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Step2247 [10]
3 years ago
5

Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Ov

erhead $416,000 Direct labor cost 520,000 Ilberg uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $39,900. Required: 1. Calculate the predetermined overhead rate for the year. Enter the percentage answer as a whole number. % of direct labor cost
Business
1 answer:
Maslowich3 years ago
6 0

Answer:

Overhead = 80% of direct labor cost

Overhead for December = $31,920

Explanation:

As for the provided information, we have:

Overhead rates are based on percentage of direct labor cost.

Overheads = $416,000

Labor cost = $520,000

Therefore, predetermined overhead = \frac{416,000}{520,000} \times 100 = 80

Note: The predetermined rate per hour cannot be calculated as the number of hours or the wage rate is not provided for labor cost, and overheads are based on such rate.

Therefore, for the month of December overhead based on predetermined rate = Labor cost of December \times 80%

= $39,900 \times 80% = $31,920

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The net income or net loss is calculated on the statement of owner’s equity.
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3 years ago
Warranty service, processing of complaints, and costs of litigation are examples of Multiple Choice appraisal costs. internal fa
zhannawk [14.2K]

Examples of internal failure costs include warranty service and complaint handling. As a result, choice b is accurate.

<h3>What do you mean by internal failure cost?</h3>

Internal failure costs are expenses related to flaws discovered prior to the client receiving the good or service. External failure costs are expenses related to flaws discovered after the client has purchased the good or service.

Internal failure costs are quality expenses related to product flaws found before a product leaves the facility.

Hence, warranty services all are examples of the internal failure cost.

Learn more about internal failure costs:

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8 0
2 years ago
If a manufacturing process takes 4 hours per unit of x and 2 hours per unit of y and a maximum of 100 hours of manufacturing pro
lilavasa [31]

Answer:

The algebraic formulation of the constraint is 4X+2Y ≤ 100

Explanation:

The algebraic formulation of the constraint is shown below:

Given that

The number of hours taken per unit of x is 4 hours

And the number of hours taken per unit of x is 2 hours

And, the maximum hours available is 100

Now based on the above information

The  algebraic formulation of the constraint is

= 4X+2Y ≤ 100

hence, the same is to be considered

6 0
3 years ago
f the unemployment rate is 8 percent, this means: a. 8 percent of the population is unemployed. b. 8 percent of the population o
hodyreva [135]

Answer:

c. 8 percent of the labor force is unemployed.

Explanation:

<em>The Unemployment Rate measures the percentage of the total labor force that is unemployed while actively seeking employment during the previous month</em>. If the unemployment rate is 8 percent, this means 8 percent of the labor force is unemployed. That also means, <u>out of all the people actively seeking employment during the previous month, 8 percent are still unemployed or jobless.</u>

3 0
3 years ago
The higher the firm's flotation cost for new common equity, the more likely the firm is to use preferred stock, which has no flo
kirill115 [55]

Answer:

B. False

Explanation:

Flotation costs are cost that are concerned with issuing new common stock. It is the amount of money or cost incurred by an organization when offering its securities to the public. The cost may include legal fees, auditing fees and registration fees. When the flotation cost goes higher, firms are more likely to use debts rather than preferred stock. This is simply because debt is lesser than both common stock and preferred stock. Also, its fallacy to think that preferred stock doesnt have flotation cost. Its only that its not as high as the ones for new common equity.

8 0
3 years ago
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