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3 years ago

Straight-Line Depreciation Rates

Business

1 answer:

MissTica3 years ago

4 0

Answer:

a) 10%

b) 12.5%

c) 4%

d) 2.5%

e) 20%

f) 25%

g) 5%

Explanation:

10 years depreciation results in a depreciation rate per year = 100% / 10 = 10%

8 years depreciation results in a depreciation rate per year = 100% / 8 = 12.5%

25 years depreciation results in a depreciation rate per year = 100% / 25 = 4%

40 years depreciation results in a depreciation rate per year = 100% / 40 = 2.5%

5 years depreciation results in a depreciation rate per year = 100% / 5 = 20%

4 years depreciation results in a depreciation rate per year = 100% / 4 = 25%

20 years depreciation results in a depreciation rate per year = 100% / 20 = 5%

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The total overhead variance is the difference between actual overhead costs and budgeted overhead costs. True False

disa [49]

The difference between the realized overheads and the estimated overheads is the total overhead cost.

<h3>What are total overhead costs?</h3>

Total overhead costs are identified as the costs related to administration, sales, marketing, and production. Before the total overhead costs are realized, a budget regarding estimated costs is prepared.

The calculation of the total overhead costs is actual overhead costs less the budgeted overhead costs.

Hence, the aforementioned statement regarding total overhead costs holds true.

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2 years ago

Turrubiates Corporation makes a product that uses a material with the following standards:________. Standard quantity 6.5 liters

Marina86 [1]

Answer:

Direct material quantity variance= $810 unfavorable

Explanation:

Giving the following information:

Standard quantity 6.5 liters per unit Standard price $1.00 per liter

Actual production was 2,400 units.

The company used 16,410 liters of direct material to produce this output.

<u>To calculate the direct material quantity variance, we need to use the following formula:</u>

<u></u>

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 6.5*2,400= 15,600

Direct material quantity variance= (15,600 - 16,410)*1

Direct material quantity variance= $810 unfavorable

7 0

3 years ago

American Hardware, a national hardware chain, is considering purchasing a smaller chain, Eastern Hardware. American's analysts p

Travka [436]

Answer:

The maximum price per share that American should offer is $18.13 per share

Explanation:

The computation of the maximum price per share is shown below:

= Present value ÷ Number of outstanding shares

= $72.52 million ÷ 4 million shares

= $18.13 per share

For computing the maximum price, we used the present value and the discount rate is irrelevant in the computation part. Hence, it is ignored plus the current price is also ignored.

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3 years ago

Schager Company purchased a computer system at a cost of $60,000 on 1/1/2019. The estimated useful life is 8 years, and the esti

MaRussiya [10]

Answer:

$11,250

Explanation:

The computation of depreciation expense for the second year is given below:-

Double declining rate = 1 ÷ 8 × 2

= 25%

Here, for computing the depreciation for 2nd year we need to first calculate the 1st year of depreciation.

Depreciation for the 1st year = Purchase cost × Double declining rate

= $60,000 × 25%

= $15,000

Depreciation for the 2nd year = (Purchase cost - Depreciation for the 1st year) × Double declining rate

= ($60,000 - $15,000) × 25%

= $45,000 × 25%

= $11,250

3 0

2 years ago

"The predetermined manufacturing overhead rate for the year was 140% of direct labor cost; employees were paid $21.00 per hour.

enot [183]

Answer:

The estimated manufacturing overhead was $482,160

Explanation:

In order to calculate this, we have to find the total labor cost, and calculate 140% of that cost. This is shown below;

employees cost per hour = $21.00

Number of labor hours = 16,400

Therefore, total employee costs = cost per hour × total hours

= 21 × 16,400 = $344,400

Next, we are told that the manufacturing overhead is 140% of the direct labor cost;

140% = 140/100 = 1.4

Therefore, 140% of direct labor cost = 1.4 × 344,400 = $482,160

3 0

3 years ago