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
vovangra [49]
3 years ago
5

During the current year, Elk Company incurred the following direct labor costs: January $40,000 and February $60,000. Elk uses a

predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months, respectively, totaled $39,000 and $71,400. Actual overhead for the 2 months, respectively, totaled $50,000 and $67,000. Was overhead under- or overapplied during January and by how much?
Business
1 answer:
Rom4ik [11]3 years ago
5 0

Answer:

January Overheads are <u>under-applied</u> by $2,000.

Explanation:

When,

Actual overheads > Applied overheads we say overheads are under-applied.

Actual overheads < Applied overheads we say overheads are over-applied.

Where,

Applied overheads = Predetermined overhead rate × Actual Activity

Therefore,

Applied overheads (January) = 120% × $40,000

                                                = $48,000

Actual overheads (January) = $50,000.

Conclusion

It can be seen that from the above : Actual overheads : $50,000 > Applied overhead : $48,000, therefore overheads were under-applied.

Amount of under-applied overheads = $50,000 - $48,000

                                                             = $2,000

You might be interested in
What are the two facets of a mode of production according to E.K. Hunt? Define them.
pentagon [3]

Answer:

They are forces of production and social relations of production.

Explanation:

In Marxism and historical materialism the forces of production are a central idea. In the own critique of political economy by Karl Marx and Frederick Engels, it refers to the combination of the means of labor with human labor power.

forces of production is a term used in political economy that refers to the physical means and production techniques to which laborers add value and transform capital into saleable products.

By " relations of production," Marx and Engels meant the total sum of social relationships that people have to enter to survive, produce, and reproduce their means of living...relations can be social ties, economic relationships, or technological relationships.

3 0
3 years ago
If a country changes its corporate tax laws so that domestic businesses build and manage more business in other countries, then
LekaFEV [45]

Answer: falls and the net capital outflow of other countries rise

Explanation:

Net capital outflow refers to the net flow of funds that's invested abroad by a particular country at a particular period. It should be noted that a positive net capital flow simply means that such country invests more outside more than than what the other parts of the world invests in it.

Given the question above, since the country changes its corporate tax laws so that domestic businesses build and manage more business in other countries, it means that the net capital outflow of that country falls and the net capital outflow of other countries rise.

3 0
2 years ago
At the beginning of the year, a firm had current assets of $121,306 and current liabilities of $124,509. At the end of the year,
Alex73 [517]

Answer:

E $21,903

Explanation:

Formula:

Net working capital: Current assets - Current liabilities

At the beginning of the year the net working capital was:

Net working capital: Current assets - Current liabilities

Net working capital: 121,306 - 124,509

Net working capital: -3,203

At the end of the year the net working capital was:

Net working capital: Current assets - Current liabilities

Net working capital: 122,418 - 103,718

Net working capital: 18,700

The difference between the beginning and final net working capital was:

Difference: Final NWC - Inicial NWC

Difference: 18,700 - (-3,203)

Difference: 18700 + 3,203

Difference: 21,903

4 0
3 years ago
Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its cost of equity is 16 p
alexira [117]

Answer:

The company WACC is 13.30%

Explanation:

For computing the WACC, first we have to find the weight-age of both debt and equity.

Since in the question, the weightage of debt and equity is given which is equals to

Debt = 30%

And, Equity or common stock = 70%

So, we can easily compute the WACC. The formula is shown below

= Weighted of debt × cost of debt × (1- tax rate) + Weighted of equity × cost of equity

= 0.30 × 0.10 × (1 - 0.30) + 0.70 × 0.16

= 0.021 + 0.112

= 13.30%

Hence, the company WACC is 13.30%

6 0
3 years ago
During his annual performance review, Blake says to his supervisor, "So the two main ways that you want me to improve are to dou
Rom4ik [11]

Answer:

E. summarizing

Explanation:

This is an effective listening skill, as Blake asked his manager to improve what he said, and he articulated key ideas, and he took key points from people doubling his work to improve accuracy and become a team.              

The player being investigated  

so correct option is E. summarizing

6 0
2 years ago
Other questions:
  • The population of a country has a relative growth rate of 3% per year. The government is trying to reduce the growth rate to 2%.
    11·1 answer
  • Suppose 30% of business majors major in accounting. You take a random sample of 3 business majors. Answer questions 39 and 40: W
    7·1 answer
  • A common argument in favor of restricting international trade in good x is based on the premise that (A) international trade red
    7·1 answer
  • Tina is a real estate broker who has been asked to sell a property by a client. The property is exactly what she has wanted for
    13·1 answer
  • Colliers, Inc., has 100,000 shares of cumulative preferred stock outstanding. The preferred stock pays dividends in the amount o
    13·1 answer
  • .Consumers are better off with pricing in the following order: 1)________; 2)________; 3)________.
    12·1 answer
  • Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $20,000 plus a note payable to Ca
    7·1 answer
  • A company's Cash account shows an ending balance of $4,600. Reconciling items included a bookkeeper error of $105 (a $525 check
    9·1 answer
  • Which statement is not true regarding a critical asset in the enterprise environment
    7·1 answer
  • A $23 credit to sales was posted as a $230 credit. By what amount is the sales account in error?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!