Answer:
b. $750 per direct labor
Explanation:
Calculation for the what was the predetermined overhead rate
Using this formula
Predetermined overhead rate=Factory overhead / Direct labor hours
Let plug in the formula
Predetermined overhead rate=$1,500,000/$200,000 hours
Predetermined overhead rate= 7.5*100
Predetermined overhead rate=$750 per direct labor
Therefore the predetermined overhead rate will be $750 per direct labor
Answer:
$259.35
Explanation:
The computation of the amount of cash paid is shown below:
= (Purchase value of merchandise - returned goods of merchandise - discount charges)
= ($9,100 - $455 - $259.35)
= $8,385.65
The discount charges is
= (Purchase value of merchandise - returned goods of merchandise) × discount rate
= ($9,100 - $455) × 3%
= $259.35
We simply applied the above formula
Answer:
are costs that do not vary with production or sales level
Explanation:
Fixed cost can as well be regarded as overhead cost they are expenses in the company that does not depends on the change in the amount of goods and services produced in the company. They are time- related cost such as
salaries, property taxes, interest as well as insurance. It should be noted that fixed costs are costs that do not vary with production or sales level
Answer:
Irrelevant to the decision of whether to discontinue the product line because they will not differ between alternatives.
Explanation:
Fixed costs can be defined as expenses that remain constant during a particular period of time, these costs does not change with an increase or reduction in the volume of production. Fixed costs tends to remain the same even when the organisation experiences a massive sale of their products in the market. Example of fixed costs include rent, loan.
Unavoidable fixed costs can be described as the costs incurred by a company during the introduction of the product into the market. This type of cost does not have the tendency to fluctuate when the production process is discontinued.
