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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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Fill in the missing amounts.
Marrrta [24]

Answer:

Find my analysis below

Explanation:

The gross profit rate is the portion of net sales earned as gross profit prior to considering operating expenses as indicated by the formula below:

gross profit rate=gross profit/net sales

The profit margin measures the net income as a percentage of net sales

profit margin=net income/net sales

                                Crane company Sheridan company

Sales revenue                 $94,200  $103,000  

sales returns and allowance  $14,000  $3,000  

Net sales                           $80,200  $100,000  

cost of goods sold                  $54,200  $50,000  

Gross profit                               $26,000  $50,000  

Operating expenses            $14,700  $34,400  

Net income                            $11,300  $15,600  

 

Gross profit rate=gross profit /net sales 32.4% 50.0%

Profit margin=net income/net sales         14.1% 15.6%

Crane company Sheridan company

Sales revenue                 94200 =F5+F4

sales returns and allowance  =E3-E5 3000

Net sales                       80200 100000

cost of goods sold              54200 =F5-F7

Gross profit                       =E5-E6 50000

Operating expenses        14700 =F7-F9

Net income                            =E7-E8 15600

 

Gross profit rate=gross profit /net sales =E7/E5 =F7/F5

Profit margin=net income/net sales =E9/E5 =F9/F5

7 0
2 years ago
The CEO of a multinational company finds that profits are drastically decreasing. He realizes that employees need to be immediat
dangina [55]

The CEO should use videoconference. In general, one should deliver straightforward and routine communications through less rich media and challenging and unique messages through richer media.

<h3><u>What are the advantages of Media in Business?</u></h3>
  • Helps in getting more awareness about the business to the employees, clients and public.
  • Cheap way of communication
  • With the advent of social media, advertisements can be made easy and conveniently
  • People can compare different products
  • Firms can maintain coordination of its employees
  • Recruit new hire
  • To conduct market research and ask for reviews
  • It provides great exposure
  • It provides a powerful marketing platform for free
  • It facilitates online discussions and meeting via videoconferencing, voice calls, etc.
  • Helps to reach a larger audience and inform a common thing.

You can learn more about Multinational Corporations here:

brainly.com/question/9970957

#SPJ4

4 0
2 years ago
Atom Endeavour Co. issued $21 million face amount of 4.0% bonds when market interest rates were 4.46% for bonds of similar risk
Eduardwww [97]

Answer:

A. $840,000

B. Discount

C. Annual interest expense on these bonds will be more than  the amount of interest paid each year.

Explanation:

Data

Bonds issued = $21,000,000

Coupin rate = 4.0%

Market Interest rate = 4.46%

Requirement A: Annual interest amount

Interest amount = Bonds issued x coupon rate

Interest amount = $21,000,000 x 4.0%

Interest amount = $840,000

Requirement B: Whether it is Premium or Discount?

Bonds that Atom Endeavour Co. issued are discount as you can clearly see in the data that the market rate is higher than the coupon rate. Investors who will buy these bonds surely expect a capital gain.

Requirement C:

The discount on the issue of bonds is amortized to interest expense over the life of the bond, therefore the interest expense on these bonds will be more than the amount of interest paid each year,

3 0
3 years ago
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. . T
Anuta_ua [19.1K]

Answer:

$2,250,000

Explanation:

Preparation for the lower portion of the 2021 income statement

CALIFORNIA MICROTECH CORPORATION

Partial Income Statement

For the Year Ended December 31, 2021

Income from continuing operations before income taxes 7,800,000

Less Income tax expense 1,950,000

(25%*7,800,000)

Income from continuing operations 5,850,000

Discontinued operations:

Loss from operations of discontinued component (4,800,000)

Income tax benefit, 1,200,000

(25%*4,800,000)

Loss on discontinued operations (3,600,000)

Net income (5,850,000 - 3,600,000) $2,250,000

Therefore the Net income will be $2,250,000

8 0
3 years ago
Radek Company estimates its uncollectible accounts by aging its accounts receivable and applying percentages to various aged cat
stepladder [879]

Answer:

the  bad debt expense that reported in the income statement is  $2,300

Explanation:

The computation of the bad debt expense that reported in the income statement is as follows;

= Total estimated uncollectible accounts - unused balance

= $3,200 - $900

= $2,300

Hence, the  bad debt expense that reported in the income statement is  $2,300

7 0
2 years ago
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