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xz_007 [3.2K]
3 years ago
14

Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured

for years. They feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming​ year:Machining DepartmentFinishing DepartmentEstimated Manufacturing Overhead by Department​$800,000​$200,000Trail Running Shoes​360,000 machine hours​6,000 direct labor hoursRunning Apparel​40,000 machine hours​34,000 direct labor hoursManufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. At the end of the​ year, the following information was gathered related to the production of the trail running shoes and running​ apparel:Machining DepartmentFinishing DepartmentTrail Running Shoes​362,000 hours​5,500 hoursRunning Apparel​37,000 hours​35,000 hoursHow much manufacturing overhead will be allocated to running​ apparel? (Round any intermediary calculations to the nearest cent and your final answer to the nearest​ dollar.)
Business
1 answer:
Tamiku [17]3 years ago
8 0

Answer:

Explanation:

Machining Department Finishing Department Estimated Manufacturing Overhead by Department ​$800,000​ $200,000

Trail Running Shoes ​360,000 machine hours​ 6,000 direct labor hours Running Apparel ​40,000 machine hours​ 34,000 direct labor hours

Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department.

At the end of the​ year, the following information was gathered related to the production of the trail running shoes and running​ apparel:

Machining Department Finishing Department Trail Running Shoes ​362,000 hours ​5,500 hours

Running Apparel​ 37,000 hours​ 35,000 hours

How much manufacturing overhead will be allocated to running​ apparel?

<em><u>For The Overhead Absorption Rate for Machining Department</u></em>

<em>Trail Running Shoes = (360,000/360,000+40,000)* $800,000 = $720,000</em>

<em>Running Apparel = (40,000/360,000+40,000)* $800,000 = $80,000</em>

<em><u>For The Overhead Absorption Rate for Finishing Department</u></em>

<em>Trail Running Shoes = (6,000/6,000+34,000)* $200,000 = $30,000</em>

<em>Running Apparel = (34,000/6,000+34,000)* $200,000 = $170,000</em>

<em><u>Therefore the running department would have been allocated ($80,000+$170,000) which is $250,000 during the period.</u></em>

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Answer:

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Answer:

Option A is correct

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Explanation:

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Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 40%
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Its action would be optimal given an ordering cost of $28.31 per order

Explanation:

According to the given data we have the following:

economic order quantity, EOQ= 55 units

annual demand, D=235

holding cost per one unit per year, H=40%×$11=$4.4

ordering cost, S=?

In order to calculate the ordering cost we would have to use the following formula:

EOQ=√(<u>2×D×S)</u>

                (H)

Hence, S=<u>(EOQ)∧2×H</u>

                     2×D

           S=<u>(55)∧2×4.4</u>

                   2×235

          S=<u>13,310</u>

                470

          S=$28.31

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3 years ago
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Sandra Sousa, Registered Dietician Trial Balance July 31, 2018 Balance Account Title Debit Credit Cash 33000 Accounts Receivable
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Answer:

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Sandra Sousa, Registered Dietitian

Income Statement

For the Month Ended July 31, 2018

Service Revenue $11,258

Salaries Expense -$1,500

Rent Expense -$1,200

Utilities Expense -$350

Net income $8,208

Requirement 2. Prepare the statement of owners equity for the month ended July 31, 2018.

Sandra Sousa, Registered Dietitian

Statement of Owner's Equity

For the Month Ended July 31, 2018

Sousa, Capital balance July 1, 2018       $22,000

Investment during month                                  $0

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subtotal                                                     $30,208

<u>Withdrawals during the month                -$2,000</u>

Sousa, Capital balance July 31, 2018     $28,208

Requirement 3. Prepare the balance sheet &s of July 31, 2018.

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Balance Sheet

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Accounts Receivable $9,600

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Prepaid Insurance $2,800

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Accounts Payable $3,100

Unearned Revenue $292

Notes Payable $34,000

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debt to equity ratio = liabilities / equity = $37,392 / $28,208 = 132.56%

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