Answer:
The predetermined overhead rate is closest to $12.10 per hour
Explanation:
Predetermined overhead rate = (Estimated total fixed manufacturing overhead / Estimated direct labor hours)
Predetermined overhead rate =($121,000 / 10,000)
Predetermined overhead rate = $12.10 per hour
Answer:
Debit Credit
Property plant and equipment (Plant) $1,965,166
Cash $1,965,166
Being the cost of construction of plant building
Explanation:
<em>According to International Accounting Standards (IAS) 16, property plants and equipment, the cost of land includes all of the cost necessary to bring and make it ready for the intended use. </em>
The total cost of the plant = 451,000 + 31,900 + 47,156 + 1,349,900 + 85210
= $1,965,166
The journal entry
Debit Credit
Property plant and equipment (Plant) $1,965,166
Cash $1,965,166
<em>Being the cost of construction of plant building</em>
Answer:
d) $5100
Explanation:
Simply calculate per unit labor cost.
This can be done as follows
Per unit labor cost = hours used by unit * per hour rate
So, Cost = 0.1 * 8.50 = $0.85/ labor cost per unit produced.
Now multiply per unit cost with total units budgeted
Total Labor budget = 6000 * 0.85 = $5,100
Hope that helps.
Answer:
does not include inventory as part of the numerator
Explanation:
The acid test ratio is somewhat similar to the current ratio. Both ratios are called liquidity ratio in which the short term assets are converted into cash to pay its short term liabilities. But the only difference in these two is
Current ratio includes current assets and current liabilities
While on the other hand, the acid test ratio or quick ratio include quick asset and current liabilities
Quick asset = Total Current assets - inventory - all other current assets
As inventory takes more time to convert into cash
