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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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Tamarisk Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 3

deff fn [24]

Answer:

See explanation section

Explanation:

Give

The cost value for each of the inventory item is as follows:

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D $88

E $94

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G $94

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Now, we determine the net realizable value for each of the product:

Net Realizable Value = Selling price - Cost to compete - Selling costs

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3 years ago

An example of an intermediate good will be:

OlgaM077 [116]

Answer:

b. steel purchased by the aircraft manufacturers.

Explanation:

An intermediate good is a producer good or semi-finished good that is used as an input in the production process in the manufacturing of other goods such as finished goods. An example of an intermediate good in the options given above will be steel that is purchased by the aircraft manufacturers. Steel is a partly finished good used in producing aircraft, as a final or finished good.

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2 years ago

A dressmaker can sew 400 garments with 100 bolts of fabric and 1,500 hours of labor. Another dressmaker can sew 400 garments wit

faust18 [17]

Answer:

No, because the second method has lower total costs of production.

Explanation:

In a bid to make profits businesses must always compare different processes and choose the cheapest one.

This will eventually reflect in the profitability of the business.

In this instance let's get the cost of each process.

Fabric costs $110 a bolt and labor costs $20 an hour.

The first dress maker can sew 400 garments with 100 bolts of fabric and 1,500 hours of labour

Total cost = (100 bolts * 110) + (1500 * 20)

Total cost = $41,000

For the second dress maker he can sew 400 garments with 150 bolts of fabric and 1,000 hours of identical labour

Total cost = (150 *110) + (1000 * 20)

Total cost = $36,500

As can be seen the second dressmaker has a lower cost of production so he is more efficient than the first dress maker

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3 years ago

A photocopier cost 96000 when new and has accumulated depreciation of 95000. if the business discards this plant asset, the resu

Semenov [28]

A photocopier cost 96000 when new and has accumulated depreciation of 95000. if the business discards this plant asset, the result is $1,000.

Cost of photocopier $ 96,000.

Less: Accumulated depreciation $ (95,000).

Loss on discard $ 1,000.

A photocopier (also known as a copier or copier, formerly Xerox machine, a generic trademark) is a machine that copies documents and other visual images onto paper or plastic film quickly and inexpensively.

The photocopier (also known as copier or copier, formerly Xerox machine, generic brand) is a machine that copies documents and other visual images onto paper or plastic film quickly and inexpensively. Most modern copiers use a technology called xerography. It is a dry process that uses the electrostatic charge of a photosensitive photoreceptor to first attract toner particles (powder) and then transfer them to paper in the form of an image.

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1 year ago

The following information pertains to Sheridan Company.

DanielleElmas [232]

Answer:

Adjusted Cash Balance at 31 August 2022 = 9654

Explanation:

Bank Reconciliation Statement at August 31, 2022

Cash Balance as per Bank August 31, $7338

Add: Deposit in Transit $3010

<u>Deduct: Outstanding Checks ($694 )</u>

<u>Adjusted Cash Balance $9,654</u>

<u />

Cash Balance as per books, August 31, $7374

Add: Receivable collected by bank $2326

<u>Less:Bank Service Charges ($46) </u>

<u>Adjusted Cash Balance $9,654 </u>

<u />

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2 years ago