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
State Road Fabricators Inc. is considering eliminating Model A02777 because of losses over the past quarter. The past three mont
ICE Princess25 [194]

Answer:

Option (C) is correct.

Explanation:

Manufacturing costs:

= Direct Materials + Direct Labor + Variable overhead

= $160,000 + $80,000 + (150,000 × 75%)

= $160,000 + $80,000 + $112,500

= $352,500

Operating income:

= Sales​ (1,100 units) - Manufacturing costs

= $370,000 - $352,500

= $17,500

Therefore, if Model A02777 is dropped from the product​ line, operating income will​ decrease by​ $17,500.

6 0
3 years ago
When weighing your employment options, consider _____. employee benefits pay period taxes taxable income
kkurt [141]
When weighing your employment options, these are very important to consider:
- Employee Benefits
- Pay period
- Taxes taxable income.
Thus, all of these are very important to consider before accepting the job offer.
7 0
3 years ago
Read 2 more answers
EA16.
Artist 52 [7]

Answer:

Explanation:

The journal entry is shown below:

Work in process A/c - shaping department Dr $35,000

Work in process A/c - packaging department Dr $25,000

         To Manufacturing overhead A/c $60,000

(Being apply overhead to the manufacturing departments is recorded)

The computation is shown below:

For shaping department

= 3,500 machine hours × $10 per machine hour

= $35,000

For Packaging department

= 2,500 machine hours × $10 per machine hour

= $25,000

5 0
3 years ago
Conducting ourselves ethically and within the law of business practices
Leno4ka [110]
Conducting yourself ethically and legally could have examples of: making products that are trustworthy, don't false advertise (yes, you can legally do things like endorsements and bandwagons, but you can't say "If you buy this product, you will be elected to a high office!".
3 0
3 years ago
Executives at southwestern construction have noticed that the company's construction team in the phoenix office is more efficien
Debora [2.8K]

Answer:

Leveraging the experience of one group to help another group.

Explanation:

Southwestern Construction is hoping to use (leverage) the knowledge of the team in one office by sharing the knowledge with another office and hoping that the second office will also become more efficient simply by adopting the new strategies.

8 0
3 years ago
Other questions:
  • A top executive at IBM shared with his friends some "inside" information that allowed them to engage in very profitable stock tr
    12·1 answer
  • Under normal conditions (75% probability), financing plan a will produce $25,000 higher return than plan
    9·1 answer
  • Which characteristic describes the privatization of social security
    6·1 answer
  • The marginal product of labor is the:
    13·1 answer
  • Both Nadia and Samantha are applying to insure their car against theft. Nadia lives in a secure neighborhood, where the probabil
    10·1 answer
  • On June 1, year 2, Oak Corp. granted stock options to certain key employees as additional compensation. The options were for 1,0
    13·1 answer
  • The local supermarket buys lettuce each day to ensure really fresh produce. Each morning, any lettuce that is left from the prev
    14·1 answer
  • The ____ rate is the interest rate banks charge each other for borrowing or storing money?
    15·2 answers
  • Is building a house a ​
    7·2 answers
  • Two roadway design are under consideration. Design 1A will cost $3 million to build and $100,000 per year to maintain. Design 1B
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!