On May 25,2016 the exchange rate between Euro and Pound was €1.319/£; on October 20,2017, it was €1.101/E By what percent has the Pound depreciated (appreciated relative to the Euro? -16.5277% devalued -16.5254% devalued -19.7969% devalued -19.8002% devalued

The given statement "The present worth of a municipal bond is a function of the bond's face value, its dividend rate, the maturity date, and the interest rate in the marketplace" is: a) True, because municipal bond id indeed affected by all of them. The correct answer is option a).

The present worth of a municipal bond is indeed affected by its face value, dividend rate, maturity date, and interest rate in the marketplace. These factors help determine the current value of the bond and the income it generates for investors.

The face value of the bond is the amount that the bond will be worth at maturity, and the dividend rate is the rate at which the bond will pay interest to the bondholder. The maturity date is the date on which the bond will expire and the bondholder will receive the face value of the bond.

The present worth of the bond is calculated using the discounted cash flow (DCF) method, which takes into account the time value of money and the prevailing interest rate in the market. The DCF method discounts the future cash flows (in this case, the bond's interest payments and face value) to their present value using a discount rate equal to the prevailing interest rate.

Therefore, the present worth of a municipal bond is indeed a function of the bond's face value, its dividend rate, the maturity date, and the interest rate in the market. The correct answer is option a) True.

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Answer: 40%

Explanation:  

Given:- tax on the next dollar earned is $24, and the next dollar earned is $60, we need to follow below mentioned steps:

Step 1: Calculate the marginal tax rate by dividing the tax on the next dollar earned by the next dollar earned.
Marginal tax rate = Tax on the next dollar earned / Next dollar earned = $24 / $60

Step 2: Convert the marginal tax rate to a percentage.
Marginal tax rate = ($24 / $60) * 100

Marginal tax bracket = Marginal tax rate %

Following these steps, we get:
Marginal tax bracket = ($24 / $60) * 100 = 40%

So, the marginal tax bracket is 40%.

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The correct response is (b) because they assist managers in determining whether corrective actions are necessary, they merit serious examination by the managers of all organizations.

Cost benchmarking is the evaluation of one's Cost of Goods Sold (COGS) in relation to industry competitors. Cost benchmarking highlights areas for competitive pricing improvement by emphasizing best-in-class pricing and determining pricing competitiveness in terms of the industry.

If a farmer can sell their crops directly to nearby stores, they may be able to negotiate a higher price for their goods. This is because it saves on shipping expenses and customers could prefer local produce. The price may still increase even if the farmer receives a premium over the benchmark price.

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The future value of the $12,400 lump sum invested for seven years at 8% interest is $21,254.32.

Using the formula for future value of a lump sum:

FV = PV x (1 + r[tex])^n[/tex]

Where:

PV = Present value of the lump sum (i.e., $12,400)

r = Interest rate per period (i.e., 8% per year)

n = Number of periods (i.e., 7 years)

Plugging in the values, we get:

FV = $12,400 x (1 + 0.08)^7

FV = $12,400 x 1.7138

FV = $21,254.32

Therefore, the future value of the $12,400 lump sum invested for seven years at 8% interest is $21,254.32.

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The concepts of right and wrong in determining if a commercial action is ethically right. The correct answer is option (D).

Business is a type of economic activity that involves customers and sellers exchanging goods and services. The goal of a business is to make money for the owners or shareholders by offering products and services that consumers desire or require. Production, marketing, R&D, finance, accounting, and customer service are examples of business activities. Any legal entity, including a sole proprietorship, partnership, corporation, or other, may operate as a business.

Ethics universalism, or widespread moral agreement on what is right and wrong in all cultures and nations, gives rise to moral principles that are used to assess if a business action is ethically appropriate. These concepts are global, which means that all communities and nations embrace and apply them regardless of local business customs and standards.

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The bond with the least degree of interest rate risk is which has a 12% coupon rate and 8 years to maturity. The correct option is C. 12% coupon rate, 8 years to maturity.

This is because the higher the coupon rate, the less sensitive the bond's price is to changes in interest rates. The shorter the maturity, the less sensitive the bond's price is to changes in interest rates as well.

When interest rates rise, bond prices fall. A higher coupon rate means the bond will pay a larger portion of its cash flow as interest payments, reducing the impact of any decrease in price. Similarly, with a shorter time to maturity, there is less time for interest rates to fluctuate and affect the bond's price.

In contrast, the bond in option A has a lower coupon rate and a longer maturity, making it more sensitive to changes in interest rates. Option B has a higher coupon rate, but the shorter maturity helps to offset this. Option D has a lower coupon rate and a longer maturity, making it more sensitive to changes in interest rates as well. The correct option is C. 12% coupon rate, 8 years to maturity.

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When a product begins to draw the attention of the general public after enough customers have bought it, the product is entering the growth stage. The correct option is B.

During the growth stage of the product life cycle, sales and demand for the product begin to increase rapidly as more and more customers become aware of the product and start buying it. This growth in demand is often due to positive word-of-mouth from early adopters and satisfied customers, leading to the product gaining wider attention from the general public.

This stage is characterized by increasing sales, expanding distribution, and rising profits. Therefore, the correct option is B.

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The influence strategy that was utilized in this scenario is the impression management strategy. By believing that management would think better of you if you worked the holidays, you are trying to manage their impression of you in a positive way.

You are hoping that your willingness to work during the holidays will be perceived as a valuable trait and enhance your standing in the eyes of management.

Based on the information provided, if you work the holidays because you believe that management would think better of you, the influence strategy utilized is "ingratiation." Ingratiation is a technique used to gain favor or approval by attempting to please others, in this case by working during the holidays to improve your standing with management.

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The firms profit maximizing quantity would equal 400 units

To find the profit maximizing quantity, we need to use the marginal cost and marginal revenue equations.

Marginal cost (MC) = $0.20Q

Marginal revenue (MR) = $80

To maximize profit, we want to produce where MC = MR.

$0.20Q = $80

Solving for Q:

Q = $80/$0.20

Q = 400

Therefore, the profit maximizing quantity for this firm would be 400 units (option D).

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When a company culture is ethically corrupt or amoral, it can have detrimental effects on the behavior of its employees. In such environments, there is often a disregard for "first-order" ethical norms and a preference for "second-order" ethical norms (Option A).

This means that employees may prioritize their own interests and self-dealing over doing what is right for the company and its stakeholders.

Moreover, such cultures tend to encourage a tendency in employees to ignore "what's right" and engage in any behavior they think they can get away with. This can lead to a wide range of unethical behaviors, from lying and cheating to stealing and fraud.

In addition, such cultures often prioritize short-term gains over long-term financial gains. This can be seen in managerial actions that focus on boosting short-term revenues and earnings at the expense of long-term financial health. This short-termism can also exacerbate the ethical issues within the organization, as managers may be willing to engage in unethical behavior to achieve immediate financial goals.

In summary, option A is correct company cultures that spawn an ethically corrupt or amoral work climate can encourage a range of unethical behaviors, including self-dealing, a disregard for "first-order" ethical norms, and a focus on short-term gains over long-term financial health.

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The ear (effective annual rate) corresponding to a nominal rate of 4% compounded semiannually is 4.04%. For a nominal rate of 4% compounded quarterly, the ear is 4.06%. Lastly, for a nominal rate of 4% compounded daily, the ear is 4.07%.

The Effective Annual Rate (EAR) is the rate at which an investment grows when taking into account the effects of compounding. To calculate the EAR corresponding to a nominal rate compounded at different frequencies, you can use the formula:
EAR = (1 + (Nominal Rate / n))^(n*t) - 1
where "n" is the number of compounding periods per year and "t" is the time in years (in this case, 1 year).
For a nominal rate of 4% (0.04) compounded semiannually, quarterly, and daily, the calculations would be:
Semiannually (n=2):
EAR = (1 + (0.04 / 2))^(2*1) - 1
EAR ≈ 0.0404 or 4.04%
Quarterly (n=4):
EAR = (1 + (0.04 / 4))^(4*1) - 1
EAR ≈ 0.0406 or 4.06%
Daily (n=365):
EAR = (1 + (0.04 / 365))^(365*1) - 1
EAR ≈ 0.0408 or 4.08%
So, the EAR for a nominal rate of 4% compounded semiannually is 4.04%, compounded quarterly is 4.06%, and compounded daily is 4.08%.

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The incidence of the corporate tax increase is borne by the employees of Acme Incorporated, as they will not receive the $19,000 that was previously allocated for the employee Christmas party.

The incidence of the corporate tax increase in this case is borne by the employees of Acme Incorporated. This is because the company chose to eliminate the funds allocated for the employee Christmas party in order to cover the increased property tax expense.

The decision to eliminate the budget for the party was made by Acme, indicating that the burden of the tax increase was shifted onto the employees rather than being absorbed by the company itself.

This is an example of how corporate taxes can have indirect effects on different stakeholders, and how decisions regarding tax incidence can vary depending on the specific circumstances of a given situation.

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Using checks for cash payments is a good internal control measure to protect cash. The correct option is A, check.

Checks provide a documented trail of payments and are less susceptible to theft and fraud compared to cash.

Checks also require signatures, making it more difficult for unauthorized individuals to misuse funds.

Therefore, the correct option is A.

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Using checks for cash payments is a good internal control measure to protect cash. The correct option is A, check.

Checks provide a documented trail of payments and are less susceptible to theft and fraud compared to cash.

Checks also require signatures, making it more difficult for unauthorized individuals to misuse funds.

Therefore, the correct option is A.

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The profit-maximizing, or loss-minimizing, the quantity of output for any firm to produce exists at the output level where marginal revenue equals marginal cost. This is because, at this output level, the firm is able to maximize its profits by producing just enough to cover its marginal costs and earn additional revenue.

It is important to note that total cost and total revenue are also important factors to consider when determining the profit-maximizing output level, but they do not directly impact the decision to produce at the point where marginal revenue equals marginal cost. Ultimately, a firm wants to produce at the level where its total revenue exceeds its total cost, but this is achieved by first finding the output level where marginal cost is minimized and then adjusting production to achieve maximum revenue.

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True. In a benevolence ethical climate, the interests of the company's employees and external stakeholders are given high priority, as the focus is on the well-being of all parties involved.

External stakeholders are individuals or groups who have an interest in a company's operations or performance but aren't associated with it or have any financial investment in it. They could include: Customers who have purchased the products and services the company provides. suppliers who provide raw materials or other resources to the company. people who have invested in the company or who own stock in it. Creditors or money lenders that provide the company with credit or capital.  governmental and regulatory bodies that monitor how the firm is run. Community members who are impacted by the operations or activities of the business. competitors in the same industry or market. advocacy organizations and non-governmental organizations (NGOs) that monitor the company's environmental impacts and societies.

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True. In a benevolence ethical climate, the interests of the company's employees and external stakeholders are given high priority, as the focus is on the well-being of all parties involved.

External stakeholders are individuals or groups who have an interest in a company's operations or performance but aren't associated with it or have any financial investment in it. They could include: Customers who have purchased the products and services the company provides. suppliers who provide raw materials or other resources to the company. people who have invested in the company or who own stock in it. Creditors or money lenders that provide the company with credit or capital.  governmental and regulatory bodies that monitor how the firm is run. Community members who are impacted by the operations or activities of the business. competitors in the same industry or market. advocacy organizations and non-governmental organizations (NGOs) that monitor the company's environmental impacts and societies.

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d. In a monopolistic market the makers of Wave will experience economic earnings that are above zero in the short term, but as more businesses enter the market and competition rises, their long-term economic profitability will be close to zero.

In a monopolistic competitive market, producers have some degree of market power, which means they can set their prices above marginal cost. If the price of Wave detergent is currently $6 and the ATC is $4, it implies that the producers of Wave are earning economic profits ($2 per unit). However, in the long-run, we expect new firms to enter the market attracted by the economic profits. As more firms enter the market, the demand for each individual firm's product will decrease, and the demand curve will shift to the left.  This decrease in demand will reduce the market power of the producers of Wave, which will force them to lower their prices to stay competitive. As a result, the economic profits earned by the producers of Wave will decrease and eventually approach zero. Therefore, the correct answer to your question is d. The producers of Wave will earn economic profits greater than zero in the short-run, but in the long-run, they will earn economic profits approaching zero as new firms enter the market and competition increases.

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Based on the given cross price elasticity of demand of -0.1, we can conclude that these two goods, sweaters and hats, are complements.

This means that when the price of one good (e.g. hats) increases, the demand for the other good (e.g. sweaters) will decrease, indicating a negative relationship between the two. Since the cross price elasticity of demand is less than zero, we can also conclude that the demand for these goods is relatively inelastic, meaning that changes in price will not significantly affect the quantity demanded.
Hi! Based on the information provided, the cross price elasticity of demand between sweaters and hats is -0.1. Since the value is negative, this indicates that these goods are complements. When the price of one good increases, the demand for the other good decreases, showing a complementary relationship between the two goods.

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The common law should be applied to this contract. Under common law, a contract is formed when there is an offer, acceptance, consideration, and intention to create legal relations.

In this case, POA agreed to Gray Loon's proposal and paid the full amount for the website design. This constituted an offer, acceptance, and consideration.
Furthermore, when POA requested changes to the website, Gray Loon agreed over the phone and began work. This demonstrated an intention to create legal relations and a modification to the original contract. However, when POA refused to pay the bill for the changes, they breached the modified contract.
Under common law, a party cannot simply refuse to pay for services rendered under a contract. Even if there was no agreement as to price for the modification, POA still received the benefit of Gray Loon's services and is therefore liable for payment.
Therefore, the common law should be applied in this case and POA should be held liable for the unpaid bill.

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Siren Company's manufacturing cost per unit for 2017 was $0.08 using variable costing and $8.75 using absorption costing. The company's net income for 2017 was $1,015,000 using variable costing and $952,500 using absorption costing.

Siren Company's manufacturing cost per unit for 2017 using variable costing can be calculated as follows: Variable manufacturing cost per unit = (Direct materials + Direct labor + Variable manufacturing overhead) / Units produced = ($2.50 + $3.75 + $1.25) / 90,000 = $7.50 / 90,000 = $0.0833 or $0.08 (rounded to 2 decimal places) Therefore, Siren Company's manufacturing cost per unit for 2017 using variable costing was $0.08. Using this information, we can prepare a variable costing income statement for 2017 as follows: Variable costing income statement for 2017: Sales revenue ($27.25 x 80,000) = $2,180,000 Variable costs: Direct materials ($2.50 x 90,000) = $225,000 Direct labor ($3.75 x 90,000) = $337,500 Variable manufacturing overhead ($1.25 x 90,000) = $112,500 Variable selling and administrative expenses ($0.50 x 80,000) = $40,000 Total variable costs = $715,000 Contribution margin = $2,180,000 - $715,000 = $1,465,000 Fixed costs: Fixed manufacturing overhead = $300,000 Fixed selling and administrative expenses = $150,00 Total fixed costs = $450,000 Net income = $1,465,000 - $450,000 = $1,015,000 Siren Company's manufacturing cost per unit for 2017 using absorption costing can be calculated as follows: Total manufacturing cost per unit = (Total manufacturing costs) / Units produced = ($450,000 + $675,000) / 90,000 = $1.25 + $7.50 = $8.75 Therefore, Siren Company's manufacturing cost per unit for 2017 using absorption costing was $8.75. Using this information, we can prepare an absorption costing income statement for 2017 as follows: Absorption costing income statement for 2017: Sales revenue ($27.25 x 80,000) = $2,180,000 Cost of goods sold: Beginning inventory (90,000 - 80,000) x $8.75 = $87,500 Manufacturing costs incurred during the year ($450,000 + $675,000) = $1,125,000 Total cost of goods available for sale = $1,212,500 Ending inventory (10,000 x $8.75) = $87,500 Cost of goods sold = $1,125,000 - $87,500 = $1,037,500 Gross profit = $2,180,000 - $1,037,500 = $1,142,500 Selling and administrative expenses: Variable selling and administrative expenses ($0.50 x 80,000) = $40,000 Fixed selling and administrative expenses = $150,000 Total selling and administrative expenses = $190,000 Net income = $1,142,500 - $190,000 = $952,500 In summary, Siren Company's manufacturing cost per unit for 2017 was $0.08 using variable costing and $8.75 using absorption costing. The company's net income for 2017 was $1,015,000 using variable costing and $952,500 using absorption costing.

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The additional consumption from an increase of $100 billion in disposable income is $90.

We are required to calculate the additional consumption resulting from an increase of $100 billion in disposable income with a marginal propensity to consume (MPC) of 0.9.

1. Identify the MPC value: 0.9

2. Identify the increase in disposable income: $100 billion

3. Multiply the MPC by the increase in disposable income:

Additional Consumption = 0.9 * $100 billion

Additional Consumption = $90 billion

The additional consumption resulting from an increase of $100 billion in disposable income with a marginal propensity to consume (MPC) of 0.9 is $90 billion.

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The additional consumption from an increase of $100 billion in disposable income is $90.

We are required to calculate the additional consumption resulting from an increase of $100 billion in disposable income with a marginal propensity to consume (MPC) of 0.9.

1. Identify the MPC value: 0.9

2. Identify the increase in disposable income: $100 billion

3. Multiply the MPC by the increase in disposable income:

Additional Consumption = 0.9 * $100 billion

Additional Consumption = $90 billion

The additional consumption resulting from an increase of $100 billion in disposable income with a marginal propensity to consume (MPC) of 0.9 is $90 billion.

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In order for a copyright holder to collect money damages from a person who used copyrighted material, it must be proven that the person used the material without permission or without proper licensing.

In order for a copyright holder to collect money damages from a person who used copyrighted material, it must be proven that the person used the material without permission or without proper licensing. The damages awarded may include compensation for any financial losses suffered by the copyright holder as a result of the unauthorized use of their material.

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A yield curve that reflects relatively similar borrowing costs for both short-term and long-term loans is called as (c) normal yield curve.

A normal yield curve is a graphical representation of the link between the yield on bonds and maturities , where longer-term bonds have a higher yield compared to shorter-term bonds due to the risks associated with time . In other words, a normal yield curve slopes upward from left to right , indicating that the market usually expects more compensation for greater risk . Short-term bonds tend to have lower yields to reflect the fact that an investor's money is at less risk . A normal yield curve is considered a sign of a regular pace of economic growth.

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To calculate the breakeven price for the six-month European put option with a strike price of $1.05/CAD and an option premium of $0.03/CAD, you can use the following formula:

 This is the breakeven price at which the put option would start generating a profit, covering both the striking price and the option premium. the correct answer is option b. $1.08/CAD

Breakeven price = Strike price - Option premium

In this case, the breakeven price would be:

Breakeven price = $1.05/CAD - $0.03/CAD = $1.02/CAD

So, the correct answer is c. $1.02/CAD.

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They can tell if you have a clear vision for your future and a practical plan to realize it by asking you about your short-term goals.

The term "quarterly-capitalism" or "short-termism" refers to the demands that public firms frequently experience to return significant profits as soon as feasible. Although this kind of thinking gives shareholders an immediate benefit, it may eventually result in systemic issues.

The main reason for innovation project failure is obvious: in 75% of cases, bad marketing, or misalignment between the planned service and the actual demands of the market, is to blame. The actual problems are not addressed.

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One key measure of a company's liquidity is the current ratio, which compares its current assets to its current liabilities. A higher current ratio indicates a greater ability to meet short-term obligations.

a. Increase

b. Decrease

c. Increase

d. No change

e. Decrease

However, relying solely on the current ratio can be misleading, as it doesn't take into account the composition of a company's current assets and liabilities. For example, a company with a high current ratio but a large proportion of slow-moving inventory may struggle to convert those assets into cash quickly enough to meet its obligations.

To get a more complete picture of a company's liquidity, analysts often use other metrics such as the quick ratio, which excludes inventory from current assets, or the cash conversion cycle, which measures the time it takes to convert inventory into cash and then use that cash to pay suppliers. By analyzing multiple liquidity ratios together, analysts can better assess a company's ability to meet its short-term obligations and manage its working capital effectively.

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Netflix has a history of being able to adapt and change quickly, as evidenced by their successful pivot from DVD rentals to streaming.

Netflix's ability to adapt and change quickly is well-documented. In the early 2000s, the company started out as a DVD rental service, but quickly recognized the potential of streaming and invested heavily in that technology. This pivot was a risky move at the time, but ultimately paid off, as Netflix is now one of the largest streaming services in the world.
However, more recently, Netflix has faced some challenges in adapting to new market conditions. The company's subscriber growth has slowed in some regions, and it faces increased competition from other streaming services. This has led some analysts to question whether Netflix can continue to innovate and adapt as quickly as it has in the past. Additionally, as the company has grown larger and more bureaucratic, there may be more resistance to change within the organization.

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In an organization with strong control over its sales/collection process, only the accounting department would use the accounts receivable ledger and the cash receipts journal.

These documents are essential for tracking customer payments and ensuring that all sales have been properly recorded and collected. Other departments may have access to these documents for reference purposes, but only the accounting department would have the authority to make entries and updates to these records.In an organization with strong control over its sales/collection process, only the accounting department would use:
In an organization with strong control over its sales/collection process, only the accounting department would use the general ledger and accounts receivable records.
These tools are essential for maintaining accurate financial records and ensuring that all transactions related to sales and collections are properly documented and managed. By restricting access to these records, the organization can maintain control over its financial processes and reduce the risk of errors or fraud.

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The city has an obligation to make annual payments of $1 million for the general obligation bonds, starting on September 30, 2023. In addition, the city paid $450,000 in interest on September 30, 2023. Therefore, the total amount paid towards the bond debt in 2023 is $1,450,000.

The Annual Percentage Rate (APR) is the cost you pay each year to borrow money, including fees, expressed as a percentage. The APR is a broader measure of the cost to you of borrowing money since it reflects not only the interest rate but also the fees that you have to pay to get the loan.
An annual percentage rate is expressed as an interest rate. It calculates what percentage of the principal you’ll pay each year by taking things such as monthly payments and fees into account. APR is also the annual rate of interest paid on investments without accounting for the compounding of interest within that year.

This expenditure should be reported in the Debt Service Fund in the city's year-end fund level financial statements on December 31, 2023.

An auto loan’s interest rate is the cost you pay each year to borrow money expressed as a percentage. The interest rate does not include fees charged for the loan.

The Annual Percentage Rate (APR) is the cost you pay each year to borrow money, including fees, expressed as a percentage.

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The interest payment on June 30 using effective-interest amortization is $45,012.64.

To calculate the interest payment on June 30 using effective-interest amortization, we need to first calculate the bond's discount and then the interest expense.The first step is to calculate the present value of the bond using the market rate of interest of 8.5%.

We can use the PV of $1 table to calculate the present value factor for four years at 8.5%:

PV factor = 1 / (1 + i)n

PV factor = 1 / (1 + 0.085/2)^8

PV factor = 0.6111Next, we can calculate the present value of the bond:

Present value of bond = Coupon payment x (1 - PV factor) / i + Face value x PV factor

Present value of bond = $21,000 x (1 - 0.6111) / 0.0425 + $600,000 x 0.6111

Present value of bond = $357,246.47

The discount is the difference between the face value and the present value of the bond:Discount = Face value - Present value of bond

Discount = $600,000 - $357,246.47

Discount = $242,753.53

The discount is recorded as a liability on the balance sheet and is amortized over the life of the bond using the effective-interest method. The interest expense is calculated by multiplying the carrying value of the bond (face value minus discount) by the effective interest rate. The effective interest rate is the market rate of interest at the time of issuance adjusted for the amortized discount.To calculate the effective interest rate, we first need to calculate the semiannual interest payment:

Semiannual interest payment = Coupon rate x Face value / 2

Semiannual interest payment = 0.075 x $600,000 / 2

Semiannual interest payment = $22,500The amortized discount for the first six months is:

Amortized discount = Discount / (Number of periods x 2)

Amortized discount = $242,753.53 / (8 x 2)

Amortized discount = $15,171.47

The carrying value of the bond on June 30 is:

Carrying value = Face value - Amortized discount

Carrying value = $600,000 - $15,171.47

Carrying value = $584,828.53The effective interest rate for the first interest payment is:Effective interest rate = (Semiannual interest payment / Carrying value) x 2

Effective interest rate = ($22,500 / $584,828.53) x 2

Effective interest rate = 0.0770 or 7.70%

The interest expense for the first six months is:Interest expense = Carrying value x Effective interest rate

Interest expense = $584,828.53 x 0.0770

Interest expense = $45,012.64

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The total allocated overhead for AM-2 is $310,000, and for FM-9, it is $465,000.

To determine how much overhead will be allocated to each product using the traditional direct labor hours allocation base, follow these steps:

1. Calculate the total direct labor hours for both products:

Total direct labor hours = Direct labor hours for AM-2 + Direct labor hours for FM-9

Total direct labor hours = 10,000 + 15,000

Total direct labor hours = 25,000

2. Calculate the overhead rate per direct labor hour:

Overhead rate per direct labor hour = Total overhead / Total direct labor hours

Overhead rate per direct labor hour = $775,000 / 25,000

Overhead rate per direct labor hour = $31

3. Allocate the overhead to each product based on the direct labor hours required for production:

Allocated overhead for AM-2 = Overhead rate per direct labor hour * Direct labor hours for AM-2

Allocated overhead for AM-2 = $31 * 10,000

Allocated overhead for AM-2 = $310,000

Allocated overhead for FM-9 = Overhead rate per direct labor hour * Direct labor hours for FM-9

Allocated overhead for FM-9 = $31 * 15,000

Allocated overhead for FM-9 = $465,000

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