Creviston Mutual Fund,a Load Fund,holds Securities Valued at $90,000,000 on August

question 62

Essay

Creviston Mutual Fund,a load fund,holds securities valued at $90,000,000 on August 30.The fund had liabilities of $2,000,000 and 4,800,000 shares outstanding.Calculate the net asset value per share on this day.(Show all work. )

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Definitions:

Machine-Hour

A unit of measure representing the operation of a machine for one hour, often used in allocating manufacturing overhead costs.

Variable Overhead

Costs of overhead that vary with the level of production activity, such as utilities for machinery or materials handling expenses.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a certain activity base.

Variable Component

The part of a cost or expense that varies directly with the level of activity or production volume, in contrast to fixed costs.