. January 1, 2002 you bought a coupon bond for $1102. You received a coupon of $50 on December 30 . On January 1, 2003, you sold the bond for $989. What was your total rate of return? Show your work.

The rate of return is found to be -5.72%. The negative sign indicate that the bond resulted in a loss.

Explanation:

The total rate of return r is given as

Here the value of the net return or loss  is given as

So the rate of return is as

As  the rate of return is found to be 5.72%. The negative sign indicate that the bond resulted in a loss.

Results are below.

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate=  200,000 / 2,500

Predetermined manufacturing overhead rate=  $80 per machine hour

Now, we can allocate overhead to Job 551:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 80*90

Allocated MOH= $7,200

Finally, the entry to record the allocation:

Work in process inventory        7,200

       Manufacturing overhead (apply Job 551)  7,200