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Answer:
a. The cutoff value for investigation if the controller’s rule of thumb is to investigate all variances equal to or greater than 6 percent of standard cost is $2,280.
b.The month that will have their direct-labor efficiency variance investigated will be the month of since june variance is 2,400 and hence is above $2,280.
Explanation:
According to the given data, the standard direct-labor cost during each of these months was $38,000, therefore, in order to calculate the cutoff value for investigation, we would have make the following calculation:
Cutoff value for investigation =6% of Standard cost =$38,000 *6% =$2,280
The month that will have their direct-labor efficiency variance investigated will be the month of since june variance is 2,400 and hence is above $2,280.
Answer:
Net operating cash-flow= $6,392
Explanation:
Giving the following information:
Sales of $19,650.
Costs of $9,380
Depreciation expense of $2,050.
Interest expense of $1,540.
The tax rate is 35 percent
Cash- flow:
Sales 19650
Cost= 9380 (-)
Interest= 1540 (-)
Depreciation =2050 (-)
EBT= 6680
Tax= (6680*0.35)=2338 (-)
EAT= 4342
Depreciation= 2050 (+)
Net operating cash-flow= 6392
A <u>marketability discount</u> is applied to reduce estate tax when a large amount of real estate is for sale in one area.
When evaluating private enterprises, the discount for lack of marketability (DLOM) is used. It has to do with the business not having a publicly listed stock on a stock market.
Since shares of publicly listed corporations may be purchased or sold in a controlled marketplace, these companies are seen to have a "market." Private businesses lack a centralised market and are thought to have smaller markets. In order to represent the lack of a market, private firms should, in principle, be valued lower than public companies, all else being equal.
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Answer:
1,000
Explanation:
Suppose the town of Boone has a total population of 50,000 people. Of those, 45,000 people are employed. There are 1,000 full-time students who are not employed or actively seeking work. The rest of the people are out of work but have been actively seeking work within the past four weeks.
This information is not given in the question.
For computing the frictional unemployment, first we have to determine the unemployed which is shown below:
Number of unemployed would be
= Total population - employed - full time students
= 50,000 - 45,000 - 1,000
= 4,000
Now the frictional unemployment would be
= Unemployed - cyclical unemployment - structural unemployment
= 4,000 - 2,000 - 1,000
= 1,000