Answer:
a. $17.44 per hour
b. $43,600 ; $104,640
Explanation:
The computation is shown below:
a. Single plantwide overhead rate equals to
= Total Overhead Amount ÷ Budgeted Direct Labor Hours
where,
Total overhead amount is
= $625,000 + $900,000 + $105,000 + $175,000 + $300,000 + $75,000
= $2,180,000
And, the budgeted direct labor hours is 125,000
So, the overhead rate is
= $2,180,000 ÷ 125,000
= $17.44 per hour
2. Now the overhead cost is
For Deluxe model
= 2,500 direct labor hours × $17.44 per hour
= $43,600
For basic model
= 6,000 direct labor hours × $17.44 per hour
= $104,640
Answer:
Debit Insurance expense $10,000
Credit Prepaid Insurance $10,000
Being entries to recognize insurance expense for the period (August to December).
Explanation:
Given;
Insurance policy was purchased on July 10 to run for 3 years.
Cost of policy = $72,000
Start date is August 1st. As at 31 December, the policy should have been amortized for 5 months (August to December)
Monthly depreciation = $72,000/(3 × 12)
= $2,000
Total amortization between August and December = 5 × $2,000
= $10,000
Journal entries
Debit Insurance expense $10,000
Credit Prepaid Insurance $10,000
Being entries to recognize insurance expense for the period (August to December).
"Although many things can affect the choice of an appropriate structure for an organization, the following five factors are the most common: size, life cycle, strategy, environment, and technology."
<span>Even though Cindy participated in the
day-to-day operations of the partnership, she is liable as a general partner
only to Jones. This is because Jones knew that Cindy was a general partner. She
cannot be liable to Smith as Smith knew she was a limited partner</span>
Answer:
would capitalize the equipment at $61,500
Explanation:
The capitalized cost of the equipment purchased consists of invoice price of the equipment,transportation costs,sales tax paid as well as costs of installing the equipment .
The capitalized cost is computed as follows:
Cash paid $56,000
Transportation costs $1,600
Sales tax paid $2,300
Installation costs $1,600
total cost $61,500
The rationale for sales tax is that it is recoverable,however the costs of transportation and installation were included because they were incurred in bringing the asset to its current location and condition
