Answer:
Allocated overhead= $1,430,600
Explanation:
Giving the following information:
The company's executives estimated that direct labor would be $3,750,000 (250,000 hours at $15/hour) and that factory overhead would be $1,550,000 for the current period.
The records show that there had been 230,000 hours of direct labor.
Using direct labor hours as a base.
Predetermined overhead rate= total estimated manfacturing overhead for the period/ total amount of allocation base
Predetermined overhead rate= 1555000/250000= $6.22 per hour
Allocated overhead= Predetermined overhead rate*actual hours= 6.22* 230000= $1,430,600
Answer:
<em><u>Convenience products.</u></em>
Explanation:
Convenience products are those goods or services that are purchased by the consumer with high frequency without comparison criteria or high purchasing efforts. These products are widely distributed so that the consumer has the availability of purchase at any time. Examples include magazines, fast food, detergents and beverages.
Some of its features are:
- Low price,
- Classified as non-durable goods,
- High frequency of replacement at points of sale,
- Easy replacement products
Answer:
$118,860
Explanation:
Gross Margin:
= Revenue - Cost of Goods Sold
= $290,000 - $100,000
= $190,000
Profit before tax:
= Gross Margin - Salaries - Insurance payment - Interest
= $190,000 - $12,000 - $3,600 - $4,600
= $169,800
Insurance payment: Only half of 2-year payment of 7,200 is relevant for this year.
Net Income:
= Profit before tax - Tax at 30%
= $169,800 - (30% × $169,800)
= $169,800 - $50,940
= $118,860
Answer: $41,520
Explanation;
Equivalent units of production are used when some goods have not been fully processed but costs need to be attached to them. The incomplete ones will be converted to complete goods depending on how far along the production process they are.
Equivalent units for conversion costs = Transfers out during October + Ending WIP * Percentage completion
= 37,800 + (5,700 * 60%)
= $41,520
Answer:
D. $952
Explanation:
The computation of the net income in the case when the LIFO is elected
Particulars AMount
Net sales $7,232 ($8,000 - $640 - $128)
less : cost of goods sold ($6,200 - $820) $5,380
Gross Profit $1,852
Less: Operating Expenses $900
Income before taxes $952
less: Income tax $0
Net income $952
Hence, the net income is $952