Using cash or debit because it’s much simpler. If using cash you have a confirmed amount to give the person you are buying from
Answer: The predetermined overhead rate increased because the total direct labor-hours dropped
Explanation:
The predetermined overhead rate refers to an allocation rate which is used in applying the estimated manufacturing overhead cost to the cost objects for a particular reporting period.
When there's reduction in the direct labor-hour requirement from 5 hours to 2 hours, the predetermined overhead rate increased because the total direct labor-hours dropped
The predetermined overhead rate is calculated as the total overhead cost divided by the machine hour. Therefore, if there's reduction in the direct labor hour rate, then there will be a rise in the predetermined overhead rate.
Based on the amount of equity and that of assets, the percentage funded by owners is<u> 29.4%. </u>
<h3>What is the Percentage financed by owners?</h3>
This can be found by the formula:
= Equity / Assets x 100%
Solving gives:
= 6,702,500 / 22,825,084 x 100%
= 29.4%
In conclusion, 29.4% is financed by the owners.
Find out more on Equity at brainly.com/question/25847981.
company B has the greater operating leverage
What is operating leverage?
A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.
The break-even point of a business is determined using operating leverage, which also aids in determining the right selling prices to cover all expenditures and make a profit.
Regardless of whether they sell any units of product, businesses with significant operational leverage must cover a bigger amount of fixed costs each month.
Low-operating-leverage businesses may have high variable costs that are directly related to sales, but they also have fewer monthly fixed expenses.
Learn more about operating leverage with the help of given link:-
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Examples of some of the most prominent hard currencies are listed below: The U.S. dollar (USD) The euro (EUR) ... The Australian dollar (AUD)