Answer:
d. $11.11 per unit
Explanation:
Plant wide overhead rate = Total manufacturing cotsts / Total direct labor hours
Plant wide overhead rate = ($2,530,000 + $900,000) / (168,000+110,000)
Plant wide overhead rate = $3,430,000 / 278,000
Plant wide overhead rate = $12.34 per DLH
Overhead cost per unit = Plant wide overhead rate * Direct hours per unit
Overhead cost per unit = $12.34 * 0.90
Overhead cost per unit = $11.11 per unit
Answer: 48%
Explanation:
Based on the information given, the average rate of return will be:
= (Average return) / (Average Investment) x 100
where, average return will be:
= ($240000 × 4)/4
= $240000
Then, annual averay rate of return will be:
= $240000/$500000 × 100
= 48%
Answer:
D. speed money.
Explanation:
Speed money or grease money are monies payed to fasten a routine process. For example to gain approval for a project, to clear a shipment.
Speed money differs from bribery because the end result is something that will be done with or without the speed money, so it is given to speed the process along.
Sometimes speed money is obligatory. To show it was payed legally documentation should be done.
Answer:
The athlete with equal installments got the better deal.
Explanation:
Two athletes each sign 10-year contracts for $80 million.
In one case, we’re told that the $80 million will be paid in 10 equal installments.
In the other case, the $80 million will be paid in 10 installments, but the installments will increase by 5 percent per year.
The one with equal installments will get $8 million every year.
But the one with increasing installments will get smaller payments initially as his payments were to be increased by 5% each year.
Though the total value of both the annuities will remain the same.
Answer:
If sales fall by 20% AFC raises 38 cents per paper, i.e. a 25% increase in AFC.
Explanation:
To find the average fixed cost (AFC), we have to sum all fixed costs and divide it by the amount of units produced. Fixed costs are those that don't depend on how much is produced, in this case, rental and labor cost don't depend on output, as you can neither move to a cheaper place nor decrease labor obligations even if the factory had no output (newspapers printed).
![AFC=\frac{\mbox{Fixed costs}}{\mbox{Printed papers}} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{1000000 papers}=1.5\frac{\$}{paper} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{800000 papers}=1.875 \frac{\$}{paper}](https://tex.z-dn.net/?f=AFC%3D%5Cfrac%7B%5Cmbox%7BFixed%20costs%7D%7D%7B%5Cmbox%7BPrinted%20papers%7D%7D%20%5C%5C%5C%5CAFC_%7B%5Cmbox%7Boriginal%20sales%7D%7D%20%3D%5Cfrac%7B%5C%241500000%7D%7B1000000%20papers%7D%3D1.5%5Cfrac%7B%5C%24%7D%7Bpaper%7D%20%5C%5C%5C%5CAFC_%7B%5Cmbox%7Boriginal%20sales%7D%7D%20%3D%5Cfrac%7B%5C%241500000%7D%7B800000%20papers%7D%3D1.875%20%5Cfrac%7B%5C%24%7D%7Bpaper%7D)
![\mbox{Porcentual difference}=\frac{\mbox{difference between AFC}}{\mbox{original AFC}} \\\\\mbox{Porcentual difference}=\frac{1.875-1.50}{1.50}*100=\frac{0.375}{1.5} *100=25\%](https://tex.z-dn.net/?f=%5Cmbox%7BPorcentual%20difference%7D%3D%5Cfrac%7B%5Cmbox%7Bdifference%20between%20AFC%7D%7D%7B%5Cmbox%7Boriginal%20AFC%7D%7D%20%5C%5C%5C%5C%5Cmbox%7BPorcentual%20difference%7D%3D%5Cfrac%7B1.875-1.50%7D%7B1.50%7D%2A100%3D%5Cfrac%7B0.375%7D%7B1.5%7D%20%2A100%3D25%5C%25)
We can see that as the output reduced, AFC rose 38 cents per paper or a 25% increase in AFC.