They most likely drop the prices
Answer:
Explanation:
The journal entry is shown below:
On April 1
Franchise A/c Dr $180,000
To Cash A/c $18,0000
(Being the purchase of a franchise is recorded)
On December 31
Franchise Amortization Fee A/c Dr $13,500
To Franchise A/c $13,500
(Being the franchise amortization fee is recorded)
The computation is shown below:
= $180,000 ÷ 10 years × 9 months ÷ 12 months
= $13,500
Answer:
variable overhead rate 11.96 dollars
Explanation:
5,189,000 manufacturing overhead from which:
2,486,000 are fixed so:
<u>variable overhead: </u>5,189,000 - 2,486,000 = 2,703,000
this overhead is generated from machine hours thus we divide the expected overhead over the machine hours to know the rate.
2,703,000 / 226,000 = 11.96017699 = $ 11.96 variable overhead rate
