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777dan777 [17]
3 years ago
6

The cost accountants at the Doering Company regressed total overhead costs and direct labor hours for the past 30-months and rep

orted the following results: Slope = $ 41.27 Intercept = $ 596.36 Correlation coefficient = .934 What is the estimated overhead cost if 225 direct labor hours are expected to be used in the upcoming period? (rounded to the nearest whole dollar)
Business
1 answer:
taurus [48]3 years ago
7 0

Answer:

The estimated overhead cost if 225 direct labor hours are expected to be used in the upcoming period is $9,882.11

Explanation:

In order to calculate the estimated overhead cost if 225 direct labor hours are expected to be used in the upcoming period we would have to make the following calculation:

Cost for 225 direct labor hours = Intercept + Slope*225

Cost for 225 direct labor hours=$596.36+ ($41.27*225)

Cost for 225 direct labor hours=$9,882.11

The estimated overhead cost if 225 direct labor hours are expected to be used in the upcoming period is $9,882.11

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3 0
3 years ago
Taco Hut purchased equipment on May 1, 2018, for $15,000. Residual value at the end of an estimated 8-year service life is expec
densk [106]

Answer:

2018: 8 months

Depreciation= $916,67

2019: full year

Depreciation= $1375

Explanation:

Giving the following information:

Taco Hut purchased equipment on May 1, 2018.

Price:  $15,000.

Residual value: $4,000

Useful life: 8 year

We need to calculate the depreciation for 2018 and 2019 using straight-line method:

Depreciation= (purchase price- residual value)/useful life

Depreciation= (15000-4000)/8= $1375

2018: 8 months

Depreciation=(1375/12)*8= 916,67

2019: full year

Depreciation= $1375

7 0
4 years ago
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kicyunya [14]
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6 0
4 years ago
A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years. What is the amount
Alla [95]

Answer:

$18,750

Explanation:

The double declining method of depreciation (DDB) formula is:

DDB= 2 * Cost of the asset * Depreciation rate (DR)

DR= (1/useful life)*100

For this problem:

Value to depreciate: $75,000

DR= (1/4)*100= 25%

DEPRECIATION YEAR 1: DDB= 2 * $75,000*25%= $37,500

Machine´s value year 1: $75,000-$37,500= $37,500

DEPRECIATION YEAR 2: DDB= 2*37,500*25%= $18,750

4 0
3 years ago
On January 1, a company borrowed $50,000 cash by signing a 7% installment note that is to be repaid in 5 annual end-of-year paym
Andreas93 [3]

Answer:

Please see attachment

Explanation:

Please see attachment

3 0
4 years ago
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