Ratzan Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct labor: $15,750 Factory Supervisor Salary: $71,000 Indirect Materials: $12,100 Factory rent: $54,900 Factory utilities: $14,000 Direct Materials: $78,970 Depreciation on Factory equipment: $17,000 Ratzan estimates that 5,000 machine-hours will be worked during the year. The predetermined overhead rate per machine hour will be .

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan