Answer:
$1.60 per direct labor hour
Explanation:
Overhead application rate = Budgeted Overheads ÷ Budgeted Activity
hence,
Overhead application rate  = $364,800 ÷ $228,000
                                              = $1.60 per direct labor hour
 
        
             
        
        
        
Answer:
Monthly payment =$32,618.05 
Explanation:
<em>To arrive at the monthly installment, we would calculate the total interest due on the loan for nine months, add it to the principal and then divided the sum by 9 months</em>
<em>The monthly installment</em>
 = (Principal + total interest for 9 months)/ number of months
<em>Interest for 9 months </em>
= 9%× 9/12 × 275,000 
= $18,562.5
<em>Monthly installment</em>
= (275,000 + $18,562.5)/9
=32,618.05 per month
 
        
             
        
        
        
Answer:
The Journal entries are as follows:
(1) 
Equipment A/c       Dr. $71,890
To cash                                           $3,790
To accounts payable                     $68,100
(To record the purchase of equipment)
Workings:
Equipment value: 
= Purchase price + Sales tax + Freight charges for shipment of equipment + Installation of equipment
= 64,000 +4,100 + 890 + 2,900
= $71,890
Cash Paid: 
= Freight charges for shipment of equipment + Installation of equipment
= 890 + 2,900
= $3,790
Accounts payable = Purchase price + Sales tax
                                = 64,000 +4,100
                                = $68,100
(2) 
Prepaid Insurance A/c    Dr. $1,090
To cash A/c                                             $1,090
(To record any expenditures not capitalized in the purchase of equipment)