Answer:
$13,780
Explanation:
For computing the overhead applied first we have to determine the predetermined overhead rate which is shown below:
Predetermined overhead rate = Total overhead cost ÷ Machine hours
= $810,900 ÷ 1,530 machine hours
= $530
Now the amount of overhead applied is
= predetermined overhead rate × number of machine hours used
= $530 × 26 machine hours
= $13,780
By multiplying the predetermined overhead rate with the number of machine hours used we can get the amount of overhead applied
Answer:
a.
Assets Side
Required Reserves $10 million
Excess Reserves $51 million
Loans $70 million
Total $131 million
Liabilities Side
Checkable Deposits $120 million
Bank Capital $11 million
Total $131 million
b. Bank capitalization can be measured with bank Leverage Ratio.
= Capital/Assets
= 11/131
= 8.40%
Bank is considered well capitalized if ratio is above 5% so Oldhat Financial is well capitalized.
c. Risk Weighted Assets = $50 million
Risk weighted capital ratio = 22%
Commercial loans are 100% risk weighted = $ 30 million
Residential mortgages are 50% risk weighted = $ 20 millions
Total = $50 million.
Risk weighted Capital Ratio = Bank capital / Total risk weighted assets
= 11/50
= 22%
Answer: The correct answer is "C. Parent company total assets equals consolidated total assets".
Explanation: The statement "C. Parent company total assets equals consolidated total assets" is false before making adjustments on the consolidated worksheet when a parent uses the equity method because the parent company total assets are not equal to consolidated total assets.
Answer:
b. Increase by $17,000
Explanation:
For computing the change in the operating income, first we have to determine the cost by make and buy options
Make options:
= Variable cost + fixed cost
= $70 + $60
= $130
Buy options:
= Outside supplier cost + fixed cost × remaining percentage
= $77 + $60 × 60%
= $77 + $36
= $113
So, the difference of cost would be
= $130 - $113
= $17
And, the operating income would be
= Number of units make in each year × cost difference
= 1,000 units × $17
= $17,000
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