Which of the following mathematical equations is used to calculate a predetermined overhead rate? a.Predetermined Overhead Rate
1 answer:
Answer:
d. Predetermined Overhead Rate = Estimated Annual Overhead / Estimated Annual Activity Level
Explanation:
Predetermined Overhead rate is based on the estimated activity level, based on the estimated annual activity cost.
It calculates the rate per hour for the activity or overheads to be charged.
After the actual overheads are incurred the calculation of overheads over-applied, or under-applied is done, based on actual hours predetermined overhead hours.
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Answer:
The present worth of aircraft = $29137.82
Explanation:
Given the cost of money (r ) = 10%
The initial cost of small aircraft = $35000
Annual repair and maintenance costs (A) = $20000
Salvage valaue = $10000
Now calculate the present value of aircraft by adding the initial cost of annual maintenance and salvage value and subtracting the initial cost.