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barxatty [35]
3 years ago
9

Middlesex manufacturing uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. L

ast year, the company's estimated manufacturing overhead was $1,200,000 and its estimated level of activity was 50,000 direct labor-hours. The company's direct labor wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,340,000, with actual direct labor cost of $650,000. For the year, manufacturing overhead was:
Business
1 answer:
valkas [14]3 years ago
8 0

Answer:

Under applied = - 40000

Explanation:

Given the estimated manufacturing overhead = $1200000

The direct labor hour = 50000

Direct labor wage rate = $12 per hour

Actual overhead value = $1340000

Now first find the pre-determined overhead rate.

Pre-determined Overhead Rate = 1200000/50000 = 24  

Now find the applied overhead.

Now the Applied Overhead = 650000/12 × 24 = 1300000

Given Actual Overhead = 1340000

Under applied = 1300000 - 1340000 =- 40000

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The following information is taken from Reagan Company's December 31 balance sheet:
zimovet [89]

Answer:

Firm’s sales uncollected for year is 42 days.

Explanation:

Account receivable turnover ratio = $621,000 / $70,422

Account receivable turnover ratio = 8.69

Thus, accounts receivable turnover ratio is 8.69

Average collection period = 365 / Account receivable turnover ratio

Average collection period = 365 days / 8.69

Average collection period = 42.00

Thus, firm’s sales uncollected for year is 42 days.

8 0
3 years ago
Prime Corp. has an ending balance in the accounts receivable account of $100,000. Prime recorded bed debt expense of $3000. Prim
Lelu [443]

Answer:

True

Explanation:

Prime's net realizable value of accounts receivable = accounts receivable balance - allowance for uncollectible accounts = $100,000 - $7,000 = $93,000

Bad debt expenses have already been debited, so they are no longer part of the allowance for uncollectible accounts.

5 0
3 years ago
Robo Hot Inc., is a company that markets electric heaters to hospitals. Mr. Heatmizer, it's CEO, would ike to reduce its invento
Kruka [31]

Answer:

Expected number of orders=31.6 orders per year

Explanation:

<em>The expected number of orders would be the Annual demand divided by the economic order quantity(EOQ).</em>

<em>The Economic Order Quantity (EOQ) is the order quantity that minimizes the balance of holding cost and ordering cost. At the EOQ, the holding cost is exactly the same as the ordering cost.</em>

It is calculated as follows:

EOQ = (2× Co D)/Ch)^(1/2)

Co- ordering cost Ch - holding cost, D- annual demand

EOQ = (2× 10 × 100000/2)^(1/2)= 3162.27 units

Number of orders = Annual Demand/EOQ

                              = 100,000/3,162.27= 31.62 orders

Expected number of orders=31.6 orders per year

7 0
2 years ago
Rory Company has a machine with a book value of $75,000 and a remaining five-year useful life. A new machine is available at a c
Alborosie

Answer: $7,500

Explanation:

In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.

Starting off we will calculate the amount of savings they will make by using the new machine,

= $12,000 x 5 years

= $60,000

Calculating the Incremental income therefore we have,

= 60,000 + 60,000(from selling old machine) - 112,500 (cost of new machine)

= $7,500

The incremental income of buying the new machine is $7,500.

If you need any clarification do comment.

5 0
3 years ago
Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last thr
Semmy [17]

Answer:

a. (i) $1.40

(ii) $190,000

b. $3,410,000

Explanation:

The computation of fixed cost of maintenance annually and the variable cost of maintenance per visitor is shown below:-

a. (i) Variable cost per visitor = (Maintenance cost at highest number of visitors - Maintenance cost at lowest number of visitors) ÷ (Highest number of visitor - Lowest number of visitor)

= ($3,830,000 - $2,773,000) ÷ ($2,600,000 - $1,845,000)

= $1,057,000 ÷ $755,000

= $1.40

(ii) Fixed cost of maintenance = Total costs - Variable cost at that level

= $2,773,000 - $1,845,000 × $1.40

= $2,773,000 - $2,583,000

= $190,000

b. The computation of estimated maintenance costs is shown below:-

Estimated maintenance costs = Fixed costs + Variable cost per visitors × Number of visitors

= $190,000 + 2,300,000 × $1.40

= $190,000 + $3,220,000

= $3,410,000

6 0
3 years ago
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