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slavikrds [6]
3 years ago
5

Rapier Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined ov

erhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated jointer. Additional information is provided below for the most recent month:
Estimates at the beginning of the month:
Estimated total fixed manufacturing overhead $15,580
Capacity of the jointer 380hours
Actual results:
Sales $60,200
Direct materials $17,800
Direct labor $16,470
Actual total fixed manufacturing overhead $15,580
Selling and administrative expense $9,600
Actual hours of jointer use 360hours

The cost of unused capacity that would be reported as a period expense on the income statement prepared for internal management purposes would be closest to:

a. $0
b. $5,980
c. $820
d. $6,800
Business
1 answer:
egoroff_w [7]3 years ago
5 0

Answer:

c. $820

Explanation:

The computation of the cost of unused capacity is given below:

But before that following calculations need to be done

The Predetermined overhead rate is

= Manufacturing overhead  ÷ capacity of jointer

= $15,580 ÷ 380

= $41 per hour

Given that

Actual use of capacity = 360 hours

Now

Unused hours is

= 380 - 360

= 20 hours

And, finally the cost of unused capacity is

= 20 × $41

= $820

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photoshop1234 [79]

Answer:

True

Explanation:

Firms and organisations need to register their companies as this helps them to avoid any problem related to the company's name and trademark in the future. Furthermore, trademark protection prevents another firm to copy another firms name, logo or tagline which can create confusion in the minds of potential buyers. Trademark protection costs a very minimal amount but protects a company's name.

6 0
3 years ago
Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per un
Elenna [48]

Answer:

Fortune, Inc.

Budgeted Income Statement

For the first quarter, 202x

                                   January         February        March           Total

Sales revenue           $1,125,000     $1,375,000    $1,250,000   $3,750,000

Cost of goods sold   $630,000      $770,000       $700,000     $2,100,000

Gross profit               $495,000       $605,000      $550,000     $1,650,000

S&A expenses:

  • Rent                    $14,000          $14,000          $14,000        $42,000
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  • Sales comm.      $90,000         $110,000        $100,000      $300,000
  • Advertising        $168,750        $206,250       $187,500      $562,500
  • Depreciation      $40,000         $40,000         $40,000       $120,000

EBIT                            $107,250        $159,750        $133,500      $400,500

Income taxes              $32,175           $47,925         $40,050       $120,150

Net income                 $75,075          $111,825         $93,450       $280,350

4 0
3 years ago
Dan​ Jacobs, production manager for​ GreenLife, invested in​ computer-controlled production machinery last year. He purchased th
gayaneshka [121]

Answer:

The pertinent focuses for Dan​ Jacobs choice are referenced beneath.  

  • The new hardware would cost GreenLife $4,500,000  
  • The new hardware would twofold the creation yield of the old apparatus  

The expense of new hardware and the expansion in the creation yield by 100% are the future expenses and incomes and thus they are significant for dynamic.  

The old apparatus is bought previously. Consequently, the price tag of the old apparatus is immaterial for dynamic procedure. Tho director ought to consider the resale estimation of old apparatus in the dynamic. Tho resale estimation of old apparatus ought to be deducted from the expense of new hardware so as to ascertain the net money surge to buy the new apparatus.  

The director ought to set up an expense and advantage examination or ascertain NPV (net present estimation) of the venture (capital planning investigation) to introduce it before the leader of the organization. The extra costs identified with extra creation ought to likewise be thought of. This investigation would support the supervisor and the president in dissecting that whether they should buy the new machine or not.

4 0
3 years ago
According to the table, if the interest rate on this account were 10 percent, how much money would you have in the account at th
Sergio [31]
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3 0
3 years ago
On January 2, Haskins Company purchases a laser cutting machine for use in fabrication of a part for one of its key products. Th
MakcuM [25]

Answer:

Explanation:

Cost of machine - $80000

Useful life - 5 years

Salvage value -$5000

Depreciable amount = 80000-5000= 75000

Annual depreciation = 75000/5 = 15000

Year                    DR                       Accum Dep

Cost                                                                                   8000                  

1                Depreciation 15000       15000  

2               Depreciation  15000      30000

Year 3      Depreciation  15000      45000

Year 4      Depreciation   15000      60000

Year 5      Depreciation   15000      75000

Financial statement template

Balanced sheet

Cash asset + Non cash asset = liabilities + Equity

Cash asset + 65000  = liabilities + equity

Income statement

Revenue - expenses = Net income

Revenue - 15000 - Net Income

3 0
3 years ago
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