Answer:
Option (B) is correct.
Explanation:
Given that,
Borrowed amount by west company from valley bank = $50,000
Interest is paid annually = 6% per year
Time period = From 1st September to 31st December
= 4 months
The note issued by West carried an 18-month term.
Therefore,
Interest expense = Principal amount × Rate × Time period
= $50,000 × 6% × (4 ÷ 12)
= $50,000 × 0.06 × (1 ÷ 3)
= $1,000
Therefore, the amount of interest expense that will be reported on West's income statement for Year 1 is $1,000.
Answer:
Direct Labor Rate Variance = $625000 unfavorable
Explanation:
given data
standard rate = $12
actual rate = $13.25
actual hours = 500,000
to find out
What is the Direct Labor Rate Variance
solution
we get here Direct Labor Rate Variance that is express as
Direct Labor Rate Variance = ( standard rate - actual rate ) × actual hours ................. 1
put here value we get
Direct Labor Rate Variance = ( 12 - 13.25 ) × 500000
Direct Labor Rate Variance = $625000 unfavorable
Answer:
b.The IRR would not change
Explanation:
The IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.
The IRR isn't affected by changes in the cost of capital because it isn't used in the calculation of the IRR.
An investment is accepted if the IRR is greater than the cost of capital .
Changes in the cost of capital would affect the NPV because it is used in the calculation of NPV.
I hope my answer helps you
Answer:
e. All of the above
Explanation:
Performance management is an activity that is done by management in the entire company. The entire process starts from collecting good quality information about the set standards and the actual performance.
When the management chooses to have some difficult conversations that is about areas which are not considered to improve they tend to increase the scope of improvement in those areas also.
This entire process requires huge co-operation from the entire business unit, employees, workers, and entire staff.
The business should always be run as a team task. Further the management shall describe the entire work to each team properly. And broader the information areas, more advanced performance will be regulated and better scope of improvement will be observed.
Thus, all the stated statements are true and correct about performance management.
Answer:
The additional cost will be total variable cost per unit.
For example assume that total variable cost per unit for the unit is $2 and the selling price of unit product is $5. The fixed cost is $100,000 and the unit produced are 35000
Now
Total cost for 35000 units = $100,000 + $2*35000 units = $170,000
Now assume that we have produced 35001 units,
Total cost for 35001 units = $100,000 + $2*35001 units = $170,002
The additional cost is $2 per unit which is Total variable cost per unit.