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stich3 [128]
3 years ago
13

A manufacturing company has the following budgeted overhead costs: Indirect materials: $0.50 per unit; Utilities: $0.25 per unit

; Supervisory salaries: $60,000; Building rent: $80,000. If the company expects to produce 200,000 units using 100,000 hours of direct labor, the standard overhead rate will be $ per direct labor hour.
Business
1 answer:
Darina [25.2K]3 years ago
8 0

Answer:

Total overhead                       $

Indirect material ($0.5 x 200,000 units) = 100,000

Utilities ($0.25 x 200,000 units)             = 50,000

Supervisory salaries                                 = 60,000

Building rent                                              = 80,000

Total overhead                                             290,000

Overhead rate                = <u>Budgeted overhead</u>

                                           Budgeted direct labour hours

                                         = <u>$290,000</u>

                                              100,000 hours

                                         = $2.90 per direct labour hour

Explanation:

In this case, we need to obtain the total overhead, which is the total of indirect material, utilities, supervisory salaries and building rent.

Then, we will divide the total overhead by direct labour hours so as to determine the overhead rate.

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change; over-estimates

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Assume that the resort town of Ocean View passed a law imposing an extra tax on boardwalk food businesses that used plastic cups
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Answer:

The answer is: A) Is the law rationally related to a legitimate government interest?

Explanation:

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3 years ago
Beth and Bob Martin have total take-home pay of $4,600 a month. Their monthly expenses total $3,450. Calculate the minimum amoun
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6 0
3 years ago
Laramie Trucking's CEO is considering a change to the company's capital structure, which currently consists of 25% debt and 75%
deff fn [24]

Answer:

15.29%

Explanation:

Calculation to determine What would be the estimated cost of equity if the firm used 60% debt

First step is to calculate the Original beta using this formula

Original beta = (rs-rRf)/ RPM

Let plug in the formula

Original beta= (11.5%- 5%)/6%

Original beta= 6.5%/ 6%

Original beta= 1.083

Second step is to calculate the Original D/E using this formula

Original D/E = D/A / (1-D/A)

Let plug in the formula

Original D/E= .25/ (1-.25%)

Original D/E= .333

Third step is to calculate the Unlevered Beta using this formula

Unlevered Beta = Bu = Bl / 1+((1- Tax rate) x (D/E)

Let plug in the formula

Unlevered Beta= 1.083/1+((1-.4) x .333

Unlevered Beta=.90

Fourth step is to calculate the Target using this formula

Target =D/e

Let plug in the formula

Target = .6/.4

Target= 1.5

Fifth step is to calculate the New Beta using this formula

New Beta = bu* (1+(D/E)(1- tax rate)

Let plug in the formula

New Beta = .90 *(1+(1.5)*(.6)

New Beta = 1.71

Now let calculate the estimated cost of equity using this formula

rs = rRF + new beta (RPm)

Let plug in the formula

rs= 5% + 1.71*6

rs= 15.29%

Therefore What would be the estimated cost of equity if the firm used 60% debt is 15.29%

4 0
2 years ago
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