Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A radial tire manufacturer produces products in two departments Divisions A and B. The company uses separate predetermined overhead allocation rates for each department to
A radial tire manufacturer produces products in two departments Divisions A and B. The company uses separate predetermined overhead allocation rates for each department to allocate its overhead Divisions A and B have estimated manufacturing overhead costs of $170.000 and $360,000, respectively Division A uses machine hours as the allocation base, and Division B uses direct labor hours as the allocation base. The total estimated machine hours were 31,000, and direct labor hours were 23,000 for the year. Calculate the departmental predetermined overhead allocation rates. (Round your answer to the nearest cent.) LE O A. Division A-$7.39. Division B$11.61 O B. Division A-$15.65, Division B-$5 48 O C. Division A $11.61. Division B$7.39 O D. Division A-$5.48. Division B-$15 65 A company is evaluating three possible investments. The following information is provided by the company Project A Project B Project C $220,000 $52,000 $220,000 0 14.000 22,000 Investment Residual value Net cash inflows Year 1 Year 2 Year 3 Year 4 Year 5 54.000 54 000 54,000 54,000 54.000 32.000 23,000 19 000 16.000 0 86.000 56.000 66,000 26,000 0 What is the payback period for Project A? (Assume that the company uses the straight line depreciation method.) (Round your answer to two decimal places.) ID O A. 4.07 years B. 5 years C. 3.07 years D. 1.63 years
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started