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borishaifa [10]
3 years ago
12

Lund Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any under o

r overapplied overhead is closed out to Cost of Goods Sold at the end of the calendar year. During March, the following transactions were recorded by the company: raw materials purchased during the moth - $27,00; raw materials used in production - $28,000; direct labor hours work during month - 2,500; direct labor cost incurred - $20,000; indirect labor cost incurred - $5,500; manufacturing overhead costs incurred - $17,000; raw material inventory, March 31 - $7,500; work in process inventory, March 1 - $10,500; work in process inventory, March 31 - $14,000 (contains $5,000 of direct labor cost).The amount of direct materials cost in the March 31 Work in Process inventory account was;A) $5,250.B) $3,500.C) $9,000.D) $8,750.
Business
1 answer:
BartSMP [9]3 years ago
3 0

Answer:

A. $5,250

Explanation:

As for the provided details we have,

The total cost of work in process on 31 March = $14,000

In this amount included as cost of direct labor = $5,000

This means the remaining amount $14,000 - $5,000 = 9,000 relates to cost of direct material and cost of manufacturing overheads.

Also provided that manufacturing overheads are applied using the predetermined rate of 75% of direct labor.

Thus, amount charged to work in process inventory for manufacturing overheads shall be $5,000 direct labor cost \times 75% = $3,750

Thus, direct material cost in work in process = $14,000 - $5,000 - $3,750 = $5,250

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Answer:

Deluxe= $4.25 per book

Moderate= $4.25 per book

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Explanation:

Giving the following information:

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Machine maintenance ($330,000) machine hours 250 750 1,000

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First, we need to calculate the total overhead cost:

Total overhead= 330,000 + 630,000 + 166,000 + 574,000= 1,700,000

Now, we can calculate the estimated manufacturing overhead rate to allocate overhead to each book type.

The allocation base is machine-hours.

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

Estimated manufacturing overhead rate= 1,700,000/ 2,000= $850 per machine hour.

Now, we can allocate overhead to each book:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Deluxe= $850*250hours= $212,500

Moderate= $850*750hours= $637,500

Economy= $850*1,000= $850,000

Based on the number of units, we can calculate the unitary overhead:

Deluxe= $212,500/50,000= $4.25 per book

Moderate= $637,500/150,000= $4.25 per book

Economy= $850,000/200,000= $4.25 per book

4 0
3 years ago
An investor purchases a 12-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of in
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Answer:

Value of the bond = $862.013

Explanation:

The value of the bond is the present value of the future cash receipts expected from the bond. The value is equal to present values of interest payment and the redemption value (RV).

Value of Bond = PV of interest + PV of RV

The value of the bond can be worked out as follows:

Step 1

<em>Calculate the PV of Interest payment </em>

Present value of the interest payment

PV = Interest payment × (1- (1+r)^(-n))/r

Interest payment = $40

PV = 40 × (1 - (1.05)^(-12×2)/0.05)

= 40 × 13.7986

= 551.945

Step 2

<em>PV of redemption Value </em>

PV of RV = RV × (1+r)^(-n)

= 1000 × (1.05)^(-12×2)

= 310.067

Step 3

<em>Calculate Value of the bond  </em>

= 551.94567 + 310.067

=862.01

Value of the bond = $862.013

 

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Tangible assets as well as intangible assets of a business need to be assessed for proper venture evaluation.
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I think it's a. True




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Chris and Jordan are a two-person household. Chris's market hourly wage is $40, but Chris can also produce $20 of household prod
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A. Jordan specializes in household production, while Chris specializes in marketplace work.

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