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GREYUIT [131]
3 years ago
15

In October, Pine Company reports 20,700 actual direct labor hours, and it incurs $124,200 of manufacturing overhead costs. Stand

ard hours allowed for the work done is 20,700 hours. The predetermined overhead rate is $6.15 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $4.45 variable per direct labor hour and $54,000 fixed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours.
Business
1 answer:
mars1129 [50]3 years ago
7 0

Answer:

$18,810 Unfavorable

Explanation:

The computation of the overhead volume variance is shown below:-

Overhead volume variance = Budgeted Overheads - Recovered Overheads

= (20,700 × $4.45 + $54,000) - (20,700 × $6.15)

= $92,115 + $54,000) - (20,700 × $6.15)

= $146,115 - $127,305

= $18,810 Unfavorable

Here, the budgeted overhead is more than recovered overhead so it becomes unfavorable.

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A stock has an expected return of 11.85 percent, its beta is 1.24, and the expected return on the market is 10.2 percent. What m
prisoha [69]

Answer:

The risk free rate is 3.325%

Explanation:

The required rate of return or cost of equity of a stock can be calculated using the CAPM. The CAPM estimates the required rate of return of a stock based on three factors- risk free rate, stock's beta and the market risk premium. The equation of required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on market
  • (rM - rRF) gives us the risk premium of market

We already have the values for r, Beta and rM. Plugging in these values in the formula, we calculate the rRF to be,

Let rRF be x.

0.1185 = x + 1.24 * (0.102 - x)

0.1185 = x + 0.12648 - 1.24x

1.24x - x  =  0.12648 - 0.1185

0.24x = 0.00798

x = 0.00798/0.24

x = 0.03325 or 3.325%

3 0
3 years ago
How can inappropriate use of power by managers have a negative effect on employees? How might it negatively affect the business?
Kruka [31]
The inappropriate use by managers may get out and stop customers from shopping there 
5 0
3 years ago
The computation and interpretation of the degree of combined leverage (DCL)You and your colleague, Malik, are currently particip
erastova [34]

Answer:

1. expected to be the same

2. expected decrease to 1.11

3. expected decrease to 2.67

Explanation:

1. Degree of Operating Leverage = Contribution margin ÷ Earning before interest and tax

= $48,000,000 ÷ $20,000,000

= $2.40

2. Degree of Financial Leverage = Earning before interest and tax ÷ Earning before tax

= $20,000,000 ÷ $16,000,000

= $1.25

3. Degree of total leverage = Contribution margin ÷ Earning before tax

= $48,000,000 ÷ $16,000,000

= $3.00

The repayment 50% of bank loan

1. The Degree of Operating Leverage is expected to be the same.

2. Degree of Financial Leverage = $20,000,000 ÷ $18,000,000 = 1.11

The Degree of Financial Leverage is expected to be decrease to 1.11

3. Degree of total leverage = $48,000,000 ÷ $18,000,000 = 2.67

The Degree of total leverage is expected that it will decrease to 2.67

4 0
3 years ago
Mays Corp. reported free cash flows for 2018 of $491 million and investment in operating capital of $321 million. Mays Corp. inc
Anon25 [30]

Answer: $975 million

Explanation:

Given the above details, we can solve for Earnings Before Tax and Interest with the following formula,

Operating Cash Flow = EBIT – Taxes on EBIT + Depreciation

Making EBIT the subject would turn it to be,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

We have all of the above except the EBIT and Operating Cash Flow.

Luckily we can solve for the Operating Cash Flow with the details given using,

Operating cash flow = Free Cash Flow + Investment in operating capital

Therefore,

= $491 million + $321 million

= $812 million

Operating cash flow is $812 million

Plugging it into the original formula we have,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

EBIT = $812 million + $309 million - $146 million

EBIT = $975 million

Earnings before Taxes and Interest is $975 million.

If you need any clarification do react or comment.

5 0
3 years ago
WILL GIVE BRAINLIEST!!
anyanavicka [17]

Answer:

Explanation:

Of free enterprise

7 0
3 years ago
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