What is your primary source of investment funds?

Ridgeway Corporation uses direct labor hours to allocate overhead to Work-in-Process. The company's budgeted overhead is $420,00

svlad2 [7]

Answer:

$315,000

Explanation:

Overhead estimate per vase = Budgeted overhead/ Budget vases

= $420,000/ 40,000 vases

= $10.5 per vase

Number of vases produced = Total direct labor hours/ Labor hours per unit

= 60,000/ 2

= 30,000 vases

Overhead costs = Overhead cost per unit X number of vases

= $10.5 X 30,000

= $315,000

Therefore, overhead cost to be allocated to Work-in- Progress inventory is $315,000.

5 0

4 years ago

Compensation systems can help create the conditions that contribute to high performance. Consequently, organizations can increas

maria [59]

Compensation systems can help create the conditions that contribute to high performance. Consequently, organizations can increase empowerment and job satisfaction by : communicating the basis for decisions about pay.

Explanation:

A system of compensation is the total sum of all monetary and non-monetary benefits to the staff in exchange for their readiness to work.

As businesses clearly communicate their concept of compensation, workers begin to understand what they can reasonably expect. Illuminate decision-making on benefits.

Workers need to understand how these decisions are made in order to accept pay decisions and believe that they are fair.

5 0

3 years ago

Aspen Company estimates its manufacturing overhead to be $515,000 and its direct labor costs to be $515,000 for year 2. Aspen wo

Step2247 [10]

Answer:

COGS 3807 debit

FG 7896 debit

WIP 2397 debit

Factory Overhead 14,100 credit

--to record the underapplication of overhead--

Explanation:

overhead rate:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

$515,000 overhead / 515,000 labor cost = $1

each labor cost generates a dollar of overhead.

221,400 x 1 = 221,400 overhead in COGS

459,200 x 1 = 459,200 overhead in Finished Goods

139,400 x 1 = 139,400 overhead in WIP inventory

Total applied 820,000

Actual 805,900

Underapplied 14,100

Now we weight each concept and determiante the portion underapplocated in each concept

$\left[\begin{array}{cccc}Item&Value&Weight&Allocated\\COGS&221400&0.27&3807\\FG&459200&0.56&7896\\WIP&139400&0.17&2397\\&&&\\Total&820000&1&14100\\\end{array}\right]$

4 0

3 years ago

Gustavson Corporation uses the direct method to allocate service department costs to operating departments. The company has two

9966 [12]

Answer:

Total allocated costs= $19,250.44

Explanation:

Giving the following information:

Service Departments:

Administrative= $26,840

Facilities= $59,400

Operating Departments:

Assembly= $183,430

Wholesaling= $321,190

Employee hours= 29,000 + 15,000= 44,000 hours

Space occupied= 30,000 + 6,000= 36,000

First, we need to calculate the proportion of hours and space used for Wholesaling.

Employee hours:

Whole= 15,000/44,000= 0.341

Space occupied:

Whole= 6,000/36,00= 0.17

Now, we can allocate costs tho Wholesaling.

Administrative= 26,840*0.341= $9,152.44

Facilities= 59,400*0.17= $10,098

Total allocated costs= $19,250.44

5 0

3 years ago

At January 1, 2017, Hennein Company had plan assets of $280,000 and a projected benefit obligation of the same amount. During 20

Nezavi [6.7K]

Answer:

The Pension schedule is prepared in the workings as requested.

Explanation:

The question is to Prepare a Pension Worksheet for Hennein Company for 2017

HENNEIN COMPANY

PENSION WORKSHEET FOR 2017

General Journal Entry Memo Record

Item Pension Cash Pension Defined Plan

Expenses Asset/Liab Benefit Assets

Obligation

Jan 1, 2017 280,000 CR 280,000 Dr

Service Cost 27,500 DR 27,500 CR

interest Cost 28,000 DR 28,000 CR

Actual return 25,000 CR 25,000 DR

Contributions 20,000 CR 20,000 DR

Benefits 17,500 DR 17,500 CR

Journal Entry 30,500 DR 20,000 CR 10,500 CR

Dec. 31, 2017 10,500 CR 318,000 CR 307,500 DR

Note that the interest cost is as follows

280,000 x 10% = $28,000

3 0

3 years ago