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Mnenie [13.5K]
3 years ago
6

George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufactu

ring overhead cost $235,900​ Actual manufacturing overhead cost $244,600​ Estimated machine hours 20,800​ Actual machine hours 22,600​ The estimates were made as of the beginning of the year, while the actual results were for the entire year. The amount of manufacturing overhead allocated for the year based on machine hours would have been (Round intermediary calculations to the nearest cent and final answer to the nearest dollar.) $256,284. $244,600. $225,119. $235,900.
Business
1 answer:
ale4655 [162]3 years ago
4 0

Answer:

$256,284

Explanation:

The computation is shown below:

First, Calculate the predetermined overhead rate per hour which equals to

=  (Estimated manufacturing Overhead cost ÷ estimated machine hours)  

= ($235,900 ÷ 20,800 hours)

= $11.34 per hour

So, the applied overhead or manufacturing overhead allocated equals to

=  Predetermined overhead rate per hour × actual machine hours

= $11.34 per hour × 22,600 hours

= $256,284

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The cashier for Bell Buoy rang up sales totaling $5,104, but had $5,120 to deposit, which journal entry would be recorded? Multi
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A debit to Cash for $5,120, a credit to Cash Overage for $16, and a credit to Sales Revenue for $5,104.

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In the current situation, the cash received is in excess of revenue recorded, thus, there will be cash overage.

As per books cash shall be $5,104 but since actual cash is $5,120 there is cash overage of $16

Therefore, for this, actual cash received shall be debited = $1,520

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Thus, correct option is: Entry A

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Other variable costs per unit subtracted from total COGS per unit equals contribution margin per unit.

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Variable costs play an important role in determining a product's contribution margin, which is used to calculate a company's break-even or target profit level.

Variable costs are a direct input in the calculation of contribution margin, which is the number of proceeds collected after deducting variable costs from sale proceeds.

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As a result, variable costs are a necessary item for businesses attempting to determine their break-even point.

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