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3 years ago

Managers use a predetermined overhead rate for which of the following reasons?

Business

1 answer:

Rashid [163]3 years ago

4 0

Answer:

Option A and B

Explanation:

The company desires to estimate the cost of the job so that it can minimize it by emphasizing control. This is one of the major reasons why the companies estimate cost of the job, product or service. So option A is correct.

Option B is also correct because the companies have to form contracts with its customers and for that reason predetermined overhead rates helps a lot estimating the price of the product which the company and customer can agree upon.

Option C is incorrect because predetermined costs are estimates and estimates are not always accurate.

Option D is false because daily recording of overheads requires predetermined overhead rates which is adjusted at the month end or quarter end or year end. So its not useless at all.

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Answer:

Raisa, Mariah, Calvin

Explanation:

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3 years ago

Read 2 more answers

MG Lighting had sales of 500 units at $100 per unit last year. The marketing manager projects a 15 percent decrease in unit volu

kakasveta [241]

Answer:

The answer is: Projected net sales for this year are $45,254

Explanation:

The current total sales for MG Lighting are $50,000 (= 500 units x $100 per unit).

Next year their products will have a $10 increase (10%), so the unit price will be $110.

Due to the price increase, the number of units sold will decrease by 15%, to a total of 425 units.

MG Lighting total sales will be $46,750. Approximately 3.2% of the total sales will be returned (equivalent to $1,496).

MG Lighting net sales for this year should be $45,254 (= 46,750 - $1,496)

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4 years ago

Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has alw

svetoff [14.1K]

Answer:

Results are below.

Explanation:

Giving the following information:

Estimated Value Actual Value

Manufacturing overhead cost $732,000 $842,000

Direct labor hours 14,640 hours 16,600 hours

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= 732,000 / 14,640

Predetermined manufacturing overhead rate= $50 per direct labor hour

Now, we can allocate overhead:

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

Allocated MOH= 50*16,600

Allocated MOH= $830,000

Finally, the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 842,000 - 830,000

Underapplied overhead= $12,000

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3 years ago

5) name 5 reasonable possibilities to earn money online.

Slav-nsk [51]

Advertisement, drop shipping, making a website, affiliate marketing,blog

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3 years ago

Susan saved $5000 per year in her retirement account for 10 years (during age 25-35) and then quit saving. However, she did not

sladkih [1.3K]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Susan:

Annual deposit= $5,000 for 10 years

Lumo-sum for 30 years

Interest rate= 8.5%

Jane:

Annual deposit= $5,000 for 30 years.

First, we will calculate the future value of Susan:

First 10 years:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,000*[(1.085^10)-1]}/0.085

FV= $74,175.50

Last 30 years:

FV= PV*(1+i)^n

FV= 74,175.50*(1.085^30)

FV= $857,050.14

Jane:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,000*[(1.085^30)-1]}/0.085

FV= $621,073.63

Earnings difference= 857,050.14 - 621,073.63= $235,976.51 in favor of Susan.

8 0

3 years ago