Answer:
Deposited amount will decrease by 1% and $2,000
Explanation:
Inflation rate will effect the value of money due to decrease in purchasing power of the currency holder.
We will use following formula to calculate the impact
Nominal rate = Real interest rate + Inflation rate
5% = Real interest rate + 6%
Real interest rate = 5% - 6% = -1%
The deposited amount will be decreased by 1%.
Deposit value = $200,000 x ( 1 - 1% ) = $198,000
Decrease in value = $200,000 - $198,000 = $2,000
Answer:
$1,200 favorable
Explanation:
Given,
Standard unit price for direct materials, SP = $8 per gallon
Actual direct materials price, AP = $22,800
Actual number of direct materials, AQ = 3,000 gallons
Actual unit price for direct materials = Actual direct materials price ÷ Actual number of direct materials
Actual unit price for direct materials = $22,800 ÷ 3,000 gallons
Actual unit price for direct materials = $7.6 per gallon
We know,
Direct Material Price Variance = (SP − AP ) × AQ
Direct Material Price Variance = $(8 - 7.6) × 3,000 gallons
Direct Material Price Variance = $1,200 favorable
Costs that cannot be efficiently and promptly attributed to cost-objects are considered indirect costs.
<h3>What exactly are indirect costs?</h3>
Indirect costs are business expenses that are crucial to the running of the organization as a whole and the accomplishment of its objectives even though they aren't directly connected to a given grant, contract, project function, or activity.
Indirect costs include expenses that are typically classified as overhead, like rent and utilities, as well as general and administrative costs, like officer salaries, accounting department costs, and personnel department costs.
Direct expenses are those that can be connected to a specific product, whereas indirect costs are those involved in maintaining and operating a business.
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