Answer:
The statement is true
Explanation:
Short term cash budget focuses on short duration mostly within one to three months while long term cash budget focuses on cash inflow and outflow for a longer duration which is one year.
Short term cash budget ensures liquidity of an organization whether it has funds to meet immediate requirements so it basically helps in controlling cash inflows and outflows.
Long term cash budget helps in decision making and planning future investments as it is reviewed periodically.
Answer:
C. The actual variable overhead costs were lower than the budgeted costs.
Explanation:
Variable Overhead Cost variance =Budgeted cost - Actual Cost
where this value is positive, this is favorable, where this is negative it is unfavorable.
Actual cost = Actual hours X Actual rate per hour
Budgeted Cost = Budgeted hours for actual level of production X Budgeted rate per hour
Even if actual hours are lower than budgeted it will not lead to favorable overhead as actual rate per hour might be less.
Total variable overhead will only be favorable when net actual variable overhead cost is less than budgeted variable overhead costs.
C. The actual variable overhead costs were lower than the budgeted costs.
Answer:
(1) 22%
(2) 56%
Explanation:
Given that,
Direct labor = $536,000;
Direct materials = $211,000;
Factory overhead = $119,000
(1) Predetermined overhead rate as a percent of direct labor is simply calculated by dividing the factory overhead by its direct labor cost.
Predetermined overhead rate as a percent of direct labor:
= (Factory overhead ÷ Direct labor) × 100
= ($119,000 ÷ $536,000) × 100
= 0.22 × 100
= 22%
(2) Predetermined overhead rate as a percent of direct materials is simply calculated by dividing the factory overhead by its direct material cost.
Predetermined overhead rate as a percent of direct material:
= (Factory overhead ÷ Direct material) × 100
= ($119,000 ÷ $211,000) × 100
= 0.56 × 100
= 56%
Answer:
4.04%
Explanation:
Using the Interest rate parity formula according to this theory the forward exchange rate of should be equal to the spot rate multiplied by the interest rate of the domestic country divided by the interest rate of the foreign country so from this formula
F=S*(1+i)/(1+r)
we derive
(1+r)=F/S*(1+i)
1+r =0.6421/0.6369*(1.032)
1+r =1.0404
r = 0.0404/4.04%
If it was me, I would have to go with B