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
Len [333]
3 years ago
6

Moody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the

year, the company made the following estimates:
Machine-hours required to support estimated production 156,000

Fixed manufacturing overhead cost $652,000

Variable manufacturing overhead cost per machine-hour $4.70

Required:

1. Compute the predetermined overhead rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. During the year, Job 400 was started and completed. The following information was available with respect to this job:

Direct materials requisitioned $400

Direct labor cost $210

Machine-hours used 36

Compute the total manufacturing cost assigned to Job 400. (Do not round intermediate calculations and round final answer to 2 decimal places.)

3-a. During the year the company worked a total of 146,000 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,301,980. What is the amount of underapplied or overapplied overhead for the year? (Use the overhead rate determined in requirement 1.)

3-b. If this amount were closed out entirely to Cost of Goods Sold, would net operating income increase or decrease
Business
1 answer:
slava [35]3 years ago
3 0

Answer:

1) Predetermined overhead rate= $8.88 per machine hour

2) Total Manufacturing Costs =  $ 929.66

3a)Underapplied overhead for the year= $ 5500

3-b) If the overhead is underapplied and it is corrected by increasing  Cost of Goods Sold so it reduces net income.

Explanation:

Moody Corporation

Machine-hours required to support estimated production 156,000

Fixed manufacturing overhead cost $652,000

Variable manufacturing overhead cost per machine-hour $4.70

Variable manufacturing overhead=$4.70* 156,000 = $ 733,200

Predetermined overhead rate= Total Overhead Costs/ Direct Labor Hours

1) Predetermined overhead rate= $652,000 +$ 733,200/  156,000 = $8.88 per machine hour

Job 400

Direct materials requisitioned $400

Direct labor cost $210

Machine-hours used 36

Manufacturing Overhead = $ 8.88 * 36=  $ 319.66

2) Total Manufacturing Costs =  $ 929.66

3) Actual manufacturing overhead costs  $1,301,980

Total  machine-hours on all jobs 146,000

Predetermined overhead rate= $8.88 per machine hour

Applied manufacturing overhead costs= 146000* 8.88= $ 1296480

Actual Overhead- Applied Overhead= $1,301,980-$ 1296480= $5500

3-a)Underapplied overhead for the year= $ 5500

3-b) If the overhead is underapplied and it is corrected by increasing  Cost of Goods Sold so it reduces net income. Similarly If the overhead is Overapplied and it is corrected by decreasing  Cost of Goods Sold so it increases net income

You might be interested in
If farmer sam macdoanld can produce 200 pounds of cabbages and 0 pounds of patotes or 0 pound of cabbes and 100 pounds of potato
amid [387]
C is your best answer!! goodluck
5 0
3 years ago
Sara works at a printing company. She and her colleagues have to stagger
dolphi86 [110]

Answer: D. Why the customer needs 5,000 extra flyers

Explanation:

The important factors that Sara will consider to know whether her company can accommodate the request are:

• Whether her company has enough paper on hand

• Whether her company can print the additional flyers without negatively affecting the other projects

• Whether there is enough time to print the additional flyers by tomorrow.

These factors above are important as they'll determine if she can accept the request or not. For example, in a situation where there's no enough paper, then the request should not be accepted.

The least important factor for Sara to consider will be "Why the customer needs 5,000 extra flyers". This is not of concern to Sara and shouldn't bother her.

5 0
3 years ago
Read 2 more answers
During 2010, raines umbrella corp. had sales of $850,000. cost of goods sold, administrative and selling expenses, and depreciat
I am Lyosha [343]
To calculate: 
1) Net income (loss) for 2010.
 2) Operating cash flow 
 Solution: 1)
 Sales = $850000
 Less: Cost of goods sold = $610000
  Gross profit = $240000
 Less: Administrative and selling expenses = $110000 
 Earning before Interest, Tax and Depreciation = $130000
 Less: Depreciation = $140000
  Earning before Interest and Tax (EBIT) = ($10000)
 Less: Interest expense = $85000
  Earning before tax (EBT) = ($95000)
 Less: Tax = $0 (as company is having negative EBT or loss hence no tax)

 
 Net loss = $95000  
 2) Operating cash flow 
 EBIT + Depreciation - Tax 
 Wherein, EBIT = Earning before Interest and Tax
  ($10000) + 140000 - 0 = $130000
4 0
3 years ago
The value proposition for the AARP brand is seen in what kinds of benefits for the members? (Select 3)
FrozenT [24]

Answer:

Ensuring products are well below the going market rate.

Quality of products offered.

Efforts to improve the lives of members.

Explanation:

3 0
2 years ago
When the indirect method is used, if accounts receivable increases during the accounting period, the change in accounts receivab
liberstina [14]
The answer is that "<span>the change in accounts receivable is subtracted from net income".
</span>

<span>When the indirect method is used, the starting point is the net income and it is transformed to cash flows from operational actions by adding back losses and subtracting gains so that these quantities are removed.</span>

4 0
3 years ago
Other questions:
  • Gear Electronics used to buy all of its component parts from a local plant in Cleveland, Ohio, but this year it has decided to b
    5·1 answer
  • Stone purchased farm land from Fowler with the idea of developing it. Fowler took part payment in cash and the balance in the fo
    8·1 answer
  • Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (790,000 ) $ (120,000
    6·1 answer
  • The ledger of Beckett Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entrie
    8·1 answer
  • Flyer Co. billed a client for flying lessons given in January. The payment was received in February. Under the accrual basis of
    15·1 answer
  • Brian, Kirk, and Jim established a partnership with equal capital contributions. However, Kirk provided an additional contributi
    8·1 answer
  • The annual planning process at Century Office Systems, Inc. had been arduous but produced a number of important marketing initia
    15·1 answer
  • The following information is available for Ethtridge Manufacturing Company for the month ending July 31:
    8·1 answer
  • Can someone help me it’s for a quiz
    6·1 answer
  • Harry created a mask-manufacturing corporation by contributing $1,000. He stayed as the sole shareholder and director of the cor
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!