Answer:
Option b is correct
Explanation:
The requirement of this service is to be independently derived because the procedures vary according to needs of the parties involved in the agreement.
Answer:
$35,000 is the maximum amount that Crigui should pay
Explanation:
Total cost if manufactured internally;
Direct materials $13,000
Direct labor 15,000
Variable overhead 3,000
Fixed overhead 7,000
————
Total cost $38,000
Therefore, $38,000 - $3,000 (unavoidable cost) = $35,000
Answer:
a. 10.04%
b. $82.78
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
a. Expected rate of return or market capitalization = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 5% + 0.72 × (12% - 5%)
= 5% + 0.72 × 7%
= 5% + 5.04%
= 10.04%
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.
b. Now the intrinsic value would be
= Expected dividend ÷ (Required rate of return - growth rate)
= $5 ÷ (10.04% - 4%)
= $5 ÷ 6.04%
= $82.78
Answer: E) Recoding
Explanation:
Recoding refers to the changing of a variable to better suit the needs for which the variable is being collected.
The variable's parameters can be redefined using recoding to either include more information or less so that the result can be more reflective of the situation on ground.
In mixing the lowest income category with the next lowest, recoding would have occurred.
Answer:
Cost of goods manufactured= $228,700
Explanation:
<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 25,500 + (46,000 + 75,500 - 39,500) + 100,500 + (68,500 - 11,800) - 36,000
cost of goods manufactured= $228,700
We deduct the indirect material from overhead because it is already incorporated into direct materials.
