Answer:
Manufacturing overhead rates based on direct labor will increase and the total overhead itself will increase as a result of the increased use of equipment instead of direct labor.
Explanation:
When overhead rates are based on direct labor and automated equipment replaces direct labor, the number of direct labor hours will decrease. This will cause an increase in the predetermined overhead rates since fewer direct labor hours will now divide the same or even an increased level of overhead. Even the overhead costs will increase from the replacement of direct labor with equipment.
Answer:
c. FICA taxes
Explanation:
The FICA taxes are the taxes that contributed in the federal insurance and the same is deducted from the income also the benefits would also received in this. The benefits could be in terms of social security, medicare, retirement benefits
Therefore as per the given options, the option C is to be selected
Hence, all the other options would be ignored
Answer:
Interest rate of 11.84% is required to earn desired amount of $45,000 per year from an Investment of $380,000.
Explanation:
Amount of Investment = P = $380,000
Desired Return per month = A = $45,000
Number of Years = n = 10 years
Interest rate = ?
Use following formula to calculate Interest rate:
A = P x Interest rate
$45,000 = $380,000 x r
r = $45,000 / $380,000
r = 0.1184 = 11.84%
