Answer:
The variance is 4,000 - 4,200 = -200 (favourable variance).
Explanation:
To know the production variance in this exercise, we first need to know the total standard cost, then calculate the difference between the actual cost and the standard one.
Total standard cost = production volume x hour used per one unit produced x overhead cost per hour = 1,000 x 3 x 1.4 = 4,200
So, the variance is 4,000 - 4,200 = -200 (favourable variance).
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C is correct.
As a result of a tariff, prices for domestic steel consumers go up so D is false. Option B is false because it does not make the market fair for everyone as now domestic producers can charge a higher price since foreign competition is being excluded. Since B, D are false it would make sense that A is also untrue as consumers are now suffering while it is the producers who benefit.
Answer:
b. 8.225%
Explanation:
The rate formula will be used to solve this question.
Please note that the NPER represents the time value.
Where;
Present value is $754.08
Let's assume that the face value is $1,000
PMT= 1,000 x 7.25% ÷2
=$36.25
NPER= 9 years x 2
= 18 years
The formulae is therefore
Rate(NPER,PMT,-,PV,FV)
The value of the present value is negative.
a. The pretax would therefore be 11.75%
b. After tax cost of debt would be ;
Pretax cost of debt x (1 - tax rate)
11.75% x (1 - 30%)
11.75% x (1 - 0.03)
=8.225%.
Answer:
D. Holding cost per unit per year is dependent on the selling price per unit.
Explanation:
The formulas are shown below:
Economic order quantity:
= 
The number of orders would be equal to
= Annual demand ÷ economic order quantity
The average inventory would equal to
= Economic order quantity ÷ 2
The total cost of ordering cost and carrying cost equals to
Ordering cost = Number of orders × ordering cost per order
Carrying cost = average inventory × carrying cost per unit
If in the question, the carrying cost is given in the percentage than the per unit cost is come after multiplying it with the selling price per unit
