Answer:
a. not able to be determined from the provided information.
Explanation:
For determining the over applied or under applied, first, we have to compute the predetermined rate based on the direct material cost which is
= $700,000 ÷ $1,000,000
= $0.70
Now the applied overhead is
= $0.70 × $1,200,000
= $840,000
And, the actual overhead amount is not given by which we can find out the underapplied or overapplied overhead amount
So, in this case, the correct option is a.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Sales:
January= $18,500
February= $16,000
March= $11,000.
All sales are made on open credit with 70% collected in the month of sales and 30% collected in the following month.
Cash collection= sales for the month*0.7 + cash from the month before
February:
From february= 16,000*0.7= $11,200
From January= 18,500*0.3= $5,550
Total= $16,750
March:
From March= 11,000*0.7= $7,700
From February= 16,000*0.3= $4,800
Total= $12,500
Answer:
6.26%
Explanation:
The yield to call is the rate of return earned by bondholders over the 5-year period before the bonds were called.
It can be determined using excel rate function as well as financial calculator as shown thus:
=rate(nper,pmt,-pv,fv)
nper=the period between bond issuance and the call in years=5
pmt=annual coupon=face value*coupon rate=$1000*8%=80
pv=the initial purchase price=-1132
fv=the price at which the bonds were called after 5 years=1080
=rate(5,80,-1132,1080)=6.26%
Financial calculator:
N=5
PMT=80
PV=-1132
FV=1080
CPT I/Y=6.26%
