Answer:
Manufacturing overhead volume variance= $1,200 unfavorable
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
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Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Fixed Predetermined manufacturing overhead rate= 1,200,000/240,000
Fixed Predetermined manufacturing overhead rate= $5 per machine hour
<u>Now, to calculate the fixed manufacturing overhead volume variance, we need to use the following formula:</u>
<u></u>
Manufacturing overhead volume variance = Actual Factory Overhead - Budgeted Allowance Based on Standard Hours
Manufacturing overhead volume variance= (101,200) - (5*20,000)
Manufacturing overhead volume variance= $1,200 unfavorable
The Pillsbury Doughboy is an example of brand anthropomorphism in which his friendly demeanor and the trademark giggle he lets out when poked in the belly help shape customer perceptions of the brand.
Anthropomorphism means giving human characteristics or behavior to something that is not human, like the Pillsbury Doughboy. When companies do this, they are allowing the customer to connect with a brand on a different level of understanding. Geico is another company that does their with lifelike gecko. Customers connect with the emotions of the object and then connect/remember with the brand.
Answer: 8.99%
Explanation:
The coupon rate on the new bonds if the firm wants to sell them at par will be calculated thus:
Par value = 1000
Selling value = 959
Maturity = 16 × 2 = 32
Coupon = 8.5% = 8.5% × 1000 = $85
Semiannual PMT = $85/2 = $42.5
The coupon rate on the new bonds will be:
= Rate(32, 42.5, -959, 1000) × 2
= 8.99
Coupon rate = 8.99%
Answer:
Option D Costs incurred prior to deciding whether or not to produce a new product are sunk costs.
Explanation:
Option A The allocated costs might include fixed costs and are not relevant, so must not be included in the project appraisal.
Option B Sunk costs are not relevants costs and must not be included in the cost of the project. So this statement is also incorrect.
Option C Synergy occurs due to increase in the revenue and decrease in costs due to parenting strategy of the parent company.
The reason is that it is the definition of the sunk cost and is correctly stated in the option D. So the option D is correct here.
