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evablogger [386]
3 years ago
13

Highland Industries makes custom yachts using a job cost accounting system. In anticipation of a busy year for 2019, Highland’s

accountant estimated the following overhead costs for 2019: Machinery maintenance $181,350 Utilities $226,380 Supervision $191,000 Materials handling cost $67,000 Building occupancy costs $98,270 Indirect materials $31,650 In the past, Highland has used direct labor hours to allocate overhead to the various yacht building jobs and they anticipate using the same for 2019. Highland anticipates using a total of 72,000 direct labor hours in 2019. At the beginning of 2019, Highland had no yachts in process or finished but did have $202,000 in raw materials left over from 2018. During 2019, Highland began work on 3 yachts (A, B, C). They also purchased and paid for $2,355,000 in raw materials. The predetermined overhead rate using direct labor hours for 2019 would be:
Business
1 answer:
il63 [147K]3 years ago
3 0

Answer:

predetermined overhead per direct labor hour: $11.02

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

To solve for overhead rate we determinate the expected cost and distribute them over a cost driver which is, in this case; direct labor hours

<u>Expected overhead cost:</u>

Machinery maintenance   $   181,350

Utilities                              $  226,380

Supervision                        $   191,000

Materials handling cost     $    67,000

Building occupancy costs $    98,270

Indirect materials               $<u>     31,650 </u>

Total overhead:                 $  795,650

Total direct labor:    72,000

Overhead rate:   795,650 / 72,000 = 11.0206944= $11.02

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The option for this question are the following:

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B. Statistical

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D. Feedforward

The correctt answer is D. Feed forward.

Explanation:

Feedforward is the process by which feedback between company members focuses more on future possibilities. That is to say, it is not only about communicating but about doing it thinking about increasing the opportunities that the company has and will be able to have later.

The problem we had when we talked about feedback was that it focused on aspects of the past. Communication was thought of as something of the moment, without determining an intention to take it to another level. The ‘feed’ forward would come into play here.

What is intended with the feedforward is to establish links and ideas, so that teamwork makes business organization easier. Brainstorming and the sharing of solutions and aspects for the company mean that employees can aspire to a positive work future.

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3 years ago
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The American Baker’s Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent inc
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Answer:

Optimal package size = 4 units

Optimal package price = $20

Explanation:

P = 8 - 1.5Q and C(Q) = 2.0Q, MC = 2

To obtain optimal package size, we put

Price is equal to the marginal cost, P = MC

8 - 1.5Q = 2

     1.5Q = 6

          Q = 6 ÷ 1.5

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Therefore,

Optimal package size = 4 units

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Optimal package price:

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3 years ago
just paid its annual dividend of $1.15 per share. The required return is 12.3 percent and the dividend growth rate is 0.75 perce
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Answer:

P5 = 10.41

Explanation:

To calculate the stock value with dividends for the fifth year the following formula would be used:

P5 = \frac{Div_{0}  * (1 + g)^{6} }{(r-g)}

  • Where:
  1. Div_{0} = The first Dividend Paid.
  2. G = Growth Rate.
  3. R = Required Return.
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Div_{0} = $1.15

Growth Rate = 12.3%

R = 0.75%

P5 = ?

  • Substituting the values in the formula

P5 = \frac{1.15 * (1 + .0075)^{6} }{(12.3-.0075)} = 10.41

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3 years ago
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Answer:

C. $12 billion.

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