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Alexus [3.1K]
3 years ago
15

Luthan Company uses a plantwide predetermined overhead rate of $23.20 per direct labor-hour. This predetermined rate was based o

n a cost formula that estimated $278,400 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $269,000 and 12,100 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
Business
1 answer:
Phantasy [73]3 years ago
6 0

Answer:

Manufacturing overhead cost applied=  $280,720

Explanation:

Giving the following information:

Plantwide predetermined overhead rate of $23.20 per direct labor-hour.

Estimated $278,400 of total manufacturing overhead cost.

Estimated activity level of 12,000 direct labor-hours.

The company incurred actual total manufacturing overhead costs of $269,000 and 12,100 total direct labor-hours during the period.

Manufacturing overhead cost applied= actual direct labor hours* predetermined overhead rate

Manufacturing overhead cost applied= 12100* 23.20= $280,720

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The median age for u.s. blacks currently is 30.9 years; for u.s. whites it is 42.3 years. (a) based upon this information, give
Marrrta [24]

There are quite a few reasons that this difference could be observed. The lower black median age could be connected to the greater number of births in the black minority group than in the whites. Another reason could be the aging of the non-Hispanic white group to a post child-bearing age and consequently the general aging of this subgroup of the population. In general, differences in group medians are due to the distribution of ages and the observed range of the ages in the two dissimilar population groups.

7 0
3 years ago
Financial data for Stirling Inc. for last year are as follows:
Tom [10]

Answer:

profit margin: 6.04%

Assets turnover: 2.08

ROI 25.89%

Residual Income 137,330

Explanation:

<u><em>profit margin:</em></u>

income/sales = 326,480/5,404,000 = 0.060414507 = 6.0414507%

<u><em>Assets turnover:</em></u>

\frac{net \: sales}{average \: assets} \\\\where:\\average \: assets = \frac{ending + beginning}{2}

(2,561,000 + 2,629,000)/2 = 2,595,000 average assets

5,404,000/2,595,000 = 2.082466281 Assets TO

<u><em>ROI</em></u>

\frac{net \: income}{average \: equity} \\\\where:\\average \: equity= \frac{ending + beginning}{2}

(1,206,000+1,316,000)/2 = 1,261,000 average equity

326,480/1,261,000 = 25.890563%

<u>Residual Income:</u>

current income - income at desired RoR

That means calculate which income generates a ROI of 15% which is the minimum required return:

ROI = income / equity = 0.15

X/1,261,000 = 0.15

X=1,261,000 x 0.15 = 189,150

Now we calculate the diference between this number and the current income.

326,480 - 189,150 = 137,330 Residual Income

8 0
3 years ago
The common stock of sweet treats is valued at $10.80 a share. the company increases its dividend by 8 percent annually and expec
N76 [4]
Using the Gordon Growth Model (a.k.a. Dividend Discount Model), the intrinsic value of a stock can be calculated, exclusive of current market conditions. In this model, the value of the stock is equated to the present value of the stock's future dividends. 

<span>Value of stock (P0) = D1 / (k - g)

</span>where
D1<span> = </span><span>expected annual </span>dividend<span> per share in the following year </span>
<span>k = the investor's discount rate or required </span>rate of return
g = the expected dividend growth rate 

<u>From the problem:</u>
The value of stock is $10.80
D1 is $0.40
g is 0.08

k is unknown

Solution:
Rearranging the equation for Gordon Growth Model to solve for k:

k = (D1/P0) + g

Substituting the variables with the given values, 

k = (0.40/10.80) + 0.08
k = 0.1170

In percent form, this is
0.1170 * 100% = 11.70%.

Thus, the total rate of return on the stock is 11.70%.
3 0
3 years ago
Consider the following statement about real options: Decision tree analysis is more commonly used in valuing securities than rea
maksim [4K]

Answer:

Flexibility option

Explanation:

False: It can be used equally for both.

Firms often have an option to vary inputs to the production or change the output from production. Such options are known as flexible production options.\  real option to expand.

7 0
3 years ago
Please help solve: Suppose that initially the money supply is $1 trillion , the price level equals 3, the real GDP is $5 trillio
topjm [15]
The new price level after the increase in the money supply is 3.3. Therefore, the percentage increase in the money supply is 10%. The percentage change in the price level is 10%. Percentage change in the money supply is the same as the percentage change in the price level.
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3 years ago
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