All Rite Manufacturing reported the following:

Ogan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year

Radda [10]

Answer:

Predetermined manufacturing overhead rate= $14.65 per direct labor hour

Explanation:

Giving the following information:

Estimated direct labor hours= 40,000

Estimated fixed overhead= $466,000

Estimated variable overhead rate= $3.00 per direct labor-hour.

<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (466,000/40,000) + 3

Predetermined manufacturing overhead rate= $14.65 per direct labor hour

5 0

3 years ago

On January 1, Gucci Brothers Inc. started the year with a $690,000 balance in Retained Earnings and a $597,000 balance in common

Yuri [45]

Answer:

$1,388,200

Explanation:

The total stock holders equity as at the end of the year shall be determined as follows:

Common stock Retained Earnings Total

Balance of Jan 1 $597,000 $690,000 $1,287,000

Net income for year $96,000 $96,000

Dividend paid ($14,800) ($14,800)

Common stock $20,000 $20,000

Balance at year end $617,000 $771,200 $1,388,200

7 0

3 years ago

Read 2 more answers

The following information pertains to the West Division of Burger Company:

GenaCL600 [577]

Answer:

D) $4,550

Explanation:

Contribution margin = Net Sales - Total Variable cost

Net sales $6,000

Les: Variable costs:

Cost of merchandise sold $1,000

Operating expenses <u> $450 </u>

Contribution Margin $4,550

All other costs are fixed cost which are not used in contribution margin calculation.

So the correct answer is D) $4,550.

3 0

3 years ago

Entertainment Tonight, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days.

Solnce55 [7]

The estimated cost of the assurance-warranty is $350. The accounting for warranty will include a credit to Unearned Warranty Revenue, $900

Explanation:

Entertainment Tonight, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days. Entertainment Tonight also offers an optional extended coverage plan under which it will repair or replace any defective part for 2 years beyond the expiration of the assurance-type warranty. The total transaction price for the sale of the stereo system and the extended warranty is $3,000. The standalone price of each is $2,300 and $900, respectively. The estimated cost of the assurance-warranty is $350. The accounting for warranty will include a credit to Unearned Warranty Revenue, $900.
Unearned extended warranty revenue is given to be as an unearned revenues in accrued liabilities in the balance sheets.
Revenue which comes from separately priced, self-insured service contracts is reffered at the point of sale.
Unearned revenue is a money which is received from a customer for work that has not been performed still.

7 0

3 years ago

The ________ of the term structure states the following: the interest rate on a long-term bond will equal an average of short-te

rjkz [21]

Answer:

liquidity premium theory

Explanation:

The liquidity premium theory states that those that invest in bonds do prefer high liquid as well as securities that are short-dated so that it can be sold fast compare to long-dated ones. It states that investors do get compensation for higher default risk when there is change in interest rate.

It should be noted that The liquidity premium theory of the term structure states the following: the interest rate on a long-term bond will equal an average of short-term interest rates expected to occur over the life of the long-term bond plus a term premium that responds to supply and demand conditions for that bond.

7 0

2 years ago

All Rite Manufacturing reported the​ following:

All Rite Manufacturing reported the following: