Answer:
Predetermined manufacturing overhead rate= $9.8 per machine hour
Explanation:
Giving the following information:
Machine-hours= 50,000
Manufacturing overhead= $490,000
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= 490,000/50,000= $9.8 per machine hour
Answer:
$249,500.
Explanation:
The companny applied 234,000 overhead
it was underapplied by 15,500
This means the actual overhead cost were higher than the amount applied by the company. Actual overhread is the sum of both concepts.
234,000 + 15,500 = 249,500
the estimated overhead for the year was used to determinatethe rate, but is has no relevance to check for applied or underapplied, so we must ignore that data.
Answer:
The correct answer is letter "D": direct material and conversion costs are traced to each batch of product produced.
Explanation:
The operation-costing system is based on the principle that in large entities where manufacturing is almost the same for all products, costs can be assigned to units produced and the result of adding all those costs should equal the costs assigned in groups of units produced or batches.
<em>Conversion costs are a combination of direct labor and manufacturing overhead costs. Conversion costs are traced by adding the direct costs to the conversion costs of an operation day by the number of units produced in the day.</em>
Answer:
We need to save $2,964 each year until retirement to reach our retirement goal.
Explanation:
First lets assume that we have retired, we now need to find the present value of all our future cash flows, which means we need to find out the present value of 40,000 every year. We will input the following in a financial calculator.
FV=0
PMT= -40,000
I=6
N=20
Compute PV= 458,796
This PV is what present amount of the future payments we will need at the start of our retirement which is after 40 years. This represents the amount of money we need to have at the end of 40 years in order to have enough for our retirement. Which means we can use this as the future value. Now we need to find how much do we have to save each year so we have 458,796 at the end of 40 years.
In a financial calculator we will input the following.
FV= 458,796
PV=0
I=6
N=40
Compute PMT= 2,964
We need to save $2,964 each year until retirement to reach our retirement goal.
Answer:
Debit Accounts Receivable, credit Allowance for Doubtful Accounts.
Explanation:
To record the collection of accounts receivable previously written off when using the allowance method, the first step is to debit Accounts Receivable, and then credit Allowance for Doubtful Accounts. This purpose of this to reverse the already written off amount.
The next step after that is to complete the entries by debiting Cash, and crediting the Accounts Receivable to record the cash collection in respect of previously written off accounts receivable.
