A borrower is offered a 30 year, fully amortizing ARM with an initial rate of 3.35%. After the first year, the interest rate will adjust each year, using 1 yr LIBOR as the index, plus a margin of 175bp. The price of the property is $8,000,000 and the loan will have an initial LTV ratio of 75% At the first reset date, 1 year LIBOR is at 3%. What is the borrower s payment during the 2nd year of the loan?
In: Finance
A borrower is offered a 30 year, fully amortizing ARM with an initial rate of 3.35%. After the first year, the interest rate will adjust each year, using 1 yr LIBOR as the index, plus a margin of 175bp. The price of the property is $8,000,000 and the loan will have an initial LTV ratio of 75% At the first reset date, 1 year LIBOR is at 3%. What is the borrower s payment during the 2nd year of the loan
In: Finance
|
Smithson Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: |
| Molding | Fabrication | Total | ||||
| Machine-hours | 24,000 | 34,000 | 58,000 | |||
| Fixed manufacturing overhead costs | $ | 770,000 | $ | 230,000 | $ 1,000,000 | |
| Variable manufacturing overhead per machine-hour | $ | 5.00 | $ | 5.00 | ||
|
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-75 and Job C-100. It provided the following information related to those two jobs: |
| Job D-75: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 373,000 | $ | 326,000 | $ | 699,000 |
| Direct labor cost | $ | 250,000 | $ | 170,000 | $ | 420,000 |
| Machine-hours | 17,000 | 7,000 | 24,000 | |||
| Job C-100: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 290,000 | $ | 270,000 | $ | 560,000 |
| Direct labor cost | $ | 160,000 | $ | 300,000 | $ | 460,000 |
| Machine-hours | 7,000 | 27,000 | 34,000 | |||
Smithson had no overapplied or underapplied manufacturing overhead
during the year.
eBook & Resources
eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 1eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 2eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 3
8.
value:
3.00 points
Required information
| Required: |
| Assume Smithson uses a plantwide overhead rate based on machine-hours. |
| 1-a. |
Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.) |
| Predetermined overhead rate | $ per MH | |
| 1-b. |
Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places.) |
| Total Manufacturing Cost |
|
| Job D-75 | $ |
| Job C-100 | $ |
| 1-c. |
If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places.) |
| Bid price | |
| Job D-75 | $ |
| Job C-100 | $ |
| 1-d. | What is Smithson’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.) |
| Cost of goods sold | $ | |
References
eBook & Resources
WorksheetLearning Objective: 02-01 Compute a predetermined overhead rate.Learning Objective: 02-03 Compute the total cost and average cost per unit of a job.
Difficulty: HardLearning Objective: 02-02 Apply overhead cost to jobs using a predetermined overhead rate.
Ask your instructor a questionCheck my work
9.
value:
3.00 points
Required information
| Assume Smithson uses departmental overhead rates based on machine-hours. |
| 2-a. |
Compute the predetermined departmental overhead rates. (Round your answers to 2 decimal places.) |
| Predetermined Overhead Rates |
|
| Molding Department | $ |
| Fabrication Department | $ |
| 2-b. |
Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) |
| Total Manufacturing Cost |
|
| Job D-75 | $ |
| Job C-100 | $ |
| 2-c. |
If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places, "Total manufacturing cost" and final answers to the nearest dollar amount.) |
| Bid price | |
| Job D-75 | $ |
| Job C-100 | $ |
| 2-d. |
What is Smithson’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places, "Total manufacturing cost" and final answers to the nearest dollar amount.) |
| Cost of goods sold | $ |
|
In: Accounting
|
Smithson Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: |
| Molding | Fabrication | Total | ||||
| Machine-hours | 24,000 | 34,000 | 58,000 | |||
| Fixed manufacturing overhead costs | $ | 770,000 | $ | 230,000 | $ 1,000,000 | |
| Variable manufacturing overhead per machine-hour | $ | 5.00 | $ | 5.00 | ||
|
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-75 and Job C-100. It provided the following information related to those two jobs: |
| Job D-75: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 373,000 | $ | 326,000 | $ | 699,000 |
| Direct labor cost | $ | 250,000 | $ | 170,000 | $ | 420,000 |
| Machine-hours | 17,000 | 7,000 | 24,000 | |||
| Job C-100: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 290,000 | $ | 270,000 | $ | 560,000 |
| Direct labor cost | $ | 160,000 | $ | 300,000 | $ | 460,000 |
| Machine-hours | 7,000 | 27,000 | 34,000 | |||
Smithson had no overapplied or underapplied manufacturing overhead
during the year.
eBook & Resources
eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 1eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 2eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 3
8.
value:
3.00 points
Required information
| Required: |
| Assume Smithson uses a plantwide overhead rate based on machine-hours. |
| 1-a. |
Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.) |
| Predetermined overhead rate | $ per MH | |
| 1-b. |
Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places.) |
| Total Manufacturing Cost |
|
| Job D-75 | $ |
| Job C-100 | $ |
| 1-c. |
If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places.) |
| Bid price | |
| Job D-75 | $ |
| Job C-100 | $ |
| 1-d. | What is Smithson’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.) |
| Cost of goods sold | $ | |
References
eBook & Resources
WorksheetLearning Objective: 02-01 Compute a predetermined overhead rate.Learning Objective: 02-03 Compute the total cost and average cost per unit of a job.
Difficulty: HardLearning Objective: 02-02 Apply overhead cost to jobs using a predetermined overhead rate.
Ask your instructor a questionCheck my work
9.
value:
3.00 points
Required information
| Assume Smithson uses departmental overhead rates based on machine-hours. |
| 2-a. |
Compute the predetermined departmental overhead rates. (Round your answers to 2 decimal places.) |
| Predetermined Overhead Rates |
|
| Molding Department | $ |
| Fabrication Department | $ |
| 2-b. |
Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) |
| Total Manufacturing Cost |
|
| Job D-75 | $ |
| Job C-100 | $ |
| 2-c. |
If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places, "Total manufacturing cost" and final answers to the nearest dollar amount.) |
| Bid price | |
| Job D-75 | $ |
| Job C-100 | $ |
| 2-d. |
What is Smithson’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places, "Total manufacturing cost" and final answers to the nearest dollar amount.) |
| Cost of goods sold | $ |
|
In: Accounting
Suppose a natural gas distribution company has capital investments of $8 million and a capital cost r of 10%. The firm’s operating, billing, and maintenance costs are $200,000. The firm buys natural gas at the city gate price of $5/MCF to sell to its customers. The firm distributes gas to those customers through its existing pipeline network at close to zero marginal cost.
The firm faces the following (inverse) demand by customer type (recall that these are average demand per customer, so at any given price you have to multiply quantity by the number of customers to get total quantity demanded in that customer group):
Residential (10,000 customers): P = 50 − 5*q
Commercial (1,000 customers): P = 50 − q
Industrial (100 customers): P = 20 − 1/100 * q
Calculate the two-part tariff if the firm charges each customer the same two-part tariff and charges P = MC as the variable charge. What is the deadweight loss in this case?
In: Economics
How much does a sleeping bag cost? Let's say you want a sleeping bag that should keep you warm in temperatures from 20°F to 45°F. A random sample of prices ($) for sleeping bags in this temperature range is given below. Assume that the population of x values has an approximately normal distribution.
| 45 | 50 | 115 | 115 | 40 | 100 | 30 | 23 | 100 | 110 |
| 105 | 95 | 105 | 60 | 110 | 120 | 95 | 90 | 60 | 70 |
(a) Use a calculator with mean and sample standard deviation keys to find the sample mean price x and sample standard deviation s. (Round your answers to two decimal places.)
| x = | $ |
| s = | $ |
(b) Using the given data as representative of the population of
prices of all summer sleeping bags, find a 90% confidence interval
for the mean price μ of all summer sleeping bags. (Round
your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
In: Statistics and Probability
On July 1, Jones Corporation had the following capital
structure:
| Common Stock, par $1; 8,000,000 authorized shares, 110,000 issued and outstanding | $ | 110,000 | |
| Additional Paid-in Capital | 92,000 | ||
| Retained Earnings | 172,000 | ||
| Treasury Stock | None | ||
Required:
Complete the following table based on two independent cases
involving stock transactions: (Round "per share" answers to
2 decimal places.)
| Case 1: |
The board of directors declared and issued a 100 percent stock dividend when the stock price was $7 per share. |
| Case 2: |
The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $7 per share. |
|
In: Accounting
Question 5 (10)
Mr. Prime Shaapopi CA (SA) (NAM) for the year of assessment ending
28 February
2020.
Profit from business 500 000
Profit from branch of business in Zimbabwe 100 000
Director’s fees 8 000
Insurance pay out for loss of profits 80 000
Profit on sale of truck 120 000
Cost price 300 000
Tax value 200 000
Selling price 320 000
Gain from Unit Trust 80 000
Interest from bank 400
Interest from subscription shares 800
Farming subsidy on soil erosion 20 000
Lease premium received 10 000
Lump sum on retirement from pension fund 100 000
Retrenchment benefit from employers 80 000
Goodwill received 120 000
You are required to calculate the income of Mr. Prime Shaapopi CA
(SA) (NAM) for
the year of assessment ending 28 February 2020.
In: Accounting
Apple Incorporated (AI) board of directors has indicated that they will repurchase AI’s stock effective July 1st 2020. You currently hold 100 AI’s stock. Explain in detail, the concept of “information content” to be derived from the board of director’s pronouncement. Discuss the likely impact of this pronouncement to AI’s stock price? In respect of this announcement, discuss the concept of the “signaling theory” and how will managers of AI be placed in an advantageous position ahead of the normal investor? (Word count limit (250-500) Apple Incorporated (AI) board of directors has indicated that they will repurchase AI’s stock effective July 1st 2020. You currently hold 100 AI’s stock. Explain in detail, the concept of “information content” to be derived from the board of director’s pronouncement. Discuss the likely impact of this pronouncement to AI’s stock price? In respect of this announcement, discuss the concept of the “signaling theory” and how will managers of AI be placed in an advantageous position ahead of the normal investor? (Word count limit (250-500)
In: Accounting
How much does a sleeping bag cost? Let's say you want a sleeping bag that should keep you warm in temperatures from 20°F to 45°F. A random sample of prices ($) for sleeping bags in this temperature range is given below. Assume that the population of x values has an approximately normal distribution.
| 35 | 110 | 40 | 100 | 65 | 70 | 30 | 23 | 100 | 110 |
| 105 | 95 | 105 | 60 | 110 | 120 | 95 | 90 | 60 | 70 |
(a) Use a calculator with mean and sample standard deviation keys to find the sample mean price x and sample standard deviation s. (Round your answers to two decimal places.)
| x = | $ |
| s = | $ |
(b) Using the given data as representative of the population of
prices of all summer sleeping bags, find a 90% confidence interval
for the mean price μ of all summer sleeping bags. (Round
your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
In: Statistics and Probability