1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
amm1812
2 years ago
11

Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's

predetermined overhead rate of $2.40 per machine-hour was based on a cost formula that estimates $192,000 of total manufacturing overhead for an estimated activity level of 80,000 machine-hours.
Required:

a. Assume that during the year the company works only 78,000 machine-hours and incurs $225,000 Manufacturing Overhead. Compute the amount of overhead cost that would be applied to Work in Process for the year.
b. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account.
c. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.
Business
1 answer:
Anastaziya [24]2 years ago
8 0

Answer:

a) 187,200 applied overhead

b( Overhead T-account

       Overhead

<u>    Debit        Credit       </u>

                      187,200

   225,000

<u>                        37,800   </u>

  225,000   225,000

 Balance:  0

c)

Cost of goods sold 37,800 debit

    Factory overhead   37,800 credit

Explanation:

78,000 machine hours x 2.40 dollar per hour = 187,200 applied overhead

incurred overhead: 225,000

applied overhead     187,200

as the actual overhead is above the applied amount we underapplied we need to increase it by the difference:

225,000 - 187,200= 37,800

You might be interested in
Comparative advantage A. is unlikely to​ change, once it has been defined. B. may change as time passes and circumstances change
Alona [7]

Answer:

The correct answer is B. may change as time passes and circumstances

Explanation:

The concept of comparative advantage is one of the basic foundations of international trade. It assumes as decisive the relative costs of production and not the absolute ones. In other words, countries produce goods that have a lower relative cost compared to the rest of the world.

8 0
3 years ago
A landowner in Texas is offered $200,000 for the exploration rights to oil on her land, along with a 25% royalty on the future p
Shtirlitz [24]

Answer:

b. She should develop herself as the EMV of developing is $1.125 million, which is higher than the EMV of selling.

Explanation:

The probability of discovered oil = 0.25 (25%)

Selling the exploration right= Selling Price + Probability of discovered oil × Royalty% × Future Profit

= $200,000 + 0.25 × 0.25 × $7,500,000 = $668,750

Developing = Probability of finding the oil × Future Profits - Cost of Well

= 0.25 × $7,500,000 - $750,000 = $1,125,000

= $1.125 million

Therefore the EMV for selling the exploration rights is less than the developing, the landowner will develop the site by his own.

4 0
2 years ago
Question 8 of 10
kirill115 [55]

Answer:

A. A balance sheet shows the total assets, liabilities, and owner's

equity at the end of the period

Explanation:

As we know that

The income statement recognized only the income earned and expenses incurred of an organization

While on the other hand the balance sheet shows the financial position, profitability of the company. It involves assets, liabilities and stockholder equity

So according to the given options, the option A is correct

hence, the rest of the options would be incorrect

6 0
2 years ago
The following situations suggest a strength or a weakness in internal control. Identify each as a strength or weakness​, and giv
Mkey [24]

Answer: Options A and C are strengths while options B and D are weaknesses. See explanation below.

Explanation:

a. All employees must take at least five consecutive days off each year.

This is a strength in internal control. This would help to maintain stability in operational process and ensure leave days are effectively utilized. It also prevents staff from taking the leave days in piecemeal and sporadic manner thereby disrupting the operational process and causing team instability. It is also used to ensure leave days are promptly utilised and well accounted for.

b. The accounting department orders merchandise and approves invoices for payment.

This is a weakness in internal control. There should be a check and balance in this regard. In some organizations, proper scrutiny of the vendor and invoice is done by the Procurement Unit and the Expense Control Unit respectively. Even within the accounting department, there is approval hierarchy. Also, the unit within accounting department that is making the order should not be the one to approve the transaction.

c. Cash received over the counter is controlled by the sales​ clerk, who rings up the sale and places the cash in the register. The daily sales are recorded in the accounting records by the accounting department.

This is a strength in internal control as it ensures checks and balances. Fraud and error can be detected through this means. The accounting department should verify the transactions to the relevant supporting document before recording the transaction in the system.

d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.

This is a weakness in internal control in the sense that checks signed by the officer is binding in the court of law. The officer cannot claim ignorance if anything goes wrong. There is therefore a need for proper scrutiny and relevant questions asked before checks are signed.

7 0
3 years ago
The cost object in a job order system is the ______ and the cost object in a process costing system is the ______.
nordsb [41]

Answer:

The correct word for the blank space is: specific job; process.

Explanation:

The cost object represents the cost of an object or department for which that cost is assigned. For instance, the repairs department of a dealership is a cost object of the repairs employees and the repair supplies. Cost objects are usually traceable thus are treated as direct costs for accounting purposes.

Then, <em>the cost object of a job order is the specific job assigned</em>; <em>while the cost object of a process costing system is the process </em>itself.

6 0
3 years ago
Other questions:
  • An investor invests $4,000 to buy 200 shares of Sand Corporation, which has an expected return of 24%; $2,000 to buy 100 shares
    7·1 answer
  • An investor is analyzing a three-unit property by looking at its ability to produce future income. What would most likely be use
    14·1 answer
  • The terms of trade must be higher (graphically to the right) of a nation's own production __________________
    11·1 answer
  • Abardeen Corporation borrowed $90,000 from the bank on October 1, 2018. The note had an 8 percent annual rate of interest and ma
    10·1 answer
  • 7. You have saved $4,000 for a down payment on a new car. The largest monthly payment you can affort is $350. The loan will have
    6·1 answer
  • Alexandria has gone to the store to shop for a new backpack. She looks for the same brand she has always bought in the past but
    6·1 answer
  • Overhead cost is not only a concern for a business but for an individual. What overhead cost would you have to take into conside
    13·1 answer
  • n the cash flow information for the Ping Kings project, Ping spent $300,000 for research and development of the golf clubs. Ping
    5·1 answer
  • __________ is defined as a customer's subjective evaluation of benefits relative to costs to determine the worth of a firm's pro
    14·1 answer
  • Consumer wealth is defined as the total value of ______. Multiple choice question. assets minus the total value of liabilities a
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!