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Elden [556K]
2 years ago
15

Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following dat

a refer to operations expected for next month. A1 B2 Total Revenue $ 170,000 $ 510,000 $ 680,000 Direct material 65,000 130,000 195,000 Direct labor 54,000 128,250 182,250 Overhead: Direct-material related 42,900 Direct-labor related 40,095 Required: Channing uses a two-stage cost allocation system, It uses direct-material costs to allocate direct-materials related overhead and direct-labor costs to allocate direct-labor related overhead costs. a. Compute the direct-material related overhead rate for next month. b. Compute the direct-labor related overhead rate for next month. c. What is the total overhead allocated to product A1 next month
Business
1 answer:
castortr0y [4]2 years ago
8 0

Answer:

Channing Corporation

a. The direct-material related overhead rate = $0.22

b. The direct-labor related overhead rate = $0.22

c. The total overhead allocated to product A1 next month = $26,100

Explanation:

a) Data and Calculations:

Products                          A1             B2     Total

Total Revenue      $ 170,000 $ 510,000   $ 680,000

Direct material           65,000   130,000        195,000

Direct labor                54,000   128,250        182,250

Overhead:

Direct-material related                                   42,900

Direct-labor related                                        40,095

Total overhead                                             $82,995

a. Direct-material related overhead rate:

Overhead = $42,900

Total direct materials costs = $195,000

Overhead rate = $42,900/$195,000 = $0.22

b. Direct-labor related overhead rate:

Overhead = $40,095

Total direct labor costs = $182,250

Overhead rate = $40,095/$182,250 = $0.22

c. Total overhead allocated to product A1:

Direct materials related overhead = $14,300 ($0.22 * $65,000)

Direct labor related overhead =           11,800 ($0.22 * $54,000)

Total overhead allocated =               $26,100

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1 year ago
Sheffield Corp. started the year with total assets of $220000 and total liabilities of $130000. During the year the business rec
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Answer:

Net Income for the year is $95,000.

Explanation:

The income which is calculated by deducting all the related expense from the revenue even after interest and taxes. Net Income is the amount which is available to distribute amount the stockholders, either preferred or common.

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6 0
3 years ago
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Defining a business in terms of goods and services rather than in terms of the benefits customers seek is called _____.
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3 years ago
Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.)
Mariulka [41]

Answer:

<u>GOMEZ CORPORATION </u>

<u>Comparative Income Statements</u>

<u> For Years Ended December 31</u>

<u>                                           Current Year                     Prior Year</u>

<u>                                               $                 %                          $                      % </u>

Sales                                  $785,000      100                    $640,000         100

Cost of goods sold                568,100     72.4                     288,800         45.1

Gross profit                            216,900     27.6                     351,200         54.9

Operating expenses                130,400    16.6                     221,600         34.6

Net income                               $86,500   11.0                       $129,600     20.3

The figure used to calculate the percentages is that of sale revenue. Each figure is expressed as a percentage of sales to determine the percent of expenses , profits etc.

5 0
3 years ago
Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $63,000 for $58,523 on January 1, 2018. The market interest r
Mamont248 [21]

Answer:

Please refer to the below for Journal entries

Explanation:

The journal entries are seen below

1. Cash A/c Dr $58,523

Discount on bond payable A/c Cr $4,477

To bonds payable A/c Cr $63,000

(Being the issuance of bond that is recorded)

2. Interest expense A/c Dr $2,048

To discount payable A/c Cr $158

To cash A/c Cr $1,890

(Being the first interest payment that is recorded)

Note:

Interest expense

= $58,523 × 7% × 6 months ÷ 12

= $2,048

Cash

= $63,000 × 6% × 6 months ÷ 12

= $1,890

4 0
3 years ago
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