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Nonamiya [84]
3 years ago
9

West Company estimates that overhead costs for the next year will be $3,800,000 for indirect labor and $970,000 for factory util

ities. The company uses machine hours as its overhead allocation base. If 106,000 machine hours are planned for this next year, what is the company's plantwide overhead rate?
Business
1 answer:
nalin [4]3 years ago
3 0

Answer: $45 per machine hour

Explanation:

Company uses machine hours as its overhead allocation base and there were 106,000 machine hours planned.

The overheads are $3,800,000 for indirect labor and $970,000 for factory utilities.

The rate will therefore be;

= Total Overhead / Machine hours

= (3,800,000 + 970,000) / 106,000

= $45 per machine hour

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Medicaid is federal health insurance program for senior citizens regardless
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Lily is planning to sell her home, which she bought seven years ago for a total of $168,000.the property value has increased by
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Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 27,000 units.
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Answer:

Walker Company

a. Merchandise Purchases Budget for the months of July, August, and September:

                                     July             August      September

Sales units                210,000        290,000       290,000

Ending inventory       43,500           43,500         27,000

Goods available      253,500         333,500        317,000

Beginning inventory  31,500           43,500         43,500

Purchases               222,000        290,000       273,500

b. The ratio of ending inventory to the next month's sales = 15% (Ending Inventory/Sales next month * 100)

c. The units budgeted for sale in October = 180,000 units.

Explanation:

a) Data and Calculations:

September ending inventory = 27,000 units

Ending inventory always equal to 15% of budgeted sales for the following month.

                  Sales (Units)    Purchases (Units)

July              210,000             222,000

August        290,000            290,000

September 290,000            273,500

October       180,000

                                     July             August      September      October

Sales units                210,000        290,000       290,000        180,000

Ending inventory       43,500           43,500         27,000

Goods available      253,500         333,500        317,000

Beginning inventory  31,500           43,500         43,500         27,000

Purchases               222,000        290,000       273,500

6 0
3 years ago
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