Solution :
a).
Estimated overhead 1,250,000
Divide by the estimated machine hours 50,000
Predetermined overhead rate 25
Actual machine hours 54,300
Multiply by predetermined overhead rate 25
The factory overhead amount applied $ 1,357,500
b).
Actual factory overhead 1,348,800
Less : factory overhead amount applied 1,357,500
The underapplied amount is $ 8700
The correct alternative is letter c. marketing. Predicting what types of bicycles different customers will want and deciding which of those customers the company will try to satisfy are activities that a company must do as part of marketing.
<h3 /><h3>What is marketing?</h3>
It corresponds to a set of techniques and strategies developed by a company whose main objective is to create value for its consumers through communication, organizational image, products and services, establishing relationships that increase competitiveness and profitability in the active market.
Therefore, marketing helps in forecasting trends that satisfy the needs and wants of your consumer, as well as predicting the types of bicycles that customers will want as exemplified in the statement.
Find out more about marketing here:
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Answer:
40 pounds would be the average inventory
Explanation:
Total Order quantity= 80 pounds
Average inventory level = Order quantity / 2
= 80 pounds / 2
= 40 pounds
Hence, 40 pounds would be the average inventory
Answer:
The total appraisal cost that would appear on the quality cost report is $63,300.
Explanation:
Appraisal costs can be described as costs that are incurred by a company in order to detect some of its products that have defects before they delivered to customers.
Examples of appraisal cost include costs incurred to inspect work-in-process materials, costs incurred to inspect finished goods, supplies used to conduct inspections, and among others.
Based on the above explanation, the total appraisal cost that would appear on the quality cost report can be calculated as follows:
Total appraisal cost = Test and inspection of in-process goods + Final product testing and inspection = $19,500 + $43,800 = $63,300
Therefore, the total appraisal cost that would appear on the quality cost report is $63,300.
