Answer:
Bradford's estimated variable manufacturing overhead cost is $127,200
Explanation:
The cost function=$83,000+$12M
where M stands for machine hours required to produce the expected output in the month under review.
Each one-six unit case of Bradford's single product requires two machine hours,hence 5,300 cases would require 10,600 hours(5,300*2hrs).
Total estimated variable manufacturing overhead=cost per machine hour*expected number of machine hours
cost per machine hour is $12 as seen in the cost function
estimated variable manufacturing overhead=$12*10,600=$127,200
Answer:
Instructions are below.
Explanation:
<u>We were provided with the activity rates. To calculate the total cost, first, we need to allocate overhead to both product lines:</u>
<u></u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product K425:
Allocated MOH= (6*80) + (4*100) + (50*1) + (90*1) + (14*1) + (9*80)
Allocated MOH= $1,754
Product M67:
Allocated MOH= (6*500) + (4*1,500) + (50*4) + (90*4) + (14*10) + (9*500)
Allocated MOH= $14,200
<u>Now, we can calculate the unitary cost:</u>
Product K425:
Unitary cost= 13 + 5.6 + (1,754/200)
Unitary cost= $27.37
Product M67:
Unitary cost= 56 + 3.5 + (14,200/2,000)
Unitary cost= $66.6
Answer:
The bad debts expense for 2015 would be $ 28,000
Explanation:
The balance of the allowance for doubtful account should be equal to the amount estimated to be uncollectible based on the ageing analysis
Estimated uncollectible account $ 31,000
Allowance for doubtful accounts prior to adjustment <u>$ 3,000</u>
Bad debts expense for the year to be recorded <u> $ 28,000</u>
The accounting entry to record this is as follows:
Bad debts expense Debit $ 28,000
Allowance for uncollectible accounts Credit $ 28,000
Answer:
B) Inventory turnover ratios
Explanation:
Inventory turnover measures how many times a business sells and replaces its merchandise or materials inventory during an accounting period, usually a year.
One of the basic goals of JIT is to lower the total inventories in a company, therefore increasing the inventory turnover ratio. This reduces the company's operating costs.
