Answer:
Gross profit = $790000
Explanation:
Suppose:
Sales = 1000000
Cost of goods sold = 200000
Actual overhead = 100000
Direct labor used = 15000 hours
Predetermined rate = $ 6 per hour
Computation of gross profit:
Sales = 1000000
less:<u> Cost of goods sold</u> =200000
Add: under applied overhead (w#1) = <u>10000</u>
(<u>210000</u>)
Gross profit 790000
(w#1) Applied overhead = Actual labour hours * predetermined rate
= 15000 * 6 = $90000.
Actual overhead = <u>100000</u>
Under applied overhead 10000
Answer:
Product cost= $1248
Period Cost= $312
Explanation:
Giving the following information:
The insurance coverage premium for the three years is $4,680.
Eighty percent of the premium applies to manufacturing operations and twenty percent applies to selling and administrative activities.
Total period:
Product cost= 0.80*4680= $3744
Period Cost= 0.20*4680= $936
For the first year:
Product cost= $3744/3= $1248
Period Cost= $936/3= $312
Answer:
Explanation:
Tax is a compulsory contribution levied by the government on income earners and the profits of those in business in order to raise funds for public expenditures. It comes in various forms as listed.
Federal income tax : Collected from citizens who pay up to 39.6% of their earnings
Medicare Tax: Used to support health care costs for retiree
State income tax : Collected from citizens in most state
Social security tax: Used to financially support retired people and people with disabilities
Local income tax: Collected by towns and cities to fund city program
Answer:
$14,160 F
Explanation:
The computation of the labor efficiency variance is shown below:
As we know that
Labor Efficiency Variance = (Standard Hours - Actual Hours) × Standard Rate
where,
Standard hours is
= 3,400 units × 0.5 hours
= 1,700 hours
And, the actual hours is 520 hours
And, the standard rate is $12
So, the labor efficiency variance is
= (1,700 hours - 520 hours) × $12
= $14,160 favorable
Since standard hours is more than the actual hours so it would lead to favorable variance
