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3 years ago

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The Thomlin Company forecasts that total overhead for the current year will be $11,100,000 with 160,000 total machine hours. Yea

r to date, the actual overhead is $7,950,000 and the actual machine hours are 81,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is

1 answer:

katrin2010 [14]3 years ago

5 0

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

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

Predetermined manufacturing overhead rate= 11,100,000/160,000

Predetermined manufacturing overhead rate= $69.375 per machine hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 69.375*81,000

Allocated MOH= $5,619,375

<u>Finally, we can determine the under/over allocation:</u>

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 7,950,000 - 5,619,375

Under/over applied overhead= $2,330,625 underallocated

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gladu [14]

After accounting for bad debt expense, the remaining amount in the allowance for doubtful accounts is $7,950.

<h3>What is bad debt?</h3>

Bad debt, sometimes referred to as uncollectible accounts expense, is a sum of money owed to a creditor that is unlikely to be paid and for which the creditor is not willing to take action to collect for a variety of reasons, frequently due to the debtor not having the money to pay, for example due to a company going into liquidation or insolvency. Depending on accounting practices, regulatory considerations, and the institution provisioning, there are many technical definitions of what a bad debt is. Bank loans in the USA are referred to as "problem loans" if they are more than 90 days overdue. Accounting sources recommend deducting the entire amount of a bad debt from profit and loss or from a provision for bad debts as soon as it is anticipated.

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1 year ago

World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company

slega [8]

Answer:

Following are the solution to this question:

Explanation:

Please find the complete question in the attachment file.

Applied to fixed overhead

Overhead fixed by DL hr. $=\frac{50000}{25000}\ \ \ \ \ \ \ \ \ \ \ =2$

DL hours standard $=35000 \times \frac{25000}{50000 \times 80\%} \ \ \ \ \ \ \ \ \ \ \ \ =21875$

Application of fixed overhead $= 21875 \times 2.0 \ \ \ \ \ \ \ \ \ \ = 43750$

Variance in volume

Application of total fixed overhead $= \$43,750$

Fixed total estimates Superfast $=\$50,000$

Variance of volume $= \$6,250$

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2 years ago

Westmoreland Corporation prepared its statement of cash flows for the year. The following information is taken from that stateme

vitfil [10]

Answer:

Cash Balance at the beginning of the year = $4,600

Explanation:

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3 years ago

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notka56 [123]

Answer:

B. They make choices based on their self-interests.

Explanation:

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In a market economy, businesses and firms tend to have an increased of a very high rate of efficiency when producing goods and services such that they minimise or lower the cost of production while ensuring that they make high or huge amounts of profits.

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3 years ago

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3 years ago