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Savatey [412]
2 years ago
15

Exercise 2-10 Applying Overhead Cost to a Job [LO2-2] Sigma Corporation applies overhead cost to jobs on the basis of direct lab

or cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials, $8,000 for direct labor, and $6,000 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $2,500 for direct materials and $4,000 for direct labor. Required: 1a. Should any overhead cost be applied to Job W at year-end? Yes No 1b. How much overhead cost should be applied to Job W? 2. How will the costs included in Job W’s job cost sheet be reported within Sigma Corporation’s financial statements at the end of the year? Raw Materials Work-in-Process Finished Goods
Business
1 answer:
OlgaM077 [116]2 years ago
6 0

Answer:

See explanations below.

Explanation:

1. Yes. Overhead should be applied to job W at year-end. Overhead is applied to every jobs whether or not they are completed at year end.

b. To calculate the amount of overhead to be applied to job W, we need to calculate first the overhead application rate based on direct labor cost through job V.

Direct labor cost. $8,000

Overhead applied $6,000

Overhead rate = [ Overhead applied / Direct labor cost ] × 100

= [6,000/8,000] × 100

= 75%

Overhead to be applied to job W

Direct labor cost $4,000

Overhead rate 75%

Overhead to be applied = $3,000

It therefore means that $3,000 should be applied to job W.

2. Because job W was not completed at the year end, it would then be included in the work in process inventory in the financial statements of Sigma Corporation at year end.

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Juan purchased shares in ABC company for​ $5,000 three years ago. During these three years he received​ $600 in dividends. He ju
7nadin3 [17]

Answer:

B) –2%

Explanation:

The total return on an investment is calculated by,

Total Return = Capital gains ÷ Initial Investment x 100

First we will have to calculate capital gains of his investment,

He got 600 in dividends and 4,300 after selling the stock against the initial investment of $5,000.

So capital gains,

= 600 + 4,300 - 5,000

= -100

Total Return would be,

= -100 / 5,000 x 100

= -2% is the total return on his investment.

7 0
2 years ago
Danny mentions that he is only in business if his employees are happy to come to work. Based on McGregor's work, Danny would hav
Salsk061 [2.6K]

Answer:

Theory Y views

Explanation:

According to McGregor, managers who subscribe to the theory Y assumptions have an optimistic view of their employees. They regard employees as intelligent and innovative people who can provide solutions to the organization's problems. Theory Y managers appreciate employee differences, encourage them to improve their skills and work rate.

<u>Assumptions of Theory Y include</u>

  1. Employees are happy to work on their initiative.
  2. Workers like to be involved in decision making.
  3. Workers are self-motivated and like to complete their tasks.
  4. Employees willingly seek and accept responsibility
  5. View work as fulfilling and challenging.
  6. Have the ability to solve the organization's problems creatively and innovatively.
6 0
2 years ago
As a trophy property, the price offered for the office building may say more about the continuing robust financial health of wea
kenny6666 [7]

Answer:

D

Explanation:

From the passage it can be inferred that, the price offered for the office building, a trophy property may say more about the continuing robust financial health of wealthy buyers

6 0
2 years ago
Pharoah Company assembled the following information in completing its March bank reconciliation: Balance per bank $23700 Outstan
Natasha2012 [34]

Answer:

Pharaoh will reduce its cash balance by $1,130

None of the answer options was correct, maybe something was missing in the question like notes collected or other NSF checks.

Explanation:

Pharaoh Company's bank reconciliation:

balance per bank account   $23,700

- outstanding checks            ($4,800)

+ deposits in transit                 $7,750

<u>- NSF checks                            ($500) </u>

total                                        $26,150

<u>- cash balance per books    ($27,280)</u>

difference                               ($1,130)

In order to reconcile the bank account, we do not consider any bank service fees because they are already included in the bank balance. What we must consider are the NSF checks that we deposited and thought were good checks, but instead they bounced.

3 0
2 years ago
John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each cont
irinina [24]

Answer:

state statutes

Explanation:

Usually, if the LLC's operating agreement didn't specify how the profit would be distributed, state statutes determine that the profits must be divided equally among members.

LLC are separate entities form their owners, they are authorized and created by the state's statutes, and they become legal entities in the state where they have their offices and operate.

4 0
2 years ago
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