Answer:
$37,600 favorable
Explanation:
Variable overhead spending variance can be computed as;
= (Actual hours worked × Actual variable overhead rate) - ( Actual hours worked - Standard variable overhead rate)
= ( 18,800 hours × $77,700/12,000) - (18,800 hours × $4.5)
= [(18,800 × $6.5) - (18,800 × $4.5)]
= $122,200 - $84,600
= $37,600 favorable
Marginal utility will be calculated for movies by: 14/(4*4) which would mean 0.875 utils per dollar per movie. Whereas, for apps, it would be: 8/(3*4) which would mean utils per dollar per app to be 0.667. Hence, movies tend to carry higher utility.
Answer:
$1,464,000
Explanation:
The computation of the depletion expense is shown below:
Purchase price plus additional cost = $5,640,000
Extracted tons during four year period = 940,000 tons
Current year tons extracted = 244,000 tons
So,
Depletion expense = Purchase price plus additional cost ÷ extracted tons during four year period × current year tons extracted
= $5,640,000 ÷ 940,000 tons × 244,000 tons
= $1,464,000
In this problem, we need to find the length of an annuity. We already identified the interest rate, the PV, and the payments.
Using the PVA equation: PVA =C({1 – [1/(1 +r)t]} /r
$18,000 = $750{[1 – (1/1.019) t] / 0.019}
Then solve for t:
1/1.019t= 1 − {[($18,000)/($750)](0.019)}
1/1.019t= 0.544
1.019t= 1/(0.544) = 1.838
t= ln 2.193 / ln 1.019 = 32.34 months or 2.7 in years
