Maintenance cost at 7,200 machine hours = Variable cost + Fixed cost = (7, 200 x $3) + $30,000 = $51, 600 Therefore, option "b. $51,600" is correct.
Q: Pricing Plan 1 - $30 per person (a special pack will be included) Pricing Plan 2 - $25 per visitor (...
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: 12. On January 1, 2020, Pangarap Nalang Company showed total assets of P5,000,000, total liabilities...
A: The net income for the year can be calculated from changes in equity equation
Q: Roland had a taxable estate of $15.6 million when he died this year. Required: Calculate the amount ...
A: Income tax: Income tax is the tax that an individual is responsible for on their earned income. It...
Q: Formula: Multiply; Cell Referencing Q R Using Excel to Determine Ending Inventory Student Work Area ...
A: FIFO method implies First In First Out. It means goods purchased first is sold first and in ending i...
Q: Mahal Mo Co. reported revenue of P3,100,000 in its accrual basis income statement for the year ended...
A: To calculate sales under cash basis from sales under accrual basis we will prepare account receivabl...
Q: 24. Pinaasa Company had total assets of P4,000,000 and shareholder’s equity of P2,080,000 at the beg...
A: Shareholder's Equity refers to Sum of Share capital like preferred stock, Common stock and Retained ...
Q: How much is the gain (loss) as a result of the sale of the building?
A: The answer for the multiple choice question and relevant working are presented hereunder : Cost of b...
Q: On November 1, a company bought supplies for $200. The $200 was debited to the Supplies account. An ...
A: Adjusting entries are made at the end of the period in the books in order to show the correct effect...
Q: Gill Company calculated equipment depreciation for the month of $500. The necessary adjusting entry ...
A: Adjusting entry includes the adjustments with regard to the accruals and prepaids. These are recorde...
Q: Mr Zoo is planning to set up a mini Zoo in Howick. The following relates to different pricing pl...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: A. On January 1, 2021, Bradley Company issued $100,000, 9%, 4-year bonds. Interest is paid sem...
A:
Q: 3. Once upon a time, XYZ Company bought a piece of machinery for $300,000. The net book value of the...
A: Net Book Value of Machine = $60,000 Add: Amount Spend on Machinery = $100,000 Final Value of Inve...
Q: Reynolds Co issued $87 million face amount of 11.00% bonds when market interest rates were 10 90% fo...
A: Solution: Bonds are issued by a company to borrow funds for the business. It is having a par value, ...
Q: Cash flow may be represented as being determined from: -receivables -operating income -revenue an...
A: Cash flows include the net amount of cash and cash equivalent of the business that shows the in and ...
Q: Problem 2 ABM Enterprise would like to evaluate/analyze an investment proposal. Siven the following:...
A: The Net Present Value: Managers constantly use capital budgeting tools to assess prospective investm...
Q: Salaries and wages payable $1,700 Notes payable (long-term) $1,700 Salaries and wages expense 51,800...
A: Lets understand the basics. Income statement is a statement which contains details about income, exp...
Q: P a y t o n company payroll for the year is $747,930. Of this amount, $469,230 is for wages paid e x...
A: Total unemployment taxes=Net Futa tax+Net suta tax
Q: What does the expression “marginal product of labour” mean ? Why do workers (skilled and unskilled) ...
A: marginal product of labour is concept of economics. this concept is generally used in economics when...
Q: Computing Retained Earnings and Net Income The following selected balance sheet amounts are from Aer...
A: The Closing Retained earnings is the balancing figure for this balance sheet.
Q: 2012 2013 2014 Unit Data Beginning Inventory Production 900 900 900 Sales 600 800 1000 Variable cost...
A: Absorption Costing: Absorption costing, often known as "full costing," is a management accounting ap...
Q: Which of the following statements is true about fixed and variable costs? * Both costs are constant...
A: Solution:- When sales units are increases or decreases the total sales also increase or decreases an...
Q: Make a journal entry with this. Bambinini Artsy is a sole proprietorship small business firm
A: Date Account Debit Credit Sep-01 Bank 1000 To capital 1000 Sep-10 P...
Q: QUESTION 14 Florist Gump, Inc. purchased land at a cost of $5,000 on February 2, 2000. At December 3...
A: Solution: As per historical cost concept, Non current assets are generally reported at their cost in...
Q: A net income will increase the owners capital account. True or false
A: Net Income can be derived from an income statement. It is an excess of all revenue over the expendit...
Q: the interest rate on debt is lower than ROA, then a firm will __________ by increasing the use of de...
A: Solution Return on Equity is a measure of financial performance calculated by dividing net income ...
Q: Prepare any journal entry necessary to record the LCNRV of the paper inventory at (1) June 30, (2) J...
A: Solution: As per GAAP, Inventory is to be valued at cost or NRV whichever is lower in the financial ...
Q: Using Excel to Cost Inventory Student Work Area PROBLEM In its first month of operations, McLanie Co...
A: Weighted Average Cost: It is typically employed when inventory pieces are so blended or similar to o...
Q: 1. How does incremental budgeting differ from program planning budgeting? How does it differ from ze...
A: ‘Budgeting’: It is a process which refers to estimation of future revenues and expenses, for a speci...
Q: d. A large customer owing $2.8 million for products it already received declared bankruptcy, leaving...
A: A large customer owing $2.8 million for products it already received declared bankruptcy, leaving no...
Q: A 12-year finance lease specifies equal minimum annual lease payments. Part of this payment represen...
A: Option C is correct answer.
Q: 4. (Present value of an ordinary annuity) What is the present value of the following annuities? a. $...
A: a. Present value = Amount{[1 - (1 + Rate)^-Time] / Rate} Present value = $2,500{[1 - (1 + 0.07)^-10]...
Q: following transactions for 2021 from the books of the business. This company operates one bank accou...
A: A balance sheet is a representation of an individual's personal or corporation's financial balances ...
Q: Locust Software sells computer training packages to its business customers at a price of $101. The c...
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts f...
Q: Pine Corporation, a calendar-year corporation, was formed three years ago by its sole shareholder, C...
A: Since Connor qualifies S election, any amount received from Pine corporation will be considered as a...
Q: ich of the following would least likely cause an unfavorable materials quantity(usage) variance? * ...
A: Solution: Material quantity (usage) variance is the difference between actual quantity of materials ...
Q: Selected data concerning the past year's operations of the Beachwear Manufacturing Company are as fo...
A: A. Cost of goods manufactured - Cost of Goods Manufactured is the total cost incurred to manufacture...
Q: Walang Kayo Company provided the following data: 12/31/2019 P 600,000 4,000,000 2,400,000 1,200,000 ...
A: As per Accrual concept every income and expense should be recognise in the books of accounts as and ...
Q: curities of $155000. This investment experienced an unrealized loss of $8500 during the current year...
A: Comprehensive income is the sum of net income and other items that must bypass the income statement ...
Q: Belle Manufacturing has an unfavorable direct labor rate variance. Which of the following would be t...
A: Labor rate variance is the difference between actual and expected cost of labor. Unfavorable labor r...
Q: person to start a project 8 years ago placed a deposit of ¢ 1,500,000.00 in a financial institution ...
A: Solution Given Life of project 8 years Initial deposit 1500000 First 3 years 5% mo...
Q: EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 $500,000 $500,000 19...
A: Solution Estate tax is a tax on your right to transfer property at your death.
Q: What normal capacity was used to determine the fixed overhead rate? 5,000 5,500 6,000 5,077
A: Solution:- Given, Western Co. has total budgeted fixed costs = 72,000 Actual production of 5,500 un...
Q: Why do we need to pass the consolidation elimination entry every time we prepare a consolidated fina...
A: Consolidation elimination entry that eliminate duplicate revenue, expenses, receivables, and payable...
Q: The following information is available for the Danske Company: Denominator hours for May 20,000 Actu...
A: Actual Total Overhead = Variable overhead applied based on direct labor hours allowed + Fixed overhe...
Q: What would Mydeco's EPS have been each year in this case? Calculate the new EPS for 2016-2019 below:
A: Earnings per shares refers to the profit earned by each shareholder after paying all the expenses of...
Q: Abby invested P100,000.00. A part of it was invested in Business 101 at 4% yearly interest and anoth...
A: The question is based on the concept of Financial Management.
Q: Adhulik purchased second-hand machinery on 1.1.2018 for $38,000. On 1.1.2018 spent $12,000 on its re...
A: Depreciation referred as method which used to record assets after wear and tear of the assets due to...
Q: AB Company had 11,000, par P20 shares issued and outstanding on January 1, 2021. On March 15, the en...
A: A Stock Split takes place when the Companies want their shares to be more tradeable as well as affo...
Q: on in year 2, and P3 million in year 3. Assuming end of year payments of the proceeds of the contrac...
A: Number of compounding periods means the frequency by which the interest rate will be compounded. Mor...
Q: Anne York is a sole trader who started the business of buying and selling furniture in Brighton on t...
A: Introduction:- The act of recording or keeping track of any financial or non-financial action is kno...
I need to figure out from where the $ 3 dollar amount is coming from
The question is based on the concept of Cost Accounting.
Step by step
Solved in 2 steps
- Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.Event Forms expects $120,000 in overhead during the next year. It doesn't know whether it should apply overhead on the basis of its anticipated direct labor hours of 6,000 or its expected machine hours of 5,000. What would be the product cost under each predetermined allocation rate if the last job incurred $3,500 in direct material cost, 55 direct labor hours, and 55 machine hours? Wages are paid at $17 per hour.
- A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000Company XYZ uses machine hours to allocate its manufacturing overhead. The company estimates that total machine hours to be operated next year are 190,000 hours. The estimated variable overhead is $10 per hour and the estimated fixed overhead costs are $152,000. Calculate the predetermined overhead rate. Select one O a. $10.80 b. None of the answers given c S0.00 O d. $11.80 e s0.09K Company estimates that overhead costs for the next year will be $2,871,000 for indirect labor and $870,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 87,000 direct labor hours are planned for this next year, how much overhead would be assigned to a product requiring 4 direct labor hours? Multiple Choice $43.00 $33.00 $172.00 $132 00 None of the choices
- Company XYZ uses machine hours to allocate its manufacturing overhead. The company estimates that total machine hours to be operated next year are 190,000 hours. The estimat variable overhead is $9 per hour and the estimated fixed overhead costs are $152,000. Calculate the predetermined overhead rate. Select one: O a. $10.80 Ob. $9.80Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing costs: Direct materials Direct labor Supplies Utilities Depreciation Insurance Fixed Cost per Month $ 42,100 $ 1,200 $ 14,600 $ 11,400 For example, utilities should be $1,200 per month plus $0.25 per machine-hour. The company expects to work 4,000 machine- hours in June. Note that the company's direct labor is a fixed cost. Direct materials Direct labor Cost per Machine- Hour $ 5.50 Required: Prepare the company's planning budget for June. Wyckam Manufacturing Incorporated Planning Budget for Manufacturing Costs For the Month Ended June 30 Supplies Utilities Depreciation Insurance Total manufacturing cost $ 0.30 $ 0.25Chapter 6: A Closer Look on Cost Accounting The company makes 2,350 units of product X a year, requiring a total os 3.300 machine hours, 250 orders and 200 inspection hours per year. The product's direct material cost is P201.50 and its direct labor cost in P211.11 per unit. The product sells for P590 per unit. According to the activity-based costing system, the gross margin for product X is? 423,087.50 b. 350,435.50 c. 416,890 d. None of the choice a. 56. The following information is available for Mary Corp. Activity Pool Setups Quality Inspections Assembly (direct labor hour) What is the activity rate for setups? Activity Base 50,000 120,000 400,000 Budgeted Amount 300,000 600,000 2,000,000 a. P5.09 c. РО.75 d. P58.00 b. Рб.00 The activity rate for quality inspection is: с. Рб.00 d. P5.09 a. P5.29 b. P5.00
- 10. Ramona Diaz Ltd. produces two products, P1 and P2, at its two departments: Machining and Assembly, as shown in the table below. The accountant tries to allocate overhead costs to the two products. If the accountant decides to allocate overhead based on labor hours, what is P1’s share of the total overhead costs? $180,000 $200,000 $220,000 $240,000TB MC Qu. 14-77 Newton Manufacturing has... Newton Manufacturing has 71,900 labor hours available for producing M and N. Consider the following information: Required labor time per unit (hours) Maximum demand (units) Contribution margin per unit Contribution margin per labor hour Multiple Choice O If Newton follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate? O $41,600 $98,750. $99,150. $101,750. Product M None of the answers is correct. 7,100 $ 6.00 $ 1.50 Product N 5 9,100 $ 6.50 $ 1.30Assume that each year a company normally produces and sells 80,000 units of its only product for $40 per unit. The company's average unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 9.50 10.00 2.80 5.00 1.70 4.50 $ 33.50 One of the company's raw material suppliers is experiencing a shortage that will last for three months. The company can respond to this shortage in one of two ways over the next three months. It has enough raw materials on hand to enable it to continue operating at 25% of normal output. The second option is to close down the plant for three months. Under this option, the company could avoid 40% of the fixed manufacturing overhead costs that it would ordinarily incur during this three-month period. Furthermore, its fixed selling expenses would continue at 30% of their normal levels during the three-month…