Answer:
$3,060 Unfavorable
Explanation:
<em>Variable overhead efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours for same multiplied by the standard variable overhead rate</em>
<em>Variable overhead efficiency variance is determined as follows:</em>
Hours
12,320 packages should have taken (12,320 × 1.5 ) 18,480.
but did take <u>19,500</u>
Efficiency variance ( in hours ) 1,020 Unfav.
× standard variable OH rate <u> × $3</u>
Variable overhead efficiency variance ($) <u>$3,060 Unfavourable</u>
Answer:
The statement is true that Preferred stock valuation uses a constant dividend in its valuation while common stock can receive dividends based on fixed growth or dividends based on earnings and not a constant dividend.
The reason is because preferred stock has a guaranteed dividend with a fixed income. This fixed income can, therefore, be expressed as a fixed percentage, thereby making preferred stock a fixed income investment.
Explanation:
A preferred stock because of its fixed-income is similar to a bond. A bond earns a fixed percentage of interest. In the same way, a preferred stock earns a fixed percentage of dividend, though there are many variants under the preferred stock class. It is also like equity stock in that the stockholders participate in profit distribution but lack voting powers unlike common stockholders.
Answer:
18 %
Explanation:
Annual rate of return on this investment = annual profit / average investment x 100
where,
annual profit = $108000
average investment = (initial cost + salvage value) ÷ 2
= ($900000 + $300000) ÷ 2
= $600,000
therefore,
annual rate of return on this investment = $108000 / $600,000 x 100
= 18 %
more money and more busness
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