Solution:
Manufacturing overhead expense volatility will be determined by subtracting the overhead cost of output from the total overhead cost of production according to the adjustable budget.
(Manufacturing overhead cost as per flexible budget) =
(Actual units x Variable manufacturing overhead per unit +Fixed manufacturing overhead )
= (5,050 x $1.30)+ $41,500 = $48,065
Actual manufacturing overhead cost = $47,905
Therefore, Manufacturing overhead spending variance
= $48,065 - $47,905 = $160
The deviation is positive as the real expense is smaller than the adjustable cost of the program.
Operating cash flow = ($649,000 x .072) + $102,600 = $149,328. In financial accounting, operating cash flow or as called as OCF in which cash flow provided by operations, cash flow from operating activities or as called as CFO or free cash flow from operations or as called as FCFO bring up to the sum of cash a company produces from the revenues it brings in not including costs related with long-term investment on capital items.
Answer: $1,200,000
Explanation:
The firm should include $1,200,000 as the cost of the Manufacturing facility for a new project in it's analysis.
This is because $1,200,000 is the opportunity cost of not selling the facility. The old costs that were incurred for the land and the facility are to be considered sunk costs as they have already been incurred and the only relevant cost now is what the market will pay for the facility which is $1,200,000.
Answer:
Present value of the offer = $739,018.03
Explanation:
The cash flows described in the question from end of year 1 to end of year 20 represent a growing annuity for 20 years. The present value of a growing annuity is calculated as follows:
PV= ![\frac{P}{i-g}*[1-[\frac{1+g}{1+i}]^n]](https://tex.z-dn.net/?f=%5Cfrac%7BP%7D%7Bi-g%7D%2A%5B1-%5B%5Cfrac%7B1%2Bg%7D%7B1%2Bi%7D%5D%5En%5D)
where P = the annuity payment in the first period
i = interest rate per period that would be compounded for each period
g = growth rate
n = number of payment periods
P in the 1st year = the base salary of $59,000 + the 10% bonus of $5,900 = $64,900; g is 3.9% ;i=0.1 and n = 20
Present value of the offer = 15,000 received immediately + PV of the growing annuity
= ![15,000+\frac{64,900}{0.1-0.039}*[1-[\frac{1+0.039}{1+0.1}]^2^0]](https://tex.z-dn.net/?f=15%2C000%2B%5Cfrac%7B64%2C900%7D%7B0.1-0.039%7D%2A%5B1-%5B%5Cfrac%7B1%2B0.039%7D%7B1%2B0.1%7D%5D%5E2%5E0%5D)
=739,018.03
Answer:
capital structure weight is = 0.349
Explanation:
Given data:
Number of share 10,700
per share price is $41
number of share of stock is 240
per share price of preferred stock is $92
number of bonds 570
coupon rate is 6% paid semiannually
mutuarity life of bonds is 22 year
face value of bonds is $1000
selling price 104.5% per par
common stock 
Preferred stock 
Bonds 
Total amount = 438,700 + 222,080+595,650 = 1,256,430
capital structure weight is 
