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Arisa [49]
3 years ago
13

Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $5,130,000 (190,00

0 hours at $27/hour) and that factory overhead would be $1,430,000 for the current period. At the end of the period, the records show that there had been 110,000 hours of direct labor and $1,130,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate?a. $5.17 per direct labor hour. b. $7.00 per direct labor hour. c. $6.42 per direct labor hour. d. $5.84 per direct labor hour. e. $6.25 per direct labor hour.
Business
1 answer:
SSSSS [86.1K]3 years ago
8 0

Answer:

Estimated manufacturing overhead rate= $7.53 per direct labor hour

Explanation:

Giving the following information:

The company's executives estimated that direct labor would be $5,130,000 (190,000 hours at $27/hour) and that factory overhead would be $1,430,000 for the current period.

We need to use the following formula:

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

Estimated manufacturing overhead rate= 1,430,000/190,000= $7.53 per direct labor hour

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Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. The Pound Co. paid the invoice within the disc
Scorpion4ik [409]

Answer:

c. $24,990

Explanation:

The Term 2/15 net 45 mean 2% cash discount is offered if the payment is made within 15 days otherwise the credit period is 45 days. There is no after 15 days of sale.

Amount of Sale = $25,500

Discount Rate = 2%

The Pound Co. paid the invoice within the discount period. They are eligible to receive the 2% discount on sale value.

Discount Amount = $25,500 x 2% = $510

Net Sales amount in this transaction = $25,500 - $510

Net Sales amount in this transaction = $24,990

8 0
3 years ago
Which is not an inefficiency caused by binding price ceilings? illegal activity inefficient allocation to consumers wasted resou
stiv31 [10]

Answer: inefficient allocation of sales among sellers

Explanation:

A binding price ceiling is one in which the government imposes a legal minimum price that can be charged for a good, when the equilibrium price is below it. The ceiling creates a shortage in the market which leads to illegal activities, wasted resources and inefficient allocation to consumers.

However, it does not lead to inefficient allocation of sales among sellers.

4 0
3 years ago
Pheasant Co. can further process Product B to produce Product C. Product B is currently selling for $30 per pound and costs $28
Gnom [1K]

Answer:

differential cost of producing product C = $24 per pound

Explanation:

given data

B  currently selling = $30 per pound

produce cost = $28 per pound

C would sell =  $60 per pound

produce additional cost = $24 per pound

to find out

What is the differential cost of producing Product C

solution

we get differential cost of producing product C is express as

differential cost of producing product C = cost of (B+C) - cost of B   .............1

put here value we get

differential cost of producing product C =  (28+24) - 28

differential cost of producing product C = $24 per pound

3 0
3 years ago
Dan owns an autographed copy of a brittany spears cd that he values at $100. if he sells the cd at the garage sale he's planning
Delvig [45]

The complete question is as follows:

Dan owns an autographed copy of a Brittany Spears CD that he values at $100. If he sells the CD at the garage sale he’s planning to hold in a few weeks, it will be sold to a buyer with a reservation price of $175. If he sells it on eBay, it will be sold to a buyer with a reservation price of $500. eBay will charge Dan $50 to auction the CD, which just covers eBay’s opportunity cost of running the auction. Relative to selling the CD at his garage sale, auctioning the CD on eBay will lead:

A. to no change in total economic surplus.

B. total economic surplus to increase by $500.

C. total economic surplus to increase by $275.

D. total economic surplus to increase by $100.

Answer: C - Total economic surplus to increase by $275.

In this question, we only need to consider producers' surplus since we're considering the various options for Dan to sell his CD.

We calculate Producer's Surplus as follows:

Producer's surplus = Market Selling Price - Economic Cost.

Economic costs not only refers to explicit costs like cost of the CD, but also includes opportunity costs. Since we need to calculate producer's surplus when Dan sells on Ebay, we need to consider the following costs:

Value of the CD = $100

Ebay's opportunity cost that Dan will have to bear = $50

Profit Dan would've received in garage sale = $75 ($175 - $100)

Among the three expenses listed above, the profit Dan would've got in the garage sale is considered the <u>implicit cost or opportunity cost.</u>

Substituting the values we have in the equation above, we get,

Producer's Surplus = 500 - (100+50+75)

Producer's Surplus = 275

8 0
3 years ago
gHenderson Ski Co. prepared a master budget that included $21,360 for direct materials, $33,600 for direct labor, $18,000 for va
Oksana_A [137]

Answer:

Total cost= $170,472

Explanation:

Giving the following information:

Direct material= $21,360

Direct labor= $33,600

Variable overhead= $18,000

FIxed overhead= $46,440

Henderson planned to sell 2,000 units during the period, but sold 3,400 units.

First, we need to calculate the unitary variable cost:

Unitary variable cost= total variable cost/number of units

Unitary variable cost= (72,960/2,000)= $36.48

Now, we can calculate the total cost for 3,400 units

Total cost= total fixed cost  + total variable cost

Total cost= 46,440 + (36.48*3,400)= $170,472

8 0
3 years ago
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