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Katen [24]
3 years ago
8

Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory accou

nt shows the following. Work in Process Inventory Date ExplanationDebit Credit Balance Dec.31 Direct materials cost1,900,000 1,900,000 31 Direct labor cost210,000 2,110,000 31 Overhead applied684,000 2,794,000 31 To finished goods 2,723,000 71,000 1. Determine the predetermined overhead rate used (based on direct materials cost). 2. Only one job remained in work in process inventory at December 31. Its direct materials cost is $22,000. How much direct labor cost and overhead cost are assigned to this job
Business
1 answer:
kotykmax [81]3 years ago
8 0

Answer:

1. Overhead rate = Overhead costs / Direct material costs

Overhead rate = $684,000 / $1,900,000

Overhead rate = 0.36

Overhead rate = 36%

2. How much direct labor cost and overhead cost are assigned to this job?

Total cost of job in process                      $71,000

Less: Overhead applied                            $7,920

          ($22,000 * 36%)

Less: Material cost of job in process        <u>$22,000</u>

Direct labor cost                                        <u>$41,080</u>

Hence, direct labor cost is $41,080 and Overhead cost is $7,920

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Units: Beginning Inventory: 34,000 units, 55% complete as to conversion. Units started and completed: 128,000. Units completed a
liq [111]

Answer:

the cost per equivalent unit of conversion is $3.49

Explanation:

The computation of the cost per equivalent unit of conversion is as follows;

= Total conversion cost ÷ equivalent units

where

total conversion cost is $608,150

And, the equivalent units is

= 162,000 units × 100% + 34,500 units × 35%

= 162,000 units + 12,075 units

= 174,075 units

Now the cost per equivalent unit of conversion is

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= $3.49 per unit

Hence, the cost per equivalent unit of conversion is $3.49

This is the answer but the same is not provided in the given options

3 0
3 years ago
Locus Company has total fixed costs of $121,000. Its product sells for $67 per unit and variable costs amount to $57 per unit. N
Trava [24]

Answer:

13,915 units

Explanation:

With regards to the above, we need to determine first the target or desired profit.

Desired profit = $121,000 × 15% = $18,150

The next step is to calculate the contribution margin, which is the difference between selling price and variable cost.

Contribution margin = Sales - Variable cost

Contribution margin = $67 - $57

Contribution margin = $10 per unit

Target sales is therefore;

Target sales = (Fixed cost + Target profit) / Contribution margin

Target sales = ($121,000 + $18,150) / $10

Target sales = $139,150 / $10

Target sales = 13,915 units

8 0
3 years ago
What determines if a buyer is satisfied or dissatisfied with a​ purchase?
Gala2k [10]
E. Weather or not the buyer experiences
7 0
3 years ago
An economy that is currently in equilibrium and at full employment has an increase in Disposable income of $50 billion. If the m
Sonbull [250]

Answer:

$250 billion.

Explanation:

The computation in the increase in real GDP is shown below:

Given that

MPC = 80% or 0.80

Income multiplier = 1 ÷ (1 - MPC )

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Now

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So,

The Increase in real GDP is

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5 0
2 years ago
Which of the following statements regarding marketing entrepreneurship is
Advocard [28]

Answer:C

Explanation: The option is illogical as anybody can be a marketing entrepreneur and not just a college graduate.

8 0
2 years ago
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