You are doing a sales presentation for Ms. Duarte and her son. Ms. Duarte has some cognitive impairment and her son informs you

The salvage value applied in this case is B. $20,000. For year 3, the depreciation amounts to $80,000 calculated using the sum of the Years' Digits method on an asset with a purchase price of $500,000 and a useful life of 8 years. The salvage value taken into account for the depreciation calculations stands at $20,000.

The difference in the two WACCs is 1.2%.

Answer:

(a) Predetermined overhead rate for the entire plant:

= 30

Applied manufacturing overhead for Job A:

= Total hours of direct labor × Predetermined overhead rate for the plant

= 15 × 30

= 450

Applied manufacturing overhead for Job A:

= Total direct labor hours × Plantwide predetermined overhead rate

= 9 × 30

= 270

(b) Department-specific predetermined overhead rates:

= 30

= 1.2

Applied manufacturing overhead for Job A:

= (Machining machine hours × 30) +  (Assembly direct labor hours × 1.2)

= (11 × 30) +  (10 × 1.2)

= 330 + 12

= 342

Applied manufacturing overhead for Job B:

= (Machining machine hours × 30) +  (Assembly direct labor hours × 1.2)

= (12 × 30) +  (5 × 1.2)

= 360 + 6

= 366

Response:

(A)0.6600 (B) 1.325 (C) 0.997 or 1 minute

Clarification:

Resolution

It's provided that:

The fixed production time = 30 seconds

The customer arrival time determined by the Poisson distribution is = 45 seconds

Now,

(A) We calculate the typical line length of vehicles

The formula is as follows:

Lq = λ²/ 2μ ( μ -λ)

In this equation,

λ = signifies the average arrival rate

μ = denotes the average service rate

We first determine the average arrival rate as shown below:

The average arrival rate λ = arrival rate/ 60 seconds

= 60/45

= 1.33 customers per minute

Next, we find the average service rate which is detailed below

The average service rate μ = 60 seconds/ average rate

= 60/30 = 2 customers per minute

Now we will calculate the average line length in vehicles as shown here:

Lq = λ²/ 2μ ( μ -λ)

Lq = 1.33²/2*2 (2-1.33)

Lq = 1.7689/4 (0.67)

Lq = 1.7689/2.68

Lq = 0.6600

Thus, the average line length for vehicles is 0.6600 cars

(B) We calculate the average number of vehicles in the entire system

Ls = Lq + λ /μ

Ls = 0.600 + 1.33/2

Ls = 0.6600 + 0.665

Ls = 1.325

(C) Lastly, we need to ascertain the expected average duration in the system outlined here:

Ws = Ls/λ

Ws= 1.325/1.33 = 0.997 or 1.00

The predicted average duration in the system is 0.997 or 1.00 minutes.

Answer:

Eiffel Corporation

Tax implications for Tower:

Withholding tax = €2,500 x $1.50 = $3,750.00

Domestic Corporation tax = 156,712.50

Overall tax effect = $160,462.50

Explanation:

a) Inputs and Calculations:

Dividend = €500,000

Withholding tax = €2,500

After withholding tax = €497,500

Exchange rate = €1 = $1.50

Consequently, net dividend after withholding tax = €497,500 x $1.50

= $746,250

Corporate tax rate = 21% of $746,250

= $156,712.50

Tower incurs a withholding tax of $3,750 when converted to dollars and faces a corporation tax on earnings amounting to $156,712.50, calculated under the TCJA tax rate of 21%, a reduction from the previous 35%.