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lana66690 [7]
2 years ago
9

Actual overhead costs may not be proportional to the actual amount of the allocation base used because ______. Multiple select q

uestion. the predetermined rate might not be estimated correctly overhead spending may not be under control overhead costs are all variable costs many actual overhead costs are fixed
Business
1 answer:
Angelina_Jolie [31]2 years ago
5 0

The reason why Actual overhead costs may not be proportional to the actual allocation is that overhead spending may not be under control/Many actual overhead costs are fixed.

<h3>What is Actual overhead?</h3>

Actual overhead serves as the amount of indirect factory costs which the business incurred.

There might be no proportionality in Actual overhead costs and actual allocation as a result of some fixed actual overhead costs.

Examples of actual overhead are ;

  • Wages paid to production supervisors
  • Depreciation that comes with  production equipment,

Learn more about Actual overhead at:

brainly.com/question/26082424

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Financial Statements of a Manufacturing Firm
Monica [59]

Answer:

Required A.

<u>Focault Inc. </u>

<u>Income Statement  For the Month Ended July 31 </u>

Revenues                                                        $1,120,000

Cost of Goods Sold                                         ($630,000)

Gross Profit                                                      $ 490,000

Selling and administrative expenses:

Selling Expenses                                           ($252,800)

Administrative Expenses                                ($100,000)

Income from Operations                               $137,2000

Required B

Materials inventory, July 31  =  $45,000

Work in process inventory, July 31  =  $36,000

Finished goods inventory, July 31 = $22,000

Explanation:

Raw Materials T - Account

Debit :

Purchases                    $320,000

Totals                           $320,000

Credit:

Used in Production     $275,000

Ending Balance             $45,000

Totals                           $320,000

Manufacturing Cost Schedule

Raw Materials                                               $275,000

Direct labor                                                   $236,000

Overheads ($236,000 × 75%)                      $177,000

Total Manufacturing Cost                            $688,000

Less Cost Transferred to Finished Goods ($652,000)

Ending Work In Process                                 $36,000

Finished Goods T - Account

Debit :

Cost of Goods Manufactured                      $652,000

Totals                                                             $652,000

Credit :

Trading Account : Cost of Sales                 ($630,000)

Ending Balance                                               $22,000

Totals                                                             $652,000

4 0
4 years ago
what are some of the actions a leader can take to create a climate for change and encourage risk-taking?
Ugo [173]

5 Ways To Encourage Smart Risk Taking

Model Risk-taking Behavior. Define Smart Risks and Set Limits. Identify Your Best Risk-takers And Unleash Them. Create A Safe Environment For Risk Taking. Reward Smart Failures

5 0
2 years ago
the cumulative difference between reporting inventory at lifo rather than fifo is commonly referred to as the
UkoKoshka [18]

The cumulative difference between reporting inventory at LIFO rather than FIFO is commonly referred to as the LIFO reserve

<h3>What is LIFO reserve?</h3>

Generally, LIFO reserve is an accounting term that represents the difference between the cost of inventory calculated using the first-in, first-out (FIFO) method and the cost calculated using the last-in, first-out (LIFO) method for the purposes of bookkeeping.

In conclusion, The LIFO reserve is a term that is widely used to refer to the accumulated discrepancy that results from reporting inventory using the LIFO method rather than the FIFO method.

Read more about LIFO reserve

at brainly.com/question/28146683

#SPJ1

8 0
1 year ago
A loan of $5,000 is charged a 12% annual interest rate. An $80 payment is made each month. a. Write a recurrence relation for th
klemol [59]

Answer:

$4163.57

Explanation:

Please see attachment

7 0
3 years ago
North Shore Clothing Company provided the following manufacturing costs for the month of June. Direct labor cost     ​$138,000 D
Alexxx [7]

Answer:

D. ​$242,200

Explanation:

The variable cost is that cost which is changes when there is a change in the level of production.

It includes the direct material cost, direct labor cost, factory supplies, etc

The computation of the total variable cost is shown below:

= Direct material cost + direct labor cost + packaging cost

= $85,000 + $138,000 + $19,200

= $242,200

Therefore we included these three cost for the calculation of the variable cost

4 0
3 years ago
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