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eduard
2 years ago
5

Computing Pre-determined Overhead Rates and Job Costs [LO2-1, LO2-2, LO2-3]

Business
1 answer:
Anuta_ua [19.1K]2 years ago
7 0

Answer and Explanation:

1. The computation of plantwide predetermined overhead rate is shown below:-

(Fixed manufacturing overhead cost ÷ Machine-hours) + Variable manufacturing overhead cost per machine-hour

= ($651,000 ÷ 159,000) + $4.60

= $8.69

2. The total manufacturing cost assigned to Job 400 is shown below:-

Total manufacturing cost assigned to Job 400 = Direct material + Direct labor + Manufacturing overhead

= $370 + $300 + (34 × $8.69)

= $370 + $300 + $295.46

= $965.46

3. The unit product cost is shown below:-

Unit product cost = Total manufacturing cost assigned to Job 400 ÷ Number of units

= $965.46 ÷ 60

= $16

4. The selling price per unit is shown below:-

Selling price per unit = Unit product cost + (Unit product cost × markup percentage)

= $16 + ($16 × 120%)

= $16 + $19.2

= $35.2 per unit

5. As the absorption costing method is chosen so it also considered the fixed also it fails to generate the good analysis for variable costing

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-BARSIC- [3]

Answer:

cash flow used from investing activities              215,000

Explanation:

Investing activities

proceed from sale of building    500,000

Investment Fleet Corp.               (120,000)

Equipment purchased                 (65,000)

loan to suppliers                         (100,000)

cash flow used

from investing activities              215,000

The common stock and dividend are financing

The land was acquire with a note payable, it do not involve cash.

the loan is made by the company to a supplies, it will be returned with interest, not goods, so is investing.

8 0
2 years ago
John, a line supervisor, has decided to increase Kerry's responsibilities by delegating more work to her station. what is the fi
melomori [17]
<h2>Clarify the assignment would be the first step john should take to increase Kerry's responsibilities.</h2>

Explanation:

Option A: If a new work is assigned or an additional work is assigned, it is necessary to first explain about the new responsibility and clarify about the assignment. This would ensure Kerry to continue the work smoothly.

Option B: Feedback is always welcome but this is not the first step to add responsibilities.

Option C: Notifying others is the responsibility of John and not Kerry. So this choice is invalid.

Option D: Accountability though it is mandatory comes only in the closure part.

7 0
2 years ago
If a vendor has correctly used marginal analysis to select its stock levels for the day (as in the newsperson problem in the tex
Lilit [14]

Answer:

C.Greater than 0.75

Explanation:

Given

Cu = $120

Co = $360

We know Probability P <= Cu/(Cu + Co)

P = 120/(120 + 360)

   = 120/480

   = 0.25

P is the probability of unit is will not sold and 1-p is the  probability of unit that will sold

1 - p = 1 - 0.25

       = 0.75

probability of the last unit being sold should be greater than 0.75

8 0
2 years ago
Quaker State Inc. offers a new employee a single-sum signing bonus at the date of employment. Alternatively, the employee can re
Hatshy [7]

Answer:

$80.364.45

Explanation:

The lump sum that would make the employee indifferent can be determined by calculating the present value of the annuity

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 0 = $10,000  

Cash flow in year 1 = $40,000  

Cash flow in year 2 = $40,000

I = 9%

PV = $80,364.45

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

6 0
2 years ago
Your company wants to set aside a fixed amount every year to a sinking fund to replace a piece of industrial equipment costing $
nika2105 [10]

Answer:

If the company makes 8 deposits, one per year earning 7% per year, in order to get $375000 at the 8 year, the company has to deposit $34,874.16 each year.

Explanation:

To get this number the best option is to use a excel spreadsheet and solver add-in. In a table with 8 columns (8 years), organize the payments and the rule of interest: payment year 1*(1+7%)^8+payment year 2*(1+7%)^7+payment year 3*(1+7%)^6+payment year 4*(1+7%)^5+payment year 5*(1+7%)^4+payment year 6*(1+7%)^3+payment year 7*(1+7%)^2++payment year 8*(1+7%)^1 where all the payments are equal (payment 1=p2=p3...=P8)

4 0
2 years ago
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