On August 1, Greene Company purchased merchandise inventory on account with a list price of $25,000 and credit terms of 2/10, n/
1 answer:
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Net Present Value is the difference between the present value of cash flows and the initial investment.
Net Present Value = Present Value of cash flows - Initial Investment
The following image shows the Net Present value of the cash flows:
Net Present Value = $122,142 - $120,000
Net Present Value = $2,142
Answer:
False.
Explanation:
Given: Total budgeted factory overhead cost = $600000.
Plantwide allocation base= 100000 hours.
Now, finding plantwide factory overhead rate.
Formula; Plantwide factory overhead rate=
⇒ Plantwide factory overhead rate=
Hence, Zorn´s plantwide factory overhead rate is $6 per hour not $3 per hour.