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Nataliya [291]
2 years ago
14

XYZ Company applies overhead to jobs using direct labor cost as an activity. For the current year, XYZ's estimated overhead was

$144,000 while the actual overhead cost totaled $136,000. For the current year, XYZ's estimated direct labor cost was $240,000 and its actual direct labor cost amounted to $220,000. For the year, overhead was:________
a. over-applied by $6,800
b. over-applied by $4,000
c. over-applied by $8,000
d. under-applied by $6,800
e. under-applied by $4,000
f. under-applied by $8,000
Business
2 answers:
lys-0071 [83]2 years ago
8 0

Answer:

e. under-applied by $4,000

Explanation:

The overhead rate was calcualte considering labor cost:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

144,000 / 240,000 = 0.60

Each dollar of labor cost applies 60 cent of overhead

applied overhead:

$220,000 labor cost x 0-60 each = 132,000 applied overhead

now we compare against the 136,000 actual overhead

as we didn't met the value and fell short, we have underapplied the overhead.

Ivenika [448]2 years ago
8 0

Answer:

e. under-applied by $ 4,000

Explanation:

Computation  for over or under application of overhead

Estimated overhead                                          $ 144,000

Estimated Direct labour cost                            $ 240,000

Estimated predetermined overhead              

$ 144,000 / $ 240,000               = $ 0.60 per direct labor cost

Total of applied overhead is Direct labor costs * Overhead rate per Direct labor cost.

$ 220,000 * $ 0.60   = Applied Overhead                $ 132,000

                                      Actual Overhead                  <u>$ 136,000</u>

Under applied overhead                                           $ ( 4,000)

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Alex has saved $30 per week to buy a new Blu-Ray player. He compares two different models: a Panaview that is priced at $130 and
podryga [215]

Answer and Explanation:

The classification is as follows:

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2 years ago
The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of
goblinko [34]

Answer:

Retail Division  = $480,000

Commercial Division = $125,000

Explanation:

<u>Divisional income from operations for the Retail Division and the Commercial Division</u>

                                                    Retail Division     Commercial Division

Sales                                               $2,150,000              $1,200,000

Cost of goods sold                        ($1,300,000)             ($800,000)

Controllable Contribution                $850,000                 $400,000

Less Expenses

Selling expenses                            ($150,000)                 ($175,000)

Allocated Central Costs                 ($220,000)                ($100,000)

Net Income before tax                    $480,000                  $125,000

Calculations :

Allocation of Central Costs :

Retail Division (2,750/ 4,000 ×  $320,000) = $220,000

Retail Division (1,250/ 4,000 ×  $320,000) = $100,000

4 0
3 years ago
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yanalaym [24]

Answer:

Operating Income= $110,000

Explanation:

Giving the following information:

Robusta Coffee Importers sold 6,000 units in October at a sales price of $35 per unit. The variable cost is $ 15 per unit. The monthly fixed costs are $10,000.

The operating income is the difference between the contribution margin and the fixed costs:

Contribution margin= selling price - unitary variable cost

Operating income= Total contribution margin - fixed costs

OI= 6,000*(35 - 15) - 10,000= $110,000

7 0
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