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melamori03 [73]
4 years ago
6

The Mega Construction Company recently switched to activity-based costing (ABC) from the department allocation method. The depar

tment method allocated overhead costs at a rate of $60 per machine hour. The cost accountant for the Finishing Department has gathered the following data: Activity Cost Drivers Amount Material handling Tons of material handled $ 80 Machine setups Number of production runs 4,000 Utilities Machine hours 15 Quality control Number of inspections 600 During April, Mega purchased and used $115,000 of direct materials at $20 per ton. There were 8 production runs using a total of 11,000 machine hours in April. The manager of the Finishing Department needed 12 inspections. Actual overhead costs totaled $890,000 for the month. How much overhead costs were applied to the Work-in-Process Inventory during April using activity-based costing
Business
1 answer:
Anuta_ua [19.1K]4 years ago
5 0

Answer:

$664,200

Explanation:

Computation of the given data are as follow:-

Material Overhead = (Machine purchase price ÷ Direct material per ton) × Cost of material handling

= (115,000 ÷ 20) × 80

= $460,000  

Set up of Machine = Production overhead =No. of production run × cost of production run

= 8 × $4,000 = $32,000

Quality Control = 12 × $600 = $7,200

Utilities Cost = 11,000 × $15 = $165,000

Work In Process Inventory During April = Material Overhead + Production Overhead + Quality Control +  Utilities Cost

= $460,000 + $32,000 + $7,200 + $165,000

=$664,200

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Sometimes a country’s laws forbid foreigners from owning a business in the nation. In the presence of such laws, a(n) ________ i
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Answer: Joint venture.

Explanation:

In a country that doesn't allow foreign companies to own businesses in them, a joint venture can be created between the foreign company and the local companies in order for the foreign company to have a presence in that country. A joint venture is a form of business formation that involves two or more seperate businesses coming together to form a business establishment, while each business maintains their individual identities.

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3 years ago
In many cases, the causes of scope creep reflect a misfit between ____.Multiple Choicetraditional project management methods bei
11111nata11111 [884]

Answer:

<em><u>The correct answer is:</u></em> traditional project management methods being applied to high uncertainty projects

Explanation:

Scope creep are common in projects, but they can raise concerns because they mean increased time and expense.

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5 0
4 years ago
An adjusted trial balance does not list the revenues and expenses of a business.
jenyasd209 [6]

False, An adjusted trial balance does not list the revenues and expenses of a business.

  • No entry is made under the accrual system of accounting until the money has been paid.
  • Additionally,<u> an </u><u>adjusted trial balance</u><u> does not include a </u><u>business's revenues and costs.</u> The net income will be inflated if a corporation doesn't make an adjustment entry for accrued revenues.

What is an adjusted trial balance ?

  • At the end of an accounting period, the balances of all accounts, including those that have been amended, are displayed in an adjusted trial balance.
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Which of the following is true of a trial balance?

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2 years ago
Suppose the consumer price index (CPI) stands at 240 this year. If the inflation rate is 5 percent, then next year's CPI will eq
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Answer:

c. 252

Explanation:

Calculation of what the next year's CPI will equal

Using this formula

Next year's CPI=[Consumer price index (CPI) +(Consumer price index (CPI) *Inflation rate

Let plug in the formula

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Therefore the next year's CPI will equal 252

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3 years ago
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