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tsmith86
Oct 23, 2005, 06:27 PM
Can someone please check my answer to see if I am correct.
-Mars corporation has developed the following flexible budget formula for annual indirect labor costs:
Total annual cost=$12,000+.$.25 per machine hour.
Operating budgets for the current month are based on 5,000 hours of planned machine time. Indirect labor costs included in the monthly planning budget are:
A 13,250
B. 1,250
C. 3,200
D. 2,250
MY ANSWER: A

SSchultz0956
Oct 24, 2005, 07:43 AM
They are asking for indirect labor costs included in the monthly planning budget . Since labor costs (annually) are 12000 + .25 per indirect labor hour, you would take the 1250 and add it to the monthly planning budget which would be 1000 dollars (12000/12) which would get you 2250. Sorry if I'm wrong.

mathieu67
Nov 8, 2005, 09:19 PM
If a situation involves a 10% interest rate compounded semiannually for 10 years, what interest rate and number of periods would be used to compute the present value?

CaptainForest
Nov 9, 2005, 03:28 PM
The correct Answer is D: 2250

Annual Formula for Labour:
$12,000+.$.25X

Threrefore, monthly formula for Labour:
$12,000/12 +.$.25X
1,000 + .25X

Therefore, 1000 + .25 (5000) = 2250