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    tsmith86's Avatar
    tsmith86 Posts: 22, Reputation: 1
    New Member
    		  
    #1

    Oct 23, 2005, 06:27 PM
    accounting problem
    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's Avatar
    SSchultz0956 Posts: 121, Reputation: 10
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    #2

    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's Avatar
    mathieu67 Posts: 2, Reputation: 1
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    #3

    Nov 8, 2005, 09:19 PM
    Interest Rate Question
    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #4

    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
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