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3 years ago

4. If the monthly finance charge on a loan is 1%, then the A.P.R. on that loan would be

Business

1 answer:

zhannawk [14.2K]3 years ago

3 0

Answer:

B. 12%

Explanation:

Given - If the monthly finance charge on a loan is 1%

To find - The A.P.R. on that loan would be

1 year = 12 months

Given that, monthly finance charge = 1%

So,

Cumulatively,

Annual Percentage rate (APR) = 12×1% = 12%

So,

The correct option is - B. 12%

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Folio Company estimates total manufacturing overhead costs to be $80,000 for the year and estimates direct labor hours to be 4,0

gregori [183]

Answer:

Allocated Overhead= $76,000

Explanation:

Giving the following information:

Estimated overhead for the period= $80,000

Estimated direct labor hours= 4,000 for the same period

Actual direct labor hours for the period are 3,800.

First, we need to calculate the estimated overhead rate. Then, we can determine the amount of overhead allocated to work in process for the period.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 80,000/4,000= $20 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 20*3,800= $76,000

8 0

3 years ago

Warner Company purchases $50,100 of raw materials on account, and it incurs $62,800 of factory labor costs. Supporting records s

a_sh-v [17]

Answer:

[Debit] Work In Process : Assembly Department $47,064

[Debit] Work In Process : Finishing Department $19,504

[Credit] Overheads $66,568

Explanation:

Note that overheads are assigned to departments on the basis of 160% of labor costs. Thus, our first point of call is to determine the labor cost for the respective departments. After that we then apply the 160 % to arrive at the Overheads assigned to that department

Step 1

Determine Departmental Labor Cost

Total Labor Costs = $62,800

Assembly Department = ( $44,400)

Finishing Department = $18,400

Step 2

Determine Overhead Cost for the Departments

Assembly Department ( $44,400 × 160 %) = $47,064

Finishing Department ( $18,400 × 160 %) = $19,504

Step 3

Journalize

Debit the Work In Process Account for the respective department and Credit the Overheads Account as above.

5 0

3 years ago

Hometown Grocery, Inc. has 41,000 shares of common stock outstanding and 5,000 shares of preferred stock outstanding. The com

nalin [4]

Answer:

Dividend Per Each Share = $0.85 per share

Explanation:

given data

common stock outstanding = 41,000 shares

preferred stock outstanding = 5,000 shares

common stock = $6.00 par value

preferred stock 4% noncumulative = $100.00 par value

total dividend payment = $55,000

solution

we get here Total Preferential Divided that is

Total Preferential Divided = Shares × Face Value × 4% ........1

Total Preferential Divided = 100 × 5000 × 4%

Total Preferential Divided = 20000

so as that Total Equity Dividend is

Total Equity Dividend = Total Dividend - Total Equity Dividend .............2

Total Equity Dividend = $55,000 - 20000

Total Equity Dividend = 35000

so Dividend Per Each Share will be

Dividend Per Each Share = $\frac{Equity\ Dividend}{Total\ Equity\ Shares}$ ..............3

Dividend Per Each Share = $\frac{35000}{41000}$

Dividend Per Each Share = $0.85 per share

7 0

3 years ago

Dr. Faulk's Outdoor Market wants to raise $2 million by selling 20-year coupon bonds at par. Comparable bonds in the market have

Greeley [361]

Answer:

The coupon rate should be: 6.62%.

Explanation:

* Yield to maturity calculation:

With the comparable bond in the market, we have:

+ Semiannual coupon payment = 2 million x 6.3% / 2 = $63,000

+ Price of the bond = 2,000,000 x 96.5% = $1,930,000

=> 1,930,000 = [ (63,000/YTM) x ( 1 - (1+ YTM)^(-40) ] + [2,000,000/(1+YTM)^40] <=> YTM = 3.31%.

* Coupon rate calculation:

To raise $2 million with the duration for 20-year, the present value of the coupon streams from the Bond the company offers plus the present value of the face value repayment in 20 years time; discounting at YTM, should equal to $2 million:

we have:

2,000,000 = [ (Coupon payment/3.31%) x ( 1 - 1.0331^(-40) ] + [2,000,000/1.0331^40] <=> Coupon payment = $66,200.

=> Coupon rate = Semiannual coupon payment / Face value x 2 = 66,200/2,000,000 x 2 = 6.62%

8 0

3 years ago

On January 1, 2018, Orangewood Industries bought a new cash register for $7,500. Orangewood plans to use the cash register for 4

masya89 [10]

Answer:

Depreciation expense for the year ended December 31, 2018 equals: $1,725

Explanation:

Orangewood uses straight-line depreciation, Depreciation Expense each year is calculated by following formula:

Depreciation Expense = (Cost of asset − Residual Value)/Useful Life

In Orangewood:

Cost of ash register is $7,500. The company plans to use the cash register for 4 years and then sell it for $600, therefore, Residual Value is $600 and Useful Life is 4 years.

Depreciation Expense each year = ($7,500-$600)/4 = $1,725

The cash register was bought on January 1, 2018. Depreciation expense for the year ended December 31, 2018 equals: $1,725

7 0

3 years ago