Answer:
(a) $1.8 per machine hour
(b) $390 per setup
Explanation:
Given that,
Overhead allocated to the cutting cost pool = $410,400
Overhead allocated to the design cost pool = $666,900
Total machine hours = 228,000
Total number of setups = 1,710
Under activity based costing,
Overhead rate for cutting:
= Overhead allocated to the cutting cost pool ÷ Machine Hours
= $410,400 ÷ 228,000
= $1.8 Per Machine Hour
Overhead rate for design:
= Overhead allocated to the design cost pool ÷ Number of Setup s
= $666,900 ÷ 1,710
= $390 per set up
Answer:
JOURNAL ENTRIES
Dr. Bad Debts.......................3,700
Cr. Accounts Receivable.............3,700
Explanation:
an adjustment for estimated uncollectible accounts at the end of 2021
JOURNAL ENTRIES
Dr. Bad Debts.......................3,700
Cr. Accounts Receivable.............3,700
for the actual bad debts in 2022. we have adjust for the difference between the estimate and the actual amount which is $1,100
JOURNAL ENTRIES
Dr. Accounts receivable...(3700-2600)...1,100
Cr. Bad debts recovered.....................................1,100
Being bad debts recovered, a shortfall in actual estimates
Answer:
partial measure
Explanation:
Based on the information provided it can be said that the kind of productivity measure that can be used would be a partial measure. Partial Productivity measure relates output to a single input unit. For example, capital productivity deals with output per unit of capital while energy productivity relates output per joule of energy used. In this scenario, we would need labor productivity which is output per hour worked.
Answer:
$4,560
Explanation:
Credit Sales $456,000
Bad Debt Expense (456,000*1%) $4,560
It is assumed that bad debt expense of 1% is allowed on gross credit sales rather than net credit sales.
Answer:
(A note in the financial statements or a schedule attached to the statement of cash flows.
Explanation:
Noncash investing and financing transactions do appear as a separate schedule on the statement of cash flows. They are are notable investing and financing activities that do not affect cash directly. The IFRS and US GAAP mandates companies to disclose all notable or significant non-cash investing and financing activities either at the bottom of the statement of cash flows usually in a form of a footnote or in the notes to the financial statements.