Answer:
<u>a. $2,673 over applied</u>
Explanation:
a. Remember, it was mentioned that the company's predetermined overhead rate is $81 per hour of bandsaw use, although the actual hours of bandsaw use 153.
Calculating the results we have $2,673 over applied (actual value= $81*153-$15,066).
b. In preparing an income statement all underapplied overhead would be recorded as a prepaid expense on the balance sheet and then corrected through increasing cost of goods sold at the end of the time period.
Answer:
Differentiation strategy
Explanation:
Differentiation strategy is an approach by a business to make its products and services unique and better in comparison to products from its competitors. The strategy aims at creating a perception in customer's minds that the company products are superior.
The company aims to attract more sales by distinguishing itself from the competition.
Answer:
Nominal rate of return= 10.96%
Explanation:
Inflation is the increase in the price level.It erodes the value of money.rise in the price of money
<em>Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation. </em>
<em>Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.
</em>
The relationship between inflation, real interest and nominal interest rate is given using the Fishers Effect;
N = ( (1+R) × (1+F)) - 1
N- nominal rate, R-real rate, F- inflation
Nominal rate of return =(1.038)× (1.069) - 1 = 0.109622
Nominal rate of return = 0.109622
× 100 = 10.96%
Nominal rate of return= 10.96%
Answer:
Toyosan's air bag was defective because it did not meet the expectations of a reasonable consumer.
Explanation:
Since the airbag was not as effective as it was expected by the customers, a suit against the car manufacturers from product liability may see the court conclude that the air bag was defective since it did not meet the expectations of a reasonable consumer which would have been protecting her head from hitting the steering wheel which still occured even tho the air bag was deployed.
