Answer:
predetermined overhead allocation rate is $228 per hour
Explanation:
given data
Estimated over head costs = $8,000,000
Estimated machine hours = 35,000
actual machine hours = 31,000
to find out
predetermined overhead allocation rate
solution
we know that predetermined overhead allocation rate is express as
predetermined overhead allocation rate =
put here value
predetermined overhead allocation rate =
predetermined overhead allocation rate = $228.571
so predetermined overhead allocation rate is $228 per hour
Answer:
b. could be low because people might adjust their expectations quickly if they found anti-inflation policy credible
Explanation:
In the given situation, it is mentioned that the rational expectations proponets said that the sacrified ratio would be lesser as the people wants to adjust their expectations in a fastest way in the case when they found that the anti-inflation policy is credible
Therefore as per the given situation, the option b is correct
Explanation:
December 31, 2016: To record accrued wages for one day (10 workers × $145) = $1,450.
January 4, 2017: To record accrued and current wages.
Wages expense = 10 workers × 3 days × $145 = $4,350
Cash = 10 workers × 4 days × $145 = $5,800.
See attached photo.
Answer:
$118,860
Explanation:
Gross Margin:
= Revenue - Cost of Goods Sold
= $290,000 - $100,000
= $190,000
Profit before tax:
= Gross Margin - Salaries - Insurance payment - Interest
= $190,000 - $12,000 - $3,600 - $4,600
= $169,800
Insurance payment: Only half of 2-year payment of 7,200 is relevant for this year.
Net Income:
= Profit before tax - Tax at 30%
= $169,800 - (30% × $169,800)
= $169,800 - $50,940
= $118,860
Answer:
Assume that you are a new analyst hired to evaluate the capital budgeting projects of the company which is considering investing in two CPEC projects, “Expansion Zone North” and “Expansion Zone East”. The initial cost of each project is Rs. 10,000. Company discount all projects based on WACC. Further, all the projects are equally risky projects and the company uses only debt and common equity for financing these projects. It can borrow unlimited amounts at an interest rate of rd 10% as long as it finances at its target capital structure, which calls for 50% debt and 50% common equity. The dividend for next period is $2.0, its expected that they will grow at the constant growth rate of 8%, and the company’s common stock sells for $20. The tax rate is 50%.