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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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A five-year bond has a par value of 1000, a coupon of 3%, and a required yield of 5%. What should be the market price of this bo
Dmitrij [34]

Answer:

The market price of the bond is $913.41

Explanation:

The coupon payment is annual, meaning it is being paid once a year.

N(Number of years/Number of periods) = 5

I/Y(Yield-To-Maturity) = 5 percent

PMT(coupon payment) = $30 [(3/100) x $1,000]

FV(Future value/Par value) =$1,000

PV(present value or market value) = ?

Now to solve this, lets use a financial calculator (e.g Texas BA II plus)

N= 5; I/Y = 5%; PMT = $30; FV = $1,000; CPT PV = -$913.41

Therefore, the market price of the bond is $913.41

4 0
3 years ago
Dion, an accountant for Entertainment Sports, Inc., attempts to apply a duty-based approach to ethical reasoning in conflicts th
DaniilM [7]

Answer:

Avoid unethical behavior regardless of the consequences.

Explanation:

Unethical behavior has genuine ramifications for the two people and associations. You can lose your employment and notoriety, associations can lose their believability, general spirit and profitability can decrease, or the conduct can bring about critical fines and additionally monetary misfortune.  

Among the most exceedingly awful impacts of exploitative conduct on business is that an organization can't manufacture or keep up any long haul associations with clients.

4 0
3 years ago
If the marginal cost of production is greater than the average cost, in what direction must the average cost be changing, if any
ziro4ka [17]

Answer:

b) The average cost must be rising.

Explanation:

Assuming that the entity produce 4 units and its total cost is $16 so average cost per unit is $4 and  now the same entity has produced the 5th unit at $5 so the average cost now per unit is (16+5)/5=$4.2

So based on the above discussion, it can be concluded that average cost increase when the marginal cost of production is increased.

So the answer is b) The average cost must be rising.

6 0
3 years ago
During its first year of operations, the McCormick Company incurred the following manufacturing costs:_______. Direct materials,
notka56 [123]

Answer:

Net income= $432,000

Explanation:

Giving the following information:

Fixed overhead, $224,000.

The company produced 28,000 units, and sold 19,000 units, leaving 9,000 units in inventory at year-end.

Income calculated under variable costing is determined to be $360,000.

The difference between absorption costing and variable costing method is that the first one includes the fixed manufacturing cost in the unitary production cost. <u>Some of the fixed overhead is allocated into ending inventory increasing the net income for the period.</u>

Unitary fixed overhead= 224,000/28,000= $8

Fixed overhead in ending inventory= 8*9,000= $72,000

Net income= 360,000 + 72,000= $432,000

6 0
3 years ago
As consumers, we have to make decisions because ?
Leno4ka [110]

Answer: As consumers, we have to make decisions because our wants are <em><u>unlimited but our resources are limited</u></em>. Since you have two of the same choices, I am assuming there is a typo and this is the choice that should be there.

Explanation:

As a consumer, there is so much that can be bought but financially most people can't afford everything. When buying an item, it is up the consumer to determine if they can afford the item or go without it. Sometimes, we buy the item even though we can't afford it and then regret the purchase. To satisfy a persons wants, a budget must be in place to be able to save money to purchase items.

4 0
3 years ago
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