Answer: D. Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
Explanation:
The Manufacturing overhead applied is less than the actual manufacturing overhead incurred by:
= 79,000 - 69,000
= $10,000
Manufacturing overhead is therefore underapplied as the amount applied is too low to cover the amount incurred.
The Cost of Goods sold after closing out is:
= Cost of goods sold before closing out + Underapplied manufacturing overhead
= 243,000 + 10,000
= $253,000
Answer:
The answer is: A) The new machinery can be depreciated using the same method or different method than the previously purchased machinery
Explanation:
Their is no rule that requires a business to always use the same depreciation method for the assets they purchase.
The most common depreciation methods include:
- Straight-line.
- Double declining balance.
- Units of production.
- Sum of years digits.
Depending on the asset a business may consider one depreciation method that better suits it, and another depreciation method for their other assets.
Answer:
$73.58
Explanation:
Total cost of product = $120
Total cost of product = Cost of material + Direct labor + Overhead
Cost of material = (3 * direct labor) - $6
Overhead = ¾ of Direct labor
Total cost of product = 3DL - $6 + DL + ¾ of DL
$120 = 3DL - $6 + DL + 0.75 DL
$126 = 4.75 DL
Direct Labor = 126/4.75
Direct Labor = $26.53
Material cost = 3 * $26.53 - $6
Material cost = $73.58
Answer: centralized
Explanation:
Based on the information given in the question, we can infer that McCoy operates a centralized department.
This is a centralized department because McCoy takes the decisions in the organization. In a centralized department, the organizational structure is such that the power regarding the decision is confined to top management, while the followers just follow the instructions
Answer:
It allowed pre-emptive identification of problems to minimize the impact on customers.
