Solution:
S1 $180,000 is allocated 70% to S2 or $126,000 ( 0.7 * 180,000 )
S2 total is $162,000 + $126,000 = $288,000
S2 $126,000 is allocated 19.7% to P2 or $81000
Under the step-method of cost allocation,
the amount of costs allocated from $2 to P2 would be $81000
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Answer:
Price variance will be $4512.5 ( Unfavorable )
Explanation:
We have given standard material cost per yard = $2
Actual material cost per yard = $2.10
Standard yards per unit = 4.5
And actual yards per unit = 4.75
Units of production = 9500
Total number of actual quantity used = 9500×4.75 = 45125
So direct material price variance = ( standard price - actual price ) × actual quantity used = ( $2 - $2.1 ) × 45125 = -$4512.5
So price variance will be $4512.5 ( Unfavorable )
Answer:
D1 = $4.86
D2 = $5.25
D3 = $5.67
D4 = $6.12
D5 = $6.61
D6 = $6.85
Explanation:
Dividend paid by Indigo Ink Supply at year 0 = Do = $4.5
Growth rate for the first five years = 8%
Growth rate for the sixth year = 3.6%
The dividend paid out for the next six years are,
D1 = Do(1+ growth rate)
D1 = $4.5(1+8%) = $4.86
D2 = $4.86(1+8%) = $5.25
D3 = $5.25(1+8%) = $5.67
D4 = $5.67(1+8%) = $6.12
D5 = $6.12(1+8%) = $6.61
D6 = $6.61(1+3.6%) = $6.85
Answer:
$812.49
Explanation:
Given that
Sale value of ordinary annuity = $4,947.11
Time period = 8 years
Interest rate = 6.50%
So by considering the above information, the annual annuity payment is
$4,947.11 = Annual annuity payment × Present value annuity factor at 6.5% for 8 years
$4,947.11 = Annual annuity payment × 6.0888
So, the annual annuity payment is $812.49