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ANTONII [103]
3 years ago
10

Hill Co. can further process Product O to produce Product P. Product O is currently selling for $60 per pound and costs $42 per

pound to produce. Product P would sell for $82 per pound and would require an additional cost of $13 per pound to produce. The differential cost of producing Product P is $13 per pound.(A) True(B) False
Business
1 answer:
Elina [12.6K]3 years ago
4 0

Answer:

(A) True

Explanation:

Differential cost is the difference between the cost to produce Product O and produce Product P; in this case it’s the additional cost of $13 per pound to produce

So the statement “The differential cost of producing Product P is $13 per pound” is true

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Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost
Ghella [55]

Answer:

See below

Explanation:

1. Predetermined overhead rates

= Applied overhead / Direct labor

Job 114

Applied overhead / direct labor

= $1,260/1,800

= 70%

Job 115

Applied overhead / direct labor

= $994/1,420

= 70%

Job 116

Applied overhead / direct labor

= $3,094/4,420

= 70%

2 and 3 Ending balance of each job and work in process as of April 30th.

Job 114. Job116

Opening. $2,384. $3,085

Materials

Purchases $16,800. $5,410

Direct labor

($1,800+$1,800) $3,600. $5,740

Actual $2,520 $4,018

Overhead

at 59.36%

Balance $25,304. $18,253

• Note

The whole of job 115 has been sold out.

• Actual overhead = Actual overhead / direct labor

= $4,535/7,640

= 59.36%

4 Cost of goods sold in April

Job 115

Opening materials. $2,603

Purchases. $12,460

Direct labor

($1,420 + $3,080). $4,500

Actual overhead. $3,150

at 59.36%

Cost of goods sold $22,713

5. Selling price of job

Cost of job 115 = $22,713

Selling price = 1.25% × $22,713 = $28,391

4 0
2 years ago
Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs t
erastovalidia [21]

Answer:

Balance for the Factory Overhead account: 19,000 credit

Explanation:

We will first, calculate the overhead rate based on the predetermination overhead rate:

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

The total manufacturing cost will be distributed over the cost driver. In this case, labor cost:

360,000/180,000 = 2 overhead rate

Then, we calculate the applied overhead 203,000 x 2 = 406,000

Now, the balance for factory overhead account:

Actual overhead: 387,000 debit

        payable, accumulated depreicaiton and other 387,000 credit

WIP 406,000 debit

Applied Overhead 406,000 credit

Balance:

406,000 - 387,000 = 19,000 credit

8 0
3 years ago
Fusaro Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year.
andrew-mc [135]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Fusaro Corporation uses a predetermined overhead rate base on machine-hours.

Estimated total fixed manufacturing overhead= $684,000

Estimated activity level= 40,000 machine-hours

Actual activity level 37,700 machine-hours

First, we need to calculate the predetermined overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 684,000/40,000= $17.1 per machine hour

Now, we can allocate the manufacturing overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 17.1* 37,700= $644,670

5 0
3 years ago
E2-6 Investment Income LO 2-2, 2-3 What net income would Ravine Corporation have reported for each of the years, assuming Ravine
zheka24 [161]

Answer: investment Income

Explanation: By Carrying  the Investment at fair Value or by using equity method would ensure that the investment income is spread adequately across the Corporation over the years be it two years or three years. This would also help the corporation to make proper planning around their budget and finances as regards to units in the corporation.

4 0
3 years ago
Kono corp. , an american company, is trying to decide whether to open its first international branch in europe or asia. The mana
scZoUnD [109]

The managers of Kono Corp., which is an American company trying to open a branch in Europe or Asia are operating under a condition of <u>D. uncertainty</u>.

<h3>What is uncertainty?</h3>

Uncertainty refers to situations where the information is imperfect or unknown. When operating under uncertainty, some evaluations need to be undertaken to close the information gap.

<h3>Answer Options:</h3>

A. goal displacement.

B. illusion of control.

C. social reality.

D. uncertainty.

Thus, the managers of Kono Corp. are not operating under goal displacement, the illusion of control, or social reality, but it is operating under conditions of uncertainty.

Learn more about Uncertainty at brainly.com/question/3998745

6 0
2 years ago
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