Answer:
A. $60,000 U
Explanation:
Given that
Budgeted fixed cost = 540,000
Actual fixed cost = 600,000
Recall that,
fixed overhead flexible-budget variance = Actual amount - standard (budgeted) amount
Thus,
Variance = 600,000 - 540,000
= $60,000 Unfavorable
It is unfavorable because the actual cost is higher than the budgeted cost. When actual cost is less than budgeted cost, it is favorable.
Answer:
Cost difference= $64,808 cost decrease
Explanation:
Giving the following information:
Purchasing price= $13
Make in-house:
Variable cost per unit= $11
Fixed cost per unit= $9
Production in units= 32,404
<u>To determine whether it is more convenient to make the part in-house or buy it, we need to take into account only the variable cost per unit. We leave out of the decision the fixed costs because they remain constant in both options.</u>
Buy= 32,404*13= $421,252
Make= 32,404*11= $356,444
Cost difference= $64,808 decrease
Answer:
a. 87.5%
b. Stock A: 21%; Stock B: 28%; Stock C: 38.5%; T-bill: 12.5%
c. Standard deviation of the client's portfolio: 26.25%
Explanation:
a. y is calculated as:
Risky portfolio return * y + T-bill return * (1 - y) = Expected return of the portfolio <=> 0.14y + 0.06 ( 1-y) = 0.13 <=> y = 87.5%
b. Client investment in each stock and in T-bills:
Client investment in each stock = 0.875 * percentage of each stock in a risky portfolio ( because the risky portfolio is accounted for 87.5% of the whole investment)
=> Stock A = 24% x 0.875 = 21% ; Stock B = 32% * 0.875 = 28% ; Stock C = 44 * 0.875 = 38.5%
Client investment in T-bill = 1- y = 1 - 0.875 = 12.5%
c. Standard deviation is calculated as: Standard deviation of risky portfolio * y = 30% * 87.5% = 26.25% (because standard deviation of return in T-bill is 0)
Answer:
C) Classification of products
Explanation:
Advertising is not a means of classifying products.
Advertising is a commercial process of marketing goods and services to a target group of people.
- Advertising is a means of making a product known the the general market population.
- It helps to increase the market share of a particular product among competitors.
- When an advert is done rightly, it can bring more revenue to the company.
- Also, it reinforces brand recognition.
