When the loan amount is divided by either the sales price or the appraised value, (whichever is lower), and then converted to a percentage, this is known as the <u>loan-to-value ratio</u>.
An LTV ratio is calculated by dividing the amount borrowed by the appraised value of the property, expressed as a percentage. The loan-to-value (LTV) ratio is a measure comparing the amount of your mortgage with the appraised value of the property. The higher your down payment, the lower your LTV ratio. Mortgage lenders may use the LTV in deciding whether to lend to you and to determine if they will require private mortgage insurance. In some cases, you'll find that the home you're in the process of purchasing appraises for a bit higher than the contract price, which will in turn, lowers your LTV ratio. Keep in mind, though, that it's not common for homes to appraise for much more than the contract price.
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Hi there
First find the predetermined overhead rate
Predetermined oH rate is total estimated overhead divided by estimated direct labor
Predetermined oH rate is
450,000÷180,000
=2.5
the amount of overhead to be allocated to finished goods inventory if there is $20,000 of total direct labor cost in the jobs in the finished goods inventory is
2.5×20,000
=50,000. ...answer
Good luck!