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Alex Ar [27]
3 years ago
14

Bailey Company's flexible budget cost formula for indirect materials, a variable cost, is $0.60 per unit of output. If the compa

ny's performance report for last month shows an $800 favorable spending variance for indirect materials and if 9,000 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been:
Business
1 answer:
kolezko [41]3 years ago
4 0

Answer:

$4,600

Explanation:

Standard rate = $0.60

Unit produced = 9,000

Favorable spending variance = $800

Material spending variance = [Standard rate - Actual rate) * Unit produced

Material spending variance = [Standard rate*Unit produced - Actual rate*Unit produced

$800 = [$0.6*9000) - Actual cost

Actual cost = [$0.6*9000) - $800

Actual cost = $5,400 - $800

Actual cost = $4,600

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Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $42.50. At the end of year 1
kkurt [141]

Answer:

17.76%

Explanation:

The computation of the time-weighted return on your investment is given below

But before that we have to do the following calculations

Year 1 = ($46.50 - $42.50) + 2 ÷ ($42.50) × 100 = 14.12%

Year 2 = ($54.50 - $46.50) + 2 ÷ ($46.50) × 100 = 21.51%

Now the time weighted return is

(1 + t)^2 = (1 + 14.12%) × (1 + 21.51%)

= 1.1412 × 1.2151

= √1.3867 - 1

= 17.76%

8 0
3 years ago
7. Two farmers, A and B, each apply 100 tons of manure on their fields. To reduce manure runoff, the government has decided to r
valentinak56 [21]

Answer:

Explanation:

1) The total cost of reducing runoff if the farmers are not allowed to trade permits is:

total loss = farmer A' loss + farmer B's loss

where:

  • farmer A's loss = (100 - 50) x $25 = $1,250
  • farmer B's loss = (100 - 50) x $50 = $2,500

total loss = $1,250 + $2,500 = $3,750

2) The total cost of reducing runoff if the farmers are allowed to trade permits is:

Since farmer A will be willing to sell his permits to farmer B for a price that is ≥ $25 and ≤ $50, the total cost of reducing runoff is $2,500.

If farmer A sells his runoff permit at a price higher than $25 his costs will decrease but farmer B's costs will increase, so any gain due to price change is offset by the other farmer's loss.  

8 0
4 years ago
If the time between the pretest and the posttest is very short, then
sertanlavr [38]
You will see positive learning, less likely to forget, information is fresh.
8 0
3 years ago
Think of the simple quantity theory of money in the AD-AS framework. In that framework, the AS curve is a.horizontal. b.upward-s
ozzi

In the simple quantity theory of money in the AD-AS framework, the AS curve kinked at natural real.

<h3>What is AS curve or Aggregate Supply Curve?</h3>
  • The amount of real GDP that the economy produces at various price levels is represented by the aggregate supply curve.
  • The methodology used to build the supply curve for all products and services is different from the methodology used to build the supply curve for individual goods and services.
  • It is assumed that input prices will remain constant when calculating the supply curve for a certain good.
  • The price level, however, defines the aggregate supply curve. As the price level rises, producers will be able to charge more for their goods, which will stimulate production.
  • However, a price increase will also have a secondary effect that will eventually result in an increase in input prices.

To learn more about the Aggregate Supply Curve refer to:

brainly.com/question/24303271

#SPJ4

8 0
2 years ago
If the total debt ratio is 36%, and the allowable mortgage debt ratio is 28%, which of the following debt ratios would a loan ap
schepotkina [342]

Answer:

The loan applicant would qualify for the mortgage debt ratio in option a because his mortgage debt ratio is 24% and the allowable mortgage debt ratio is 28%.

Explanation:

First, you have to calculate the debt ratio in each case. It is calculated by dividing the total debt by the income.

a. Debt= $600

Income= $2,500

Mortgage debt ratio=600/2,500= 0.24→24%

b.  Debt=$600+$250+$75=$925

Income=$2,500

Total Debt ratio=925/2,500= 0.37→37%

The loan applicant would qualify for the mortgage debt ratio because his mortgage debt ratio is 24% and the allowable mortgage debt ratio is 28%. The loan applicant would not qualify for the total debt ratio because his ratio is 37% and the allowable total debt ratio is 36%.

6 0
3 years ago
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