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3 years ago

True or False: One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.

Business

1 answer:

Ganezh [65]3 years ago

3 0

Answer:

True

Explanation:

Predetermined overhead rate is estimated at the start of the period by dividing the estimated manufacturing overhead cost by an allocation base. Predetermined overhead rate is quite useful especially in eliminating seasonal effects. So, the above statement is a true one important reason to apply the predetermined overhead rate is to mitigate the effects of seasonal factors.

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The Bert Corp. and Ernie, Inc., have both announced IPOs. You place an order for 1,150 shares of each IPO. One of the IPOs is un

Tems11 [23]

Answer:

The Bert Corp. and Ernie, Inc.

The profit expected is:

= $2,875.

Explanation:

a) Data and Calculations:

The Bert Corp. Ernie, Inc.

IPO order placed 1,150 shares 1,150 shares

Underpriced by $18.00

Overpriced by $6.50

Profited expected $10,350 -$7,475

Net profit = $2,875 ($10,350 - $7,475)

b) The profit expected is generated from the underpriced stock. This profit is reduced by the increased cost incurred on the over-priced stock. Therefore, the net profit is the difference between the profit and the additional cost incurred.

8 0

3 years ago

Sidwan, owner of Jacuzzi Warehouse, said, "We have to focus on our customers and how we can beat the competition, so we have to

hjlf

Answer:

The remaining part of the question is:

A) clan culture.

B) goal-driven agenda.

C) adhocracy culture.

D) market culture.

E) focused approach.

Correct Answer:

D) market culture.

Explanation:

His suggestion of his research and development team to develop innovative products for the emerging changes in markets for his customers shows that, Jacuzzi Warehouse has a market culture.

5 0

3 years ago

Many companies who deliver their own product to their stores through their own trucks are using ________ as a way to offset expe

sergij07 [2.7K]

Answer: E) backhauls.

Explanation:

Backhauls are known as the parcel delivery process used by the means of transport by which they collect packages at various stops while also delivering couriers so that the truck is not empty upon return.

For example, a truck must take a package from point A to point B, on the way to point B it picks up a 2nd package, after delivering the 1st package at point B it carries the 2nd package back to point A. Therefore the truck was never empty throughout the journey.

I hope this information can help you.

8 0

4 years ago

Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 27,000 units.

harkovskaia [24]

Answer:

Walker Company

a. Merchandise Purchases Budget for the months of July, August, and September:

July August September

Sales units 210,000 290,000 290,000

Ending inventory 43,500 43,500 27,000

Goods available 253,500 333,500 317,000

Beginning inventory 31,500 43,500 43,500

Purchases 222,000 290,000 273,500

b. The ratio of ending inventory to the next month's sales = 15% (Ending Inventory/Sales next month * 100)

c. The units budgeted for sale in October = 180,000 units.

Explanation:

a) Data and Calculations:

September ending inventory = 27,000 units

Ending inventory always equal to 15% of budgeted sales for the following month.

Sales (Units) Purchases (Units)

July 210,000 222,000

August 290,000 290,000

September 290,000 273,500

October 180,000

July August September October

Sales units 210,000 290,000 290,000 180,000

Ending inventory 43,500 43,500 27,000

Goods available 253,500 333,500 317,000

Beginning inventory 31,500 43,500 43,500 27,000

Purchases 222,000 290,000 273,500

6 0

3 years ago

A company purchased a new truck at a cost of $42,000 on June 1, 2019. The truck is estimated to have a useful life of 7 years. T

Xelga [282]

Answer:

C. $3,500

Explanation:

The formula for a straight-line method of depreciation is provided below:

annual depreciation charge=(cost-salvage value)/useful life

cost of the new truck=$42,000

salvage value=$0

useful life=7 years

depreciation=($42,000-$0)/7=$6,000( same as given in the question)

The truck was used for 7 months in the first year ended, from June 1 2019 to December 31 2019

Depreciation for the first year=$6000*7/12=$3,500

4 0

3 years ago