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4 years ago

Managers use a predetermined overhead rate for which of the following reasons?

Business

1 answer:

Rashid [163]4 years ago

4 0

Answer:

Option A and B

Explanation:

The company desires to estimate the cost of the job so that it can minimize it by emphasizing control. This is one of the major reasons why the companies estimate cost of the job, product or service. So option A is correct.

Option B is also correct because the companies have to form contracts with its customers and for that reason predetermined overhead rates helps a lot estimating the price of the product which the company and customer can agree upon.

Option C is incorrect because predetermined costs are estimates and estimates are not always accurate.

Option D is false because daily recording of overheads requires predetermined overhead rates which is adjusted at the month end or quarter end or year end. So its not useless at all.

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Sandhill Company issued $2,400,000 of 10%, 10-year bonds on January 1, 2017, at 103. Interest is payable semiannually on July 1

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3 years ago

You manage a $10 million portfolio, all invested in equities; the beta for your portfolio is 0.70. You believe the market is on

andreev551 [17]

Answer:

a. You should short the contract to hedge the portfolio.

b. You should enter 19 contracts.

Explanation:

a) According to the given becuase we own portfolio ( underlying), we need to sell future contracts in order to hedge. So short the contract to hedge the portfolio.

b. To calculate how many contracts should you enter we would have to use the following formula:

number of contract required = (beta * portfolio value) / (beta of futures"Index value * multiplier)

Therefore, N = 0.7*10,000,000 / (1*1500*250) = 18.67 = 19 contracts

You should enter 19 contracts

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3 years ago

The first step in preparing a flexible budget is to ________. identify the fixed and variable cost components prepare the budget

madam [21]

Answer:

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3 years ago

Keys Printing plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% annual coupon, paid semiannually. The com

Tresset [83]

Answer:

The WACC change if the new tax rate was adopted is - 0.35%

Explanation:

For computing the WACC change, first we have to determine the after tax cost of debt by applying the 40% and 45% tax rate which is shown below:

After tax Cost of debt = Cost of debt × ( 1- tax rate)

For 40% tax rate, it would be

= 7% × ( 1 - 40%)

= 4.2%

For 45% tax rate, it would be

= 7% × ( 1 - 45%)

= 3.85%

The change in WACC would be

= 3.85% - 4.2%

= - 0.35%

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3 years ago

Managers are important members of the organization. Within an organization, there are managers at four levels: top, middle, firs

Zolol [24]

Answer:

1. Pat is Middle Level.

Pat is trying to implement the strategic goals of the company which are set by Top Management. That would make Pat a Middle level manager.

2. Rick is Top Level.

Rick is developing the policies for the entire company which would place Rick at Top Manager level.

3. Daisy is a First-line Manager

Daisy is responsible for the loading products such that it is done effectively. This is an operational duty which would place Daisy at First-line level.

4. Ruth is a First-Line Manager

Ruth directs art staff who are non-managers which would make Ruth a first-line manager

5. Gary is Top Level

By developing projections on long term growth, that means Gary contributes to strategic decisions thereby making Gary top level.

6. Greg is Middle Level

Greg is in charge of first line managers which places him directly on top of them which means he is a middle level manager.

7. Mike is a Team Leader

Mike is in charge of the team which is the textbook role of a team leader.

8. Nancy is a Team leader

The members of the team go to Nancy when they need to resolve conflict or when they want to coordinate their activities. As the team leader is in charge of team coordination, Nancy must therefore be a team leader.

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3 years ago