Answer:
Option (A) is correct.
Explanation:
Given that,
Amount paid to retire a note = $75,000
Face value of a note = $83,000
Coupon rate = 8% (Paid semi-annually)
Net book value of a note = $68,200
The net gain or loss on the redemption of the note is determined by the difference between the net book value of the note and the amount paid to retire the note. A negative amount indicates that there is a loss on the redemption and a positive amount indicates that there is a gain on the redemption.
Net gain or loss:
= Net book value of a note - Amount paid to retire a note
= $68,200 - $75,000
= -$6,800
Therefore, there is a net loss of $6,800 on the redemption of the note.
Answer:
$45; $50
Explanation:
Given that,
Quantity sold (at price = $50 per bottle) = 10 bottles of champagne
Quantity sold (at price = $45 per bottle) = 11 bottles of champagne
Therefore,
Quantity effect (keeping the price unchanged):
= (11 - 10) × $45
= $45
Price effect (keeping the quantity unchanged):
= ($45 - $50) × 10
= - $50
Hence, total revenue experiences an increase of $45 and a decrease of $50.
Answer:
b. credit to factory overhead for $432,000.
Explanation:
Before recording the factory overhead costs we need to do the calculations which are shown below:
For computing the ended overhead amount, first, we have to compute the predetermined overhead rate. The formula is shown below:
Predetermined overhead rate = (Total estimated factory overhead) ÷ (estimated direct labor-hours)
= $360,000 ÷ 30,000 hours
= $12
Now we have to find the actual overhead which equal to
= Actual direct labor-hours × predetermined overhead rate
= 36,000 hours × $12
= $432,000
So, the ending overhead equals to
= Actual manufacturing overhead - actual overhead
= $377,200- $432,000
= $54,800 under-applied
