Answer:
$1,600 Unfavorable
Explanation:
Given that,
Budgeted fixed overhead = $1.00 per hour
Expected capacity = 5,000 units
Standard quantity = 2 hours per unit
Actual units produced = 5,200
Total overhead costs = $12,000
Controllable variance:
= Actual Overhead cost - Budgeted cost of actual production
= $12,000 - (Actual units produced × Budgeted fixed overhead × Standard quantity)
= $12,000 - (5,200 × $1 × 2)
= $12,000 - $10,400
= $1,600 Unfavorable
Explanation:
Companies primarily outsource cost reduction. Yet today it is not just a matter of reducing costs but also of taking advantage of the advantages of practice for outsourcing, such as gaining professional skills, minimizing turnover, agile personnel and improving efficiency.
For many businesses, outsourcing — using external companies to handle the job usually done within a company— is a familiar concept. Small businesses often outsource manufacturing, billing, marketing, and many others because they have no choices. Most big firms outsource production to raise.
More broadly, outsourcing risks are usually covered by four broad categories: loss of control; loss of innovation; loss of trust in organizations; and higher transaction costs than expected.
Answer:
c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.
Explanation:
Provided information,
There is a purchase of new production line. On which the company plans to charge depreciation as per straight line method for 5 years. As per the recent amendment the company has to charge depreciation fr 7 years under straight line method.
Thus, depreciation per year will be decreased.
As depreciation is an expense which is going to decrease with increase in duration, therefore, income will increase and accordingly taxes will increase.
Also the net balance of fixed assets will be higher, as depreciation is less.
Therefore, correct statement is
c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.
Answer: $337,869.73
Explanation:
Find out the future value of $1,000 given an interest rate of 7.1%. If this amount is less than the future value of $210,000, the difference is added to the final payment to come up with the balloon payment.
The APR needs to be made periodic:
= 7.1% / 12
The $1,000 payment is an annuity so this can be calculated as:
= Annuity * ( ( 1 + rate) ^ number of periods - 1) / rate
= 1,000 * ( ( 1 + 7.1/ 12%) ²⁴⁰ - 1) / 7.1/12%
= $527,297.83
Future value of $210,000
= 210,000 * ( 1 + 7.1/ 12%) ²⁴⁰
= $865,167.56
Balloon payment will be:
= 865,167.56 - 527,297.83
= $337,869.73
That means they arnt paying you a lot or there not making more that there selling
