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Gala2k [10]
2 years ago
10

Steeler Towel Company estimates its overhead to be $203,000. It expects to have 58,000 direct labor hours costing $1,015,000 in

labor and utilizing 14,500 machine hours. Calculate the predetermined overhead rate using: Round your answers to two decimal places. A. Direct labor hours $fill in the blank 1 per direct labor hour B. Direct labor dollars $fill in the blank 2 per direct labor dollar C. Machine hours $fill in the blank 3 per machine hour
Business
1 answer:
Ber [7]2 years ago
5 0

Answer and Explanation:

The computation of the predetermined overhead rate in the following cases are shown below:

As we know that

Predetermined overhead rate = Estimated overhead ÷ activity level

1.

= $203,000 ÷ 58,000

= $3.50 per direct labor hour

2.  

= $203,000 ÷ $1,015,000

= $0.20 per direct labor dollar

3.

= $203,000 ÷ 14,500

= $14.00 per machine hour

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​(Perpetuities​) What is the present value of the​ following? a. A ​$ perpetuity discounted back to the present at percent b. A
mrs_skeptik [129]

Answer:

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a. Present value of $400 perpetuity discounted at 15%

= 400 / 0.15

= $2,666.67

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2 years ago
Superstition Industries has a $2,000,000 asset investment and is subject to a 30% income tax rate. Cash inflows from the project
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Answer:

12.25%

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Using this formula

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