Answer:
Overhead assigned to standard mode = $89,245.16
Explanation:
<em>Under the traditional absorption costing system, overhead is assigned to units produced using the direct labour hours basis.</em>
Overhead absorption rate = Budgeted overhead for the period/Budgeted labour hours
OAR = $(73,800 + 82,800) /(265 + 200) hours
= $156,600
/465
= $336.77 per hour
Overhead assigned to standard model= OAR × labour hours used
= $336.77 × 265
=$89,245.16
Answer:
The correct option is (c) Increase tax expense by $1,541 million
Explanation:
Step 1. Given information.
- Decrease in Deferred Tax Asset 1503 Million
- Increase in Deferred Tax Liabilities 38 Million
Step 2. Formulas needed to solve the exercise.
Increase in Tax Expense= Decrease in Deferred Tax Asset + Increase in Deferred Tax Liabilities
Step 3. Calculation.
Increase in Tax Expense = 1503+38 = 1541 Million
Step 4. Solution.
The correct option is (c) Increase tax expense by $1,541 million
Answer:
The correct answer is B
Explanation:
Utilitarian approach or method is the approach which assesses or analyze the actions in terms of the outcomes or results, that is the net costs and the benefits to all the stakeholders on individual level.
This approach aspire or attempt to accomplish the greatest good for the numbers when creating the least amount for preventing the suffering of the greatest amount.
So, the shop uses or practice the approach of utilitarian as it will provide them the extra one million dollar to put it in the marketing.
Answer:
(a) What is the net present value of this potential investment?
Net present value of Investment is $(3,903)
(b) Should you invest in this machine?
We should not invest in this investment because Net present value of this investment is negative by discounting Minimum acceptable rate of return.
Explanation:
Present Values:
Revenue $144,146
O&M Cost ($48,049)
Initial Investment <u>$(100,000)</u>
Net Present value $(3,903)
Working :
Present Value Calculation = P x ( (1- ( 1 + r )^-10) / r
Revenue = $21,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 144,146
O&M Costs = $7,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 48,049