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denis23 [38]
3 years ago
13

Darrow Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last

year, the Corporation worked 10,000 direct labor-hours and incurred $80,000 of actual manufacturing overhead cost.
a. If overhead was underapplied by $2,000, the predetermined overhead rate for the Corporation for the year must have been _______.
Business
1 answer:
crimeas [40]3 years ago
4 0

Answer:

$7.8 per direct labor hour      

Explanation:

The formula to compute the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

where,

Total estimated manufacturing overhead = Actual manufacturing overhead - under applied overhead

= $80,000 - $2,000

= $78,000

And, the estimated direct labor hours is 10,000

So, the predetermined overhead rate is

= $78,000 ÷ 10,000

= $7.8 per direct labor hour              

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Option B (Wheel) is the right answer.

Explanation:

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7 0
3 years ago
On april 1, griffith publishing company received $1,548 from santa fe, inc. for 36-month subscriptions to several different maga
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Given:
April 1 - <span>Griffith publishing company received $1,548 from Santa Fe, inc. for 36-month subscriptions.
</span><span>
1,548 / 36 months = 43 per month.

Assuming that the amount is paid in cash.
       
                               Debit                  Credit
April 1:                       
Cash                     1,548
     Unearned Revenue                     1,548

April 30:
Unearned Revenue   43
      Revenue Fees                                 43

May 31:
Unearned Revenue    43
      Revenue Fees                                 43

June 30:
Unearned Revenue    43                
      Revenue Fees                                 43

</span>July 31
Unearned Revenue   43
      Revenue Fees                                 43

August 31:
Unearned Revenue    43
      Revenue Fees                                 43

September 30:
Unearned Revenue    43                
      Revenue Fees                                 4<span>3
</span>
October 31:
Unearned Revenue   43
      Revenue Fees                                 43

November 30:
Unearned Revenue    43
      Revenue Fees                                 43

December 31:
Unearned Revenue    43                
      Revenue Fees                                 4<span>3
</span>
Book Value of Unearned Revenue is: 1,548 - (43*9) = 1,548 - 387 = 1,161

Since it is a monthly subscription, the unearned revenue must always have an adjusting entry at the end of the month because Griffith company has already earned some of the prepaid fees. 
3 0
3 years ago
Zhao Co. has fixed costs of $429,000. Its single product sells for $187 per unit, and variable costs are $122 per unit. If the c
otez555 [7]

Answer:

$635,000 and : 34%

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Margins of safety is the difference between expected sales and the break-even point.

For Zhao, expected sales are 10,000 units

The break-even points in units = fixed cost/ contribution margin per unit

fixed costs = $429,000

Contribution margin per unit = selling price - variable costs per unit

=$187 -  $122

=$65

break-even point in units = $429,000/$65

break-even point = 6600 units

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=3400/10000 x 100

=0.34 x 10,000

=34%

4 0
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