Answer:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Explanation:
If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
<u>For example:</u>
Total estimated overhead= $150,000
Allocation base= direct labor hours
Estimated Total number of direct labor hours= 10,000
Predetermined manufacturing overhead rate= 150,000/10,000
Predetermined manufacturing overhead rate= $15 per direct labor hour
Answer:
a. "Not deductible"
b. "Not deductible"
c. "Not deductible"
d. "Deductible"
e. "Not deductible"
f. "Not deductible"
Explanation:
Expenses to be deductible ( especially for tax purposes) must pass the WREN test where;
W stands for wholly
R stands for reasonably
E stands for exclusively
N stands for necessarily
Looking at the expenses incurred and paid for by Doug during the year, the $50 ticket for running a red light is not a necessary expense as an adherence to traffic signs would have prevented such an expense. it can also be said that the expense was not reasonably incurred. This also applies to options b and c. Parking at the handicapped space is completely avoidable (necessity test) and as such the $100 would not have been incurred. While the $200 paid to the attorney for representation in court is an offshoot of options a and b. This would not have been incurred if the first two incidences were avoided.
Option c is deductible as the $500 paid is wholly for the business, reasonable, exclusive and necessary. As such, the expense is deductible or allowable. Options e and f are not related to business and are incurred on personal grounds which are avoidable hence, these expenses would not pass the WREN test.
Answer:
Revenue - 2016 = $60000
Explanation:
The accrual basis of accounting which follow the accrual principle states that the revenues and expenses for a period should match and should be recorded in the periods to which they pertain to. This means that even if a revenue has been earned and not yet received in cash, it will be recorded in the period in which it is earned.
To calculate the firm's revenue, we will use the following equation.
Revenue for the period = Closing Balance of Accounts receivable + Receipts - Opening Balance of Accounts receivable
Revenue - 2016 = 100000 + 30000 - 70000
Revenue - 2016 = $60000
The first method is Accommodation, this is a type of approach where parties are encouraged to express their own opinion without any need for argument. Second would be Compromise where the goal is to find common ground and maintain the relationship. The third is Avoidance, this is used more time is needed before thinking about dealing with issues. Fourth is Competition where one party attempts to win the conflict through dominance and power. The last one is Collaboration, the most effective but most difficult way of managing differences. It requires commitment on all sides to reach a resolution by getting to the bottom of the issue.
