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Verizon [17]
3 years ago
14

Neadless Marcup, the department store, advertises from time to time that it has a hair salon where that famous stylist, Mr. Dan,

was available for hairstyling. Actually, Mr.Dan is not an employee of Neadless Marcup but merely rents space in the store. Mr.Dan, while trying out his new formula for conditioner on Mrs. Garibaldi, causes all of her hair to completely fall out. From whom may Mrs. Garibaldi recover? Discuss.
Business
1 answer:
rodikova [14]3 years ago
7 0

Answer:

I believe that in this scenario, Mrs. Garibaldi was attracted by Neadless Marcup advertising, therefore, she should be able to recover from both the store and Mr. Dan, the stylist.

If Mrs. Garibaldi was a frequent client of Mr. Dan, then the could not claim to have been attracted by the company's advertisement and could only recover from Mr. Dan.

Explanation:

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5 0
3 years ago
At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year,
andre [41]

Answer:

Part 1

$9.60

Part 2

$11,129

Part 3

Journal 1

Debit : Overheads $172,500

Credit : Equipment lease $ 6,800

Credit : Depreciation on building 19,340

Credit : Indirect labor 90,400

Credit : Utilities 14,560

Credit : Other overhead 41,400

<em>Being overheads incurred</em>

Journal 2

Debit : Work In Process $173,760

Credit : Overheads $173,760

<em>Being overheads applied</em>

Part 4

under-applied overheads is $1,260

Part 5

$636,860

Explanation:

Overhead rate = Budgeted Overheads ÷ Budgeted Activity

                        = $129,600 ÷ 13,500

                        = $9.60

Total cost (Job K456)  = $2,750 + $5,355 + $3,024 = $11,129

Actual Overheads = $ 6,800 + $19,340 + $90,400 + $14,560 + $41,400 = $172,500

Applied overheads = 18,100 x $9.60 = $173,760

Since, Actual Overheads < Applied overheads, overheads have been under-applied. Amount of under-applied overheads is $1,260 ($173,760 - $172,500)

Under-applied overheads are added to cost of goods sold. Therefore, adjusted cost of goods sold will be $636,860 ($635,600 + $1,260)

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2 years ago
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