<span>C) initial cost = 11800 </span>
This time it will take you full 4 years
5300/1.13^4 = 3250.59
<span>14855.44 - 8800 = 3055.44 </span>
<span>cash required in year 4 = 3250.59 - 3055.44 = 195.15 </span>
<span>time required in year 4 = 195.15 / 3250.59 = 0.06 </span>
<span>Discounted payback period = year 1 + year 2 + year 3 + 0.06 = 3.06 years</span>
I believe the answer is B
Answer:
$4,280 under applied
Explanation:
Given that;
Estimated direct labor hours = 11,200
Estimated manufacturing overhead = $259,840
Estimated rate per hour = $259,840 ÷ 11,200 = $23.2
Actual labor hours = 10,800
Estimated overhead for actual hours
= 10,800 × $23.2
= $250,560
Actual overheads incurred = $254,840
Hence, actual overheads are under absorbed by
= $254,840 - $250,560
= $4,280
