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GuDViN [60]
2 years ago
7

Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Fact

ory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning August 1 $1,516,700 $1,074,600 Estimated direct labor hours for year 29,850 Estimated machine hours for year 52,300 Actual factory overhead costs for August $124,880 $98,910 Actual direct labor hours for August 2,700 Actual machine hours for August 4,350 Required: a. Determine the factory overhead rate for Factory 1. b. Determine the factory overhead rate for Factory 2. c. Journalize the Aug. 31 entries to apply factory overhead to production in each factory. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. d. Determine the balances of the factory overhead accounts for each factory as of August 31, and indicate whether the amounts represent
Business
1 answer:
Korolek [52]2 years ago
7 0

Answer and Explanation:

The computation is shown below:

a. Factory overhead rate for Factory 1 is

= Estimated factory overhead cost ÷ Estimated machine hours for the year

= $1,516,700 ÷ 52,300

= $29

b. Factory overhead rate for Factory 2 is

= Estimated factory overhead cost ÷ Estimated direct labor hours for the year

= $1,074,600 ÷ 29,850

= $36

c. The journal entry is shown below:-

1. Work in process Dr, $126,150 (4,350 × $29)  

              To Factory overhead $126,150

(To record the factory overhead)

2. Work in process Dr, $97,200 (2700 × $36)  

                To Factory overhead $97,200

(To record the factory overhead)

d. The balance of the factory overhead amounts for each factory as follows:

For Factory 1

= $124,880 - $126,150

= $1,270 Credit Overapplied

For Factory 2

= $98,910 - $97,200

= $1,710 Debit Underapplied

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Bond P is a premium bond with a coupon rate of 9 percent. Bond D has a coupon rate of 5 percent and is currently selling at a di
Firdavs [7]

Answer:

a) 7% as their market price will adjsut to give the same yield as the market

b) bond P = -10.17

 bonds D  = 10.07

Explanation:

we have to calcualte the price variation of the bonds from now (10 years to maturity) to next year (9 years)

Bond P

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 90.000

time 10

rate 0.07

90 \times \frac{1-(1+0.07)^{-10} }{0.07} = PV\\

PV $632.1223

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   10.00

rate  0.07

\frac{1000}{(1 + 0.07)^{10} } = PV  

PV   508.35

PV c $632.1223

PV m  $508.3493

Total $1,140.4716

then, at time = 9

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 90.000

time 9

rate 0.07

90 \times \frac{1-(1+0.07)^{-9} }{0.07} = PV\\

PV $586.3709

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   9.00

rate  0.07

\frac{1000}{(1 + 0.07)^{9} } = PV  

PV   543.93

PV c $586.3709

PV m  $543.9337

Total $1,130.3046

Capital loss: 1,130.30 - 1,140.47 = -10.17

We repeat the process for bond D

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 50.000

time 10

rate 0.07

50 \times \frac{1-(1+0.07)^{-10} }{0.07} = PV\\

PV $351.1791

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   10.00

rate  0.07

\frac{1000}{(1 + 0.07)^{10} } = PV  

PV   508.35

PV c $351.1791

PV m  $508.3493

Total $859.5284

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 50.000

time 9

rate 0.07

50 \times \frac{1-(1+0.07)^{-9} }{0.07} = PV\\

PV $325.7616

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   9.00

rate  0.07

\frac{1000}{(1 + 0.07)^{9} } = PV  

PV   543.93

PV c $325.7616

PV m  $543.9337

Total $869.6954

Capital gain: 869.70 - 859.53 = 10.07

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3 years ago
Malcolm has been researching reports generated by government agencies and the local chamber of commerce. What kind of research i
Yanka [14]
The answer is D personal
3 0
3 years ago
Oak Interiors is owned and operated by Fred Biggs, an interior decorator. In the ledger of Oak Interiors, the first digit of the
Kipish [7]

Answer:

Oak Interiors

Matching each account number with its most likely account in the list:

12 - Cash

13 - Accounts Receivable

17 - Land

21 - Accounts Payable

31 - Fred Biggs, Capital

32 - Fred Biggs, Drawing

41 - Fees Earned

51 - Supplies Expense

52 - Wages Expense

53 - Miscellaneous Expense

Explanation:

a) Data and Classifications:

Digits and Accounts:

1—assets

12 - Cash

13 - Accounts Receivable

17 - Land

2—liabilities

21 - Accounts Payable

3—owner’s equity

31 - Fred Biggs, Capital

32 - Fred Biggs, Drawing

4—revenues

41 - Fees Earned

5—expenses

51 - Supplies Expense

52 - Wages Expense

53 - Miscellaneous Expense

b) The chart of accounts of Oak Interiors is where the financial accounting is organized into five major categories.  These categories are called accounts.  They include assets, liabilities, equity, revenue, and expenses.  This implies that all business transactions that are recorded in accounts are summarized under any of these five major headings.

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2 years ago
One truth about using color in magazine advertising is?
Volgvan

Answer:

The correct answer is letter "A": Color ads are considered better suited for attracting and holding attention.

Explanation:

Magazines are mediums of communication targeted to a special sector of the market. Examples of magazines are <em>sports magazines, auto magazines, computer science and electronics magazines, </em>and <em>cuisine magazines</em> to mention a few.  

As magazines are published periodically it is important that the advertisement displayed captures the attention of the audience. To do so, magazines tend to use color promotions where readers can see the products being promoted more detailed than by just displaying them in black and white.

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3 years ago
The least expensive type of life insurance is _____. whole-life insurance term insurance endowment life insurance limited-paymen
lutik1710 [3]
I believe the answer is: Term insurance

Term insurance is significantly cheaper compared to other type of insurance because it only cover risk plan without considering potential return in the future.
The amount of term insurance usually paid at a fixed rate on a limited period of time.
3 0
3 years ago
Read 2 more answers
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