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damaskus [11]
4 years ago
5

A manufacturing company has variable overhead costs of $2.50 per unit and fixed costs of $5,000 per month. Each unit requires 4

hours of direct labor and the company expects to produce 2,000 units each month. The standard overhead rate will be
Business
1 answer:
Verdich [7]4 years ago
8 0

Answer:

Standard Overhead rate is $1.25 per Direct labor hours

Explanation:

Total variable cost (2000 unit * $2.50) =    $5,000

Total fixed cost                                       =    <u>$5,000</u>

Estimated Overhead cost                     =     <u>$10,000</u>

<u />

Estimated Direct labor hour = 2000 unit * 4 hours = 8,000 hours

Standard Overhead rate = Estimated overhead cost / Estimated Direct labor hour

Standard Overhead rate = $10,000 / 8,000 hours

Standard Overhead rate = $1.25 per Direct labor hours

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Use the following chart to explain how the loan repayment period affects the total cost of the loan.
FromTheMoon [43]

Loan 1 and Loan 2 have the same principal and interest rate but different monthly payments and total loan costs, therefore, the loan repayment periods would be different.

<h3>What is the loan repayment period?</h3>

The loan repayment period refers to the time it takes to repay a loan.

When the amount being repaid is smaller, the loan repayment period tends to be longer, and vice versa.

Data and Calculations:

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             Period                                                              Payment    of the loan

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Loan 2  10 years                 $5,000     6.47 percent       $57         $6,804

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Learn more about loan repayments at brainly.com/question/25599836

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6 0
2 years ago
Lost business, psychological damage, medical expenses, temporary lodging and pets killed are all examples of:
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