Answer:
a. $ 900 underapplied
Explanation:
Based on the data provided we conclude that the factory overhead is applied on the basis of direct labour hours.
Determination of Overhead rate
Estimated overhead $ 115,000
Direct labour hours 23,000 hours
Overhead rate per direct labor hour is $ 115,000/ 23,000 = $ 5 per direct labor hour
Amount of applied overhead = Direct Labor hours * Overhead rate per hour
Applied Overhead = $ 5 * 35,000 $ 175,000
Actual Overhead <u>$ 175,900</u>
Underapplied Overhead $( 900)
Answer:
B. medium of exchange.
Explanation:
Money as a medium of exchange is used to facilitate the selling and purchasing of goods and services between parties. Money is widely accepted as a standard of value by parties engaged in the exchange of commodities. It means that one party readily accepts an amount of money in exchange for a product or service that is believed to be worth the amount on offer.
Tara is exchanging her $50,000 for the house. Although the money is only a down-payment, it gives her the right to claim ownership of the house. Once she has fully paid for the house using money, she can only lay a claim on the house, not the money.
Answer:
$110,000
Explanation:
Calculation for What is the machine's original cost basis that the firm records on the balance sheet
Machine's Original cost basis
Machine Cost $100,000
Add Sales Tax $7,000
Add Shipping Cost $3,000
Machine's Original cost basis $110,000
($100,000+$7,000+$3,000)
Therefore the machine's original cost basis that the firm records on the balance sheet will be $110,000
Answer:
A. Differentiation strategies
Explanation:
- Different strategies seek to create greater value for their customers by creating goods and services that offer unique features that make them competitors. This is done by trying to keep the same or similar (perhaps slightly more expensive) price level as the competition.
- In this case Beach Grub offers a variety of services, keeping its prices higher than competing but not more than luxury restaurants.
Answer: If the material is reworked and sold, Hodge Inc. has a financial disadvantage of (- 4500).
Let's see why:
1) If we sell the material at its disposal value: We have a cost of $ 74600 and the income from sale would be $ 57400 =
57400 - 74600 = (-17200). We have a loss of $17200.
2) If we rework the material we will have an original cost of $ 74600, an additional cost for reworking of $ 1500 and the income from its sale would be $ 54400 =
54400 - (74600 + 1500) = (-21700) We have a loss of $ 21700.
Then comparing the 2 situations =
(-21700) - (-17200) = -4500. There is a financial disadvantage of $4,500 if the material is reworked instead of selling it as scrap.
