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pickupchik [31]
2 years ago
6

Clemson University Urgently needed $30 million to properly execute a student testing plan during fall of 2020. Clemson approache

d by a commercial paper dealer offering to sell an issue for Clemson. The dealer indicates that Clemson could sell a $30 million issue maturing in 270 days at an interest rate of 8. 5 percent per annum (deducted in advance). The fee to the dealer for selling the issue would be 1. 5% of the issue size. What was annual financing cost of Clemson to secure large-scale testing
Business
1 answer:
VARVARA [1.3K]2 years ago
5 0

The financing cost of Clemson to secure the investment will be $2.2875 million.

<h3>How to calculate the financing cost</h3>

From the information, we've to calculate the simple interest first. This will be:

= PRT/100

= (30 × 0.75 × 8.5)/100

= 1.9125 million

The fee is 1.25% of the issue size. This will be:

= 1.25% × $30 million

= $375000

Therefore, the financing cost will be:

= $1.9125 million + $0.375 million

= $2.2875 million

Learn more about financing cost on:

brainly.com/question/24576997

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The following cost behavior patterns describe anticipated manufacturing costs for 2013: raw material, $7.60/unit; direct labor,
Advocard [28]

Answer: The answer is as follows:

Explanation:

Given that,

Raw material = $7.60/unit

Direct labor = $10.60/unit

Manufacturing overhead = $8.60/unit

(1) Unit cost under variable costing = Raw material + Direct labor + variable Manufacturing overhead

= 7.6 + 10.6 + 8.6

= 26.8

(2) Unit cost under absorption costing = Raw material + Direct labor + variable Manufacturing overhead + fixed Manufacturing overhead

= 7.6 + 10.6 + 8.6 + 8.6

= 35.4

5 0
3 years ago
World Company expects to operate at 70% of its productive capacity of 38,000 units per month. At this planned level, the company
Evgen [1.6K]

Answer:

a. Predetermined Overhead Rate

Rate   = Overhead cost / standard hours of direct labor

Variable Overhead Costs Rate = 182875 / 16625 = 11  

Fixed Overhead Costs Rate= 66500 / 16625  = 4

Total Overhead Costs Rate = Variable Overhead Costs  + Fixed Overhead Costs

= 11 + 4

= 15

b. Total overhead variance

Overhead costs applied= Overhead * Standard Direct Labor Hours

When Standard Direct Labor Hours= (16625 / 38000 * 70%) * 44600

= (16625 / 26600) * 44600.

= 0.625 * 44600

= 27875 Hours.

i. Variable Overhead Costs = 11 * 27875 = 306625

ii. Fixed Overhead Costs = 4 * 27875 = 111500

iii. Total Overhead Costs = 15 * 27875 = 418125

The company incurred $421,625 actual overhead which is the Actual overhead.

Hence, Total overhead variance= Total Overhead - Costs Actual overhead

= $418,125 - $421,625

= -3500 (Unfavorable)

6 0
3 years ago
The Jamesway Corporation had the following situations on December 2021. On December 10, 2021, Jamesway received a $4,800 payment
MariettaO [177]

Answer and Explanation:

The Journal entries are shown below:-

1. Deferred Service Revenue A/c Dr, $4,800

        To Revenue A/c  $4,800

(Being Revenue recognized is recorded)

2. Advertisement Expense A/c Dr, $1,800 ($3,600 ÷ 40 × 20)

           To Prepaid Advertisement A/c  $1,800

(Being expense recognized is recorded)

3. Employees Salaries A/c Dr, $24,000

         To Outstanding Employees Salaries A/c $24,000

(Being expense & liability is recorded)

4. Interest expense A/c Dr, $1,500 (($50,000 × 9%) ÷ 12 × 4

               To Interest Liability A/c  $1,500

(Being Interest expense and Liability is recorded)

6 0
3 years ago
The balance in the Bonds Payable account is a credit of $ 72 comma 000. The balance in the Discount on Bonds Payable account is
dalvyx [7]

Answer:

The bond's carrying​ amount is $68,350

Explanation:

Data provided in the question:

Balance in Bonds Payable account= $72,000

Balance in the Discount on Bonds Payable account = $3,650

Now,

The Bond's carrying amount is calculated as:

Bond's carrying amount

= Balance in bonds payable account - Balance in discount payable account

= $72,000 - $3,650

= $68,350

Hence,

The bond's carrying​ amount is $68,350

7 0
3 years ago
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