Answer:
$8,800
Explanation:
Calculation for What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31
First step is to calculate insurance amount per year
Insurance=$26,400/2 years
Insurance= 13,200
Second step is to calculate the insurance value per months
Insurance value=13,200/12 months
Insurance value=1,100
Now let calculate insurance expense
Insurance expense =$1,100 x 8 months
Insurance expense = $8,800
Note that May 1 to December 31 will give us 8 months
Therefore the amount of insurance expense that would appear on the company's income statement for the first year ended December 31 will be $8,800
Answer:
market price of bonds = $219,597.35
Explanation:
Since the coupon rate is higher than the market rate, the bonds will be sold at a premium.
PV of face value = $200,000 / (1 + 3%)³⁰ = $82,397.35
PV of coupon payments = $7,000 x 19.600 (PV annuity factor, 3%, 30 periods) = $137,200
market price of bonds = $219,597.35
Answer:
a. $13
b. $20,625 Unfavorable
Explanation:
a. Computation of overhead volume variance is shown below:-
Variable overhead rate = Variable overhead cost ÷ Expected standard hours
= $275,000 ÷ 25,000
= 11 direct labor hour
Fixed overhead rate = Productive capacity ÷ Expected standard hours
= $50,000 ÷ 25,000
= $2 direct labor hour
Total overheard rate = Variable overhead rate + Fixed overhead rate
= $11 + $2
= $13
b. The computation of overhead controllable variance is shown below:-
Variable overhead cost = Overhead rate × Standard hours
= $11 × 21,875
= $240,625
Fixed overhead cost = Overhead rate × Standard hours
= $2 × 21,875
= $43,750
Total overhead cost = $13 × 21,875
= $284,375
Actual result = $305,000
Variance = Actual result - overhead cost applied
= $305,000 - $284,375
= $20,625 Unfavorable
Working note:-
Standard direct labor hours = Actual units ÷ Standard hours
= 35,000 × 1.6
= $21,875
Standard units per hour = (Standard capacity × Expected production) ÷ Standard hours
= (50,000 units × 80%) ÷ 25,000 hours
= 1.6 units per hour
Answer:
e. a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.
Explanation:
A company's marketing plan generally involves specific periods of time, and usually last more than one year, but they aren't long enough to be considered as long term goals (more than 5 years). They follow the company's marketing strategies (long term goals), coordinate marketing activities and set short term goals.
