The balance sheet of Cattleman's Steakhouse shows assets of $86,000 and liabilities of $14,400. The fair value of the assets is
1 answer:
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Answer:
Part 1:
Single plant overhead rate=$17.44/hour
Part 2:
For Deluxe Model:
Overhead Cost=$43,600
For Basic Model:
Overhead Cost=$104,640
Explanation:
Part 1:
Single plant overhead rate for the year:
Single plant overhead rate for the year=Total expected Cost/direct labor hours
Total Expected Cost= Handling materials+Inspecting product +Processing purchase orders+Paying suppliers+invoices Insuring the factory +Designing packaging
Total Expected Cost=$625,000+$900,000+$105,000+$175,000+$300,000+$75,000
Total Expected Cost=$2,180,000
Direct labor hours= 125,000 hours
Single plant overhead rate=
Single plant overhead rate=$17.44/hour
Part 2:
For Deluxe Model:
Overhead Cost=Single plant overhead rate*Direct labor hours
Overhead Cost=$17.44/hour*2,500 hours
Overhead Cost=$43,600
For Basic Model:
Overhead Cost=Single plant overhead rate*Direct labor hours
Overhead Cost=$17.44/hour*6000 hours
Overhead Cost=$104,640
Answer:
Amount $55,386.92
Explanation:
We solve for the outstanding amount after July 1998 payment and then future value until Jan 1st 2005:
Beginning Payment Interest Carrying value
1995 40000 4000 44000
1996 44000 -5000 3900 42900
1997 42900 -5000 4290 42190
1998 42190 -5000 2109.5 39299.5
1998 39299.5 -10000 1964.975 31264.475
Now, we calculate the future value from Jan 1999 to Jan 2005:
Principal 31,264.48
time 6.00
rate 0.10000
Amount 55,386.92