Manufacturing overhead is applied to the product based on machine hours used in each department under the rate of $20 per machin
e hour. The total machine hours are $60,000 of which $25,000 are related to the Mixing Department and the remaining are related to the Baking Department.
1 answer:
Answer:
- Total amount of manufacturing overhead applied to the baking department is <u>$700,000</u>
- Total amount of manufacturing overhead applied to the mixing department is <u>$500,000</u>
Explanation:
manufacturing standard overhead rate $20 per machine hour (60,000 total machine hours)
- mixing department = 25,000 machine hours x $20 = $500,000
- baking department = 60,000 - 25,000 = 35,000 machine hours x $20 = $700,000
- total overhead cost = $1,200,000 (equivalent to 60,000 machine hours)
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Answer:
<em>It will take me </em>= <em>30.99 years</em> to pay-off the borrowed amount paying $60.00 every month
Explanation:
SOLUTION:
Using the Formula: A = P(1+r/n)
Where:
A= $60.00;
P = $3,200.00;
r = 12.9%;
n = 12
t =?
Substituting the values into the Formula =
$60 = $3,200(1 + 12.9%/12)
= $60 = $3,200(1 + 12.9%/12)
= $60.00 = $3,200.00 (1 + 0.129/12)
= $60.00 = $3,200.00 (1 + 0.01075 )
= $60.00 = $3,200.00 (1.01075 )
= $60.00/$3,200.00 = $3,200.00 (1.01075 )/$3200.00
= 0.01875 = (1.01075)
= Using the law of logarithm
= log = Nlog A
=12tlog(1.01075) = log0.01875
= 12log(1.01075)/(1.01075) = log0.01875/log(1.01075)
= 12t = log(0.01875)/log1.01075
= 12t = 1.7270/0.04644
Divide 12 by both sides
=12t/12 = 371.88774/12
t= 30.9898
<em>∴ 30.99 years</em>
<em>It will take me </em>= 30.99 years to pay-off the borrowed amount paying $60.00 every month