Answer:
underapplied by 2,250
Explanation:
we will distribute the expected cost of overhead ovwer the cost driver. In this case, machine hours:
255,000 / 100,000 = 2.55
Then we multiply thew rate by the amount of actual hours:
105,000 x 2.55 = 267,760
We compare with the appleid overhead:
267,760 - 270,000 = -2,250
As the actual overehad was higher than applied overhead the overhead was underapplied
Answer: See attachment
Explanation:
a. Based on the information in the attachment, the indirect costs that's allocated to the units will be:
Government = 450,000
Corporate = 750,000
The expected revenue that can be generated from the government unit will be:
= 495,000 × (100% + 15%)
= 495,000 × 1.15
= $569250
b. Based on the information given, the indirect costs that's allocated to the units will be:
Government unit = 360,000
Corporate unit = 840,000
The revenue from the government will be:
= 405000 × (100% + 15%)
= 405000 × 115%
= 405000 × 1.15
= $465750
c. If the firm chooses total hours worked as the cost driver, the indirect costs be allocated to the two units as:
Government = 400,000
Corporate unit = 800,000
Revenue from government will be:
= 445000 × 115%
= 445000 × 1.15
= $511750
Check attachment for further explanation.
Answer:
Initial outlay = $60,000
Annual net income before tax = $7,200 per annum
Depreciation = <u>Cost - Residual value</u>
Estimated useful life
= <u>$60,000 - 0</u>
12 years
= $5,000 per annum
Annual net cashflow before tax
= Annual net income before tax + Depreciation
= $7,200 + $5,000
= $12,200
Explanation:
In this case, the annual net income before tax has been given. The annual net income before tax has excluded depreciation, which does not involve movement of cash. Therefore, we need to add back depreciation in order to obtain the expected before tax cashflow.
Answer: Buying $200 stock in AT&T is an example of investment. As in this case the persons income exceeds his consumption and he buys new capital.
Borrowing $1000 from a bank to buy a car to use in business is also an investment as in this case buying a car is like investing in a cash flow producing asset, as the car will be an asset which will help earn money from the pizza business.
Explanation:
Roommate depositing $100 is an example of saving and not investing.
Taking out a mortgage and buying a house is an example of consumption and not investment.
<span>The speaker is using the fallacy of building on an unproven assumption. The speaker has made the assumption that the Japanese make the best stereo sound systems in the world. This is merely his/her opinion, and is not a proven fact. Thus, when the speaker bases another argument on that assumption, he has used a fallacy in reasoning.</span>
