Answer:
If inflation rate is positive, purchasing power of money decreases thus the rate of returns on investment decreases.
Explanation:
Labor-related Direct labor-hours $16,380 1,260 DLHs
Purchase orders Number of orders $1,920 640 orders
Product testing Number of tests $4,275 285 tests
Template etching Number of templates $805 35 templates
General factory Machine-hours $42,600 7,100 MHs
Required:
Compute the activity rate for each of the activity cost pools.
Answer:
a. Labor Cost Rate= 13 $ per DLH
b. Purchase orders Rate= $ 3 per order
c. Product testing Rate = $ 15 per test
d. Template etching Rate = $ 23 per template
e. General factory Rate= $ 6 per MHs
Explanation:
Data
Activity Activity Expected Overhead Expected
Cost Pool Measure Cost Activity
Labor-related Direct labor-hours $16,380 1,260 DLHs
Purchase orders Number of orders $1,920 640 orders
Product testing Number of tests $4,275 285 tests
Template etching Number of templates $805 35 templates
General factory Machine-hours $42,600 7,100 MHs
The activity rate can be obtained by dividing the total cost of each activity with the total cost of the driver allocated to it.
Calculations
Activity Rate = Expected Overhead Cost/ Expected Activity
a. Labor Cost Rate= $16,380 / 1,260 DLHs= 13 $ per DLH
b. Purchase orders Rate= $1,920/ 640 orders= $ 3 per order
c. Product testing Rate = $4,275 /285 tests= $ 15 per test
d. Template etching Rate = $805 /35 templates= $ 23 per template
e. General factory Rate= $42,600/ 7,100 MHs= $ 6 per MHs
Answer: labor
Explanation:
Answer:
Alpha for A is 1.40%; Alpha for B is -0.2%.
Explanation:
First, we use the CAPM to calculate the required returns of the two portfolios A and B given the risks of the two portfolios( beta), the risk-free return rate ( T-bill rate) and the Market return rate (S&P 500) are given.
Required Return for A: Risk-free return rate + Beta for A x ( Market return rate - Risk-free return rate) = 5% + 0.7 x (13% - 5%) = 10.6%;
Required Return for A: Risk-free return rate + Beta for B x ( Market return rate - Risk-free return rate) = 5% + 1.4 x (13% - 5%) = 16.2%;
Second, we compute the alphas for the two portfolios:
Portfolio A: Expected return of A - Required return of A = 12% - 10.6% = 1.4%;
Portfolio B: Expected return of B - Required return of B = 16% - 16.2% = -0.2%.
Required:
a. Compute the predetermined variable overhead rate and the predetermined fixed overhead rate.
b. Compute the applied overhead for Byrd for the year.
c. Compute the total overhead variance.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard= 1 direct labor hour per unit
The total budgeted overhead at normal capacity is $1,080,000 comprised of $420,000 of variable costs and $660,000 of fixed costs.
During the current year, Byrd produced 74,000 putters, worked 98,300 direct labor hours, and incurred variable overhead costs of $133,200 and fixed overhead costs of $612,000.
First, we need to calculate the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (420,000 + 660,000)/120,000
Estimated manufacturing overhead rate= $9 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9*98,300= $884,700
Finally, the total overhead variance:
Overhead variance= real overhead - allocated overhead
Overhead variance= 745,200 - 884,700
Overhead variance= 139,500 favorable
Answer:
Access and price relationships
Explanation:
Financial institutions - organizations operating in the financial and credit system. In the interpretation of the Western economic tradition, financial institutions are intermediaries between investors (households) and entrepreneurs (consumers of investments).
Financial markets are mechanisms that enable funds to be transferred from those with excess funds to those with few funds. Financial markets are divided into two as money markets and capital markets in terms of maturity. Money markets are markets where short-term funding supply and demand meet. Here, a short term is a year and a shorter term. Capital markets are the markets where long-term fund supply and demand are encountered. Here, long term is meant for over a year. Financial markets also provide low transaction cost value and prices that reflect the effective-market hypothesis.
We can think of basic relationships. The first concerns about the access. Financial institutions provide access to financial markets on behalf of investors seeking financial assets, such as institutional investors. The second relationship can often be claimed as "price." Financial asset prices (traded in financial markets), research and trading activities in financial assets, the actual cost or price of a particular asset affect the performance of financial institutions that affect the market outlook. For example, if a financial institution holds a significant stake in a particular company, it is a sign of markets (good or bad) and ultimately affects the price that a company is willing to pay for a financial asset. (e.g. stocks, bonds, etc.).
Answer:
Equity
Explanation:
Equity in a financial budget would refer to those financial policies relating to taxation of incomes and investments, spendings , etc which are formulated after taking into account the interests of all the sections of the society.
If a budget is favorable to the rich or to the poor, the budget is biased and unbalanced and thus lacks the essential criteria of equity which is justness and fairness to all.
In the given case, a certain section of the masses felt unfair amount of financial burden. Hence, as per the section, the budget is unfair or unequal i.e it burdens one section more than others.