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1 year ago

Exercise 4-36 (Algo) Application of Overhead [LO 4-4, 4-6]

Business

1 answer:

vesna_86 [32]1 year ago

7 0

1. The predetermined overhead rate is <u>$28 per professional hour</u>.

2. Norton will send Central Texas Bank the total amount of the bill of <u>$472,750</u>.

<h3>What is the predetermined overhead rate?</h3>

The predetermined overhead rate is the quotient of the estimated overhead costs divided by the estimated cost driver units.

The estimated cost driver units are the allocation base for the overhead.

The predetermined overhead rate allocates manufacturing overhead costs to cost objects (product or service units).

<h3>Data and Calculations:</h3>

Estimated overhead costs = $616,000

Estimated professional hours for the year = 22,000

Predetermined overhead rate = $28 ($616,000/22,000)

<h3>Total Billing:</h3>

Direct materials $ 48,000

Direct professional hours ($55/hour) 1,700 = $93,500 (1,700 x $55)

Overhead = $47,600 (2,700 x $28)

Total cost = $189,100

Markup =283,650 ($189,100 x 1.5)

Total billing = $472,750

Thus, the total amount that Norton will send Central Texas bank is <u>$472,750</u>.

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Barbara operates a sporting goods store. She uses the cash method and treats inventory as nonincidental supplies. At the beginni

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Answer:

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Goods are purchased and added to the the beginning inventory, the sale for the period is deducted from it. the residual value is the value of ending Inventory.

In This question it is assumed that there is $26,000 of beginning inventory of the goods. $470,000 of the purchases were made and at the end of the year there was $42,000 balance of inventory.

We can calculate the deduction value as follow

Ending Inventory = Beginning Inventory + Purchases - deduction

$42000 = $26,000 + $470,000 - deduction

$42000 = $496,000 - deduction

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3 years ago

Which way of preparing for a test does not use the Growth Mindset?

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The Growth Mindset is a principle that describes the mindset of believing that one can get better. It is the belief that your basic skills can be horned to be better by constantly working towards it.

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Does Audit services needed in Auchi polytechnic student union government? If yes,why

Zepler [3.9K]

Audit services is one that is needed in Auchi polytechnic student union government to know if the student body use the money allocated to them in the right manner or for the right project.

<h3>What is the student union?</h3>

The student union is known to be a body that is composed of student of any university, polytechnic or college institution.

It is known to be a body that is autonomous and one whose internal life set up its own by-laws.

Note that the student unions are often allocated funds by the university or polytechnic and as such they have to use the audit service because some of their leaders may squander the money given to them., So this will help to checkmate them.

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1 year ago

A deadweight loss is a consequence of a tax on a good because the tax a. induces the government to increase its expenditures. b.

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Answer:

B) induces buyers to consume less, and sellers to produce less.

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Taxes are a necessary evil since they always increase the price of the goods and services that consumers buy and decrease the amount of money that producers receive from selling their goods and services. But taxes are necessary and unavoidable.

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If the price elasticity of demand or supply of a certain good is large (elastic demand and supply), the deadweight loss will be greater.

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