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3 years ago

If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:

Business

1 answer:

serious [3.7K]3 years ago

5 0

Answer:

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

Explanation:

If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:

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

For example:

Total estimated overhead= $150,000

Allocation base= direct labor hours

Estimated Total number of direct labor hours= 10,000

Predetermined manufacturing overhead rate= 150,000/10,000

Predetermined manufacturing overhead rate= $15 per direct labor hour

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The most recent data from the annual balance sheets of Free Spirit Industries Corporation and LeBron Sports Equipment Corporatio

shutvik [7]

Answer:

Free Spirit Industries Corporation and LeBron Sports Equipment Corporation

1a. Free Spirit Industries Corporation’s current ratio is , and its quick ratio is 1.3337 : 1 and 0.7469 : 1 respectively.

1b. LeBron Sports Equipment Corporation’s current ratio is , and its quick ratio is 1.6596 : 1 and 0.9294 : 1 respectively.

2. True: Free Spirit Industries Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than LeBron Sports Equipment Corporation.

3. True: A current ratio of 1 indicates that the book value of the company’s current assets is equal to the book value of its current liabilities.

4. True: An increase in the current ratio over time always means that the company’s liquidity position is improving.

Explanation:

a) Data:

Balance Sheet December 31st (Millions of dollars)

LeBron Sports Equipment Corporation Free Spirit Industries Corporation

LeBron Free Spirit LeBron Free Spirit

Assets Liabilities

Current assets Current liabilities

Cash $1,435 $922 Accounts payable $0 $0

Accounts receivable 525 338 Accruals 316 0

Inventories 1,540 990 Notes payable 1,793 1,687

Total current assets $3,500 $2,250 Total current liabilities $2,109$1,687

Net fixed assets Long-term bond 2,578 2,063

Net plant & equipment 2,750 2,750 Total debt $4,687 $3,750

Common equity

Common stock $1,016 $813

Retained earnings 547 437

Total common equity $1,563 $1,250

Total assets $6,250 $5,000 Total liabilities and equity$6,250 $5,000

b) Current Ratio and Quick Ratio:

Current Ratio = Current Assets/Current Liabilities

Quick Ratio = (Current Assets - Inventory)/Current Liabilities

1a. Free Spirit Industries Corporation’s current ratio is , and its quick ratio is

Current Ratio = $2,250 / $1,687 = 1.3337 : 1

Quick Ratio = ($2,250 - 990) / $1,687 = 0.7469 : 1

1b. LeBron Sports Equipment Corporation’s current ratio is , and its quick ratio is:

Current Ratio = $3,500 / $2,109 = 1.6596 : 1

Quick Ratio = $3,500 -1,540 / $2,109 = 0.9294 : 1

5 0

3 years ago

Bellue Incorporated manufactures a single product. Variable costing net operating income was $92,400 last year and its inventory

s2008m [1.1K]

Answer:

6,000

Explanation:

Bellue incorporated manufactures a single product

The variable costing net operating income is $92,400

The inventory is 3100 units

The fixed manufacturing overhead cost is $1

Therefore the absorption cost can be calculated as follows

= 9200-1 x3200

= 9200- 3200

= 6000

Hence the absorption cos is $6,000

7 0

3 years ago

when compared to the country of origin principle, the country of reception approach to jurisdiction over internet transactions

Oxana [17]

When compared to the country of origin principle, the country of reception approach to jurisdiction over internet transactions requires business managers to have more knowledge of the laws of other countries.

<h3>What is the significance of country of origin principle?</h3>

The country of origin principle is an important feature of leading parts of Union law. It is also known as home country control, country of origin rule, and country of origin principle.

The country of origin principle mainly aims to ensure the effective protection of the public interest in the country of origin.

Basically, the country of origin principle has the main purpose to vest exclusive jurisdiction to regulate in one Member State only.

Learn more about the country of origin principle here:-

brainly.com/question/16529312

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8 0

2 years ago

When changing from the average cost method to FIFO, the company:

Lesechka [4]

Answer: B. Revises comparative financial statements.

Explanation:

When switching from a median Cost method to FIFO method. this sort of switch can always yield a major impact on all financial statements. Any organization which wishes to change would settle on the requirement to scrutinize whether it has to restate its financial data for previous years to reflect the new method or only apply the new method to the present and future years.

7 0

3 years ago

Producer surplus in a perfectly competitive industry is the same thing as revenue. the difference between profit at the profit-m

Damm [24]

Answer:

the difference between revenue and variable cost

Explanation:

As we know that

Producer surplus is = Total Revenue - Total Variable Cost

So here we can see that the producer surplus would be the difference between the revenue & the variable cost in the industry i.e. perfectly competitive

Hence, the second last option is correct

And, the other options are wrong

6 0

3 years ago