Annual rate of return is the amount you gain/lose on average each year. it is calculate as the following:
Rate of Return = (ending value - amount invested) / the number of years
OR
(1,100,000 - 1,680,000) / 3 = annual rate of return
Answer:
Pension expense:
= Service cost + Interest on PBO - actual return
= 40,000 + (10% * 160,000) - 15,000
= $41,000
PBO at end of year:
= Beginning PBO+ Service cost + Interest on PBO - Benefits paid
= 160,000 + 40,000 + (10% * 160,000) - 20,000
= $196,000
Pension Assets at end of year:
= Beginning PBO + Return + Contribution - Benefits
= 160,000 + 15,000 + 30,000 - 20,000
= $185,000
Answer:
2,256 hours
Explanation:
The computation of the total standard direct labor hours allowed (SQ) for units produced is shown below;
As we know that
Labor rate variance = (Actual hours × Actual rate) - (Actual hours × Standard rate)
($5,000) = $35,000 - (2,500 × Standard rate)
2,500 × Standard rate = $40,000
Standard rate = $16
Now
Labor efficiency variance = (Actual hours × Standard rate) - (Standard hours × Standard rate)
$3,900 = (2,500 × $16) - (Standard hours × $16)
Standard hours × $16 = 36,100
Standard hours = 2,256.25
= 2,256 hours
I think the annuity will be worth about 41,146 in 18 years, I hope this helped :)
