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netineya [11]
3 years ago
6

Trust Company applies overhead based on direct labor hours. At the beginning of the year, Trust estimates overhead to be $700,00

0, machine hours to be 200,000, and direct labor hours to be 35,000. During February, Trust has 5,000 direct labor hours and 10,000 machine hours. What is the amount of overhead applied for February?
Business
1 answer:
Svetradugi [14.3K]3 years ago
6 0

Answer:

$100,000

Explanation:

Data provided in the question:

Estimated overhead = $700,000

Estimated machine hours = 200,000

Estimated Direct labor hours = 35,000

Direct labor hours for February = 5,000

Now,

The Predetermined Overhead Rate is calculated as

= ( Estimated Overhead Cost ) ÷ ( Estimated Direct Labor hour )

or

Predetermined Overhead Rate = $700,000 ÷ 35,000

or

Predetermined Overhead Rate = 20 per direct labor hour

Therefore,

The amount of overhead applied for February

= Predetermined Overhead Rate × Direct labor hours for February

= 5,000 × $20

= $100,000

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The following information is from ABC Company's general ledger: Beginning and ending inventories, respectively, for raw material
Sholpan [36]

Answer:

cost of goods manufactured= $176,000

Explanation:

Giving the following information:

Direct materials:

Beginning inventory= $16,000

Ending inventory= $20,000

Purchase= $72,000

WIP:

Beginning inventory= $40,000

Ending inventory= $44,000

Direct labor= $72,000

Manufacturing overhead applied= $40,000

T<u>o calculate the cost of goods manufactured, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 16,000 + 72,000 - 20,000= 68,000

cost of goods manufactured= 40,000 + 68,000 + 72,000 + 40,000 - 44,000

cost of goods manufactured= $176,000

8 0
3 years ago
Assume each month has 30 days and AmDent has a 60-day accounts receivable period. During the second calendar quarter of the year
AlladinOne [14]

Answer:

The correct answer is E

E. February, March and April

Explanation:

Payment for February will be received in April

Payment for March will be received in May

Payment for April will be received in June

the second quarter is April. May and June

5 0
3 years ago
The result of market research are used to identify the for a product
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To identify and define marketing opportunities and problems
6 0
3 years ago
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 48,000 mini refrigerators, of whi
Anvisha [2.4K]

Answer:

Part a.

Income statement based on the absorption costing concept.

Sales                                                                                      $8,800,000.00

Less Cost of Sales

Beginning  Inventory                                          $0

Add Manufacturing Cost                          $6,048,000.00

Less Ending Inventory                                ($504,000.00) ($5,544,000.00)

Gross Profit                                                                            $3,256,000.00

Less Expenses :

Selling and administrative expenses:

Variable                                                      $528,000.00

Fixed                                                           $352,000.00     ($880,000.00)

Net Income/(loss)                                                                   $2,376,000.00

Part b.

Income statement based on the variable costing concept.

Sales                                                                                      $8,800,000.00

Less Cost of Sales

Beginning  Inventory                                          $0

Add Manufacturing Cost                          $5,520,000.00

Less Ending Inventory                                ($460,000.00) ($5,060,000.00)

Contribution                                                                            $3,740,000.00

Less Expenses :

Fixed manufacturing cost                          $528,000.00

Selling and administrative expenses:

Variable                                                      $528,000.00

Fixed                                                           $352,000.00      ($1,408,000.00)

Net Income/(loss)                                                                    $2,332,000.00

Part c.

Reason : Fixed Costs deferred in Ending Inventory in Absorption Costing has resulted in a higher Income.

Explanation:

<u>Units in Ending Inventory Calculation :</u>

Production                             48,000

Less Sales                            (44,000)

Ending Inventory                    4,000

Absorption Costing Calcs

<u>Variable Manufacturing Costs</u>

Direct materials                         $3,360,000.00

Direct labor                                 $1,344,000.00

Variable manufacturing cost        $816,000.00

Fixed manufacturing cost            $528,000.00

Total                                           $6,048,000.00

Ending Inventory =  $6,048,000.00 × 4,000 / 48,000

                            =   $504,000

Variable Costing Calcs

<u>Variable Manufacturing Costs</u>

Direct materials                         $3,360,000.00

Direct labor                                 $1,344,000.00

Variable manufacturing cost        $816,000.00

Total                                           $5,520,000.00

Ending Inventory =  $5,520,000.00 × 4,000 / 48,000

                            =   $460,000

4 0
3 years ago
Describe the abilities of someone with analytical/research skills. Somebody please help me!!!!!!!!!!!!!
Neko [114]
Somebody whose job is to provide analytics or research should always be someone who is very good at quantitative analysis.  They should be good with math and numbers, because their job is to analyze a business.  The same goes for research.  A good researcher is good at math because they have to analyze large datasets.  This person would also be pretty detail-oriented because they need to make sure that they are not making small mistakes, as small mistakes could result in poor decisions that come out of their analysis.

Does that make sense?
8 0
3 years ago
Read 2 more answers
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