Answer:
Allocation rate Machining= $50 per machine hour
Explanation:
Giving the following information:
Estimated Machining cost= $4,000,000
Estimated Number of machine hours= 80,000
<u>To calculate the allocation rate for the Machining department, we need to use the following formula:</u>
Allocation rate Machining= total estimated costs for the period/ total amount of allocation base
Allocation rate Machining= 4,000,000 / 80,000
Allocation rate Machining= $50 per machine hour
Answer:
Lundholm, Inc
Journal Entries
Date Account Titles Debit Credit
May 1, 18 Cash $500,000
Bonds payable $500,000
(To record the bond issuance)
31 Oct, 18 Interest Expenses $22,500
(500000*9%*6/12)
Cash $22,500
(To record payment of the first semiannual period’s interest)
Nov 1, 19 Bonds payable $300,000
Loss on Bonds $3,000
Cash $303,000
(To record retirement the bonds at 101 on November 1, 2019)
Answer:
The value of the common stock today is $28.455 per share.
Explanation:
For a stock that is paying constant growth rate in dividends, we use the constant growth model of the DDM to calculate the value of stock today. The formula for price using the constant growth model is,
Price = D1 / r - g
Where,
- D1 is the dividend expected in the next period or D0 * (1+g)
- r is the cost of equity or required rate of return
- g is the growth rate in dividends
Price = 2.71 * ( 1 + 0.05 ) / (0.15 - 0.05)
Price = $28.455
Answer:
The correct answer is rational decision making.
Explanation:
The question about rationality is that all human beings are different, with different tastes, variety of opportunities and what is rational or useful for one person may be totally different from what would satisfy another. In addition to everyday situations, people often make quick and unconscious decisions that are part of their daily experiences and are chosen by inertia, which can often leave rationality aside to become repetitive or everyday choices, another really important aspect Within the issue of decision making is the change of thoughts, tastes or perspectives of people over time and according to their experiences or areas in which they are, in short, what for a person can be rational in this At the moment, it won't be in the future.
The above gives us a perspective of decision-making in many fields where it can be observed that the most important thing is the search for self-benefit and where opportunity costs are weighed in order to see what is most useful within the opportunities They are available. The most interesting of all is to understand that we live with economic science on a daily basis and that without a doubt it is immersed in us when making decisions; It is also called "The hidden logic of life."
