Explanation:
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Answer:
$54.95 interest income
Explanation:
We look int othe legal tables to recognize income in this type of annuities considering the age of each participant
Table VI - Ordinary Joint Life and Last Survivor Annuities; Two Lives - Expected Return Multiples
multiplier at cross 75 / 70 : 18.8
we take the annual income of 700 x 12 = 8,400
and multiply by the 18.8 = 157,920
now we solve for part of capital and interest:
145,530/157,920 = 0.92154 = 92.15%
principal returns are 92.15% while interest the remaining 7.85%
700 x 7.85% interest = $54.95 interest income
Answer:
c. $820
Explanation:
The computation of the cost of unused capacity is given below:
But before that following calculations need to be done
The Predetermined overhead rate is
= Manufacturing overhead ÷ capacity of jointer
= $15,580 ÷ 380
= $41 per hour
Given that
Actual use of capacity = 360 hours
Now
Unused hours is
= 380 - 360
= 20 hours
And, finally the cost of unused capacity is
= 20 × $41
= $820