1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vampirchik [111]
3 years ago
13

Schneider, Inc., had the following information relating to Year 1: Budgeted factory overhead: $74,800 Actual factory overhead: $

78,300 Applied factory overhead: $76,500 Estimated direct labor hours: 44,000 Actual direct labor hours: ? If Schneider decides to use the actual results from Year 1 to determine the Year 2 overhead rate, what is the Year 2 overhead rate?
Business
1 answer:
astraxan [27]3 years ago
7 0

Answer:

<u>The actual direct labor hours are 45,000.</u>

<u>The overhead rate for Year 2 is $1.74.</u>

Explanation:

Compute the actual direct labor hours:

\begin{aligned}\text{Actual direct labor hours}&=\dfrac{\text{Applied overheads}}{\text{Overhead rate}}\\&=\dfrac{\$76,500}{1.7}\\&=45,000\end{aligned}

<u>Therefore, the actual direct labor hours are 45,000.</u>

Compute the overhead rate for Year 2:

\begin{aligned}\text{Overhead rate}&=\dfrac{\text{Actual overheads}}{\text{Actual direct labor hours}}\\&=\dfrac{\$78,300}{45,000}\\&=1.74\end{aligned}

<u>Therefore, the overhead rate for Year 2 is $1.74.</u>

<u />

Working note:

Calculate the overhead rate for Year 1:

\begin{aligned}\text{Overhead rate}&=\dfrac{\text{Budgeted overheads}}{\text{Estimated direct labor hours}}\\&=\dfrac{\$74,800}{44,000}\\&=1.7\end{aligned}

You might be interested in
The large amount of advertising by firms such as Procter &amp; Gamble and Colgate-Palmolive promotes which of the following barr
Kobotan [32]

Answer:

C

Explanation:

product differentiation

4 0
3 years ago
Which of the following housing decisions provides a person with both
Lana71 [14]
C selling a share in cooperative
3 0
3 years ago
Read 2 more answers
Roger is an executive of a multinational tractor manufacturing company. while representing the company at conferences and meetin
cricket20 [7]

This communication style is called <u>"leadership storytelling".</u>

Storytelling is a key leadership technique since it's fast, intense, free, normal, reviving, stimulating, community, convincing, all encompassing, engaging, moving, significant and true. Stories enable us to understand associations.  

Storytelling is in excess of a fundamental arrangement of apparatuses to complete things: it's a route for pioneers – wherever they may sit – to exemplify the change they look for.

3 0
3 years ago
What is at saturated market like for sellers?
garri49 [273]

The meaning of being saturated or reaching the point of saturation in the business terms is the time in which a market does not generate any more demand for a certain market. This may be due to increase competition, decrease need or the product became unusable. For sellers, saturation means two things, first is that this is the chance for you to give your business a makeover. You can level up your products or service or try a new strategy for your business. The endpoint is that you need to diversify so that the customers will not get tired of the same product of service all over again. If you observed that with all the things you possibly did to keep the product or service growing, you haven't seen any change the market demand then the second thing you may want to do is to stop your business because it will only be a waste of time, research and money.
5 0
3 years ago
Bond X is noncallable and has 20 years to maturity, an 11% annual coupon, and a $1,000 par value. Your required return on Bond X
stira [4]

Answer:

You should be willing to pay $984.93 for Bond X

Explanation:

The price of a bond is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are to be paid annually and the proceeds from the sale of the bond at the end of year 5.

During the 5 years, there are 5 equal periodic coupon payments that will be made. Given a par value equal to $1,000 and a coupon rate equal to 11% the annual coupon paid will be 1,000*0.11 = $110. This stream of cash-flows is an ordinary annuity.

The  PV of the cash-flows = PV of the coupon payments + PV of the value of the bond at the end of year 5

Assuming that at the end of year 5 the yield to maturity on a 15-year bond with similar risk will be 10.5%, the price of the bond will be equal to :

 110*PV Annuity Factor for 15 periods at 10.5%+ $1,000* PV Interest factor with i=10.5% and n =15

= 110*\frac{[1-(1+0.105)^-^1^5]}{0.105}+ \frac{1,000}{(1+0.105)^1^5}=$1,036.969123

therefore, the value of the bond today equals

110*PV Annuity Factor for 5 periods at 12%+ $1,036.969123* PV Interest factor with i=12% and n =5

= 110*\frac{[1-(1+0.12)^-^5]}{0.105}+ \frac{1,036.969123}{(1+0.12)^5}=$984.93

5 0
3 years ago
Other questions:
  • Graphical Designs is offering 20-20 preferred stock. The stock will pay an annual dividend of $20 with the first dividend paymen
    7·1 answer
  • What are three conditions for bacteria growth and reproduction ?
    15·2 answers
  • Sanchez Company's output for the current period was assigned a $419,000 standard direct labor cost. The direct labor variances i
    15·1 answer
  • Longley Trucking is issuing a 20-year bond with a $2,000 face value tomorrow. The issue is to pay an 8% coupon rate, because tha
    6·1 answer
  • Which business model sells goods or services to buyers who then resell or use them for business purposes?
    9·1 answer
  • Motorsports, Inc. had a predetermined overhead rate of $2 per direct labor hour. The direct labor hours were estimated to be 25,
    6·1 answer
  • Mighty Corporation manufactures end tables. Each end table requires .50 direct labor hours in its production. Mighty Corporation
    8·1 answer
  • Becca, an office manager for a small construction company, met with representatives from Xerox and Minolta, along with the presi
    6·1 answer
  • The ledger of Shamrock, Inc. on March 31, 2022, includes the following selected accounts before adjusting entries.
    10·1 answer
  • You have obtained a sub-sample of 1744 individuals from the Current Population Survey (CPS) and are interested in the relationsh
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!