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Exhibit 10.3
The information below is used for the following questions.
A loan officer wants to determine if people will be late in making loan payments. She has information of 18 current loans including the applicants income, level of assets and whether or not the person has been late on payments. She has performed an analysis on the data and obtained the output shown below.
-Refer to Exhibit 10.3. What formulas should go in cells C22:D23 and E4:F24 of the spreadsheet?
Variable Overhead
Indirect production costs that vary with the level of output, such as utilities for a manufacturing plant.
Direct Materials
Raw materials that can be directly attributed to the production of finished goods.
Direct Labor-Hours
Total working hours accrued by employees integral to the manufacturing sequence.
Variable Overhead
Costs of production that vary directly with the volume of output, such as utilities and labor efficiency.
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