Answer:
a. $5,460
Explanation:
The computation of the ending amount of direct labor cost is shown below:
First we have to compute the direct labor hours which is
= Ending work in process - direct materials cost
= $17,578 - $7,750
= $9,828
The total per direct labor hours is
= $12 + $15
= $27
So, the direct labor hours would be
= $9,828 ÷ $27
= 364 hours
So, the ending direct labor cost is
= 364 hours × $15 per hour
= $5,460
Answer:
The legal rate to quote is 31.88% per year
The effective annual rate is 36.98%
Explanation:
In calculating the legal rate, I used the rate function in excel,whose formula is below:
rate(nper,-pmt,pv)
The nper is the period of loan calculate as 1 year multiplied by 12 months
pmt is the periodic monthly loan repayment of $3838.25
pv is the today's value of the loan at $39000
Find detailed computation in the attached spreadsheet.
Answer:
A. 12.1%
B. 8.9%
Explanation:
a. Calculation for What is the company's new cost of equity
Using this formula
New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]
Let plug in the formula
New cost of equity=[0.089+[(0.089-0.057)*(1)*1]
New cost of equity=[0.089+0.032*(1)*1]
New cost of equity=[0.121*(1)*1]
New cost of equity=0.121*100
New cost of equity=12.1%
Therefore the company's new cost of equity will be 12.1%
b. Calculation for What is its new WACC
Particular Weight Cost Weighted cost
Equity 0.5000 *12.1% = 0.0605
Debt 0.5000 * 5.7% =0.0285
WACC =0.089*100
WACC =8.9%
(0.0605+0.0285)
Therefore the new WACC will be 8.9%
Answer:
The correct answer is (b)
Explanation:
Sale promotion is an effective way to improve short-term sales and at the same time attract new potential buyers. Ice scrapers sale promotion strategy will help them to increase their sales revenue. As they are offering buy two get one free sale on black Friday the overall prices will decrease that will increase the demand.
Answer:
c) $625,000
Explanation:
Capital account has value of capital issued. It includes the Common stock Capital account and Paid in capital excess of par account. Value up to the par are recorded in the common stock capital account and value over the par value is recorded in the Paid in capital excess of par.
Stock Capital = Numbers of shares x Par Value of Share
Stock Capital = 125,000 shares x $5 = $625,000
