Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Ov
1 answer:
Answer:
Overhead = 80% of direct labor cost
Overhead for December = $31,920
Explanation:
As for the provided information, we have:
Overhead rates are based on percentage of direct labor cost.
Overheads = $416,000
Labor cost = $520,000
Therefore, predetermined overhead =
Note: The predetermined rate per hour cannot be calculated as the number of hours or the wage rate is not provided for labor cost, and overheads are based on such rate.
Therefore, for the month of December overhead based on predetermined rate = Labor cost of December 80%
= $39,900 80% = $31,920
You might be interested in
Answer:
The oranges should be picked in 2 weeks for maximum return
Explanation:
We assume that the return of the owner is y ($)
Assume that the number of weeks the oranges should be picked to have maximum return is x (weeks). (x≥0)
If collect now, the price for each bushel is $27
As the price per bushel decrease by $1.50 per bushel each week
=> After x weeks, the price of a bushel decrease: 1.5x ($)
=> The price of 1 bushel after x weeks is: 27 - 1.5x ($)
If collect now, each tree can yield 7 bushels
As the yield increases by half a bushel per week for the next 5 weeks
=> After x weeks with x ≤ 5, each trees would yields: 7 + 0.5x (bushels)
The return = The price of each bushes × The quantity of bushels
=>
⇔
⇔
We have: if the equation has the form of with a≠0, its maximum value is:
In the equation , we have: a = -0.75; b = 3; c = 189
=>
To look for the number of weeks, we should find x (0≤x≤5) with which y = 192
⇔
⇔
⇔
⇔
⇔
⇔ x = 2
The oranges should be picked in 2 weeks for maximum return