First of all, the predetermined overhead will be calculated.
Predetermined overhead rate = Estimated manufacturing overhead / Estimated direct labor hour
Predetermined overhead rate = $ 258,000 ÷ 15,000 hours = $ 17.20 per direct labor hour
Actual manufacturing overheads = $ 253,000
Applied manufacturing overheads = Predetermined overhead rate × Actual direct labor hours
Applied manufacturing overheads = $ 17.20 × 13,100 = 225,320
Applied manufacturing overheads are less than actual manufacturing overheads, thus overheads are under applied.
Actual manufacturing overheads - Applied manufacturing overheads = $ 27,680 under applied
Medical Association of Billers is the insurance claims organization that offers certification as a certified medical Billing specialist. It is a membership organization that provides health care billing training and education, CEUs, and the cerified Medical Billing specialist (CMBS) exam.
Answer:
2 hours of labor
Explanation:
Labor is hired up to a point where the marginal product of labor * Price of the output = wage of the worker.
Thus, 35 * 10 = 350.
35 widgets are produced using 2 hours of labor.
Answer:
Explanation:
1. True
Separation of record keeping for assets from custody over assets in custody over assets reduces theft and fraud . except in a case of collusion.
Fraud and theft of assets can be easily perpetrated and covered up when an individual combines the role.
2. False
Internal control focuses more on the internal operation of an organization rather than the external. Even though it can still be of impact in checking the excesses of external parties like the government agencies , but that is not its primary objective
3.True
Internal control's main objectives can be best accomplished when there is an operational system with managerial policies that protect waste , fraud and theft , being the major factors targeted to control
4.False
Separating the responsibility for a transaction between two or more individuals or departments is a major way of preventing creation of fictitious invoices and payment as it could have easily be detected if different individuals are involved in approval and payment of invoices.
<span>Process costs are costs that limit the occurrence of defects and imperfections. Process costing is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process. ... It is a method of assigning costs to units of production in companies producing large quantities of homogeneous products.</span>
