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MAXImum [283]
3 years ago
12

Which of the following statements are true concerning the predetermined overhead rate when the direct labor-hour requirement for

the Deluxe model dropped from 5 hours to 2 hours?
a. The predetermined overhead rate decreases because the total estimated overhead cost increased.
b. The predetermined overhead rate decreased because the total direct labor-hours dropped.
c. The predetermined overhead rate increased because the total estimated overhead cost increased.
d. The predetermined overhead rate increased because the total direct labor-hours dropped.
Business
1 answer:
In-s [12.5K]3 years ago
6 0

Answer: The predetermined overhead rate increased because the total direct labor-hours dropped

Explanation:

The predetermined overhead rate refers to an allocation rate which is used in applying the estimated manufacturing overhead cost to the cost objects for a particular reporting period.

When there's reduction in the direct labor-hour requirement from 5 hours to 2 hours, the predetermined overhead rate increased because the total direct labor-hours dropped

The predetermined overhead rate is calculated as the total overhead cost divided by the machine hour. Therefore, if there's reduction in the direct labor hour rate, then there will be a rise in the predetermined overhead rate.

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HELP
stepladder [879]

Answer:

What is the article tho? U can take a picture of the article and send it here so I can try and help you

5 0
3 years ago
Department S had no work in process at the beginning of the period. It added 12,200 units of direct materials during the period
galben [10]

Answer:

Cost of completed units = $158,240

Explanation:

<em>Cost of completed units = Cost per equivalent unit × no of units</em>

<em>Equivalent unit = Degree of completion × units of work</em>

<em>Equivalent units of material</em>

( 9200× 100%)   + (3000×100%) = 12,200 unit

Cost per equivalent unit of material = $97,600/12,200 units= $8

<em>Equivalent units of labour and overhead</em>

(9200× 100%) + (3000× 25%) = 750

Cost per equivalent unit of labour and overhead

=( 73,630+17910)/9950 =$9.2

Cost of completed units

= $(9.2+8)× 9,200 = 158,240

Cost of completed units = $158,240

5 0
3 years ago
All of the following are necessary to calculate the total purchase price for a municipal bond traded on a yield basis in the sec
ahrayia [7]

Answer: The response options are wrong, those that correspond according to what I found on the internet are:

All of the following are necessary to calculate the total purchase price for a Municipal bond traded on a yield basis in the secondary market EXCEPT:

A. Coupon rate

B. Yield to Maturity

C. Dated date

D. Trade date

<u>The correct answer is "C. Dated date".</u>

<u>Option "C" is correct because to calculate the price of a bond it is not necessary the day of issuance of the bond, is enough with its YIELD TO MATURITY, RATE CUPON AND YEARS TO MATURITY.</u>

7 0
3 years ago
The net income reported on the income statement is $58,000. However, adjusting entries have not been made at the end of the peri
nlexa [21]

Answer:

The corrected Net income = $54,500                      

Explanation:

Net income is defined as the total profits earned by an individual from a business venture. It is equal to the difference between the gross income and the expenses involved including cost of supplies and accrued salaries.

Given: net income = $58,000

Entries not made include supplies expense = $2,200 and accrued salaries = $1,300

Therefore, the corrected net income = net income - expenses = $58,000 - ($2,200 + $1,300) = $54,500    

8 0
3 years ago
Miltmar Corporation will pay a year-end dividend of $3, and dividends thereafter are expected to grow at a constant rate of 5% p
motikmotik

Part a: The market capitalization rate is 9.25%

Part b: The intrinsic value of the stock is $70.59

Market capitalization rate is another name for the stock's required rate of return. It is called the market capitalization rate because we can infer it by observing the market value of the stock. One way to find this rate is the capital asset pricing model (CAPM).

Part a:

Let,

r = market capitalization rate

f = risk free rate = 5%

m = return on the market = 10%

We can find the market capitalization rate with the help of the capital asset pricing model (CAPM),

r=f+\beta *(m-f)\\ r=0.05+0.85*(0.1-0.05)\\ r=9.25\%\\

The market capitalization rate is 9.25%.

Part b:

Let,

D be the dividend expected = $3

r be the interest rate = 9.25%

g = growth rate of dividends = 5%

The price is given by the dividend growth model:

Price=\frac{D}{r-g}\\ Price=\frac{3}{0.0925-0.05}\\ Price=\$70.59\\

The intrinsic value of the stock is $70.59

Learn more about CAPM:

brainly.com/question/15548553

#SPJ4

8 0
1 year ago
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