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Aleksandr [31]
3 years ago
14

Petty Corporation has two production departments, Milling and Finishing. The company uses a job-order costing system and compute

s a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Finishing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machining FinishingMachine-hours 19,000 12,000Direct labor-hours 2,000 8,000Total fixed manufacturing overhead cost $136,800 $69,600Variable manufacturing overhead per machine-hour $1.80 Variable manufacturing overhead per direct labor-hour $3.20During the current month the company started and finished Job K928. The following data were recorded for this job:Job K928: Machining FinishingMachine-hours 90 10Direct labor-hours 30 50Direct materials $ 775 $ 415Direct labor cost $ 630 $ 1,050The estimated total manufacturing overhead for the Machining Department is closest to:(A) $136,800(B) $34,200(C) $171,000(D) $359,100
Business
1 answer:
jasenka [17]3 years ago
4 0

Answer:

The correct answer is C: $171,000

Explanation:

The Machining Department’s predetermined overhead rate is based on machine-hour.

At the beginning of the current year, the company had made the following estimates:

Machining:  

Machine-hours 19,000

Direct labor-hours 2,000

Total fixed manufacturing overhead cost $136,800

Variable manufacturing overhead per machine-hour $1.80

Variable manufacturing overhead per direct labor-hour $3.20

Total MOH= Total fixed manufacturing overhead cost + Variable manufacturing overhead* machine-hour

Total MOH= 136,800 + (19000*1.8)= $171,000

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6 0
1 year ago
Otool Inc. is considering using stocks of an old raw material in a special project. The special project would require all 150 ki
frez [133]

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The relevant cost of the 150 kilograms of the raw material when deciding whether to proceed with the special project: $979.

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5 0
3 years ago
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per
inessss [21]

Answer:

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Now we solve for t:

1/1.0155t = 1 − {[($14,500)/($500)](0.0155)}

1/1.0155t= 0.5505

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7 0
3 years ago
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Answer: historical cost

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8 0
2 years ago
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Answer:

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where

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So, putting the values above:

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7 0
3 years ago
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