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Ilya [14]
2 years ago
7

The management of Bullinger Corporation would like to investigate the possibility of basing its predetermined overhead rate on a

ctivity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 26,000 machine-hours. Capacity is 29,000 machine-hours and the actual level of activity for the year is assumed to be 24,700 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $34,840.00 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. If the company bases its predetermined overhead rate on capacity, what would be the cost of unused capacity reported on the income statement prepared for internal management purposes
Business
1 answer:
Anit [1.1K]2 years ago
4 0

Answer:

$5,160

Explanation:

Predetermined Overhead Rate on Capacity = Total Estimated Manufacturing Overhead / Estimated Capacity for the Year

Predetermined Overhead Rate on Capacity = $34,840 / 29,000 MH

Predetermined Overhead Rate on Capacity = $1.20 MH

Actual use of capacity = 24,700 hours

Unused hours = 29,000 hours - 24,700 hours

Unused hours = 4,300 hour

Cost of unused capacity = 4,300 hours * $1.20 MH

Cost of unused capacity = $5,160

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Sladkaya [172]

Answer:

False

Explanation:

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FDI may be carried out through mergers and acquisitions, joint ventures and building facilities in other countries.

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3 years ago
ClipClop Company sells horseshoes to customers at a discount of 4% if the customer orders more than 10,000 horseshoes in a year.
STALIN [3.7K]

Answer:

$7,680

Explanation:

The computation of the sales revenue in April month is shown  below:

= Sales revenue - discount

where,

Sales revenue = Number of horseshoes × price per shoe

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And, the discount equal to

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= 8,000 horseshoes × 2%

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Now put these values to the above formula

So, the value would be equal to

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7 0
3 years ago
It is the goal of the managers at Trevor's company to rework the production line so that it produces as many automobile parts as
raketka [301]

Answer:

management strategy

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The board of governors of the federal reserve system can increase commercial bank reserves by
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Scenario 1
anzhelika [568]

Answer:

The first country invested in health care. It eradicated an epidemic that was weakening its present and future workforce. Its investment was successful because it made people productive again. The second country recognized the potential for productivity in young girls. By taking steps to train and educate them, the government made them eligible for quality employment. The second country's investment was successful because it strengthened its workforce and attracted foreign investment.

Explanation:

Edmentum (Plato) answer

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