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slega [8]
2 years ago
9

Lumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division.

The following data apply to the coming budget year:
Budgeted costs of operating the plant for 2000 to 3000 hours:

Fixed operating costs per year $480,000
Variable operating costs $800 per hour
Budgeted long-run usage per year:

Flashlight Division 1500 hours
Night Light Division 600 hours
Practical capacity 3000 hours

Assume that practical capacity is used to calculate the allocation rates.

Actual usage for the year by the Flashlight Division was 1500 hours and by the Night Light Division was 800 hours. If a single-rate cost-allocation method is used, what amount of cost will be allocated to the Flashlight Division? Assume actual usage is used to allocate operating costs.

a. $1,850,000
b. $1,200,000
c. $2,050,000
d. $1,537,500
Business
1 answer:
babunello [35]2 years ago
5 0

Answer:

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3 years ago
Suppose an investor deposits $5,000 in an interest-bearing account at her local bank. The account pays 2.5% (annual) with intere
dlinn [17]

Answer:

FV= $6,418.20

Explanation:

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3 years ago
On January 1, Year 1, Greenfield, Inc. issues $100,000 of 9% bonds maturing in 10 years when the market rate of interest is 8%.
ELEN [110]

Answer:

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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.

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So, everything should look like this.

r(semi-annual)=[1+0.08]^{\frac{1}{2} } -1=0.03923

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