Use the Actuarial Method to Find the Amount of Unearned

question 60

Multiple Choice

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date.
-Regular Monthly Payment: $304.84 APR: 12.7%
Remaining Number of Scheduled Payments After Payoff: 31

• A)$1064.81
• B)$1500.12
• C)$1369.62
• D)$1429.51

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Definitions:

Budgeted Overhead Cost

An estimate of the total indirect costs or overheads expected to be incurred during a specified budget period.

Activity Rates

Charges or costs associated with specific business activities, used in costing and budgeting.

Activity Levels

Various stages of business operations ranging from high to low, impacting costs and revenues.

Activity-Based Costing (ABC)

A costing method that assigns overhead and indirect costs to related products and services based on the activities that drive those costs.