Answer: A. Products were overcosted during the year.
Explanation:
At the budgeted figures of $25,000 fixed overhead costs and the 2,000 units of production, the predetermined fixed overhead rate is:
= 25,000 / 2,000
= $12.50 per unit
However, the company then produces 2,200 units at the same cost of $25,000 making the actual predetermined fixed overhead rate:
= 25,000 / 2,200
= $11.36 per unit
<em>The actual rate is less than the predetermined rate which means that the products had originally be overcosted by being apportioned higher expenses. </em>
Answer:
$1585
Explanation:
Interest for the first year = 6.5% of principal due at the beginning of the year
= 6.5% of $10,000
= $ 650
Principal repayment at the end of the year = $1000
Principal due at the beginning of the second year = $10,000 - $1000= $9000
Interest payable at the end of the second year = 6.5% of principal outstanding at the beginning of the second year = 6.5% of 9000
= $ 585
Principal repayment at the end of the second year = $1000
Hence total payment at the end of the second year = $1000 + $585= $1585
Answer:
<em>End up losing because it is legally binding the clause that would limit the statute of limitations to 18 months.</em>
Explanation:
Within UCC 2-725, in cases that involve the exchange of goods, a 4-year restriction law applies. The parties can reduce the duration to not less than 1 year (but not extend it).
When a delivery tender is made, an action for violation of warranty accrues (the statute begins to run).
However if the warranty specifically applies to future performance and violation disclosure must postpone that performance, the penalty will occur when the breach is discovered or should have been discovered.
