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3 years ago

The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find ______.

Business

1 answer:

MAVERICK [17]3 years ago

4 0

Answer:

overhead applied to the job.

Explanation:

The formula to determine the predetermined overhead rate is given below:

Predetermined overhead rate is

= Estimated manufacturing overhead ÷ estimated activity level

Now when the predetermined overhead rate calculated after that we multiplied the rate with the actual allocation base in order to determine the applied overhead to the job

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All of the following statements related to preparation of the statement of cash flows under U.S. GAAP and IFRS are true except:

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Answer: IFRS permits the classification of cash outflows for interest expense under operating or financing based on which one results in better cash flows from operating activities.

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3 years ago

What are the criteria for distinguishing between a deductible expense and a capital expenditure?

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The criteria for distinguishing between whether an expenditure is a capital item or a deductible expense is the useful life of the item.

If the purchase is going to be used and no longer have value at the end of the reporting period it is an expense for that period. If the item is a capital item it is going to have a longer useful life. In this case the item is depreciated over its useful life, assigning an expense amount to each accounting period that the item has value.

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3 years ago

Assume that the supply curve for corn is upward-sloping. in the market for corn, a primary input in the production of ethanol, t

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............... total surplus INCREASES when the price of ethanol increases. When the supply curve for a product is upward sloping, it indicates that more of that product is been produced. Thus, in the question given more of corn is been produced, if the price of ethanol increases, then total surplus will also increase. Total surplus is the summation of the consumer and producer surplus.

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3 years ago

If your dad wanted to purchase a new life insurance policy, which would you recommend and why?

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Answer:

I would recommend Ladder.

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3 years ago

On January 1, 2018, an investor company acquired 30% of an investee company’s common stock for $600,000. As a result of this tra

djverab [1.8K]

Answer:

$642,000

Explanation:

the journal entries required to record these transactions under the equity method are:

January 1, 2018, investment in ABC company

Dr Investment in ABC company 600,000

Cr cash 600,000

December 31, 2018, dividends received from ABC company

Dr Cash 15,000

Cr Investment in ABC company 15,000

December 31, 2018, ABC company reports net income

Dr Investment in ABC company 36,000

Cr Investment revenue 36,000

December 31, 2019, dividends received from ABC company

Dr Cash 15,000

Cr Investment in ABC company 15,000

December 31, 2019, ABC company reports net income

Dr Investment in ABC company 36,000

Cr Investment revenue 36,000

The balance of the investment in ABC company account = $600,000 + $36,000 + $36,000 - $15,000 - $15,000 = $642,000

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3 years ago