Difficulty hiring and keeping good employees
They talk about it in the video
Answer:
I believe that this problem is about determining the equivalent annual cost of leasing option A:
lease cost year 1 = $36.25/sf
lease cost year 1 = $37.25/sf
lease cost year 1 = $38.25/sf
lease cost year 1 = $39.25/sf
lease cost year 1 = $40.25/sf
there are two ways to calculate this solution and the answer will vary significantly depending on which assumption you take:
a) lease payments are paid at the beginning of the year
the PV = $36.25 + $37.25/1.06 + $38.25/1.06² + $39.25/1.06³ +$40.25/1.06⁴ = $170.27
equivalent annual cost = ($170.27 x 6%) / [1 − (1 + 6%)⁻⁵
] = $10.2162 / 0.2527 = $40.42/sf
b) lease payments are paid at the end of the year
the PV = $36.25/1.06 + $37.25/1.06² + $38.25/1.06³ + $39.25/1.06⁴ +$40.25/1.06⁵ = $160.63
equivalent annual cost = ($160.63 x 6%) / [1 − (1 + 6%)⁻⁵
] = $9.6378 / 0.2527 = $38.13/sf
Answer:
Labor Rate Variance:
= Actual direct labor hours × (per actual direct labor hour price - per Standard direct labor hour price)
= 368 × (16.50 - 15)
= $552 U
Labor Efficiency Variance:
= Per Standard direct labor hour price × (Actual direct labor hours - Standard direct labor hours)
= 15 × (368 - 400)
= $480 F
The journal entry to record labor variances is:
Work in process A/c Dr. $6000
Labor rate variance A/c Dr. $552
To Labor efficiency variance $480
To Payroll $6,072
(To record labor variances)
Answer: 0.32 times
Explanation: Return on assets can be defined as the ratio under which companies are evaluated on the basis of total amount of assets investment. It is a ratio that evaluates the profitability of a company, it shows the ability of a company to generate revenue from the assets invested in it.
It can be computed as following :-
= 0.32 times
Efficiency of handling the economic system is correct. The free market gave an organized structure of production. But freedom, in a free market is not. Historically, free market was not a result of freedom it started with slavery. Massive production needed expansion of foreign lands, so the people in that country was not free as well. They are under force labor. Free market was not free when some countries already gained ground before some had just started. There is no freedom in a monopoly set up, but you are given the chance and the risk in a free market.
