Renaissance Creations restores antique stained glass windows. All jobs generate some breakage or improper cuts. This scrap can be sold to stained glass hobbyists. Renaissance Creations expects to incur approximately 90,000 direct labor hours during the year. The following estimates are made in setting the predetermined overhead rate for the year: Overhead costs other than breakage $594,400 Estimated cost of scrap $50,400 Estimated sales value of scrap (14,800) 35,600 Total estimated overhead $630,000 One job that Renaissance Creations completed during the year was a stained glass window of the Pierce family crest that took 250 hours, and direct labor is invoiced at $20 per hour. Total direct material cost for the job was $1,780. Scrap that was generated from this job was sold for $186. a. What was the predetermined overhead rate (set on the basis of direct labor hours) for the year

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.