The interest rate on 3-year Australia government bonds has been approximately 0.25% since April. Which of the following is the most likely explanation of this near-zero market rate of interest on government bonds?

a. Australia government budget surpluses in recent years.

b. The target cash rate being set at 0.25%.

c. The low level of government debt.

d. Purchases of bonds by the Reserve Bank of Australia on the secondary market.

e. Purchases of bonds by the Reserve Bank of Australia on the primary market.

Suppose you receive the following spot exchange rate quotes from a bank:

AUD/USD 0.65-0.66

You have USD 1,000,000, which you wish to convert into AUD. How many AUD will you be able to purchase?

a. 650,000.

b. 655,000.

c. 1,538,461.

d. 1,515,152.

e. 660,000.

Due to a global economic crisis, the private sector reduces its investment spending and increases its planned saving, so that the private sector financial balance goes from a deficit of 2% of GDP to a surplus of 5% of GDP. The current account balance goes from a surplus of 1% of GDP to a deficit of 2% of GDP. This implies the fiscal balance must go from a ____________ of _________ of GDP to a ___________ of _________ of GDP.

a. surplus; 1%; deficit; 3%.

b. surplus; 3%; deficit; 3%.

c. deficit; 3%; surplus 7%.

d. surplus; 3%; deficit; 7%.

e. deficit; 3%; deficit 7%.

Since 2009, the national minimum wage has been $7.25 per hour for most occupations in the private sector. Many of those who support an increase in the minimum wage believe this is one way the government could possibly reduce poverty, while its opponents believe that it creates unemployment and hurts low-skilled workers. The following items address the idea of raising the minimum wage from the current federal minimum of $7.25 per hour.

4) What might be an unintended impact on government spending on entitlements such as welfare, food stamps, and unemployment compensation in light of the fact that changes in the minimum wage can create changes in unemployment and underemployment?

5) Do advocates of a minimum wage law believe that workers should be paid based on their output (i.e., performance) or on their level of need? What do opponents of the minimum wage law believe workers’ wages should be based on? Which one is sustainable and why?

For the sake of comparison, how should students be graded in class, based on their performance or level of need?

6) Advocates of a minimum wage often believe that employers would “exploit” or “take advantage” of their workers if there were no minimum wage. How would you know if employers are “taking advantage” of their workers if there were no minimum wage? What could the employee do if they believed they were being exploited?

A.(i) Moment Inc. provides the following data for June 2016 when 15,000 Units are manufactured: Standard Material Cost (Per Unit) 8.50 kg @ $ 7.50/kg Actual Material Cost (Per Unit) 6.75 kg @ $ 13.5/kg Standard Labor cost (Per Unit) 5.5 hrs @ $ 15/hr Actual Labor cost (Per Unit) 6.5 hrs @ $ 12.2/hr Calculate: Direct Material Price Variance Direct Material Quantity/Usage Variance Total Material Cost Variance Direct Labor Rate Variance Direct Labor Efficiency Variance Total Labor Cost Variance (ii) Calculate Variable Overhead Spending Variance if actual labor hours used are 260,standard variable overhead rate is $10.40 per direct labor hour and actual variable overhead rate is $9.30 per direct labor hour. Also specify whether the variance is favorable or unfavorable.   (iii) Calculate the variable overhead efficiency variance using the following figures: Number of Units Produced 620 Standard Direct Labor Hours Per Unit 0.2 Actual Direct Labor Hours Used 260 Standard Variable Overhead Rate $10.40

B. “Managers of most organizations continually plan for the future, and after the plan is implemented, managers assess whether they achieved their goals. What are the two functions that enable management to go through the process of continually planning and evaluating?

Which of the following statements regarding cost flows is true?

Select one:

Cost of goods available for sale is equal to beginning inventory minus cost of goods purchased.

CGAS = beginning inventory minus ending inventory.

CGAS = cost of goods sold minus cost of goods purchased.

Cost of goods available for sale is equal to beginning inventory plus cost of goods purchased.

Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.

  rev: 02_28_2017_QC_CS-80932

Required:

1. Calculate ending inventory and cost of goods sold at March 31, using the specific identification method. The March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.

2. Using FIFO, calculate ending inventory and cost of goods sold at March 31.

3. Using LIFO, calculate ending inventory and cost of goods sold at March 31.

4. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31. (Round your intermediate and final answers to 2 decimal places.)

5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places.)

6. If Greg’s Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Challenge Exercise 7-1 (Part Level Submission)

Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity:

Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed.

In October, Conklan Company receives a special order for 3,800 fireplaces at $62 each from Langston’s Landscape Company. Acceptance of the order would result in an additional $6,400 of shipping costs but no increase in fixed operating expenses.

(c)

Before Conklan could give Langston’s Landscape Company an answer, they received a special order from Benson Building & Supply for 14,300 fireplaces. Benson is willing to pay $65 per fireplace but they want a special design imbedded into the fireplace that increases cost of goods sold by $67,210. The special design also requires the purchase of a part that costs $4,800 and will have no future use for Conklan Company. Benson Building & Supply will pick up the fireplaces so no shipping costs are involved. Due to capacity limitations, Conklan cannot accept both special orders. Which order should be accepted? Document your decision by preparing an incremental analysis for Benson’s order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

You have a business manufacturing snarky masks for hipster wannabes. You produce these masks in batches of 100. Each mask has the following manufacturing standards (i.e., budgets):

There is no beginning or ending inventory for WIP and Finished Goods. You have sufficient beginning direct material inventory of material that you do not need to purchase any during the month.

During October 2020 you made 11 batches of masks (100 masks in each batch) and spent/used/incurred the following:

REQUIRED:

1. Prepare an analysis of actual direct production costs for March compared to Budget-adjusted-for-output (Flex Budget). Identify the usage/efficiency and price/rate variances.
2. Record journal entries to record the use of direct materials and direct labor, (Post costs to WIP first, then transfer all of WIP to Finished Goods. Transfer all of Finished Goods to COGS – (pretend there are no indirect manufacturing costs) remember there is no beginning or ending inventory for WIP or Finished Goods.)
3. Prepare the adjusting journal entry to close all of the variances to COGS.
4. Ferd is responsible for buying your direct materials. Did he do a “good” job in March? Why?
5. Franny is in charge of the use of the direct materials. Did she do a “good” job in March with regards to material usage? Why?
6. Franny is also in charge of the use of direct labor. Did she do a “good” job in March with regards to labor usage/efficiency? Why?
7. Futz sets hourly wage rates for the direct labor. Did he do a “good” job in March? Why?

Income statements under absorption costing and variable costing

Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (181,000 units) during the first month, creating an ending inventory of 17,000 units. During February, the company produced 164,000 units during the month but sold 181,000 units at $600 per unit. The February manufacturing costs and selling and administrative expenses were as follows:

a. Prepare an income statement according to the absorption costing concept for February. Enter all amounts as positive numbers.

b. Prepare an income statement according to the variable costing concept for February. Enter all amounts as positive numbers.