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yuradex [85]
2 years ago
5

Why do companies use a predetermined overhead rate rather than an actual overhead rate?.

Business
1 answer:
Vinvika [58]2 years ago
7 0

Answer:

An actual overhead is not known until the end of the period

Explanation:

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Eastern Products, Inc. has an attractive package of fringe benefits that costs the company $4 for each hour of employee time (ei
hammer [34]

Answer:

$192 will be allocated to the direct labor cost while $8 will be allocated to manufacturing overhead.

Explanation:

Costs relating to idle time are part of the fringe benefits that are related to direct labor and they are parts of the benefits given to workers.

Idle time is the number of time in which workers are idle during the normal working hours or day. Some of the causes of idle time include defective materials, power outage, faulty machine, shortage of raw materials, and among others.

In cost accounting, idle time costs are not included in the direct labor costs but are considered as indirect labor costs. Idle time costs are therefore included in manufacturing overhead cost.

From the question,

Direct labor cost = (Number of hours worked by Robert – Idle hours) × hourly rate

Direct labor cost = (50 - 2) × $4

                            = 48 × $4

                            = $192  

Idle time cost = Idle time × hourly rate

                      = 2 × $4

                      = $8

Total cost = Direct labor cost + Idle time cost

                 = $192 + $8

                 = $200

Since idle time cost is considered as indirect labor cost and to be included in manufacturing overhead cost, $192 will be allocated to the direct labor cost while $8 will be allocated to manufacturing overhead.

All the best.

4 0
4 years ago
During the decade-long war in Iraq, the U.S. government spent two trillion dollars for military operations and reconstruction in
Y_Kistochka [10]
The correct option is A.
Fiscal policy refers to those government policies which are targeted at managing the economy by controlling tax, spending and federal budget.
Military spending are part of the federal budget that are prepared in US every year.<span />
3 0
3 years ago
Which of these is not a key element of the operations​ function?
Sidana [21]
Operation management refers to the task of managing the process that transforms resources into finished goods and services. The key elements of an operation system includes Inputs, processes and outputs. Inputs are the resources necessary to make the product, processes are action performed on the inputs to transform them into finished products while outputs are finished products that results when inputs are processed. Therefore, in this case regulation is not a key element in operation function.
6 0
4 years ago
Alguien para hablar estoy sola
solong [7]

Answer:

ummm hola! ¿Cómo va tu día y cómo estuvo tu descanso?

Explanation:

brainliest?

5 0
3 years ago
The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing mod
fenix001 [56]

Answer: See explanation

Explanation:

Your question is not complete. Here is the completed question:

The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing model, what is the risk premium?

The risk premium will be the difference between the market portfolio and the treasury bill rate. This will be:

= 10% - 6%

= 4%

8 0
3 years ago
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