Answer:
Predetermined manufacturing overhead rate= $1.6016 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours 250,000
Estimated manufacturing overhead costs $400,400
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 400,400 / 250,000
Predetermined manufacturing overhead rate= $1.6016 per direct labor hour
Answer:
Gain from the sale of this machine = $54
Explanation:
Sales price for the equipment = $497
Carrying amount of the equipment = $443
Lease term = 1 year
Estimated remaining useful life = 10 years
This is a type of Sale and lease back transaction. It is not a capital lease as the lease term (1 year) is not for the major period of remaining useful life (10 years) of equipment. No consideration will be given to annual lease payment and all the gain will be recognized immediately without deferment.
Gain from the sale of this machine = Sales price for the equipment - Carrying amount of the equipment
= $497 - $443
= $54.
Answer:
c. All of these are correct
Explanation:
Marketing research refers to assembling, analyzing and processing information, which is used to determine and create the marketing strategies a firm shall follow.
Marketing research refers to analyzing such data which helps a business to create define applicable marketing strategies in a given scenario.
A firm may carry out it's own marketing research or outsource the same function to marketing research companies or advertising agencies.
Hence all three, Marketing research companies, Advertising agencies and companies that produce or sell goods may conduct marketing research.
The ones that should consider investing or accept the
project is both Joe and Rich because even if Joe has a required return of 8.5 %
and Rich demands for a return of 12.5 %, they can still accept the project as they have the capability of investing with the project that they are to accept.
Answer:
c. $59,000
Explanation:
The cash flow statements shows the effect of the company's activities on cash. These activities are classed into operating, investing and financing activities.
When an asset is sold, the amount received from the sale is an inflow of cash to the company. This inflow is recognized in the investing segment of the cas flow statement.
Hence, the amount that should be reported as a source of cash under cash flows from investing activities is $59,000.