Answer:
The correct answer is option (c) $264 underapplied
Explanation:
Given data;
Direct labour hour = 22160
Total Manufacturing overhead cost= $585,024
Actual direct labor hour = 22150
Actual Manufacturing overhead cost = $585024
Calculating the Predetermine overhead rate using the formula;
Predetermined Overhead rate=Total Overhead Cost/Total Direct Labor Hour
Predetermined Overhead rate = $585024/22160
=$26.4 per labor hour
To determine the under-applied amount of overhead cost, we use the formula;
Under−Applied amount= Estimated Overhead Cost*Actual Overhead Cost
Substituting into the formula, we have
(22150*26.4)-585024
Under applied = $ 264
In such a case Shawn's company cannot and should not give out a dividend.
Since the company has just raised money, is growing and profitable and it is becoming hard to keep up with demand, this is the best time for the company to reinvest its profits to:
1. Hire more people/Buy more product
2. Improve processes
3. Use the profits to invest in R&D
4. Use the profits to invest in marketing and promotion
5. Invest in providing better customer service
So no dividend should be given since it can hamper the growth of a young company. The money should be used to grow the company for now and in the future all shareholders can enjoy good dividends.
Power retailers are the stores that rely on their large size and very deep selection to try to dominate the market.
Specialty stores are small, so you can eliminate that option immediately. Department stores are usually found within another store, so that's not correct too. Discounters don't have a very deep selection, they usually sell a lot of various things. Anchor stores are found within malls, so that's incorrect too.
Answer:
a.
Primary sources represent the law itself as interpreted by the statutory, administrative and judicial entities of the government while secondary sources can be generally defined as interpretations of the law done by non-governmental entities.
b.
The type of authority which professional tax research conclusions should be based on are the primary sources.
Explanation:
a.
Primary sources of tax information are documents that are provided directly by an authority usually the government. Primary sources usually carry heavy weight especially when there is a conflict in the understanding of a federal tax law. These sources are often used by law practitioners as a basis in understanding cases of a similar nature. Some examples of primary sources of tax information include; internal revenue code, final and temporary regulations, non-codified federal tax statutes, and judicial decisions on tax matters. In general primary sources represent the law itself as interpreted by the statutory, administrative and judicial entities of the government. They can be used in a case where a tax payer in arguing his or her case about their tax position in a court of law.
Secondary sources of tax information are documents that are provided by information vendors who provide research services, legal analysis and tax professionals. These sources usually rely on the professionalism and experience of individuals who have gained a reputation on tax law for advice and direction. Some examples of secondary sources include; legal periodicals like academic journals, legal analysts, scholars and tax law reporters. Secondary sources can be generally defined as interpretations of the law done by non-governmental entities.
b.
Professional research is usually done to enable one advance in his/her career in order to gain acceptance as an expert in that particular field. For one to join the ranks of a professional, they first need to prove their mastery of the knowledge in that particular profession. In our case, one needs to be aware of the law as provided by an authority. This means that one needs to argue his/her case in reference to the primary sources since these sources carry more weight in terms of understanding and experience as opposed to secondary sources that represent personal views that might be susceptible to bias. On this note, the type of authority which professional tax research conclusions should be based on are the primary sources.
