Mr. Andrews in an investor who is willing to invest some amount in the financial securities for a period of 7 years. Company ZTC is offering a 7 year zero-coupon bond of the face value of $5,000. The yield-to-maturity (YTM) of this zero-coupon bond is 5.00% with semi-annual compounding. Mr. Andrews is really interested in buying this bond and wants to know the maximum current price of this bond he must pay?

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget. the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead. a total of 119,300 units, using 478,000 direct labor hours, were produced during the year. actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.