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Softa [21]
3 years ago
9

Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has alw

ays used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours.
Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here:

Estimated Value Actual Value
Manufacturing overhead cost $594,000 $655,000
Direct labor cost $396,000 $450,000
Direct labor hours 16,500 hours 18,000 hours
Machine hours 7,500 hours 8,500 hours

Required:

1. Based on the company's current allocation base (direct labor hours), compute the following:
a. Predetermined overhead rate.
b. Applied manufacturing overhead.
c. Over- or underapplied manufacturing overhead.

2. If the company had used direct labor dollars (instead of direct labor hours) as its allocation base, compute the following:
a. Predetermined overhead rate.
b. Applied manufacturing overhead.
c. Over- or underapplied manufacturing overhead.

3. If the company had used machine hours (instead of direct labor hours) as its allocation base, compute the following:
a. Predetermined overhead rate.
b. Applied manufacturing overhead.
c. Over- or underapplied manufacturing overhead.
Business
1 answer:
HACTEHA [7]3 years ago
3 0

Answer:

Pooooop

Explanation:

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6 0
3 years ago
Why is positive wording more effective in business messages than negative wording?
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Positive wording has an effect on the message getting received, which is the goal.
3 0
3 years ago
Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (
Alja [10]

Answer:

Maintenance total cost: 325,000

Cost Allocated to Packagin from Maintenance 162,500

Explanation:

\left[\begin{array}{ccccc}&Maintenance&Cafeteria&Assembly&Packaging\\Employees&4&&8&8\\Direct \: Cost&270,000&275,000&&\\Allocate C&55,000&-275,000&&\\Subtotal&325,000&&110,000&110,000\\Allocate M&-325,0004&-15,760&-162,500&-162,500\\Total&&&272,500&272,500\\\end{array}\right]

We will divide the cafeteria cost by the sum of employees of the department and maintenance.

4+8+8 = 20

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Then we multiply this by each department employees and add them to their cost.

Maintenance total cost after adding cafeteria is 325,000

Then we do the same, we divide this amount for the emplyees of the processsing department:

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325,000/16 =20,325.5

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Maintenance total cost: 325,000

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5 0
3 years ago
Ospry Company has working capital in the amount of $ 1,240,000 . For the following transactions, determine whether working capit
chubhunter [2.5K]

Purchasing inventory increases your accounts payable and the inventory balance. Trade payables are part of current liabilities and inventories are part of current assets. Both the balance of current assets and current liabilities will increase and the net effect on working capital will be zero. Therefore, working capital remains the same.

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In short, working capital is the money available to meet current short-term obligations. To ensure your working capital is working effectively, you need to calculate your current situation, anticipate your future needs, and consider how to ensure you always have enough cash.

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6 0
2 years ago
Randall describes his job this way.
julia-pushkina [17]

Answer:

I am pretty sure it is maintenance/ operations

Explanation:

Because he is going and making sure stuff is working right, and fixing them if they are not.

7 0
3 years ago
Read 2 more answers
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