Answer:
$1,188 unfavorable
Explanation:
The computation of the total direct labor variance is shown below:
Total Labor Variance is
= Total standard cost - total actual cost
= (Standard hours × Standard rate) - (Actual hours × Actual rate)
= (980 units × 4.5 × $14) - ($62,928)
= 61,740 - $62,928
= $1,188 unfavorable
Since the actual cost is more than the standard cost which results into unfavorable variance
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Answer:
Stock's beta = 0.65 (Approx)
Explanation:
Given:
Correlation = 0.49
Standard deviation of stock (SDs) = 33% = 0.33
Standard deviation of market (SDm) = 25% = 0.25
Find:
Stock's beta
Computation:
Stock's beta = Correlation(SDs) / SDm
Stock's beta = 0.49 (0.33) / 0.25
Stock's beta = 0.65 (Approx)
Answer:
increase
Explanation:
Transaction cost is the cost needed for every exchange. This cost can be external or internal. External transaction cost comes from the cost to do an exchange with a second party while internal cost comes from the company itself.
The Martinez Legal Firm acquired a competitor so their business size will increase for sure. Larger businesses will become more complex and need more management. These will, in turn, increase the internal transaction cost.
Answer:
<u>Line of credit </u>
Explanation:
A line of credit refers to a mechanism of availing short term credit from banks whereby a borrower is provided with a preset limit till which funds can be availed anytime.
As the borrower repays the money borrowed, the line of credit gets restored to the previous level provided it is an open line of credit.
Line of credit specifies the maximum limit till which money can be borrowed. The rate of interest and repayment time period are decided by the lender which is usually a bank.
Borrower is usually supposed to pay interest upon the money actually borrowed and not the full limit of the line of credit.
