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iren2701 [21]
2 years ago
12

Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corpor

ation has provided the following estimated costs for next year: Direct materials $ 1,000 Direct labor $ 3,000 Sales commissions $ 4,000 Salary of production supervisor $ 2,000 Indirect materials $ 400 Advertising expense $ 800 Rent on factory equipment $ 1,000 Reamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:
Business
1 answer:
oksano4ka [1.4K]2 years ago
8 0

Answer:

$3.40 per machine-hour

Explanation:

Calculation for what The predetermined overhead rate per hour will be:

First step is to calculate the Total estimated manufacturing overhead

Manufacturing overhead:

Salary of production supervisor $2,000

Indirect materials $400

Rent on factory equipment$1,000

Total estimated manufacturing overhead $3,400

Now let calculate the Predetermined overhead rate using this formula

Predetermined overhead rate=Total estimated manufacturing overhead/Estimated machine-hours

Let plug in the formula

Predetermined overhead rate=$3,400/1,000

Predetermined overhead rate=$3.40 per machine-hour

Therefore The predetermined overhead rate per hour will be:$3.40 per machine-hour

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On February 1, 2014, Nelson Corporation purchased a parcel of land as a factory site for $280,000. An old building on the proper
seropon [69]

Answer:

Land = $295,000

Building = $1,375,000

Explanation:

The computation of cost of the land and new building is shown below:-

Land = Parcel of land + Demolition of old building + Legal fees for title investigation and purchase contract - Salvaged materials resulting from demolition were sold

= $280,000 + $20,000 + $5,000 - $10,000

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= $1,375,000

We simply applied the above formulas

7 0
3 years ago
Portman Corporation has retained earnings of $675,000 at January 1, 2014. Net income during 2014 was $1,400,000, and cash divide
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Answer:

attached below

Explanation:

3 0
3 years ago
What type of rule defines how much time can pass between an illegal act and when an individual is prosecuted for that act?
Anton [14]

Answer: Statue of limitations is the correct answer

3 0
2 years ago
Honda Motor Company is considering offering a $ 1 comma 800 rebate on its​ minivan, lowering the​ vehicle's price from $ 30 comm
finlep [7]

Answer:

Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.

Explanation:

Giving the following information:

Honda Motor Company is considering offering an $1800 rebate on its​ minivan

New price $30200

Old price $28400.

The marketing group estimates that this rebate will increase sales over the next year from 42000 to 53900 vehicles.

Honda's profit margin with the rebate is $5650 per vehicle.

Normal price:

Income= (5650+1800)*42000= $312,900,000

New price:

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Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.

6 0
3 years ago
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prohojiy [21]

Answer:

See the answers below

Explanation:

Depreciation: when a valuable assets  loses value over time

the decision she took was to reduce salvage value, increase depreciation expenses and decrease profit tax

. Is Choi’s rule an ethical violation, or is it a legitimate decision in computing depreciation?

Choi's choice of rule is unethical but there are companies in recent tines who employ the same method. It is not keeping with best practices. However, she can employ the recent accounting methods. disclosed if there are changes made.

3. How will Choi’s depreciation rule affect the profit margin of her business?

Her profit margin will increase almost by double

6 0
3 years ago
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