Answer: a). Debit Factory Payroll Payable $160,000; credit Cash $160,000.
Explanation: Direct labor refers to the manpower used in production. They are the factory workers involved in using the raw materials to produce finished goods.
Expense on direct labor is provided for during the production by a debit to factory payroll expense and a credit to factory payroll payable.
As such, the journal entry will be a debit to factory payroll payable $160,000 and a credit to cash $160,000. This means cash will reduce by $160,000 as the factory workers are paid while payables which is a provision account will reduce as well on the cash book by the same amount.
Answer:
Consider the following explanation.
Explanation:
Marginal product MP is the increase in production of good because of unit increase in labor. Value of marginal product VMP is the increase in value of production of goods because of unit increase in labor.
The minimum wage is a regulation where the person who hired the labor needs to pay minimum wage and cannot pay below that. Here, the minimum wage is below the competitive market rate so it will not make any difference because the workers are already getting $7 as wage which is more than the minimum wage which is $6.
Answer:
7.28%
Explanation:
Using the dividend discount model
where P = price
g = growth rate
r = market rate of return
Therefore, becomes,
= r = (1.80 * 1.04)/25.71
= r = market rate of return = 7.28%
P = $12,000, the principal
t = 15 years, the duration of the loan
n = 12, assume monthly compounding
n*t = 12*150 = 180
Because there are 15 yearly payments of $1,401.95, the value of the loan is
A = 1401.95*15 = $21,029.25
If the interest rate is r, then
12000*(1 + r/12)¹⁸⁰ = 21029.25
(1 + r/12)¹⁸⁰ = 1.7524
Because 1/180 = 0.00556, therefore
1 + r/12 = 1.7524⁰°⁰⁰⁵⁵⁶ = 1.003121
r/12 = 0.003124
r = 0.0375 = 3.75%
Answer: The interest rate is 3.75%