Answer:
Explanation:
Standard fixed overhead rate=budgeted fixed overhead costs/practical capacity=$400000/32000=$12.50
Fixed overhead spending variance=Actual fixed overhead-Budgeted fixed Overhead=$403400-$400000=$3400
Fixed overhead volume variance=Budgeted fixed overhead-(Standard hours*Standard fixed overhead rate)=400000-(0.80*32000)=$397440
Answer:B. $700 of new reserves.
Explanation: Reserve ratio is the percentages of bank deposits which commercial banks must keep with them and not lend out, this is done by central bank in order to control inflation, interest rates etc
In ordinary terms reserve ratio is the percentage amount that is kept aside for future endeavours. Reserve ratio is very good to protect an organisation or a country during trying times.
A higher reserve ratio will reduce money lending rate and make commercial banks have less amounts to lend out.
If the reserve ratio is 12.5%, the dollar value of the amount that can be reserved from $5600.
The formula is as follows,the reserve ratio divided by one hundred multiplied by the amount. The reserve in Dollar value will be
Equal to (12.5%/100)*$5600= $700.
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Answer:
The contribution margin ratio will increase.
Explanation:
Giving the following information:
BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. BrewCo can reduce its variable cost per unit to $58.
Contribution margin ratio= (selling price - unitary variable cost)/selling price
New Contribution margin ratio= (120 - 58)/120= 0.52
Old Contribution margin ratio= (120 - 65)/120= 0.46
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