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3 years ago

Compute various manufacturing overhead rates.

Business

1 answer:

n200080 [17]3 years ago

7 0

Answer:

1. $28 per direct labor hour

2. 140%

3. $35 per machine hour

Explanation:

Given that,

Total manufacturing overhead costs next year = $1,400,000

Direct labor hours used = 50,000

Direct labor cost next year = $1,000,000

Machines are expected to be run = 40,000 hours

1. Manufacturing overhead rate:

= Total manufacturing overhead cost ÷ Direct labor hours used

= $1,400,000 ÷ 50,000

= $28 per direct labor hour

2. Manufacturing overhead rate:

= (Total manufacturing overhead cost ÷ Direct labor cost) × 100

= ($1,400,000 ÷ $1,000,000) × 100

= 140%

3. Manufacturing overhead rate:

= Total manufacturing overhead cost ÷ Machine hours

= $1,400,000 ÷ 40,000

= $35 per machine hour

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You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement account earns 4.8% compound

Maslowich

Answer:

The retirement fund will last for 33 years and 7 months

Explanation:

We need to solve for time in an ordinary annuity

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $15,000.00

rate 0.004 (4.8% divide by 12 month)

PV $3,000,000

time n

$15,000 \times \frac{1-(1+0.004)^{-n} }{0.004} = 3,000,000\\$

we clear for n as much as we can and solve

$(1+0.004)^{-n}= 1-\frac{3,000,000\times0.004}{15,000}$

$(1+0.004)^{-n}= 0.20$

now we use logarithmic properties to solve for n:

$-n= \frac{log0.2}{log(1+0.004)$

-403.16

this will be a value in months so we divide by 12 to get it annually

403/12 = 33,5833

we convert the residual to months:

0.5833 x 12 = 6.996 = 7 months

6 0

3 years ago

Select which of the ways that entrepreneurs improve the economy is being described:

8_murik_8 [283]

Answer: (B) Demand for products

Explanation:

The demand for the products is basically refers to the process in which the amount of the specific products are get purchased for the particular price so that the one business organization increase their productivity and the other business meets its specific requirement.

There are basically five factors which determine the demand of products function in an organization are as follows:

Income of the buyer
Price
Customer choice
The actual price of the related other products
Future supply expectations

Therefore, Option (B) is correct.

4 0

3 years ago

An example of a microeconomic phenomenon is: Select one: a. Global warming research turns out to correctly predict the weather i

IgorC [24]

Answer:

The correct answer is letter "E": None of the above.

Explanation:

Microeconomics deals with the economic choices of individuals and small companies. Jointly, these individual decisions influence the demand for and supply of goods and services in the economy. One of the subjects most discussed in microeconomics is the supply, demand and equilibrium model.

A) Global warming research turns out to correctly predict the weather in the future. (No major impact in economy)

B) The dictator of a country builds ten new airports. (Macroeconomic)

C) A child buys a delicious chocolate bar. (No major impact in economy)

D) The country of Montenegro adopts the Euro. (Macroeconomic)

None of the statements above represents a microeconomic phenomenon.

4 0

3 years ago

Bob operates Bob's Pizza, a small pizzeria that sells about 50 pizzas a day. Bob's daily total fixed costs are $100, and his dai

Sonja [21]

Available options are:

A. All of the choices are correct.

B. Average fixed costs would increase.

C. Marginal costs would increase.

D. Average variable costs would increase

Answer:

Option B. Average fixed costs would increase.

Explanation:

As the variable cost is the same which means that the marginal cost (All variable costs) would neither increase nor the average variable cost (Average variable cost due to fluctuating variable cost) would increase. Hence both Option C and D are incorrect.

Option B is correct because:

Average Fixed cost = (Initial Value + Value Now) / 2

Average Fixed cost = ($100 + $150) / 2 = $125

This means that the average cost has been increased.

6 0

4 years ago

Consider the following five situations. In which situation would a borrower be best off and in which situation would a lender be

umka2103 [35]

Answer:

The borrower is best off in situation "a" and the lender is best off in situation ▼ "C" .

Explanation:

Considering all the situations given in the options, the borrower is best in situation a and lender is best off in situation in c.

Part a

Real Interest rate = Nominal Interest rate - Inflation rate = 14 - 17 = -3 per cent. Thus, the purchasing power of money has fallen and the person has to pay back money with little purchasing power as compared to the value of the purchasing power at the time he borrowed money. Thus, borrowers are best off.Thus, borrower is best off when the inflation rate is very high.

Part c

Inflation rate is negative, thus the purchasing power of money will increase and lenders will get back money with higher purchasing power as compared to the value of the purchasing power of money at the time he lend the money. Thus, lender is best off when inflation rate is lowest.

5 0

3 years ago