Answer:
Over= $16,000 favorable
Explanation:
Giving the following information:
In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Standard hours allowed for the work done is 40,000 hours. Glazier’s predetermined overhead rate is $5.00 per direct labor hour.
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 5*42,000= 210,000
Over/under allocation= real MOH - allocated MOH
Over/under allocation= 194,000 - 210,000= 16,000 favorable
Answer:
Explanation:
The question says to complete the necessary adjusting entry
What is an adjusting entry:
An adjusting entry represent an accounting entry passed usually at the end of the accounting year to ensure that accounts following the matching principle. An adjusting entry can further be passed to calculate and bring in respective account balances at the end of the period.
Therefore, the required adjusting entry is as follows:
Date Particulars Debit Credit
Dec 30 Salaries expense $4,000
Salaries payable a/c $4,000
being the record of salaries accrued at the end of the year
Note: Since a day is $800 and there are 5 days, the accrual is $800 x 5 = $4,000
Answer:
d. Salary Expense
Explanation:
Salary Expense refers to the salaries or fixed payment by an organization to it's employees. It is an expense and as per the rules of accounting, "debit all expenses and losses, credit all incomes and gains."
Salary expense represents salary which has been earned whether paid or not, as per the accrual concept of accounting.
Thus, a credit balance in Salary Expense represents a likely error since such an account is usually associated with a debit balance, being an expense.
Answer : a. True
It is true that price ceilings are created to keep products affordable for consumers. Price ceilings are set by the government. It is a government initiative to regulate the prices of commodities, products and services in the market to protect the consumers' interests and rights. In deciding the price ceiling, it must be considered that it should be below the natural market equilibrium. Legally, the prices can't just be raised suddenly but must follow certain legal and business procedures.
