Answer:
$159.1
Explanation:
The computation of the total variable manufacturing cost per unit is shown below;
At 8,600 units,
The total cos is
= (Direct material per unit + Direct labor per unit + Manufacturing cost per unit) × Number of units
= ($98.70 per unit + $25.60 per unit + $73.20 per unit) × 8,600 units
= $197.5 per unit × 8,600 units
= $1,698,500
At 9,600 units
The Total cost
= ($98.70 per unit + $25.60 per unit + $69.20) × 9,600 units
= $193.5 per unit × 9,600 units
= $1,857,600
So, the best estimated would be;
= ($1857,600 - $1,698,500) ÷ (9,600 units - 8,600 units)
= $159,100 ÷ 1,000 units
= $159.1
Answer:
Predetermined overhead rate=$19.5/machine hour
The company applied $877500 to the units produced.
Explanation:
a) Pre-determined overhead rate= <u>Budgeted overhead manufacturing cost</u>
Estimated number of machine hours
=975000/50000=$19.5/machine hour.
b)Applied overhead = Pre-determined overhead rate * Actual machine hours
= 19.5 * 45000
=$877500.
c.
In traditional costing we use as base for calculating overhead rate is machine hours or labor hours but in activity based costing we identify activity that consume resources,identify cost driver of each activity,compute cost rate per cost driver unit and finally assign cost to products by multiplying cost driver rate.
Predetermined overhead rate= estimated overhead/Estimated base (cost driver).
Answer: $67600
Explanation:
Using the flow-to-equity method of valuation, the amount borrowed will be calculated thus:
NPV = $157000
Add : Initial investment = $640000
Present value of cash inflow = $797000
Less : Present value of Levered cash flow = $729400
Amount borrowed = $67600
Therefore, the amount borrowed is $67600.
Identical products is a characteristic of a A. perfect competition.
Here are all of the characteristics of perfect competition:
1. a large number of small firms
2. identical products
3. freedom and resource mobility
4. knowledge of prices and technology
Answer:
C. Your client can’t create an Adjusting Journal Entry.
Explanation:
In QuickBooks Online Accountant you (the accountant) make the adjusting journal entries, not your clients. It is like saying that you operate yourself while your doctor drinks coffee besides your bed.
the other options are wrong:
A. A Journal Entry cannot be used to account for depreciation of an asset. ⇒ FALSE, QuickBooks doesn't automatically depreciate an asset, the user must do this through journal entries.
B. The Accountant user can’t create an Adjusting Journal Entry in QuickBooks Online. ⇒ FALSE, when using QuickBooks Online Accountant you can create adjusting entries just like any other regular entry.
