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4 years ago

A radial tire manufacturer produces products in two departmentslong dashdivisions a and

Business

1 answer:

lozanna [386]4 years ago

4 0

Let’s say that,

Manufacturing Overhead Cost = MOC

A= Division A

B = Division B

Working Time = T (either machine hours or labor hours)

The given variables are:

MOC (A) = $160,000

MOC (B) = $360,000

T (A) = 30,000 machine hours

T (B) = 21,000 labor hours

We are asked to find for the predetermined Overhead Allocation Rates. This is calculated using the formula:

Overhead Allocation Rates = MOC / T

Overhead Allocation Rate (A) = $160,000 / 30,000 machine hours

Overhead Allocation Rate (A) = $5.33 per machine hour

Overhead Allocation Rate (B) = $360,000 / 21,000 labor hours

Overhead Allocation Rate (B) = $17.14 per labor hour

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Why is the cost of goods sold account part of a trading business only?

Lisa [10]

Answer:

Yes costs of goods sold is peculiar to those businesses dealing in tangible items

Explanation:

For a service company there is no costs of goods sold because no goods were purchased for resale.The major costs found in the cost structure of a service outfit is manpower costs,since people with requisite knowledge form the main reason for business existence

5 0

4 years ago

The net income that firm earns can either be paid out to shareholders asas ____ or or can be reinvested in the company as ____ .

kow [346]

Answer:

B. Dividend; retained earnings

Explanation:

The payment made by a firm to its shareholders as a distribution of profits is called dividend. If a company makes profit then it reinvests the profits and pays a proportion of the profit as divided to its shareholders.

It can be in cash or in forms of further shares. While retained earnings are the earning that a company has earned after paying dividends and other distribution to the investors. It is reinvested every time there is an entry in the accounting records.

6 0

3 years ago

In July 2007 The Wall Street Journal (WSJ) reported that a growing shortage of skilled labor in Eastern European countries such

andrey2020 [161]

Answer:

D) rise in Western European countries and fall in Eastern European countries until the wage rates become more equal.

Explanation:

Two important factors must be considered:

wages in western European nations are still much higher than those in eastern European nations
workers that come from member countries of the European Union may travel freely and work in any country that they can and that belongs to the European Union.

As long as the wages in western European countries continue to be higher and European workers can establish themselves in those counties, the supply of workers will continue to flow from poorer eastern European countries to richer western European countries.

rise in Western European countries and fall in Eastern European countries until the wage rates become more equal.

4 0

3 years ago

Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of busines

goblinko [34]

Answer:

ADJUSTED BOOK BALANCE

Bank balance $59,549 Book balance $61,709

+ Deposit in transit $4,250 Interest earned $33

- Outstanding checks $2,075 Bank service fees $18

Adjusted book $61,724 $61,724

balance

8 0

3 years ago

You need a 30-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 7.1 perc

miskamm [114]

Answer:

$573,963

Explanation:

First, calculate the present value of the loan payments using the following formula

PVA = PMT x [ ( 1 + r )^n - 1 ] / [ r ( 1 + r )^n)

PVA = $950 x [ ( 1 + 7.1%/12 )^360 - 1] / [ 7.1%/12 ( 1 + 7.1%/12 )^360)

PVA = $141,362.32

Now calculate the difference of Value of loan and the present value of loan payment

Difference = Loan value - PV of loan payment = $210,000 - $141,362.32 = $68,637.68

This te Ballon payment in present value term, We need to determine the value at the end of the loan term.

Hence we need to calculate the future value of this payment as follow

Future value = Present vale x ( 1 + Monthly Interest rate )^numbers of months

Future value = $68,637.68 x ( 1 + 7.1%/12 )^360

Future value = $573,963.09

Future value = $573,963

Hence the ballon Payment will be $573,963

7 0

3 years ago