Answer:
0.4868%
$615.47
Explanation:
Given that
a. EAR = 6%
Thus,
Equivalent monthly rate = (1 + r)^n - 1
Where r = EAR
Therefore
= (1 + 0.06)^1/12 - 1
= 1.0048675 - 1
= 0.0048675 × 100
= 0.4868%
b. Given that
Monthly rate = 0.4868%
Future value = 100,000
Time = 10 years
Recall that
FV annuity formula = C × (1/r) × ([1 + r ]^n - 1)
Where
C = payment
Therefore
100000 = C (1/0.004868) × ([1 + 0.004868]^120 - 1)
C = 100,000/(1/0.004868) × ([1 + 0.004868]^120 - 1)
C = $615.47 per month
Answer: 4. direct labour costs for the second quarter will be $192000
Explanation:
Finished Goods opening balance (quarter 2) = 4000
Projected sales = 40000
total units = 4000 + 40000 = 44000
direct labour produces 2 units per hour and an hour cost $8
direct labour cost = 44000/2 = 22000 hours = 22000 x 8 =176000
direct labour costs for quarter 2 = $ 176000. NOT $192000
Answer:
Using predetermined totals to control posting routines.
Explanation:
A validation methods to avoid errors is the batch total control, that verificate the transcription errors and transportation errors.
Validations aims to make sure that data is sensible, reasonable, complete and within acceptable boundaries.
The batch total checks that something is not missing by adding together a number field in different records and checking the total. For example, if an invoice has three items costing 1,2 and 3, the control will look for a batch total of 6.
