Answer:
Predetermined manufacturing overhead rate= $42 per direct labor hour
Explanation:
Giving the following information:
Estimated manufacturing overhead= $924,000
Estimated direct labor hours= 22,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 924,000/22,000
Predetermined manufacturing overhead rate= $42 per direct labor hour
Adjusting entry for Insurance Expense:
In the given case, the insurance was purchased on July 1 of the same year for one year of insurance coverage, with coverage beginning on that date. It means the Insurance expense for the current year shall be calculated for the period (July 1 to Dec. 31) =6 Months
The Total amount paid for one year was $6,000. So the amount of expense for the current year shall be 6000*6/12 = $3,000
Hence the adjustment entry shall be made for $3,000 Insurance expense. We shall debit Insurance expense and Credit the Prepaid Insurance. The
Adjusting Journal entry as on Dec. 31 shall be as follows:
Insurance Expense Debit $3,000
Prepaid Insurance Credit $3,000
Answer:
Multiple-step income statement for the year ending December 31, year 1
Sales $275,200
Cost of Goods Sold <u>($185,000)</u>
Gross Profit $90,200
Operating Expenses:
Administrative Expense ($35,000)
Selling expenses <u>($55,000)</u>
General Expense <u>($45,000)</u>
Operating Income ($44,800)
Non-Operating Revenue <u>$105,000</u>
Operating Income before tax $60,200
Income taxes <u>($25,000)</u>
Operating Income after Tax <u>$35,200</u>
Explanation:
Multi-step Income statement segregate the Operating Income and Expenses from non operating Income and Expense. It shows the gross profit and net operating income separately.
Answer:
The answer is: E. all of the above
Explanation:
An economy is in macroeconomic equilibrium when the total spending in the economy (aggregate expenditures) equals the gross domestic product.
For example, if aggregate expenditure is lower than the GDP, then inventories will rise (due to unsold goods), leading to a decrease in the GDP and higher unemployment.
On the other hand, when aggregate expenditures are higher than the GDP, then inventories will shrink, leading to an increase in the GDP and lower unemployment.