Four Years Ago, You Borrowed $250,000 for 20 Years at 8

question 67

Multiple Choice

Four years ago, you borrowed $250,000 for 20 years at 8%. Payments are made monthly. How much interest have you paid thus far?

• A)$74,222
• B)$75,756
• C)$75,909
• D)$76,456
• E)$77,121

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Definitions:

Actual Hours

Refers to the real amount of time spent on a task or activity, as recorded or reported.

Variable Overhead Efficiency Variance

The difference between actual variable overhead based on the standard hours allowed for the actual output and the actual variable overhead incurred.

Standard Machine-Hours

An accounting measure used to allocate manufacturing overhead costs to products based on the number of hours machines are expected to operate.

Variable Overhead Rate Variance

The difference between the expected (standard) cost of the variable overhead based on the actual production volume and the actual variable overhead incurred.