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aalyn [17]
3 years ago
15

Tancredi Corporation has two manufacturing departments--Machining and Customizing. The company used the following data at the be

ginning of the year to calculate predetermined overhead rates: Machining Customizing Total Estimated total machine-hours (MHs) 5,000 5,000 10,000 Estimated total fixed manufacturing overhead cost $22,000 $11,500 $33,500 Estimated variable manufacturing overhead cost per machine-hour $ 1.80 $ 3.00 During the most recent month, the company started and completed two jobs--Job E and Job J. There were no beginning inventories. Data concerning those two jobs follow: Job E Job J Direct materials $12,800 $7,000 Direct labor cost $17,600 $7,700 Machining machine-hours 3,400 1,600 Customizing machine-hours 2,000 3,000 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. If both jobs are sold during the month, the company's cost of goods sold for the month would be closest to: (Round your intermediate calculations to 2 decimal places.)
Business
1 answer:
olganol [36]3 years ago
6 0

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

Fixed overhead= 33,500

Total variable overhead= (1.8*5,000) + (3*5,000)= 24,000

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (33,500 + 24,000) / 10,000

Predetermined manufacturing overhead rate= $5.75

<u>Now, we can determine the total cost for each Job:</u>

<u>Job E:</u>

Direct material= $12,800

Direct labor= $17,600

Allocated overhead= (3,400 + 2,000)*5.75= $31,050

Total cost= $61,450

<u>Job J:</u>

Direct material= $7,000

Direct labor= $1,600

Allocated overhead= (1,600 + 3,000)*5.75= $26,450

Total cost= $35,050

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djyliett [7]

Answer:

There is a​ 10% chance of the mean​ oil-change time of 20.53 minutes

Explanation:

Given that:

There are 45 oil changes between 10 a.m. and 12 p.m. treating this as a random​ sample, n = 45 and  there would be a​ 10% chance of the mean​ oil-change time, therefore P = 10% = 0.1

A probability of 0.1 gives a corresponding z score of -1.28, this is gotten from the z table. z = -1.28

z score (z) = (x - mean) / (standard deviation / √n)

Let us assume mean = 21.2 minutes and standard deviation = 3.5 minutes. substituting values:

-1.28 = (x - 21.2)/(3.5 ÷ √45)

-1.28 = (x - 21.2) / 0.522

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5 0
3 years ago
price index was 128 in year 1, and the inflation rate was 24 percent between year 1 and year 2. the price index in year 2 was a.
Gennadij [26K]

The price index in year 2 is 158.7 (option a).

<h3>What is the price index?</h3>

Price index is used to measure how price change over a period of time. Price index is used to measure inflation. An example of a price index is the consumer price index. The consumer price index measures changes in the price of a basket of goods.

Price index in year 2 = ( 1 + inflation rate) x price index in year 1

(1.24) x 128 = 158.7

To learn more about price index, please check: brainly.com/question/26382640

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5 0
9 months ago
Risks of fixed costs of a business are more for an alliance than an independent firm.
frosja888 [35]
False. Risks of fixed costs of a business are more for an alliance than an independent firm. Businesses have risks and without any risk, comes a smaller reward. Taking a risk often yields a larger profit and room to grow/expand. Fixed costs are are costs that stay constant no matter the quantity of goods or service produced. 
5 0
3 years ago
Data concerning Pony Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 200 100 % Variable exp
Luda [366]

Answer:

$18,000

Explanation:

The computation of overall effect on the company's monthly net operating income is shown below:-

                                 Current                 Proposed

Sales                       $800,000               $837,000

                        (200 × 4000)     (200 - 14) × (4,000 + 500)

Variable expenses  $160,000             $180,000

                              (40 × 4000)  (40 × (4,000 + 500))

Contribution margin $640,000            $657,000

Fixed expenses     $531000                 $566,000

                                                  ($531,000 + $35,000)

Net operating

income                  $109,000                $91,000

Decrease in net operating income = Current - Proposed

= $109,000 - $91,000

= $18,000

So, for computing the overall effect on the company's monthly net operating income we simply applied the above formula.

8 0
3 years ago
During the first month of operations ended July 31, Western Creations Company produced 80,000 designer cowboy hats, of which 72,
bulgar [2K]

Answer:

Western Creations Company

1. Income Statements for July and August, under absorption costing:

                                               July                   August

Sales Revenue                $4,320,000.00    $4,320,000.00

Cost of goods sold            3,240,000.00      2,649,600.00

Gross profit                      $1,080,000.00     $1,670,400.00

Total selling & admin. exp. $169,000.00       $169,000.00

Net Income                          $911,000.00     $1,501,400.00

2. Income Statements for July and August, using variable costing:

                                                   July                   August

Sales Revenue                    $4,320,000.00    $4,320,000.00

Variable cost of goods sold  3,081,600.00       2,491,200.00

Contribution margin            $1,238,400.00     $1,828,800.00

Fixed expenses:

Total fixed costs                      345,000.00         345,000.00

Net income                           $893,400.00      $1,483,800.00

3a. The reason for the differences in the amount of the income from operations in in (1) and (2) for July is the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).

3b. The reason for the differences in the amount of the income from operations in (1) and (2) for August is also the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).

Explanation:

a) Data and Calculations:

Number of hats produced = 80,000

Number of hats sold = 72,000

Ending inventory = 8,000

1 Sales $4,320,000.00

2 Manufacturing costs:             July                    August

3 Direct materials                  $1,600,000.00    $1,280,000.00

4 Direct labor                           1,440,000.00       1,152,000.00

5 Variable manufacturing cost 240,000.00         192,000.00

6 Fixed manufacturing cost      320,000.00        320,000.00

Total manufacturing costs   $3,600,000.00  $2,944,000.00

Under absorption costing:

Unit cost = $45 ($3,600,000/80,000)             $36.80 ($2,944,000/80,000)

Cost of goods sold = $3,240,000 ($45*72,000) $2,649,600 (36.8*72,000)

Ending Inventory =         360,000 ($45*8,000)         294,400 ($36.8*8,000)

7 Selling and administrative expenses:

8 Variable                                 $144,000.00       $144,000.00

9 Fixed                                         25,000.00          25,000.00

Total selling & admin.  exp.     $169,000.00      $169,000.00

Under variable costing:

2 Manufacturing costs:

3 Direct materials                    $1,600,000.00     $1,280,000.00

4 Direct labor                             1,440,000.00        1,152,000.00

5 Variable manufacturing cost   240,000.00          192,000.00

8 Variable selling & admin cost   144,000.00          144,000.00

Total variable costs =             $3,424,000.00    $2,768,000.00

Unit variable cost = $42.80 ($3,424,000/80,000)     $34.60

Cost of goods sold = $3,081,600 ($42.80 * 72,000)  $2,491,200

Ending Inventory =         342,400 ($42.80 * 8,000)         276,800

6 Fixed manufacturing cost    $320,000.00            $320,000.00

9 Fixed selling & admin. cost      25,000.00                25,000.00

Total fixed costs =                   $345,000.00            $345,000.00

7 0
3 years ago
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