Answer:
B. variable overhead efficiency variance
Explanation:
Answer option A, C, and D are incorrect. In variable overhead cost variance, we determine the difference between the actual and budgeted cost. In fixed overhead cost variance, we do not use allocation base cost. Again, in fixed overhead volume variance, we cannot use allocation base cost.
'B' is correct because the difference between the actual allocation base quantity and budgeted allocation base quantity multiplying with the standard rate states the variable overhead efficiency variance. The activity level is required to determine efficiency variance.
Answer:
a. PV = $10,299.02
b. PV = $36,226.63
c. PV = $14,797.46
d. PV = $24,794.88
Explanation:
To solve this question, we use present value formula
PV = C/(1+r)^n
Where PV = Present value of a lump sum
C = Future amount to be discounted
r = Interest rate
n = Number of years
a. PV = C/(1+r)^n
C = $25,500
r = 12%
n = 8
PV = $25,500 /(1+12%)^8
PV = $25,500 /(1+0.12)^8
PV = $25,500 /(1.12)^8
PV = $25,500 /2.475963176
PV = $10,299.02231
PV = $10,299.02
b. PV = C/(1+r)^n
C = $58,000
r = 4%
n = 12
PV = $58,000 /(1+4%)^12
PV = $58,000 /(1+0.04)^12
PV = $58,000 /(1.04)^12
PV = $58,000 /1.601032219
PV = $36,226.62888
PV = $36,226.63
c. PV = C/(1+r)^n
C = $25,000
r = 6%
n = 9
PV = $25,000 /(1+6%)^9
PV = $25,000 /(1+0.06)^9
PV = $25,000 /(1.06)^9
PV = $25,000 /1.689478959
PV = $14,797.46159
PV = $14,797.46
c. PV = C/(1+r)^n
C = $35,000
r = 9%
n = 4
PV = $35,000 /(1+9%)^4
PV = $35,000 /(1+0.09)^4
PV = $35,000 /(1.09)^4
PV = $35,000 /1.41158161
PV = $24,794.88239
PV = $24,794.88
The owner of a local coffee shop
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Knowing that they could be fined large amount of money if found to be engaging in acts that ethically incorrect will serves to discourage investment banking firms from such acts.<span />
