Answer:
6.11%
Explanation:
For computing the variance, first we have to determine the expected return which is shown below:
= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy) + (expected return of the recession × weightage of recession)
= (12% × 5%) + (10% × 85%) + (2% × 10%)
= 0.6% + 8.5% + 0.2%
= 9.30%
Now the variance would equal to the
= Weightage × (Return - Expected Return) ^2
For boom:
= 5% × (12% - 9.3%) ^2
= 0.3645
For normal economy:
= 85% × (10% - 9.3%) ^2
= 0.4165
For recession:
= 10% × (2% - 9.3%) ^2
= 5.329
So, the total variance would be
= 0.3645 + 0.4165 + 5.329
= 6.11%
Answer:
Date Account Dr. Cr.
Dec 30 Wages Expense 4,000
Wages Payable 4,000
Explanation:
Employee worked the whole week which ended on Friday, December 30. The adjusting entry will require to record the accrued expense at end of the period. As the last day of period is Saturday, December 31 and he will be paid on Monday January 2. The accrual accounting requires to record an expense at the end of the year if it is incurred even if it is not paid yet.
Payroll expense = $800 x 5 days = $4,000
Answer:
Paid-in Capital in Excess of Par Value will be credited for $120,000.
Explanation:
The journal entry for the issue of shares is shown below:
Cash A/c Dr $140,000
To common stock (4,000 shares × $5) = $20,000
To Paid-in Capital in Excess of Par Value $120,000
(Being issue of shares recorded)
So, the cash account is debited whereas the common stock and paid-in capital should be credited
And, the remaining balance should be transferred to the Paid-in Capital in Excess of Par Value
1. Phishing 3. Liability insurance 4. Payment history 2. Joshua
Answer:
budgeted direct-labor rate= $700 per direct labor hour
Explanation:
Giving the following information:
Budgeted total direct-labor costs $14,000,000
Budgeted total direct-labor hours 200,000
To determine the direct-labor cost rate, we need to use the following formula:
budgeted direct-labor rate= total amount of direct labor cost/ total amount of direct labor hours
budgeted direct-labor rate= 14,000,000/200,000= $700 per direct labor hour
