Answer:
Predetermined manufacturing overhead rate= $53,75 per machine hour
Explanation:
Giving the following information:
Order size:
Estimated activity cost= $585,866
Estimated machine hours= 10,900
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 585,866/10,900
Predetermined manufacturing overhead rate= $53,75 per machine hour
Answer:
Degree of operating leverage
= <u>Sales -Variable cost </u>
Sales - Variable cost - Fixed cost
= <u>Contribution</u>
Pre-tax net income
= $48,000/$12000
= 4
The correct answer is A
Explanation:
Degree of operating leverage is the ratio of contribution to pre-tax net income. Contribution = $48,000 and pre-tax net income = $12,000.
The division pf contribution by pre-tax net income gives the degree of operating leverage.
The correct answer is the firm's component cost of debt for purposes of calculating the wacc is 7.32%.
Answer:
$16,000
Explanation:
Given that,
Cost of investment in equity securities on December 31, 2017 = $510,000 and Fair value = $488,000
Fair value of the securities on December 31, 2018 = $504,000
Unrealized gain:
= Fair value of the securities on December 31, 2018 - Fair value of investment at December 31, 2017
= $504,000 - $488,000
= $16,000
Therefore, the Oriole should report unrealized gain of $16,000 on its 2018 income statement as a result of the increase in fair value of the investments in 2018.
Answer:
E) 1, 2, and 3
Explanation:
A partnership is a very flexible business which is very easy to set up but has some disadvantages also and they include:
- partners have unlimited liability.- if losses are expected to continue, then the partners will probably decide to liquidate the partnership.
- risks of disagreements between the partners.- if the partners are incompatible and cannot agree upon the decisions that need to be made, the partnership will probably be liquidated
- if the partners decide to leave because they retire then the partnership will probably have to be liquidated unless a new partner replaces the one that leaves or the other partners buy his/her share of the partnership.