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4 years ago

If actual manufacturing overhead costs are less than the applied manufacturing overhead, then manufacturing overhead is:

Business

1 answer:

Genrish500 [490]4 years ago

8 0

Answer:

Under applied

Explanation:

Actual manufacturing overhead costs are those amounts of overhead costs that are incurred by a firm during production processes.

Applied manufacturing overhead costs are those costs that are added to jobs as they near completion. Usually, as work or job nears completion during the year, the predetermined overhead rate and actual activity level are used to apportion them.

In general, manufacturing overhead costs are those costs that are not direct labor costs or direct material costs; which is made of expenses like equipment and lightening. It could either be under or over applied. It is under applied as in the above while it is over applied when the actual manufacturing overhead costs are more than the applied manufacturing overhead costs.

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A steel company manufactures heavy-duty brackets for the shelving industry. The company has budgeted for the production and sale

alexandr402 [8]

Answer:

Contribution margin per unit = $11.90

Explanation:

Given:

Total unit sale = 1,000,000

Unit selling price of a bracket = $22.50

Direct material required = 4 pounds per unit

Direct labor required = 0.15 hours per unit

Cost of material per pound = $1.75

Direct labor cost per hour = $9.00

Total variable selling cost = $2,250,000

Find:

Contribution margin per unit = ?

Computation:

Direct material per unit = 4 pounds per unit × $1.75

Direct material per unit = $7

Direct labor per unit = 0.15 hours per unit × $9.00

Direct labor per unit = $1.35

Variable selling cost per unit = Total variable selling cost / Total unit sale

Variable selling cost per unit = $2,250,000 / 1,000,000

Variable selling cost per unit = $2.25

Contribution margin per unit = Sales per unit - Variable cost per unit

Contribution margin per unit = Sales per unit - [Direct material per unit + Direct labor per unit + Variable selling cost per unit]

Contribution margin per unit = $22.50 - [$7 - $1.35 - $2.25]

Contribution margin per unit = $22.50 - [$10.6]

Contribution margin per unit = $11.90

4 0

3 years ago

Amortization Entries Kleen Company acquired patent rights on January 10 of Year 1 for $2,800,000. The patent has a useful life e

iogann1982 [59]

Answer:

a. The patent amortization expense for Year 4 ended December 31 is $357,600.

b. Debit Amortization expense for $357,600; and Credit Accumulated amortization - Patent for $357,600.

Explanation:

Patent acquisition cost = $2,800,000

Number of years to use for amortization patent acquisition cost = Useful life equal = Legal life = 8

Lawsuit at a cost = $38,000

Number of years to amortize the lawsuit cost = Number of years to use for amortization – Numbers of years from January Year 1 to January Year 4 = 8 – 3 = 5

Therefore, we can now have:

a. Determine the patent amortization expense for Year 4 ended December 31.

Patent amortization expense for Year 4 = (Patent acquisition cost / Number of years to use for amortization patent acquisition cost) + (Lawsuit cost / Number of years to amortize the lawsuit cost) = ($2,800,000 / 8) + ($38,000 / 5) = $357,600

Therefore, the patent amortization expense for Year 4 ended December 31 is $357,600.

b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization.

The journal entry will look as follows:

Details Debit ($) Credit ($)

Amortization expense 357,600

Accumulated amortization - Patent 357,600

(To record Patent amortization.)

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3 years ago

Brenda and Felicity each deposit $200 in the same type of interest-earning

Brrunno [24]

Answer:

Explanation:

8 0

3 years ago

Congress missed the fact that various agencies with responsibility for supervising the banking industry were negligent in identi

stira [4]

Answer:

oversight.

Explanation:

Oversight can be defined as an unintentional failure to notice a mistake or error, or an unintentional failure to act upon an event caused by an error.

Both the FED and the SEC should have noticed that the financial system was in a really bad shape way before Bear Stearns and Lehman Brothers collapsed, or AIG (and others) needed a huge bailout. Apparently both the FED and SEC were all too optimistic about the market and their optimism blinded them. As always the consequences of negligent public servants were paid mostly by the average taxpayer.

5 0

3 years ago

The steeper an isoquant is (labor measured on the horizontal axis): A. the greater is the level of output. B. the greater is t

Volgvan

Answer:

C. the greater is the marginal productivity of labor relative to that of capital

Explanation:

An isoquant is a curve that shows all the combinations of inputs that yield the same level of output.

When adding one factor holding the other factor constant inevitably, leads to lower output levels, the isoquant must become steeper, as more capital is added instead of labour, and flatter when labour is added instead of capital. Returns to capital even decline.

8 0

3 years ago

Read 2 more answers