Answer and Explanation:
The preparation of flexible budget report is shown below:-
Xion CO.
Flexible budget report
Flexible budget Actual results Variances Favorable/
Unfavorable
Sales $864,000 $885,000 $21,000 Favorable
(10,800 × $80)
(-) Variable
cost $378,000 $351,000 $27,000 Favorable
(10,800 × $35)
Contribution $486,000 $534,000 $48,000 Favorable
(-) Fixed cost $270,000 $285,000 $15,000 Unfavorable
Net income $216,000 $249,000 $33,000 Favorable
Answer:
bond's selling price is $6154
Explanation:
given data
face value = $5,000
interest = 8 % of face value
rate = 6.5 %
to find out
bond's selling price
solution
we find interest that is
interest = 8 % of face value
interest = 8 % × 5000
interest = 400
so we consider bond selling price is x
so
bond selling equation will be
interest = rate × bond selling price
400 = 0.065 × x
x = 6154
so bond's selling price is $6154
Answer:
New required rate of return = 11.88%
Explanation:
<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta. </em>
<em>Under CAPM, Ke= Rf + β(Rm-Rf) </em>
<em>Ke- required rate of return, Rf-risk-free rate (treasury bill rate), β= Beta, Rm= Return on market.
</em>
Using the model, we work out Beta which is not given and then re-calculate the required rate of return of the new stock
<em>Ke- 11.75 % Rf- 5.5, Rm-Rf = 4.75%, β= ?</em>
11.75% = 5.50% + β(4.75%)
11.75% -5.50% = β(4.75%)
(11.75-5.50)/4.75= β
1.315789474
= β
1.315
= β
New required rate of return
5.50% + 1.315(1.02×4.75)
11.875
New required rate of return = 11.88%
Answer:
Actual Direct material cost = $81,500
Actual Direct labor cost = $187,500
Actual manufacturing overhead = $272,000
Explanation: kindly see attached picture for detailed explanation.
Variances ; Standard Cost Unfavorable Favorable Direct materials $ 80,000 Price variance $ 4,500 Quantity variance $ 3,000 Direct labor 184,000 Rate variance 2,700 Efficiency variance 6,200 Manufacturing overhead 271,000 Spending variance 4,000 Volume variance 5,000 Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing overhead.
Answer:
7.49%
Explanation:
n = Number of payment periods = 3
P = Total lease payment = Annual lease payment * Number of period = $20,700 * 3 = $62,100
FV = fair value of the machine = $50,000
Implicit rate = [($62,100 / $50,000)^(1 / 3)] - 1 = 0.0749, or 7.49%
