Answer:
(a) 10.4%; 16.73%
(b) 6.33%
Explanation:
Given that,
Wages paid to the workers in 2016 = $25 per hour
Price level in 2016 = 241
Wages paid to the workers in 2017 = $41 per hour
Price level in 2017 = 245
Real wage rate in 2016:
= (Nominal wages ÷ Price level) × 100
= ($25 ÷ 241) × 100
= 0.104 × 100
= 10.4%
Real wage rate in 2017:
= (Nominal wages ÷ Price level) × 100
= ($41 ÷ 245) × 100
= 0.1673 × 100
= 16.73%
Therefore, the real wage increase received by these workers in 2017 is calculated as follows:
= Real wage rate in 2017 - Real wage rate in 2016
= 16.73% - 10.4%
= 6.33%
Hence, these workers do get a raise between the two years.
Answer:
$6.40
Explanation:
In this case, the predetermined overhead rate is calculated by dividing total manufacturing overhead expense by the total number of direct labor hours. The overhead expense is divided in two: fixed and variable. Predetermined variable overhead expense is $2.80 and predetermined fixed overhead expense = $36,000 / 10,000 direct labor hours = $3.60.
So the total predetermined overhead rate = $2.80 + $3.60 = $6.40
Answer:
Benchmark.
Explanation:
In this scenario, Mr. and Mrs. Smith were interested in purchasing a vacant lot. However, they first wanted the property surveyed. When the surveyor came out to measure the property he began measuring from the iron spike embedded in the middle of the street. In this case, the iron spike would be known as benchmark.
In real estate, benchmark can be defined as an indicator which is used by individuals or group of developers to measure and define properties such as a land. Iron spikes and wood stakes could be used as a benchmark for indicating ownership or measurement of a property.
Answer:
c. determining how managers are performing against prior year's operating results.
Explanation:
Management compare actual performance against planned goals to enable them evaluate deficiencies in the actual performance which can give directions to areas that should be improved upon. Moreover, comparing actual performance and planned goals expose deficiencies in the system which management would take into consideration when making future plan hence eliminate unplanned expenditures.
Again, there is also identification of priorities to accomplish objectives when actual performance are compared against planned goals.
Answer: If the price increases from $1,500 to $1,600 then the yield to maturity will decrease.
Explanation:
If Yields in the market fell, Bonds would still be making the same coupon payments they always have been regardless of this fall. This will lead investors to buy more bonds which will have the effect of raising bond prices.
This therefore shows that Bond prices and Yields are inversely related. If one rises, the other falls. If the price of the security (bond) increases from $1,500 to $1,600 then it follows that the yield to maturity will decrease.
