Answer and Explanation:
Musk oil Direct Materials Budget - Year 2
Quarter First Second Third
Required production in units of finish goods72,000 102,000 162,000
Units of raw materials needed per unit of finished goods 333
Units of raw materials needed to meet production 216000 306000 486000
Add: Desired units of ending raw materials inventory 43200
Total units of raw materials needed 331203 408003 648003
Less: Units of beginning raw materials inventory43200 43200 0
Units of raw material needed to be purchased288003 364803 648003
Unit cost of raw materials2.2 2.2 2.2
Cost of raw materials to purchased 633606.6 802566.6 1425606.6
FourthYear
112,000 448000
3 3
336000 1344000
448003 1792003
0 43200
448003 1748803
2.2 2.2
985606.6 3847366.6
Answer: 10%
Explanation:
When the price of a bond is at par, it means that the coupon rate and the Yield to Maturity are the same.
The Coupon rate is the interest rate that the Issuer of the bond pays the bond holders as a percentage of Par.
The Coupon payment here is $100 and the rate is;
= 100/1,000
= 10%
<em>Coupon Rate = 10% = Yield to Maturity </em>
Answer:
1. 20 units
2. $600
Explanation:
1. 
MC = 4q
Price, P = $80
For maximizing profits,
Marginal cost = Price of the commodity
4q = 80
q = 20 units
= 200 + 800
= 1,000
2. Profit = Total revenue - Total cost
= (Price × Quantity) - TC
= (80 × 20) - $1,000
= $1,600 - $1,000
= $600
3. We know that the firm in the short run will be produce at a point where total revenue is greater than the total variable cost
Average variable cost = variable cost ÷ quantity
= 2Q
MC = 4Q
Here, MC is greater than AVC at any given point.
so in the short run firm will producing short run positive profit.
Answer:
Predetermined Overhead Rate = $11 per labor hour
Explanation:
The predetermined Overhead rate for Stanford Enterprise is calculated by dividing the estimated manufacturing overheads with estimated total direct labor hours.
Actual manufacturing overhead = $302,750
Actual direct labor hours = 27,760 hours
Estimated/ budgeted labor hours = 25,000 hours
budgeted manufacturing overheads = $275,000
Predetermined OH rate = $275,000 / 25,000 = $11 per hour
Actual OH rate = $302,750 / 27,760 hours = $10.91 per hour
Answer:
The correct answer is d. There are gains from trade.
Explanation:
In this situation a profit is presented for both companies, because the described relationship represents the main activity that each one performs, but in turn, details the need of each one for a service that generates value, since a company, As a capital company, it is a machinery whose purpose is the generation of value: the investment of economic resources, contributed by the ownership of the company, allows generating new wealth (value), in the most general case, thanks to the work of its employees. The first reason for the investment of resources is that additional generation of wealth that is expected to be achieved. Under these conditions, it seems clear that the objective of any manager of a company should be the generation of value for the shareholder.
