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sashaice [31]
3 years ago
11

Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its m

ost recent year of operations. Estimated manufacturing overhead $132,440 Estimated machine-hours 2,800 Actual manufacturing overhead $128,600 Actual machine-hours 2,750 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The overhead for the year was:
Business
2 answers:
Viefleur [7K]3 years ago
7 0

Answer:

The overhead for the year was: $130,075.

Explanation:

We have the following formula to determine overhead for the year:

+ Overhead for the year = Predetermined overhead rate ($ per machine hour) x Actual machine hours;

in which:

+ Predetermined overhead rate = Estimated manufacturing overhead  / Estimated machine-hours = 132,440 / 2,800 = $47.3/machine hour.

+ Actual machine hours is given at 2,750 hours.

=> Overhead for the year = Predetermined overhead rate ($ per machine hour) x Actual machine hours = 47.3 x 2,750 = $130,075.

So, the answer is $130,075.

loris [4]3 years ago
5 0

Answer:

The overhead for the year was $130,075

Explanation:

GIVEN INFORMATION -

                                                    ESTIMATED                              ACTUAL

Manufacturing overhead            $132,440                                   $128,600

Machine hours                             2800                                           2750

Here for calculating the overhead for the year we will use the following formula =      

\frac{Estimated Manufacturing Overhead}{Estiamted Machine Hours}\times Actual Machine Hours

= \frac{\$132,440}{2800}\times 2750

\$47.3\times 2750 = \$130,075

Therefore the overhead for the year was $130,075

                                   

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(B) 330,000 Margin of Safety_{usd}

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Explanation:

(A)

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275 - 150 = <u>125 CM per unit</u>

\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}

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{units \: sold- BEP_{units} = margin \: of \: safety_{units}

3,000 - 1,800 = 1,200 Margin of Safety_{units}

HOW? we Calculate the contribution per unit. Then the BEP in units and with that the margin of safety in units.

(B)

\frac{Contribution Margin}{Sales Revenue} = $Contribution Margin Ratio

125/275 = 0.45454545 = <u>5/11 CM ratio</u>

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

225,000/(5/11) = 495,000 BEP USD

{current \:sales - BEP_{USD} = margin \: of \: safety

825,000-495,000 = 330,000 Margin of Safety_{usd}

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<em><u>Important:</u></em> When posible to avoid rounding errors express as fraction iof posible

(C)

\frac{current \:sales - BEP_{USD}}{current \:sales} \times 100 = margin \: of \: safety

\frac{330,000}{825,000} \times 100 = margin \: of \: safety

Margin of Safety 40%

8 0
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Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs includ
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So, the projected net income is

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We simply applied the above formula so that the projected net income could be come

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In 2010, real GDP was $13.2 trillion and nominal GDP was $14.6 trillion. What was the GDP deflator for that year?a. 9.6% lower b
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5 0
2 years ago
Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The coll
Burka [1]

Answer:

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