Answer:
B, 195750
Explanation:
Let's first figure out the manufacturing overhead per direct labor hour
175500/13000= 13.5
So we allocate 13.5 in manufacturing overhead per direct labor hour
Let's the mulitply this by the number of actual direct labor hours
14500*13.5=195750
Answer:
a.$7.43 per machine hour
Explanation:
The computation of the single plant wide rate is shown below:
Single plant wide rate = Total overhead cost ÷ Machine hours
where,
Total overhead cost = $84,000 + $72,000 = $156,000
And, the machine hours is
= 1,000 units × 5 + 2,000 units × 8
= 5,000 + 16,000
= 21,000 machine hours
So, the single plant wide rate is
= $156,000 ÷ 21,000 machine hours
= $7.43 per machine hour
Answer:
$368,000
Explanation:
In order to appraise the property using the capitalization approach, we must first determine a net cash flow:
net cash flow = $48,000 - $3,600 - $15,000 = $29,400
Now we calculate the property value using the perpetuity formula:
property value = net cash flow / capitalization rate = $29,400 / 8% = $367,500 which we must round up to $368,000
A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, vacancy and credit losses of $3,600, and operating expenses of $15,000. Using a capitalization rate of 8%, what is the property's value (rounded up to the nearest $1,000)?
Answer:
$1,213,657.685
Explanation:
For computation of compounded future value first we need to find out the present worth which is shown below:-
= $88,172.32636
Now, Future value = Present worth × (1 + interest rate)^number of years
= $88,172.32636 × (1 + 6%)^45
= $1,213,657.685
Therefore we have applied the above formula to determine the future value.
Answer and Explanation:
The journal entries are shown below;
a. Accounts Payable $91,000
To Note Payable $91,000
(being the issuance of the note payable is recorded0
b Note Payable $91,000
Interest Expense $3,412.50 ($91,000 × 15% × 90 days ÷ 360 days)
To Cash $94,412.50
(Being the payment of the note is recorded)
These two entries should be recorded
