Answer and Explanation:
1. The computation of the predetermined overhead rate is shown below:
= Overhead applied ÷ direct material cost
= $846,000 ÷ $1,800,000
= 47%
2. The direct labor and overhead cost assigned to the job is shown below:
Total cost $89,000
Less: direct material cost $32,000
Less: overhead cost $15,040 ($32,000 × 0.47)
Direct labor cost $41,960
<span>"a 3/1 ARM" means starting at a fixed interest rate for the first 3 years and the interest rate will adjust every year after the first three years up to the part where it mentions a "3/9 cap". This on the other hand tells us that the increase will be 3% each time there is an interest rate increase and the max increase is 9%. Hence the answer is 9%</span>
Answer:
2.11%
YTM 0.089142162
YTC 0.068070103
Difference: 0.021072059 = 0.0211 = 2.11%
Explanation:
To calculate each rate we must solve for a rate at which the future coupon payment and maturity (or call value) equals the market price:
This is solve for excel and goal seek tool
It could also be solve with a financial calculator
YTC:
Coupon payment: $ 120
time 5 yeaars
rate 0.068070103 (solved with excel)
PV $494.5766
Maturity: $ 1,050 (call price)
time 5.00
rate 0.068070103
PV 755.42
PV c $494.5766
PV m $755.4235
Total $1,250.0002
YTM:
Cuopon payment: $ 120
time 15 years
rate 0.089142162 (solved with excel)
PV $972.2006
Maturity $ 1,000.00
time 15 years
rate 0.089142162 (solved with excel)
PV 277.80
PV c $972.2006
PV m $277.7995
Total $1,250.0001
Answer:
$5
Explanation:
The computation of Alice's consumer surplus is shown below:
Consumer surplus = Willing to spend - Market price after considering the discount
where
Willing to spend = $30
Market price equals to
= Purchase a pair of jeans - coupon rate
= $35 - $10
= $25
So, the consumer surplus is equal to
= $30 - $25
= $5
Answer:
According to Hersey and Blanchard, readiness refers to "the extent to which a follower has the ability and willingness to accomplish a specific task" (1988, p. 174). The two dimensions composing employee readiness are willingness and ability related to a specific task.