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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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Ski West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $75.

Setler79 [48]

Answer:

a) It will accrue revenue through time. As in November 6th it has the obligation to keep the downhill ski open or return the cash

cash 405 debit

unearned reveue 405 credit

--to record sales of season pass--

unearned revenue 81 debit

service revenue 81 credit

--year-end adjustment for accrued revenue--

Income statetent

service revenue 81

Balance sheet

Liaiblities

unearned revneue 324

Explanation:

We must recognize revneue following the acounting pricniples of conservatisim and matching when the time at they occur.

405 is the cost for 5 months (Dec 1st to April 30th)

so 405 / 5 = 81 cost per month

At decmeber 31th we recognize 1 month

ANd this will be the value included in the income statement

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3 years ago

Richard had always run individual, unrelated advertisements for his business. Now, however, he is creating a series of promotion

tia_tia [17]

Answer:

A promotional campaign

Explanation:

APEX Verified

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4 years ago

On July 1, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9-year life with a residual value of $1

UkoKoshka [18]

Answer:

a. Depreciation expense per hour:

= (Cost - salvage value) / Expected operating hours

= (228,000 - 16,000) / 26,500

= $8 per hour

b. First year depreciation: Second year depreciation:

= 1,250 * 8 = 2,755 * 8

= $10,000 = $22,040

Third year depreciation:

= 1,225 * 8

= $9,800

Journal entries

Date Account Title Debit Credit

June 30, Year 1 Depreciation $10,000

Accumulated Depreciation $10,000

Date Account Title Debit Credit

June 30, Year 2 Depreciation $22,040

Accumulated Depreciation $22,040

Date Account Title Debit Credit

June 30, Year 3 Depreciation $9,800

Accumulated Depreciation $9,800

4 0

3 years ago

Dropshot Corporation stock currently sells for $64.53 per share. The market requires a return of 8 percent on the firm’s stock.

Debora [2.8K]

Answer:

D=$1.52914

The most recent dividend per share paid on the stock is $1.52914.

Explanation:

Formula we are going to use is:

$P=D*\frac{1+g}{r-g}$

Where:

P is the current selling price

D is he recent dividend per share

g is the growth rate

r is the rate of return

Above formula will become:

$D=\frac{P*(r-g)}{1+g} \\D=\frac{\$64.53*(0.08-0.055)}{1+0.055}$

D=$1.52914

The most recent dividend per share paid on the stock is $1.52914.

7 0

4 years ago

Federal express has a(n) ________________ in logistics and customer service, since these are activities it does especially well

andrezito [222]

The answer to this question is that federal express has a core competence. Core competence is the main strenghts or advantages of a business or the company in order for them to become competitive in the market. The concept of Core competency was introduced by Gary Hamel and Prahalad. Core competency is what the business or company can do to their customers and their expertise that is unique that can be valued by the customers.

8 0

3 years ago