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Yakvenalex [24]

3 years ago

7

If the allocation base in the pre-determined overhead rate does not drive overhead costs, it will nevertheless provide reasonabl

y accurate unit product costs because of the averaging process. A. True B. False

1 answer:

navik [9.2K]3 years ago

4 0

Answer:

B. False

Explanation:

The production costs are the cost that is involved in the formation of a product and they include the direct labor and material and the consumer production supplies and the factory overhead.

The production cost can also be also to be considered to be the cost of the labor that is delivered to a service to the consumer. The overhead cost includes the insurance, the interest, and the legal fees, and does not involve an averaging process.

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Pember Corporation started business in 2012 by issuing 200,000 shares of $20 par common stock for $27 each. In 2017, 25,000 of t

natima [27]

Answer:

Option D is the correct option. Please choose option D that is $150,000.

Explanation:

Amount of paid-in capital from treasury stock transactions = Shares exchanged * (Market Price - Share purchase Cost)

Where Shares exchanged = 25000

Market price = $45

Cost of share = $39

Therefore, the amount of paid-in capital from treasury stock transactions = 25000 shares * (45 - 39) = $150,000

Option D $150,000 is correct

6 0

2 years ago

A list of financial statement items for Blossom Company includes the following:

cricket20 [7]

Answer:

Total current assets $83,580

Explanation:

The preparation of the current assets section of the balance sheet is shown below:

<u>Current Assets Amounts </u>

Cash $22,360

Debt investments(short term) $17,360

Accounts receivables $30,100

Supplies $8,170

Prepaid Insurance $5,590

Total current assets $83,580

5 0

2 years ago

A bank buys bonds with a par value of $25 million for $24,040,000. The coupon rate is 10 percent, and the bonds pay annual payme

Ilya [14]

Answer:

$25,891,632.37

Explanation:

The computation of the market value of the bond in two years is given below:

We know that

Market value of the bonds be in two years is

= pv(rate, nper,pmt,fv)

Here

Nper = 2

PV = ?

PMT = 25000000 × 10% = 2500000

FV = 25000000

Rate = 8%

Now

Market value of the bonds be in two years is

= pv( 8%,2,2500000,25000000)

= $25,891,632.37

3 0

2 years ago

If a small electric automobile manufacturer is able to gain the social return generated by its electric motor, its demand for fi

Law Incorporation [45]

Answer: shift to the left

Explanation:

The social return helps in comparing the value of benefits and the costs to achieving the benefits. The social return is the ratio of net present value of the benefits in comparison to the net present value of the investment or the costs to getting the benefits.

In this case, if a small electric automobile manufacturer is able to gain the social return generated by its electric motor, it would decrease the demand for financial capital which simply means that the demand for financial capital will shift to the left. This shift to the left is as a result of the gain in its social return gotten by the electric motor.

5 0

3 years ago

MGM Resorts Incorporated is expected to grow at an exceptionally high rate over the next 2 years due to the success of Macau cas

Burka [1]

Answer:

The value of a share of MGM Resorts stock today will be $16.42

Explanation:

In order to calculate the value of a share of MGM Resorts stock today we would have to calculate the following steps:

Step-1, Dividend for the next 2 years

Dividend per share in Year 0 (D0) = $1.20 per share

Dividend per share in Year 1 (D1) = $1.4400 per share [$1.20 x 120%]

Dividend per share in Year 2 (D2) = $1.7280 per share [$1.4400 x 120%]

Step-2, Share Price in Year 2

Dividend Growth Rate after Year 2 (g) = 4.00% per year

Required Rate of Return (Ke) = 14.00%

Share Price in Year 2 (P2) = D2(1 + g) / (Ke – g)

= $1.7280(1 + 0.04) / (0.14 – 0.04)

= $1.7971 / 0.10

= $17.97 per share

Step-3, The Current Stock Price

As per Dividend Discount Model, Current Stock Price the aggregate of the Present Value of the future dividend payments and the present value the share price in year 2

Year Cash flow ($) PVF at 14.00% Present Value of cash flows ($)

[Cash flows x PVF]

1 1.4400 0.877193 1.26

2 1.7280 0.769468 1.33

2 17.97 0.769468 13.83

TOTAL 16.42

Hence, the value of a share of MGM Resorts stock today will be $16.42

6 0

3 years ago