Under- or Over-Applied Manufacturing Overhead:
Under- or Over-Applied Manufacturing Overhead refers to the balance in the manufacturing overhead control account after the actual overhead costs that were incurred and the applied overhead for the period has been recorded
1 .The appleid overhead is the predetermined rate of $2.40 per machine hour multiplied by the actual number of machine hours (75,000), so it is $180,000.
The applied overhead is debited to work-in-process inventory and credited to the manufacturing overhead account.
2. The underapplied or overapplied overhead for the year is the difference between the actual and applied overhead. We can show it in the T-account like this:
3. The company estimated its total overhead cost to be $192,000 and its total machine hours to be 80,000. The actual overhead cost was $184,000 and the actual machine hours were 75,000. We can see that the main reason why the manufacturing overhead was underapplied was the fact that it worked fewer machine hours than anticipated with a proportional decrease in the manufacturing overhead costs incurred. This is normal because an element of manufacturing overhead is fixed.
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Answer:
Gain= $14,500
Explanation:
<u>First, we need to calculate the book value of the equipment:</u>
Book value= purchase price - accumulated depreciation
Book value= 95,000 - 78,500
Book value= $16,500
<u>If the selling price is higher than the book value, the company made a profit by selling the equipment.</u>
Gain/loss= selling price - book value
Gain/loss= 31,000 - 16,500
Gain= $14,500
Go on the number line and find each number at the bottom and put a dot above each number that your supposed to graph
Answer:
2021
revenues 420,000
gross profit 112,000
2022
revenues 1,680,000
gross profit 65,000
Explanation:
2021:
Cost incurred 308,000
Estimed to complete 1,232,000
Total cost 1,540,000
Percentage of completion 308,000 / 1,540,000 = 20%
Revenue will be recongize for 20% of the total
2,100,000 x 20% = 420,000
Less Cost (308,000)
Gross Profit 112,000
For 2022 we recognize the rest as the project is completed
2,100,000 - 420,000 = 1,680,000
Incurred Cost (1,615,000)
Gross Profit 65,000
Answer:
$220.000
Explanation:
On June 1, Golden Apple negotiated a forward contract with a bank to sell the €200.000 in three months at a rate of $1,10. On september 1, the rate is 1,15 but as there was a previous contract signed, the rate is $1,10 taking into account that this type of contracts determine the rate of interest that will be paid on a future date.
