate + Coefficient estimate on

independent variable × 60,000 direct labor-hours

= $120,000 + ($5 × 60,000) direct labor-hours

= $120,000 + $300,000

** = $420,000**

∴ the total overhead cost for an estimated activity level of 60,000 direct labor-hours = ** $420,000.**

Hadrana corporation reports that at an activity level of 5,500 units, its total variable cost is $275,330 and its total fixed cost is $86,240. what would be the average fixed cost per unit at an activity level of 5,600 units? assume that this level of activity is within the relevant range.

In preparing a responsibility income statement that shows contribution margin and responsibility margin, two concepts are involved in allocating costs to the various centers. These concepts are: Group of answer choices Whether the costs are variable or fixed and whether they are material in dollar amount. Whether the costs are traceable to the responsibility center and whether the responsibility center is organized as a profit center or an investment center. Whether the costs are variable or fixed and whether they are directly traceable to the responsibility center. Whether the costs are traceable to the responsibility center and whether they are material in dollar amount. None is correct.

Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the dress: Store Travel Time Each Way Price of a Dress (Minutes) (Dollars per dress) Local Department Store 15 102 Across Town 30 87 Neighboring City 60 63 Juanita makes $58 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $58 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.Store Opportunity Cost of Time Price of a Suit Total Cost(Dollars) (Dollars per suit) (Dollars)Local Department Store 103 Across Town 88 Neighboring City 63 Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the:______. .

Back Bay Company is a price−taker and uses target pricing. Refer to the following information:Production volume602,000units per yearMarket price$34per unitDesired operating income17%of total assetsTotal assets$13,800,000What is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold.

1. The roles of money Antonio just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down payment. He's deciding between a Super and a Duper. The Super is priced at $23,599, and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes the dealership a check for $4,000 and takes out a loan for the remainder of the purchase price.

In preparing a responsibility income statement that shows contribution margin and responsibility margin, two concepts are involved in allocating costs to the various centers. These concepts are: Group of answer choices Whether the costs are variable or fixed and whether they are material in dollar amount. Whether the costs are traceable to the responsibility center and whether the responsibility center is organized as a profit center or an investment center. Whether the costs are variable or fixed and whether they are directly traceable to the responsibility center. Whether the costs are traceable to the responsibility center and whether they are material in dollar amount. None is correct.

Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the dress: Store Travel Time Each Way Price of a Dress (Minutes) (Dollars per dress) Local Department Store 15 102 Across Town 30 87 Neighboring City 60 63 Juanita makes $58 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $58 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.Store Opportunity Cost of Time Price of a Suit Total Cost(Dollars) (Dollars per suit) (Dollars)Local Department Store 103 Across Town 88 Neighboring City 63 Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the:______. .

Back Bay Company is a price−taker and uses target pricing. Refer to the following information:Production volume602,000units per yearMarket price$34per unitDesired operating income17%of total assetsTotal assets$13,800,000What is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold.

1. The roles of money Antonio just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down payment. He's deciding between a Super and a Duper. The Super is priced at $23,599, and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes the dealership a check for $4,000 and takes out a loan for the remainder of the purchase price.

The simplest remedy available to the ftc against firms charged with false, misleading, or deceptive advertising is __________ . cease and desist order consent decree corrective advertising fines

The simplest remedy available to the FTC against firms charged with false, misleading, or deceptive advertising is **consent decree**. A consent decree is defined as an agreement or settlement that ends s dispute between two or ore parties without anyone admitting to being guilty or liable of actions. This is one of the main types of settlements that happens within the United States.

Pei's savings account balance is $12,000 today. Pei opened the account exactly 7 years ago with a $10,000 deposit. Pei has made no other deposits or withdrawals. What annual interest rate (compounded annually) has the account earned?

Answer:

2.64%

Explanation:

A = P(1 + r)^n

A = $12,000

P = $10,000

n = 7 years

12,000 = 10,000(1 + r)^7

(1 + r)^7 = 12,000/10,000 = 1.2

(1 + r)^7 = 1.2

1 + r = (1.2)^1/7

I + r = 1.0264

r = 1.0264 - 1 = 0.0264

r = 0.0264 × 100 = 2.64%

Gallardo Co. is involved in a lawsuit as a result of an accident that took place September 5, 2017. The lawsuit was filed on November 1, 2017 and claims damages of $1,000,000. (a) At December 31, 2017, Gallardo's attorneys feel it is remote that Gallardo will lose the lawsuit. How should the company account for the effects of the lawsuit? (b) Assume instead that a December 31, 2017, Gallardo's attorney feel it is probable that Gallardo will lose the lawsuit and be required to pay $1,000,000. How should the company account for this lawsuit? (c) Assume instead that at December 31, 2017, Gallardo's attorneys feel it is reasonably possible that Gallardo could lose the lawsuit and be required to pay $1,000,000. How should the company account for this lawsuit?

**Answer:**

Following are the solution to the given points:

**Explanation:**

In point a, As it would be impossible that although the failure of the lawsuit is remote, the same cannot be recorded as well as avoided.

In point b, Its prosecutor thinks Gallardo's failure of the case (which would be likely to occur) is therefore likely to be reported throughout the books, that legal expenses must be paid and the civil responsibility measured at $10,00000 credited.

In point c, In the case is fairly probable, this can occur only if it is reported throughout the corresponding Balance Sheet accounts.

Gallardo Co.'s response to the lawsuit depends on their attorneys' opinions. If it's remotely believed that the company will lose, no need to recognize the liability or disclose it in financial statements. If the loss is estimated as probable, recognize the $1,000,000 liability and expense; if reasonably possible, no **liability **needs to be recognized, but disclosure in the financial statement notes is needed.

By the Generally Accepted Accounting Principles (GAAP), Gallardo Co. should account for the lawsuit differently based on the attorneys' estimation of loss.

(a) If the attorney's opinion is that it's **remote** that Gallardo will lose the suit, the company doesn't have to make a provision or disclose it in its financial statements. Since they believe the likelihood of loss is minimal, no liability needs to be recognized.

(b) If the attorney believes it's **probable** that Gallardo will lose, then according to GAAP, the company will have to recognize a liability of $1,000,000 and record a lawsuit expense in the income statement.

(c) If it's *reasonably possible* that Gallardo could lose, the company doesn't have to recognize a liability, but it should disclose the lawsuit and the potential financial impact in the notes to its financial statements.

#SPJ12

Suppose you purchase twelve call contracts on Macron Technology stock. The strike price is $65, and the premium is $2.30. If, at expiration, the stock is selling for $71 per share, what are your call options worth? What is your net profit? (Omit the "$" sign in your response.)

**Answer:**

**Call option worth = 6**

**Net profit = 3.7**

**Explanation:**

Call option worth and net profit can be calculated as follows

**DATA**

Strike price = 65

Premium = 2.30

Selling price = 71

Call option worth =?

Net profit =?

**Requirement A: Call option worth**

**Solution**

Call option worth = Selling price - strike price

Call option worth = 71 - 65

Caall option worth = **6**

**Requirement B Net profit**

**Solution**

Net profit = Selling price - (Strike price + Premium)

Net profit = 71 - (65 + 2.3)

Net profit = 71 -67.3

Net profit = **3.7**

**Answer:**

Call option worth = $6

Net Profit = $3.70

**Explanation:**

The strike price of the option is $65

The amount of premium = $2.30

The selling price = $71

Call option worth = Current Price - Strike price

Call option worth = $71 - $65

Call option worth = $6

Net Profit = Selling Price - (Strike price + Premium)

Net Profit = $71 - ($65 + $2.30)

Net Profit = $71 - $67.30

Net Profit = $3.70

The structure of repayment for most long-term bonds consists of a. fixed coupon payments every year until maturity. b. interest payments that vary by the yield to maturity each year. c. fixed coupon payments each year plus the face value or par value at maturity. d. converted payments from interest to dividends halfway to the bond's maturity. e. a balloon payment at maturity.

**Answer:**

The correct answer is letter "**B**": **interest payments that vary by the yield to maturity each year.**

**Explanation:**

**Bonds **are investments in the form of loans that companies provide. The firm pays investors a coupon yield, which is the annual or semiannual interest paid on the principal of the bond purchased. The payments continue until the bond reaches its maturity or the amount of the principal is completely paid off.

Which one of the following statements is TRUE?(A) One tool of corporate governance is choosing a good investment banker.

(B) One tool of corporate governance is how the company's charter affects the likelihood of a takeover.

(C) One tool of corporate governance is a company's tax avoidance strategy.

(D) Creditors have a claim on a firm's earning stream through the dividend payments they receive.

(E) One tool of corporate governance is stock repurchases.

**Answer:**

Correct Answer is "A"

(A) One tool of corporate governance is choosing a good investment banker.