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3 years ago

Greg and Joyce have an adjustable rate mortgage on their home. What is the key feature of this type of loan?

Business

1 answer:

vladimir1956 [14]3 years ago

6 0

Answer: Interest rate can vary

Explanation: Based on the description of Greg's and Joyce's mortgage loan, the key term is the adjustable nature of the loan used to finance the mortgage. Being adjustable simply means not fixated. Hence, the interest on the loan is bound to change throughout the entire period of the loan. This type of mortgage loans are called ADJUSTABLE RATE MORTGAGE or FLOATING mortgage. The change in the interest rate applied on the outstanding balance of is usually at intervals which could be annually, semianually or monthly basis as the case may be.

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Exercise 9-4 Direct Materials Variances [LO9-4] Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the

ANTONII [103]

Answer:

1. The standard quantity 2318kg

2. The standard materials cost allowed $ 16226

3.Materials Spending Variance= 327 Unfavorable

4. The materials price variance 327 Unfavorable

5. The materials quantity variance 1330 Unfavorable

Explanation:

1. The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,800 helmets= 3800* 0.61= 2318kg

2. The standard materials cost allowed (SQ × SP) to make 3,800 helmets= 3800*0.61*7= $ 16226

3. The materials spending variance= Purchase Price Variance= Actual Price *Actual Quantity - Standard Price * Actual Quantity

Materials Spending Variance= $16,553- $ 16226

Materials Spending Variance= 327 Unfavorable

4. The materials price variance = (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity) = $16,553- $ 16226= 327 Unfavorable

5. The materials quantity variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity) =( 7* 2,508)- (7*2318kg)= 17556-16226= 1330 Unfavorable

8 0

3 years ago

Hailey, inc., has sales of $19,630, costs of $9,400, depreciation expense of $2,070, and interest expense of $1,560. assume the

Vedmedyk [2.9K]

Sales = 19,630

Costs = 9,400

Gross Profit = 10,230

Depreciation = 2,070

Interest expense = 1,560

Earnings before tax = 6,600

Taxes at 30% = 1,980

Net Income = 4,620

Add back Depreciation = 2,070 (as it is an non cash expense)

Operating cash flow (OCF) = $ 6,690

5 0

3 years ago

Local companies have expressed their enthusiasm about hiring UCF graduates who are able to sustain effort and interest in long t

Tom [10]

Answer:

The correct answer is b. Grit.

Explanation:

On many occasions, the main enemies of our dreams inhabit ourselves: conformism, apathy, disappointment and resignation. Many dreams lack planning, money, time and personal conviction about one's own abilities. All this goes against the entrepreneurial mindset.

7 0

3 years ago

Which term best completes the statement below? Governments can levy _____ and tariffs on imports. A. import

nadezda [96]

D. The correct answer is custom duties.

5 0

3 years ago

Bryant Company has a factory machine with a book value of $93,100 and a remaining useful life of 5 years. It can be sold for $27

NISA [10]

Answer:

The old machine should be replaced.

Explanation:

Note: See the attached excel file for the the analysis showing whether the old machine should be retained or replaced.

From the attached excel file, the following calculation are made:

Variable Manufacturing cost of Retain = Initial Variable Manufacturing cost * remaining useful life of old machine = $592,600 * 5 = $2,963,000

Variable Manufacturing cost of Replace = New Variable Manufacturing cost * Remaining useful life of new machine = $505,500 * 5 = $2,527,500

From the attached excel, it can be observed that the total cost of Retain is $32,200 higher than the total cost of Replace. This therefore implies that the old machine should be replaced.

Download xlsx

6 0

3 years ago