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kumpel [21]
3 years ago
14

Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs a

nd expenses for the coming period are as follows:
Engine parts $740,000
Shop direct labor 500,000
Shop and repair equipment depreciation 40,000
Shop supervisor salaries 133,000
Shop property taxes 22,000
Shop supplies 10,000
Advertising expense 20,000
Administrative office salaries 71,400
Administrative office depreciation expense 6,000
Total costs and expenses $1,542,400
The average shop direct labor rate is $20 per hour.
Determine the predetermined shop overhead rate per direct labor hour.
Business
1 answer:
KiRa [710]3 years ago
5 0

Answer:

$8.20/Direct Labor hours

Explanation:

Cost of performing engine repair work = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies

Cost of performing engine repair work = $40,000 + $133,000  + $22,000 + $10,000

Cost of performing engine repair work = $205,000

Direct Labor Hours = Direct Labor/Direct Labor rate

Direct Labor Hours = 500,000/$20 per hour

Direct Labor Hours = 25,000 hours

Predetermined shop overhead rate per direct labor hour = $205,000 / 25,000 Hours = $8.20/Direct Labor hours

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The journal entry to record the purchase of equipment for a $140 cash down payment and a balance of $480 due in 30 days would in
Tju [1.3M]

Answer:

Option C. A debit to Equipment for $620, a credit to Cash for $140, and a credit to Accounts Payable for $480.

Explanation:

The reason is that the equipment has been acquired by the business which is worth $620 and this means that the equipment which is asset in nature must be increased by it fair value which is $620. The purchase of equipment requires the payment of $140 at the spot which means that the cash asset will be reduced by $140 and the remainder $480 will be paid in future which means that the current liabilities will be increased by $480.

Increase in Equipment (fixed asset) is debited by $620.

Decrease in Cash (asset) is credited with $140.

Increase in current liability is always credited and in this case must be credited with $480.

Journal entry in nutshell is as under:

Dr Equipment $620

Cr Cash Account          $140

Cr Accounts Payables  $480

7 0
3 years ago
If accounting information is to be useful, it must be expressed in terms of​
Novay_Z [31]

Answer:

accounting information?

3 0
2 years ago
At the beginning of the month, the Painting Department of Skye Manufacturing had 30,000 units in inventory, 70% complete as to m
VikaD [51]

Answer:

Cost per equivalent unit of material =  $2.20 per unit

Cost per equivalent unit of conversion =  $4 unit

Explanation:

The computation of Cost per equivalent unit of material, Cost per equivalent unit of conversion is shown below:-

For computing the cost per equivalent first we need to find the equivalent unit of material which is below:-

= Transferred units + ( Department units × Material percentage)

= 135,000 + (20,000 × 40%)

= 135,000 + 8,000

= 143,000

So, the Cost per equivalent unit of material = (Beginning material cost + Current month material cost) ÷ Equivalent unit of material

= ($32,400 + $282,240) ÷ 143,000

= $314,640  ÷ 143,000

= $2.20 per unit

Now, For computing the Cost per equivalent unit of conversion first we need to find the equivalent unit of conversion cost which is below:-

= Transferred units + ( Department units × Conversion percentage)

= 135,000 + (20,000 × 15%)

= 135,000 + 3,000

= 138,000

So, the Cost per equivalent unit of conversion = (Beginning conversion cost + Current month conversion cost) ÷ Equivalent unit of conversion cost

= ($6,250 + $544,700) ÷ 138,000

= $550,950  ÷ 138,000

= 3.99

or $4 unit

8 0
3 years ago
A hostile takeover is a situation in whicha.the management and board of directors of the targeted firm disapprove of the propose
Tasya [4]

Answer: a - the management and board of directors of the targeted firm disapprove of the proposed merger

Explanation:

A hostile takeover is a situation where the board of directors and senior managers are against the proposed merger.

There are several pre-offer takeover defense mechanisms. One of them is the golden parachute.

The golden parachute is a compensation agreement between a firm and its senior managers. The firm promises a very lucrative amount of money if the senior managers leave the firm if there's a change of control.

There are also post offer takeover defense. They include:

A. The crown jewel - in a crown jewel the firm sells off a subsidiary or an asset to a third party in an effort to mitigate the hostile take over.

B. Greenmail - the target buys its shares back from the acquiring company at a price higher than the market price. This is done with an agreement that the acquirer leaves the target company. It is a form of payoff by the target company.

5 0
3 years ago
By the end of the accounting period, employees have earned salaries of $650, but they will not be paid until the following pay p
pav-90 [236]

Answer:

The required adjusting entry would be to debit the Salaries expense account $650 and credit the accrued salaries account $650.

Explanation:

When an expense is incurred but yet to be settled in accrual accounting, the expense has to be recognized in the period in which it is incurred by debiting the expense account and crediting the accrued expense ( a liability) account with the amount incurred.

5 0
3 years ago
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