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Scrat [10]
3 years ago
13

Lawler Manufacturing Company expects annual manufacturing overhead to be $810,000. The company also expects 45,000 direct labor

hours costing $1,350,000 and machine run time of 20,250 hours. Calculate predetermined overhead allocation rates based on direct labor hours, direct labor cost, and machine time. (Round direct labor cost to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)
Business
1 answer:
8_murik_8 [283]3 years ago
7 0

Answer:

A. Overhead allocation rates based on direct labour hours = $18 per direct labour hour

B. Overhead allocation based on direct labour cost = 0.6

C. Overhead allocation rates based on machine time = $40 per machine time hour

Explanation:

Here, we are interested in having some calculations done; We proceed as follows;

From the question, the total overhead = 810,000

Mathematically;

a. The overhead allocation rates based on direct labour hours = Amount of total overhead/Total direct labour hours

= 810,000/45,000 = $18 per direct labour hour

b. The overhead allocation based on direct labour cost = Amount of total overhead / Total direct labour costs

= 810,000/1,350,000 = 0.6

C. Overhead allocation based on Machine time = Amount of total overhead/total machine time hours = 810,000/20,250 = $40 per machine time hour

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David has purchased an investment that he expects to produce an annual cash flow of​ $3,000 for five years. He requires an​ 8% r
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Let's consider the effects of inflation in an economy composed of only two people: Bob, a bean farmer, and Rita, a rice farmer.
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Answer:

See below.

Explanation:

Lets first calculate inflation using the formula for Consumer Price Index

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D)

Bob and Rita are more concerned with their rate of exchange which is the change in real terms. As long as the changes are proportional and there are no third actors in the economy model, the 2 agents are not affected at all. What matters to them is their transnational rate and not inflation on the whole in this case.

Hope that helps.

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