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Elanso [62]
3 years ago
11

Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rat

e for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. ​
Overhead Total Direct Labor Hours DLH per Product
A B
Painting Dept. $250,000 10,000 16 4
Finishing Dept. 75,000 12,000 4 16
Totals $325,000 22,000 20 20 ​ ​

Required:
Calculate the plantwide factory overhead rate for Adirondack Marketing Inc.

a. $6.25 per dlh
b. $14.77 per dlh
c. $0.07 per dlh
d. $25.00 per dlh
Business
1 answer:
tamaranim1 [39]3 years ago
8 0

Answer:

Predetermined manufacturing overhead rate= $14.77 per direct labor hour

Explanation:

Giving the following information:

Estimated overhead cost for the period= $325,000

Estimated total direct labor hours for the period= 22,000

<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 325,000 / 22,000

Predetermined manufacturing overhead rate= $14.77 per direct labor hour

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The Breeze trading company discloses the following information for the month of August 2016.
s344n2d4d5 [400]

Answer:

Periodic system: FIFO ; COGS= $11400, closing inventory = $7700, gross profit=$14000. LIFO = closing stock= 6600, COGS=$12500, gross profit=12900.

perpetual system: FIFO ;COGS=11400, closing stock= $7700, gross profit= $11400. LIFO ; COGS=$12500, closing stock= $6600, gross profit = $12900

Reason for a higher gross profit in FIFO than LIFO is some of the stock ends up not being sold as they are maybe old, out-fashioned, and obviously new trend come about everyday.

Explanation:

PERIODIC    

DR  purchases account    CR

11-Aug bank 9600  inventory 16100

20-Aug bank 6500    

     

                <u>16100</u>                  <u> 16100 </u>

 FIFA cost of sales  

   

opening balance   3000

purchases     16100

closing             7700

cost of sales     <u> 11400</u>

gross profit   <u>14000</u>

sales           25400

cost of sales   11400

closing inventory           <u>7700</u>

200 units from 11 aug   1200

1000 units from 20 aug   6500

LIFO  

closing balance         <u>6600</u>

600 units from 01 aug   3000

600 units from 11 aug   3600

Cost of sales  

opening stock  3000

purchases   16100

closing stock   6600

cost of sales   <u>12500</u>

   

gross profit   <u>12900</u>

sales         25400

cost of sales   12500

perpetual inventory system    

  FIFA

cost of sales   <u>11400</u>

10-Aug   2000

15-Aug   5800

27-Aug   3600

3 0
3 years ago
A company has budgeted fixed overhead of $1.00 per hour at expected capacity of 5,000 units which has a standard quantity of 2 h
Nastasia [14]

Answer:

$1,600 Unfavorable

Explanation:

Given that,

Budgeted fixed overhead = $1.00 per hour

Expected capacity = 5,000 units

Standard quantity = 2 hours per unit

Actual units produced = 5,200

Total overhead costs = $12,000

Controllable variance:

= Actual Overhead cost - Budgeted cost of actual production

= $12,000 - (Actual units produced × Budgeted fixed overhead × Standard quantity)

= $12,000 - (5,200 × $1 × 2)

= $12,000 - $10,400

= $1,600 Unfavorable

7 0
3 years ago
The insurance claims organization that offers certification as a certified medical billing specialist is the
larisa86 [58]
Medical Association of Billers is the insurance claims organization that offers certification as a certified medical Billing specialist. It is a membership organization that provides health care billing training and education, CEUs, and the cerified Medical Billing specialist (CMBS) exam.
4 0
3 years ago
Flint Corporation issued 700 shares of no-par common stock for $7,800. Prepare Flint’s journal entry if (a) the stock has no sta
Masja [62]

Answer:Flint corporation journal $

Date

1. Bank account Dr 7800

Common stock Or. 7800

Narration. Issuance of 700 ordinary stock for $7800 .

2. Bank account Dr 7800

Common stock Cr. 1400

Share premium. 6400

Narration. Issuance of 700 ordinary at $7800 at a premium.

Explanation:

Shares can be issued at par, premium or discount. When it's issued at it's nominal value it's said to be issued at par, when it's issued above it's nominal value it's said to be issued at a premium and when it's issued below par it's said to issued at a discount.

4 0
2 years ago
Read 2 more answers
Padco averages $15 million worth of inventory in all of its worldwide locations. they operate 51 weeks a year and each week aver
Zepler [3.9K]

Padco averages $15 million worth of inventory in all of its worldwide locations. they operate 51 weeks a year and each week averages $3 million in sales (at cost). their inventory turnover is 10.2 turns.

Inventory turnover is a financial ratio that demonstrates how frequently a company sells and replaces inventory over a specific time frame. The days it takes to sell the company's inventory on hand can then be determined by multiplying the number of days in the period by the inventory turnover formula.

Businesses can improve their decisions about pricing, production, marketing, and the acquisition of new inventory by calculating inventory turnover.

Inventory turnover quantifies how frequently a business can replenish the stocks it has sold during a specific time period. A slower ratio suggests either strong sales or insufficient inventory, while a quicker ratio suggests either weak sales or high sales.

The industries with the largest inventory turnover rates tend to be those with low margins and high volumes, like supermarkets and merchants.

Learn more about inventory turnover here:

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7 0
1 year ago
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