Answer: The predetermined overhead rate increased because the total direct labor-hours dropped
Explanation:
The predetermined overhead rate refers to an allocation rate which is used in applying the estimated manufacturing overhead cost to the cost objects for a particular reporting period.
When there's reduction in the direct labor-hour requirement from 5 hours to 2 hours, the predetermined overhead rate increased because the total direct labor-hours dropped
The predetermined overhead rate is calculated as the total overhead cost divided by the machine hour. Therefore, if there's reduction in the direct labor hour rate, then there will be a rise in the predetermined overhead rate.
Answer:
$458,000
Explanation:
April
$460,000 x .70 = $322,000
March
$520,000 x .2 = $104,000
February
$400,000 x .08 = $32,000
Addition of APRIL+MARCH+FEBRUARY
$322,000 + $104,000 + $32,000
= $458,000
Therefore the anticipated cash inflow for the month of April is $458,000
Answer:
$88.24
Explanation:
The computation of the intrinsic value of a share of Xyrong stock is shown below;
k = risk free rate of retunr+ beta[expected market rate of return - risk free rate of return]
= 10.5% + 1.5(17% - 10.5%)
= 20.25%
Now
growth rate = b × ROE
= .5 × 24%
= 12%
Now the intrinsic value of the stock is
= (($13 × 50%) × (1 + 0.12)) ÷ (0.2025 - 0.12)
= $88.24
Answer:
3. cannibalization
Explanation:
This term refers to the situation were sales or the market share of a product are reduced because another product is introduced by the same company.
Answer:
Liquidity
Explanation:
Liquidity is the degree to which an asset can be converted to cash. Assets that can easily be converted are described as liquid assets and include stocks and bonds.
Illiquid assets are not easy to sell. These assets may take a long time to sell or may be sold at a much cheaper price than the purchase price in order to make a quick sale. These include real estate, motor vehicles etc.
