1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
UNO [17]
3 years ago
8

Jmes Graham Manufacturing is a small manufacturer that uses machine-hours as its

Business
1 answer:
IgorLugansk [536]3 years ago
7 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Company - Job 62 - Job 63

Direct materials: $60,000 - $4,500 - $7,100

Direct labor: $25,000 - $2,500 - $4,200

overhead costs $72,000

Machine hours: 90,000 - 1,350 - 3,100

During 2019, the actual machine-hours totaled 95,000, and actual overhead costs were $71,000. Job 62 consisting of 1,000 units and Job 63 consisting of 2000 units were completed during the month.

A) To calculate the estimated manufacturing overhead rate we need to use the following formula:

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

Estimated manufacturing overhead rate= 72,000/90,000

Estimated manufacturing overhead rate=  0.8 per machine-hour

B) Total manufacturing cost= direct material + direct labor + allocated overhead

Job 62:

Total manufacturing cost= 4,500 + 2,500 + 0.8*1,350

Total manufacturing cost= $8,080

Job 63:

Total manufacturing cost= 7,100 + 4,200 + 0.8*3,100

Total manufacturing cost= $13,780

C) Unitary cost= total cost/ number of units

Job 62:

Unitary cost= 8,080/1,000= $8.08

Job 63:

Unitary cost= 13,780/2,000= $6.89

D) First, we need to apply overhead for the company as a whole:

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

Allocated MOH= 0.8*95,000

Allocated MOH= $76,000

Now, we can calculate the over/under applied overhead:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 71,000 - 76,000

Overapplied overhead= $5,000

E) Job 62= 14,000

Job 63= 18,000

Gross profit= sales - cost of goods sold

Job 62:

Gross profit= 14,000 - 8,080= $5,920

Job 63:

Gross profit= 18,000 - 13,780= $4,220

You might be interested in
Alex’s business is experiencing diminishing market shares and no longer needs any external finance. In fact, it is trying to buy
sdas [7]

Answer:

decline stage

Explanation:

In this stage the company has already took the benefits of issuing stocks as a way of funding. Had managed to make great investments, alliances, projects, that lead to a powerful market position. Then, having their stocks shared with lots of stakeholders is more a burden than a blessing. For this reason, they prefer to consolidate the control of the company as they don’t see valuable opportunities in the future market scenarios.

4 0
3 years ago
A groundskeeper must buy bags of fertilizer. Each bag treats $10000$ square feet of ground and costs $\$27$. The groundskeeper c
castortr0y [4]

Answer:

$162

Explanation:

As we know that

1 square feet = 0.1 square yard

which means

10,000 square feet = 0.1 × 10,000

                                = 1,000 square yards

And, the given cost is $27

So, the cost for 6,000 square yards would be

= (6,000 square yards × $27) ÷ (1,000 square yard)

= ($162,000) ÷ (1,000 square yard)

= $162

We applied the unitary method for above calculation.

5 0
3 years ago
A firm that is facing both strong cost pressures and strong pressures for local responsiveness should follow _____ strategy. Mul
dangina [55]

Answer:

a global standardization.

Explanation:

Global standardization can be defined as the ability of an organization to use standard marketing techniques across the world with respect to the cultural factors.

Also, local responsiveness can be defined as the degree of requirements and conditions to which a manufacturing firm should significantly adjust their products and methods of production in a particular country to.

A firm that is facing both strong cost pressures and strong pressures for local responsiveness should follow a global standardization strategy.

Hence, when a firm follows the global standardization strategy, the quality of its goods and services is able to meet the needs of customers (people) all over the world because of the streamlining of its production processes, products design, and simplified supply chain management.

5 0
3 years ago
The Baldwin Company currently has the following balances on their balance sheet: Total Assets $260,881 Total Liabilities $150,67
bonufazy [111]

Answer:

common stock = $80,308

Explanation:

assets = liabilities + equity

current balance:

$260,881 = $150,673 + $110,208

$110,208 = common stock + retained earnings = $57,508 + $52,700

next year:

net income = $44,200

dividends = $12,000

assets = $260,881 + $55,000 = $315,881

liabilities = $150,673

equity = $315,881 - $150,673 = $165,208

retained earnings = $52,700 + $44,200 - $12,000 = $84,900

common stock = $165,208 - $84,900 = $80,308

7 0
3 years ago
Malinda's auto dealership of imported cars made $895,000 in revenue. The manager has determined that the total expenses equal to
Sauron [17]

Answer:

Profit : $297,000

Explanation:

Revenue is the earnings generated by a business by selling products and services. Expenses are the cost incurred in the process of generating revenue for the business.

A business will make profits if revenue exceeds expenses.

In this case, the revenue ($895,000) exceeds expenses($598,000). Therefore, the business will make a profit.

The profit will be revenue minus expenses

=$895,000 -$598,000

=$297,000

5 0
2 years ago
Other questions:
  • The lowest school dropout rate in the united states in 2008 occurred for:
    14·1 answer
  • Puckett products is planning for $5 million in capital expenditures next year. puckett’s target capital structure consists of 60
    12·1 answer
  • Duval Inc. uses only equity capital, and it has two equally-sized divisions. Division A's cost of capital is 10.0%, Division B's
    8·1 answer
  • Prepare a bank reconciliation for Show Me, Inc., as of June 30 from the following information:
    11·1 answer
  • Richard has $500.00 to invest, but he is willing to borrow money to increase the size of his investment. How much should Richard
    8·1 answer
  • Quality control is best defined as:
    5·1 answer
  • ___________ states that if there is no specific employment contract saying otherwise, the employer or employee may end an employ
    12·1 answer
  • Assume that a hypothetical economy with an MPC of 0.75 is experiencing severe recession. Instructions: In part a, round your ans
    5·1 answer
  • Which trends are reshaping
    7·1 answer
  • When a country imposes tariffs, it is likely to cause
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!