Answer:
Purchases for February would be: $46,500
Explanation:
Prepare a Purchases Budget to find the Purchases for February.
<u>Purchases Budget for February</u>
Budgeted Cost of Sales $45,000
Add Budgeted Closing Inventory ($45,000 × 30%) $13,500
$58,500
Less Budgeted Opening Inventory ($12,000)
Budgeted Purchases $46,500
Amount of the initial investment to find the increase expressed as a rate. For example, to figure how long it takes $16,000 to grow to $24,000, divide $24,000 by $16,000 to get 1.5.
Answer:
The amount of overhead applied during the year is $2,680,000
Explanation:
For computing the amount of overhead applied, the following computations are required which is shown below:
1. Compute the overhead cost per machine hour:
The formula is shown below:
= Annual overhead cost ÷ machine hours
= $2,400,000 ÷ 300,000
= $8
Now the amount of overhead applied equals to
= Actual machine-hours × overhead cost per machine hour
= 335,000 hours × $8
= $2,680,000
The possible problem of a free-rider befalls when those who avail of resources, well-founded, or services do not pay for them, which leads to an underprovision of those goods or services. For example, a free-rider may often ask for accessible parking lots from the ones who have already paid for them, in order benefit from free parking.
