Answer:
(A) estimated annual costs and expected annual activity
Explanation:
The formula to compute the predetermined overhead rate is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours or estimated machine hours)
It is always calculated on the estimated amount and estimated annual activity i.e direct labor hours or machine hours
So the correct option is a.
The answer & explanation for this question is given in the attachment below.
Answer:
Increases; Rise
Explanation:
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement increases the demand of reserves and causes the federal funds interest rate to rise, everything else held constant.
Answer:
a.$16,370.
Explanation:
beginning WIP cost: 11,100
cost added during the period
materials 77,100
direct labor 25,100
overhead 70% of DL = 17,570
total added 119,770
Total cost to be accounted for: 130,870
Cost assignned to
transferred out 114,500
ending WIP 16.370
Total cost assigned to 130,870
As the cost to be accounted and the cost assigned to should match we contruct that and solve for the ending WIP
Answer:
Butcher's warranty expense for Year 4 is $10,000
Explanation:
Since in the question, it is given that 5% of the toys are returned, and the warranty expenses should be charged on the replacement service or repair service. Even, the question has said the same.
So, the warranty expense computation is shown below:
= Sale units of toys × selling price per toy × returned percentage
= 10,000 toys × $20 × 5%
= $10,000
The warranty obligation part is irrelevant. Thus, we don't consider in the computation part. Therefore, it is ignored.
Hence, Butcher's warranty expense for Year 4 is $10,000
