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nignag [31]
3 years ago
15

Anton believes his company's overhead costs are driven (affected) by the number of machine hours because the production process

is heavily automated. During the period, the company produced 3,000 units of Product A requiring a total of 200 machine hours and 2,000 units of Product B requiring a total of 50 machine hours. What allocation rate should be used if the company incurs overhead costs of $10,000?
Business
1 answer:
natali 33 [55]3 years ago
5 0

Answer:

Allocation rate is $40

Explanation:

The overhead cost allocation rate is the overhead costs incurred divided by the appropriate overhead driver.

The driver is that factor that causes overhead to be incurred.Since the company production process is heavily automated,the driver of overhead is machine hours.

The total machine hours in this regard is 250(200 hours for Product A while it is 50 hours for product B)

Overhead allocation rate=$10,000/250=$40

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Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed
nalin [4]

Answer:

1. Transaction: Received cash from owner as additional investment $18,000

Accounting equation element: Asset and Equity

Direction: Cash increases Equity increases

Account:  Cash and Wyer capital

2. Transaction: Paid advertising expenses $4,850

Accounting equation element: Asset and equity

Direction: Cash decreases Equity decreases

Account:  Cash and equity

3. Transaction: Purchase supplies on account $2,100

Accounting equation element: Asset and Liability

Direction: Asset increases Liability increases

Account:  Supplies and Accounts payable

4. Transaction: Billed customers for delivery services on account $14,700

Accounting equation element: Asset and Equity

Direction: Asset increases Equity increases

Account:  Accounts receivable and equity

5. Transaction: Received cash from customers on account $8,200

Accounting equation element: Asset and Asset

Direction: Cash increases and accounts receivable decreases

Account:  Cash and accounts receivable

5 0
3 years ago
The adjusted trial balance of Blossom Company at December 31, 2019, includes the following accounts: Common Stock $17,200, Divid
kap26 [50]

Answer:

Explanation:

Before preparing the retained earning statement, first we have to compute the closing balance of retained earning which is shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

= $7,900 + $13,500 - $7,000

= $14,400

The statement of retained earnings is presented in the spreadsheet. Kindly find the attachment below:

4 0
3 years ago
Blaine Air Transport Service, Inc., providing air delivery service for businesses, has been in operation for three years. The fo
Valentin [98]

Answer:

Entries and their narrations are posted below

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

February 1 (Paid $275 for rent of hangar space in February)

Rent (Expense)     Dr $275

Cash (Asset)                        Cr $275

February 2 (Purchased fuel costing $490 on account for the next flight to Dallas.)

Fuel (Expense)                             Dr $490

Accountt Payable (Liability)                            Cr $490

February 4 (Received customer payment of $820 to ship several items to Philadelphia next month.)

Cash (Asset)    Dr $820

Shipment (R)              Cr $820

February 7 (Flew cargo from Denver to Dallas; the customer paid $910 for the air transport)

Cash (A)   Dr $910

Ticket (R)              Cr $910

February 10 (Paid $175 for an advertisement in the local paper to run on February 19.)

Advertisement (E)    Dr $175

Cash (A)                              Cr $175

February 14 (Paid pilot $2,300 in wages for flying in January (recorded as an expense in January))

Wages payable (L) Dr 2300

Cash (A)                                Cr 2300

February 18 Flew cargo for two customers from Dallas to Albuquerque for $3,800; one customer paid $1,600 cash and the other asked to be billed.

Cash (A)                            Dr 1600

Account Receivable (A)   Dr 2200

Ticket (R)                                             Cr 3800

February 25 Purchased on account of $2,550 in spare parts for the planes.

Spares  (E)                    Dr 2550

Account Payable (L)                   Cr 2550

February 27 (Declared a $200 cash dividend to be paid in March.)

Retained Earnings (SE) Dr 200

Dividend Payable (L)                 Cr 200

8 0
3 years ago
Wright Company's cash account shows a $29,300 debit balance and its bank statement shows $27,600 on deposit at the close of busi
IgorLugansk [536]

Answer:

Bank Reconciliation Statement:

Calculation of Adjusted cash Balance on 31 May:

Cash Balance:                              $ 29,300

less: Bank Charges                      $ (190)

less: NSF Check                          <u> $ (420)</u>

Adjusted cash Book Balance      $ 28,690

Add: Outstanding Checks           $ 6,500

Less: Uncleared Checks              <u>$ 7,100</u>

Revised Cash Book Balance (A) <u>$ 28,090</u>

Bank Statement Balance               $ 27,600

Add: Error by Bank                         <u>$   490    </u>

Adjusted Bank Balance (B)           <u>$ 28,090</u>

Explanation:

Bank reconciliation is a company document prepared in order to reconcile difference between balance as per cash book and balance as per bank statement.

The difference arise because of two reasons:

  • Timing differences (Outstanding checks and Uncleared checks
  • Error and Omissions. (Bank charges -NSF)
6 0
3 years ago
Harding, Jones, and Sandy, a partnership, is in the process of liquidating. The partners have the following capital account bala
Radda [10]

Answer: <em><u>Cash to be distributed to  Harding = $ 17000,  Jones = $ 3000 </u></em>

Explanation:

It has been indicated that the ($9,000) deficit will be covered with a forthcoming contribution

∴ The Remaining Capital Balance is = (24000 + 24000) = $48000

∵Total cash Available = $20000

Loss = 48000 - 20000 =  $ 28000

Loss will be shared between Harding & Jones in ratio = 16:48

∴  Harding Capital balance = \frac{(24000 - 28000)\times16}{16+48} = $ 17000

∴ Jones Capital balance =  \frac{(24000 - 28000)\times48}{16+48} = $ 3000

Cash will be Distributed in their capital balance ratio

Therefore,

<u><em>Cash to be distributed to  Harding = $ 17000,  Jones = $ 3000 </em></u>

7 0
3 years ago
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