Answer:
Activity rate = $176 per hour
Explanation:
<em>Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. </em>
<em>Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers. </em>
<em>Activity rate per driver is calculated as: </em>
Activity overhead for the period / Total cost drivers for the period Designing products activity cost pool= designing cost /product design hours
= $1372,448/7,798 hours
= $176 per hour
Answer:
A. 200 units per order
Explanation:
To solve this you have to use the <em>economic order quantity</em> formula:
Where:
Demand = 4,000
S= supply cost = ordering cost = 20
H= holding cost = 4
Economic Order Quantity = 200
<em><u>How to Remember:</u></em>
Demand per year and order cost goes in the dividend.
Holding cost goes in the divisor.
Answer:
Dr Factory overhead $73,000
Cr Factory wages payable $73,000
Being cost of indirect labor for the month
Explanation:
The factory overhead cost account needs be debited because the cost is an indirect cost of production, this is also due to the fact that the transaction is an increase in expense as increase in expense account is automatically a debit entry.
The corresponding entry was credited to factory wages payable as the amount is owed to factory workers,as a result it remains in payable account until it is eventually settled in cash which would mean the cash account is credited and the factory wages payable account is debited.
Answer:
<u>Directive.</u>
Explanation:
House's original path-goal theory is based on the theory that the behavior exerted by the leader must be adjusted according to the work environment and the employees, so that there is motivation, satisfaction and improvement in the performance of the employees to achieve of goals.
According to House and Mitchel, there are four styles of leaders:
- Directive,
- Supportive,
- Participative, and
- Achievement.
So on this issue, the leadership style that best fits is the directive leader.
In this leadership style, it is the leader who provides the guidelines for the development and execution of tasks, and the coordination of work. The leader provides clear goals and expectations about performance to achieve the expected results.
<u>Adjusting entry for Rent Receivable:</u>
It is given that Sanborn Company rents space to a tenant for $3,100 per month. The tenant currently owes rent for November and December, it means the Rent Receivable as on Dec. 31 is (3100*2) = $6,200
So the adjusting entry as on Dec. 31 shall be as follows:
Rent Receivable Debit $6,200
Rent Revenue Credit $6,200
(Being adjustment made for rent receivable)
