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3 years ago

Predetermined Overhead Rate; Various Cost Drivers

Business

1 answer:

spayn [35]3 years ago

3 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Actual manufacturing overhead= $340,000

Budgeted machine hours= 10,000

Budgeted direct-labor hours= 20,000

Budgeted direct-labor rate= $14

Budgeted manufacturing overhead= $364,000

Actual machine hours= 11,000

Actual direct-labor hours= 18,000

Actual direct-labor rate= $15

First, we need to calculate the predetermined overhead rate for each cost driver:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machine-hours:

Estimated manufacturing overhead rate= 364,000/10,000= $36.4 per machine hour

Direct-labor hours:

Estimated manufacturing overhead rate= 364,000/20,000= $18.2 per direct labor hours

Direct-labor dollars:

Estimated manufacturing overhead rate= 364,000/(20,000*14)= $1.3 per direct labor dollar

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Machine-hours:

Allocated MOH= 36.4*11,000= $400,400

Direct-labor hours:

Allocated MOH= 18.2*18,000= $327,600

Direct-labor dollars:

Allocated MOH= 1.3*(18,000*15)= $351,000

Finally, we can determine the over/under allocation:

Over/under allocation= real MOH - allocated MOH

Direct-machine hours:

Over/under allocation= 340,000 - 400,400= $60,400 overallocated.

Direct-labor hours:

Over/under allocation= 340,000 - 327,600= $12,400 underallocated.

Direct-labor dollars:

Over/under allocation= 340,000 - 351,000= $11,000 overallocated

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Alborosie

By processing their milk supply by themselves and cutting out middlemen, by pooling their resources and working together, the members of Swaayam Ksheer have been able to generate more purchasing power and grow their operations and have been able to double their profits.

5 0

3 years ago

You have 40 years left until retirement and want to retire with $5 million. Your salary is paid annually, and you will receive $

Marat540 [252]

Answer:

16.67%

Explanation:

Calculation to determine what percentage of your salary must you save each year

First step is to calculate the Annual savings

Annual savings=$5 million*[(10%-3%)/(1+0.1)^40-(1+0.03)^40]

Annual savings=$5 million*0.07/(1.1^40-1.03^40)

Annual savings=$8333.88

Now let determine the percentage of the salary you must save each year

Proportion of savings=$8333.88/$50,000

Proportion of savings=0.1667*100

Proportion of savings=16.67%

Therefore the percentage of your salary that you must save each year is 16.67%

5 0

3 years ago

Devin is a landscaper who needs to prepare different types of grass seed for his customers' yards. Bluegrass seed costs $2.00 pe

IgorLugansk [536]

Answer:

7 pounds

Explanation:

To solve this we need to use simultaneous algebraic equations.

Assume

x = 1 pound of bluegrass seed

y = 1 pound of drought resistant seed

Our first equation considers the number of pounds

x + y = 25

y = 25 - x

For the combined bluegrass seeds and thought resistant seeds bought

For the second equation we consider the price

2x + 3y = 68

Substitute value of y in equation 2

2x + 3(25 - x) = 68

2x + 75 - 3x = 68

x= 7

So the amount of bluegrass seed is 7

We can also get the amount of drought resistant seed from equation

7 + y = 25

y = 18

3 0

4 years ago

Fraud Investigators Inc. operates a fraud detection service. On March 31, 10 customers were billed for detection services totali

mr_godi [17]

Answer:

Fraud Investigators Inc.

1. Journal Entries:

March 31: Debit Accounts Receivable $21,000

Credit Service Revenue $21,000

To record the rendering of service on account.

Oct. 31: Debit Allowance for Uncollectible Accounts $1,300

Credit Accounts Receivable $1,300

To write-off uncollectible accounts.

Dec. 15: Debit Accounts Receivable $760

Credit Allowance for Uncollectible Accounts $760

To reverse a previously written-off account.

Dec. 15: Debit Cash $760

Credit Accounts Receivable $760

To record the cash collected from the customer.

Dec. 31: Debit Bad Debts Expense $460

Credit Allowance for Uncollectible Accounts $460

To record bad debts expense for the year.

A) Debit Accounts Receivable $34,000

Credit Service Revenue $34,000

To record the rendering of service on account.

B) Debit Allowance for Uncollectible Accounts $1,950

Credit Accounts Receivable $1,950

To write off uncollectible accounts.

C1) Debit Accounts Receivable $810

Credit Allowance for Uncollectible Accounts $810

To reverse a previously written-off debt.

C2) Debit Cash $810

Credit Accounts Receivable $810

To record the receipt of cash from the customer.

D) Debit Bad Debts Expense $590

Credit Allowance for Uncollectible Accounts $590

To record bad debts expense for the year.

2. Transaction Net Receivable Net Sales Income From Operation

A +34,000 +34,000 +34,000

B -1,950 NE -1950

C +/- 810 NE +810

D NE NE -590

Explanation:

a) Data and Analysis:

March 31: Accounts Receivable $21,000 Service Revenue $21,000

Oct. 31: Allowance for Uncollectible Accounts $1,300 Accounts Receivable $1,300

Dec. 15: Accounts Receivable $760 Allowance for Uncollectible Accounts $760

Dec. 15: Cash $760 Accounts Receivable $760

Dec. 31: Bad Debts Expense $460 Allowance for Uncollectible Accounts $460

A) Accounts Receivable $34,000 Service Revenue $34,000

B) Allowance for Uncollectible Accounts $1,950 Accounts Receivable $1,950

C1) Accounts Receivable $810 Allowance for Uncollectible Accounts $810

C2) Cash $810 Accounts Receivable $810

D) Bad Debts Expense $590 Allowance for Uncollectible Accounts $590

7 0

3 years ago

Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is $1 per can, t

Tamiku [17]

Answer:

INCREASE the consumption of Pepsi and REDUCE the consumption of Hamburger

Explanation:

Based on the information given we were told that Bill uses his whole budget to purchase the following :

5 cans of Pepsi

3 Hamburgers per week

And the following were the price:

Pepsi costs $1 per can

Hamburger cost $2

Bill marginal utility:

Pepsi 4

Hamburgers 6

Based on the above details this means that Bill could increase his utility by INCREASING Pepsi consumption and REDUCING hamburger consumption reason been that 5 cans of Pepsi costs $1 per can which will gives us income of $5 ($5×1) while 3 Hamburgers per week cost $2 which will give us income of $6 ($3×2) which typically means that the Hamburgers has more income that Pepsi.

Secondly since the marginal utility for Pepsi is 4 while that of Hamburgers is 6 which means that Hamburgers has higher MARGINAL UTILITY than that of Pepsi because the consumption of Hamburgers is higher than the consumption of Pepsi.

Therefore the best thing that Bill could do in order to increase his Pepsi utility is for Bill to increase Pepsi consumption and reduce hamburger consumption.

8 0

3 years ago