1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stealth61 [152]
2 years ago
5

g The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $

4,400 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800. Therefore, the company's overhead application rate is: Group of answer choices 200% of direct labor cost. 50% of direct labor cost. 80% of direct labor cost. 40% of direct labor cost. 300% of direct labor cost.
Business
1 answer:
poizon [28]2 years ago
6 0

Answer:

200% of direct labor cost

Explanation:

The computation of the company overhead application rate is shown below;

But before that overhead cost would be determined

GIP = Direct material + Direct labor + Overhead

$4,400 = $2,000 + $800 + Overhead

So,

Overhead = $4,400 - $2,000 - $800

= $1,600

Now the overhead application rate is

= overhead ÷ direct labor cost

= $1,600 ÷ $800 × 100

= 200%

You might be interested in
Match each economic scenario with the correct economic term.
kkurt [141]

Answer:

The answer is:

1 - Underutilization

2 - Efficiency

3 - Unattainability

Explanation:

Efficiency in economics means a situation in which all resources are optimally distributed to serve each entity in the best way while minimizing waste and inefficiency.

Underutilization in economics is also a a situation in which lesser resources are being utilized than the economy is capable of utilizing.

Unattainability is a situation in which what one to accomplish or achieve is not possible.

1 - Underutilization

2 - Efficiency

3 - Unattainability

6 0
3 years ago
What are the first steps to start business
Lorico [155]

Answer:

finding a market for your product then finding a marketing strategy then get your assets set up

Explanation:

5 0
3 years ago
Marginal cost is equal to the options:
Nadusha1986 [10]

Answer:

B) change in average total costs divided by the change in output.

Explanation:

Marginal cost is the extra cost incurred for the production of an additional unit of output after breakeven.  At the breakeven point, fixed costs have been absorbed. Any additional production will incur variable costs . Marginal costs will, therefore, comprise direct labor, direct material, and a small proportion of fixed costs, such as administration and selling costs.

The calculate marginal cost, divide the total change in costs by the change in the product output. i.e.

Marginal costs = change in cost / change in output.

Marginal cost is compared with marginal revenue when deciding whether to increase production or not.

7 0
3 years ago
The Karns Oil Company is deciding whether to drill for oil on a tract of land that the company owns. The company estimates the p
Vika [28.1K]

Answer:

Investing today is a better option because it has a better NPV of $2.3398 million

Explanation:

Given data :

<u>For Today's Investment </u>

Initial capital investment = $4 million

positive cash flow = $2 million

period of cash flow = 4 years

project cost of capital = 10%

To get the value of This option we have to determine the NPV of this option

NPV = PMT * [\frac{1-(1+r)^-4}{r} ] - initial cash flow   ----------- (1)

PMT = $2 million

r = 10%

initial cash flow = $4 million

Equation 1 becomes

NPV = (2 * 3.1699 ) - 4

        = $6.3398 - $4 =  $2.3398 million

<u>For later investment ( 2 years )</u>

initial capital investment = $5 million

90% chance of positive cash flow = $2.1 million

10% chance of positive cash flow = $1.1 million

project cost of capital = 10%

NPV value for a cash flow of $1.1 million

NPV = PMT * [\frac{1-(1+r)^-4}{r} ] - initial cash flow

PMT = $1.1 million

initial cash flow = $5 million

r = 10%

Hence NPV = ($1.1 * 3.1699 ) - $5 million

                    = $3.48689 - $5 million

                    = - $1.51311  

therefore the present NPV =   - $1.51311 / 1.21 =  -$1.25 million  ( therefore no investment will be made )

NPV value for a cash flow of $2.1 million

NPV = PMT * [\frac{1-(1+r)^-4}{r} ] - initial cash flow

PMT = $2.1 million

initial cash flow = $5 million

r = 10%

hence NPV = ($2.1 * 3.1699 ) - $5 million

                   = $6.65679 - $5

                   = $1.65679

therefore the present NPV = $ 1.65679 / 1.21 = $1.369 million

The Expected NPV value of later investment ( after 2 years )

= $0 * 10% + $1.369 * 90%

= $1.2321 million

4 0
3 years ago
The Rock Company produces basketballs. It incurred the following costs during the year.
AVprozaik [17]

Answer:

Total cost under absorption costing= $81,400

Explanation:

<u>The absorption costing method includes all costs related to production, both fixed and variable. </u>The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

Direct materials $14,400

Direct labor $25,600

Fixed manufacturing overhead $12,000

Variable manufacturing overhead $29,400

Total cost under absorption costing= $81,400

6 0
2 years ago
Other questions:
  • Which of the following is the number of people receiving Social Security payments? 55 million 58 million 66 million 71 million
    11·2 answers
  • Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of
    14·1 answer
  • For the month of october, janus corporation used $30,000 worth of direct materials in production and incurred direct labor costs
    12·1 answer
  • ​if a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this would be an
    5·1 answer
  • Jamal worked for a delivery company, and he was driving sometimes up to 10 hours a day. One afternoon, on the way back from maki
    13·1 answer
  • When a penalty is accepted with less than two minutes remaining in either half, the offended team will have the option to start
    10·1 answer
  • Investing in a global stock fund is a good idea to
    11·1 answer
  • Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme
    7·1 answer
  • Assuming no change in the nominal wage and a significant increase in human capital, the output per worker will
    12·1 answer
  • At the beginning of the current period, Shamrock Corp. had balances in Accounts Receivable of $187,800 and in Allowance for Doub
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!