By definition, _____________ is the activity, set of institutions, and processes for creating, communicating, delivering and exc
1 answer:
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Answer:
Option (C) is correct.
Explanation:
Total expenses:
= mortgage interest + property tax + utilities and maintenance + Depreciation expense
= $5,000 + $600 + $900 + $3,500
= $10,000
Proportionate rental expenses = Total expenses ×
Proportionate rental expenses = 10,000 ×
= $7,200
Rental Loss = Rental Income - Proportionate rental expenses
= $4,000 - $7,200
= -($3,200)
Answer:
Applied overhead: 387,750
underapplied by 74,250
Explanation:
to get the predetermined overhead rate we will distribute the expected cost along a cost driver. In this case, labor hours.
403,260 / 61,100 = 6.6
Then, we apply this rate to the actual labor hours for the period:
58,750 x 6.6 = 387,750
This will be the applied overhead for the period.
The we compare with the actual overhead:
387,750 - 462,000 = (74,250)
As the actual cost were higher the overhead was underpapplied.