True. One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.
<h3>What is a predetermined overhead rate?</h3>
This is the term that is used to refer to the allocation rate that is used in the determination of the estimated cost of the manufacturing overhead. It is used to show in either the order of the product or that of the job.
Hence based on this question we can say that it is true because the reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.
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Answer:
$1,194
Explanation:
The buying price of the shares was $12,780
The selling price was $7 dollars for each.
The total amount realized is 2000 share x $ 7
=$14,000
The commission paid is $26
Net amount obtained is $14,000 -$26
=$13,974
Profit will be $13,974 -$12,780
=$1,194
The journal entry for the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.
The government levies a consumption tax known as a sales tax on the purchase of goods and services. At the point of sale, a standard sales tax is imposed, collected by the retailer, and paid to the government. Companies must first apply for a sales tax permit from their state's department of taxation in order to be able to collect sales tax from customers. Every time a customer makes a purchase, businesses collect sales tax, which they subsequently monthly or quarterly send to the state.
As the selling price of the merchandise is $2,600 and the state sales tax is 6%, this means that 6% of $2,600 has to be paid to the state governing body.
Sales tax = 6% of 2600
Sales tax = 6/100 × 2600
Sales tax = 0.06 × 2600
Sales tax = $156
Therefore; the entry to journalize the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.
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Answer:
Explanation:
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