$.57.5 per mile. How much of the 50 mile reimbursement should be taxable to Ted?
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- Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?Bridget Youhzi works for a large firm. Her alma mater has asked her to make a presentation to the upcoming accounting honor societys annual scholarship dinner. Her firm supports the presentation because it hopes to recruit more excellent employees like Bridget. The university is 196 miles from her office. In order to get to the dinner by 5:00 p.m., she will need to leave work at 1:00 pm. She can drive her personal car and be reimbursed $0.50 per mile. The dinner ends at 9:00 p.m. Company policy allows her to spend the night if the return trip is tour hours or more. There is a student-run inn and conference center across the street from campus that charges $101 per night. Instead of driving, she could catch a 3:00 p.m. flight that has a round, trip fare of $300. Flying would require her to rent a car for $39 per day and pay an airport parking fee of $25 for the day. The company pays a per diem of $35 for incidentals if the employee spends at least six hours out of town. (The per diem would be for one 24-hour period for either flying or driving.) As a manager, Bridget is responsible for recruiting within a budget and wants to determine which is more economical. Use the information provided to answer these questions. A. What is the total amount of expenses Bridget would include on her expense report if she drives? B. What is the total amount of expenses she would include on her expense report if she flies? C. What is the relevant cost of driving? D. What is the relevant cost of flying? E. What is the differential cost of flying over driving? F. What other factors should Bridget consider in her decision between driving and flying?Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrester. Cohen and his 3 CPAs together bill 620 hours per month. When Cohen or another accountant bills more than 155 hours per month, he or she gets an additional "overtime" pay of $65.80 for each of the extra hours: this is above and beyond the $5,100 salary each draws during the month. (Cohen draws the same base pay as his employees.) Cohen strongly discourages any CPA from working (billing) more than 245 hours in any given month. The demand for billable hours for the firm over the next 6 months is estimated below: Month Estimate of Billable Hours Jan. 600 Feb. 510 Mar. 1,010 Apr. 1,220 May 660 June 580 Cohen has an agreement with Forrester, his former partner, to help out during the busy tax season, up to 245 hours in any given month if needed, for an hourly fee of $135. Cohen will not even…
- you have a job, working for Big Stuff. Today, you worked four hours and expect to be paid next week at a rate of $15 per hour, or $60. When on the way home, you put gas in your car to replace what you used today. You put the charge of $20 on your credit card. When you get home, you look at your bank account online and find that you were paid by Big Stuff last week, and $100 has been added to your checking account. You also have received a bill from the electric company for $85 and decide to pay it. You started out today with $45 in your checking account. You never have any cash in your wallet. Your Ending Cash Balance is $60. 1. Using the BASE Method, what is your Beginning Cash balance? Show your work. 2. Now that you know the beginning cash balance, your ending cash of $60, and that you had paid a bill for $85, how much money had been added to your checking account from collecting your earnings? Show your work. 3. How about if you knew the beginning cash…A friend has $1,200 that he has saved from his part-time job. He will need his money, plus any interest earned on it, in six months and has asked for your help in deciding whether to put the money in a bank savings account at 4.10% interest or to lend it to Victor. Victor has promised to repay $1,236 after six months.Required: Calculate the interest earned on the savings account for six months. (Round your answer to 2 decimal places.) Calculate the annual rate of return if the money is lent to Victor. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Which alternative would you recommend?Robert Carre financed his office furniture through the furniture dealer fromwhich he bought it. The dealer's terms allowed him to defer payments (withinterest being charged) for six months and then to make 36 equal end-of-month payments thereafter. The original note was for $12,000 with interest at 12% compounded monthly. After 26 monthly payments, Robert found himself in a financial bind and went to a loan company for assistance. The loan company offered to pay his debts in one lump sum, provided that he will pay the company $204 per month for the next 30 months.(a) Determine the original monthly payment made to the furniture store.(b) Determine the lump-sum payoff amount the loan company will make.(c) What monthly rate of interest is the loan company charging on this loan?
- James was a high school teacher earning a net salary of $4500 per month. Afterworking for one year, he quit his job to start his own kiosk business dealing in variousconsumer goods. In order to learn how to run the business, James enrolled in aTAFE to acquire accounting skills. James’ course was for 6 months. James had topay $3,000 as tuition for the 3 months.After the training, James borrowed $40,000.00 from his uncle whom he pays 8percent interest per year.Also, James withdrew $ 50,000 from his savings account. He had been earning 5percent interest per year for this account. Further, to start the business James usedhis own premises given to him by his father.His father had been receiving $11,000 from rent per year. Finally, to start thebusiness James uses $75,000 he had been given by his father to go on holiday toThe USA.James’s first year of business can be summarised as follows:4HI5003 Economics for Business -2020 T3 Tutorial Submission AssessmentItem Amount $Revenue- Orange…James was a high school teacher earning a net salary of $4500 per month. Afterworking for one year, he quit his job to start his own kiosk business dealing in variousconsumer goods. In order to learn how to run the business, James enrolled in aTAFE to acquire accounting skills. James’ course was for 6 months. James had topay $3,000 as tuition for the 3 months.After the training, James borrowed $40,000.00 from his uncle whom he pays 8percent interest per year.Also, James withdrew $ 50,000 from his savings account. He had been earning 5percent interest per year for this account. Further, to start the business James usedhis own premises given to him by his father.His father had been receiving $11,000 from rent per year. Finally, to start thebusiness James uses $75,000 he had been given by his father to go on holiday toUSA.James’s first year of business can be summarised as follows: items amount revenue - orange section 250,000 revenue- beverages section 180,000 2 cashiers…This year Evans graduated from college and took a job as a deliveryman in the city Evans was paid a salary of $72,300 and he received $700 in hourly pay for the part-time over the weekends. Evans summerized his expenses aa follows. . Cost of moving his possessions to the city (125miles) $1,200. .interest paid on accumulated student loans $2,800. .Cost of purchasing a delivery uniform $1,400. .contribution to state university deliveryman program $1'300. Using TaxAct, complete page 1of Evans form 1040 for 2019 and calculate his adjusted gross income and taxable income.
- Accounting Henry makes $13.67/hr. at his job and he normally works 43 hours per week. His expenses each month are $940/month for rent, $529.26/month for utilities, and $410/month for food and clothing. He wants to buy a car, but the payments are $382.74/month. If Henry pays 15% of his income to taxes and insurance, can he afford this new car? Give your answer as the amount of money left after the car payment is added or give a negative number of the money he earns is not enough. Assume a month is 4 weeks. Round to the nearest cent.Josh is a corporate account manager at a company that sells musical instruments to other businesses. He receives a monthly salary of $1,500 plus commission on any new sales that he makes as part of his daily interactions with his customers. If Josh's sales were $67,000 last month and he earned $3,041, what is his commission rate? Note: Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.56% Commission rate = 0.00 %Jane James owns an appliance store. She usually receives $50,000 worth ofappliances per month. She does not like to owe people money and alwayspays her bills on the day she receives the invoice. Someone told her thatif she delayed payment, she could actually increase her profit because themoney would be earning interest in her account. She went through her billsand found that she actually had an additional 10 days, on average, to payher invoices. She also found that she was earning 2 percent interest on themoney she had in her money market savings account.a. If she delayed payment by the 10 days, how much additional interest wouldshe earn for the year?b. Explain how this problem represents a disbursement float.
