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Dahasolnce [82]
3 years ago
8

Anton believes his company's overhead costs are driven (affected) by the number of machine hours because the production process

is heavily automated. During the period, the company produced 3,000 units of Product A requiring a total of 100 machine hours and 2,000 units of Product B requiring a total of 25 machine hours. What allocation rate should be used if the company incurs overhead costs of $10,000?
(A) $2 per unit
(B) $2 per machine hour
(C) $80 per unit
(D) $80 per machine hour
Business
1 answer:
bekas [8.4K]3 years ago
6 0

Answer:

overhead rate = $80 per machine hour

so correct option is (D) $80 per machine hour

Explanation:

given data

Product A produced = 3,000 units

Product A requiring total = 100 machine hours

Product B produced = 2,000 units

Product B requiring total = 25 machine hours

overhead costs = $10,000

to find out

allocation rate

solution

first we get here total machine hours required that is express as

total machine hours required = 100 hours + 25 hours

total machine hours required = 125 hours

and total overhead cost is = $10000

so here production system heavily automate

so that overhead allocation rate is base on machine hour

and overhead allocation rate will be as

overhead rate = \frac{10000}{125}

overhead rate = $80 per machine hour

so correct option is (D) $80 per machine hour

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Answer:

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Explanation:

Cost of debt refers to the total cost a company incurs for raising debt which includes fixed coupon rate payments to bondholders.

Cost of debt is calculated using the following formula:

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when NP is taken as the base, while calculating cost of debt, it is termed as effective interest rate.

So, bond issue costs reduce the net proceeds and thus, increase the effective interest rate of borrowing for the issuer company.

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Answer:

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Explanation:

Giving the following information:

Fulbright Corp. uses the periodic inventory system.

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