Answer:
C) underapplied overhead of $5,000
Explanation:
If the Actual Overheads > Applied Overheads, we say overheads are under-applied.
and
If the Applied Overheads < Actual Overheads, we say overheads are over-applied.
where,
Applied Manufacturing Overheads = Predetermined Overhead Rate × Actual Hour
and
Predetermined Overhead Rate = Estimated Overhead ÷ Estimated Total Hours
= $100,000 ÷ 10,000
= $10.00 per direct labor hour
Thus,
Applied Manufacturing Overheads = $10.00 x 10,500 direct labor hours
= $105,000
therefore,
Actual Manufacturing Overheads = $110,000
Applied Manufacturing Overheads = $105,000
Overheads under-applied = $5,000 ( $110,000 - $105,000)
Answer:
It's called a Normal Good
Explanation:
Normal Goods are a type of goods whose demand shows direct relations with a consumer's income. The consumption of a normal good increases with the increase of a consumer's income, if the income decreases the consumption decreases.
Normal goods have a positive income elasticity of demand. Income elasticity of demand measures the magnitude with which the quantity demanded for a good changes in reaction to a change in income. A normal good has an income elasticity positive, but minor to one.
In this case, if the price of a good increases, the income of the consumer decreases, therefore it consumes fewer quantities of the product. An example of a normal good is Organic food.
An inferior good has an income elasticity of demand negative, meaning that if the income increases, the consumption decreases. An example of an inferior good is margarine if the income increases, consumers will start buying a superior product like butter.
A Luxury good presents an income elasticity of demand superior to one. The consumption of a luxury product increases more than proportional to the increase in income. An example of a luxury good is luxury cars.
Answer:
Explanation:
Amount of Bolton Company inventory = 38,972
Calculations are attached
1. Find net realizable value, which is selling price - cost of disposal;
2. Then subtract normal profit from net realizable value = [g];
3. Find designated market value by choosing the middle value of cost to replace, net realizable value and [g];
4. Choose lowest between designated market value and selling price;
5. Multiply by quantity.
Answer:
$2,000
Explanation:
Net book value at the end of the 3rd year=26,000-((26,000-2,000/6)*3)
=$14,000
Since the useful life of machine is now revised from the 6 years to 10 years, therefore the total remaining useful life of machine is now 7 years instead of 3 years and accordingly the depreciation from year 4 to year 10 shall be calculated as follows:
Depreciation per year from year 4 to year 10=*14,000-0)/7=$2,000
