Answer:
Direct material cost = $112,000
Explanation:
<em>Pre-determined overhead absorption rate rate = Estimated overhead for the period / estimated direct material cost</em>
Pre-determined overhead absorption rate rate (OAR= 75% of direct material cost
Applied overhead = OAR × direct material cost
Applied overhead = 75% × direct material cost
Let direct material cost be represented by y
84,000= 75% × y
y = 84,000/75%= 112000
Direct material cost = $112,000
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Answer:
$3,992.87
Explanation:
To determine the amount that would be deposited every year, the formula to be used is : future value/ annuity factor
Annuity factor = {[(1+r) ^N ] - 1} / r
FV = Future value = $82,000
P = Present value
R = interest rate = 7.3%
N = number of years = 13
= (1.073)^13 - 1 / 0.073 = 20.536622
$82,000 / 20.536622 = $3,992.87
I hope my answer helps you
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