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IrinaVladis [17]
2 years ago
12

In October, Pine Company reports 18,600 actual direct labor hours, and it incurs $126,540 of manufacturing overhead costs. Stand

ard hours allowed for the work done is 22,200 hours. The predetermined overhead rate is $5.75 per direct labor hour. Compute the total overhead variance.
Business
1 answer:
VladimirAG [237]2 years ago
7 0

Answer:

The total overhead variance in hours taken is 3,600 hours

The total overhead cost variance is $1,110

Explanation:

The variance is about the different between budget/ standard and actual figures.

Standard hours allowed for the work done is 22,200 hours; and the predetermined overhead rate is $5.75 per direct labor hour. So total cost budgeted for work done is $127,650 = $5.57 x 22,200 hours

The total overhead variance in hours taken  = standard hours of 22,200 - actual direct labor hours of 18,600 = 3,600 hours

The total overhead cost variance  = standard cost - actual cost = $127,650  - $126,540 = $1,110

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A severe cyclone causes substantial damage to a brick manufacturing company's production equipment. As a result, the company spe
Zepler [3.9K]

Answer:

The correct answer is D. indirect cost.

Explanation:

That is, indirect costs are those costs that the company incurs during the exercise of its activity, whose allocation is more complicated, since they are not directly related to production.

In the above case, it is shown that the environmental effect produced by the cyclone is not directly related to the production of the bricks, so it is considered that it corresponds to indirect costs of the operation.

6 0
2 years ago
Consider the following situations for Shocker:
GaryK [48]

Answer:

(a) On November 28, 2018, Shocker receives a $3,000 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited.

Assets = Lower by $ 3,000

Liabilities = No Effect

Stockholders Equity = No Effect

(b) On December 1, 2018, the company pays a local radio station $2,400 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited.

Assets = Higher by $ 2,400

Liabilities = No Effect

Stockholders Equity = No Effect

(c) Employee salaries for the month of December totaling $7,000 will be paid on January 7, 2016.

Assets  = No Effect

Liabilities = Lower by $ 7,000

Stockholders Equity = Higher by  $ 7,000

(d) On August 31, 2018, Shocker borrows $60,000 from a local bank. A note is signed with principal and 8% interest to be paid on August 31, 2019

Assets= Lower by $ 60,000

Liabilities = Lower by $ 60,000

Stockholders Equity = Higher by $4,800

Explanation:

(a) On November 28, 2018, Shocker receives a $3,000 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited.

Recognise an Asset - Cash and a Liability - Deferred Revenue. Only Liability was Recognised

(b) On December 1, 2018, the company pays a local radio station $2,400 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited.

Recognise Asset - Prepaid Advertising and De-recognise Asset - Cash. Only Prepaid Advertising was recognised

(c) Employee salaries for the month of December totaling $7,000 will be paid on January 7, 2016.

Recognise a Liability Salaries Payable and an expense Salaries and Wages. Both items were not recognised

(d) On August 31, 2018, Shocker borrows $60,000 from a local bank. A note is signed with principal and 8% interest to be paid on August 31, 2019

Recognise the Liability - Loan and recognise the asset - Cash. Also recognise the expense that accrue as a result of interest on August 31.

3 0
2 years ago
Wade paid $7,000 for an automobile that needed substantial repairs. he worked nights and weekends to restore the car and spent $
Brrunno [24]
Yes, it would matter. If Wade was primarily concerned with the tax effect, he should give the car to his daughter and let her sell it. Conveniently, the limit on how much one can give without paying federal taxes on that gift (other than to charity), is $13,000. This means wade will pay no tax when he gifts the car to his daughter. If he sells it himself, he will need to pay tax on the gain he realizes on the sale of the car, since he will have made a profit on the sale.

His daughter, when she sells the car, will also have to recognize the gain on the sale of the vehicle. However, she is apparently in a much lower income bracket than Wade, and thus may pay even less tax on her 13,000 gain than Wade would have paid on his $3600 profit.
8 0
2 years ago
Kurt, who is a divisional manager, continually brags that his division’s required return for its projects is 1 percent lower tha
Viefleur [7K]

Answer:

D. Kurt’s division is less risky than the other divisions.

Explanation:

Based on the information provided within the question it can be said that the most likely reason is that Kurt’s division is less risky than the other divisions. Just as the saying goes "the greater the risk, the greater the reward", the same goes for the opposite, the lower the risk that a division has to undertake the lower the percent for the required return.

3 0
2 years ago
The 6.3 percent, semi-annual coupon bonds of PE Engineers mature in 13 years and have a price of $992. These bonds have a curren
ludmilkaskok [199]

Answer:

6.35, 6.39 and 6.49

Explanation:

6.3% = 0.063

yield = 0.063 ×$1,000/ 0.992 yield = 0.063 ×$1,000)/ 0.992 ×$1,000)

Current yield = 0.0635, or 6.35 percent PV = $992 = 0.063× $1,000 / 2) ×{(1 - {1 / [1 + (r / 2)]26}) / (r/ 2)} + $1,000 / [1 + (r / 2)]26 r = .0639, or 6.39 percent EAR = [1 + .0639 / 2)]2 - 1 EAR = .0649, or 6.49

7 0
1 year ago
Read 2 more answers
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