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pochemuha
4 years ago
14

Souza Corporation Corporation is considering an investment in equipment for $75,000 with a four-year life and no salvage value.

Souza uses the straight-line method of depreciation and is subject to a 35 percent tax rate.
Over the life of the project, the total tax shield created by depreciation is:
Business
1 answer:
Aleks04 [339]4 years ago
6 0

Answer:

$26,250

Explanation:

The computation of the total tax shield created by depreciation is shown below:

= Investment in equipment × tax rate

= $75,000 × 35%

= $26,250

We simply multiplied the investment in equipment and the tax rate so that total tax could be computed. Hence, we consider all the items which are mentioned in the question

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GarryVolchara [31]

Answer:

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Explanation:

Data provided

Standard variable rate = $9.20

Direct labor hours = 1,160

Variable manufacturing overhead costs = $14,761

The computation of variable overhead rate variance is shown below:-

Variable overhead rate variance = (Standard variable rate - (Variable manufacturing overhead costs ÷ Direct labor hours)) × Direct labor hours

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= ($9.20 - $12.725) × 1160

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Therefore for computing the variable overhead rate variance we simply applied the above formula.

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Svetllana [295]

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4 0
2 years ago
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gogolik [260]
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