Answer:
$12,000 Overhead Underapplied
Explanation:
Calculation to determine what The overapplied or underapplied manufacturing overhead for the year was:
Total pre-determined manufacturing overhead $72,000
($3*24,000)
Less Actual manufacturing overhead cost incurred ($84,000)
Overhead Underapplied $12,000
Therefore The overapplied or underapplied manufacturing overhead for the year was:$12,000 Overhead Underapplied
Answer:
$14,614.02
Explanation:
The computation of the much more amount deposited is shown below:
= Expected cost ÷ (1 + interest rate on savings)^number of years - Expected cost ÷ (1 + interest rate on earnings)^number of years
= $150,000 ÷ (1 + 0.08)^18 - $150,000 ÷ (1 + 0.11)^18
= $37,537.35 - $22,923.33
= $14,614.02
We simply deduct the earning from the savings so that the approximate valeu could come
Answer:
The correct answer is option B - Given this payoff matrix and the payoffs, each criminal has an incentive to confess.
Explanation:
The prisoner's dilemma demonstrates the tradeoffs between cooperative and non-cooperative behavior.
The two individuals are being held prisoner for the same crime. However, they are in separate cells with no possibilities of communication.
With the payoff's given in the table, the best response of player 1 is to confess whether or not player 2 chooses to cooperate. Confess is also a dominant strategy for player 2 whether or not player 1 chooses to cooperate.
Therefore, the correct answer is option B - Given this payoff matrix and the payoffs, each criminal has an incentive to confess.
Answer:
- $45000
Explanation:
Economic profit is different from accounting profit in the sense that former also takes into consideration the implicit costs, also referred to as opportunity costs unlike the latter.
Economic Profit = Accounting profit - Opportunity Costs
Opportunity costs are defined as the the cost of sacrificed or foregone alternative for pursuing a particular alternative. Such costs are implicit or notional as they are not actually incurred.
In the given case, Economic Profit = Revenues - Explicit costs - Implicit costs
Here, the implicit cost is $60,000 income foregone.
Thus, Economic Profit = $20,000(income) - $ 5000 (expense) - $60,000 (opportunity cost)
Economic Profit = ($ 45,000) or -$45,000.
Answer and Explanation:
Given that Bond A pays $4,000 in 14 years and Bond B pays $4,000 in 28 years, and that the interest rate is 5 percent, we see that Using the rule of 70, the value of Bond A is 70/5 = doubled after 14 years. Now if its value is 4000 in 14 years, its current value must be halved. Hence the value is 2000.
Sinilarly the value of Bond B is approximately one fourth now because it pays 4000 in 28 years. Hence its value is 4000/4 = 1000.
Now suppose the interest rate increases to 10 percent. Hence the doubling time is 70/10 = 7 years
Using the rule of 70, the value of Bond A is now approximately 1,000 and the value of Bond B is 250
Comparing each bond’s value at 5 percent versus 10 percent, Bond A’s value decreases by a smaller percentage than Bond B’s value.
The value of a bond falls when the interest rate increases, and bonds with a longer time to maturity are more sensitive to changes in the interest rate.
