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Tema [17]
3 years ago
7

Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard mac

hine-hours (MHs). The company has provided the following data for the most recent month: Budgeted level of activity 8,600 MHs Actual level of activity 8,700 MHs Standard variable manufacturing overhead rate $ 5.80 per MH Budgeted fixed manufacturing overhead cost $ 51,000 Actual total variable manufacturing overhead $ 52,600 Actual total fixed manufacturing overhead $ 55,100 What was the fixed manufacturing overhead budget variance for the month?a.$4,200 Unfavorable b.$590 Unfavorable c.$590 Favorable d.$4,200 Favorable
Business
1 answer:
Basile [38]3 years ago
4 0

Answer:

$4,100 Unfavorable

Explanation:

Data provided as per the question

Budgeted fixed overhead cost = $51,000

Actual fixed overhead cost = $55,100

The computation of the fixed manufacturing overhead budget variance is given below:-

Budget variance = Budgeted fixed overhead cost - Actual fixed overhead cost

= $51,000 - $55,100

= $4,100 Unfavorable

In the given question the right answer is not available. So, the right answer is $4,100 unfavorable.

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1 year ago
On January 1, Year 1, Greenfield, Inc. issues $100,000 of 9% bonds maturing in 10 years when the market rate of interest is 8%.
ELEN [110]

Answer:

When using a financial calculator to compute the issue price of the bonds, the applicable periodic interest rate ("I") is 3.923%

Explanation:

Hi, first, the discount interest rate that you have to choose is 8%, because 9% is the coupon rate (which in our case would be 9%/2=4.5% and this is used only to find the amount to be paid semi-annually).

Now we know we have to choose 8%, but this is an effective rate (I know this is an effective rate because no units were mentioned), and by definition it is a periodic rate, but it is not the rate that we need since the payments are going to be made in a semi-annual way, therefore we need to use the following equation.

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So, everything should look like this.

r(semi-annual)=[1+0.08]^{\frac{1}{2} } -1=0.03923

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