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julia-pushkina [17]
3 years ago
12

A welding company specializes in custom steel frames and uses job costing to account for its operations. The following informati

on is available as of May 1 for the work-in-process inventory account:
Job# Direct Materials Direct Labor Man. Overhead Total Cost
304 $3,000 $1,800 $2,520 $7,320
306 4,000 2,100 2,940 9,040
Total Cost 7,000 3,900 5,460 16,360

Welding Company pays an hourly rate of $15 for direct labor. Manufacturing overhead costsare applied to jobs based on the direct labor hours used. During the month of May, Jacob Welding spends $5,800 to purchase materials and $4,650 for manufacturing overhead. The operations in May are summarized below.

Job# Material Requisition summary Time Card Summary (Hours)
304 $1,100 40
306 900 30
307 2,800 110
308 750 25
Total 5,550 205


Jobs 304, 306, 307 are completed in May but only Jobs 304 and 307 are delivered to customers.
Required:
Calculate the predetermined overhead rate used.
Business
1 answer:
nalin [4]3 years ago
6 0

Answer: $21 per direct labor hour.

Explanation:

Based on the information given in the question, the predetermined overhead rate that is used will be calculated as:

= Manufacturing overhead / Direct labor

where,

Manufacturing overhead = 5460

Direct labor = 3900/15 = 260 hours

Therefore, predetermined overhead rate:

= 5460/260

= $21 per direct labor hour.

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Answer:

LLC

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3 years ago
Chris and Jordan are a two-person household. Chris's market hourly wage is $40, but Chris can also produce $20 of household prod
andrezito [222]

Answer:

A. Jordan specializes in household production, while Chris specializes in marketplace work.

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Chris and Jordan both can work for their household. The best way is to achieve maximum utility by using the combination of their skills. Chris can go for household work and Jordan can go for marketplace work. They both can use combination of their specialization to achieve maximum utility.

6 0
3 years ago
On January 1, Year 1, Alla Co. sold a property to Mish Co. for $400,000 and simultaneously leased it back for 3 years. The carry
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Explanation:

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The Difference between the sales price and the fair value is to be amortized over the period of use.

Seeing as the selling price is more than the fair value, the Gain on Sale is therefore,

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$30,000 is the amount of gain on sale of the property recognized by Alla on January 1, Year 1.

7 0
3 years ago
If you own a small business, which of the following helps with your finances?
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Answer:

C. Accountant

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3 years ago
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A client’s condition has resulted in a decrease in work demands of most cells in the body. Which change within the cell will lik
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Answer:

The correct answer to the following question will be "Decreased size of organelles".

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Hence, it is the right answer.

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3 years ago
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