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Sloan [31]
2 years ago
14

Terrence Industries charges manufacturing overhead to products by using a predetermined application rate, computed on the basis

of labor hours. The following data pertain to the current year:
Budgeted manufacturing overhead $1,800,000
Actual manufacturing overhead 1,810,000
Budgeted labor hours 60,000
Actual labor hours 61,500

What is the correct status of manufacturing overhead at year-end?
Business
1 answer:
puteri [66]2 years ago
5 0

Answer:

See below

Explanation:

First, we need to get the predetermined rate

Predetermined rate = Cost of manufacturing overhead / Cost driver

= $1,800,000/60,000

= $30

We will now calculate the application.

Actual labor hours × rate

= 61,500 × $30

= $1,845,000

We will now compare actual with overhead cost

= Applied Overhead cost - Actual manufacturing overhead

= $1,845,000 - $1,810,000

= $35,000

The above is an over application of overhead cost because the cost applied exceed the actual cost.

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Jordan deposits $100 into a savings account that pays him with a compound interest rate of 3%. Justin deposits $100 into an acco
ipn [44]

Answer:

Jordan

Explanation:

Given that :

JORDAN :

Principal (P) = $100

Compound interest rate (r) = 3%

AMOUNT AFTER 3 YEARS:

A = P(1 + r/n)^nt

n = number of times interest is applied per period

t = time ; A = final amount

A = 100(1 + 0.03)^3

A = 100(1.03)^3

A = 100(1.092727)

A = $109.2727

JUSTIN :

Principal = $100

SIMPLE INTEREST interest rate = 3%

A = P(1 + rt)

A = 100(1 +(0.03 * 3))

A = 100(1 + 0.09)

A = 100(1.09)

A = 1.09 * 100

A = final amount after 3 years = $109

4 0
3 years ago
Identify each of the statements regarding goldsmiths and the evolution of banks as either true or false. Receipts for gold depos
AlladinOne [14]

Answer:

1. False

2. false

3. True

4. False

5. True

Explanation:

Receipts for gold deposits were nontransferable. (False)

Because what became paper money issued by goldsmiths depended on the amount of gold deposited, goldsmiths could not actually create money. (False)

The earliest banks backed deposits 100% with gold. (True)

Early banks' ability to create money was limited only by the goldsmiths' prudence and judgement. (False)

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5 0
3 years ago
Why might a company choose a process costing system over a job order costing system? How are the two systems similar, and how ar
ch4aika [34]

As organizations that use work order costing maintain track of materials and other resources for each project item, this method often necessitates more thorough record keeping than a process costing. However, in systems that use process costing, each production or process department has its own inventory account and aggregates expenses.

<h3>How are the 2 systems similar?</h3>
  • Both approaches serve the same fundamental objectives: to provide a framework for calculating unit product cost and to assign material, labor, and overhead costs to items.
  • The same fundamental manufacturing accounting principles are used by both systems, including production overhead, raw materials, work in progress, and finished goods.
  • In both systems, the cost flow through the manufacturing accounts is essentially the same.
<h3>What are the differences between the two?</h3>

There are two reasons why work order costing and process costing differ from one another. The first is that a process costing system has a flow of units that is essentially continuous, and the second is that these units are interchangeable. Since each order is just one of many that are filled from a continuous flow of almost identical units from the manufacturing line, it makes no sense to try to identify materials, labor, and overhead costs with a specific order from a customer (as we do with job order costing). Under process costing, costs are accumulated by the department as opposed to orders, and they are then uniformly distributed to all units that go through the department over the course of a time period.

The fact that process costing does not employ the job cost sheet since its emphasis is on departments is another distinction between the two costing methodologies. For each department that works on items, a production report is created as opposed to a task cost sheet. The production report fulfills a number of purposes. It gives a summary of how many units pass through a department in a given time frame and computes unit costs. Additionally, it displays the expenses incurred by the department and the decision made regarding such expenses. In a process costing system, the department production report is a crucial document.

Therefore, above are all the differences and similarities between the 2 systems.

For more information on the Costing system, refer to the given link:

brainly.com/question/24516871

#SPJ4

4 0
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