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OlgaM077 [116]
3 years ago
14

Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-h

ours. The company based Its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours. The amount of overhead applied to Job M800 is closest to: (Round your intermediate calculations to 2 decimal places.) a. $270b. $825c. $1.380d. $555
Business
1 answer:
lisov135 [29]3 years ago
4 0

Answer:

b. $825

Explanation:

Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours

Then fixed operating overhead = total fixed manufacturing overhead cost divided by  direct labor-hours

= $90,000/50,000 = $1.8 per labor

The company recently completed Job M800 which required 150 direct labor-hours.

Total overhead = fixed cost + variable cost = ($1.8 + $3.7) * 150 = $825

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vladimir1956 [14]

Answer:

The options for this question are the following:

a. Star

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c. Question Mark

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e. None of these

The correct answer is b. Cash Cow .

Explanation:

The cash cow is a metaphor for a cash cow that produces milk throughout its life and requires little maintenance. A cash cow is an example of a cash cow, since after the initial capital outlay has been paid, the cow continues to produce milk for many years. These cash generators can also use their money to repurchase shares in the market or pay dividends to shareholders.

A cash cow is a company or business unit in a mature, slow-growing industry. Milk cows have a large market share and require little investment. For example, Apple (NASDAQ: AAPL) is considered a cash cow because it has established a well-defined niche in wireless gadgets. The different Apple product lines generate cash for other business lines at the beginning of their life cycle. On the contrary, a star is a company or business unit that operates in a high-growth industry. Question marks are the problematic son of the BCG shared growth matrix. They operate in high-growth markets and require capital to grow, but the probability of success is unknown. Dogs do not require much cash, but due to age, they tend to absorb large portions of capital.

6 0
3 years ago
what is the accounting measurement of an insurance company's future obligations to its policy owners?
zvonat [6]

Answer:

provisions / accruals

Explanation:

see above in the answer, both mean basically the same but in insurance terms accrual is more correct

8 0
3 years ago
What are the criteria for distinguishing between a deductible expense and a capital expenditure?
Lelu [443]

The criteria for distinguishing between whether an expenditure is a capital item or a deductible expense is the useful life of the item.

If the purchase is going to be used and no longer have value at the end of the reporting period it is an expense for that period. If the item is a capital item it is going to have a longer useful life. In this case the item is depreciated over its useful life, assigning an expense amount to each accounting period that the item has value.

6 0
3 years ago
A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of i
Pavlova-9 [17]

Answer:

true

Explanation:

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If interest rate is higher in a country compared to other countries, investors would be interested in investing in that country because they would earn a higher return for their investment.

As a result of the higher flow of funds into the economy with the higher interest rate, the demand for the country's currency increases. If the demand increases relative to supply, the value of that currency relative to other currencies increases and its exchange rate increases. this is what is referred to as currency appreciation

6 0
3 years ago
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lakkis [162]

Answer:

Explanation:

The journal entry is shown below:

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The other information which is given is not considered. Thus, ignored it

6 0
3 years ago
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