A firm's opportunity cost of using resources provided by the firm's owners are called

During July, Whitman paid $189,600 to employees for 8,900 hours worked. 4,760 units were produced during July. What is the direc

Marrrta [24]

Answer and Explanation:

The computation of the direct labor efficiency variance is shown below;

= Standard Rate × (Standard Hours - Actual Hours)

= $22.50 × (4,760 Units × 2 hours per unit - 8,900)

= $13,950 Favourable

Hence, the direct labor efficiency variance is $13,950 favorable

We simply applied the above formula so that the correct amount could come

8 0

3 years ago

The first-year NOI for an office building is $150,000. A lender is willing to provide financing up to a 1.5 debt-coverage ratio.

Hoochie [10]

Answer:

the maximum loan size is $1,278,335.62

Explanation:

The computation of the maximum loan size is as follows:

= (NOI first year ÷ debt coverage rate) × 1 ÷ (rate of interest) × (1 - 1 ÷ (1 + rate of interest)^number of years)

= ($150,000 ÷ 1.5) × 1 ÷ (6%) × (1 - 1 ÷ (1 + 6%)^(25))

= $1,278,335.62

hence, the maximum loan size is $1,278,335.62

We simply applied the above formula

5 0

3 years ago

Bradford Services Inc. (BSI) is considering a project that has a cost of $10 million and an expected life of 3 years. There is a

balandron [24]

Answer:

Expected Net Cash Flow = $3.8 million

Net Present Value (NPV) = $1.0492 million

Explanation:

Given Cash outflow = $10 million

Provided cash inflows as follows:

Particulars Good condition Moderate condition Bad Condition

Probability 30% 40% 30%

Cash flow $9 million $4 million $1 million

Average expected cash flow each year = ($9 million X 30 %) + ($4 million X 40%) + ($1 million X 30%) = $2.7 million + $1.6 million + $0.3 million = $4.6 million

Three year expected cash flow = ($4.6 million each year X 3) - $10 million = $13.8 million - $10 million = $3.8 million

While calculating NPV we will use Present Value Annuity Factor (PVAF) @12% for 3 years = $\frac{1}{(1 + 0.12){^1}} + \frac{1}{(1 + 0.12){^2}} + \frac{1}{(1 + 0.12){^3}} = 2.402$

NPV = PV of inflows - PV of Outflows = $4.6 million X 2.402 - $10 million = $11.0492 million - $10 million = $1.0492 million

Expected Net Cash Flow = $3.8 million

Net Present Value (NPV) = $1.0492 million

3 0

4 years ago

Tito Company reports a $20,000 increase in inventory and a $5,000 decrease in accounts payable during the year. Cost of Goods So

Neporo4naja [7]

Answer: Cash payments made to suppliers were $307,000

Explanation:

In order to find cash paid to suppliers we start from the cost of goods sold, add any increase in inventory to it, subtract any decrease in inventory, add any decrease in accounts payable, subtract any increase in accounts payable.

So 282,000+20,000+5,000= 307,000

7 0

3 years ago

A man has $245,000 invested in three properties. One earns 12%, one 10% and one 8%. His annual income from the properties is $23

astraxan [27]

Answer:

for 8% investment = $110000

for 12% investment = $55000

for 10% investment = $80000

annual income for each property is

x amount for 8% investment = $8800

y amount for 12% investment = $6600

z amount for 10% investment = $8000

Explanation:

Given data

investment = $245000

rate 1 = 12%

rate 2 = 10%

rate 3 = 8%

annual income = $23400

rate = 8% twice that invested at 12%

to find out

invested in each property and the annual income from each property

solution

let us consider x amount for 8% investment

and consider y amount for 12% investment

and consider z amount for 10% investment

from question we say, 8% is twice that invested at 12%

x = 2y ........1

and

x + y + z = 245000 .............2

put 1 in equation 2

2y + y + z = 245000

z = 245000 - 3y ...................3

and we can say that

0.08x + 0.12y + 0.10z = 23400 ...........................4

put equation 1 and 3 in 4

0.08(2y) + 0.12y + 0.10( 245000 - 3y ) = 23400

0.16y + 0.12y - 0.3y = -1100

0.02y = 1100

y = $55000

so x = 2(y) = 2(5500) = $110000

and z = 245000 - 3(55000) = $80000

so annual income for each property is

x amount for 8% investment = 0.08 × 110000 = $8800

y amount for 12% investment = 0.12 × 55000 = $6600

z amount for 10% investment = 0.10 × 80000 = $8000

4 0

3 years ago