Answer:
a. The equivalent units for materials using the weighted-average method 223432 gallons
b. The equivalent units for conversion costs using the weighted-average method 218714 gallons
Explanation:
The Concept of Equivalent units needs to be first defined.Equivalent Units in process costing is the number of units in terms of completion stage or percentage of a certain input element in the process.
<em>Step 1 Calculate the Units of Closing Work In Process</em>
Hint: Units IN must equal units Out
Units of Closing Work In Process = Units of Opening Work In Process + Units Started during the year - Units of Closing Work In Process
Therefore Units of Closing Work In Process = 43300+235400-211300
= 67400 units
<em>Step 2 Calculate the Equivalent Units of Materials</em>
Closing Work In Process ( 67400×18%) = 12132
Completed and Transferred Out ( 211300×100%) = 211300
Total 223432
<em>Step 3 Calculate the Equivalent Units of conversion costs</em>
Closing Work In Process ( 67400×11%) = 7414
Completed and Transferred Out ( 211300×100%) = 211300
Total 218714
Answer:
$634,443
Explanation:
The computation of total overhead applied to Product P4 under activity-based costing is shown below:-
Activity Expected Expected Activity
costs Activity Rate
a b c = a ÷ b
Labor related $145,000 6,000 DLHs 24.17 per DLHs
Production
orders $68,360 1,400 orders 48.83 Per orders
Order size $1,069,190 5,800 MHs 184.34 per MHs
Product P4
Activity driver Overhead
Incurred Assigned
d e = c × d
2,000 $48,340
300 $14,649
3,100 $571,454
Total overhead cost $634,443
Answer:
A price Floor
Explanation:
The minimum wage is a price floor. The minimum wage is a price below which you cannot sell labor, and the suppliers of labor exceed the buyers of labor.
Answer:
No options are given, but the most commonly used survey response methods are:
- Multiple choice questions = generally easy to code
- Rating scale questions = also easy to code, since response scales have a finite number of choices, e.g. 2 true/false, 3 agree/disagree/undecided, 5 very bad/bad/fair/good/excellent
- Matrix questions. = are a little bit more complex since they involve several rating scale questions, but it is not something difficult either
- Dropdown questions. = similar to multiple choice questions
- Open-ended questions. = this are hard to code since each subject can respond different things, e.g. the thing that I like the most about this project is bla, bla, bla. There are no pre-set answers given to the subjects. THIS TYPE IS THE MOST DIFFICULT TO CODE.
- Demographic questions = similar to multiple choice
- Ranking questions = similar to scaled questions
A. The items that fall under the DIRECT MATERIAL category include the following:
1. Film cost for the X ray machine.
2. Electricity cost for the X ray department.
3. Maintenance and repair on the X ray machine.
4. X ray department supplies.
The items that fall under the DIRECT LABOUR category include the following:
1. Salaries of the X ray machine technician.
2. Salary of the X ray technicians' supervisor.
The items that fall under the SERVICE OVERHEAD category include the following:
1. Wages for the hospital janitorial personnel.
2. Property taxes on the hospital building.
3. Depreciation on the hospital building.
4. Depreciation on the X ray department equipment [Manufacturing overhead]
B. The costs that are incurred during the production of a good or service are usually divided into three categories, which are direct material, direct labour and overhead costs.
Direct materials refer to those materials used in the production process which can be traced to a particular unit or department. A good example of a direct material is the raw materials used in the production unit for the production of a particular product.
Direct labour refers to the salaries and wages of those employees that are directly involved in the production process or in carrying out a particular operation. An example of a direct labour for the production of chocolates is the salary of those workers in the production unit.
Overhead cost refers to all other costs that are incurred during the process of production.These costs can not be traced to a specific department per say, but it cover the whole business unit. Overhead cost is of two types: administrative and manufacturing overheads. Examples of overhead costs are rent, utilities, insurance, depreciation, etc.
