Answer:A
Explanation: i did the test
Answer:
a. $17.44 per hour
b. $43,600 ; $104,640
Explanation:
The computation is shown below:
a. Single plantwide overhead rate equals to
= Total Overhead Amount ÷ Budgeted Direct Labor Hours
where,
Total overhead amount is
= $625,000 + $900,000 + $105,000 + $175,000 + $300,000 + $75,000
= $2,180,000
And, the budgeted direct labor hours is 125,000
So, the overhead rate is
= $2,180,000 ÷ 125,000
= $17.44 per hour
2. Now the overhead cost is
For Deluxe model
= 2,500 direct labor hours × $17.44 per hour
= $43,600
For basic model
= 6,000 direct labor hours × $17.44 per hour
= $104,640
Answer:
If the present bus is repaired, the present value of the annual cash operating costs associated with this alternative is calculated as follows;
Total overhead costs
3000000+1500000=4500000
Total direct labor hours
10000+15000=25000 hours
Predetermined oH rate
4500000÷25000=180
Overhead applied to regular
180×10000 h =1800000...answer