Theodore Company’s overhead rate for machine setups is $115 per setup. A total of 105 setups are estimated for the period. At year-end, it was determined that Products A and B have 60 and 45 setups, respectively. How much is the overhead cost assigned to each product?a. Product A $10,062.50, Product B $2,012.50 b. Not enough information to determine the answer c. Product A $6,037.50, Product B $6,037.50 d. Product A $6,900, Product B $5,175

The answer is d. Product A $6,900, Product B $5,175

Explanation:

The overhead cost assigned to each product is the rate multiplied by  the number of setups.

The overhead assigned to product A is

$115 x 60 setups = $6,900

and the overhead assigned to product B is

$115 x 45 setups = $5,175.

Hence the answer is d. Product A $6,900, Product B $5,175

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

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