Answer:
Department M
Manufacturing overhead rate = $600,000/200,000 hrs = $3/hr
Department A
Manufacturing overhead rate = $400,000/800,000 hrs = $0.5/hr
Manufacturing overhead cost allocated:
Department M = $3 x 8,000 = $24,000
Department A = $0.5 x 12,000 = $6,000
Total manufacturing cost allocated = $30,000
Explanation:
This relates to overhead absorption. The manufacturing overhead rate is calculated as budgeted manufacturing overhead divided by budgeted direct labour hour.
Manufacturing overhead allocated = manufacturing overhead rate x actual labour hour for each department for the job.
Answer: Option (c) is correct.
Explanation:
Given that,
Beginning work in process = 20,000 units and 70% completed
So, Units transferred = 20,000 × 30%
= 6,000
Direct transferred = 80,000 units
Ending work in process = 10,000 × 40%
= 4,000
Therefore,
Units were transferred out of the process in June:
= Beginning WIP transferred + Direct transferred + Ending work in process
= 6,000 + 80,000 + 4,000
= 90,000 units
Answer:
C. Anchoring
Explanation:
The first price to be mentioned will have an effect on the perception of all future prices. If we start with $200, then $100 will seem cheap, but £1000 seem expensive. But if we start with $10, then $100 will seem expensive.
The anchor for a price perception may be found in the first price mentioned. It can also arrive in the mind of the purchaser, where the anchor may have been set by previous experience.
Answer:
The correct answer is Less than the estimated costs.
Explanation:
The percentage method completed is an accounting practice used to recognize income in long-term contracts.
When long-term projects (greater than one year) are undertaken, the costs and revenues associated with it are incurred throughout its life.
This accounting method, as its name suggests, allows the company to account for part of the associated income and expenses incurred as the project phases are completed. Thus, the percentage complete method is understood as a method of recognition of recognition of income and expenses that is applied continuously without having to defer income and expenses at the end of the project.
