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Oliga [24]
3 years ago
10

Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of st

andard direct labor-hours. The budgeted variable manufacturing overhead is $2 per direct labor-hour and the budgeted fixed manufacturing overhead is $480,000 per year. The standard quantity of materials is 3 pounds per unit and the standard cost is $7 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12 per hour. The company planned to operate at a denominator activity level of 60,000 direct labor-hours and to produce 40,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual number of units produced 42,000 Actual direct labor-hours worked 65,000 Actual variable manufacturing overhead cost incurred $ 123,500 Actual fixed manufacturing overhead cost incurred $ 483,000 Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements.
Business
1 answer:
katrin2010 [14]3 years ago
6 0

Answer:

$8 per direct labor hours and $2 per direct labor hours

Explanation:

The computation of the predetermined overhead rate is shown below:

Predetermined overhead rate = Budgeted fixed manufacturing overhead ÷ planned activity level

= $480,000 ÷ 60,000 direct labor hours

= $8 per direct labor hours

And, the budgeted variable manufacturing overhead is $2 per direct labor hours

We simply divide the budgeted fixed manufacturing overhead by the planned activity level

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2 years ago
Floyd Industries stock has a beta of 1.30. The company just paid a dividend of $.30, and the dividends are expected to grow at 4
CaHeK987 [17]

Answer:

a. Cost of Equity is 4.50%

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Explanation:

a.

The formula for price of a stock using the constant growth model of the DDM approach is,

P0 = D0 * (1+g) / r - g

Plugging in the available values,

62 = 0.3 * (1+0.04)  /  (r - 0.04)

62 * (r - 0.04) = 0.312

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r = 2.792 / 62

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b.

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Plugging in the values,

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3 years ago
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B

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AlexFokin [52]

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