Answer:
10.12%
Explanation:
The computation of the WACC is shown below:
= Cost of debt × (1 - tax rate) × weight of debt + cost of equity × weight of equity
= 6% × (1 - 0.21) × 0.35 ÷ 1.35 + 12% × 1 ÷ 1.35
= 1.23% + 8.89%
= 10.12%
We simply multiplied the capital structure with each of its weight so that the WACC could come and the same is to be considered
Answer:
b) Equal payments and an infinite life
Explanation:
A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever.
Answer:
The answer is: The variable maintenance cost is $0.21 per machine hour
Explanation:
To find the variable maintenance cost per machine hour we must divide the total amount spent in maintenance costs by the total amount of production hours.
Since both production hours and maintenance cost vary so much, we must high-low method:
variable maintenance cost = (highest maintenance cost - lowest maintenance cost) / (highest machine hours - lowest machine hours) =
= ($10,500 - $8,600) / (23,000 - 14,000) = $0.21 per machine hour
I believe the question you're asking is cut off...
Answer:
the efficiency variance for variable overhead setup costs is $4,810 favorable
Explanation:
The computation of the efficiency variance for variable overhead setup costs is shown below;
= ((15,700 ÷ 265) × 4.25) × $45 - ((15,700 ÷ 325) × 3) × $45
= $11,330.6604 - $6,521.5384
= $4,809.12 favorable
= $4,810 favorable
hence, the efficiency variance for variable overhead setup costs is $4,810 favorable
