Answer:
B. overstate the predetermined overhead rate.
Explanation:
As we know
The Predetermined overhead rate would be equal to
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours or machine hours)
In the given question, the direct labor cost is used for computing the predetermined overhead rate which is already wrong.
To find out the predetermined overhead rate, we always use the indirect cost instead of direct cost
This error could overstate the predetermined overhead rate as it would increase the indirect labor due to which overhead is also increased. So, automatically the rate would also be increased.
Answer: $66,740.82
Explanation:
Formula to find the accumulated amount if compounded continuously :
, where P= principal invest
t = time
r= rate of interest.
Given : A= $84,000 , r= 4.6% = 0.046 , t=5 years
Hence, the amount need to invest = $66,740.82
Answer:
$370,440
Explanation:
The computation of the working capital is as follows:
As we know that
Working capital = Current asset - current liabilities
where,
Current Assets is
= Total current assets - purchase of an equipment - salaries - borrowed amount
= $658,000 - $2,000 - $560 + $80,000
= $735,440
And, Current Liabilities is $365,000
So, the working capital is
= $735,440 - $365,000
= $370,440
Answer:
D. Opportunity cost.
Explanation:
Since she could have taken a job and would have earned $62,000, this represents opportunity cost, lost due to the decision of starting her own apparel store. Opportunity cost is the cost of foregone alternative. Therefore, if there are two alternative X and Y, and alternative Y has a benefit of $M, then by choosing alternative X, the decision-maker is giving up a benefit equal to $M, which is the opportunity cost associated with choosing alternative X over alternative Y.
