Answer:
$256,284
Explanation:
The computation is shown below:
First, Calculate the predetermined overhead rate per hour which equals to
= (Estimated manufacturing Overhead cost ÷ estimated machine hours)
= ($235,900 ÷ 20,800 hours)
= $11.34 per hour
So, the applied overhead or manufacturing overhead allocated equals to
= Predetermined overhead rate per hour × actual machine hours
= $11.34 per hour × 22,600 hours
= $256,284
The copyright purchased will be amortized over 6 years useful life.
$120,000 / 6 years = $20,000/annum
The patent purchased will be amortized over the useful life of 4 years
$54,000 / 4 years = $13,500 / annum
Goodwill is not amortized. But rather is checked for impairments.
<h3>What is Amortization?</h3>
Amortization is the systematic allocation of costs over the useful life of asset. The asset may be an intangible, if it is a tangible it is depreciated.
The life over which the asset is amortized is lower of useful and legal life, in both the cases the useful life was lower than the legal life.
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Answer:
$2,000
Explanation:
1. straight-line method
depreciation expense = $3,000 and $3,000
accumulated depreciation = $6,000
book value $30,000
2. double-declining-balance method
depreciation expense $7,200 and $5,760
accumulated depreciation = $12,960
book value = $23,040
3. units-of-production method is used.
depreciation expense $1,500 and $5,040
accumulated depreciation = $6,540
book value = $29,460
Answer:
<em>(A) It is easier to determine the individual product cost for a manufacturer than it is for a wholesaler.</em>
<em>(B) In general, indirect costs are assigned, while direct costs are allocated.</em>
<u><em>Both of the statements are false regarding cost allocations and product costing.</em></u>
<em>Product cost are known as the costs that are incurred to make up a commodity. These costs include labor, materials, supplies, and overhead. Cost allocation is referred to as the distribution of a cost to respective objects such as products .</em>
Answer: $5,610,000
Explanation:
Earnings before Interest and tax = $10,000,000
Earnings before tax (EBT) = EBIT - Interest
= 10,000,000 - 1,500,000
= $8,500,000
EBT is in the $335,000-$10,000,000 range.
Tax is therefore = Tax on base of bracket + Percentage on Excess above Base (EBT - Base of bracket)
= 113,900 + 34%( 8,500,000 - 335,000)
= $2,890,000
Net Income = EBT - Tax
= 8,500,000 - 2,890,000
= $5,610,000