a) | ||
Indirect-cost rate = | ||
Machine A: Rate = $50,000/$100,000 = | $0.50 | per DL $ |
Machine B: Rate = $50,000/2,000 Hours | $25.00 | Per DL Hour |
Machine C: Rate = $50,000/$250,000 = | $0.20 | Per DM $ |
b) | ||
Machine A = Direct Cost (Material + Labors ) + Indirect Cost = $3800 + 2500 +2500 x $.50 | $7,550.00 | |
Machine B = $3200 + $25 x 750 hours | $21,950.00 | |
Machine C = $19,550 + 2800 + ($19,550 x $.020) | $26,260.00 |
EnviroTech P/L is seeking to determine the actual costs incurred by each of its three machines...
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