True or false

Judd Company uses standard costs for its manufacturing division. Standards specify 0.2 direct labor hours per unit of product. T

Katena32 [7]

Answer:

Variable manufacturing overhead rate (cost) variance= $4,756.95 unfavorable

Explanation:

Giving the following information:

Budgeted variable overhead costs $13,500

Budgeted direct labor hours 640 hours

Actual:

Actual variable overhead costs $15,200

Actual direct labor hours 495 hours

To calculate the variable overhead rate (cost) variance, we need to use the following formula:

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Standard rate= 13,500/640= $21.1

Actual rate= 15,200/495= $30.71

Variable manufacturing overhead rate variance= (21.1 - 30.71)*495

Variable manufacturing overhead rate variance= $4,756.95 unfavorable

3 0

4 years ago

Adding a new product line to an existing portfolio means that the line has __________________. A. increased product support ser

OLEGan [10]

Answer:

B. extended product line length

Explanation:

The product line is a pricing strategy refers to as the pricing line extension and its purpose is to attract new customers, who may or may not be familiar with the current standard product line.

Thus It adds a higher quality to the current products, considered as trading and forward stretch. Various features include the price lining, bundle pricing, bait pricing, leader pricing.

Supermarkets like Walmart and amazon can often apply stretch top product lines so s to often grade there products to ensure that all markets are covered as to gain the maximum interest from customers.

7 0

4 years ago

15-10 A firm has 60,000 shares whose current price is $45.90. Those stockholders expect a return of 14%. The firm has a 3-year l

krek1111 [17]

Answer:

before taxes:

WACC 8.74959%

after a 21% tax-rate:

WACC 7.23587%

Explanation:

Equity: 60,000 x $45.90 = 2,754,000

Liabilities: 1,900,000 + 22,000 x 925 = 22,250,000

Value: 25,004,000

We solve for weights:

Ew = 2,754,000 / 25,004,000 = 0,1101423772196449

Lw = 22,250,000 / 25,004,000 = 0,8898576227803551

Cost of debt will be the market value rate of the bond That is the rate at which the future coupon payment and maturity matches the market price of the bond

we solve this using excel goal seek:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 35.00

time 20

rate 0.040545327

$35 \times \frac{1-(1+0.0405453269606019)^{-20} }{0.0405453269606019} = PV\\$

PV $473.3728

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $1,000.00

time 20.00

rate 0.04055

$\frac{1000}{(1 + 0.0405453269606019)^{20} } = PV$

PV 451.6270

PV c $473.3728

PV m $451.6270

Total $924.9998

a semiannual rate of 0.04055 is the market rate thus, cost of debt is

0.04055 x 2 = 0.081

Now we can solve for the WACC without taxes:

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.14000

Equity weight 0.1101

Kd 0.081

Debt Weight 0.8899

t 0

$WACC = 0.14(0.1101) + 0.081(1-0)(0.8899)$

WACC 8.74959%

wiht taxes of 21%

t 0.21

$WACC = 0.14(0.1101) + 0.081(1-0.21)(0.8899)$

WACC 7.23587%

4 0

4 years ago

Ag-Coop is a large farm cooperative with a number of agriculture-related manufacturing and service divisions. As a cooperative,

Anon25 [30]

Answer:

See complete solution in the picture attachment.

Explanation:

8 0

3 years ago

As the marketing director for Chipper's Golf Resort, you are making plans for the annual golf tournament, and trying to decide o

oksian1 [2.3K]

Answer: general manager

Explanation: The explanation given by the marketing manager will make sense to the general manager. As the winning amount of $10,000 is a big amount, it will attract the big players around the community.

Participation of trained and experienced players will eventually demotivate the normal players which can affect the revenue from registration and fees.

Hence the whole structure of the tournament will be tormented.

4 0

3 years ago