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matrenka [14]
3 years ago
7

The Collins Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate i

s based on machine hours in Dept. A and labor cost in Dept. B. At the beginning of the year, the company made the following estimates: Dept A Dept B Direct labor cost $65,000 $42,000 Manufacturing overhead $91,000 $48,000 Direct labor-hours 8,000 10,000 Machine-hours 3,000 12,000 What predetermined overhead rates would be used in Dept A and Dept B, respectively
Business
1 answer:
maxonik [38]3 years ago
5 0

Answer:

Predetermined overhead rate for department A = 1.4

Predetermined overhead rate for department B = $4

Explanation:

The computation of predetermined overhead rates would be used in Dept A and Dept B, is shown below:-

The predetermined overhead rate for department A =  Manufacturing overhead ÷ Machine hours

= $91,000 ÷ $65,000

= 1.4

The predetermined overhead rate for department B =  Manufacturing overhead ÷ Machine hours

= $48,000 ÷ 12,000  hours

= $4

So, we have applied the above formula.

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Juliette [100K]

Answer:

Lynn will receive $63,754 at the end of 8 years.

Explanation:

Future value is the sum of value of principal invested and compounded return received over the investment period.

Using following formula of future value to calculate the required interest rate.

FV  = PV x ( 1 + r )^n

PV  = Present value = $40,000

n = number of years = 8 years

r = Interest rate = 6%

FV = Future value = ?

FV  = $40,000 x ( 1 + 6% )^8 = $63,754

8 0
3 years ago
Read 2 more answers
Uncollectible accounts; allowance method estimating bad debts as percentage of net sales vs. direct write-off method [LO7-5, 7-6
worty [1.4K]

Answer:

1. Bad debt expense = $97,500

2. Accounts receivable written off = $109,500

3. Bad debt expense for 2021 = $109,500

Explanation:

Bad debts expense refers to an uncollectible accounts expense that occurs because goods or services are delivered on credit a company to a customer who did not paid the amount owed.

The questions can be answered as follows:

1. What is bad debt expense for 2021 as a percent of net credit sales?

Under this, bad debt can be calculated using the following formula:

Bad expense = Net credit sales * Estimated bad debt percentage ....... (1)

Where;

Net credit sales = $6,500,000

Estimated bad debt percentage = 1.50%

Substituting the values into equation (1), we have:

Bad debt expense = $6,500,000 * 1.50% = $97,500

2. Assume Ervin makes no other adjustment of bad debt expense during 2021. Determine the amount of accounts receivable written off during 2021.

This can be calculated using the following formula:

Accounts receivable written off = Beginning uncollectible balance + Bad debt expenses - Ending uncollectible balance ............ (2)

Where;

Beginning uncollectible balance = $62,000

Bad debt expenses = $97,500

Ending uncollectible balance = $50,000

Substituting the values into equation (2), we have:

Accounts receivable written off during 2021 = $62,000 + $97,500 - $50,000 = $109,500

3. If the company uses the direct write-off method, what would bad debt expense be for 2021?

Under the direct write-off method, the exact amount of uncollectible accounts as they are specifically identified are recorded.

Based on this explanation, bad debt expense for 2021 is equal to the accounts receivable written off during 2021 calculated in part 2 above. Therefore, we have:

Bad debt expense for 2021 = $109,500

7 0
3 years ago
Which of the following is a characteristic of economic services:
9966 [12]

Answer:

useful

Explanation:

i got it from USA test prep

4 0
2 years ago
Which bank does not charge at all for using the ATM?
const2013 [10]
Bank A is the answer
6 0
3 years ago
The cost object(s) of the departmental overhead rate method is: Multiple Choice The unit of product. The production departments
Paraphin [41]

Answer:

The production departments in the first stage and the unit of product in the second stage.

Explanation:

The cost object under the department overhead rate used to allocate the cost based on the cost drivers.

In this departmental overhead rate method, first the overhead is allocated in the first department after that in the second stage the unit of product is done

so that the proper sequencing could be done and actual value could come

5 0
3 years ago
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