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Dovator [93]
3 years ago
5

Pinnacle Corp. budgeted $700,000 of overhead cost for the current year. Actual overhead costs for the year were $650,000. Pinnac

le's plantwide allocation base, machine hours, was budgeted at 100,000 hours. Actual machine hours were 80,000. A total of 100,000 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is a.$8.75 per machine hour b.$6.50 per machine hour c.$7.00 per machine hour d.$8.13 per machine hour
Business
2 answers:
olganol [36]3 years ago
8 0

Answer:C. $7.00 per machine-hour

Explanation:

PLANT-WIDE FACTORY OVERHEAD RATE = Predetermined overhead cost ÷ predetermined plantwide allocation base

Therefore, Required parameters to calculate plantwide factory overhead rate for the year.

Predetermined overhead cost for the year = $700,000

Predetermined plantwide allocation base (Machine-hours) = 100,000

PLANT-WIDE FACTORY OVERHEAD RATE = $700,000 ÷ 100,000 = $7

$7 PER MACHINE-HOUR

juin [17]3 years ago
6 0

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Pinnacle Corp. budgeted $700,000 of overhead costs for the current year.

Pinnacle's plantwide allocation base, machine hours, was budgeted at 100,000 hours.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 700,000/100,000= $7 per machine-hour.

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Answer:

c. the analysis of receivables method.

Explanation:

In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact the amount of the adjustment when applying the analysis of receivables method.

The uncollectible account for receivables includes loans, credit sales or other debts that the business isn't expecting payment for and they are recorded as bad debt expense on the balance sheet.

The allowance for doubtful account method is used to account for the bad debt expense, and recorded before the bad debt occurs.

Basically, there are two (2) main methods of determining uncollectible accounts for receivables under the allowance method, these are;

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In this scenario, we are more concerned with this;

The analysis of receivables method is used to determine uncollectible account for receivables based on the age of respective accounts receivable.

4 0
3 years ago
Ichabod Industries has a Latin American Division, a European Division, an Industrial Lubricants Division, and a Food Service Div
Naily [24]

Answer:

Answer is option A i.e. hybrid combination.

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4 0
4 years ago
Select the correct answer.
djverab [1.8K]

Answer:

c is the answer to the question

Explanation:

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3 0
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McLeod Inc. is considering an investment that has an expected return of 8% and a standard deviation of 10%. What is the investme
Rudik [331]

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3 years ago
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