Answer:
Units sold equaled 39,000 and units produced equaled 42,000.
Explanation:
The reason is that operating income will be lower under variable costing than absorption costing when there is a rise in the the unit level of inventory during an accounting period.
From the question, the 42,000 units of production is 3,000 units greater than the 39,000 units sold. This implies that there is an increase in the unit of inventory level. This usually cause the variable-costing income to be lower than absorption-costing income.
Answer: 11.978%
Explanation:
From the question, we are informed that the 10.9 percent preferred stock of Rock Bottom Floors is selling for $91 a share. We are further informed that the tax rate is 44 percent and the par value per share is $100.
The firm's cost of preferred stock will be 10.9% multiplied by the par value per share and then divided by the share price of $91. This will be:
= (10.9% × 100)/91
= (0.109 × 100)/91
= 10.9/91
= 0.11978
= 11.978%
Answer:
Particulars Amount
Raw material used $18,600
Add: Direct labor $26,600
<u>Overhead costs</u>
Factory supplies $3,100
Plant depreciation $6,800
Indirect labor $8,600
Utilities ($10,600*80%) <u>$8,480</u>
Total overhead cost <u>$26,980</u>
Total manufacturing costs <u>$72,180</u>
Answer:
SD = 0.0740270 or 7.40270 percent rounded off to 7.403 percent
Explanation:
To calculate the standard deviation of the investment, we must first calculate the expected or mean return of the investment. The expected or mean return can be calculated as follows,
r = pA * rA + pB * rB + ... + pN * rN
Where,
- pA, pB, ... represents the probability of state occurrence
- rA, rB, ... represents return A, return B and so on under each state
r = 0.2 * 0.16 + 0.4 * 0.12 + 0.2 * 0.05 + 0.2 * -0.05
r = 0.08 or 8%
The formula to calculate the standard deviation of a stock/investment is as follows,
SD = √pA * (rA - r)² + pB * (rB - r)² + ... + pN * (rN - r)²
SD = √0.2 * (0.16 - 0.08)² + 0.4 * (0.12 - 0.08)² + 0.2 * (0.05 - 0.08)² + 0.2 * (-0.05 - 0.08)²
SD = 0.0740270 or 7.40270 percent rounded off to 7.403 percent
Thank you for the 5 points
