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kirill115 [55]
3 years ago
11

Washburn Company produces earbuds. During the year, manufacturing overhead costs are estimated to be $216,000. Estimated machine

usage is 2,700 hours. The company assigns overhead based on machine hours. Job No. 551 used 90 machine hours.
Required:
a. Compute the predetermined overhead rate.
b. Determine the amount of overhead to allocate to Job No. 551.
c. Prepare the entry to assign overhead to Job No. 551 on January 15.
Business
1 answer:
Snezhnost [94]3 years ago
5 0

Answer:

1. Predetermined Overhead Rate = Manufacturing overhead costs  / Machine Hours

Predetermined Overhead Rate = $216,000/2,700 hours

Predetermined Overhead Rate = $80 per machine hour

2. Allocated overheads =Predetermined Overhead Rate * Machine hours used by Job 551

Allocated overheads = $80 * 90 machine hour

Allocated overheads = $7,200

3. Date     Description                             Debit     Credit

 15/01     Work In Progress Inventory    $7,200      

                   Manufacturing overhead                   $7,200

               (To record allocation of overheads towards Job 551)

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Answer:

The auditor should issue a qualified report for the departure from generally accepted accounting principles.

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3 years ago
In the long run, a monopolistically competitive firm will earn: (A) normal profits because economic profits will attract new fir
enot [183]

Answer: Option (A) is correct.

Explanation:

Correct Option: Normal profits because economic profits will attract new firms and there are no entry restrictions.

In a monopolistically competitive market, firms will earn an economic profit in the short run, so new firms attracted with these profits and decided to enter into the market in the long run.

There is no barriers on entry and exit of the firms in the monopolistically competitive market. When new firms enters into the market, as a result supply of differentiated products increases.

This causes the firm's market demand curve to shift leftwards. It will continue shifting to the left in the firm market demand curve till the point where it is nearly tangent to the average total cost curve.

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3 years ago
Customer World expects the credit card company to deposit funds in their business account for their sales where a customer uses
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Answer:

$88.75

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I hope the answer is helpful.

Thanks for helping.

3 0
3 years ago
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams est
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Explanation:

Computation for the amount of under- or overapplied overhead for the year.

First step is to calculate the

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Predetermined Overhead rate = Estimated overhead/direct labor estimated

Let plug in the formula

Predetermined Overhead rate= 358,900/227,000

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3 years ago
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ANTONII [103]

Answer:

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