Chapter 8, Problem 17DQ

Jefferson Textiles calculates its plantwide predetermined overhead rate annually based on direct labor hours. At the beginning of the year, it was estimated that 40,000 direct labor hours would be required for the estimated level of production. The company also estimated $630,000 of fixed manufacturing overhead cost for the period and variable manufacturing overhead of $2.50 per direct labor hour. The actual manufacturing overhead cost for the year was $780,000, and the actual total direct labor was 41,500 hours. Compute the company's plantwide predetermined overhead rate for the year.

Suppose Isha Corporation reports beginning assets of $55,000, ending assets of $70,000, net sales of $150,000, and net income of $12,500. What is the return on assets?

Calculate the cash amount