Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 66,000 labor-hours. The estimated variable manufacturing overhead was $8.41 per labor-hour and the estimated total fixed manufacturing overhead was $1,533,180. The actual labor-hours for the year turned out to be 68,400 labor-hours.Required:Compute the company's predetermined overhead rate for the recently completed year.
What will be an ideal response?
Estimated total manufacturing overhead = $1,533,180 + ($8.41 per labor-hour × 66,000 labor-hours) = $2,088,240
Predetermined overhead rate = $2,088,240 ÷ 66,000 labor-hours = $31.64 per labor-hour
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Collins GroupThe Collins Group, a leading producer of custom automobile accessories, has hired you to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below.
Assets Current assets$ 38,000,000 Net plant, property, and equipment 101,000,000 Total assets$139,000,000 Liabilities and Equity Accounts payable$ 10,000,000 Accruals 9,000,000 Current liabilities$ 19,000,000 Long-term debt (40,000 bonds, $1,000 par value) 40,000,000 Total liabilities$ 59,000,000 Common stock (10,000,000 shares)30,000,000 Retained earnings 50,000,000 Total shareholders' equity 80,000,000 Total liabilities and shareholders' equity$139,000,000 The stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875.00. The beta is 1.25, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate is 25%. Refer to the data for the Collins Group. What is the best estimate of the after-tax cost of debt? A. 5.80% B. 6.10% C. 6.43% D. 6.75% E. 7.08%
Based on the code above, list the number, name, and available credit for all customers with credit limits that exceed their balances
a. SELECT CustomerNum, CustomerName AS AvailableCredit FROM Customer WHERE CreditLimit>Balance ; b. SELECT CustomerNum, CustomerName, CreditLimit AS AvailableCredit FROM Customer WHERE CreditLimit>Balance ; c. SELECT CustomerNum, CustomerName, Balance AS AvailableCredit FROM Customer WHERE CreditLimit>Balance ; d. SELECT CustomerNum, CustomerName, CreditLimit-Balance AS AvailableCredit FROM Customer WHERE CreditLimit>Balance ;
If the initial outlay for the project is $12,113, compute the project's IRR
You are considering investing in a project with the following year-end after-tax cash flows: Year 1: $5,000 Year 2: $3,200 Year 3: $7,800 A) 14% B) 10% C) 32% D) 24%
Creative Finance Ltd. wants to introduce practices that would enhance creativity among employees in solving some of the financial institution's ongoing work process problems. Identify and describe three types of activities that encourage creativity including a specific example of things that might be done in each activity.
What will be an ideal response?