Ruritania is calculating its balance of payments for the year. All transactions for the year are listed below (all amounts are e

Answer:

5.657%

Explanation:

Given data:

Face value = $1,000

Current price = $640

Maturity period, t = 8 years

Now,

the compounding formula is expressed as:

Face value = Present value ×

where,

r denotes the rate, which is the pretax debt rate

n signifies the frequency of interest compounding, which for semiannual compounding is n = 2

hence, when plugging in the values, we obtain

$ 1,000= $ 640 ×

or

1.5625 =

or

= 1.0282

or

r = 0.05657

therefore, the pretax cost of debt is calculated as 0.05657 × 100% = 5.657%

Answer: The answer is "b. Restating financial statements of all periods presented as if the new standard had been used in those periods".

Explanation: Implementing a change in accounting principle through the retrospective method involves restating financial statements for every period shown as if the new standard was in effect during those times.

Utilizing the retrospective approach for a shift in accounting principles means applying the change across all financial statements, including those dated before the principle was altered.

Response:

Allocated MOH= $274,320

Clarification:

Providing the following details:

The budgeted factory overhead was $266,400, while the expected machine-hours amounted to 18,500. The actual machine-hours totaled 19,050.

Initially, we must determine the estimated rate for manufacturing overhead. We can then allocate the overhead accordingly.

To find the estimated overhead rate for manufacturing, we should employ the following equation:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 266,400/18,500= $14.4 per machine-hour.

Now we can proceed to allocate the overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 14.4*19,050= $274,320