Answer:
Under allocation= 1,000 underallocated
Explanation:
Giving the following information:
Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-hour, based on an estimate of 20,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were: Actual manufacturing overhead cost incurred $ 38,000 Actual direct labor-hours worked 18,500
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2*18,500= $37,000
Real overhead= 38,000
Over/under allocation= real MOH - allocated MOH
Under allocation= 38,000 - 37,000= 1,000 underallocated
Answer:
Advertising a similar property can and does create interest in their property
Explanation:
In real estate agents need to effectively market properties in order to sell to consumers.
One way of doing this is by creating awareness in a given market about a particular property type.
When interest in a type of property is created it generates interest that will lead to more sales.
In the given scenario when Tom meets with his sellers to explain his advertising plan, he should make sure the owners understand that to capture a market they need to advertise even products that are similar.
As interest grows it will create a demand for that type of property
Answer:
the holding period return is 3.77%
Explanation:
The computation of the holding period return is shown below:
Holding period return is
= (Income + (Selling price - Purchase price)) ÷ Purchase price
= ($3 + ($52 - $53)) ÷ 53
= 3.77%
Hence, the holding period return is 3.77%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
Net profit is more important to consider because it accounts for all the costs associated with making and selling the product and it includes the operating expenses that are excluded from gross profit. Gross profit is the profit made after deducting costs associated with making and selling its products, or the costs associated with providing its services.
Complete question:
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded. What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?
a. 150,000
b. 250,000
c. 0
d. 120,000
e. 170,000
Answer:
150,000
of goodwill should be attributed to the non-controlling interest at the date of acquisition
Solution:
A non-controlling interest (NCI) is a role in which a owner holds less than 50% of remaining and has little control over decisions. A minority ownership is often known as the minority interest. Non-controlling interests are calculated by their net worth and are not eligible for future right to vote.
Now , Calculate the amount
Cost(PP) - 1,600/0.8 = 2,000
FV - 1,850
GW = 1,850 - 2,000
= 150,000
