Companies often do work on a cost-reimbursement basis. That is, Company B reimburses Company A for the cost of doing work for Company B. Suppose your company has a contract that calls for reimbursement of direct materials and direct labor, but not overhead. Following are costs that various organizations incur; they fall into three categories: direct materials (DM), direct labor (DL), or overhead (OH). Classify each of these items as direct materials, direct labor, or overhead.
Answer:
Predetermined manufacturing overhead rate= $29.59 per direct labor hour
Explanation:
Giving the following information:
Total direct labor-hours 15,755
Total overhead:
Labor-related DLHs= $172,482
Product testing tests= $68,909
General factory MHs= $224,825
Total= $466,216
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 466,216/15,755
Predetermined manufacturing overhead rate= $29.59 per direct labor hour
Answer: Description, Date, and Amount.
Answer:
$27,250
Explanation:
The computation of incremental income or loss on reworking the units is shown below:-
For computing the incremental income or loss on reworking the units first we need to follow some steps which is shown below:-
Incremental revenue per unit = Selling price after rework - Selling price as scrap
= $22.00 - $5.60
= $16.40
Total Incremental Revenue = Incremental revenue per unit × Total defective units
= $16.40 × 2,500
= $41,000
Total rework costs = Total defective units × Defects per unit
= 2,500 × $5.50
= $13,750
Now,
Incremental income or loss on reworking the units = Total Incremental Revenue - Total rework costs
= $41,000 - $13,750
= $27,250
Individual proprietors report their business income and deductions on
Form 1120S.
What is Form 1120S?
Form 1120S is an IRS form used by businesses organized as S corporations to report their income, gains, losses, deductions, and credits to the Internal Revenue Service (IRS). It is a variant of the Form 1120 and is used in place of this form by businesses that have elected to be taxed as an S corporation.
What do you mean by Proprietors?
Individual proprietors are sole proprietors who own and operate a business. They are the sole owners of the business and do not have to answer to any other shareholders or partners. They have complete control over the business and its operations, as well as the profits and losses.
Hence, the correct option is Option D.
To know more about Individual proprietors,
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