Answer:
1. $53.75 per direct labor hour
2. $80.625 per machine hour
Explanation:
Total manufacturing overhead costs= $1112500+$500000 = $1612500
Total direct labor hours= 11000+19000=30000
Total machine hours= 5000+15000=20000
1. Company’s single plantwide overhead rate based on direct labor hours
= Estimated overhead costs/Estimated direct labor hours
=$1612500/30000
=$53.75 per direct labor hour
2. Company’s single plantwide overhead rate based on machine hours
= Estimated overhead costs/Estimated Machine hours
=$1612500/20000
=$80.625 per machine hour
Answer:
C. Debit Work in Process—Dept. B; credit Finished Goods—Dept. A
Explanation:
It is known that during continuous production, businesses find it difficult to isolate each individual unit and calculate a cost. Process costing systems accumulate the materials, labor and overhead costs for the period along with the total number of units produced. The total number of units produced includes both completed units and partially completed units. The company determines the percentage of completion for each partially completed unit and adds these amounts to the total number of completed units to determine the equivalent units.
<u>Solution:</u>
Deffered revenue means when an organization receives the payment prior to the goods delivered to conusmer. In the given case, business receives $3000 on 1, January for ten month service (From january to October).
<u>The revenue per month needs to be calculated:</u>
Revenue per month = Revenue for ten months divided by Total number of months
By putting the figures we get,
Revenue per month = $3000 divided by 10 = $300 per month
An adjusting entry needs to be passed:
Date Particulars debit credit
31st jan Unearned Revenue $300
Service Revenue $300
( Service revenue that has been collected in advance)
Answer:
1 ABC Jan 100 Call
Explanation:
Although the OCC does not usually adjust the strike price of listed options for regular quarterly cash dividends. This is because they are known quantity that are segmented by the market into options premium.
For special cash dividends, they are not a frequent event hence market does not recognize them. This special cash dividend is $10 per share × 100 shares = $1,000 value per contract. It therefore means that the $1,000 value per contract will be adjusted.
The new strike price will be
= 110 - 10 cash dividend
= 100. It also means that the number of shares covered by the contract does not change.
Answer:
utilitarian perspective
Explanation:
In simple words, utilitarian approach refers to a method for making decisions in case of ethical dilemmas. Under this approach, the decision making authority makes judgement by focusing on the greater good, that is, making judgement that benefits the most of the individuals and harm the least.
This theory states that every party's interest should be taken into consideration equally as every related individual to the judgement is capable of suffering . However this approach is used when it is not possible to benefit all the stakeholders equally.
