Answer: a) $18,605
Explanation:
The amount he can borrow today will be an amount that when grown at a rate of 7.5% per year will equal $20,000 in a year.
20,000 = Amount + ( Amount * rate * time)
20,000 = Amount + (7.5% * Amount)
2,000,000 = 1.075 * Amount
Amount = $18,605
Answer:
D. May be claimed to reduce the amount of withholdings from the employee's earnings.
Explanation:
A personal allowance can also be known as a "tax-free" allowance. It refers the amount an individual is entitled to earn in a given tax year, before he/ she starts paying income tax.
Based on common practice, when your Federal income tax withholding is calculated, you can claim some allowances such as the personal allowance which will reduce the amount of your income that is withheld by your employer.
Answer:
In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations etc. The recipient incurs a debt and is usually liable to pay interest on that debt until it is repaid as well as to repay the principal amount borrowed.
Explanation:
Answer:
a. $5,000 unfavorable
b. $24,600 favorable
Explanation:
The computations are shown below:
a. Variable overhead efficiency variance = Standard rate × (Standard hours - Actual hours)
where,
Standard variable overhead rate is $50
Actual hours is 5,500 direct labor hours
Standard hours is
= 6,000 ÷ 300 × 270 = 5,400 direct labor hours
So, the Variable overhead efficiency variance is
= $50 × (5,400 direct labor hours - 5,500 direct labor hours)
= $50 × - 100 direct labor hours
= $5,000 unfavorable
b. And, variable overhead spending variance is
= (Actual hours × Standard rate) - Actual cost
= (5,500 hours × $50) - $250,400
= $275,000 - $250,400
= $24,600 favorable