Activity-Based Product Costing

If South Dakota's governor reports a budget surplus in 2011, that state government likely:

poizon [28]

The governor of South Dakota reports a budget surplus in 2011 and he states that the government received more taxes in the year than it spent in that year

Explanation:

Budget is the amount that the government plans and spends for the future needs and always the government introduces the budgets in the beginning of the year

Taxes must be paid regularly by the citizens and it is the due responsibility and the report of the taxes paid will be given to the governor an the report will be read and in one such report the governor of Dakota reported that there was a budget surplus the government received more taxes than it spent

7 0

3 years ago

On january 1 of year 1, congo express airways issued $3,700,000 of 6% bonds that pay interest semiannually on january 1 and july

erastova [34]

The amount of interest expense recognized by Congo Express Airways would be $199,334 after one year of being issued. This is calculated by finding 6% of the $3,700,000 which is $222,000. Then subtracting the amortized amount of $22,666 per annum, which was found by doubling the 6 month rate of $11,333. This gives you a total of $199,334.

6 0

3 years ago

The Timken Company has announced a rights offer to raise $5.1 million. The company's stock currently sells for $34 per share, th

omeli [17]

Answer:

Right price =$33.50

Explanation:

The theoretical ex-right price is the weighted average price at which shares are expected to settle after a right-issue,

It is the weighted average price of value of shares of the before-right price and the right price

Ex-rights price

=(Before-right value of shares + Proceed from rights )/Total number of shares after rights issue

Number of rights issue units = amount to be raised /Right price per share

= $5.1 m/$30 = 170,000 units

Before - rights value = 1,207,000 × $34 = 41,038,000

Proceed from rights = 170,000 × $30 = 5,100,000

The ex-right price = (41,038,000 + 5,100,00)/(1,207,000 +170,000) units

Right price =$33.50

8 0

3 years ago

T-bills currently yield 5.0 percent. Stock in Danotos Manufacturing is currently selling for $87 per share. There is no possibil

sladkih [1.3K]

Answer:

a) Call option = Stock price - present value of the exercise price

= $87 – [$76 ÷ 1.05]

= $14.62

b) The intrinsic value is the amount by which the stock price exceeds the exercise price of the call, so the intrinsic value is

= $87 - $76

=$11

c) Call option = Stock price - present value of the exercise price

= $87 – [$68 ÷ 1.05]

= $22.24

d) The intrinsic value is the amount by which the stock price exceeds the exercise price of the call, so the intrinsic value is

= $87 - $68

=$ 19.

e) The value of the put option is $0 because there's no chance the put exhausts the money.

f) The intrinsic value is also $0

Explanation:

6 0

3 years ago

Japan Company produces lamps that require 3 standard hours per unit at a standard hourly rate of $12.00 per hour. Production of

coldgirl [10]

Answer:

(a) rate variance = $ 5,234, Adverse

(b) time variance = $ 6,360, Favourable

(c) total cost variance = $1,126, Favourable

Explanation:

(a) rate variance,

rate variance = (Standard Rate - Actual Rate) × Actual Hours

=( $12.00- $12.20) × 26,170 hours

= $ 5,234, Adverse

(b) time variance, and

time variance = (Standard Hours - Actual Hours) × Standard Rate

= (26,700 hours - 26,170 hours) × $12.00

= $ 6,360, Favourable

(c) total cost variance

total cost variance = rate variance + time variance

= $ 5,234, Adverse + $ 6,360, Favourable

= $1,126, Favourable

4 0

3 years ago