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MArishka [77]
1 year ago
14

The present value of $121,000 expected one year from today at an interest rate (discount rate) of 10 percent per year is:_______

Business
1 answer:
Cerrena [4.2K]1 year ago
4 0

The present value of $121,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is (C) $110,000.

<h3>What is the discount rate?</h3>
  • The discount rate is the interest rate charged to commercial banks and other financial institutions for Federal Reserve Bank short-term loans.
  • The interest rate used in discounted cash flow (DCF) analysis to assess the present value of future cash flows is referred to as the discount rate.
  • The formula for Discount Rate: First, the present value is divided by the value of a future cash flow (FV) (PV) The previous step's result is then multiplied by the reciprocal of the number of years (n) Finally, the discount rate is calculated by subtracting one from the value.
  • As an example, the present value of $121,000 projected to be received one year from today at a ten percent annual discount rate is $110,000.

Therefore, the present value of $121,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is (C) $110,000.

Know more about discount rates here:

brainly.com/question/7459025

#SPJ4

The complete question is given below:
The present value of $121,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is:

A) $121,000

B) $100,000

C) $110,000

D) None of the above

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Question not complete

Direct Labour Cost is missing

Direct Labor Cost ----- $50,000.00 $270,000.00

Answer:

a.

Overhead Rate (Cutting Department) = $5.5 per machine hour = $5.5 per machine hour

Overhead Rate (Finishing Department) = $12.2 per labour hour

b. Total Manufacturing Cost = $644

c. Yes

Explanation:

a. Compute the predetermined overhead rate to be used in each department.

Given

Cutting Department

The Cutting Department bases its rate on machine-hours

Manufacturing Overhead Costs = $264,000

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Finishing Department

The Finishing Department bases its rate on direct labor-hours.

Manufacturing Overhead Costs = $366,000

Direct Labour Cost = $270,000

Overhead Rate (Cutting Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Cutting Department) = $264,000/48,000

Overhead Rate (Cutting Department) = $5.5 per machine hour

Overhead Rate (Finishing Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Finishing Department) = $366,000/$270,000

Overhead Rate (Finishing Department) = 1.36

Overhead Rate (Finishing Department) = 136% direct labour cost

b.

The Cutting Department bases its rate on machine-hours

Given

Machine hours = 80 machine hours

Overhead Rate = $5.5 per machine hours ------ Calculated

The Finishing Department bases its rate on direct labor-hours.

Given

Direct Labour Cost = 150

Overhead Rate = 136% labour cost ------ Calculated

Overhead Applied (Cutting Department) = 80 * 5.5

Overhead Applied = 440

Overhead Applied (Finishing Department) = 136% * 150

Overhead Applied = $204

Total Overhead Applied = $440 + $204

Total = $644

c. Yes

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