Answer: c. $1,650 unfavorable
Explanation:
The direct labor rate variance shows the difference between the cost of direct labor that the company thought it would incur vs what it actually incurs for the period.
Formula is:
Direct labor rate variance = Actual cost of direct labor - Standard cost of actual hours of direct labor
= Actual hours * (Actual cost - Standard cost)
= 5,500 * (24 - 23.70)
= $1,650 unfavorable
Unfavorable because the actual cost incurred was more than the cost anticipated.
Answer:
The correct answer is B. The law of demand states that quantity demanded will vary inversely with the price of the good.
Explanation:
The law of demand states that the value of demand decreases as the price of the product increases, that is, between the value of demand and the price there is an inverse relationship, therefore, an increase in price causes a decrease in demand, and a decrease in price causes an increase in demand.
Therefore, manufacturers who have decided to produce more should know that an increased number of goods can only be sold at a lower price.
The quantity of goods purchased depends on the price as well as on the average income of the buyers, the size of the market, the price and usefulness of other goods, including substitutes, subjective tastes and preferences of buyers.
Answer:
Expected market return is 13%
Explanation:
CAPM is used to calculate the expected return on an asset for decision making to add any further asset to a well diversified portfolio. It involves different factors like market risk premium, asset beta and risk free rate as well to calculate a return rate which is expected to obtain from underline asset or investment.
As per given data
Expected return = 17.2%
Stock beta = 1.6
Risk free rate = 6%
According to CAPM
Expected Return on security = Risk free rate + Stock beta ( Market Risk Premium )
17.2% = 6% + 1.6 × ( Market Risk Premium )
17.2% = 6% + 1.6 × ( Market return - Risk free rate )
17.2% = 6% + 1.6 × ( Market return - 6% )
17.2% - 6% = 1.6 × ( Market return - 6% )
11.2% = 1.6 × ( Market return - 6% )
11.2% / 1.6 = Market return - 6%
7% = Market return - 6%
7% + 6% = Market return
Market return = 13%
Answer:
a or b is the answer I am not sure so I gave two options
