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2 years ago

When one commercial bank borrows from another commercial bank, it pays the __________ rate.

Business

1 answer:

Len [333]2 years ago

4 0

When one commercial bank borrows from another commercial bank, it pays the discount rate.

The one place where a bank can get reserves is by borrowing from a commercial bank. As whenever a person or a business firm or an organization borrows, they should pay interest and a bank that borrows from a commercial firm must pay interest to them too. The interest that the commercial bank charges to banks that borrow from them is called the discount rate.

The term discount rate is used when looking at a certain amount of money to be received in the future years and calculating the present value now. The word “discount” means the amount to be deducted. A discount rate is a typical rate that is deducted from a future quantity of money to provide its present value to money seekers.

The cash flows of investments or business ventures when at the time of discount, it is important to note whether the discount rates used can be varied depending on particular different elements. So, discount rates are paid to compensate the borrower bank to the lender bank during transactions.

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A group of workers normally consists of 60 men, 30 women and 20 boys. They are paid at standard hourly rates as under:

dexar [7]

Labour cost variance = R.s 33,000 (F)
Labour rate variance = R.s 33000 (F)
Labour efficiency variance = 0

Given:

Standard Number of men = 60

Standard Number of women = 30

Standard Number of boys = 20

Standard hour rate for men = R.s 280

Standard hour rate for women = R.s 160

Standard hour rate for boys = R.s 140

Weekly working hour = 40 hours

Expected unit = 5,000 units

Number of men in march week = 70

Number of women in march week = 25

Number of boy in march week = 25

Actual wage for men = R.s 270

Actual wage for women = R.s 165

Actual wage for boys = R.s 130

Actual units = 4,500 units

Find:

Labour cost variance
Labour rate variance
Labour efficiency variance

Computation:

Labour cost variance = [SC for AO] - AC

Labour cost variance = [( 70 × 280) + (25 × 160) + (25 × 140)] - [(70 × 270) + (25 × 165) + (25 × 130)] × 40

Labour cost variance = (27,100 - 26,275 ) × 40

Labour cost variance = R.s 33,000 (F)

Labour rate variance = (SR - AR) × AH worked

Labour rate variance = [(280 - 270)70 + (160 - 165)25 + (140 - 130)25]40

Labour rate variance = [700 - 125 + 250]40

Labour rate variance = [825]40

Labour rate variance = R.s 33000 (F)

Labour efficiency variance = (SH allowed - AH worked)SR

Labour efficiency variance = (0 - 0)SR

Labour efficiency variance = 0

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5 0

3 years ago

Name the currency that is used by 19 member states and 330 million people, though some politicians and economists are calling fo

xeze [42]

The answer to the question mentioned above is "the Euro".

Euro is the name of the currency that is used and by 19 members states and 330 million people, though some politicians and economist are calling for its retirement. This is the official currency of the Eurozone.

8 0

3 years ago

If a journal entry and posting for the use of one month of rent from the prepaid rent account during the year is accidently omit

tensa zangetsu [6.8K]

Answer:

Expenses will be understated, hence, Net Income will be overstated.

Rent prepaid will be overstated, hence, current assets will be overstated.

Explanation:

Ordinarily, rent prepaid is meant to be credited every month to the tune of the the value that has been consumed and then added to period expenses to reduce net income.

In the statement of Financial Position, the same amount that has been consumed should be used to reduce balance in rent prepaid account, otherwise, current assets will be overstated if no adjustment is made.

4 0

3 years ago

Paul Company completed the salary and wage payroll for the month of March. The payroll provided the following details: Salaries

ololo11 [35]

Answer:

wages expense 212,000 debit

Income tax payroll payable 42,400 credit

FICA payable 16,900 credit

insurnace premium payable 4,000 credit

wages payable 148,700 credit

--to record wages to employees--

payroll tax expense 19,400 debit

FICA payable 19,400 credit

--to record employeed payroll taxes--

Income tax payroll payable 42,400 debit

FICA payable 33,800 debit

insurnace premium payable 4,000 debit

Cash 80,200 credit

--to record payment to gevernment agencies--

Explanation:

We have to deduct from the wages the employee deductions

the remaining is the wages payable

Then, we record the same amount of fica as expense as we, the employer are paying them

Then we debit all the liaiblities which arise from the employees and credit cash for the total amount

6 0

3 years ago

The variable overhead spending variance, the fixed overhead spending variance, and the variable overhead efficiency variance can

kozerog [31]

Answer:

Controllable variance

Explanation:

The controllable variance is the combination of the variable overhead, fixed overhead spending variance and together with this, the variable overhead efficiency variance is also involved

Hence, as per the given situation, the controllable variance is to be considered

Therefore the above represents the answer

7 0

3 years ago