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Tema [17]
3 years ago
6

Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead cos

ts per direct labor hour are as follows. Indirect labor $1.00 Indirect materials 0.70 Utilities 0.40 Fixed overhead costs per month are Supervision $4,200, Depreciation $1,800, and Property Taxes $600. The company believes it will normally operate in a range of 7,000–13,000 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $10,760 Supervision $4,200 Indirect materials 7,520 Depreciation 1,800 Utilities 3,950 Property taxes 600 (a) Prepare a flexible budget performance report, assuming that the company worked 11,000 direct labor hours during the month.
Business
1 answer:
Tju [1.3M]3 years ago
8 0

Answer:

\left[\begin{array}{cccc}-&Actual&Variance&Flexible Budget\\Indirect labor&10,760&240F&11,000\\Indirect Materials&7,520&180F&7,700\\Utilities&3,950&450F&4,400\\Supervision&4,200&0&4,200\\dep&1,800&0&1,800\\Prop.taxes&600&0&600\\\end{array}\right]

Explanation:

Idirect labor 1

Indirect materials 0.7

Utilities 0.4

fixed per month

supervision 4,200

Dep 1,800

property taxes 600

Units produced

We multiply the variable components rate by the units produced. Then we calcualte the variances

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Marshmellow Corporation sells a product for $140 per unit. The product's current sales are 12,500 units and its break-even sales
xeze [42]

Answer:

c. 10%

Explanation:

Margin of safety is the sales value at which the business is safe from making loss. It measures the profit after the break-even point. The sales over the break-even point is considered as the margin of safety.

Margin of safety = Actual Sales - Break-even point = 12,500 units - 11,250 units = 1250 units

Percentage of margin of safety to sales = Margin of safety / Actual sales

Percentage of margin of safety to sales = 1,250 / 12,500

Percentage of margin of safety to sales = 0.10

Percentage of margin of safety to sales = 10%

3 0
3 years ago
On June 25, Ritts Roofing extended an offer of $250,000 for land that had been priced for sale at $300,000. On July 9, Ritts acc
Kisachek [45]

Answer:

$275,000

Explanation:

The computation of the value that should the land be recorded is shown below:

= Value at which rits accepted the counteroffer of the seller

= $275,000

Hence, the alue that should the land be recorded is $275,000

Basically it records the cost value as per the cost concept

The same should be considered

3 0
2 years ago
If the rate of inflation is 2.2% per year, the future price pt (in dollars) of a certain item can be modeled by the following ex
postnew [5]

Answer:

1693.25

Explanation:

The computation of the current price of the item and the price 9 years from today is shown below:-

p(t) = 1,200 × (1.039)^t

Now, the current price can be found by putting t = 0

p(0) is

1,200\times (1.039)^0 = $1,200

The price 10 years from today

p(9) is

1,200\times (1.039)^9

Now we will solve the above equation

= 1,200 × 1.411041958

= 1693.25035

or

= 1693.25

6 0
2 years ago
On May 10, 2020, Crane Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the f
belka [17]

Answer and Explanation:

The journal entries are shown below:

1. Accounts receivable a/c Dr $1,840

            To Sales revenue a/c Cr  $1,840

(Being the sales is recorded)

2. Cost of goods sold a/c Dr $1,170

                  To Inventory a/c Cr $1,170

(Being the cost of goods sold is recorded)

3. Cash a/c Dr $1,840

          To Accounts receivable a/c Cr $1,840

(Being the payment received is recorded)

Only these three entries are recorded

3 0
3 years ago
When an interest-bearing note is dishonored at maturity and ultimate collection is expected, the entry for the dishonoring, assu
tresset_1 [31]

Answer:

The correct answer is C. a credit to Notes Receivable and Interest Revenue.

Explanation:

When this registration is made, what occurs is to decrease the obligation they have with our organization, and an increase in income due to the recognition of the interests effectively recognized at the expiration of the obligation. Dishonoring the note means recognizing that we no longer have a callable value, and that the value receivable is extinguished as a result of the end of the agreed period of permanence.

8 0
3 years ago
Read 2 more answers
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