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Alik [6]
3 years ago
13

Markley Manufacturing calculated its predetermined overhead rate to be 120% of direct labor cost. During June, the company incur

red $90,000 of factory labor costs, of which $85,000 is direct labor and $5,000 is indirect labor. Actual overhead incurred was $84,000. Compute the amount of manufacturing overhead applied during the month. Determine the amount of under- or over-applied manufacturing overhead.
Business
1 answer:
Nana76 [90]3 years ago
3 0

Answer:

Applied Manufacturing Overheads are $102,000

Overapplied Manufacturing overheads are $18,000

Explanation:

Under or over applied manufacturing overhead can be determined by comparing the actual and applied manufacturing overheads.

Applied overheads can be calculated by multiplying pre-determined overhead rate and actual level of quantity. Predetermined overhead rate is calculated using estimated overhead and estimated activity on which overheads are applied.

In this question the predetermined overhead rate is 120% of direct labor cost.

Applied overhead = Direct labor cost x 120% = $85,000 x 120% = $102,000

Actual overheads incurred = $84,000

Overapplied Manufacturing overheads = $102,000 - $84,000 = $18,000

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A plant is proposing to install a combined heat and power system to supply electrical power and process steam. Power is currentl
Degger [83]

Answer:

Cumulative net present value of the project is:

= $33.5 million.

The discounted cash flow rate of return is:

= 26%

Explanation:

a) Data and Calculations:

The capital cost of the combined heat and power system = $23 million

Expected net savings per year = $10 million

Project period = 10 years

Discount rate = 12%

Annuity PV factor for 10 years at 12% = 5.650

Total PV of the cash flows = $56.5 million (5.650 * $10 million)

NPV of the project = $33.5 million

Annualized NPV = $33.5 million/5.650

= $5,929,204

Discounted cash flow rate of return = Annualized NPV/Investment * 100

= $5,929,204/$23,000,000 * 100 = 26%

6 0
3 years ago
merchandise costing 1200 is sold for 2200 on term 2/30,n/60. If the customer pays within the discount period. Prepare the journa
spin [16.1K]

Answer:

The journal entries are as follows:

(a) Accounts receivables [$2,200 - 2%] A/c Dr. $2,156

             To Sales revenue                                              $2,156

(To record the sale)

(b) Cost of Goods Sold A/c Dr. $1,200

          To inventory                                $1,200

(To record the cost of goods sold)

(c) Cash A/c Dr. $2,156

       To Accounts receivables  $2,156

(To record payment within discount term)

3 0
3 years ago
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,050 in assets in exchange for i
hoa [83]

Answer:

$3,260

Explanation:

Preparation of December statement of cash flows for Ernst Consulting

ERNST CONSULTING Income Statement

For Month Ended October 31

REVENUES

Consulting fees earned $17,450

Total revenues $17,450

EXPENSES

Rent expense $4,530

Salaries expense $8,090

Telephone expense $880

Miscellaneous expenses $690

Total expenses $14,190

Net income $3,260

($17,450-$14,190)

Therefore December statement of cash flows for Ernst Consulting will be $3,260

5 0
2 years ago
Anderson Manufacturing​ Co., a small fabricator of​ plastics, needs to purchase an extrusion molding machine for ​$180 comma 000
vlabodo [156]

Answer:

1st     46,398.83

2nd    49,646.74

3rd      53,122.02

4th      56,840.56

5th       60,819.40

Explanation:

given a growing annuity we have to solve for the installement

FV = \frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}

FV = PV (1+r)^5 = 180,000 x 1.14^5 =  346,574.62  

grow rate 0.07

interest rate 0.14

n = time     5

346,574.62 = C  \times \frac{1-(1+0.07)^{5}\times (1+0.14)^{-5} }{0.14 - 0.07}

C = 46398.8284

Now, to determiante the subsequent payment we multiply by the grow rate of 1.07

6 0
3 years ago
Current account and ______ account are the two major components of a statement that summarizes all debit and credit transactions
alina1380 [7]

current account and 2 years after acount are the two major components of a statement that summarizes all debit and credit transactions of one country with the rest of the world.

6 0
2 years ago
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