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2 years ago

The ________ is the discount rate that equates the present value of the cash inflows with the initial investment.

1 answer:

3 0

The D. internal rate of return (IRR) <span>is the discount rate that equates the present value of the cash inflows with the initial investment.
This term refers to the profitability of a potential investment, meaning that it will show you how much an investment costs, and how much money you can possibly earn by predicting its future price and cost. It can also show you whether it is sensible to invest in something. </span>

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Kimble Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under-

likoan [24]

Answer:

overhead rate $4 per machien hour

applied overhead 1,560,000

The overhead was underapplied for 15,000

entry to adjust against COGS

Cost of Goods of sold 15,000 debit

Factory overhead 15,000 credit

Explanation:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

we divide the expected overhead over the total amount of budgeted machine hours to determinate the overhead rate:

1,600,000 / 400,000 = $4 per machine hours

Actual machine hours 390,0000

applied overhead:

actual cost driver x rate per driver

390,000 x $4 = 1,560.000‬ applied overhead

Actual overhead 1,575,000

As aplies is lower, we should adjust for 15,000 difference

5 0

3 years ago

What happens to earnings in a cooperative?

Lunna [17]

The earnings in a cooperative are shared with member owners. The cooperative societies distribute the profits to its members based on the business transacted with the Cooperative society.

5 0

3 years ago

Read 2 more answers

LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.5 hours of direct labor at the r

swat32

Answer:

The correct option is D

Labour budget = $1,974,175

Explanation:

The labour budget is the product of the standard labour cost per unit and the budgeted production in units

Labour budget = standard labour cost× production budget in unit

The production budget can bed determined by adjusting the sales budget for closing and opening inventories.

Production budget = Sales budget +closing inventory - opening inventory

Production budget = 39,000 + 100 -200 = 38,900 units

Labour budget = $14.50× 3.5× 38,900 = $1,974,175

Labour budget = $1,974,175

6 0

2 years ago

Spouse: “I know that you get angry a lot. I’m sure that pretty soon you will hit me or something. And what are we gonna do when

Arlecino [84]

That is rude and you might hurt their feelings maybe you will be the one running them out of the house

7 0

2 years ago

Read 2 more answers

The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based

son4ous [18]

Answer:

$81.96 per unit

Explanation:

For computing the selling price using the absorption costing approach we need to do the following calculations which are shown below:

Unit Product Cost = Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead

= $26.50 + 15.50 + 3.70 + [$156,71,400 ÷ 97,000 Units]

= $26.50 + 15.50 + $3.70 + $16.20

= $61.90

Now

Selling and administrative expenses is

=$1,540,000 + [97,000 Units × $3.60]

= $1,540,000 + 349,200

= $1,889,200

And,

Markup on absorption cost

= [(Investment × Return on Investment) + Selling and administrative expenses] ÷ (Number of units × unit product cost)

= [($380,000 × 15%) + 1,889,200] / [97,000 × $61.90]

= $19,46,200 ÷ 60,04,300

= 0.3241 or 32.41%

So,

The selling price based on the absorption costing approach

= Unit product cost × (1 + Markup on absorption cost)

= $61.90 per unit × (1 + 0.3241)

= $81.96 per unit

5 0

3 years ago

The​ ________ is the discount rate that equates the present value of the cash inflows with the initial investment.

The ________ is the discount rate that equates the present value of the cash inflows with the initial investment.