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Hunter-Best [27]
3 years ago
9

The master budget of Sheridan Company shows that the planned activity level for next year is expected to be 50000 machine hours.

At this level of activity, the following manufacturing overhead costs are expected: Indirect labor $720000 Machine supplies 180000 Indirect materials 150000 Depreciation on factory building 90000 Total manufacturing overhead $1140000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of
Business
1 answer:
barxatty [35]3 years ago
6 0

Answer:

$1,350,000

Explanation:

Calculation to determine the total manufacturing overhead costs

First step is to calculate the Variable overhead

Variable overhead= $720,000 + $180,000 +$150,000

Variable overhead=$1,050,000

Second step is to calculate Unitary variable overhead

Unitary variable overhead= $1,050,000/50,000

Unitary variable overhead= 21

Now let calculate the total manufacturing overhead costs

For 60,000 units:

Total Manufacturing Overhead Costs = 21*60,000 + 90,000

Total Manufacturing Overhead Costs= $1,350,000

Therefore the total manufacturing overhead costs is $1,350,000

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On January 1, 2021, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year, $14,000,000, 6% note. Interes
kari74 [83]

Answer:

If Interest is not Paid yet

Nantucket Ferry

Dr. Interest Expense $840,000

Cr. Interest payable  $840,000

BankOne

Dr. Interest receivable $840,000

Cr.  Interest Income     $840,000

If Interest is Paid

Nantucket Ferry

Dr. Interest Expense    $840,000

Cr. Cash                        $840,000

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Dr.  Cash                       $840,000

Cr.  Interest Income     $840,000

Explanation:

Amount of interest is the expense for Nantucket Ferry and Income for the BankOne on the bond.

As per given data

Amount borrowed  = $14,000,000

Coupon rate = 6%

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