When a price floor becomes binding because of the change in the supply of hops, the net effect will be ?

EcoFabrics has budgeted overhead costs of $1,162,350. It has allocated overhead on a plantwide basis to its two products (wool a

alina1380 [7]

Answer:

EcoFabrics

1. Overhead Rates using activity-based costing:

Cutting = $1.80 per machine hour

Design = $390 per setup

2. Allocation of overhead:

Wool Cotton

Cutting $221,400 $221,400

Design 479,700 239,850

Total allocated $701,100 $461,250

3. Overhead rate using the traditional approach:

Predetermined overhead rate = $2.10

4. Allocation of overhead:

Wool Cotton

Total allocated $581,175 $581,175

Explanation:

a) Data and Calculations:

Budgeted overhead costs = $1,162,350

Estimated direct labor hours = 553,500

Activity Cost Cost Drivers Overhead Costs Wool Cotton Total

Pools

Cutting Machine hours $442,800 123,000 123,000 246,000

Design Number of setups 719,550 1,230 615 1,845

1. Overhead Rates using activity-based costing:

Cutting = $1.80 ($442,800/246,000) per machine hour

Design = $390 ($719,550/1,845) per setup

2. Allocation of overhead:

Wool Cotton

Cutting $221,400 ($1.80 * 123,000) $221,400 ($1.80 * 123,000)

Design 479,700 ($390 * 1,230) 239,850 ($390 * 615)

Total allocated $701,100 $461,250

3. Overhead rate using the traditional approach:

Predetermined overhead rate = $2.10 ($1,162,350/553,500)

4. Allocation of overhead:

Wool Cotton

Total allocated $581,175 ($1,162,350 * 50%) $581,175 ($1,162,350 * 50%)

4 0

2 years ago

During the current month, Wacholz Company incurs the following manufacturing costs. Purchased raw materials of $18,000 on accoun

Allushta [10]

Answer:

A. Dr materials inventory $18,000

Cr Accounts payable $18,000

B. Dr Factory labor $40,000

Cr Factory wages payable $31,000

Cr Employer Payroll Taxes Payable $9,000

C. Dr Manufacturing overhead $15,300

Cr Prepaid Property Taxes $2,700

Cr Accumulated Depreciation-Buildings $9,500

Cr Utilities Payable $3,100

Explanation:

Preparation of the journal entries for each type of manufacturing cost.

A. Dr materials inventory $18,000

Cr Accounts payable $18,000

(Being the Purchased of raw materials on account)

B. Dr Factory labor $40,000

Cr Factory wages payable $31,000

Cr Employer Payroll Taxes Payable $9,000

(Being to record Incurred factory labor)

C. Dr Manufacturing overhead $15,300

($2,700+$9,500+$3,100)

Cr Prepaid Property Taxes $2,700

Cr Accumulated Depreciation-Buildings $9,500

Cr Utilities Payable $3,100

(Being to record Manufacturing overhead)

7 0

2 years ago

On April 1, 2013, Four Seasons Landscaping, LLC purchased new lawn mowers for $70,000 in cash (total cost). They have a useful l

creativ13 [48]

Answer:

Please see the calculation explanation below and the depreciation expense chart for all methods is attached.

Explanation:

1. STRAIGHT-LINE DEPRECIATION METHOD:

Depreciation Expense = (Total Cost - Residual Value) / Useful Life

Depreciation Expense = ($70,000 - $10,000) / 3 years

Depreciation Expense = $60,000 / 3 years

Depreciation Expense = $20,000 per year

2. DOUBLE DECLINING BALANCE DEPRECIATION METHOD:

Depreciation Expense Rate = (100% / Useful Life) x 2

Depreciation Expense Rate = (100% / 3) x 2

Depreciation Expense Rate = 66.67%

2013: 

Depreciation Expense = $70,000 x 66.67% = $46,667

2014: 

Depreciation Expense = ($70,000 - $46,667) x 66.67% = $15,556

Since the residual value is $10,000 and as per Double Declining Balance Method, the point at which Book Value is equal to the residual value, no depreciation is taken.

Depreciation Expense = (Total Cost - Residual Value) - (Accumulated Depreciation)

Depreciation Expense = ($70,000 - $10,000) - ($46,667)

Depreciation Expense = $13,333

2015: 

No Depreciation Expense for year 3, as Book value is already equal to residual value in year 2.

3. PER HOUR DEPRECIATION METHOD:

2013:

Depreciation Cost per hour = (Engine Hours in 2013 / Total Engine Hours) x (Total Cost - Residual Value)

Depreciation Cost per hour = (500 / 1,200) x ($70,000 - $10,000)

Depreciation Cost per hour = $25,000

2014: 

Depreciation Cost per hour = (Engine Hours in 2014 / Total Engine Hours) x (Total Cost - Residual Value)

Depreciation Cost per hour = (400 / 1,200) x ($70,000 - $10,000)

Depreciation Cost per hour = $20,000

2015: 

Depreciation Cost per hour = (Engine Hours in 2015 / Total Engine Hours) x (Total Cost - Residual Value)

Depreciation Cost per hour = (300 / 1,200) x ($70,000 - $10,000)

Depreciation Cost per hour = $15,000

6 0

2 years ago

Team building is considered part of which stage of team development

faltersainse [42]

Let's see there's forming, storming, norming and performing. I would use teambuilding during forming to limit the amount of storming in the next stage.

3 0

3 years ago

The board of directors of Capstone Inc. declared a $0.90 per share cash dividend on its $2 par common stock. On the date of decl

Bas_tet [7]

Answer:

A. Dividends 11,700 Dividends Payable 11,700

Explanation:

The journal entry to record the dividend declared is shown below:

Dividend A/c Dr $11,700

To Dividend payable $11,700

(Being the dividend is declared)

The computation is shown below:

= (Number of shares issued - treasury stock) × cash dividend per share

= (20,000 shares - 7,000 shares) × $0.90

= 13,000 shares × $0.90

= $11,700

6 0

3 years ago