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seropon [69]
2 years ago
14

Snape Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hour

s. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours. The predetermined overhead rate is closest to: a. $7.10 per direct labor-hour b. $11.90 per direct labor-hour c. $2.40 per direct labor-hour d. $9.50 per direct labor-hour
Business
1 answer:
AfilCa [17]2 years ago
7 0

Answer:

Estimated manufacturing overhead rate= $9.5 per direct labor hour

Explanation:

Giving the following information:

The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (497,000/70,000) + 2.4

Estimated manufacturing overhead rate= $9.5 per direct labor hour

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Answer: Liability of $300,000

Explanation:

In the question above, what we have is a deferred tax liability, which could be explained as the amount accrued in taxes at a present time but payable in the future. The tax rate will not be based in the present tax rate. Thus is why we will not be using the 30% tax tate of 2018 in calculating the tax amount.

Tax rate = 40%

Exceeded tax basis = $750,000

0.4 × 750,000 = $300,000

Therefore, Johns-Hopper should report the deferred tax effect of this difference in its December 31, 2018, balance sheet as Liability of $300,000

7 0
2 years ago
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​When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip t
nignag [31]

Answer:

bundle pricing

Explanation:

Bundle pricing

Bundle pricing is a marketing strategy in which company want to sell their products and services in  price lower than they actually charge. The reason behind inducing bundle pricing is to allow customer  to have more services and products by giving them discount.

In other words bundle pricing is mean to offer heavy discount in order to make huge profit by selling their products in large number.

8 0
3 years ago
Firms may invest in fewer projects as a result of A. an increase in interest rates that increase economic growth. B. an increase
kupik [55]

Answer: B. an increase in interest rates that decrease economic growth.

Explanation:

If interest rates were to rise in an Economy, that would mean that the cost of borrowing just rose. The rise in the Cost of Borrowing reduces consumer spending as well as business investment. This will therefore lead to a lower Aggregate demand. A lower AD in the Economy usually leads to a decrease in economic growth.

Now, if such things were to happen, a firm may definitely invest in fewer projects because first off it will be more expensive for them to borrow and invest because of the high rates. They will also be discouraged because of the Decrease in economic growth as the chances of their projects doing well will be drop in a depreciating economy.

7 0
3 years ago
Assume that a consumer purchases a combination of products Y and Z and that the MUy/Py = 30/2 and MUz/Pz = 45/3. To maximize uti
IrinaVladis [17]

Answer:

Make no change in Y and Z.

Explanation:

It was assumed that consumer purchases the combination of two goods, Y and Z.

\frac{MU_{Y} }{P_{Y}}= \frac{30}{2} = 15

\frac{MU_{Z}}{P_{Z}}=\frac{45}{3}=15

For maximizing the utility of the consumer, the ratio of marginal utilities must be equal to the price ratio of the products.

We can see that the ratio of marginal utilities is equal to the price ratio of the products. Hence, the consumer should not make any changes to the combination of products.

7 0
3 years ago
Calculate the present value of the after tax net returns to land in the 7th year if thereal pre-tax net returns to land today ar
Tatiana [17]

Answer:

PV(after-tax net return in 7th year) = 70.55 (Approx)

Explanation:

Given:

Number of year = 7

Pre-tax net returns (Fn) = $100

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Inflation = 3% = 0.03

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Discount rate = 10% = 0.1

Computation:

Fn = Fo(1+g)ⁿ = 100(1.04)⁷

Fn = 131.6

Nominal net returns = 131.6(1.03)⁷

Nominal net returns = 161.85

After tax return = 161.85  (1 - 0.3)

After tax return = 113.30

After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%

PV(after-tax net return in 7th year) = 113.30 (1+0.07)⁻⁷

PV(after-tax net return in 7th year) = 70.55 (Approx)

8 0
2 years ago
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