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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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Explanation:

6 0
3 years ago
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melomori [17]

Answer:

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Explanation:

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3 years ago
1. What is a supply chain? How can managerial accountants help to improve the supply chain?
murzikaleks [220]

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Explanation:

1b. Managerial Accountants can improve the supply chain by looking out for hitches in the distribution cycle of goods and being proactive about handling them. Some measures to achieve these are;

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7 0
3 years ago
While waiting in line to buy two tacos at 75 cents each and a medium drink for 80 cents, Jordan notices that the restaurant has
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Answer:

The correct answer is $0,20.

Explanation:

The marginal cost, at each level of concrete production, indicates the costs we incurred in carrying out said production. Basically, it is an indicator that will allow us and help to make decisions regarding the preparation and production of goods and services.

In the previous case, the cost of buying two tacos for $ 75 each plus a $ 80 bedid is as follows:  

Tacos: $ 75 * 2 = $ 1,50

Drink: $ 80

TOTAL = 2,30

For its part, the second option is priced at $ 2,50

Subtracting the results, the marginal cost is defined as follows:

$ 2,50 - $ 2,30 = $ 0,20

6 0
3 years ago
A company has Net Income of $10, which included $2 of depreciation expense. There were no other noncash expenses in Net Income a
alexandr402 [8]

Answer:

2

Explanation:

The company's cash flow from operating activities can be calculated as follows:

                                                                                                $

Net Income                                                                            10

Add:depreciation expense                                                    2

Less:changes in accounts receivable                                  (5)

(20-25)

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(5-15)

Add:changes in inventory                                                     5

(12-7)

Cash flow from operating activities                                       2        

3 0
3 years ago
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