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attashe74 [19]
3 years ago
5

Edwards Auto Body uses a job order cost system. Overhead is applied to jobs on the basis of direct labor hours. During the curre

nt period, Job No. 337 was charged $425 in direct materials, $475 in direct labor, and $190 in overhead. If direct labor costs an average of $16 per hour, the company's overhead application rate is:________
A. $40 per direct labor hour.
B. $17.50 per direct labor hour.
C. $6.40 per direct labor hour.
D. $7.27 per direct labor hour.
Business
1 answer:
-BARSIC- [3]3 years ago
7 0

Answer:

C) $6.40 per direct labor hour.

Explanation:

The overhead application rate is used to estimate the manufacturing overhead for a specific project or reporting period.

overhead application rate = direct labor cost per hour / (total direct labor costs / total overhead costs)  

overhead application rate = $16 / ($475 / $190) = $16 / $2.50) = $6.40

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Large purchased all of Small's voting stock for $11 million when Small's total owners' equity was $4 million. The book value and
hoa [83]

Answer:

The amount of goodwill that is recorded by Large is $5 million

Explanation:

Goodwill is the excess of price consideration paid to acquire controlling stake in a company over the fair value of the company's net assets.

Net assets in the sense implies the fair value of total assets less fair value of liabilities.

Fair value of total assets is $9 million

Fair value of liabilities    is $3 million

As a result net assets upon acquisition  is $6 million($9 million less $3 million)

Since the consideration paid in acquiring Small's voting stake is $11 million, goodwill is $5 million($11 million less $6 million).

The $ 5 million is the excess of purchase consideration over the fair value of Small's net assets as at the date of acquisition

8 0
3 years ago
Dublin Inc. had the following common stock record during the current calendar year: Outstanding-beginning of year 2,600,000 Addi
larisa86 [58]

Answer:

The correct answer is 3,175,300.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the number of shares by using following formula:

Number of shares = [ Outstanding + ( Additional share × Months) + ( Additional share × Months)] × 1+Dividend

By putting the value, we get

= [2,600,000 + (280,000 × 6/12) + (280,000 × 3/12)] × 1.13

= [ 2,600,000 + 140,000 + 70,000 ] × 1.13

= 3,175,300

4 0
3 years ago
which one of the following is not a withdrawal option for a mutual fund owner, who has a minimum nav of $5,000?
vichka [17]

None of the Above. A mutual fund owner typically has access to a variety of withdrawal options, including direct deposit, check, and wire transfer.

However, the minimum NAV (net asset value) of the mutual fund must be considered when choosing a withdrawal option. If the minimum NAV of the mutual fund is $5,000, then none of the above options would be available.

Net asset value, or "NAV," of an investment company is the company's total assets minus its total liabilities. For example, if an investment company has securities and other assets worth $100 million and has liabilities of $10 million, the investment company's NAV will be $90 million.

To know more about NAV here

brainly.com/question/15847339

#SPJ4

8 0
1 year ago
Your company expects to receive CAD 1,200,000 in 90 days. The 90 day forward rate for CAD is $0.80 and the current spot rate is
Masteriza [31]

Answer:

Cost of hedging = $24,000

Explanation:

cost of hedging = 1,200,000 * ($0.80 - $0.82) = 1,200,000 * $0.02 = -$24,000

Since the actual forward rate was higher than th eexpected forward rte, the coampny lost money by hedging the operation. The cost of hedging the operation was $24,000.

4 0
3 years ago
SparklingLeaves is one of the major suppliers of automobile tools to StanMotors, a leading automobile company. Many of the tools
algol [13]

Answer:

D) credible commitment

Explanation:

This is basically an exclusive supplier agreement since Sparkling Leaves and Stan Motors signed a contract that lasts 15 year, and it states that Sparkling Leaves will provide automobile tools only to Stan Motors and Stan Motors will only purchase the tools they need from Sparkling Leaves.  

Such a contract needs a serious and credible commitment between both parties, since it lasts several years and it binds both companies to work together exclusively for that period.

5 0
3 years ago
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