Answer:
Cash Inflow of $191,400
Explanation:
There are three types of activities in the cash flow statement which are described below:
1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income
2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.
In the given case, the sale proceed of equipment is consider in the investing activity i.e $191,400
Answer:
Overhead application rate
= <u>Budgeted overhead</u>
Budgeted machine hours
= <u>$900,000</u>
30,000 hours
= $30 per machine hour
Overhead cost assigned to the product
= Overhead application rate x Actual machine hours
= $30 x 12,000 hours
= $360,000
Explanation:
In this case, there is need to determine the overhead application rate, which is the ratio of budgeted overhead to budgeted machine hours.
Then, we will obtain the overhead cost assigned to the product by multiplying the overhead application rate by actual machine hours.
Enhancing, Retaining, Satisfying and Attracting.
