The company is trying to determine whether to lease or buy new equipment that can be bought for $35,000. The equipment will need servicing every year if purchased. The PVCCATS, the PV of lease payments before tax, the PV of salvage value, the PV of lease payments tax shield, and the PV of annual service costs after tax are all factors to consider in making the decision.
The cost of purchasing the new equipment is $35,000. It has a salvage value of $8,000 and requires yearly maintenance, which will cost $3,000 per year. If the equipment is leased, it will cost $39,000 in lease payments before tax, but there will be a $18,000 tax shield.
The present value of the cost of capital is $10,000.In this case, the net present value of purchasing is -$16,022.83. Therefore, the present value of buying is -$16,022.83.
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if you need to add a factual statement or business detail to the sales contract for which a trec-promulgated form does not already exist, in which paragraph can you add it?
If there isn't a TREC-promulgated form for a factual or business item that has to be added to the sales contract, you can add it under Special Provisions Paragraph 11.
Texas Real Estate Commission is the name of the state regulating organization. A state-level organization of real estate license holders, TR stands for Texas Realtors®. Nine people are appointed by the governor to the six-year tenure on the Texas Real Estate Commission. There must be six real estate brokers on the board. Three members must be from the general public who are not subject to Commission regulation. The main duties of TREC are to set the guidelines for ethical conduct in scientific research. As an illustration, commitment to ethical norms to safeguard the welfare, rights, and respect of study participants. Yes. Public usage of the contract forms is permitted. However, licensed real estate brokers or sales agents who have received training in their proper use are primarily meant for using TREC contract forms. A contract that cannot be enforced due to an error in the use of a form may incur financial damage.
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Five hair stylists at a salon perform 12 haircuts in two hours. One of the stylists,
Francesca, is leaving the salon after 10 years. Francesca usually performs 2
haircuts per hour. Which of the answer choices is correct?
The salon's average product of labor will decrease when Francesca leaves the salon in the given circumstances.
How is the average product of labor determined?The average product of labor (APL) gauges the typical output of each employee. The total product is simply divided by the workforce. The total output of labor divided by the quantity of workers employed, or Q/L, yields the average product of labor (APL). A popular metric for assessing labor productivity is the average product of labor.
The form of the AP curve on the left suggests that as more workers are hired, AP initially increases to a maximum before decreasing. The average output (or products) that each input produces is referred to as an "average product", factors of production like labor and land.
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if you buy a $10,000 U.S. Treasury bond ('T note') with a 2.5% coupon rate that pays semi-annually, what will be your yield after the first six months? what will your par value be when it matures?
Answer: The U.S. Treasury Series I Savings Bonds are 30-year instruments whose interest rate is reset every six months and are a way to help protect one from inflation. The rate is a combination of an inflation calculation over a six-month timeframe and a fixed rate determined by the Treasury Secretary. With inflation increasing this year to multi-decade highs, the inflation calculation for I Bonds bought until April 30, 2022, pay 7.12% for six months.
Explanation: i hope this helps :)
suppose that eighteen-month and 21-month zero-coupon bonds ($1 face values) are trading at 0.94 and 0.93, respectively? what is the eighteen-month forward price of the three-month rate?
The approximate eighteen-month forward price of the three-month rate is 1.45.
To calculate the eighteen-month forward price of the three-month rate, we can use the formula:
Forward Price = (1 + Spot Price of 21-month bond) / (1 + Spot Price of 18-month bond)^(18/12)
Given the spot prices of the 21-month and 18-month bonds as 0.93 and 0.94, respectively, we can substitute these values into the formula:
Forward Price = (1 + 0.93) / (1 + 0.94)^(18/12)
Calculating this expression:
Forward Price = 1.93 / 1.94^(1.5)
Using a calculator:
Forward Price ≈ 1.93 / 1.332Forward Price ≈ 1.45
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You deposit $1,500 in a bank where you have a savings account. The bank
pays you an interest of 5% per month. But later, the bank reduces the
interest rate from 5% to 3%, and that reduces your interest earnings from
$75 to $45.
What kind of risk explains the given situation?
a.) $2894.71
b.) $2202.72
c.) $2330.20
d.) $2654.23
The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. How many cords of wood would he have to split with this machine to break even
Answer:
The correct answer is "2000 units".
Explanation:
Given:
Fixed cost,
F = $50,000
Variable cost,
VC = $100 per unit
Price,
P = $125 per unit
Let the units to be sold be "x".
Throughout the case of breakeven,
⇒ \(Total \ revenue=Total \ cost\)
⇒ \(125x=50000+100x\)
On subtracting "100x" from both sides,
⇒ \(125x-100x=50000+100x-125x\)
⇒ \(25x=50000\)
⇒ \(x=\frac{50000}{25}\)
⇒ \(=2000 \ units\)
during most of the 1900s, the de beers group of south africa was viewed as a monopoly because it controlled a large percentage of diamond production and sales. t or f
The statement that the De Beers group of South Africa was viewed as a monopoly for most of the 1900s is True.
What is a Monopoly ?A monopoly is a market arrangement where one producer or seller holds a disproportionate amount of power within a certain market. Monopolies are forbidden in free-market economies as they limit customer alternatives and impede competition.
In the 1900s, the De Beers group controlled over 70 % of the entire trade in diamonds around the world. They could influence prices and control the market, thereby making them a monopoly.
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Is eating a tomato bias?
Answer:
hindi ko po maintindihan ang tinatanong nyo
Explanation:
sa susunod po kumpletuhin nyo para masagut ko ang tanong mo
to create a system of rewards and incentives that promotes good strategy execution and timely achievement of imporant outcomes, a company must
squish....!>????????!!!!!!!
Answer:
meh maybe
Explanation:
Answer:
no im not going to happen im emotionally physically and mentally exausted and want to die :>
During 2019, Rainbow Umbrella Corp. had sales of $820,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $575,000, $90,000, and $160,000, respectively. In addition, the company had an interest expense of $100,000 and a tax rate of 21 percent. (Assume that interest is fully deductible.) Suppose the company paid out $57,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what was the net new long-term debt?
Answer:
$2000
Explanation:
The computation of the net new long term debt is shown below:
Before that we need to do the following calculations
Sales $820,000
Less:
Cost of Goods sold $575,000
administrative and selling expenses $90,000
Depreciation $160,000
EBIT -$5,000
less: Interest $100,000
Taxable income –$105,000
Taxes (21%) 0
Net income -$105,000
Now Operating cash flow is
= EBIT + Depreciation -Taxes
= -$5,000 + 160,000 - 0
= $155,000
As we know that
Change in NWC = Net capital spending = Net new equity = 0
Cash flow from assets = OCF – Change in NWC – Net capital spending
where,
Cash flow from assets is
= $155,000 - 0 - 0
= $155,000
Cash flow to stockholders is
= Dividends - Net new equity
= $57000 - 0
= $57000
Cash flow to creditors = Cash flow from assets - Cash flow to stockholders
= $155000 - 57000
= $98,000
Cash flow to creditors = Interest - Net new LTD
Net new LTD = Interest - Cash flow to creditors
= $100,000 - 98,000
= $2000
an online survey or _____?
Answer:
Study
Explanation:
Please help me the due date is tomorrow!!!
-Find one business/company
- Assess the company
i company background
ii company operation
iii ethical decision/operation taken by the company
iv assess the advantage and disadvantage
Sure, I can help you with that! Here is an assessment of Tesla, Inc. based on the criteria you provided:
i. Company background:
Tesla, Inc. is an American electric vehicle and clean energy company founded in 2003 by Elon Musk, JB Straubel, Martin Eberhard, Marc Tarpenning, and Ian Wright. Tesla designs and manufactures electric cars, battery storage systems, and solar panels. The company is headquartered in Palo Alto, California, and has manufacturing facilities in California, Nevada, New York, and China.
ii. Company operation:
Tesla's operations primarily revolve around the production of electric vehicles and energy storage solutions. The company has a strong focus on innovation and sustainability, and it aims to accelerate the world's transition to sustainable energy. Tesla produces several models of electric cars, including the Model S, Model X, Model 3, and Model Y. The company also sells solar panels and battery storage systems for homes and businesses.
iii. Ethical decisions/operations taken by the company:
Tesla has made several ethical decisions and operations in recent years. For example, the company has committed to sourcing all of its raw materials from sustainable sources and has implemented recycling programs to reduce waste. Additionally, Tesla has made a significant commitment to worker safety and has invested in developing advanced safety systems for its vehicles. The company has also been vocal about its support for climate action and has pledged to reduce its carbon footprint.
iv. Advantages and disadvantages:
Advantages:
Tesla is a leader in the electric vehicle market and has a strong brand reputation for innovation and sustainability.
The company's focus on sustainability has helped it attract customers who are interested in reducing their carbon footprint.
Tesla's energy storage solutions have the potential to help reduce dependence on fossil fuels.
Disadvantages:
Tesla faces significant competition from other electric vehicle manufacturers.
The high cost of Tesla's vehicles may limit the company's market reach.
The company's reliance on battery technology may pose challenges in terms of supply chain and availability of raw materials.
Overall, Tesla is a company with a strong commitment to sustainability and innovation, and it has the potential to play a significant role in reducing the world's carbon footprint. However, the company also faces challenges and limitations that may impact its future success.
Consider the following balance sheet:
BestCare HMO
Balance Sheet
June 30, 2011
(in thousands)
Assets
Current Assets:
Cash $2,737
Net premiums receivable 821
Supplies 387
Total current assets $3,945
Net property and equipment $5,924
Total assets $9,869
Liabilities and Net Assets
Accounts payable—medical
Services $2,145
Accrued expenses 929
Notes payable 382
Total current liabilities $3,456
Long-term debt $4,295
Total liabilities $7,751
Net assets—unrestricted
(equity) $2,118
Total liabilities and net
Assets $9,869
a. How does this balance sheet differ from the one presented in Exhibit 4.1 for Sunnyvale?
b. What is BestCare’s net working capital for 2011?
c. What is BestCare’s debt ratio? How does it compare with Sunnyvale’s debt ratio?
a. The balance sheet for BestCare HMOB is different from the one presented in Exhibit 4.1 for Sunnyvale. b. BestCare’s net working capital for 2011 is $3,945 - $3,456 = $489 thousand. c. BestCare’s debt ratio is 78.9%.
Exhibit 4.1 for Sunnyvale in that it includes an entry for “Net premiums receivable” and “Notes payable”. It also includes a separate line item for “Net property and equipment” which was not present in Sunnyvale’s balance sheet.
BestCare’s debt ratio is 7,751/9,869 = 78.9% which is higher than Sunnyvale’s debt ratio of 71.2%, suggesting that BestCare has higher leverage and more debt than Sunnyvale. This is likely because BestCare is a larger organization and has more assets and liabilities than Sunnyvale.
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Explain the criticisms of labor unions today. 25 POINTSS
One major criticism of labor unions today is that they have become too large and are out of touch with workers’ needs. In the past, union leadership has shown a pattern of corruption and many people worry that this trend continues today. Some people argue that union activity has hurt the US economy; higher union wages have meant higher prices for consumer goods and the introduction of improved technology has been slow as unions fear it will result in fewer employees.
SAMPLE RESPONSE ANSWERS WILL VARY
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What do you mean by traditional professional? explain with explain.
Because abc brand has a small share in a market that is not growing, it is classified as a?
'Because abc brand has a small share in a market that is not growing, it is classified as a dog from marketing aspect.
One of the four categories, or quadrants, of the BCG Growth-Share matrix, which Boston Consulting Group created in the 1970s to manage various business units within a corporation, is referred to as a dog in business. A dog is a commercial entity with a little market share in an established market.
These businesses have cost disadvantages as a result of their limited market share. Therefore, in such a case, managers must determine whether the investment being made to maintain these products may be used to create something more profitable.
Using the BCG model, you may plan strategically. It aids businesses in determining which items need to be withdrawn and which ones need to be promoted in order to produce income.
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Should citizens participating in
criminal trials should have some requirements such as someone who
has a degree? Or someone who makes at least $20,000 per year? Why
or why not?
Citizens participating in criminal trials should not be required to have a degree or make a certain amount of money per year. This is because such requirements would create inequalities in the justice system and violate the principle of equal protection under the law that is enshrined in the US Constitution.
First, requiring citizens to have a degree in order to participate in criminal trials would discriminate against those who cannot afford higher education. This would create an unfair advantage for those who are more affluent and better-educated, and it would prevent many people from serving on juries or as witnesses.
Secondly, requiring citizens to make a certain amount of money per year would also create inequalities. Poorer citizens would be excluded from participating in criminal trials, which would violate their rights to equal protection under the law. Moreover, wealth is not necessarily a measure of a person's ability to serve as a juror or a witness. A person's income level does not necessarily correlate with their intelligence, education, or integrity
.In conclusion,citizens should not be required to have a degree or make a certain amount of money per year in order to participate in criminal trials. Doing so would violate the principle of equal protection under the law, create inequalities, and prevent many people from participating in the justice system.
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Who was the english mathematician who advocated for the application of mathematics to the problem of ensuring the efficient use of facilities?.
The English mathematician who advocated for the application of mathematics to the problem of ensuring the efficient use of facilities was George Dantzig.
George Dantzig is renowned for his groundbreaking work in the field of linear programming, which is a mathematical method for maximizing resource allocation and identifying the most advantageous answers to challenging situations requiring constraints.
Operations research and management science have greatly benefited from George Dantzig's work, notably in the area of streamlining logistical and operational procedures.
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Suppose that the total debt on credit cards in 2019 was $1,088 billion, and that this was an increase from the year before. This would cause the M1 money supply to ____ and the M2 money supply to ______.
Group of answer choices
A. increase; increase
B. decrease; decrease
C. remain unchanged; remain unchanged
D. remain unchanged; increase
The correct answer is (A) increase; increase.
The terms "total debt," "M1," and "M2" are related to money supply in an economy.
If the total debt on credit cards in 2019 was $1,088 billion and this was an increase from the year before, this would cause the M1 money supply to increase and the M2 money supply to increase as well.
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The correct answer is A. increase; increase.
The M1 money supply includes cash, checking account deposits, and traveler's checks. Credit card debt is not included in M1, so an increase in credit card debt would not directly affect M1. However, an increase in credit card debt would likely lead to an increase in spending and therefore an increase in deposits in checking accounts, which are part of M1. As a result, M1 would increase.
The M2 money supply includes M1 plus savings account deposits, money market securities, and other time deposits. An increase in credit card debt would also likely lead to an increase in savings account deposits, as individuals may use savings to pay off their credit card balances. This would result in an increase in M2.
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Find a product demonstration that educates people about a particular product. Describe that demonstration. Evaluate the demonstration by explaining whether it educated you about the product or simply tried to persuade you to buy the product
Answer:
An Example of a product demonstration is Scrub Daddy.
Explanation:
Scrub Daddy is the most successful product from the hit television show Shark Tank with more than $100 million in retail sales. It became popular due to the founder's simple and effective presentation that was all about clearly demonstrating it's benefits instead of being a 'sales person'
The scrub daddy makes it easier to wash dishes and sensitive crockery. If it is placed in cold water, it becomes hard, making it useful to scrub greasy surfaces. However, under hot water, it becomes soft which is excellent for expensive China etc.
He demonstrated this in front of the TV cameras clearly with props and tools and quickly won a large dedicated audience.
Answer:
Answer:
An Example of a product demonstration is Scrub Daddy.
Explanation:
Scrub Daddy is the most successful product from the hit television show Shark Tank with more than $100 million in retail sales. It became popular due to the founder's simple and effective presentation that was all about clearly demonstrating it's benefits instead of being a 'sales person'
The scrub daddy makes it easier to wash dishes and sensitive crockery. If it is placed in cold water, it becomes hard, making it useful to scrub greasy surfaces. However, under hot water, it becomes soft which is excellent for expensive China etc.
He demonstrated this in front of the TV cameras clearly with props and tools and quickly won a large dedicated audience.
Explanation:
An investment will pay you $500 per year for 25 years with the
first payment received 9 years from today. If you use a 8% rate to
evaluate investments, how much will you pay for the investment
today?
You would pay approximately $4,082.90 today for the investment, considering a discount rate of 8%.
To calculate the present value of the investment, we can use the formula for the present value of an annuity:
PV = C * [(1 - (1 + r)^(-n)) / r]
Where:
PV is the present value
C is the cash flow per period
r is the discount rate per period
n is the total number of periods
In this case:
C = $500 (cash flow per year)
r = 8% (discount rate)
n = 25 (total number of years)
However, since the first payment is received 9 years from today, we need to adjust the formula accordingly. We need to calculate the present value of the remaining 16 years of cash flows starting from year 10.
PV = C * [(1 - (1 + r)^(-n)) / r] / (1 + r)^9
Substituting the values:
PV = $500 * [(1 - (1 + 0.08)^(-16)) / 0.08] / (1 + 0.08)^9
Simplifying the equation will give us the present value of the investment:
PV ≈ $4,082.90
Therefore, you would pay approximately $4,082.90 today for the investment, considering a discount rate of 8%.
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Sofia manages her employees by carefully monitoring their production, comparing what they do to predicted schedules and desired budgets. Sofia can best be described as a ______ leader.
Answer:
task-oriented
Explanation:
Leadership carries a lot of skills and behaviors that almost anyone can learn and use effectively.
Task oriented leader is one who capitalizes or place emphasis on the technical aspects of a given job. They are dare focus is getting the job done correctly and on time.
They are known to have a well Organizing work, clearly established goals and has a performance standard/meeting deadlines.
The rule of reason was an antitrust law guideline that emphasized the importance of ____ over ____.
a.
price; quantity
b.
quantity; price
c.
behavior; size
d.
size; behavior
The Rule of Reason is an antitrust law guideline that emphasized the importance of behavior over size. The correct option is c.
To elaborate, the Rule of Reason focuses on the actual conduct and competitive effects of a business, rather than solely considering its size. This approach allows for a more accurate assessment of whether a specific business practice is anticompetitive or not.
The Rule of Reason takes into account factors such as market conditions, the intent of the business, and the impact on consumers, instead of simply penalizing large businesses based on their size. This approach encourages fair competition and protects consumer interests while promoting efficiency and innovation in the market. So, the correct answer is c.
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what is true about taxes?
a. most citizens want to pay the highest amount possible?
b. Taxes benefit the government, but they do not benefit the citizens.
c. Traces benefit the citizens, but they do not benefit the government.
d. The tax money comes out of the citizens income and overall wealth
Answer: D) the tax money comes out of the citizen’s earned income and overall wealth.
Explanation:
Just took the test.
please someone answer this brainlest and 45 pionts. In this activity, you will help three students sort through information about the clusters in this unit to help them chart their career pathway. Each student has a basic idea of which cluster they would like to be in, but that’s it! Your task will be to give them career options in these clusters, explain how their skills match that pathway, chart their education path, and describe their ultimate work environment. Our students may not go down the pathway you recommend, but at least you will give them a good rough outline to work with!
Stephanie
Growing up with dyslexia, Stephanie always struggled in English and Reading. Math was a breeze for her, though. Along the way, there were a few teachers who really worked closely with Stephanie to help her absorb the information she needed, and they showed her how to make learning fun! Stephanie particularly loved studying trigonometry and even her high school teacher is having difficulty keeping up with her. Now that she has been able to figure out how to study, education no longer scares Stephanie. In fact, she finds it a great way to explore and understand the world around her!
Based on what you know about Stephanie, create a personalized career pathway form for her. On this form, you need to include the following information:
Recommended pathway for Stephanie
Skills that Stephanie has that would be valuable in this career
What type of education is required to work in this career pathway
A description of where she might work and what tasks she might perform
Ethan
Ethan has always been interested in the stars. For his eighth birthday, his father bought Ethan a telescope that allowed him to see comets, satellites, and nearby planets clearly. Once in high school, Ethan struggled with his English Literature course until one of his classmates pointed out that many poems have a mathematic rhythm. This was really interesting to Ethan. Unfortunately, Ethan’s grandparents, who live in Thailand, suffered a complete loss of their home due to a tsunami. They have come to live with Ethan. Ethan wonders if there was a way to prevent the tsunami or if the kind of earthquakes that cause the tsunami here happen on the moon.
Based on what you know about Ethan, create a personalized career pathway form for him. On this form, you need to include the following information:
Recommended pathway for Ethan
Skills that Ethan has that would be valuable in this career
What type of education is required to work in this career pathway
A description of where he might work and what tasks he might perform
Yusuke
Yusuke has been a fan of online games for as long as she can remember. She particularly loves the role-playing games that allow her to build virtual empires and exchange goods with other players. Yusuke believes that because she connects with gamers from around the world while she is playing, the games help her develop a better world view. She unlocks almost every puzzle there is in a game and many times, players will reach out to Yusuke for tips and tricks. If there is a work-around, Yusuke will find it! She has saved up her money for three years to buy a gaming laptop that will be able to give her the all-encompassing experience that she wants. Yusuke is excited to try even more games with her new tech, as soon as she gets a feel for it.
Based on what you know about Yusuke, create a personalized career pathway form for her. On this form, you need to include the following information:
Recommended pathway for Yusuke
Skills that Yusuke has that would be valuable in this career
What type of education is required to work in this career pathway
A description of where she might work and what tasks she might perform
Explanation:
Stephanie:
Recommended pathway: Mathematics and Statistics
Skills: Stephanie has excellent math skills and a love for learning, which will be valuable in a career related to mathematics and statistics. She also has the ability to make learning fun and has developed effective study habits.
Education: A bachelor's degree in mathematics or statistics is usually required to work in this field. Higher-level positions may require a master's degree or PhD.
Work environment: Stephanie may work in a variety of settings, such as research and development, government agencies, finance, or education. Some tasks she might perform include analyzing data, creating mathematical models, and developing algorithms.
Ethan:
Recommended pathway: Astronomy and Astrophysics
Skills: Ethan has a passion for astronomy and a talent for mathematics. He has also shown an interest in finding solutions to real-world problems, such as the prevention of natural disasters.
Education: To work in the field of astronomy and astrophysics, a bachelor's degree in astronomy, physics, or a related field is usually required. Advanced degrees such as a master's or PhD may be necessary for research or teaching positions.
Work environment: Ethan may work in a variety of settings, such as universities, government agencies, observatories, or private research firms. Some tasks he might perform include observing and analyzing astronomical data, developing models and simulations, and conducting research on topics such as planetary formation or the evolution of stars.
Yusuke:
Recommended pathway: Computer Science and Information Technology
Skills: Yusuke has a talent for problem-solving and a deep understanding of online gaming. She is also able to connect with people from around the world and has developed skills in teamwork and collaboration.
Education: A bachelor's degree in computer science, information technology, or a related field is usually required to work in this field. Certifications in specific programming languages or technologies may also be valuable.
Work environment: Yusuke may work in a variety of settings, such as software development companies, video game studios, or technology consulting firms. Some tasks she might perform include developing software or games, testing and debugging code, and collaborating with other team members to create new technologies or improve existing ones.
What expertise and characteristics should directors have or possess in companies like Spar and Shoprite? Explain THREE each
Expertise and characteristics that directors in companies like Spar and Shoprite should possess include knowledge of retail industry trends, financial acumen, and strong leadership skills.
What expertise and characteristics should directors have or possess?Directors in companies like Spar and Shoprite play a crucial role in guiding the strategic direction of the organization, ensuring that it remains competitive and profitable in a constantly evolving retail landscape.
To do this effectively, they must possess a deep understanding of the industry, including emerging trends in consumer behavior, technology, and logistics. They must also have strong financial acumen, as they are responsible for overseeing the company's financial performance and making decisions that will drive growth and profitability.
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Thomas Company borrowed $30,000 on March 1, 2019. Thomas signed a 2-year 6% interest-bearing note. What is the adjustment amount to accrue interest on December 31, 2019?
A) $1,800
B) $3,600
C) $300
D) $1,500
The adjustment amount to accrue interest on December 31, 2019 is A) $1,800.
Thomas Company borrowed $30,000 on March 1, 2019. Thomas signed a 2-year 6% interest-bearing note. Interest for the 10 months to be accrued:Interest = Principal × Rate × Time Interest = $30,000 × 6% × (10/12)Interest = $30,000 × 0.06 × 0.83Interest = $1,800 To calculate the adjustment, we divide the interest by 12 (the number of months in a year) and multiply it by the number of months the interest has accrued (from March 1 to December 31), which is 10 months.
Adjustment = (Interest / 12) * Number of months
Adjustment = ($1,800 / 12) * 10 = $1,500 Therefore, the adjustment amount to accrue interest on December 31, 2019 is A) $1,800.
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metalica company applies overhead based on machine hours. at the beginning of 20x1, the company estimated that manufacturing overhead would be $696,000, and machine hours would total 24,000. by 20x1 year-end, actual overhead totaled $754,000, and actual machine hours were 29,000. on the basis of this information, the 20x1 predetermined overhead rate was:
The predetermined overhead rate for 20x1 is $29 per machine hour. ( below)
To calculate the predetermined overhead rate, divide the estimated manufacturing overhead by the estimated machine hours:
Predetermined overhead rate = Estimated manufacturing overhead / Estimated machine hours
Given information:
Estimated manufacturing overhead = $696,000
Estimated machine hours = 24,000
Predetermined overhead rate = $696,000 / 24,000 = $29 per machine hourApologies for the brief initial response.
the predetermined overhead rate, we need to divide the estimated manufacturing overhead by the estimated machine hours.
Given information:
- Estimated manufacturing overhead: $696,000
- Estimated machine hours: 24,000
Predetermined overhead rate = Estimated manufacturing overhead / Estimated machine hours
Substituting the values:
Predetermined overhead rate = $696,000 / 24,000 = $29 per machine hour
This means that for every machine hour used, Metalica Company applies $29 of overhead cost. However, it's important to note that the predetermined overhead rate is based on estimates and may differ from the actual overhead incurred.
Additional information regarding actual overhead and machine hours at the end of 20x1 is provided:
- Actual overhead incurred: $754,000
- Actual machine hours: 29,000
These actual values indicate that the company incurred higher overhead costs ($754,000) than initially estimated ($696,000). Similarly, the actual machine hours used (29,000) exceeded the estimated machine hours (24,000).
The predetermined overhead rate is primarily used for cost allocation and budget purposes. Deviations between estimated and actual values can help a company assess the accuracy of its initial estimates and make adjustments for future planning.
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