What Is the Expected Spot Rate of ¥/$(Canadian) One Year

question 93

Multiple Choice

What is the expected spot rate of ¥/$(Canadian) one year from now if the current spot rate is ¥66/$and the Yen is selling one-year forward at ¥70/$?

• A)¥78.9/$
• B)¥98.0/$
• C)¥66/$
• D)¥70/$

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Definitions:

Machine-Hours

A measure of production time, quantified in hours, that machinery is operating to perform work.

Machining Department

A specialized division within a manufacturing operation that performs machining processes, such as cutting, shaping, or drilling materials.

Finishing Department

The last department in a manufacturing process where products are completed and made ready for sale.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products, calculated before the accounting period begins.