Answer:
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Explanation:
The computation is shown below:
Year Depreciation Book value
0 $1,200,000
1 $125,000 $1,075,000
2 $125,000 $950,000
3 $125,000 $825,000
4 $125,000 $700,000
5 $125,000 $575,000
6 $125,000 $450,000
7 $125,000 $325,000
8 $125,000 $200,000
The depreciation expense is
= ($1,200,000 - $200,000) ÷ (8 years)
= $125,000
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Estimates:
Direct labor-hours required to support estimated output 18,000.
Fixed overhead costs $ 198,000.
Variable overhead cost per direct labor-hour $ 1.00
A) overhead rate= (fixed + variable cost)/direct labor hour
Overhead rate= (198000 + 1*18000)/18000= 12
B) Direct materials $ 719
Direct labor cost $ 177
Direct labor-hours used 7
Manufacturing overhead= $1* 7= $7
Answer:
b. The indirect method
Explanation:
The Operating Activity Section Calculates the Net Cash flow from Operating Activities. It can be prepared in only two methods according to IAS 7.The methods are Indirect Method, Direct Method
Indirect Method Reconciles the Net Income for the Year to the Net Cash flow from Operating Activities after adjustments of Non- Cash flow Items, and Adjustments for Working Capital Movements.
Direct Method focuses on the Cash Inflows and Outflows related to the Operating activities to Calculate the Net Cash flow from Operating Activities.These Cash flows results from Receipts from Customers and Payments made to Suppliers and Employees
Mario is exhibiting the defense mechanism: rationalization. Mario justifies his controversial decision and behavior (his decision not to report all of his income) in rational or logical manner. This defense mechanism has two steps. The first step is the <span>decision itself with no reason, and the second step is when the <span>rationalization is performed</span></span> .
