Answer:
Option (C) is correct.
Explanation:
Given that,
Estimated overhead cost = $1,540,000
Estimated direct labors (in dollars) = $3,360,000
Estimated direct labor hours = 240,000
Actual overhead cost = $1,240,000
Predetermined overhead rate:
= Estimated overhead cost ÷ Estimated direct labor hours
= $1,540,000 ÷ 240,000
= $6.42 per direct labor hour
Answer:
a. $3.13 per unit
b. No
c Yes
Explanation:
The computation is shown below
a. Fixed overhead per unit is
= Fixed overhead ÷ Number of units manufactured
= $363,000 ÷ 116,000 units
= $3.13 per unit
b. The cost calculation is not appropriate because the fixed overhead per unit is not be involved while calculating the cost
c. Now the acceptance of the offer should be based on total relevant cost which is
Total relevant cost
= $6.1 + $6.1 + $8.1
= $20.3
Since the offer is accepted because total relevant cost is less than the offered purchase price i.e $24.50
Answer:
D
Explanation:
All tips income is taxable
Answer:
The correct answer is option (B).
Explanation:
According to the scenario, the given data are as follows:
Total cost = $8,600
Total units = 400 Units
Direct labor hour per unit = 5
Variable cost = $1.50
So, we can calculate the fixed cost by using following formula:
Fixed cost = Total cost - Total Direct labor cost
Where, Total direct labor cost = $1.50 × 5 × 400 = $3,000
By putting the value in the formula, we get
Fixed cost = $8,600 - $3,000
= $5,600
Answer:
RecRoom Equipment Company
Date Particulars Debit Credit
1Nov Note Receivable $ 13,200
Account Receivable $ 13,200
RecRoom Equipment Company received an $13,200, six-month, 7 percent note to settle an $13,200 unpaid balance owed by a customer.
31 December Interest Receivable $ 924
Interest Revenue $ 924
To record the accrued interest earned. $13,200*7%= $ 924. As it is for two months the amount would be $ (924/12)*2= $ 154
1 May Cash $ 13,662
Interest Income $ 462
Notes Receivable $ 13,200
RecRoom receives the interest on the note's maturity date. RecRoom receives the principal on the note's maturity date.
