Answer:
Overhead absorption rate
= Overhead absorbed/Actual labour cost x 100
= $4,400/$800 x 100
= 550% of direct labour cost
Explanation:
Since the overhead absorbed is $4,400, there is need to divide the overhead absorbed by actual direct labour cost multiplied by 100. This gives the overhead application rate.
Answer:
The correct answer is A. The time value of money.
Explanation:
In economic theory, the temporary value of money is intended to represent the idea that a dollar of today is worth more than a dollar of the future, even after adjusting for inflation, because a dollar can now generate interest or other returns up to moment in which the dollar of the future is received. This theory is based on the calculation of present or current value.
Answer: $54,000 per production run
Explanation:
As we are dealing with the decision of whether or not to process the good further, the irrelevant cost would be the cost of producing product B from input R.
This is because this cost has already been incurred to produce product B and so is a sunk cost. Sunk costs are irrelevant to the decision to process further.
30,000 units of B were made from 90,000 units R so the cost of B is:
= 30,000 / 50,000 * 90,000
= $54,000
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<em>The options here are probably for a variant of this question.</em>
Answer:
$240,885.11
Explanation:
The formula to be used is = annual payment x annuity factor
Annuity factor = {[(1+r) ^N ] - 1} / r
R = interest rate = 8.2 percent
N = number of years = 25
[(1.082^25) - 1 ] / 0.082 = 75.276598
75.276598 x $3,200 = $240,885.11
I hope my answer helps you
Answer:
A. - The net public debt decreases
The net public debt decreases because the government has obtained more funds in tax revenue. For this reason, the government will likely run a budget surplus.
B. - The net public debt increases
The government was already running a budget deficit (albeit a small one). With the effects of the hurricane, the government will have to spend more to help the people affected, and will likely have to borrow even more, increasing its deficit.
C. - The net public debt remains unchanged
There was a transfer of funds from one government agency to the other, and the net effect of such transfer is likely to be very small to make any significant change in the net public debt. The net public debt remains unchanged.
