Governments generally take responsibility for

To reduce the amount of waste we produce takes thoughtful consideration about which products we use and how we use them. a goal

Goshia [24]

Use only disposable goods

8 0

3 years ago

Read 2 more answers

Bramble Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total

horsena [70]

Answer:

Manufacturing overhead rate is $2.36 per machine hour

Under applied overhead is $69,100

Journal Entry

Dr. Cost of Goods Sold $69,100

Cr. Manufacturing overhead $69,100

Explanation:

Manufacturing overhead rate is calculated by dividing the Estimated overhead with the estimated level of activity on which the overhead is allocated. It is a rate at which the overhead is allocated to a product / project/ department.

Manufacturing overhead rate = Estimated overhead / Estimated activity

Manufacturing overhead rate = Estimated overhead / Estimated machine hours

Manufacturing overhead rate = $297,124 / 125,900 machine hours

Manufacturing overhead rate = $2.36 per machine hour.

If the applied manufacturing cost is more than the actual cost incurred cost, then overheads are over-applied and If applied overhead cost is less than the actual cost then it is under-applied.

Applied over head = Manufacturing overhead rate x Actual machine hours = $2.36 x 130,700 = $308,452

Under applied overhead = Actual Overhead - Applied Overhead = $377,552 - $308,452 = $69,100

As the actual overhead value is more than the applied, so the overhead is under applied.

Journal Entry for Under applied overhead.

Dr. Cost of Goods Sold $69,100

Cr. Manufacturing overhead $69,100

4 0

3 years ago

You just bought a motorcycle for $8,000. You plan to ride the motorcycle for two years, and then sell it for $3,200. During this

lana66690 [7]

Answer:

Total fixed costs = $6,800

b. Total variable cost = $2,775

c. = $0.48 per mile

2. iii variable costs, because they can be avoided.

Explanation:

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.

Depreciation + Insurance + cost of registration

Depreciation = Cost - salvage = 8,000 - 3,200 = $4,800

Insurance = 960 x 2 = 1920

Total fixed cost = 4,800 + 1920 + 80 = $6,800

Total variable cost

Gasoline + Service + Oil change + tire replacement

Gasoline = 10,000/ 50 = 2000 x 2.5 x 2 = 1000

= (1000 + (240 * 5) + (35 * 5) + 400

= 1,000 + 1,200 + 175 + 400 = $2,775

Total cost / Number of miles

= (6,800 + 2,775) / (10,000 * 2 years)

= $0.48 per mile

6 0

3 years ago

The following control procedures are used in Bunny’s Boutique Shoppe for cash disbursements. For each procedure, explain the wea

Sav [38]

Answer:

a. Principle Violated - Physical Controls

Weakness - The cheques are not stored in a secure area and so can be misused if people who find it have ill minds about it.

b. Principle Violated - Segregation of Duty

Weakness - The approval and payment of bills is done by the same individual. This can give rise to the store manager approving fraudulent payments and then authorizing it herself.

c. Principles Violated - . Establishment of responsibility; Documentation procedures

Weakness - Unauthorized employees making purchases.

Not all employees should have the power to approve purchases for resale.

Weakness - Use of cash instead of checks; no prenumbered invoices.

Checks should be used to disburse the cash so that payment may be cancelled if need be. Also prenumbered invoices should be used so that purchases can be tracked.

d. Principle Violated - Documentation Procedures

Weakness - Filing does not prevent a bill from being paid more than once

Just because the bills are filed does not mean that they won't be paid more than once. A more sophisticated method is needed that reflects when a bill has been paid to prevent it being paid for again.

e. Principle Violated - Independent Internal Verification

Weakness - The bank reconciliation is not independently prepared

The bank reconciliation should not be prepared by the same person who has been in charge of the accounting entries in the company. Someone else should do it to ensure that no fraudulent transactions were recorded.

7 0

4 years ago

Donovan's would like to increase its internal rate of growth. Decreasing which one of the following will help the firm achieve i

IgorC [24]

Answer:

D) Dividend payout ratio

Explanation:

Internal Growth Rate of a firm is the maximum growth rate at which the firm can grow without involving external financing i.e. without assuming additional debt or equity infusion in the firm. At this level of growth the cash available from the operations can be used to fund the company.

It is calculated using the formula

IGR= ROA* b / (1-ROA * b)

where

IGR is the Internal Growth Rate

ROA is return on assets

b is the retention ratio or (1-dividend payout ratio)

To answer the question we look at each option

If ROA (Return on Asset) is decreased the numerator decreases and denominator increases in equation (1) and thus the Internal growth rate decreases, so ROA is not the answer

If Net Income is reduced the Return on Assets also falls thus as in the above case Internal growth Rate decreases

If retention ratio is reduced the numerator decreases and denominator increase leading to a fall in IGR

If dividend payout ratio is decreased the retention ratio increases leading to the increase in numerator and decrease in denomonator leading to an increase in the IGR. Thus Decreasing the dividend payout ratio will increase the IGR.

If Return on Equity is reduced i.e. indirectly Net Income is reduced for the same equity the similar effect as in part for Net Income and thus reduces the IGR.

So decreasing dividend payout ratio increases the interna growth rate of a firm

3 0

3 years ago