Answer:
Overhead absorption rate
= Overhead absorbed/Actual labour cost x 100
= $4,400/$800 x 100
= 550% of direct labour cost
Explanation:
Since the overhead absorbed is $4,400, there is need to divide the overhead absorbed by actual direct labour cost multiplied by 100. This gives the overhead application rate.
A legal firm would be considered a service company because they provide legal services to clients and persons.
Answer:
Equity.
Explanation:
Brand equity is the added value that creates a positive impact about the brand name in the minds of a customer. The given definition of brand equity was proposed by Davis Aaker. We can understand brand equity as the image or reputation that any brand holds in the minds of a customer.
Answer: b) $364,090
Explanation:
The Capitalized cost of the land would be the costs incurred to acquire the land and to set it up.
Capitalized cost = Purchase price + demolition of old building + title insurance + attorney fees + property taxes(for period since purchase) - scrap value
= 350,000 + 11,700 + 810 + 540 + (3,000 - 350) - 1,610
= $364,090
