ABC company wants to start a new project but is unable to obtain the financing under any circumstances. This firm is facing:

Direct Labor Variances Dvorak Company produces a product that requires 3 standard hours per unit at a standard hourly rate of $1

Vilka [71]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Direct Labor Variances Dvorak Company produces a product that requires 3 standard hours per unit at a standard hourly rate of $17 per hour. If 1,000 units required 2,800 hours at an hourly rate of $16.50 per hour.

A)

Direct labor price variance= (SR - AR)*AQ

Direct labor price variance=(17 - 16.5)*2,800= 1,400 favorable

B) Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= (3,000 - 2,800)*17= 3,400 favorable

C) Total direct labor variance= -1400 - 3400= -4,800 favorable

7 0

3 years ago

Wendell’s Donut Shoppe is investigating the purchase of a new $18,600 donut-making machine. The new machine would permit the com

sertanlavr [38]

Answer:

1. Total Annual Cash Inflows = 5000

2. Discount Factor = 3.72

3. New Machine's internal rate of return = 16%

Explanation:

<em>Note:</em> the question is incomplete and it lacks essential data to be used in part 4. Without the exhibits mentioned in the questions, it is not possible to solve this question completely. We will be solving it till part 3.

1) What would be the total annual cash inflows associated with the new machine for capital budgeting purposes?

Answer:

In this we have to calculate the total annual cash inflows and the formula to calculate it is mentioned below:

Total Annual Cash Inflows = Savings in Part Time help annually + Additional contribution Margin from Expected Sales.

Total Annual Cash Inflows = 3800 + ( 1000 x 1.20)

Total Annual Cash Inflows = 3800 + 1200

Total Annual Cash Inflows = 5000

2. What discount factor should be used to compute the new machine’s internal rate of return?

Answer:

Formula to calculate the Discount factor:

Discount Factor = Price of new machine/ annual cash inflow

Price of new machine = 18600 USD

Annual cash inflow = 5000

Discount Factor = 18600 /5000

Discount Factor = 3.72

3. What is the new machine’s internal rate of return?

Answer:

As, it can be seen from the exhibits (which are missing from this question) that the discount factor for 6 years is nearly closest to 16%, hence the new machine's internal rate of return = 16%

<em>Note:</em> the question is incomplete and it lacks essential data to be used in part 4. without the exhibits mentioned in the questions. It is impossible to solve further.

7 0

3 years ago

The treasurer of a major U.S. firm has $40 million to invest for three months. The interest rate in the United States is .28 per

diamong [38]

Answer:

Check the explanation as follows.

Explanation:

a) If it is invested in US

Current= $40 million

Interest rate= 0.28% p.m

Interest for 1 month= $40 million*0.28%= $0.112 million

Interest for 3 months= $0.112*3= $0.336 million

Total value after 3 months= $40 million+$0.336 million = $40336000.

b) If it is invested in Great Britain.

Convert $40 million into Pounds= $40 million*0.639 = Pound 25.56 million

Ivest in Great Britain for 3 months @ 0.32%

Interest per month= 25.56 million*0.32% *3 = 0.245376

Total Pounds after 3 months= Pound 25.805376

Convert into $= 25.805376/0.642 = $40195289.7156

Value if invested in great britain= $40195289.7156

8 0

2 years ago

Confirmations that are sent to select customers asking them to review the current balance due the client as shown on the client'

nata0808 [166]

Answer:

The correct answer is letter "C": Positive confirmations.

Explanation:

Positive confirmations are audit procedures by which ambiguous information is clarified. It also implies the confirmation of the accuracy of the data provided in the company's books and Financial Statements. By doing so, liabilities, bank accounts, accounts receivables and payables amounts are verified.

4 0

3 years ago

An economic system is a structure for

Dominik [7]

It includes the combination of the various institutions, agencies, entities, decision-making processes, and patterns of consumption that comprise the economic structure of a given community. As such, an economic system is a type of social system....

7 0

2 years ago