The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate
1 answer:
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Answer:
$1,667.67
Explanation:
Given:
Balance in savings account at the beginning of the year = $2,000
Price level at the beginning of the year = 100
Price level at the end of the year = 120
Anything that is worth $120 in the beginning of the year is worth $100 at the end of the year.
Anything worth $1 in the beginning is worth 100/120 at the end.
So, $2,000 is worth = $1,667.67 at the end of the year.
Real value of savings is close to $1,667.67.
Answer:
activitity rate:
sprocked unit cost: $ 38.95
hub units cost: $ 93.00
Explanation:
We divide teh cost pool over the total of the cost driver.
This give us the activitty rate.
Then we multiply each rate by the use of each product:
And divide by the total units to get the unti manufacturing overhead
Finally we add the cost component:
Sprocked:
materials $ 18 + $ 15 x 0.40 units + $ 14.95 = 38.95
Hubs
materials $ 32 + $ 15 x 0.80 units + $ 49 = 93