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Lady bird [3.3K]
3 years ago
9

The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four-month perio

d. Machine Hours Mfg. Overhead April 90,000 $ 170,000 May 80,000 $ 153,000 June 110,000 $ 198,000 July 95,000 $ 181,000 Using the high-low method, compute the fixed element of Olsen's
Business
1 answer:
Eduardwww [97]3 years ago
6 0

Answer:

$33,000

Explanation:

The calculation of the fixed cost and the variable cost per machine hour by using high low method is shown below:

Variable cost per hour = (High manufacturing overhead cost - low manufacturing overhead cost) ÷ (High machine hours - low machine hours)

= ($198,000 - $153,000) ÷ (110,000 hours - 80,000 hours)

= $45,000 ÷ 30,000 hours

= $1.5

Now the fixed cost is

= High manufacturing overhead cost - (High machine hours × Variable cost per hour)

= $198,000 - (110,000 hours × $1.5)

= $198,000 - $165,000

= $33,000

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Manny hired his brother’s firm to provide accounting services to his business. During the current year, Manny paid his brother’s
Naily [24]

Answer:

$64,000

Explanation:

In order to be deductible, a business expense must be both ordinary and necessary. Being ordinary means that it is a plausible expense for this business, since the expense in question is related to accounting services, it is ordinary. Being necessary means that the expense is the minimum required and is appropriate and helpful to the business. In this case, all of the expense was not required, therefore, only $64,000 (the reasonable market value for the services provided) are deductible.

3 0
3 years ago
What is the formula for measuring price elasticity of demand? percentage change in price / percentage change in quantity demande
Nostrana [21]
Market value increase demand of sales
8 0
2 years ago
Record the January 31, 2019 adjusting entry for the December 31, 2018 receipt of $3,000 from race participants for providing ser
MAXImum [283]

Answer:

Debit Unearned revenue   $1,000

Credit Service revenue       $1,000

Explanation:

When cash is received in advance for service yet to be provided, an asset and a corresponding liabilities are created.

The liability is then reduced as the revenue for which cash was collected in advance is earned.

Given that the December 31, 2018 receipt of $3,000 from race participants for providing services for three races. One race is held on January 31, 2019 and the other two will be held in March 2019.

Revenue from one race = 1/3 × $3,000

= $1,000

Since One race is held on January 31, 2019, entries required

Debit Unearned revenue   $1,000

Credit Service revenue       $1,000

Being entries top recognize revenue earned from the race held on January 31, 2019 .

4 0
3 years ago
Choose the method of pay that would result in the most earnings for one month on sales of $40,000. A. Straight commission of 7.
sleet_krkn [62]

The method of pay that would result in the most earnings is method 1.

<h3>What method of pay would result in the most earnings?</h3>

In order to determine which method of pay would yield the highest earnings, the total amount that would be earned using each method of pay has to be determined.

Method A = 7.5% x $40,000 = $3000

Method B = $1600 + (2.5% x $40,000) = $2,600

Method C = (5% x $30,000) + (6% x 10,000) = $2,100

Method D = (4% x $25,000) + (8% x $15,000) = $2,200

To learn more about pay, please check: brainly.com/question/11946555

8 0
2 years ago
The ABC Company is planning a new product line and will build a new plant to manufacture the parts for a new product line. The p
NikAS [45]

Answer:

a. Number of production operations = 120,000,000 per year.

b. Number of Workers = 1,000 workers.

C. Size = 250,000 ft²

Explanation:

a

Number of production operations is calculated as;

50 models * 1000 units * 400 components * 6 steps

Number of production operations = 120,000,000 per year.

b.

Number of workers is calculated as;

Total operation time ÷ factory operating hours per year;

Factory Operating Hours = 2000.

Calculating total operation time;

= 120,000,000 * 1hr/60min

= 2,000,000 hr/yr

So. Number of workers = 2,000,000 ÷ 2,000

Number of Workers = 1,000 workers.

c. Size of floorspace

Size = Number of workstations * floorspace

Number of workstations = number of workers = 1000

Floorspace = 250ft²

Size = 1000 * 250

Size = 250,000 ft²

3 0
3 years ago
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