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amid [387]
2 years ago
11

Bolander Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.

The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours 70,000
Total fixed manufacturing overhead cost $294,000
Variable manufacturing overhead per machine-hour $2.30
Recently, Job M825 was completed with the following characteristics:
Number of units in the job 20
Total machine-hours 80
Direct materials $665
Direct labor cost $1,840
The predetermined overhead rate is closest to:

a. $8.80 per machine-hour
b. $6.50 per machine-hour
c. $2.30 per machine-hour
d. $4.20 per machine-hour
Business
1 answer:
leonid [27]2 years ago
5 0

Answer:

b. $6.50 per machine-hour

Explanation:

The computation of the predetermined overhead rate is

= Total fixed manufacturing overhead cost ÷ Total machine-hours + Variable manufacturing overhead per machine-hour

= $294,000 ÷ 70,000 + $2.30

= $4.20 + $2.30

= $6.50 per machine-hour

Therefore, all the other information that is given are irrelevant. Hence, ignored it

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Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the c
puteri [66]

Answer:The product margin for product M5 is $7,385

Explanation:

To calculate the product margin for product M5,

Processing 3,870 ÷ 9,000

= 0.43 per MH

Supervising 25,000 ÷ 1,000

= $25 per batch

To calculate the overhead cost for product M5

Processing 0.43 per MH × 500

= $215

Supervising $25 per batch × 500 batches

= $12,500

Total = $12,500 + $215

= $12,715

To calculate the product margin for product M5 under activity based costing

$

Sales. 95,400

Less:

Direct materials 32,500

Direct Labour 42,800

----------------

Prime Cost. 75,300

Add: Overhead 12,715

----------------

Total Cost of production. 88,015

-----------------

Product Margin. 7,385

------------------

4 0
2 years ago
Risks commonly considered to understand project financing are:
Alex17521 [72]

Construction and completion risk, political and regulatory risk and expropriation and nationalization Risk, and environmental risk.

7 0
2 years ago
Read 2 more answers
Tile Depot, specializing in retail of construction materials, carries a popular flooring tile. The annual demand is estimated to
MissTica

Answer:

d.$500

Explanation:

Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.

As per given data

Annual Demand = 5,000 cases

Ordering cost = $250

Carrying cost = $10

EOQ =  \sqrt{\frac{2 X S X D}{H} }

EOQ = \sqrt{\frac{2 X 250 X 5,000}{10} }

EOQ = 500

4 0
1 year ago
Read 2 more answers
Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D0 =
Illusion [34]

Answer:

9.5%

Explanation:

The formula to compute the cost of common equity under the DCF method is shown below:

= Current year dividend ÷ price + Growth rate

In first case,  

The current dividend would be  

= Last year dividend + last year dividend × growth rate

= $0.80 + $0.80 × 8%

= $0.80 + $0.064

= $0.864

The other things would remain the same

So, the cost of common equity would be

= $0.864 ÷ $57.50 + 8%

= 0.015026 + 0.08

= 9.5%

6 0
2 years ago
b. Suppose that the Fed's FX reserves increase by 40 million zees as a result of the decline in demand. How many millions of dol
lana66690 [7]

Answer:

You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.

Explanation:

The Zeeons will respond to the lower U.S interest rates by decreasing their investment in the USA as the rate of return is low. Thus, this will decrease the supply of zees in the foreign exchange market.

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2 years ago
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