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Scilla [17]
3 years ago
13

For Crafton Company, indirect labor is budgeted for $57,000 and factory supervision is budgeted for $65,000 at normal capacity o

f 142,500 direct labor hours. If 145,000 direct labor hours are worked, how much is the flexible budget for these costs
Business
1 answer:
Masteriza [31]3 years ago
4 0

Answer:

$124,700

Explanation:

Indirect labor budgeted is $57,000

Factory supervision is $65,000

The normal capacity is 142,500

Direct labor 145,000

Therefore the flexible budget can be calculated as follows

= 57,000+65,000/142,500

= 122,000/142,500

= 0.86

0.86×145,000

= 124,700

Hence the flexible budget is $124,700

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Brown Street Grocers has a cost of equity of 11.8 percent, a pre-tax cost of debt of 6.9 percent, and a tax rate of 35 percent.
motikmotik

Answer:

The correct answer to the following question is option E) 9.06% .

Explanation:

Here the cost of equity given is  - 11.8%

Pre tax cost of debt- 6.9%

Tax rate- 35%

So the after tax cost of debt - 6.9% x 65%

= 4.485%

The debt to equity ratio - .6

So the weight of debt - .6 / ( 1 + .06 )

= .375

Weight of equity - 1 / ( 1 + .06 )

= .625

Weighted average cost of capital =

Debts cost x weight of debt + Equity cost x weight of equity

= 4.485 x .375 + 11.8 x .625

= 1.681875 + 7.735

= 9.06%

5 0
3 years ago
In​ March, 2006 the labor department of the country of Jobland determined that the size of the labor force was 100 million out o
Lubov Fominskaja [6]

Answer:

a). Unemployment rate in March=8%

b). Unemployment rate in April=9.4%

Explanation:

a).

The unemployment rate can be expressed as;

R=P/L

where;

R=unemployment rate

P=number of unemployed persons

L=labor force

In our case;

R=unknown

P=number of unemployed persons=labor force-number of employed persons

P=100-92=8 million

L=100 million

replacing;

R=8/100=0.08×100=8%

The unemployment rate in March=8%

b).Unemployment rate for April

Unemployment rate={(total unemployed+discouraged workers)/(labor force+discouraged workers)}×100

total unemployed=8 million

discouraged workers=1.5 million

labor force=100 million

replacing;

Unemployment rate=(8+1.5)/(100+1.5)=(9.5/101.5)×100=9.4%

Unemployment rate in April=9.4%

6 0
3 years ago
The common stock of ABC, Inc., has a beta of 1.13 and a standard deviation of 21.4 percent. The market rate of return is 12.7 pe
harina [27]

Answer:

The appropriate answer is "13.82%".

Explanation:

Given:

Risk free rate,

R_f=4.10

Beta of stock,

\beta=1.13

Market rate,

= 12.7

Now,

The market risk premium will be:

⇒ R_p = Market \ rate-Risk \ free \ rate

        = 12.7-4.1

        = 8.60 (%)

hence,

The cost of equity will be:

⇒ r=R_f+\beta\times R_p

      =4.10+1.13\times 8.60

      =4.10+ 9.718

      =13.82 (%)

7 0
3 years ago
Which of the following is an advantage of a sole proprietorship? A. It is easy to expand if it succeeds B. It faces few governme
Firdavs [7]

A sole proprietorship firm is a firm which can be opened by an individual and the the owner of the firm has an unlimited liability towards the firm that means the owner enjoys unlimited profit of the firm as well as the loss of the firm.

The advantage of the sole proprietor firm is that it can be set up very easily with low or very few government rules. So the correct answer is B.

7 0
3 years ago
Most service firms today have developed _______ programs that collect customer inputs and then integrate them into managerial de
vlada-n [284]
The appropriate response is the voice-of-customer. The "voice of the customer" is a procedure used to catch the prerequisites/criticism from the client (inward or outer) to give the clients the best in class benefit/item quality. This procedure is about being proactive and always imaginative to catch the changing necessities of the clients with time.
7 0
3 years ago
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