Answer:
The correct answer is "False".
Explanation:
The given values are:
Indirect labor,
= $1,600,000
Factory utilities,
= $400,000
Direct labor hours,
= $50,000
Now,
The plantwide overhead rate will be:
= 
On substituting the values, we get
= 
= 
= 
($) direct labor per hour
Thus the above is the right response.
When calculating the long term capital gain on the sale of the property, it is important to make sure adjustments are made from the original date of purchase and when the land was gifted.
To solve:
Adjusted amount = Original purchase amount + (gift tax X difference in what the land was worth/original land worth amount)
Adjusted amount = $20,000 + ($40,000 X $80,000/$100,000)
Adjusted amount = $52,000
Land owned for $200,000
Adjust amount is $52,000
$200,000 - $52,000 = $148,000
The long-term capital gain on the property is $148,000.
Answer:
Explanation:
For representing the budgeted documents in the correct order, the following ordering should be required which is shown below:
1. Sales budget
2. Production budget
3. Direct materials budget
4. Direct labor budget
5. Selling and administrative expense budget
6. Cash budget,
7. The budgeted income statement,
8. Budgeted balance sheet
First, the company has to decide how much sale is to be done in a particular year after that company can decide the purchase amount, after that material, labor and other selling expenses are required.
Then, the cash budget should be prepared which shows the cash inflow and cash outflow position of a business. At last, the Budgeted income statement and the Budgeted balance sheet should be prepared.
