Answer:
$35,84 per machine hour
Explanation:
Plantwide overhead rate = Budgeted overheads ÷ Budgeted Activity
where,
Budgeted overheads = $3,600,000 + $880,000 = $4,480,000
Budgeted Activity = 125,000 machine hours
therefore,
Plantwide overhead rate = $4,480,000 ÷ 125,000
= $35,84 per machine hour
Answer:
Cost of Goods Sold will decrease by $2,679 after proration.
Explanation:
Under-applied or over applied overhead:
= Overhead incurred - Overhead applied
= $76,000 - $79,700
= (-$3,700)
Therefore, the Cost of Goods Sold after the proration:
= (over applied overhead × Overhead applied to COGS) ÷ Total overhead applied to cost of goods sold and finished goods
= ($3,700 × $57,700) ÷ ($57,700 + $22,000)
= $213,490,000 ÷ $79,700
= $2,679
Hence, the Cost of Goods Sold will decrease by $2,679 after proration.
Answer: Mobility Barriers
Explanation:
<u>Mobility Barriers</u> are industry-specific factors that separate one strategic group from another.
Answer:
The firm’s cash flow to creditors during 2018 is -$85,000
Explanation:
The steps to compute the firm’s cash flow to creditors during 2018 is shown below:
Step 1: First the new debt is need to be calculated
Step 2: The step 1 amount is subtracted from interest expense amount. And Finally, the cash flow to creditors came
where,
Increase debt = 2018 long term debt - 2017 long term debt
= $2.21 million - $1.87 million
= 0.34 million = $3,40,000
Now,
Cash flow to creditors = Interest expense - Increase debt
= $255,000 - $3,40,000
= -$85,000
Thus, the firm’s cash flow to creditors during 2018 is -$85,000
