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erma4kov [3.2K]
3 years ago
7

Jones Company applies overhead based on direct labor hours. At beginning of the year, Jones estimates overhead to be $480,000, m

achine hours to be 120,000, and direct labor hours to be 80,000. During January, Jones has 6,700 direct labor hours and 11,000 machine hours. What is the predetermined overhead rate?
a. $6 per direct labor hour
b. $40.200
C.$4 per machine hour
d.$44,000
e. none of these 10.
Business
2 answers:
const2013 [10]3 years ago
5 0

Answer:

The predetermined overhead rate is a. $6 per direct labor hour

Explanation:

Overheads are included in the Product cost at Budgeted Rate multiplied by Actual Activity. This is normally known as application of Manufacturing Overhead.

Budgeted Rate is also known as Predetermined Overheads rate and is calculated as follows:

<em>Total Budgeted Overhead Cost / Total Budgeted Activity</em>

Note that Jones Company applies overhead based on direct labor hours. Thus the Budgeted Activity is Estimated direct labor hours

Thus Predetermined Overheads rate = $480,000/ 80,000

                                                              = $ 6 per direct labor hour

Ostrovityanka [42]3 years ago
3 0

Answer:

a. $6 per direct labor hour

Explanation:

Predetermined overhead rate is calculated by dividing the Expected overhead by the Expected level of activity on which the overhead is applied. It is a rate at which the overhead is applied to a product / project/ department.

Predetermined overhead rate = Expected overhead / Expected activity

Predetermined overhead rate = Expected overhead / Expected direct labor hours

Predetermined overhead rate = $480,000 / 80,000

Predetermined overhead rate = $6 per direct labor hour

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8 0
2 years ago
Which of the following is a business plan most similar to? A pinball machine
pickupchik [31]

Answer:

C: A road map.

Explanation:

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Hope this helps!  :)

5 0
3 years ago
San Ruiz Interiors provides design services to residential and commercial clients. The residential services produce a contributi
Sliva [168]

Answer:

If closed the operating income  will decrease by 50,000

Is a better scenario to continue with the residential sercives

Explanation:

<em><u>current scenario:</u></em>

contribution margin 450,000

Fixed Cost 480,000

net loss 30,000

<em><u>drop scenario:</u></em>

contribution margin = 0

fixed cost 450,000-370,000 = 80,000

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8 0
3 years ago
Reinhardt Furniture Company has 40,000 shares of cumulative preferred 2% stock, $150 par and 100,000 shares of $5 par common sto
OverLord2011 [107]

Answer:

20

Explanation:

ok boomer

6 0
3 years ago
As the average hourly wage increases from $18 per hour to $20 per hour, the quantity of frozen dinners demanded decreases from 3
horrorfan [7]

Answer:

The income elasticity of demand for frozen dinners is negative when there is an increase of hourly wages. -51%

Explanation:

When the income elasticity is negative it means that the good is inferior so when the income is increased, the demand of the good decrease beacuse its demand change to a better quality good. For instance in this case a fresh meal.

income elasticity % = % change in quantity / % change in income

(((3350-3550)/3550)/((20-18)/18))*100

7 0
3 years ago
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