Answer:
FrameIt’s total manufacturing overhead costs in June is $33,350
Explanation:
Manufacturing overhead costs include all indirect <em>manufacturing cost</em> and exclude all <em>non- manufacturing costs</em>.
<u>Calculation of Manufacturing overhead costs are as follows :</u>
Oil for manufacturing equipment $50
Factory supervisor’s salary $20,000
Factory janitor’s salary $5,000
Factory depreciation expense $8,000
Glue for picture frames $300
Total manufacturing overhead costs $33,350
Answer:
The correct option is (b)
Explanation:
Accrual refers to income or expense that is accrued (service is delivered) but cash is not received in the current period. In accrual accounting, revenue is recorded at the time it is accrued irrespective of the time period it is received.
In this case, recording revenue that will be received in future is an example of accrual.
Answer:
6.75%
Explanation:
Data provided in the question:
Beta of the stock = 1.12
Expected return = 10.8% = 0.108
Return of risk free asset = 2.7% = 0.027
Now,
Since it is equally invested in two assets
Therefore,
both will have equal weight = = 0.5
Thus,
Expected return on a portfolio = ∑(Weight × Return)
= [ 0.5 × 10.8% ] + [ 0.5 × 2.7% ]
= 5.4% + 1.35%
= 6.75%
Answer:
The answer is 30%
Explanation:
Solution
Given that:
Project A
Project A costs = $350
Cash flows =$250 and $250 (next 2 years)
Project B
Project B costs =$300
Cash flow = $300 and $100
Now what is the crossover rate for these projects.
Thus
Year Project A Project B A-B B-A
0 -350 -300 -50 50
1 250 300 -50 50
2 250 100 150 -150
IRR 27% 26% 30% 30%
So,
CF = CF1/(1+r)^1 + CF2/(1+r)^2
$-50 = $-50/(1+r)^1 + $150/(1+r)^2
r = 30%
CF = CF1/(1+r)^1 + CF2/(1+r)^2
$50 = $50/(1+r)^1 + $-150/(1+r)^2
r = 30%
Hence, the cross over rate for these project is 30%
Note:
IRR =Internal rate of return
CF =Cash flow
r = rate