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NISA [10]
3 years ago
11

Kearney Inc. has a factory with the following characteristics: direct labor of $82056, direct materials of $52432 fixed overhead

of $156141, variable overhead of $146362, 11453 units produced, and 408 shipments made. One of its products is LQ6. LQ6 used 162 hours of labor. The factory made 1272 units of LQ6 at a materials cost of $3.36 per unit. LQ6 also requires 56 shipments. All of the factory's labor costs $27 per hour. Kearney's cost allocation system uses two cost pools. Pool A includes all variable overhead and uses direct labor as the allocation base. Pool B includes all fixed overhead and uses direct materials as the allocation base. How much cost from Pool A is allocated to LQ6? (round to whole number of $)
Business
1 answer:
frutty [35]3 years ago
4 0

Answer:

The amount of cost from Pool A that is allocated to LQ6 is $7,802.

Explanation:

Since Pool A includes all variable overhead and uses direct labor as the allocation base, we can obtain the following from the question:

Direct labor = $82,056

Variable overhead = $146,362

Number of labor hours used by LQ6 = 162

Factory's labor costs per hour = $27

Therefore, we have:

Factory's labor cost of LQ6 = Number of labor hours used by LQ6 * Factory's labor costs per hour = 162 * $27 = $4,374

Variable over allocated to LQ6 from Pool A = (Factory's labor cost of LQ6 / Direct labor) * Variable overhead = ($4,374 / $82,056) * $146,362 = $7,801.83518572682

Rounding to whole number of $ as required, we have:

Variable over allocated to LQ6 from Pool A = $7,802

Therefore, the amount of cost from Pool A that is allocated to LQ6 is $7,802.

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Coffman Company sold bonds with a face value of $1,080,000 for $1,020,000. The bonds have a coupon rate of 9 percent, mature in
Neko [114]

Answer:

Coffman Company

Journal Entries:

January 1 - Sale of Bonds

Debit Cash Account with $1,020,000

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To record the sale of 9% bonds at a discount.

June 30:

Debit Interest on Bonds with $48,600

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To record payment of interest on June 30.

Explanation:

1. Bonds as a financing source can be issued at par value, premium, or discount.  It is issued at a discount when the interest rate is less than the market rate.  The purpose of issuing them at a discount is to attract investors to purchase the bonds, which will be repaid at the par value.

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3 0
3 years ago
Which results is a positive aspect of globalization
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4 0
3 years ago
Read 2 more answers
Your firm is selling a 3-year old machine that has a 5-year class life. The machine originally cost $580,000 and required an inv
djyliett [7]

Answer:

$ + 195593.6

Explanation:

First lets calculate the After depreciation net book value of the machine by computing depreciation as per MACRS 5-year class

Year 1 % Dep = 20%

Year 2 % Dep = 32%

Year 3 % Dep = 19.20%

So NBV of machine after 3 years

= 580,000 - (580000*0.20)-(580000*0.32)-(580000*0.1920)

=$167,040

We calculate the net taxable value of the gain as

=180,000 - 167040 = $12,960

Tax = 12960*0.34 = $4406.4

Thus the net cash flow proceeds from the sale of machine are as follows,

NCF = 180,000 - 4406.4 + 20,000 = $195593.6

where $20,000 is the freed working capital.

Hope that helps.

5 0
3 years ago
Please answer it fast its urgent and i want a long answer
mixer [17]

Answer:

Partnership

A partnership is a straightforward business organization type to create. It requires an agreement that may be verbal or written.

In a partnership, the owners manage and control the business, and all revenue from it flows directly through the business to the partners, who are then taxed based on their portions of the income.

1



The partners are personally liable for all debts and any liabilities that result from the operation of the business.

2



The sole proprietorship and the partnership are the most straightforward business organization types.

When one partner leaves the business, it is dissolved unless there is an agreement in place that allows it to continue.

2

A business continuation agreement typically stipulates the terms under which a partner can transfer a share of the business for some financial consideration.

The same agreement should provide for the transfer of a deceased partner's share so that the surviving family members receive fair compensation from the remaining partners.

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Limited Liability Company (LLC)

The creation of a limited liability company (LLC) requires an operating agreement and a state filing of articles of organization.

3



Like the principals in a partnership, the owners of an LLC have direct management control over the company, and the company is required to file an information return to the IRS. The owners file their own individual returns based on the revenue that flows to them directly through the business. The information return shows how much revenue was paid to each partner.

3



The primary difference between a partnership and an LLC is that the latter is designed to separate the business assets of the company from the personal assets of the owners. That insulates the owners from personal responsibility for the debts and liabilities of the company.

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In terms of the sale or transfer of the business, a business continuation agreement is needed to ensure the smooth transfer of interests when one of the owners leaves or dies.

C Corporation and S Corporation

There are two types of corporation, the S corporation and the C corporation. Both are legal entities that are formalized with the filing of articles of incorporation with the state.

The primary difference between the two is in their tax structures:

The C corporation is a tax entity in and of itself, so it files a tax return and is taxed based on the revenues of the business. Double taxation could occur when the shareholders or owners file individual returns based on any income they receive in the form of dividends from the corporation.

4



An S corporation is similar to a partnership and LLC in that it files an informational return. However, the revenue flows directly to the shareholder owners, who then file individual returns.

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In most other aspects, the two business structures are the same. In both cases, the business is controlled by a board of directors which is answerable to the shareholders. The board hires the senior management team. Business assets and liabilities belong to the company, and the sale or transfer of interests can be achieved by the sale of shares.

Ultimately the type of business organization selected comes down to the owners' level of concern over management control, liability exposure, tax issues, and business transfer issues.

Because of the tax and legal implications involved, the guidance of a qualified tax attorney is essential in selecting the most suitable form of ownership.

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