<span>The reserve requirement, which is also referred to as the cash reserve ratio, is 25 percent. This is calculated by subtracting the $6,000 loaned out from the bank's $8,000 in deposits, yielding a reserve of $2,000. The reserve requirement is calculated by dividing $2,000 by $8,000.</span>
Answer:
Effective annual interest rate=0.52%
Explanation:
Step 1: Express the formula for calculating interest
The formula for calculating interest can be expressed as;
I=PRT
where;
P=principal amount borrowed
R=annual interest rate as a percentage
T=number of years
Step 2: Determine the value of the variables P, R and T
In our case;
I=$10
P=(125-10)=$115
R=unknown=r
T=2 months=2/12=1/6 years
replacing in the expression;
10=115×r×(2/12)
10=(230/12)r
r=10×12/230=0.5217
0.5217 rounded off to the nearest 2 decimal places is:
r=0.52%
Effective annual interest rate=0.52%
Answer:
the costs to be assigned to the units transferred out and the units in ending work in process is $562,800 and $49,760 respectively
Explanation:
The computation is shown below:
Cost assign to units transferred out is
= 40,200 units × $4 + 40,200 units × $10
= $160,800 + $402,000
= $562,800
And, the Cost assign to work in progress is
= 6,220 units × $4 + (6,220 units × 0.40) × $10
= $24,880 + $24,880
= $49,760
Hence, the costs to be assigned to the units transferred out and the units in ending work in process is $562,800 and $49,760 respectively
Answer:
Direct labor efficiency variance= 0
Explanation:
Giving the following information:
Direct labor 0.2 hours $ 35 per hour. During June, Heavy Products produced and sold 16,000 containers using 3,200 direct manufacturing labor-hours at an average wage of $ 51.00 per hour.
Direct labor efficiency variance= (Standard Quantity - Aactual Q)*standard rate
Direct labor efficiency variance= (0.2*16,000 - 3,200)*35= 0
Answer:
The statement is inaccurate.
Explanation:
Comment on the validity of this statement. LO 3 (p. 19-9).
The statement is inaccurate. When a deficit exists in current E & P and a positive balance exists in accumulated E & P, the accounts are netted at the date of distribution. If a positive balance results, the distribution is a divide to the extent of the balance. Any loss in current E & P is deemed to accrue ratably throughout the year unless the parties can show otherwise.
