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goblinko [34]
3 years ago
7

Daguio corporation uses direct labor hours in its predetermined overhead rate. at the beginning of the year, the total estimated

manufacturing overhead was $224,580. At the end of the year actual direct labor hours for the year were 18,200 hours manufacturing overhead for the year was under applied by 12,100, and the actual manufacturing overhead was $219,580. The predetermined overhead rate for the year must have been closest to:_____
Business
1 answer:
Vesnalui [34]3 years ago
3 0

Answer:

$11.40 per direct labor-hour

Explanation:

Calculation for predetermined overhead rate for the year must have been closest to

First step is to calculate the Manufacturing overhead applied using this formula

Manufacturing overhead applied = Actual overhead - Underapplied overhead

Let plug in the formula

Manufacturing overhead applied=$219,580 - $12,100

Manufacturing overhead applied= $207,480

Now let calculate the Predetermined overhead rate using this formula

Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total amount of the allocation base

Let plug in the formula

Predetermined overhead rate = $207,480 / 18,200 direct labor-hours

Predetermined overhead rate = $11.40 per direct labor-hour

Therefore The predetermined overhead rate for the year must have been closest to:$11.40 per direct labor-hour

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Impala is currently producing 100 units of a necessary component part by incurring $42,000 in direct materials, $8,750 in direct
photoshop1234 [79]

Answer:

If Impala decides to buy from the external source , it would then save the fixed of $1,750

Decision: Impala should be buy from the external source

Explanation:

<em>To determine the appropriate course of action, we shall determine whether there would be a net savings in cash flow as a result of purchasing externally or not.</em>

The relevant cash flows figures include:

  1. Internal variable cost of production
  2. External purchase price
  3. Savings in internal; fixed cost as result of buying outside

Variable cost of internal production = 42,000 + 8,750 + 15,750 = 66,500

Increase in variable cost if purchased externally = 66500 - 66500 = 0

If Impala decides to buy from the external source , it would then save the fixed of $1,750

Decision: Impala should be buy from the external source

6 0
3 years ago
For example, the sticky-wage theory asserts that output prices adjust more quickly to changes in the price level than wages do,
djverab [1.8K]

Answer:

The firm's output prices will increase, because will the firm can quickly adjusts the prices of goods to the new price level of 110, it will not have to do so with wages, since wages are fixed by a year contract.

This will result in comparatively lower labor costs with higher prices at the same time, which will likely result in more economic and accounting profit for the firm.

The opposite effect will be felt by workers, whose wage is not keeping up with inflation, meaning that their income is losing purchasing power.

8 0
3 years ago
When the market rate is 12%, a company issues $50,000 of 9%, 10-year bonds and pay interest semiannually. When the bonds mature,
olya-2409 [2.1K]

When the market rate is 12%, a company issues $50,000 of 9%, 10-year bonds and pay interest semiannually. When the bonds mature, the issuer records the journal entry of its payment of principal with a debit to cash in the amount of $50,000.

<h3>What is a journal entry?</h3>

A systematic way of making and maintaining the record of the financial transactions in the journal books of an organization, with a proper narration of the same, is known as a journal entry.

Hence, option C holds true regarding the journal entry.

Learn more about a journal entry here:

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8 0
2 years ago
Your promotional budget for this year is $200 for personal selling, $400 for sales promotion, $1000 for advertising, and $700 fo
9966 [12]
Your total promotion budget would be 2300 i guess
5 0
3 years ago
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occ
Degger [83]

Answer:

1.Occupancy days $3,760

Electrical costs $10,528

Variable cost=2.80

Fixed cost=$650

2. Seasonal factors

Systematic factors

Number of days

Explanation:

1.Calculation using high and low method for both Occupancy days and Electricity cost

Occupancy Electrical

Days Costs

High activity level 4,410 12,998

Low activity level 650 2,470

Change 3,760 10,528

Calculation for Variable cost of electricity per occupancy-day.

Using this formula

Variable cost= Electricity cost/Occupancy days

Let plug in the formula

Variable cost=10,528/3,760

Variable cost=2.80

Calculation for Fixed cost of electricity per month

Fixed cost=2,470-(650*2.80)

Fixed cost=2,470-1,820

Fixed cost=$650

2. Factors that are likely to affect the variation in electrical costs from month to month will include the following:

Seasonal factors

Systematic factors

Number of days

Seasonal factors can either be winter or summer.

Systematic factors include either having guests, To switch off fans as well as lights.

Number of days are days that are present in a month.

6 0
3 years ago
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