Answer:
Residual income = $666,270
Explanation:
The residual income is the amount left after the opportunity cost of capital deducted from the net operating income
Operating income=Contribution margin -Fixed cost
Operating income= 1,050,000 - 325,500= $724,500
Residual income = Net income - (cost of capital × capital invested)
=$724,500 - (18% × 323,500)= 666270
Residual income = $666,270
Answer and Explanation:
The computation is shown below:
a. The labor rate variance is
= actual labor cost - (standard rate × actual hours)
= ($131,340) - ($12.75 × 6,600 hours)
= $47,190 unfavorable
b. The labor efficency variance is
= (actual hours - standard hours) × standard rate
= (6,600 - (1,600 × 16) × $12.75
= $242,250 favorable
In this way it can be calculated and the same is to be considered and relevant
Answer:
Fixed cost in an organization does not change and is fixed while the variable cost keep changing if the production is increased.
Explanation:
Fixed cost are said to be that cost which does not change with production level for a certain limit. Let us suppose there is no change in the rent amount if we have only factory for the production of goods.
But the variable cost are those cost which increases as production increases. More will be the variable cost when the production will be more. Also for per unit basis, the variable cost remains the same.
Fixed cost are not important in decision making if there is an excess of capacity available.
For example,
Direct labor, direct material -- variable cost
Salary of supervisor, rent of factory -- fixed cost
Even though there is not much change in the variable cost, like for suppose material price increases, a company can still make a budget that is based on the past experience and predicting the market prices. Similarly, if there is a machine that uses three units of direct material for a piece if finished product, which is not going to change in the future. Thus the company can make a budget.
Answer:
Check the following explanations
Explanation:
The Federal Reserve is responsible for making monitory policies in the US. When the interest rates are increased by the Fed Reserve it lead's to cascading effects in the economy as a whole, it lead to :-
- Increased cost of borrowings, which reduces investments.
- Higher mortagage interest payments, leading to reduced usage, fall in the house prices.
- Increased Returns on Savings, leading to less expenditure and high saving behaviour of the people.
- Currency Appreciation, due to increased demand of local currency at the international market.
- Higher Government Debt Intererst Payments.
Answer:windows print dialog box (D) on Edg.
Explanation: