Wendy is a great student. She is an assiduous one. How I wish every student is like her. Being independent and able to sustain her needs without any help from others.
Answer: $1.4 million
Explanation: As, in the given case we need to compute the depreciation tax shield, we will use marginal corporate tax rate instead of average corporate tax rate as it will result in additional savings to the company in the form of taxes it paid.
Thus, shield amount can be computed as follows :-
($4,000,000) * (35%) = $1,400,000
Answer:
<em>total factory ovehead for a single unit of ding adding both, fabrication and asembly department:</em>
<em> $47.63</em>
Missing information:
Product # DLH MH
Rings 1,080 7 7
Dings 2,280 7 8
Explanation:
fabrication applies overhead based on machine hours:
85,700 expected overhead
1,080 units if Rings x 7 MH +
2,280 units of Dings x MH = 25800
85,700 / 25,800 = 3,3217
Assembly applies overhead based on labor hours:
expected overhead 70,900
1,080 x 7 DLH +
2,280 x 7 DLH = 23,520
70,900 / 23,520 = 3,0144557
Overhead applied for a single unit of DING:
7 x 3.01 assembly overhead +
8 x 3.32 fabrication overhead
<em>total for 47.63</em>