Answer:
The correct answer is credit to cash by $320..
Explanation:
According to the scenario, Journal entry of the given data are as follows:
Journal entry
Delivery expense A/c Dr $66
Merchandise inventory A/c Dr $219
Misc. Expense A/c Dr $35
To Cash A/c $320 ( $66 + $219 + $35)
(Being reimbursement of the account is recorded )
Hence, reimbursement of the account includes credit to cash by $320.
Answer:
fixed overhead is accounted for
Explanation:
The difference between reported net income on variable costing and absorption costing income statements is based on how:fixed overhead is accounted for
Answer:
Results are below.
Explanation:
Giving the following information:
Estimated direct labor hours= 135,000
Estimated varaible overhead= $337,500
Estimated fixed overhead= $540,000
<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>
<u></u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
<u>Variable:</u>
Predetermined manufacturing overhead rate= 337,500/135,000= $2.5 per direct labor hour
<u>Fixed:</u>
Predetermined manufacturing overhead rate= 540,000/135,000= $4 per direct labor hour
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