Answer:
b. $11.52.
Explanation:
Standard Cost is the budgeted cost that business estimates to be for the a specific period. Actual cost may be difference from the standard cost.
Standard Material cos = 1.2 meter x $0.85 = $1.02 per unit
Direct labor cost = 0.1 x $15 = $1.5 per unit
Overhead applied rate = $9 per unit
Total cost per unit = $1.02 + $1.5 + $9 = $11.52
The standard cost is $11.52 per unit
Answer:
The correct answer to this question is C) the adjustment entry would be debit to allowance for doubtful account and credit to account receivables.
Explanation:
Under the given allowance method, if a company or sole proprietor identifies a customer's receivables account as un collectible, than that amount ( un collectible ) would be deducted from the accounts receivables. Now by making the deduction from the account receivables would only have the effect on balance sheet not the income statement because for such losses an adjustment entry of bad debt expense has been made in income statement. The adjustment entry for uncollectibe receivables would be debit to allowance for account receivables and credit to account receivables.
Answer:
The predetermined overhead rate for the recently completed year would be $25.66
Explanation:
The predetermined overhead rate is computed as;
= Total estimated manufacturing overhead / estimated direct labor
Where;
Total estimated manufacturing overhead = Estimated total fixed manufacturing overhead + estimated variable manufacturing overhead rate × estimated labor hours
= $1,196,840 + $2.82 × 52,400
= $1,196,840 + $147,768
= $1,344,608
Therefore,
Predetermined rate = $1,344,608 / 52,400 hours
Predetermined rate = $25.66
Answer:
Compensating balance
Explanation:
Compensating balance is when the borrower agrees to maintain an amount of cash in his account.
The lender can invest this money and this reduces the cost of borrowing
