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Rashid [163]
3 years ago
9

The manufacturing overhead budget of Inch Corporation is based on budgeted direct labor-hours. The September direct labor budget

indicates that 4,400 direct labor-hours will be required in that month. The variable overhead rate is $5.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $59,400 per month, which includes depreciation of $10,560. All other fixed manufacturing overhead costs represent current cash flows. Required: Determine the cash disbursement for manufacturing overhead for September (present with no decimal places). $ 70840 Determine the predetermined overhead rate for September. (round to 2 decimal place) $
Business
1 answer:
Lubov Fominskaja [6]3 years ago
7 0

Answer:

$70,840; $18.50

Explanation:

Variable manufacturing overhead:

=  Budgeted direct labor-hours ×  Variable overhead rate

= 4,400 × $5

= $22,000

Total manufacturing overhead:

= Variable manufacturing overhead + Fixed manufacturing overhead

= $22,000 + $59,400

= $81,400

(a) cash disbursement for manufacturing overhead for September:

= Total manufacturing overhead - Depreciation

= $81,400 - $10,560

= $70,840

(b) Predetermined overhead rate for September:

= Total manufacturing overhead ÷ Budgeted direct labor-hours

= $81,400 ÷ 4,400

= $18.50

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Marcus is a self-employed marketing consultant. He is good at helping his clients with their marketing challenges; however, he i
Xelga [282]

Answer:

outsource the accounting function to another firm

Explanation:

Based on this information regarding Marcus' situation, the best advice would be for him to outsource the accounting function to another firm. This is something that many individuals/companies do and will allow Marcus to focus all of his time and energy on what he is best at (which is helping his clients with their marketing challenges.) while at the same time making sure that the accounting tasks such as billing the clients are done quickly and correctly.

8 0
3 years ago
A process has low fixed costs and high variable costs. It is currently capacity-constrained. Will the impact of an efficiency im
Lubov Fominskaja [6]

Answer:

Small

Explanation:

Fixed costs are the costs that do not change when output level changes, while variable costs are costs that change as output quantity changes.

When a production process is capacity constrained, it implies that there is a factor that does not allow it to produce more output. Examples of such factors are minor bottlenecks, constrained designs and resources, and others.

A process is said to be efficient when it can avoid waste of resources in producing desired output.

Efficiency improvement therefore occurs when more output can be produced with less resources.

In the question, given that the process is currently capacity-constrained, efficiency improvement will result in producing more output at higher costs because of high variable costs despite that the process has low fixed costs.

As a result, the impact of an efficiency improvement will be small because producing more output will result in incurring higher cost due to high variable costs that change as quantity of output changes. That is, the impact of efficiency improvement will be small because high variable costs with low fixed cost will result in higher production cost.

3 0
3 years ago
Before the year began, Murphy Manufacturing estimated that manufacturing overhead for the year would be $176,000 and that 13, 70
saveliy_v [14]

Answer:

A. $194, 035

Explanation:

Predetermined Manufacturing overhead Rate = Estimated total overheads / Estimated direct labor hours

Predetermined Manufacturing overhead Rate = $176,000 / 13,700

Predetermined Manufacturing overhead Rate = $12.85 /  direct labor hour

Actual Labor hours = 15,100 hours

Manufacturing overhead allocated = $12.85x 15,100

Manufacturing overhead allocated = $194,035

The correct option is A. $194, 035

7 0
3 years ago
All of the following are conducive to economic growth except
zysi [14]

Answer:

B. an unfavorable balance of trade and payments

Explanation:

  • The BOP or the balance of trade is defined as the net gains or net exports that make the balance of payments and is said to be favorable when the country export more and imports less and is a positive change.
  • It is said to be negative when the country imports more and exports less thus unfavorable in terms of the trade and payments.
  • <u>Hence it means that the country has a deficit and this can impact the services and is not good for the economic growth perspective.</u>
6 0
3 years ago
Paradise Corp. has determined a standard labor cost per unit of $10.20 (1 hour × $10.20 per hour). Last month, Paradise incurred
bezimeni [28]

Answer:

Direct Labor Rate Variance  =  $825 favorable

Direct Labor Efficiency Variance  =  $510 favorable

Total Direct Labor Spending Variance = $1,335 favorable

Explanation:

The computations are shown below:

Direct Labor Rate Variance

= (Standard rate  - Actual rate) ×  Actual hours

= ($10.20 - $16,005 ÷ 1,650 labor hours) × 1,650 direct labor hours

= ($10.20 - $9.7) × 1,650 direct labor hours

= $825 favorable

Direct Labor Efficiency Variance

= (Standard Hours allowed - Actual hours) × Standard rate

= (1,700 units × 1 hour - 1,650 hours) × $10.20

= (1,700 hours - 1,650 hours) × $10.20

= $510 favorable

Total Direct Labor Spending Variance

= Standard cost - actual cost

= 1,700 hours × $10.20 - $16,005

= $17,340 - $16,005

= $1,335 favorable

3 0
3 years ago
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