Financial Accounting
Financial Accounting
3rd Edition
ISBN: 9780078025549
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
Question
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Chapter D, Problem 1RQ
To determine

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

To explain: why a company might invest in another company.

Expert Solution & Answer
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Explanation of Solution

The reasons for a company to invest in another company are as follows:

  • To receive the dividends, interest and gain from the increase in the value of their investment.
  • To temporarily invest the excess cash generated in seasonal industries. 
  • To create strategic alliances, entering into a new industry or to increase the market share.

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I need assistance with this financial accounting question using appropriate principles.
Hamlin Corp. produces ceramic figurines. It takes 2.5 hours of direct labor to produce a single figurine. Hamlin's standard labor cost is $18 per hour. During September, Hamlin produced 12,600 units and used 32,500 hours of direct labor at a total cost of $568,750. What is Hamlin's labor efficiency variance for September?
What is Hamlin's labor efficiency variance for September?
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