Answer:
Predetermined manufacturing overhead rate= $2.15 per direct labor hour
Explanation:
Giving the following information:
It takes 80,900 direct labor hours to manufacture the X-1 and 93,500 direct labor hours to manufacture the X-2 Line.
Total overhead= 225,000 + 149,960= $374,960
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 374,960 / (80,900 + 93,500)
Predetermined manufacturing overhead rate= $2.15 per direct labor hour
Answer:
The WACC will be 10% for average risk
below when the risk is low
and above 10% when the risk is higher than average
as the cost of capital (required return from the stockholders) will increase pushing the WACC higher
Explanation:
As the WACC is composed by the cost of debt and the cost of equity a higher risk will require a better return for the investor thus, the equity proportion that determinates the WACC will change along the project risk.
Answer:
d. $96,914
Explanation:
Parker Co. can execute money market hedge in following steps:
(1) Parker Co. pledges Receivable of SF200,000 to borrow SF190,476 with rate 5% in Switzerland; SF190,476 = SF200,000/ (1+5%)
so it has to pay interest expense of SF9,524 in 360 days. The receivable of SF200,000 is enough for both principal and interest in 360 days.
(2) Then it sells SF190,476 at spot rate $0.48 to get $91,428
(3) Then it deposits $91,428 in US with rate 6% to get back $96,914 in 360 days
; $96,914 = $91,428 * (1+6%)
Answer:
$72,200
Explanation:
For computing the amount included in the income statement as an investment we need to applied the equity method which is shown below:
= Earned amount × given percentage
= $361,000 × 20%
= $72,200
We simply multiply the earned amount by Nash with the acquiring percentage i.e 20% so that the amount could come and the same is to be included in the income statement
Answer:
That's because as a country's economy grows, the amount of revenue a government can spend to pay its debts grows as well. In addition, a larger economy generally means the country's capital markets will grow and the government can tap them to issue more debt.
Explanation:
hope it helps
