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Oliga [24]
2 years ago
10

Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of st

andard direct labor-hours. The budgeted variable manufacturing overhead is $2 per direct labor-hour and the budgeted fixed manufacturing overhead is $480,000 per year. The standard quantity of materials is 3 pounds per unit and the standard cost is $7 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12 per hour. The company planned to operate at a denominator activity level of 60,000 direct labor-hours and to produce 40,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual number of units produced 42,000 Actual direct labor-hours worked 65,000 Actual variable manufacturing overhead cost incurred $ 123,500 Actual fixed manufacturing overhead cost incurred $ 483,000 Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements.
Business
1 answer:
katrin2010 [14]2 years ago
6 0

Answer:

$8 per direct labor hours and $2 per direct labor hours

Explanation:

The computation of the predetermined overhead rate is shown below:

Predetermined overhead rate = Budgeted fixed manufacturing overhead ÷ planned activity level

= $480,000 ÷ 60,000 direct labor hours

= $8 per direct labor hours

And, the budgeted variable manufacturing overhead is $2 per direct labor hours

We simply divide the budgeted fixed manufacturing overhead by the planned activity level

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The purpose of training and development<span> is to increase an employee's ability to perform productively.
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2 years ago
When the price of candy bars decreased from $0.55 to $0.45, the quantity demanded changed from 19,000 per day to 21,000 per day.
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Answer:

0.5

Explanation:

A screenshot is attached to get the full solution

Since the coefficient is < 1, it is inelastic

8 0
2 years ago
Last month, Korey's Comics had $4,350 in net sales with a gross profit of $3,320 and a net income of $1,850. Calculate Korey's g
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Gross profit margin = (gross profit ÷ net sales) * 100

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7 0
2 years ago
Read 2 more answers
Engineers at a tire manufacturing company investigated the effect of a new rubber compound on the tire life of a certain brand o
Naya [18.7K]

64,576 miles.

Explanation:

When the companies advertise their new products they want to present the product in the best possible light as possible. This is due to edging out the competition as in many products small details make a huge difference. The same is the case with the tires and their endurance. The longer way a set of tires takes you the better, since they are expensive product so changing them less often is very beneficial.

In this case, the interval for the mean tire life varies by 2,026 from 62,550, both up and down. The minimum will be 60,524 miles, while the maximum a tire can pass is 64,576. The company will of course go for the maximum value to make the product look as attractive and as good as possible to the customers.

7 0
2 years ago
This year, Napa Corporation received the following dividends: KLP Inc (a taxable Delaware corporation in which Napa holds an 8%
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Answer:

$147,500

Explanation:

Computation of Napa's dividends-received deduction

Napa is said to holds less than 20% stock interest in KLP Inc which means that the dividends received deduction in the case of dividends received from KLP would be 50%.

And in case of dividends received from Gamma, the dividends received deduction would be 100% reason been that KLP holds more than 80% of the stock interest in Gamma.

Hence:

Napa’s dividends-received deduction will be:

= ($55,000 x 50%) + $120,000

=$27,500 +$120,000

= $147,500

Therefore Napa's dividends-received deduction will be $147,500

7 0
2 years ago
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