Answer:
Fixed overhead application rate
= <u>Budgeted fixed overhead</u>
Budgeted direct labour hours
= <u>$114,000</u>
60,000 hrs
= $1.90 per direct labour hour
Amount of overhead applied to job X387: $
Variable overhead $4.90 x 170 hours = 833
Fixed overhead $1.90 x 170 hours = 323
1,156
Explanation:
In this case, there is need to calculate the fixed overhead application rate based on direct labour hours by dividing the the budgeted fixed overhead by budgeted direct labour hours. Then, we will calculate the overhead applied to Job X387 by multiplying the fixed and variable application rate by actual direct labour hours of 170 hours.
Answer:
The higher an investment’s risk, the HIGHER THE RETURNS AN INVESTOR WILL REQUIRE.
Explanation:
By saying that investors are risk averse, it means that given a similar level of returns, an investor will choose the investment with the lowest risk. That is why investors generally prefer and are willing to pay more for less risky investments, which results in lower returns (higher price ⇒ lower returns).
So high risk investments will always have a lower price than low risk investments, since the returns demanded by investors are proportional to the risk of the investment.
Answer:
Nil
Explanation:
On receipt of the amount, the entries to be posted would be;
Debit cash account $27,000
Credit deferred revenue $27,000
Being entries to recognize cash received in advance for rental income.
As such, no rental income was earned in 2019. Amount to be included in Ral's taxable income for rent revenue is nil.
