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Svetllana [295]
3 years ago
14

Assume that Roth’s accountants are expected to work a total of 8,000 direct labor hours in 2018. Roth’s estimated total indirect

costs are $96,000 and the allocation base used is direct labor hours. Requirements What is Roth’s predetermined overhead allocation rate? What indirect costs will be allocated to Client 507 if Jack Smith, an accountant at Roth Accounting, works 15 hours to prepare the financial statements?
Business
1 answer:
xz_007 [3.2K]3 years ago
8 0

Answer:

$12 and $180

Explanation:

The computation of the predetermined overhead rate is shown below:

As we know that

The predetermined overhead rate is

= Estimated total indirect cost  ÷ expected direct labor hours

= $96,000 ÷ 8,000

= $12

And, the indirect cost is

= Predetermined overhead rate × number of hours

= $12 × 15

= $180

We simply applied the above formula

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What is the rate of interest on a loan of $2,000, for 284 days, if the amount of interest is $93.37, using the exact interest me
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Exact interest method is using 365 days instead of 360.

 

We are going to use the formula: I = Prt, we will derived the formula of rate.

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