A three-year bond has an 8.0 percent coupon rate and a $1,000 face value. If the yield to maturity on the bond is 10 percent, ca
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Answer:
The right solution is "$ 2.50 per DLH".
Explanation:
The given values are:
Rent,
= $ 15,000
Factor equipment's depreciation,
= $ 8,000
Indirect labor,
= $ 12,000
Production supervisor's salary,
= $ 15,000
Estimated DLHs,
= 20,000
The total manufacturing overhead will be:
= On substituting the given values, we get
=
= ($)
Now,
The predetermined overhead rate will be:
=
= ($)