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ladessa [460]
3 years ago
5

Solid Oak Bureau Company uses job costing. Solid Oak Bureau Company has two departments, Trimming and Finishing. Manufacturing o

verhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information is available:
Estimated amounts Trimming Dept. Finishing Dept.
Direct labor cost $320,000 $400,000
Direct labor hours 25,000 40,000
Manufacturing overhead costs $416,000 $260,00


Actual amounts Trimming Dept. Finishing Dept.
Direct Material requisitioned $22,500 $52,500
Direct Labour cost $35,400 $37,100
Direct Labour hours 5400 5000

What is the predetermined manufacturing overhead rate for the Trimming Department?
a. 77% of direct labor cost
b. 107% of direct labor cost
c.130% of direct labor cost
d. 100% of direct labor cost
Business
1 answer:
Rom4ik [11]3 years ago
7 0

Answer:

c. 130% of direct labor cost

Explanation:

Note : Manufacturing overhead is allocated based on direct labor cost in the Trimming Department.

Where,

Budgeted Overheads are $416,000

Total Direct Labor Cost  are $320,000

Therefore,

Predetermined Overhead Rate = Budgeted Overheads ÷ Total Direct Labor Cost

                                                    = $416,000 ÷ $320,000

                                                    = $1.30 or 130 %      

The predetermined manufacturing overhead rate for the Trimming Department is 130 %  

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Answer:

Value-added packaging

Explanation:

Value-added packaging is self-explanatory, you try to make a packaging that adds more value to the customer. Since every customer will see the package, you can reach them more than traditional media planning. The value itself can vary widely. By making an artistic design, the customer can better impression about the product. A premium looked packaging will show more prestige to the customer. Some creative packaging can efficiently save space while still protecting the product.

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3 years ago
You wish to take an Excel course. You may enroll at one within your school or you may take a community class at the local librar
Paraphin [41]

Answer:

The chosen option (considering enrollment costs and opportunity cost) is:

b) College course.

Explanation:

a) Data and Calculations:

Costs/Benefits

                           College Course          Community Course

Cost                              $2,600                         $1,390

Opportunity costs         -2,080                          2,080

Net costs                         $520                        $3,470

Distance to course      0.40 miles                    16 miles

                                  (walking distance)      (driving distance)

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Number of meetings    16                                 8

b) With the College course option, you will earn $2,080 ($260 * 8) weekdays to offset part of the enrollment cost.  With the Community course option, $2,080 will be lost in opportunity cost, thereby increasing the total costs incurred.  These costs are apart from the driving costs associated with traveling 16 miles to the Community Course at the local library.

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3 years ago
On January 8, Lowrence Co. issued a $60,000, 120-day discounted note to Raines Bank. The discount rate is 8%. Assuming a 360-day
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a. $58,400

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A discounted note, will make the person receive a lesser amount than the amount due at maturity. This way the person who grants the note is receiving interest for borrowing.

<em><u>Calculations</u></em>

principal x discount rate x time = discount

<em><u>Where</u></em> rate and time should be expressed in the same metric IE if the rate is annual express time in portion of years if it is monthly, in months.

60,000 x 0.08 x 120/360 = 1,600

Now, we subtract this amount form the nominal:

nominal - discount = net

60,000 - 1,600 = <u>58,400</u>

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Answer:

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