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Gwar [14]
2 years ago
5

At the beginning of a year, a company predicts total direct materials costs of $900,000 and total overhead costs of $1,170,000.

If the company uses direct materials costs as its activity base to allocate overhead, what is the predetermined overhead rate it should use during the year?
Business
1 answer:
ASHA 777 [7]2 years ago
6 0

Answer:

1.30

Explanation:

The cost of production is usually split into direct and indirect cost or overheads. the overheads is usually stated as a function of the direct cost( labour, machine hours, materials etc.)

The predetermined overhead rate

= $1,170,000/$900,000

= 1.3

This means that the company will incur an overhead cost of $1.30 for every $1 spent on direct materials.

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The correct answer is letter D.<span>

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5 0
3 years ago
Um Corporation has provided the following information concerning its raw materials purchases. The budgeted cost of raw materials
Zepler [3.9K]

Answer:

$171,619.20

Explanation:

Calculation to determine what The budgeted accounts payable balance at the end of November is closest to:

Using this formula

Budgeted accounts payable balance= Budgeted cost of raw materials purchases in November -(Budgeted cost of raw materials purchases in November*Raw materials purchases in the month of purchase percentage)

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Budgeted accounts payable balance=$286,032 - ($286,032*40%)

Budgeted accounts payable balance=$286,032 - $114,412.80

Budgeted accounts payable balance= $171,619.20

Therefore The budgeted accounts payable balance at the end of November is closest to:$171,619.20

4 0
2 years ago
2. Shoplifting is a very serious problem for retail store owners, with millions of dollars of merchandise stolen each year. Obvi
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4 0
3 years ago
What is the broad term that refers to all other terms listed below. The term can apply to all divisions and departments​ (such a
Vladimir79 [104]

Answer:

C. Policies

Explanation:

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6 0
3 years ago
Wordmill Publications purchased a printing machine for $40,000 on January 1, 20X1. On December 31, 20X5, it sold the printing ma
Diano4ka-milaya [45]

Answer:

d. The gain of $5,000 is deducted in the operating activities section of the statement of cash flows.

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Printing machine is fixed Asset and gain on sale of fixed assets are deducted in operating activities before changes in working capital as it is non operating income and these are deducted from the figure of net profit which is shown in operating activities.

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3 years ago
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