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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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c) $86,823

Explanation:

The balance in the lease payable after two years will be: $86,823

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3 years ago
Total Output Price Marginal Revenue Average Total Cost Marginal Cost 1 $ 100 $ 100 $ 100.00 $ 30 2 90 80 63.00 26 3 80 60 52.67
mario62 [17]

At the  profit-maximizing output, this firm's total profit will be $280.

<h3>Who is a monopolist?</h3>

A monopolist is a single firm that operates in an industry. There is only one firm in the industry because there are usually high barriers to entry of firms. The demand curve is downward sloping. A monopoly sets the price for its goods and services.

Profit is maximised when marginal revenue is equal to marginal cost. Looking at the given table, marginal revenue is equal to marginal cost when output is 4 and price is $70

Total profit = 70 x 4 = $280

To learn more about monopolies, please check: brainly.com/question/10441375

8 0
2 years ago
81) When a seller advertises an item at a low price but once in store pushes a similar item at a higher price, the seller is par
storchak [24]

Answer:

E) bait and switch

Explanation:

BAIT AND SWITCH can be defined as a way in which a seller use advert of a low price to deceive and attract customers to their shop in which the products or item advert by seller is not available in order to sell similar or separate product to the customer at a higher price instead of selling the same product with a low price advertised by the seller.

Example a seller may advert a quality Italian shoe with a low price of $50 in order to deceive a buyer or customers to their place of business by then selling a similar product of shoe that looks like the one advertise by them to the customer at a higher price of $300.

5 0
2 years ago
Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Panarin has provided the following ana
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Answer:

a. The 2 contracts should be combined.

b. $123,000 for Contract A

$82,000 for Contract B

c. Revenue should be recognized when control of goods has transferred to the customer.

Explanation:

Part a:

Answer: Yes. The 2 contracts should be combined.

Reasoning:

5-step revenue recognition model indicates identification of contracts with customer in the first step, identification of performance obligations of the contract in the second step, transaction price determination in the third step, allocation of transaction price to the performance obligations to the fourth step and recognition of revenue as the performance obligations in the fifth step. Therefore, two contracts should be combined.

Part b:

Calculate the amount of revenue should P associate with each of the contracts.

There are two performance obligations:

Goods from contract A ($120,000 + ($5000 x 60%)) = $123000

Goods from contract B ($80,000 + ($5000 x 40%)) = $82000

Reasoning: It is given that the stand-alone prices for Contract A is $120,000 and Contract B is $80,000. Contract price of Contract A is $125,000. Thus, the additional $5,000 should be split between the 2 contracts. Hence, the performance obligations for goods from contract A is $123,000 and goods from contract B is $82,000.

Part C:

Revenue should be recognized when control of goods has transferred to the customer.

Reasoning:

Performance obligation is satisfied when transfer the good or service to the customer. Recognize revenue when the performance obligation is satisfied is the fifth step of the 5-step revenue recognition model. Hence, revenue should be recognized when control of goods has transferred to the customer.

7 0
3 years ago
Assume Kader Company has the following reported amounts: Sales revenue
jok3333 [9.3K]

Answer:

100

Explanation:

1000 expensives of the more u do in the book

8 0
3 years ago
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