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3 years ago

ABC Company listed the following data for 20XX:

Business

1 answer:

Dominik [7]3 years ago

7 0

Answer:

a. Budgeted factory overhead = 1,044,000.00

Budgeted direct labor hours = 72,000.00

Predetermined overhead rate = 1044,000/72,000

Predetermined overhead rate = $14.50

b. Budgeted factory overhead = 1,044,000.00

Budgeted machine hours= 24,000.00

Predetermined overhead rate = 1044,000/24000

Predetermined overhead rate = $43.50

c. Actual direct labor hours = 72,600.00

Applied overhead = 72600*14.50= 1,052,700.00

Actual factory overhead = 1,037,400.00

Overapplied overhead = 15,300.00

d. Actual machine hours 23,600.00

Applied overhead = 23600*43.50 = 1,026,600.00

Actual factory overhead 1,037,400.00

Underapplied overhead ($10,800.00)

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Explanation:

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2 years ago

Ms V resides in a jurisdiction with a 35% income tax. Ms V has $40,000 that she could invest in bonds paying 8% annual interest.

klio [65]

Answer:

Increase in tax rate will reduce income form bond but will not affect the benefits derivable from the purchase of the new luxury auto.

Explanation:

First, a look at the after tax rates for when tax is 35% and when it is increased to 50%.

Step 1: Compute the after tax rate when tax is 35%

=Interest rate x (1-tax rate)

= 0.08 x (1- 0.35)

-5.2%

Step 2: Compute the after tax rate when tax is increased to 50%

= Interest rate x (1- tax rate)

= 0.08 x (1-0.5)

=4%

The first outcome is that an increase in tax rate leads to a decrease in income. Meaning an increased tax rate reduces the income from the bonds.

However, an increase in tax rate although it will affect the income will have no effect on the new luxury condo, that Ms V wants to buy. This is because, the benefits Ms V will get from the auto cannot be taxed as compared with the interest on the bond.

Hence, it becomes easier for Ms V to buy the luxury auto than invest in bonds if the tax rate should increase

4 0

4 years ago

Vendors submit invoices prior to receiving purchase orders from companies. True False

jeyben [28]

Answer:

False

Explanation:

Only after the purchase was approved

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3 years ago

If U.S. immigration consists of mainly low-skilled workers, then an increase in immigration __________ the wages of low-skilled

Andreas93 [3]

Answer:

Option B: will reduce

Explanation:

Immigration is simply movement from one country to another with the intention of staying. Immigrant are coming into the US yearly .

If U.S. immigration consists of mainly low-skilled workers, then an increase in immigration reduce the wages of low-skilled workers as they are too much and wages will have to fall.

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3 years ago

The fair value of the plant and equipment was $60,000 more than its recorded carrying amount. The fair values and carrying amoun

Savatey [412]

Answer:

$20,000

Explanation:

The question is missing some parts:

Penn Corp. paid $300,000 for the outstanding common stock of Star Co. At that time, Star had the following condensed balance sheet:

Carrying amounts

Current assets $40,000
Plant and equipment, net $380,000
Liabilities $200,000
Stockholders' equity $220,000

After a company is acquired, the parent company (the buyer) must record all the assets and liabilities at fair market value. In this case, the fair market value was higher than the carrying value by $60,000, therefore, the value of Penn's P,P&E must increase from $380,000 to $440,000. So total assets = $480,000, liabilities = $200,000, so equity = $480,000 - $200,000 = $280,000.

Since Goodwill represents the amount of money paid in excess of equity value, then Goodwill = $300,000 - $280,000 = $20,000

6 0

4 years ago