22-124 If in One Year There Is No Change in Either

question 14

Multiple Choice

22-124 If in one year there is no change in either interest rates or exchange rates,what is the end-of-year profit or loss of your bank's cash position? Assume that annual interest is paid on both the CD and the Canadian bonds on the date of liquidation in exactly one year.

• A)Profit of US$20,000.
• B)Loss of C$224,000
• C)Profit of US$50,000.
• D)Profit of C$63,000.
• E)Profit of US$313,000.

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Definitions:

Standard Materials Cost

The budgeted or estimated cost of raw materials required for production, used for cost control and variance analysis.

Material Used

The raw materials that have been consumed in the production process to create goods.

Total Labor Cost Variance

This refers to the difference between the actual labor costs incurred and the standard labor costs for the actual production levels.

Labor Per Unit

The amount of labor cost assigned to each unit of production.