Questions
Use Wage Bracket Method Table For DEC 31, 2018. To determine the answer. TABLE 2—BIWEEKLY Payroll...

Use Wage Bracket Method Table For DEC 31, 2018. To determine the answer.

TABLE 2—BIWEEKLY Payroll Period
(a) SINGLE person (including head of household)— (b) MARRIED person
If the amount of wages (after subtracting withholding allowances) is: The amount of income tax
to withhold is:
If the amount of wages (after subtracting withholding allowances) is: The amount of income tax
to withhold is:
Not over $142 $0 Not over $444 $0
Over— But not over— of excess over— Over— But not over— of excess over—
$142 —$509 $0.00 plus 10% —$142 $444 —$1,177 $0.00 plus 10% —$444
$509 —$1,631 $36.70 plus 12% —$509 $1,177 —$3,421 $73.30 plus 12% —$1,177
$1,631 —$3,315 $171.34 plus 22% —$1,631 $3,421 —$6,790 $342.58 plus 22% —$3,421
$3,315 —$6,200 $541.82 plus 24% —$3,315 $6,790 —$12,560 $1,083.76 plus 24% —$6,790
$6,200 —$7,835 $1,234.22 plus 32% —$6,200 $12,560 —$15,829 $2,468.56 plus 32% —$12,560
$7,835 —$19,373 $1,757.42 plus 35% —$7,835 $15,829 —$23,521 $3,514.64 plus 35% —$15,829
$19,373 . . . $5,975.72 plus 37% —$19,373 $23,521 . . . $6,206.84 plus 37% —$23,521
Source: Internal Revenue Service.

Use the appropriate table to determine the amount to withhold for federal income tax from each of the following biweekly wages (biweekly withholding allowance = $159.60):

Patrick Patrone (single, 2 allowances), $925 wages $
Carson Leno (married, 4 allowances), $1,195 wages $
Carli Lintz (single, 0 allowances), $700 wages $
Gene Hartz (single, 1 allowance), $2,500 wages $
Mollie Parmer (married, 2 allowances), $3,600 wages $

In: Accounting

Describe the four (4) steps in Process Costing and what is a Process Cost Summary.

Describe the four (4) steps in Process Costing and what is a Process Cost Summary.

In: Accounting

Exercise 12-3 (Video) Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at...

Exercise 12-3 (Video) Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million; six months ago, Hillsong spent $55,000 to keep it operational. The existing sewing machine can be sold today for $240,352. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years 1 to 7: Year 1 $390,600 2 400,200 3 410,000 4 425,200 5 432,400 6 435,500 7 436,300 The new sewing machine would be depreciated according to the declining-balance method at a rate of 20%. The salvage value is expected to be $380,500. This new equipment would require maintenance costs of $94,900 at the end of the fifth year. The cost of capital is 9%. Click here to view PV table. Use the net present value method to determine the following: (If net present value is negative then enter with negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round present value answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Calculate the net present value. Net present value $ Determine whether Hillsong should purchase the new machine to replace the existing machine?

In: Accounting

With reference to provisions in the Contracts Act 1950 and case-law, discuss the following: Duties of...

With reference to provisions in the Contracts Act 1950 and case-law, discuss the following:
Duties of principal towards his agent.

In: Accounting

David Davis operates a kiosk in downtown Chicago, at which he sells one style of baseball...

David Davis operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $36 and sells them for $42. David’s current breakeven point is 33,600 hats per year.

(a1)

Correct answer iconYour answer is correct.

Calculate contribution margin per unit.

Contribution margin per unit

$enter Contribution margin per unit in dollars

eTextbook and Media

  

Attempts: unlimited

(a2)

Correct answer iconYour answer is correct.

What is David’s current level of fixed costs? (Use the rounded contribution margin per unit calculated in the previous part.)

Current level of fixed costs

$enter current level of fixed costs amount in dollars

eTextbook and Media

  

Attempts: unlimited

(b)

Correct answer iconYour answer is correct.

Assume that David’s fixed costs, variable costs, and sales price were the same last year, when he made $47,040 in net income. How many hats did David sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part.)

enter the number of hats

hats

eTextbook and Media

  

Attempts: unlimited

(c)

Correct answer iconYour answer is correct.

What was David’s margin of safety last year?

Margin of safety

$enter Margin of safety in dollars

eTextbook and Media

  

Attempts: unlimited

(d)

Correct answer iconYour answer is correct.

If David wants to earn $84,672 in net income, how many hats must he sell, assuming a 30% tax rate? (Use the rounded contribution margin per unit calculated in the previous part.)

enter the number of hats

hats

eTextbook and Media

  

Attempts: unlimited

(e)

Correct answer iconYour answer is correct.

How many hats must David sell to break even if his supplier raises the price of the hats to $37 per hat? (Use the rounded contribution margin per unit for computation.)

enter the number of hats

hats

eTextbook and Media

  

Attempts: unlimited

(g)

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

David has decided to increase his sales price to $43 to offset the supplier’s price increase. He believes that the increase will result in a 5% reduction from last year’s sales volume. What is David’s expected net income, assuming a 30% tax rate?

Net income

$enter net income amount in dollars

In: Accounting

Smart Company prepared its annual financial statements dated December 31. The company reported its inventory using...

Smart Company prepared its annual financial statements dated December 31. The company reported its inventory using the FIFO inventory costing method and failed to evaluate its net realizable value at December 31. The preliminary income statement follows: Sales Revenue $ 302,000 Cost of Goods Sold Beginning Inventory $ 41,000 Purchases 204,000 Goods Available for Sale 245,000 Ending Inventory 95,400 Cost of Goods Sold 149,600 Gross Profit 152,400 Operating Expenses 72,000 Income from Operations 80,400 Income Tax Expense (30%) 24,120 Net Income $ 56,280 Assume you have been asked to restate the financial statements to incorporate LCM/NRV. You have developed the following data relating to the ending inventory: Item Quantity Purchase Cost Net Realizable Value per Unit Per Unit Total A 3,000 $ 5 $ 15,000 $ 6 B 2,000 8 16,000 6 C 8,100 4 32,400 6 D 3,200 10 32,000 7 $ 95,400 TIP: Inventory write-downs do not affect the cost of goods available for sale. Instead, the effect of the write-down is to reduce ending inventory, which increases Cost of Goods Sold and then affects other amounts in the income statement.

In: Accounting

During 2020, Juan Gonzalez, president of Acme Inc. was paid a semimonthly salary of $6,100. Computer...

During 2020, Juan Gonzalez, president of Acme Inc. was paid a semimonthly salary of $6,100. Computer the amount of FICA taxes that should be withheld from him.

A. 9th paycheck
B. 22nd paycheck
C. 24th paycheck
D. If Juan's year to date earnings as of his 24th paycheck are $146,400 and his year-end bonus is $100,00, how much is the additional HI tax withheld?

In: Accounting

Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs...

  1. Pinter Company had the following environmental activities and product information:

    1. Environmental activity costs

    Activity Costs
    Design products (to reduce pollution) $ 118,800     
    Test for contamination 211,200     
    Treat toxic waste 660,000     
    Operate pollution control equipment 528,000     

    2. Driver data

    Solvent X Solvent Y
    Design hours 2,600           4,000          
    Testing hours 4,700           12,900          
    Pounds of waste 500           21,500          
    Machine hours 2,600           85,400          

    3. Other production data

    Solvent X Solvent Y
    Nonenvironmental production costs $3,080,000      $6,028,000     
    Units produced 440,000      440,000     

    Required:

    1. Calculate the activity rates that will be used to assign environmental costs to products.

    Design products $ per design hour
    Testing $ per test hour
    Treating waste $ per pound of waste
    Operating equipment $ per machine hour

    2. Determine the unit environmental and unit costs of each product using ABC. If required, round your answers to the nearest cent.

    Activities Solvent X Solvent Y
    Unit environmental cost $ $
    Unit cost $ $

    3. What if the design costs increased to $208,800 and the cost of toxic waste decreased to $330,000? Assume that Solvent Y uses 8,000 out of 16,000 design hours. Also assume that waste is cut by 50 percent and that Solvent Y is responsible for 6,270 of 6,600 pounds of toxic waste. What is the new environmental cost for Solvent Y? If required, round your intermediate calculations and answer to the nearest cent.
    $ per unit

In: Accounting

Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat...

Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,060 hours each month to produce 2,120 sets of covers. The standard costs associated with this level of production are:

Total Per Set
of Covers
Direct materials $ 43,460 $ 20.50
Direct labor $ 9,540 4.50
Variable manufacturing overhead (based on direct labor-hours) $ 4,664 2.20
$ 27.20

During August, the factory worked only 500 direct labor-hours and produced 2,200 sets of covers. The following actual costs were recorded during the month:

Total Per Set
of Covers
Direct materials (8,000 yards) $ 44,000 $ 20.00
Direct labor $ 10,340 4.70
Variable manufacturing overhead $ 5,500 2.50
$ 27.20

At standard, each set of covers should require 2.5 yards of material. All of the materials purchased during the month were used in production.

Required:

1. Compute the materials price and quantity variances for August.

2. Compute the labor rate and efficiency variances for August.

3. Compute the variable overhead rate and efficiency variances for August.

In: Accounting

Comprehensive Problem 8-85 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) Skip to question...

Comprehensive Problem 8-85 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) Skip to question [The following information applies to the questions displayed below.]

John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2020, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA). Use Exhibit 8-9, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2020 AMT exemption for reference. The Fergusons reported making the following payments during the year: State income taxes of $4,400. Federal tax withholding of $21,000. Alimony payments to John's former wife of $10,000 (divorced on 12/31/2014). Child support payments for John's child with his former wife of $4,100. $12,200 of real property taxes. Sandy was reimbursed $600 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer. $3,600 to Kid Care day care center for Samantha's care while John and Sandy worked. $14,000 interest on their home mortgage ($400,000 acquisition debt). $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and new car. $15,000 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000.

Comprehensive Problem 8-85 Part a a. What is the Fergusons' 2020 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable? (Round your intermediate computations to the nearest whole dollar amount.)

In: Accounting

Choose three non-current assets. Describe at least two options which could be used to allow the...

  • Choose three non-current assets. Describe at least two options which could be used to allow the business to utilise them. What are the advantages and disadvantages of each option you described?
  • Discuss whether businesses should buy their non-current assets outright in

answer each question sperately

In: Accounting

The following are transactions of Samantha Payapag Advertising Company for the month of July 2013 Prepare...

The following are transactions of Samantha Payapag Advertising Company for the month of July 2013

Prepare Journal Entries, General Ledger, T- Accounts, Trial Balance, Income Statement, and Balance Sheet

July 3 Samantha Payapag invested 500,000 in the business.

July 5 Bought for cash, advertising supplies costing 80,000. Paid rental of the office, 7,300

July 9 Bought delivery truck from MJ Idos Trading, 350,000 on credit

July 12 Received 43,000 cash as advertising income

July 13 Bought furniture & fixtures, 32,000 in cash

July 17 Took 3,200 cash for personal purposes

July 18 Billed Bernalyn Galvez for the advertising service rendered to promote her product to the market, 10,000

July 23 Paid salaries of the employees, 15,000. Billed Zaldy Co. for the advertising service rendered, 4,000

July 24 Collected 1/2 of the amount Bernalyn Galvez owed to the company

July 26 Purchased another truck amounting to 120,000 from Edwina Motor, Inc. on credit

July 27 Paid MJ Idos Trading 230,000 as partial settlement of the account

July 30 Paid utility expense for the month

In: Accounting

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost...

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

Fixed Component
per Month
Variable
Component per Job
Actual Total
for February
Revenue $ 276 $ 30,370
Technician wages $ 8,100 $ 7,950
Mobile lab operating expenses $ 4,600 $ 35 $ 8,640
Office expenses $ 2,700 $ 3 $ 2,910
Advertising expenses $ 1,620 $ 1,690
Insurance $ 2,860 $ 2,860
Miscellaneous expenses $ 940 $ 2 $ 485

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $35 per job, and the actual mobile lab operating expenses for February were $8,640. The company expected to work 120 jobs in February, but actually worked 124 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

In: Accounting

Exercise 6.6. The ledger accounts of I-Cloud Internet Company appear as follows on March 31, 2016:...

Exercise 6.6. The ledger accounts of I-Cloud Internet Company appear as follows on March 31, 2016:

Account No.

Account

Balance

101

Cash

$80,000

111

Accounts Receivable

$58.820

121

Supplies

$10,600

131

Prepaid Insurance

$25,000

141

Equipment

$118,000

142

Accumulated Depreciation – Equipment

$41,320

202

Accounts Payable

$13,000

301

Lee Retha Hale, Capital

$130,000

302

Lee Retha Hale, Drawing

$13,000

401

Fees Income

$374,460

510

Depreciation Expense – Equipment

$21,160

511

Insurance Expense

$11,400

514

Rent Expense

$33,000

517

Salaries Expense

$166,000

518

Supplies Expense

$5,600

519

Telephone Expense

$6,800

523

Utilities Expense

$9,400

All accounts have normal balances. Journalize and post the closing entries. Use 4 as the page number for the general journal in journalizing the closing entries. Use account number 399 for the Income Summary Account.

In: Accounting

A)McDonald’s offered toys that portrayed the characters in the movie The Incredibles for free with the...

A)McDonald’s offered toys that portrayed the characters in the movie The Incredibles for free with the purchase of a Happy Meal.  The giving away of these toys is an example of the use of what type of promotional tool?

A options:

Sweepstake

Deal

Rebate

Allowance

Premium

B)

Which of the following is a commonly used pricing strategy that involves payment to an intermediary for promoting a manufacturer’s products?

B options:

Price bundling

Zero percent financing

Quantity discount

Promotional allowance

Seasonal discount

C)

A __________ contains specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period.

C options:

last year/current year sales ratio report

sales call report

sales quota

selling expense report

income statement

D)

Jane Caplow owns a picture-framing shop, The Caplow Company.  The average price she receives for a picture she frames for a customer is $120.  This price must cover her average costs for a typical framed picture of $5 for glass, $2 for matting, and $13 for the frame, and $30 for the labor involved.  She must also cover monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $3,500 for her salary.  Caplow is considering buying an automatic mat-cutting machine in order to reduce the number of hours of direct labor required to produce a framed picture.  In considering this purchase, she should recognize this purchase will _____ Caplow's variable cost and _____ Caplow's fixed cost.

D)

increase; decrease

have no effect on; have no effect on

decrease; increase

increase; increase

decrease; decrease

E)

Which of the following is a typical example of a fixed cost?

E)

hourly wages

sales commissions

production goods

raw materials

building rental expense

In: Accounting