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Lerok [7]
2 years ago
7

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams est

imated total overhead of $396,000; materials of $410,000 and direct labor of $220,000. During the year Adams incurred $418,000 in materials costs, $413,200 in overhead costs and $224,000 in direct labor costs. Compute the overhead application rate.
Business
1 answer:
alexira [117]2 years ago
7 0

Answer:

The overhead application rate is 1.8

Explanation:

In the question both the estimated and actual overhead cost , material and labor cost are provided -

                                     ESTIMATED                 ACTUAL

Overhead cost             $396,000                     $418,000

Material cost                $410,000                      $413,200

Direct cost                    $220,000                    $224,000

Overhead application rate can be calculated by dividing the total budgeted overhead cost by direct labor cost.

= Budgeted overhead cost / direct labor cost

= $396,000 / $220,000

= 1.8

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horsena [70]

Answer:

  • News report on website and social media channels.
  • Quarterly earnings call.
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Explanation:

As there are no options available, I listed three ways in order of ease of implementation.

Catherine could include the news in a news report or newsletter and post it on the company website and their social media platforms to ensure that as many of their shareholders as possible read it. This is the easiest method mentioned and can be done as soon as possible.

Catherine can also update the shareholders during Quarterly Earnings calls which is a webcast or teleconference where she will update shareholders on the happenings in the company. As this happens quarterly, Catherine may have to wait some time to use it so it is second in ease of use.

Catherine could also wait till the Annual General Meeting of the shareholders to do so but this could take quite a long time.

5 0
2 years ago
A firm purchased raw materials on account and paid for them within 30 days. The raw materials were used in manufacturing a finis
Nataly_w [17]

Answer: 130 days

Explanation:

The Cash Conversion Cycle is a measure that attempts to show how many days on average it takes a company to convert resources into cash.

It is calculated with the following formula,

= Days of Inventory Outstanding + Days of Sales Outstanding - Days of Payables Outstanding

Where,

Days of Inventory Outstanding is the amount of days it takes to convert inventory to sales

Days of Sales Outstanding is the amount of time it takes debtors to pay the company for goods they bought and,

Days of Payables Outstanding is the time it took the company to pay for the goods it bought

Plugging in the figures we have,

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The firm's cash conversion cycle is 130 days.

7 0
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Answer:

d) to receive a higher or lower dividend yield depending on current competitive market conditions

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The answer would be:
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Hope this helps
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e. None of the above.

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