Answer:
To calculate the total cash disbursement for manufacturing overhead, take the total manufacturing overhead cost less depreciation.
Total manufacturing overhead cost
= Variable costs + Fixed costs
= (direct labor hours x rate per direct labor hour) + Fixed costs
= (3000 x $5) + $43140
= $15000 + $43140
= $58140
Cash disbursement cost
= Total manufacturing overhead cost - depreciation
= $58140 - $3620
= $54520
The January cash disbursement for manufacturing overhead is $54520.
Explanation:
A few key points to remember:
Fixed manufacturing overhead cost is all the costs of production which stay constant such rent, depreciation, etc. In other words components in the manufacturing process which stay constant.
Variable cost is based on the number of direct labor hours and the rate allocated per direct labor hour.
When calculating the cash disbursement, depreciation is taken out as a fixed component from the total manufacturing cost as it is not a cash outlay even though it is a fixed cost. Hence cash disbursement is calculated on the total manufacturing overhead less depreciation.
Answer:
c. Decentralized
Explanation:
The very definition of a decentrilized organization is one in which management spreads authority. This means that important decisions do not only fall within the jurisdiction of top-management, but can also be taken by middle or lower management, and in some cases, even non-managerial workers.
This can help make the day-to-day operation of the firm easier because there are less bottlenecks, or authority conflicts.
Answer:
e. $6,042
Explanation:
Net income of Bad tattoo co. = Addition of retained earnings + Dividends
= $4,780 + $2,980
= $7,760
Income before tax of Bad tattoo Co = Net income / (1-tax rate)
= $7,760 / (1-34%)
= $7,760 / 0.66
= $11,758
But,
Income before tax = Sales - Costs
- Depreciation expense - Interest expense
$11,758 = $95,560 - $75,720 - Depreciation expense - $2,040
$11,758 = $19,840 - Depreciation expense - $2,040
Depreciation expense = $19,840 - $11,758 - $2,040
Depreciation expense = $6,042
Answer: C.
Explanation: When you pay any bill, you don't borrow money, you give your own money to the company or whoever you are giving the money to.
