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sertanlavr [38]
3 years ago
14

Luthan Company uses a plantwide predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based o

n a cost formula that estimated $257,400 of total manufacturing overhead cost for an estimated activity level of 11,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $249,000 and 10,800 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
Business
1 answer:
LiRa [457]3 years ago
4 0

Answer:

$252,720

Explanation:

As for the provided details:

Predetermined overhead rate is based on 11,000 direct labor hours.

The rate identified as $23.40

Since the actual activity is less than the standard labor hours, that is actual labor hours = 10,800

Thus, actual overheads to be applied based on predetermined rate shall be = Rate determined \times actual hours

= $23.40 \times 10,800 = $252,720

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Stipulation.

Explanation:

In this scenario, Rex Garner recently made an offer to Harry Barns for the sale of his shop using a registered letter. The offer says that Harry "may accept by registered letter." This detail is an example of a stipulation.

A stipulation in business can be defined as a formal legal acknowledgment and agreement made between two or more groups of people (parties) before entering into a contract or business deal.

This ultimately implies that, a stipulation is a condition or clause used to convey agreement in a contract between two or more groups of people. The statement "may accept by registered letter." in the offer made by Rex Garner to Harry is a stipulation, conveying the message that Harry can only show agreement by using a registered letter as well.

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3 years ago
If a company uses $1,600 of its cash to purchase supplies, the effect on the accounting equation would be:_________
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If a company uses $1,600 of its cash to purchase supplies, the effect on the accounting equation would be one asset increases $1,600 and another asset decreases $1,600, causing no effect.

<h3>What is an accounting equation?</h3>

The relationship between a person's or company's assets, liabilities, and owner's equity are represented by the basic accounting equation, often known as the balance sheet equation. It serves as the system's cornerstone. The sum of the debits and credits for each transaction is equal.

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2 years ago
Hank brings several thousand dollars in cash to a small bank and exchanges it for cashier's checks. If this transaction is part
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Placement

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Hank's action of exchanging the stolen money for cashier's check is a typical example.

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3 years ago
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