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sertanlavr [38]
2 years ago
14

Farmer's Fine Furnishings manufactures upscale custom furniture. Farmer's currently uses a plantwide overhead rate based on dire

ct labor hours to allocate its $1,100,000 of manufacturing overhead to individual jobs.​ However, Delores Fuller​, owner and​ CEO, is considering refining the​ company's costing system by using departmental overhead rates.​ Currently, the Machining Department incurs $740,000 of manufacturing overhead while the Finishing Department incurs $360,000 of manufacturing overhead. Fuller has identified machine hours​ (MH) as the primary manufacturing overhead cost driver in the Machining Department and direct labor​ (DL) hours as the primary cost driver in the Finishing Department.
Requirement 1. Compute the plantwide overhead rate assuming that Donovan's expects to incur 27,500 total DL hours during the year.
First, identify the formula, then compute the rate.
Requirement 2. Compute departmental overhead rates assuming that Donovan's expects to incur 14,800 MH in the Machining Department and 18,000 DL hours in the Finishing Department during the year.
First, identify the formula, then compute the rate for each department.
Business
1 answer:
alexdok [17]2 years ago
3 0

Answer:

See below

Explanation:

1. Plant wide overhead rate

= Total manufacturing overhead / Estimated cost allocation base

= $1,100,000/27,500

= $40

2. Compute department overhead rates

= Total department overhead / Estimated cost allocation base

Machining department

= $740,000/14,800

= $50 per MH

Fishing department

= $360,000/18,000

= $20 per DL

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I rlly need answers quick guys! This isnt Business tho!
aivan3 [116]

Answer:

$119.48

Explanation:

hope this helped :)

7 0
3 years ago
During December, Far West Services makes a $1,600 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.
vredina [299]

Answer:

Account Receivables 1,736 debit

   Sales Revenue             1,600 credit

   sales tax payable            136 credit

Explanation:

The company will charge to the 1,600 sale the sales tax :

1,600 x (0.06 state + 0.025 local) = 136

the salestax is levied in the consumer not the firm thus it is not an expense the company is just an intermediary between the government and the consumer.

3 0
3 years ago
Where is Nova City Islamabad located? Also is it under progress or has the development been completed?
elena55 [62]

Answer:

Nova City is a prime location in Islamabad

Explanation:

It is a few kilometers away from the New Islamabad International Airport.  It is right next to CPEC Ring Road Interchange and is at the center of twin cities.

The project is not yet launched, but the development of the infrastructure has started that will attract the investors towards the project.

7 0
2 years ago
Answer the question on the basis of the following data for the hypothetical nations of Alpha and Beta. Qs is domestic quantity s
bezimeni [28]

Question Completion:

Domestic Market for Steel, Alpha

Qs P Qd

60 5 10

40 4 20

30 3 30

20 2 40

10 1 50

Domestic Market for Steel, Beta

Qs P Qd

80 5 20

70 4 30

60 3 40

50 2 50

40 1 60

Answer:

Assuming that Alpha and Beta are the only two nations in the world, at the equilibrium world price:

Beta will export steel and Alpha will import steel.

Explanation:

a) Data and Calculations:

Domestic and World Market for Steel

Alpha                   Beta           World Market

Qs    P      Qd       Qs    P      Qd       Qs    P       Qd  

60    5        10       80    5       20      140    5       30

40    4       20       70    4       30       110     4       50

30    3       30       60    3       40       90     3       70

25   2.50  35       55    2.50  45       80    2.50  80

20   2       40       50    2       50        70    2       90

10   1       50        40    1        60       50     1       110

b) In the world market, equilibrium will occur at a price of $2.50, when the quantity supplied and demanded will be 80.  At this equilibrium price of $2.50, Alpha will supply 25 units, and Beta will supply 55 units.  Alpha will demand 35 units, and Beta will demand 45 units.  This implies that Beta will supply more than its demand for steel, while Alpha will supply less.  Therefore, Beta will export steel and Alpha will import steel.

4 0
3 years ago
For the Dividend Growth Model, the equation can be written as follows: P0 = =D1/(RE – g). How can this equation be rearranged?
zmey [24]

Answer:

C) RE = D1/P0 + g

Explanation:

The formula above is the cost of retained earnings or the cost of equity.

The first portion of the formula (D1/P0) is known as dividend yield which is simply dividend divided by price.

The second part(g) is known as the growth rate of dividends.

The initial formula is rearranged thus:

P0=D1/(RE – g)

P0*(RE – g)=D1

RE – g=D1/P0

RE=D1/P0+g

4 0
3 years ago
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