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ankoles [38]
3 years ago
12

The cost accountant for Kenner Beverage Co. estimated that total factory overhead cost for the Blending Department for the comin

g fiscal year beginning May 1 would be $140,000, and total direct labor costs would be $100,000. During May, the actual direct labor cost totaled $13,500, and factory overhead cost incurred totaled $19,200. Required: What is the predetermined factory overhead rate based on direct labor cost?
Business
1 answer:
DochEvi [55]3 years ago
6 0

Answer:

The 140% is the predetermined factory overhead rate based on direct labor cost.

Explanation:

The given information is shown below:

Total factory overhead cost -  $140,000

Total direct labor costs -  $100,000

Actual direct labor cost -  $13,500

Factory overhead cost - $19,200

By using these information, it is easy to compute predetermined factory overhead rate which is based on direct labor cost. The formula is shown below:

= Total factory overhead cost ÷ Total factory overhead cost

=  ($140,000 ÷  $100,000) × 100

= 1.4 × 100

= 140%

Other cost is irrelevant and thus not be considered while computing predetermined factory overhead rate.

Hence, the 140% is the predetermined factory overhead rate based on direct labor cost.

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Universal Foods issued 10% bonds, dated January 1, with a face amount of $150 million on January 1, 2016. The bonds mature on De
kati45 [8]

Answer:

1. $ 129,352,725

2. Jan 1 2016

Jan 1 2016

Dr Cash $ 129,352,725

Dr Discount on issue of bonds $20,647,275

Cr Bonds payable $150,000,000

3. June 30, 2016

Dr Interest expense $8,188,243

Cr Discount on bonds payable $688,243

Cr Cash $7,500,000

4. December 31, 2023

Dr Interest expense $8,188,243

Cr Discount on bonds payable $688,243

Cr Cash $7,500,000

Explanation:

1. Calculation to Determine the price of the bonds at January 1, 2016

First step is to find Present value of an ordinary annuity of $1: n = 30, i = 6% (PVA of $1) using ordinary annuity table

Present value of an ordinary annuity of $1: n = 30, i = 6% (PVA of $1)

Present value of an ordinary annuity of $1=13.76483

Second step is to find the Present value of $1: n = 30, i = 6% (PV of $1)

Present value of $1: n = 30, i = 6% (PV of $1)=0.17411

Now let calculate the Price of the bonds at January 1, 2016

Interest $ 103,236,225

[(10%/2 semiannually*$150,000,000) *13.76483]

Add Principal $26,116,500

($150,000,000 *0.17411 )

Present value (price) of the bonds $ 129,352,725

($ 103,236,225+$26,116,500)

Therefore the Price of the bonds at January 1, 2016 will be $ 129,352,725

2. Preparation of the journal entry to record their issuance by Universal Foods on January 1, 2016.

Jan 1 2016

Dr Cash $ 129,352,725

($ 103,236,225+$26,116,500)

Dr Discount on issue of bonds $20,647,275

($150,000,000-$ 129,352,725)

Cr Bonds payable $150,000,000

(Being to record issue of Bond)

3. Preparation of the journal entry to record interest on June 30, 2016

June 30, 2016

Dr Interest expense $8,188,243

($7,500,000 + $688,243)

Cr Discount on bonds payable $688,243

($20,647,275 ÷ 30)

Cr Cash $7,500,000

(10%/2 × $150,000,000)

(Being to record interest paid)

4. Preparation of the journal entry to record interest on December 31, 2023.

December 31, 2023

Dr Interest expense $8,188,243

($7,500,000 + $688,243)

Cr Discount on bonds payable $688,243

($20,647,275 ÷ 30)

Cr Cash $7,500,000

(10%/2× $150,000,000)

(Being to record interest paid)

6 0
3 years ago
A business cycle reflects changes in economic activity, particularly real gdp. the stages of a business cycle are?
Lostsunrise [7]

The business cycle goes through four major phases: expansion, peak, contraction, and trough.

A business is an activity that makes a living or makes money by manufacturing or buying and selling products.

Enterprise is defined as an organization or business entity engaged in commercial, industrial, or professional activities. A business can be a commercial or non-commercial organization. The types range from corporations with limited liability to sole proprietorships, corporations and partnerships.

The definition of business is the profession or trade, the buying and selling of goods or services for profit. A business example is agriculture. An example of a transaction is the sale of a home.

Learn more about business here:brainly.com/question/24553900
#SPJ4

8 0
2 years ago
Having the benefit of a tutor or coach who models how to do do things such as setting goals, developing strategies, formulating
Elanso [62]

Answer:

SELF - REGULATION

Explanation:

Self - regulation

This involves controlling one's behavior, emotions and thinking in the pursuit of a goal or objective. Self regulation involves setting goals, developing strategies, formulating implementation intention, monitoring performance, and evaluating how well one is doing and so on. It involves knowing techniques that helps adjust one physically, mentally and emotionally in various conditions in order to promote general well being. It also involves managing one's self.

5 0
3 years ago
A branch of accounting that generates reports and information for the use of internal management for decision making purpose is
earnstyle [38]

Answer:

financial accounting and management accounting

8 0
3 years ago
Misconduct in research or scholarship includes fabrication, falsification, or plagiarism in proposing, performing, reviewing, or
Sever21 [200]

Answer:

Recording data.

Explanation:

7 0
3 years ago
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