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vova2212 [387]
3 years ago
5

A discount on bonds payable: a. Occurs when a company issues bonds with a contract rate less than the market rate. b. Occurs whe

n a company issues bonds with a contract rate more than the market rate. c. Increases the Bond Payable account. d. Decreases the total bond interest expense.
Business
1 answer:
GaryK [48]3 years ago
7 0

Answer:

a. Occurs when a company issues bonds with a contract rate less than the market rate

Explanation:

Premium on bonds payable - occurs when a company issues bonds for an amount greater than their face or maturity amount. This causes the bonds to have a contract interest rate that is higher than the market interest rate for similar bonds.

Discount on bonds payable - occurs when a company issues bonds for an amount lesser than their face or maturity amount. This causes the bonds to have a contract interest rate that is lesser than the market interest rate for similar bonds.

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The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had
Serhud [2]

Questions

The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had previously developed the following standards for the manufacture of its product:

Each unit should have 3/4 of a pound of direct materials purchased at $12 per pound.

Each unit should be produced in 48 minutes at a direct labor cost of $16 per hour. The company had the following detailed retails:

Actual production was 20,000 units using 14,600 pounds of direct materials at a total cost of $168,000 and required 11,000 direct labor hours at a total cost of $190,000.

What is the company cost variance related to direct labour

Answer:

Direct labour cost total Variance  = $66,000 favorable

Explanation:

The direct labor cost total variance is the difference between standard labour cost of the actual production achieved and the actual labour cost.

The standard labour cost of labour per unit of output is not given. So, we work it out first

Standard labour cost per unit= 48/60× $16= 12.8 per unit

                                                                                                   $

20,000 units should have cost (20,000× 12.8)                256,000

but did cost                                                                      <u>   190,000</u>

Direct labour cost total Variance                                     <u>   66,000 </u>favorable

Direct labour cost total Variance  = $66,000 favorable

7 0
3 years ago
Ferkil Corporation manufacturers a single product that has a selling price of $100 per unit. Fixed expenses total $225,000 per y
exis [7]

Answer:

d)= 6,500

Explanation:

The break-even point (BEP) is the units of  the product that Ferkil Corporation must sell for it to make no profit or loss.

This units can be determined as follows:

BEP = Total fixed cost + target profit/ selling price - variable cost

So we substitute the variables given into the formula

5000 = 225,000 /(100-X)

5000×(100-X) =225,000

500,000 -5000x = 225,000

(500,000 -225,000)/5000 = x

X= 55

variable cost per unit = $55

Units to sell to achieve a profit 67,500

= (225,000  + 67,500)/(100-55)

= 6,500

6 0
3 years ago
What are the 6 benefits of a market economy for producers?
muminat
You'll save money and make more money .you'll create and propagate your own brand.you'll familiarize yourself with industry knowledge.you 'll build a network of suppliers.you'll be able to diversify.you'll save money and make even more money...
5 0
3 years ago
A recent survey was conducted to compare the cost of solar energy to the cost of gas or electric energy. Results of the survey r
RoseWind [281]

Answer:

option d) approximately 84%

Explanation:

Data provided in the question:

Mean, m = $92

Standard deviation, s = $13

Now,

we have to calculate percentage of homes will have a monthly utility bill of more than $79 i.e P(X > 79)

also,

P( X > 79) = 1 - P( X < 79)

Z-score for (X = 79 ) = \frac{X-m}{s}

Z = \frac{79-92}{13}

or

Z = -1

From the standard Z value vs P table, we have

P( Z < -1 ) = 0.1587

Thus,

P( X < 79) = P( Z < -1 ) = 0.1587

therefore,

P(X > 79) = 1 - 0.1587

or

P(X > 79) = 0.8413

or

= 0.8413 × 100%

= 84.13%

Hence,

option d) approximately 84%

7 0
3 years ago
Which of the following is responsible for conducting an independent
Airida [17]

Answer:

-Auditor

Explanation:

The auditor is responsible for conducting an independent examination of the financial statements and records of the company. he or she checks whether the company follows the accounting principles, norms, etc as prescribed and according to that he or she give the qualified or unqualified report

Therefore as per the given situation, the option a is correct

3 0
2 years ago
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