Answer:
Cash flow per year to achieve the required return on investment: $69,702.11
Explanation:
We have to solve for which cashinflow makes an annuity of 10-year discount at 8.9% equal to our 449,300 dollars invested:
PV 449,300
time 10 years
rate 0.089 per year
C $ 69,702.112
Answer:
overhead rate: 15
applied overhead 30,000
underapplicatio for 1,000
Explanation:
The manufacturing overhead rate is determinate by dividingthe total expected cost by a cost driver. In this case, the machine hours.
estimated cost 150,000
expected machine hours 10,000
predeterminate overhead rate = 150,000/10,000 = 15
Next, to allocate cost, we multiply the actual value fo the cost driver by the rate
actual machine hours x MO rate
2,000 x 15 = 30,000 applied overhead.
Last, we compare with the actual overhead to determinate over or underapplied overhead:
applied - actual
30,000 - 31,000 = -1,000
Thew overhead was underapplied, as the cost were for 31,000 but we only recognize 30,000
Answer:
A lot of information is missing as well as the requirements, so I looked for similar questions.
The requirements are:
<em>a. What is the break-even point in sales dollars for RBC? </em>
<em>b. What is the margin of safety for RBC? </em>
<em>c. What sales dollars would be required to achieve an operating profit of $250.000? $490.000?</em>
<em />
a) break even point = total fixed costs / contribution margin
break even point = $1,124,430 / 73% = $1,540,315
b) margin of safety = current sales - break even point = $1,953,000 - $1,540,315 = $412,685
c) operating profit = $250,000 ⇒ ($1,125,430 + $250,000) / 73% = $1,884,150.69
operating profit = $490,000 ⇒ ($1,125,430 + $490,000) / 73% = $2,212,917.81
