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2 years ago

A company incurs $2,700,000 of overhead each year in three departments: Ordering and Receiving, Mixing,?

Business

1 answer:

Digiron [165]2 years ago

6 0

Answer:

Total allocated overhead= $1,840,000

Explanation:

Giving the following information:

Department Expected use of Driver Cost

Ordering and Receiving 2,000 $800,000

Mixing 50,000 1,000,000

Testing 1,500 900,000

Production information for Slime is as follows:

Expected use of Driver

Ordering and Receiving 1,600

Mixing 30,000

Testing 1,000

First, we need to calculate the predetermined overhead rate for each activity:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Ordering and Receiving= 800,000/2,000= $400 per order

Mixing= 1,000,000/50,000= $20 per mixing hour

Testing= 900,000/1,500 = $600 per test

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Ordering and Receiving= 400*1,600= 640,000

Mixing=20*30,000= 600,000

Testing= 600*1,000= 600,000

Total allocated overhead= $1,840,000

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Prepare separate entries for each transaction for Sunland Company. The merchandise purchased by Splish Brothers on June 10 cost

gregori [183]

Answer:

For the sales on June 10

Debit Cost of Goods sold $3,180

Credit Inventory account $3,180

For the goods returned,

Debit Inventory account $210

Credit Cost of goods sold $210

Explanation:

When a sale is made from the inventory items at hand, the transaction has a dual effect. These are;

the recognition of revenue. this involves a Debit to cash or accounts receivable and a credit to sales
the derecognition of inventory. this involves a debit to cost of goods sold and a credit to inventory.

When returned are made, the reversal of these entries are posted.

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2 years ago

A top executive at IBM shared with his friends some "inside" information that allowed them to engage in very profitable stock tr

Delicious77 [7]

Answer:

This is a case of low moral intelligence,option A.

Explanation:

Moral intelligence is the ability to differentiate right from wrong as well as acting based on what one thinks is right.

Moral intelligence is a function of one's uprightness and envisaging the consequences of an action.

All in all, the top executive should have known that the information about his stock performance is a classified information not meant for everyone's consumption,hence his moral intelligence at the lowest ebb.

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2 years ago

Seattle Inc. identifies an investment opportunity, which will yield cash flows of $30,000 per year in Years 1 through 4, $35,000

vladimir2022 [97]

Answer:

the payback period = 4.86 years

Explanation:

Seattle's cash flows are as following:

Year Cash flow Accumulated cash flows

0 -$150,000 -$150,000

1 $30,000 -$120,000

2 $30,000 -$90,000

3 $30,000 -$60,000

4 $30,000 -$30,000

5 $35,000 $5,000

6 $35,000 $40,000

etc.

The payback period is between year 4 and 5:

4 years + ($30,000 / $35,000) = 4.86 years or
year 4 + [($30,000 / $35,000) x 365 days] = 4 years and 313 days

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1 year ago

In year 1, Rim Corporation purchases 1,000 shares of treasury stock for $10 per share. In year 2, Rim reissues 100 shares of the

Alecsey [184]

Answer:

The correct answers are:

C-debit paid-in capital treasury shares $200

D-Debit retained earnings $300

Explanation:

The purchase of treasury stock for $10 per share implies that the price paid per share is the par value of each share.

Upon issue of 100 shares at $12 the following entries are required:

Dr Cash (100*$12) $1,200

Cr Treasury stock(100*$10) $1,000

Cr Paid-in capital in excess of par $200

However upon issue of 500 share at $9 per share which is $1 less than the par value, hence there is $500 discount on the issue.

The discount is recorded as follows:

Dr paid-in capital $200

Dr Retained earnings $300

The $200 posted to paid-in capital is the same premium that posted in there earlier when 100 shares.

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1 year ago

Teagan wants to buy a new refrigerator. The refrigerator costs $1650. Teagan decides to finance the refrigerator for 24 months a

sukhopar [10]

Answer:

$78.06

Explanation:

For computing the monthly payment we need to apply the PMT formula i.e. to be shown in the attachment below:

Given that,

Present value = $1,650

Future value or Face value = $0

RATE = 12.5% ÷ 12 = 1.0416%

NPER = 24 months

The formula is shown below:

= PMT(RATE;NPER;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the monthly payment is $78.06

7 0

2 years ago