Answer:
Results are below.
Explanation:
Giving the following information:
<u>The flexible budget is adapting the standard costs to the actual quantity.</u>
<u>Fabricating Department:</u>
Depreciation= $2,300
Standard hourly rate= 2,300/640= $3.594
The department completed 600 hours of production.
Actual budget:
Depreciation= 2,300
Direct labor= 3.594*600= 2,156.4
Total cost= $4,456.4
<u>Grinding Department:</u>
Property tax= $30,000
Standard hourly rate= 55,200/2,400= $23
The department completed 2,900 hours of production.
Actual budget:
Property tax= $30,000
Direct labor= 23*2,900= 66,700
Total cost= $96,700
Answer:
b. make less amount of money to be received for the investments made today.
Explanation:
Answer:
c.$16,112
Explanation:
Since the payment of $3,500 per year is to be paid for 4 years, starting immediately, therefore the future value of annuity will be determined to calculate the amount that you will have after 4 years.
Future value of annuity=(1+i)*R[((1+i)^n-1)/i]
R=Payment to made per year=$3,500
i=interest rate=5.7%
n=number of payments to be made in future=4
Future value of annuity=(1+5.7%)*3,500[((1+5.7%)^4-1)/5.7%]
=$16,112
So the answer is c.$16,112
Answer:
$2,400
Explanation:
The computation of the depreciation expense under the activity-based depreciation method is shown below:
= (Original cost - residual value) ÷ (estimated production units)
= ($12,000 - $4,000) ÷ (20,000 units)
= ($8,000) ÷ (20,000 units)
= $0.4 per unit
Now for the first year, it would be
= Production units in first year × depreciation per unit
= 6,000 units × $0.4
= $2,400