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mezya [45]
3 years ago
13

Using the following accounts and a predetermined overhead rate of 50% of direct labor cost, determine the amount of applied over

head.
Work in Process Inventory
Beginning WIP 23,000
Direct materials 69,000
Direct labor ?
Applied overhead ?
To finished goods ?
Ending WIP 47,220
Finished Goods Inventory
Beginning FG 6,400
169,280
Ending FG
Business
1 answer:
sveta [45]3 years ago
4 0

Answer:

The amount of applied overhead is $41,500

Explanation:

Given,

Beginning WIP -$ 23,000  

Direct materials - $69,000

Ending WIP - $ 47,220

Beginning FG - $6,400

Ending FG - $169,280

By using the above information, it is easy to calculate the direct labor. Through which , the computation of applied overhead become easy.

The formula for computing direct labor is as follows:

1.50 × Direct labor + Beginning WIP + Direct materials = Ending WIP + Ending FG

1.50 × Direct labor + $ 23,000  +$69,000  = $ 47,220 + $169,280

1.50 × Direct labor + $ 92,000 = $ 216,500

1.50 × Direct labor = $ 216,500 - $ 92,000

1.50 × Direct labor  = $124,500

Direct labor = $124,500 ÷ 1.50

Direct labor = $83,000

Thus, the direct labor is $83,000

The predetermined overhead rate of 50% of direct labor cost.

So,  

Predetermined overhead rate = $83,000 × 50%

                                                  = $41,500

Thus, the amount of applied overhead is $41,500.

Note : Since ,the predetermined overhead rate of 50% of direct labor cost so we assume ( 1+0.50) 1.50 of direct labor because it is easy to calculate the predetermined overhead rate.

                   

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3 years ago
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Hunter & Sons sells a single model of meat smoker for use in the home. The smokers have the following price and cost charact
Yuri [45]

Answer:

a. 7,900

b. 10,100

Explanation:

As for the provided information,

We know at break even point taxes shall be = 0 as there are no profits and no losses.

a. At break even: = \frac{Fixed\ Cost}{Contribution}

Fixed Cost = $308,100

Contribution per unit = Selling price - Variable cost = $79 - $40 = $39

Therefore, break even units = \frac{308,100}{39} = 7,900 smokers

b. In case the company wants a profit of $51,480 after tax @ 40% then,

Earnings before taxes = \frac{51,480}{1 - 0.4} = $85,800

Therefore, number of units = \frac{Fixed\ Cost + Profit\ before\ tax}{Contribution\ per\ unit}

= \frac{308,100 + 85,800}{39} = 10,100

5 0
3 years ago
our neighbor has monthly expenses totaling $3350. His employer has indicated that the firm is expecting to announce layoffs soon
9966 [12]

Answer:

$20,100

Explanation:

You will have to multiply the monthly expenses by 6

$3,350 x 6

= $20,100

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3 0
3 years ago
Given the pay rate, hours worked, tax deductions, and social security deduction, determine the gross earnings, group health insu
user100 [1]

Answer:

Gross Income - $2570 ($21.60*119)

Group Health Insurance - $360 ($2570*0.14)

Pension Deduction- $154 ($2570*0.06)

Total Deduction- $514 ($360 + $154)

Net Pay- $2056 ($2570 - $514)

Explanation:

As the question states given the pay rate and hours worked, No Data of pay rate and hours worked is provided. Gross Earnings are $21.60 which doesn’t seem accurate when compared with Group Health Insurance and Pension figures. However let’s assume the pay rate to be $21.60 and hours worked to be 119 hours then we will have the following results:  

Gross Income - $2570 ($21.60*119)

Group Health Insurance - $360 ($2570*0.14)

Pension Deduction- $154 ($2570*0.06)

Total Deduction- $514 ($360 + $154)

Net Pay- $2056 ($2570 - $514)

I hope this is the type of answer you must be looking for!

3 0
3 years ago
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Answer:

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After tax cost = $44,684

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Tax saving = $65,000 x 35%

Tax saving = $22,750

Pv of tax saving = $22,750 x 0.893

Pv of tax saving = $20,316

7 0
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