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r-ruslan [8.4K]
3 years ago
6

DL and MOH budget: The Production Department of Top of The World Corporation has submitted the following forecast of units to be

produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,700 9,700 11,700 12,700 Each unit requires 0.25 direct labor-hours and direct laborers are paid $14.00 per hour. In addition, the variable manufacturing overhead rate is $2.00 per direct labor-hour. The fixed manufacturing overhead is $67,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $16,000 per quarter. a. Calculate the company’s total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced. b. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.
Business
1 answer:
alexira [117]3 years ago
7 0

Answer and Explanation:

a. The computation of the total estimated direct labor cost is shown below:

Particulars     1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Units to be produced 10,700 9,700 11,700 12,700 44,800

Multiply  Direct labor hour per unit 0.25 0.25 0.25 0.25 0.25

Total Direct labor hour required 2675 2425 2925 3175 11200

Multiply  Direct labor rate per hour $14 $14 $14 $14 $14

Estimated Direct labor cost $37,450 $33,950 $40,950 $44,450 $156,800

b.  The total estimated manufacturing cost and the cash disbursement is shown below:

Particulars 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Units to be produced 10,700 9,700 11,700 12,700 44,800

Direct labor hour per unit 0.25 0.25 0.25 0.25 0.25

Multiply Total Direct labor hour required 2675 2425 2925 3175 11200

Variable manufacturing overhead rate $2 $2 $2 $2 $2

Estimated Variable manufacturing overhead cost $5,350 $4,850 $5,850 $6,350 $22,400

Add: Fixed manufacturing overhead $67,000 $67,000 $67,000 $67,000 $268,000

Total estimated manufacturing overhead $72,350 $71,850 $72,850 $73,350 $290,400

Less: depreciation $16,000 $16,000 $16,000 $16,000 $64,000

Cash disbursement for manufacturing overhead $56,350 $55,850 $56,850 $57,350 $226,400

We simply applied the above format to find out the manufacturing overhead, cash disbursement, and the direct labor cost

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Answer:

A finance reporting accountant prepares periodic financial statements required for external reporting. They collect and analyze financial data, ensuring that all reporting complies with SEC and GAAP reporting regulations and guidelines. They also prepare internal reports as required.

Explanation:

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6 0
2 years ago
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Answer:

The future value is $6,894.21

Explanation:

Giving the following information:

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To calculate the future value, we need to use the following formula:

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5 0
3 years ago
jervis sells 3400 of its accounts receivable to northern bank in order to obtain necessary cash northern bank charges a 2% facto
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Answer:

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​

Date  Account Titles and Explanation     Debit    Credit

          Cash                                                   $3,332

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6 0
2 years ago
A stockbroker predicts whether a stock will go up or down by tossing a coin and so has a 50% chance of making a correct predicti
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Answer:

A skilled  broker will be right at  60% of time compared to 50%

Explanation:

Solution

Given that:

Now,

Let X  be represented as = number of correct predictions/outcomes

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Thus,

P(X = 3) = p^3 = 0.5^3 which gives us  = 0.125

So,

For a skilled broker, Y goes with the binomial distribution with n = 3 and p is = 0.6

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We can therefore conclude who is skilled broker by making large number of observations

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3 years ago
Managers who practice total quality management_______(A) invest more resources at the front end of the value chain in research a
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Answer:

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