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Answer:
The ABC overhead for a Deluxe kayak will be $170.93
Explanation:
We are going to divide the overhead cost over the cost driver of each activity.
Now we apply the rate to Deluxe Kayak:
Finally we divide the overhead for Deluxe between the units produced
427,333.33/ 2,500 = 170.933 = 170.93
Answer:
Follows are the solution to the given points:
Explanation:
For question 1:
Exp on the Debit Salary = $ 1,500,000
Credit payable Income tax = $375,000
Credit accounts payable (pension plan)= $63,000
Credit payable tax on FICA= $114,750
Credit payable salary (Balance) $947,250
For question 2:
Exp = $100,500 for Debit Wages
Cr.= $31,500 (Surgical Insurance) Payable accounts
Cr. = $6,000 in insurance accounts payable
Cr. = $63,000 Payable Accounts (Pension plan)
For question 3:
EXP= $207,750 for Debit Payroll Tax
Cr. = $114,750 for FICA payable tax
Cr. =$93000 for Federal and State (Unemployment tax)
Tax on state or federal unemployment