1.) student loans due to the fact that they are more secure than credit card debt and maybe have long periods before they have to be paid off.
2.) chad has a maximum amount of money he can use before it has to be paid back. Unfortunately chads maximum was so low he couldn’t even buy popcorn, or he already maxed out his card.
Answer:
1.Consumption ratios for the four drivers in relation to both the cards will be consumption for a particular card/total consumption for both the cards which will be as follows :-
Scented cards Regular cards Inspection hours 100/190=0.53 90/190=0.47 Set up hours 90/120=0.75 30/120=0.25 Machine hours 170/800=0.21 630/800=0.79 Number of moves 210/265=0.79 55/265=0.21
2 .There has been diversification of different activities or drivers among both the products, thus increasing significance of activity Based distribution of overheads. Since if we use blanket rate for allocation of overhead on the basis of machine hours, it will certainly leads to a distorted view as machine hours are significantly higher in case of regular cards whereas consumption of other resources is comparatively lower for it. This, in such a situation its significance certainly gets increased.
3. Activity rates which could be used to assign cost to each product will be calculated as Total cost for the driver/number of units of that driver. It is calculated in the table as follows :-
(A) ( B ) number of units (C=A=B) cost per unit Driver/activity total (hours) of (hour) of cost driver/activity driver/activity
Total cost for the driver/number of units of that driver. It is calculated in the table as follows :-
Driver/activity (A) total cost ( B ) number of units (hours) of driver/activity (C=A=B) cost per unit (hour) of driver/activity Inspecting products 4930 190 (100+90) 25.95 Setting up equipment 4700 120 (90+30) 39.17 Machining 6500 800 (170+630) 8.13 Moving material 1370 265 (210+55) 5.17
4 . We have total inspection cost as 4930 And activity rate for inspecting product is $20per inspecting hour This total inspecting hours will be = 4930/20=246.5 hours Thus total inspection hours would be 246.5.
Answer: 12.47%
Explanation:
First convert the APR to the relevant periodic rate.
The compounding is done daily so the periodic rate is:
= 11.75%/365
Effective Annual rate is calculated by the formula:
= ( 1 + periodic rate) ^ compounding period per year - 1
= ( 1 + 11.75%/365)³⁶⁵ - 1
= 12.47%
Answer:
The answer is: Knottworth Gedding should report $1,725,000 as interest expense in its 12/31/2021 income statement
Explanation:
The formula for calculating the amount of interest expense is:
interest expense = discount rate x (present value - yearly payment) x time
- Discount rate = 10%
- Present value = $40,500,000
- Yearly payment = $6,000,000
- Time = 6 months / 12 months = 0.5
interest expense = 10% x ($40,500,000 - $6,000,000) x 0.5 = $1,725,000
