1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xz_007 [3.2K]
3 years ago
10

Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the bas

is for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs were 4,780. If the actual factory overhead totaled $141,800, determine the over- or underapplied amount for the month
Business
1 answer:
Dennis_Churaev [7]3 years ago
5 0

Answer:

Over/under allocation= $7,575 overallocated

Explanation:

Giving the following information:

The estimated factory overhead= $1,250,000.

Estimated machine-labor hours= 40,000 hours.

The machine hours for April for all of the jobs were 4,780. If the actual factory overhead totaled $141,800.

<u>I will divide the answer in 3 steps. First, we need to calculate the estimated overhead rate. Then, we allocate overhead based on actual machine-hours. Finally, we determine the over/under allocatio</u>n:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

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

Estimated manufacturing overhead rate=  1,250,000/40,000= $31.25 per machine hour

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 31.25*4,780= $149,375

Finally, we calculate the under/over allocation:

Over/under allocation= real MOH - allocated MOH

Over/under allocation= 141,800 - 149,375= $7,575 overallocated

You might be interested in
Hannah runs a hospitality business with Ray and Susan, backed by a group of investors who provide the funding but rely on Hannah
12345 [234]

Answer:

A trust

Explanation:

A trust is a kind of business that acts as a fiduciary or a trustee of property on behalf of another party.

Typical functions of a trust includes administration and management of the business.

The assets are eventually meant to be transferred to another person.

In the given scenario Hannah is running a hospitality business which she recieve backing from investors.

The investors have entrusted Hannah with the running of the business. So this is a trust

3 0
3 years ago
How can you best protect your own intellectual property?
Studentka2010 [4]

Answer:

Explanation:

The four primary ways to protect intellectual property are:

Copyrights.

Trademarks.

Patents.

Trade secrets.

5 0
2 years ago
Self-confident people tend to be willing to take more ________, which helps build more relationships.
soldier1979 [14.2K]
Judging by the sentence wording I'm guessing the missing word would be "risks"
8 0
3 years ago
Four companies computed their days' sales in inventory as follows: Company A: 47.2 Company B: 36.5 Company C: 45.1 Company D: 39
Leviafan [203]

The most efficient and effective in managing its inventory is Company B.

<h3>Who is the most efficient?</h3>

The days' sales in inventory  is a financial ratio that measures the rate at which a firm is able to sell its inventory in a given year. The lower the ratio, the more efficient a firm is in selling its inventory.

Days' sales in inventory = number of days in a period / inventory turnover

Inventory turnover =  cost of goods sold / average inventory

To learn more about financial ratios, please check: brainly.com/question/26092288

#SPJ1

7 0
2 years ago
What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and
siniylev [52]

Answer:

a. The expected return on the equally weighted portfolio of the three stocks is 16.23%.

b. The variance of the portfolio is 0.020353.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.

a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

This can be calculated using the following 2 steps:

Step 1: Calculation of expected returns under each state of the economy

Expected return under a state of the economy is the sum of the multiplication of the percentage invested in each stock and the rate of return of each stock under the state of the economy.

This can be calculated using the following formula:

Expected return under a state of the economy = (Percentage invested in Stock A * Return of Stock A under the state of the economy) + (Percentage invested in Stock B * Return of Stock B under the state of the economy) + (Percentage invested in Stock C * Return of Stock C under the state of the economy) …………… (1)

Since we have an equally weighted portfolio, this implies that percentage invested on each stock can be calculated as follows:

Percentage invested on each stock = 100% / 3 = 33.3333333333333%, or 0.333333333333333

Substituting the relevant values into equation (1), we have:

Expected return under Boom = (0.333333333333333 * 0.09) + (0.333333333333333 * 0.03) + (0.333333333333333 * 0.39) = 0.17

Expected return under Bust = (0.333333333333333 * 0.28) + (0.333333333333333 * 0.34) + (0.333333333333333 * (-0.19)) = 0.143333333333333

Step 2: Calculation of expected return of the portfolio

This can be calculated using the following formula:

Portfolio expected return = (Probability of Boom Occurring * Expected Return under Boom) + (Probability of Bust Occurring * Expected Return under Bust) …………………. (2)

Substituting the relevant values into equation (2), we have::

Portfolio expected return = (0.71 * 0.17) + (0.29 * 0.143333333333333) = 0.162266666666667, or 16.2266666666667%

Rounding to 2 decimal places as required by the question, we have:

Portfolio expected return = 16.23%

Therefore, the expected return on the equally weighted portfolio of the three stocks is 16.23%.

b. What is the variance of a portfolio invested 16 percent each in A and B and 68 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.)

This can be calculated using the following 3 steps:

Step 1: Calculation of expected returns under each state of the economy

Using equation (1) in part a above, we have:

Expected return under Boom = (16% * 0.09) + (16% * 0.03) + (68% * 0.39) = 0.2844

Expected return under Boom = (16% * 0.28) + (16% * 0.34) + (68% * (-0.19)) = -0.03

Step 2: Calculation of expected return of the portfolio

Using equation (2) in part a above, we have:

Portfolio expected return = (0.71 * 0.2844) + (0.29 *(-0.03)) = 0.193224

Step 3: Calculation of the variance of the portfolio

Variance of the portfolio = (Probability of Boom Occurring * (Expected Return under Boom - Portfolio expected return)^2) + (Probability of Bust Occurring * (Expected Return under Bust - Portfolio expected return)^2) …………………….. (3)

Substituting the relevant values into equation (3), we have:

Variance of the portfolio = (0.71 * (0.2844 - 0.193224)^2) + (0.29 * (-0.03- 0.193224)^2) = 0.020352671424

Rounding to 6 decimal places as required by the question, we have:

Variance of the portfolio = 0.020353

Therefore, the variance of the portfolio is 0.020353.

Download pdf
7 0
2 years ago
Other questions:
  • Bank of America customers select their own three- digit personal identification number (PIN) for use at ATMs.
    13·1 answer
  • 2 â__________ segmentation is done according to an objective measurable, physical, or other classification attribute of potentia
    11·1 answer
  • Which step of the financial planning process involves devising strategies to help accomplish financial goals?
    14·1 answer
  • he HR department at Bailey Services is considering offering telecommuting as an option to some experienced employees. At a meeti
    11·2 answers
  • _____ involves developing separate marketing strategies for a number of segments.
    13·1 answer
  • the temporary difference is $60 million. Payne has no other temporary differences and no valuation allowance for the deferred ta
    12·1 answer
  • A mortgage is a document in which a lender reclaims a property due to lack of payment by the borrower.
    12·2 answers
  • On March 7, a buyer and a seller execute a contract for the purchase of the seller's property. Closing is set for June 10. On Ap
    5·1 answer
  • What did andy davis do to change eddies behaviour?
    8·1 answer
  • Debra tracks her business finances in a spreadsheet. She wants to figure out how much she could increase profits if she raises p
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!