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jonny [76]
3 years ago
15

Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1,20

20, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $21,000, direct labor $ 12,600, and manufacturing overhead $16,800. As of January 1, Job 49 had been completed at a cost of $94,500 and was part of finished goods inventory. There was a $15,750 balance in the Raw Materials Inventory account.
During the month of January, Lott Company began production on Jobs 51 and 52,and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $128,100 and $ 165,900, respectively. The following additional events occurred during the month.

1. Purchased additional raw materials of $94,500 on account.

2. Incurred factory labor costs of $73,500. Of this amount $16,800 related to employer payroll taxes.

3. Incurred manufacturing overhead costs as follows:

4. Assigned direct materials and direct labor to job as follows.

Job No. Direct materials Direct Labor
50 $10,500 $5,250
51 40,950 26,250
52 31,500 21,000
Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $ 882,000, direct labor costs of $735,000, and direct labor hours of 21,000 for the year.

Predetermined overhead rate _____%
Business
1 answer:
diamong [38]3 years ago
4 0

Answer:

Estimated manufacturing overhead rate= $42 per direct labor hour.

Explanation:

Giving the following information:

Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $ 882,000, direct labor costs of $735,000, and direct labor hours of 21,000 for the year.

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

Estimated manufacturing overhead rate= 882,000/21,000= $42 per direct labor hour.

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Record the following transactions for the month of November 2019 in the cash receipts journal. Total, prove, and rule the cash r
gregori [183]

Answer and Explanation:

The presentation of the cash receipt journal is as follows;

<u>Date   Description    Account     Sale      Sale     Title      Amount   Cash </u>

<u>                                   Receivable tax       Credit    of                        debit</u>

<u>                                   Credit        Payable           Account</u>

<u>                                                     Credit</u>

Nov 1    Katie Bing       $2,300                                                               $2,300

Nov 10  Collection

 From mike drake                                             Note receivable  $3,700

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Nov 13 Jessie cole      $4,100                                                                   $4,100

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7 0
3 years ago
One e-commerce distribution and logistics expert advises that outsourcing to a fulfillment company only makes good financial sen
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Answer: fund

Explanation:

Outsourcing simply has to do with when a particular company hires an outside company to help with a particular job function which was originally done by the hiring company.

It should be noted that this will only make financial sense if the entrepreneur has sufficient funds than the time. In a scenario, wherby there's no fund available, then the company should be able to do whatever it wants to do itself.

3 0
3 years ago
Many American companies enter china through joint ventures with local firms, but china is succeeding in the United States primar
boyakko [2]

Answer:

(1) The preference of the Chinese firms to expand through outright purchase which aides them to retain key positions in order to have a firm control on the business.

(2) Chinese companies are ready to take more risk than American companies

(3) Chinese companies are more interested in opportunities to provide growth and innovation.

Explanation:A Joint venture business is  a business organisation owned by two or more persons or organisations who pull resources together in order to achieve a common goal.

The resources pulled together can be in the form of finance, expertise,infrastructures etc, a joint venture business is also another form of merger known commonly with profit making organisations.

8 0
3 years ago
Interest During Construction Dexter Construction Corporation is building a student condominium complex; it started construction
svet-max [94.6K]

Answer:

$140,500

Explanation:

first we must calculate the weighted average accumulated expenditures:

incurred costs as follows:

January 1: $280,000 x 12/12 = $280,000

March 1: $600,000 x 10/12 = $500,000

June 30: $1,000,000 x 6/12 = $500,000

November 1: $480,000 x 2/12 = $80,000

total = $1,360,000

now we must calculate the weighted average interest rate on the non construction debt:

12% x $3 million = $360,000

10% x $1.8 million = $180,000

total = $540,000 / ($3,000,000 + $1,800,000) = 11.25%

capitalized interest:

$1,000,000 x 10% (specific construction debt) = $100,000

$360,000 x 11.25% (non construction debt) = $40,500

total $140,500

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