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MakcuM [25]
3 years ago
8

Neef Corporation has provided the following data for its two most recent years of operation: Selling price per unit Manufacturin

g costs: 84 Variable manufacturing cost per unit produced: Direct materials 12 Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year $432,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold 5 Fixed selling and administrative expense per year 61,000 Year 1 Year 2 3,000 Units produced during the year 12, 000 9,000 9,000 10,000 3,000 2,000 Units in beginning inventory Units sold during the year Units in ending inventory Which of the following statements is true for Year 2?
A. The amount of fixed manufacturing overhead released from inventories is $654,000
B. The amount of fixed manufacturing overhead deferred in inventories is $12,000
C. The amount of fixed manufacturing overhead released from inventories is $12,000
D. The amount of fixed manufacturing overhead deferred in inventories is $654,000
Business
1 answer:
Luden [163]3 years ago
7 0

Answer:

C. The amount of fixed manufacturing overhead released from inventories is $12,000

Explanation:

Fixed manufacturing overhead in year 1 = $432,000

Production of units in Year 1 = 12,000 units

Thus, fixed manufacturing overhead per unit in year 1 = $432,000 / 12,000 units = $36 per unit

Inventory at the end of year 1 = 3,000 units

Fixed manufacturing overhead deferred in year 1 = 3000 units * $36 per unit = $108,000

Now, lets calculate for year 2:

Production units: 9000 units

Fixed manufacturing overhead per unit in year 2 : $432,000 / 9,000 units = $48 per unit

Fixed manufacturing overhead in closing inventory = 2000 units * 48 = $96,000

<em>Fixed manufacturing overhead released from inventory = Fixed manufacturing overhead in beginning inventory - Fixed manufacturing overhead in ending inventory</em>

Now, applying the formula (as stated above) for calculating fixed manufacturing overhead released from inventory in year 2:

Fixed manufacturing overhead (FMOH) released from inventory in year 2 = FMOH in year 1 - FMOH in year 2

= $108,000 - $96,000 =

= $12,000.

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Matrix organisation, mirror a mix of practical and projectized characteristics. Matrix organisation can be named feeble, adjusted, or solid relying upon the overall degree of intensity and impact among utilitarian and undertaking chiefs. Powerless framework associations keep up huge numbers of the qualities of a practical association, and the job of the venture director is even more an organizer or expediter.A venture expediter fills in as staff collaborator and correspondences facilitator. The expediter can't settle on or implement choices. Task facilitators have capacity to settle on certain choices, have some position, and report to a more elevated level supervisor. Solid framework associations have a large number of the attributes of the projectized association, and have full-time venture supervisors with extensive position and full-time venture regulatory staff. While the reasonable framework association perceives the requirement for a task supervisor, it doesn't give the venture administrator the full authority over the undertaking and venture financing.

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