D. On 30 June 20X2, the directors of Delta decided to close down a division. This decision was announced to the employees affected on 15 July 20X2 and the actual closure occurred on 31 August 20X2, prior to the 20X2 financial statements being authorised for issue on 15 September. Expenses and other items connected with the closure were as follows: Redundancy costs (estimated) Staff retraining (actual) Operating loss for the 2 months to 31 August 20X2 (estimated at 30 June) Profit on sale of property $m 22 $m 10 $m 12 $m 5 The actual redundancy costs were $20 million and the actual operating loss for the two months to 31 August 20X2, was $15 million. Required
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- Hansel Corporation provided the following data: No. of employees at the beginning of the month 600 No. of employees at the end of the year 640 No. of employees resigned 40 No. of employees discharged 10 No. of employees replaced 20 Required: Calculate the labor turnover by applying three methods: Separation method Replacement method Flux methodFrank Weston, supervisor of the Freemont Corporation's Machining Department, was upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below: Machine-hours Direct labor wages Supplies Maintenance Utilities Freemont Corporation-Machining Department Cost Control Report For the Month Ended June 30 Supervision Depreciation Total Actual Results Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total 42,000 $ 81,800 25,300 24,300 22,000 49,000 49,000 83,000 83,000 $ 285,400 $ 276,800 Planning Budget 40,000 $ 79,600 23, 200 Actual Results "I just can't understand all of these unfavorable variances," Weston complained to the supervisor of another department. "When the boss called me in, I thought he was going to give me a pat on the back because I know my department worked more efficiently last month than ever before. Instead, he tore me apart. I thought for a minute it…Moira Company has just finished its first year of operations. At year end, MOH allocated (or applied) was $435,000 and MOH control was $425,000. The firms decides to prorate the under or overapplied overhead based on the ending balances in the appropriate accounts. Ending balances are:Materials inventory $20,000WIP inventory 40,000FG inventory 80,000COGS 680,000 After closing out the overhead accounts using the proration method, what is the balance in the FG inventory account?
- Equinox Fabrication Plant suffered a fire incident in August due to which most of the records for the year were destroyed. The following accounting data for the year that were recovered: Total manufacturing overhead estimated at the beginning of the $105,840 $186,000 3,600 direct labor hours $99,760 $142,000 year Total direct labor costs estimated at the beginning of the year Total direct labor hours estimated at the beginning of the year Actual manufacturing overhead costs for the Actual direct labor costs for the year Actual direct labor hours for the year year 2,950 direct labor hours The company bases its manufacturing overhead allocation on direct labor hours. What was the predetermined overhead allocation rate for the year?Housley Paints Co. had a remaining debit balance of $25,000 in its under- and overapplied factory overhead account at year-end. The balance was deemed to be large and, therefore, should be closed to Work in Process, Finished Goods, and Cost of Goods Sold. The year-end balances of these accounts, before adjustment, showed the following: Determine the prorated amount of the underapplied factory overhead that is chargeable to each of the accounts. Prepare the journal entry to close the debit balance in Under-and Overapplied Factory Overhead.Equinox Fabrication Plant suffered a fire incident in August due to which most of the records for the year were destroyed. The following accounting data for the year that were recovered: Total manufacturing overhead estimated at the beginning of the year $105,840 Total direct labor costs estimated at the beginning of the year $186,000 Total direct labor hours estimated at the beginning of the year 3,600 direct labor hours Actual manufacturing overhead costs for the year $99,760 Actual direct labor costs for the year $142,000 Actual direct labor hours for the year 2,950 direct labor hours The company bases its manufacturing overhead allocation on direct labor hours. What was the predetermined overhead allocation rate for the year? How much manufacturing overhead was allocated to production during the year?
- Equinox Fabrication Plant suffered a fire incident in August due to which most of the records for the year were destroyed. The following accounting data for the year that were recovered: Total manufacturing overhead estimated at the beginning of the year $105,840 Total direct labor costs estimated at the beginning of the year $186,000 Total direct labor hours estimated at the beginning of the year 3,600 direct labor hours Actual manufacturing overhead costs for the year $99,760 Actual direct labor costs for the year $142,000 Actual direct labor hours for the year 2,950 direct labor hours The company bases its manufacturing overhead allocation on direct labor hours. Calculate the predetermined overhead allocation rate for the year?Equinox Fabrication Plant suffered a fire incident in August due to which most of the records for the year were destroyed. The following accounting data for the year that were recovered: Total manufacturing overhead estimated at the beginning of the year $105,840 Total direct labor costs estimated at the beginning of the year $186,000 Total direct labor hours estimated at the beginning of the year 3,600 direct labor hours Actual manufacturing overhead costs for the year $99,760 Actual direct labor costs for the year $142,000 Actual direct labor hours for the year 2,950 direct labor hours The company bases its manufacturing overhead allocation on direct labor hours. What was the predetermined overhead allocation rate for the year?The cost accountant of Al Reem Manufacturing SAOG has computed employee turnover rates for the quarter ended 31st March, 2021 as 9%, 7% and 4% respectively under ‘Flux method’, ‘Replacement method’ and ‘Separation method’ respectively. If the number of workers replaced during that quarter is 60, find out the average number of workers for the quarter. a. 1,142 b. 857 c. 571 d. 1,000
- Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below: Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total Freemont Corporation-Machining Department Cost Control Report For the Month Ended June 30 Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total Actual Results 42,000 $ 89,600 28,300 25,000 22,700 55,000 95,000 $ 315,600 Actual Results Planning Budget $ 40,000 $ 86,800 25,600 22,900 21,500 55,000 95,000 $ 306,800 "I just can't understand all of these unfavorable variances," Weston complained to the supervisor of another department. "When the boss called me in, I thought he was going to give me a pat on the back because I know for a fact that my department worked more efficiently last month than it has ever worked before.…At the end of the year, overhead applied was $3,691,000. Actual overhead was $3,451,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to Oa. increase by $480,000 Ob. decrease by $240,000 Oc. increase by $240,000 Od. decrease by $480,000At the end of the year, overhead applied was $3,733,000. Actual overhead was $3,156,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to Oa. increase by $1.154.000 Ob. decrease by $577,000 Oc. decrease by $1,154,000 Od. increase by $577,000