Answer:
$350 unfavorable
Explanation:
The computation of the overall fixed manufacturing overhead budget variance is shown below:
The overall fixed manufacturing overhead budget variance for the month = Actual fixed manufacturing overhead cost - The budgeted fixed manufacturing overhead cost
= $17,450 - $17,100
= $350 unfavorable
Since as the actual fixed manufacturing overhead cost exceeds than the budgeted fixed manufacturing overhead cost so this leads to unfavorable variance
Answer:
B. A firm goes heavily into debt in order to obtain funds to purchase the shares of the public.
Explanation:
A leverage buyout refers to when any company purchases any other company by using entirely debt and secure that debt with the assets of the same company they are purchasing.
Hope this helps,
Thank You.
Answer:
$506,000
Explanation:
The gross profit of a company is the balance left after the deduction of costs associated with producing or selling of the company's goods or cost associated with providing services from the net revenue
The gross profit is simply calculated as
= Net revenue - Cost of goods sold
= $870,000 - $364,000
= $506,000
Therefore, Callie's gross profit is $506,000
Answer:
PLAN A
Year Cashflow [email protected] PV
$'m $
0 (12.4) 1 (12.4)
1 14.88 0.8905 13.25
NPV 0.85
PLAN B
Year Cashflow [email protected] PV
$'m $'m
0 (12.4) 1 (12.4)
1-20 2.2034 7.3309 16.15
NPV 3.75
Project B should be accepted
Explanation:
In this case, we need to discount the cash inflow of plan A at 12.3% for 1 year and then deduct the initial outlay from the present value of cash inflow. The discount factor could be derived from the present value table.
For plan B, we will discount the cash inflow at 12.3% for 20 years. In this case, we will use the annuity factor for 20 years. Thereafter, we will multiply the cashflow by the annuity factor for 20 years to obtain the present value. The initial outlay will be deducted from the present value so as to obtain the net present value(NPV).
The annuity factor can be obtained from the present value of annuity table.
The project with the higher NPV will be accepted.
Answer:
The correct option is A,both the selling and buying units have complete information about costs.
Explanation:
A negotiated transfer price is a price agreed between the selling and buying divisions having considered factors such the external purchase price,the opportunity costs of selling internally and externally ,whether or not there is surplus capacity and may more.
Negotiated transfer price is fairer to both divisions as opposed to a transfer price imposed by management which could result in low morale in the buying or selling division depending on whether the price was set too high or too low.
