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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

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Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of u
Elan Coil [88]

Answer:

Option (B) is correct.

Explanation:

Number of units produced in total  = M + XY

                                                         = 108,000 + 72,000

                                                         = 180,000

Total Overhead Cost = $72,000 + $50,000 + $355,000

                                   = $477,000

The total overhead allocated to Product XY using the current system:

= (Total Overhead Cost ÷ number of units produced in total) × Number of Units of Product XY

= ($477,000 ÷ 180,000) × 72,000

= $190,800

4 0
3 years ago
PlastiPharm produces a foundational product that sits on a shelf until it is needed and added to another product. In reviewing t
Alexxx [7]

PlastiPharm would want to perform the additional testing because:

  • The additional testing helps the company as it strives for perfection in its products and helps avoid future problems by reducing waste (defective parts). (Option C)
  • Testing all the parts addresses any questions that customers might have about quality or performance of materials. (Option D)

<h3>Why do manufacturers carry out testing?</h3>

Rigorous testing is usually carried out by companies to ensure that defects and hazards are detected before the products are sent out into the market.

This way, their liability from product defects is reduced or eliminated completely.

Learn more about testing at;
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8 0
2 years ago
What should a manager ideally do after implementing a solution to a given work-related problem?
Alecsey [184]

After implementing a solution to a given work related problem the manager should evaluate the outcome of the solution

Explanation:

A manager should have leadership qualities where he or she is in charge of the entire group of people in the industry and is responsible for any mistakes or errors caused by the employees.

He or she should know how to tackle and provide solutions to a problem that is being faced by the company.

A manager should be a good role model for his/her subordinates and encourage them in solving their problems by themselves.

6 0
3 years ago
If a currency such as the​ US$ is traded in a competitive​ market, a(n)​ ________ in demand for the​ US$ ________ the price of t
Lerok [7]

Answer:

If a currency such as the​ US$ is traded in a competitive​ market, a(n)​ increase in demand for the​ US$ raises the price of the​ US$ in terms of another currency such as the Japanese Yen ​(yen​).

Explanation:

Basic offer and demand law.

5 0
3 years ago
Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outc
lozanna [386]

Answer:

B) $90,000

Explanation:

The market value of the unlevered equity can be calculated using the following formula:

Expected value = Σpx

Where:

p = the probability of each outcome =50% in this case for both weak and strong economy.

x = the present value of cash flow for each outcome which is $90,000 in case of weak economy and $117,000 in case of strong economy.

Expected value= 0.50(90,000(1+15%)^-1)+0.50(117,000(1+15%)^-1)

                         =0.50(78,260.87)+0.50(101,739.13)

                         =$90,000

So the answer is B) $90,000

5 0
3 years ago
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