Answer:
c. dairy farming
Explanation:
Free entry can be defined as the situation in which business firms such as sellers of goods or service providers can enter into the market freely and start selling to consumers.
This ultimately implies that, there are no legal barriers or just a minimum barrier, if any for new firms starting the same business as others.
Hence, dairy farming is the industry which is most likely to exhibit the characteristic of free entry.
A diary farming is one of such industries that allows new agents to come into the business without any barrier because it simply involves the production of essential commodities such as milk, beef etc which are usually required on a large scale in an economy.
Answer:
$4,280 under applied
Explanation:
Given that;
Estimated direct labor hours = 11,200
Estimated manufacturing overhead = $259,840
Estimated rate per hour = $259,840 ÷ 11,200 = $23.2
Actual labor hours = 10,800
Estimated overhead for actual hours
= 10,800 × $23.2
= $250,560
Actual overheads incurred = $254,840
Hence, actual overheads are under absorbed by
= $254,840 - $250,560
= $4,280
Answer:
When using a financial calculator to compute the issue price of the bonds, the applicable periodic interest rate ("I") is 3.923%
Explanation:
Hi, first, the discount interest rate that you have to choose is 8%, because 9% is the coupon rate (which in our case would be 9%/2=4.5% and this is used only to find the amount to be paid semi-annually).
Now we know we have to choose 8%, but this is an effective rate (I know this is an effective rate because no units were mentioned), and by definition it is a periodic rate, but it is not the rate that we need since the payments are going to be made in a semi-annual way, therefore we need to use the following equation.
![r(semi-annual)=[1+r(annual)]^{\frac{1}{2} } -1](https://tex.z-dn.net/?f=r%28semi-annual%29%3D%5B1%2Br%28annual%29%5D%5E%7B%5Cfrac%7B1%7D%7B2%7D%20%7D%20-1)
So, everything should look like this.
![r(semi-annual)=[1+0.08]^{\frac{1}{2} } -1=0.03923](https://tex.z-dn.net/?f=r%28semi-annual%29%3D%5B1%2B0.08%5D%5E%7B%5Cfrac%7B1%7D%7B2%7D%20%7D%20-1%3D0.03923)
Therefore, the periodic interest that yuo have to use to calculate the price of the bond is 3.923%
Best of luck.
Answer:
$7.60 per unit of output
Explanation:
Budgeted output units 51,000 units
Budgeted machine−hours 10,200 hours
Budgeted variable manufacturing overhead costs for 51,000 units $387,600
budgeted variable overhead cost per unit of output = $387,600 / 51,000 units = $7.60 per unit of output
In this case, the applied variable overhead rate = 35,750 units x $7.60 = $271,700, which would have been under-applied since the actual variable overhead costs were much higher, $328,900.
Explanation:
The adjusting entry is as follows
On January 31
Unearned revenue A/c Dr $3,500
To Magazine subscription revenue A/c $3,500
(Being the unearned revenue is recorded)
The computation is shown below:
= Sale value of annual subscriptions ÷ total number of months in a year
= $42,000 ÷ 12 months
= $3,500
