Answer:
Order size = 50 cars
The number of orders=25
Explanation:
<em>The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost. </em>
It is computed using the formulae below
EOQ = √ (2× Co× D)/Ch
Co- Ordering cost, Ch- Carrying cost - D- Annual demand
EOQ= √2× 1000× 1250/1000= 50
Number of cars to be ordered per time, i.e optimal order size= 50 cars
Order size = 50 cars
b)
The number of times orders should be placed per year would be calculated as follows:
The number of orders = Annual demand/ order size
The number of orders= 1250/50 = 25
The number of orders=25
Answer:
Retained earnings A/c Dr $500,000 (100,000 shares × $5)
To Dividend payable A/c $500,000
(Being the dividend is declared)
Explanation:
The journal entry is shown below:
Retained earnings A/c Dr $500,000 (100,000 shares × $5)
To Dividend payable A/c $500,000
(Being the dividend is declared)
For recording this we debited the retained earning as it reduced the stockholder equity and at the same time it increased the liabilities so dividend payable is credited
Answer:
B. Merger.
Explanation:
According to the given situation when two organization work together to establish a new organization for a purpose or we can say that for the benefit of the organization that is known as merger.
Merger basically may be defined as it is the mixture of two things, mainly of an organization.
Therefore the as per the above explanation the correct answer is B. Merger.
Answer:
True
Explanation:
Once the company starts taking loans to fund its investment their financial risk starts growing which is only beared by the Shareholders not by the bond holders. This additional risk faced by the ordinary share investors means that now they will require additional return. Remember the financial risk only exist if their is the use of leverage or we can say if the financial leverage increases then the financial risk increase. And if the financial risk increases then this additional risk is only beared by the ordinary share investors. Now additional risk beared is the reason why ordinary shareholders means that this has increased the riskiness of their equity investment.
Answer:
rate variance $ 72,000.00 F
efficiency variance $ 75,000.00 U
Total Variance: 3,000.00 U
Explanation:
DIRECT LABOR VARIANCES
std rate $ 15.00
actual rate $ 12.60 (378,000 labor cost / 30,000 labor hours)
actual hours 30,000
difference $2.40
rate variance $72,000.00
As the company wages were lower than expected, it saved rate-related cost
std hours 25000.00 (5,000 units x 5hours each = 25,000)
actual hours 30000.00
std rate $15.00
difference -5000.00
As the company use more hours the cost were higher than standard
efficiency variance $(75,000.00)