Answer:
$2,250 favorable
Explanation:
The direct material price variance is computed as;
= ( Standard price - Actual price ) × Actual quantity
Given that;
Standard price = $8.75
Actual price = $8
Actual quantity = 3,000 units
Direct material price variance
= ( $8.75 - $8 ) × 3,000
= ( $0.75 ) × 3,000
= $2,250 favorable
Answer:
Unit product cost is $130
Explanation:
The computation of the unit product cost for product X is given below;
Direct material per unit (5,000 ÷ 100) $50
Direct labor per unit (3,000 ÷ 100) $30
Manufacturing overhead ($200,000 ÷ 2,000) × 50 ÷ 100 $50
Unit product cost is $130
This is the correct answer but the same is not provided in the given options
Answer:A. contracts that include unfamiliar legal terms.
Explanation: Legal terms are languages or words usually used in the legal system to prosecute cases either criminal,civil,business or industrial relations etc.
Unfamiliar legal terms are languages or words that are not usually used in the legal system,these terms or language is not familiar with the legal practitioners.
Plain language law guarantees that contracts and Communications are done with languages which the public can easily grasp and understand.
Answer: 8.92%
Explanation:
The interest rate that would make Randy indifferent is the one that will discount the twenty payments of $325,000 to $3,500,000 today.
Use Excel's Rate function to find this rate;
=RATE (No of periods, annual payments, present value, future value, Annuity due = 1)
=RATE(20,350000,-3500000,0,1)
= 8.92%
Answer:
1. Jackson = $350,000 and Pearce = $1,020,000
2. Pearce
Explanation:
The formula to compute the free cash flow is shown below:
= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure
But for this question, the formula would be
= Cash flow from operating activities - Cash investment in property & equipment
1. For Jackson, it would be
= $500,000 - $150,000
= $350,000
For Pearce, it would be
= $1,500,000 - $480,000
= $1,020,000
2. If we see and compare the free cash flow, the Pearce has better cash flow due to the high cash flow from operating activities