If the nominal annual interest rate is 12% compounded quarterly, what is the effective annual interest rate?
1 answer:
You might be interested in
Answer:
Please see attached solution
Explanation:
a. Total manufacturing overhead costs allocated $356,400
b. Variable manufacturing overhead spending variance $40,500U
c. Fixed manufacturing overhead spending variance $17,600U
d. Variable manufacturing overhead efficiency variance $19,500F
e. Production volume variance $39,200F
Please find attached detailed solution to the above questions
Answer:
The total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month is <u>C(x) = 0.004x^2 + 90x + 8,500</u>.
Explanation:
Given,
C '(x) = 0.008x + 90 ................................... (1)
To obtain the the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month, we obtain the integral of equation (1) as follows:
C(x) = (0.008 / 2) x^2 + 90x + F
C(x) = 0.004x^2 + 90x + F .......................... (2)
Where F is the constant.
Since total cost is the addition of the total cost and total variable cost, the F in equation (2) represents the total fixed cost per month.
Since the fixed costs incurred by Carlota are $8500/month, this implies that F = 8,500.
Substituting F = 8,500 into equation (2), we have:
C(x) = 0.004x^2 + 90x + 8,500 <-------------- Total cost per month
Therefore, the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month is <u>C(x) = 0.004x^2 + 90x + 8,500</u>.