1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lina2011 [118]
3 years ago
6

Part B: Application of Job Order Costing Scanlon Company has a job-order costing system and applies manufacturing overhead cost

to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate for the most recent year: Machine-hours............................... 95,000 Manufacturing overhead cost ........ $1,710,000 During the most recent year, a severe recession in the company’s industry caused a buildup of inventory in the company’s warehouses. The company’s cost records revealed the following actual cost and operating data for the year: Machine-hours............................................................................. 75,000 Manufacturing overhead cost ...................................................... $1,687,500 Amount of applied overhead in inventories at year-end: Work in process........................................................................ $337,500 Finished goods.......................................................................... $253,125 Amount of applied overhead in cost of goods sold.................. $759,375 Required: a. Compute the company's predetermined overhead rate for the year and the amount of underapplied or overapplied overhead for the year. b. Determine the difference between net operating income for the year if the underapplied or overapplied overhead is allocated to the appropriate accounts rather than closed directly to Cost of Goods Sold
Business
1 answer:
stiks02 [169]3 years ago
6 0

Answer:

a) Predetermine overhead rate = 1710000/95000 = 18 per machine hour

Applied overhead = 18*75000 = 1350000

Under applied overhead = 1687500-1350000 = 337500

b) Cost of godos sold allocated amount of under applied overhead if fully allocated on cost of goods sold = 337500

Cost of goods sold allocated amount of under applied overhead if allocated on appropriate accounts = 337500*759375/1350000 = 189843.75

Difference in net income = 337500-189843.75 = 147656.25

You might be interested in
Job interviewers often say to job applicants, "tell me about yourself." the purpose of this request is to:
Aleks [24]
The purpose of this question is to:
1) Assess the personal values of the individual.
2) Assess the interviewee's command of language.
3) Assess if the interviewee is witty enough to answer the questions.
4) Assess if the interviewee is able to carry himself well to impress.

Hope this helps you.
5 0
3 years ago
Assume that the weekly payroll of in the woods is . December​ 31, end of the​ year, falls on​ Tuesday, and will pay its employee
shusha [124]

Answer and Explanation:

The adjusting entry made on Tuesday is as follows

Salaries expense Dr $120  ($300 × 2 days ÷ 5  days)

         To Salaries payable $120

(Being the salaries expense is recorded)

here the salaries expense is debited as it increased the expenses and salaries payable is credited as it also increased the liabilities.

6 0
3 years ago
Stock in Daenerys Industries has a beta of 1.3. The market risk premium is 7 percent, and T-bills are currently yielding 4.5 per
vesna_86 [32]

Answer:

13.05%

Explanation:

Using CAPM Equation, Ke = Rf+Beta*(Rm-Rf)

= 0.045+1.3*(0.07)

= 0.136

= 13.60%

Using Dividend growth model, Ke = (D1/P0) + g

= (D0*(1+g)/P0) = g

= (1.50*(1+0.08)/36) + 0.08

= 0.125

= 12.50

The cost of equity (Ke) = 0.136 + 0.125 / 2

The cost of equity (Ke) = 0.261/2

The cost of equity (Ke) = 0.1305

The cost of equity (Ke) = 13.05%

7 0
3 years ago
Molly was a successful real estate salesperson. She took some time off to stay at home with her first child. Days turned into we
Karolina [17]

Answer: Molly <u><em>cannot </em></u>simply pick up where she left off because <em><u>two years after the license expires, all license rights lapse. Molly must re-qualify through the examination process before being licensed in real estate once again.</u></em>

The mandatory CE Requirements for all Board of Behavioral Science -licensees state that a individual must receive 36 continuing education i.e. (CE) after every two (2)- year license renewal period.

Here,  Molly hadn't kept up with any CE requirements, nor had she renewed her license after it expired almost three years earlier. Therefore she <em><u>cannot </u></em>simply pick up where she left off.

8 0
2 years ago
33) Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is to receive a visit from an enforcer and the
UkoKoshka [18]

Answer:

The answer is 8 years.

Explanation:

In Offer 2, we apply the present value formular for annuity to calculate the number of repayment, thus number of year payback because repayment is made once a year.

We have the formular to calculate present value of annuity as followed:

PV = (C/i) x [1-(1+i)^(-n)].

apply to the question, we have:

          PV = the owed principal amount = $15,000;

           i = annual interest rate compounded once a year = 20%;

           C = number of equal annual repayment =  $3,900;

            n: number of repayment made thus number of year payback.

As we need to find n, we have:

15,000 = (3,900/20%) x [ 1- 1.20^(-n)] <=> 1-1.2^(-n) = 0.769 <=> 1.2(^-n) = 0.231 <=> n = -(the base 1.2 logarithm of 0.231) = 8

3 0
3 years ago
Other questions:
  • If an amount box does not require an entry, leave it blank.
    5·1 answer
  • What are the elements of the circular relationship in managing a sales call?
    10·1 answer
  • Because __________ often provide little benefit to consumers, governments have, at times, been asked to rebalance markets and re
    8·1 answer
  • Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from
    10·1 answer
  • Using time and materials pricing, what is the total price for a job requiring 3 direct labor hours and $57 of materials?
    6·1 answer
  • Domestic business differs from international business in that a firm operating within the borders of one country A) must be conc
    13·1 answer
  • Mobile Sales has five employees which receive weekly paychecks. Each earns $11.50 per hour and each has worked 40 hours in the p
    9·1 answer
  • That something unique your business should have which other business do not have ​
    10·1 answer
  • A good measure of average should be:
    11·1 answer
  • If stock prices go up and people feel richer, aggregate demand will: stay the same because there have been no changes to the und
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!