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.
Answer:
Judy must recognize $4,000 of gross income from the stock for the current year.
True
Explanation:
When you receive stock in lieu of cash for payment for services rendered. you'll first owe income tax based on the value of the stock at that time.
Answer:
a. FV = $1,000,000
rate = 9.7%
n = 40 periods
FVIFA = [(1 + 0.097)⁴⁰ - 1] / 0.097 = 407.9960231
annual savings = $1,000,000 / 407.9960231 = $2,451.00
b. FV = $1,000,000
rate = 9.7%
n = 30 periods
FVIFA = [(1 + 0.097)³⁰ - 1] / 0.097 = 155.4306295
annual savings = $1,000,000 / 155.4306295 = $6,433.74
FV = $1,000,000
rate = 9.7%
n = 20 periods
FVIFA = [(1 + 0.097)²⁰ - 1] / 0.097 = 55.35978429
annual savings = $1,000,000 / 55.35978429 = $18,063.65
