All categories

3 years ago

Lawrence Company applies manufacturing overhead to jobs based on machine hours used.

Business

1 answer:

NikAS [45]3 years ago

3 0

Answer:

Under/over applied overhead= $10,000 underallocated

Explanation:

Giving the following information:

Overhead costs are estimated to be $300,000.

The estimated machine hours are 125,000 hours.

During the year, actual overhead costs totaled $322,0000 and it incurred 130,000 machine hours.

First, we need to calculate the estimated manufacturing overhead rate:

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

Estimated manufacturing overhead rate= 300,000/125,000= $2.4 per machine hour

Now, we can allocate overhead

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

Allocated MOH= 2.4*130,000= $312,000

Finally, we determine the under/over allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 322,000 - 312,000= $10,000 underallocated

You might be interested in

The Route 66 Gift Shop, which records sales and sales tax separately, had sales on account of $1,500 and cash sales of $1,000. T

Romashka-Z-Leto [24]

Answer: D. Debit to Accounts Receivable of $1,620 and a debit to Cash of $1,080.

Explanation:

Route 66 Gift Shop records sales and sales tax separately so we would have to account for both of them in the amount recorded in the Journal Entry.

For the Accounts Receivables therefore the figure we would record is,

= 1,500 + 1500(0.08)

= $1,620

For the Cash Sales would be

= 1,000 + 1000(0.08)

= $1,080

Therefore option D is correct.

5 0

3 years ago

A company incurs advertising costs of $10,000. The company's three selling departments have the following sales: Department 1—$1

erik [133]

Answer:

The amount of advertising allocated to:

Department 1: $1,250

Department 2: $3,750

Department 3: $5,000

Explanation:

Total sales of the company = Sales of Department 1 + Sales of Department 2 + Sales of Department 3 = $10,000 + $30,000 + $40,000 = $80,000

Percent of sales of three selling departments:

Department 1 = ($10,000/$80,000)x100% = 12.5%

Department 2 = ($30,000/$80,000)x100% = 37.5%

Department 3 = ($40,000/$80,000)x100% = 50%

Advertising is allocated based on percent of sales. The amount of advertising allocated to:

Department 1 = 12.5% x $10,000 = $1,250

Department 2 = 37.5% x $10,000 = $3,750

Department 3 = 50% x $10,000 = $5,000

5 0

3 years ago

Why can it be a negative for the US if the dollar is too 'strong' ?

Nataly_w [17]

It discourages investment from foreign sources

5 0

3 years ago

Read 2 more answers

Amy, a baker, has found her dream home, but cannot afford the down payment. Amy’s brother agrees to loan her $3000 for the down

Kitty [74]

Answer:

$0 because an agreement to accept different performance in lieu of full payment of liquidated debt is binding.

Explanation:

Since there is an agreement between Amy, a baker, and her brother, she owes him $0.

At first, Amy gets a loan of $3,000 from her brother to pay for her dream home. She agrees to pay him back in one year, and that agreement was binding. During the time to pay back the loan, Amy offers to bake her brother's wedding cake instead of paying back the loan and her brother accepts. This has presented a new agreement that overrules the previous agreement. Now instead of paying back the $3,000, she would bake a wedding cake for him. This implies that the wedding cake is equal to $3,000.

Therefore, she owes him $0.

4 0

3 years ago

Dean, the president of Billing & Credit Company, promises to pay his employee Ewing, who is dangerously obese, $10 for every

Aliun [14]

Answer:

See the explanation below.

Explanation:

The court likely to rule in favor of Ewing.

The reason is that the enough consideration that gives backing to a promise in this case is generally the waiver of a legal right to eat to obesity as requested by the other party.

The evidence that Ewing has lost 154 pounds in weight over the stipulated period is a consideration that sufficient enough under the law. The payment of $10 pound that Ewing has lost is a promise. The fact that Ewing also benefit from the weight loss does not matter.

4 0

3 years ago