1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Firlakuza [10]
3 years ago
6

Manufacturer of custom hot tubs and spas. What factors should be considered in selecting an allocation base to be used in comput

ing a predetermined overhead rate. Would you expect the amount of applied overhead for a period to equal the actual overhead cost of the period? Why or Why not? Provide two reasons why overhead might be underapplied in a given period.
Business
1 answer:
Tju [1.3M]3 years ago
7 0

Answer:

1. Factors to be considered in selecting an allocation base to be used in computing a predetermined overhead rate are:

the cost drivers.

2. The amount of applied overhead for a period does not necessarily have to equal the actual overhead cost of the same period.  The reason for the difference is that the applied overhead is based on a predetermined rate(s) and a level or volume of activities, whereas the actual overhead cost is not based on a predetermined rate and a level of activities.

3. Overhead might be underapplied in a given period when the volume of activity between the budgeted and the actual are not equal and when the spending rates differ.

Explanation:

The cost driver is the factor that creates or drives an activity and its associated costs. It is, therefore, the root cause why a particular cost occurs during the activity.   This shows that activities consume resources, whereas products and customers consume activities.  Examples of cost drivers include the direct labor hours, the direct machine hours, and the number of machine set-ups.

You might be interested in
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reportin
pentagon [3]

The correct answer to this question is:

“5 days”

<span>Under the Fair Credit Reporting Act (FCRA), consumers should be advised that they have a right to request further information regarding Investigative Consumer Reports, and the insurer or reporting agency has 5 days to present the consumer with the additional information.</span>

4 0
3 years ago
Water that can be reused without purification for watering your yard and can help reduce overall water usage is called _________
Paraphin [41]

The answer is “gray water”. Gray water is defined as the wastewater from showers and sinks, gray water can be used to water your yards. Gray water does not need purification to water your yard, it can even help in reducing one’s overall water usage at home.

8 0
3 years ago
The sensitivity of bank profits to changes in interest rates can be measured more directly using ▼ duration analysis credit rati
Pavel [41]

Answer:

The correct answer is Gap Analysis.

Explanation:

The deficiency analysis is a strategic planning tool that will help you understand where you are, where you want to go and how to get there.

One of the first steps for the transition or implementation of your management system is to check your management system with respect to the requirements of the standard. This is what is commonly known as deficiency analysis, also known as pre-audit.

The deficiency analysis is carried out at the beginning of the certification process to verify compliance with the requirements of the standards to be implemented. Each standard has specific requirements that must be met and are detailed in several clauses. If your system does not meet these requirements, you must solve this problem in order to get certified.

8 0
3 years ago
Read 2 more answers
The term economies of scale refers to the fact that as the:
frutty [35]

Answer:

quantity of product produced in a given period increases, the cost of manufacturing each unit decreases

Explanation:

Economies of scale happens when the average total cost (variable + fixed production costs per unit) decreases as total output increases. This generally takes place because fixed costs are the same for a small number of units produced or a large number of units produced, so the average fixed cost per unit tend to decrease as more units are produced (at least up to certain point). Variable production costs per unit can also decrease as total output increases since materials might be purchased in larger quantities resulting in higher discounts or labor productivity increases.

7 0
3 years ago
Fixed cost per unit is inversely proportional to the volume of units produced.
Levart [38]
True. Fixed cost per unit is inversely proportional to the volume of units produced.

Fixed costs per unit are inversely proportional to the volume produced because depending on the amount of units made, the amount spent on fixed costs is then based. Because they are related to one another, this statement is true.  
5 0
3 years ago
Other questions:
  • The following information is available for Waterway Industries: Sales $640000 Total fixed expenses $150000 Cost of goods sold 44
    13·1 answer
  • Nasa wanted to know if extended periods of weightlessness would have an impact on long-term circulatory function. the agency loc
    14·1 answer
  • A citation identifies the publication in which a legal authority can be found.​
    8·1 answer
  • Which of the following statements is correct?
    12·1 answer
  • A very small country's gross domestic product is $12 million.
    13·1 answer
  • Which item shows a credit balance in the Trial Balance?
    9·2 answers
  • Me heart is broken...can anyone of you fix it
    8·1 answer
  • Wade Company estimates that it will produce 6,000 units of product IOA during the current month. Budgeted variable manufacturing
    6·1 answer
  • A purchase of supplies on account is recorded in the a.revenue journal b.general journal c.cash payments journal d.purchases jou
    12·1 answer
  • The size and cut of a diamond allows people looking at a ring to roughly estimate its cost and make a judgment about the wearer'
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!