When members are able to express their opinions and reach agreement to support the final decision?

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermin

const2013 [10]

Question not complete

Direct Labour Cost is missing

Direct Labor Cost ----- $50,000.00 $270,000.00

Answer:

a.

Overhead Rate (Cutting Department) = $5.5 per machine hour = $5.5 per machine hour

Overhead Rate (Finishing Department) = $12.2 per labour hour

b. Total Manufacturing Cost = $644

c. Yes

Explanation:

a. Compute the predetermined overhead rate to be used in each department.

Given

Cutting Department

The Cutting Department bases its rate on machine-hours

Manufacturing Overhead Costs = $264,000

Machine Hours = 48,000

Finishing Department

The Finishing Department bases its rate on direct labor-hours.

Manufacturing Overhead Costs = $366,000

Direct Labour Cost = $270,000

Overhead Rate (Cutting Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Cutting Department) = $264,000/48,000

Overhead Rate (Cutting Department) = $5.5 per machine hour

Overhead Rate (Finishing Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Finishing Department) = $366,000/$270,000

Overhead Rate (Finishing Department) = 1.36

Overhead Rate (Finishing Department) = 136% direct labour cost

b.

The Cutting Department bases its rate on machine-hours

Given

Machine hours = 80 machine hours

Overhead Rate = $5.5 per machine hours ------ Calculated

The Finishing Department bases its rate on direct labor-hours.

Given

Direct Labour Cost = 150

Overhead Rate = 136% labour cost ------ Calculated

Overhead Applied (Cutting Department) = 80 * 5.5

Overhead Applied = 440

Overhead Applied (Finishing Department) = 136% * 150

Overhead Applied = $204

Total Overhead Applied = $440 + $204

Total = $644

c. Yes

If they use a plantwide rate based on direct labor cost and if the jobs has longer machine hours and small amount of labor cost they will be charged less overhead cost.

6 0

3 years ago

Price Company’s note receivable is receivable from Score Company. Interest of $7,520 was paid by Score to Price during 2015. Any

Minchanka [31]

Answer:

Please see attachment

Explanation:

Please see attachment

7 0

4 years ago

Tancredi Corporation has two manufacturing departments--Machining and Customizing. The company used the following data at the be

olganol [36]

Answer:

Results are below.

Explanation:

First, we need to calculate the predetermined overhead rate:

Fixed overhead= 33,500

Total variable overhead= (1.8*5,000) + (3*5,000)= 24,000

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (33,500 + 24,000) / 10,000

Predetermined manufacturing overhead rate= $5.75

Now, we can determine the total cost for each Job:

Job E:

Direct material= $12,800

Direct labor= $17,600

Allocated overhead= (3,400 + 2,000)*5.75= $31,050

Total cost= $61,450

Job J:

Direct material= $7,000

Direct labor= $1,600

Allocated overhead= (1,600 + 3,000)*5.75= $26,450

Total cost= $35,050

6 0

3 years ago

lakkis [162]

Answer:

Journal entries

Explanation:

a. Cash $25,000

To Sales $25,000

(Being the sale is recorded)

Costs of Goods Sold $17,500

To Inventory $17,500

(Being the cost is recorded)

B. Accounts Receivable $98,000

To Sales $98,000

(Being the sales is recorded)

Costs of Goods Sold $58,800

To inventory $58,800

(Being the cost is recorded)

C. Accounts Receivable $475,000

To Sales $475,000

(Being the sales is recorded)

Costs of Goods Sold $280,000

To inventory $280,000

(Being the cost is recorded)

D. Accounts Receivable $63,000

To Sales $63,000

(Being the sales is recorded)

Costs of Goods Sold $39,000

To inventory $39,000

(Being the cost is recorded)

E. Cash $524,550

Credit card Expense $13,450

To Accounts Receivable $538,000

(Being the cash is recorded)

Sales $661,000

To Income Summary $661,000

(Being the closing is recorded)

Income summary $408,750

To Costs of Goods Sold $ 395,300

To Credit Card Expense $ 13,450

(Being the credit card expense and the cost of goods sold closing is recorded)

Income Summary $252,250

To Retained Earnings $252,250

(Being the transfer is recorded)

5 0

3 years ago

a contraction period is characterized by the following attributes: businesses that are operating lower productive capacity, unem

Goryan [66]

Economic cycle is defined as the fluctuations of the economy between the period of expansion and contraction.

There are four stages of economic cycle :

Expansion, peak, contraction, trough

Under the stage of contraction, the business flow is slow as low retail sales, prices, interest rates. The correction will takes place in this stage and economy started recovering in the next stage that is trough.

It is very important to insight the economic cycle for taking major decisions regarding investment and business.

This cycle goes in cyclic pattern.

The investors will invest more in the contraction period because rates were relatively low in this stage.

To know more about economic cycle:

brainly.com/question/1253307

#SPJ4

4 0

2 years ago