Ask question

Ask question

All categories

2 years ago

9

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct

labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)

1 answer:

Brrunno [24]2 years ago

6 0

Answer:

Underapplied overhead= $1,640

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

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

Predetermined manufacturing overhead rate= 497,040 / 21,800

Predetermined manufacturing overhead rate= $22.8 per direct labor hour

<u>Now, we can allocate overhead:</u>

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

Allocated MOH= 22.8*21,500

Allocated MOH= $490,200

<u>Finally, the over/under allocation:</u>

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 492,040 - 490,200

Underapplied overhead= $1,640

You might be interested in

Unemployment that occurs when worker's skills do not match the jobs that are available.

liberstina [14]

Answer:

b. structural unemployment

5 0

2 years ago

Clients are increasingly asking advertisers for ______, agreements on campaign-specific outcomes and consensus on how the effect

Minchanka [31]

Answer:

accountability metrics

Explanation:

Accountability metrics are used by companies to measure the specific financial results of marketing campaigns. Marketing campaigns are expensive and require a lot of resources, both financial and labor resources, and as competition between producers increases, so does competition among marketing firms. The best way a marketing firm can increase its clients is by showing that their campaigns are effective, so every dollar invested by their clients will generate positive returns.

6 0

3 years ago

When __________ funds are set aside (idling the excess) and government does not spend the money nor apply it to past debt, this

finlep [7]

When surplus <span>funds are set aside (idling the excess) and the government does not spend the money nor apply it to past debt, this action does not cause expansion or contraction.
That statement is true. Expansion or contraction happens when the amount of Government budget is accumulated or decreased as the result of last year's operations</span>

7 0

3 years ago

The type of financial aid which provides money for a job on campus is called

olasank [31]

Awnser would be D for plato

4 0

3 years ago

Let S represent the amount of steel produced (in tons). Steel production is related to the amount of labor used (L) and the amou

Phantasy [73]

Solution

S = 15 x $L^{0.2}$ x $C^{0.8}$

Total cost, T = wL + rC = 50L + 100C

Total revenue, R = Output price (P) x Quantity = P x 15 x $L^{0.2}$ x $C^{0.8}$

(a)

Optimization problem will be:

Max R = P x 15 x $L^{0.2}$ x $C^{0.8}$

Subject to T = 50L + 100C

(b) When S = 50,000

Cost is minimized when (MPL / MPC) = w / r

MPL = $\partial$ R / $\partial$ L = P x 15 x 0.2 x $(C / L)^{0.8}$ = P x 3 x $(C / L)^{0.8}$

MPC = $\partial$ R / $\partial$ C = P x 15 x 0.8 x $(L / C)^{0.2}$ = P x 12 x $(L / C)^{0.2}$

MPL / MPC = (3/12) x (C / L) = 50/100

C / 4L = 1/2

4L = 2C

2L = C

Substituting in production function,

15 x $L^{0.2}$ x $C^{0.8}$ = S

15 x $L^{0.2}$ x $(2L)^{0.8}$ = 50,000

15 x $2^{0.8}$ x $L^{0.2}$ x $L^{0.8}$ = 50,000

L = 50,000 / (15 x 20.8)

L = 1,914.50

C = 2L = 3,829.00

Total cost ($) = 50 x 1,914.50 + 100 x 3,829.00 = 95,725.00 + 382,900 = 478,625.00

Note: This optimization problem can be solved without using Solver too, as shown here.

6 0

3 years ago