Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $396,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period: Department DLH Loans Processed Direct Costs Consumer 14,000 700 $ 280,000 Commercial 8,000 300 $ 180,000 Banc Corp. Trust estimates that it costs $400 to analyze and close a commercial loan. What is the overhead rate if Banc Corp. Trust allocates the remaining indirect costs using direct labor hours? Multiple Choice a. $12.55 per hour.
b. $18.00 per hour.
c. $1,000 per loan.
d. $800 per loan.
Answers
Answer:
overhead rate = 18 per hours
Explanation:
given data
indirect costs = $396,000
Department DLH Loans Processed Direct Costs
Consumer 14,000 700 $280,000
Commercial 8,000 300 $180000
to find out
overhead rate
solution
we get here overhead rate that is express as
overhead rate = ...............1
put here value
overhead rate =
overhead rate = 18 per hours
Related Questions
Assume that product Alpha and product Beta are both priced at $1 per unit and that Ellie has $20 to spend on Alpha and Beta. She buys 8 units of Alpha and 12 units of Beta. The marginal utility of Alpha is 40 and the marginal utility of Beta is 20. This indicates that: A.Ellie should make no change in consumption B.Given another dollar, Ellie should buy an additional unit of Beta C.In order to maximize utility, Ellie should buy more of Beta and less of Alpha D.In order to maximize utility, Ellie should buy more of Alpha and less of Beta
The common stock of Flavorful Teas has an expected return of 19.65 percent. The return on the market is 14.5 percent and the risk-free rate of return is 4.2 percent. What is the beta of this stock?
Abel Corp. is a wholesaler for Global Electric in the French market. Global Electric discovered that Abel Corp. was diverting some of its goods to the English market. Abel could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. What is Abel engaged in?
A firm's dividend payments less any net new equity raised is referred to as the firm’s:a. operating cash flow.b. capital spending.c. net working capital.d. cash flow from creditors.e. cash flow to stockholders.
B. Four months.
C. Six months.
D. Seven months.
Answers
Answer:
D. Seven months.
Explanation:
Bond is defined as a debt instrument that shows the indebtedness big the bond issuer to the bond holder. They are units of cooperates debt issued by companies and they are tradeable. For example corporate bond and municipal bonds.
When a bond is issued on June 1 , with repayment of October 1 and April 1. The interest expense by October will be for 4 months.
However as at December 31, 2009 the accrued interest that will be recognised will be for October to December (that is for 3 months). Though it has not been paid it will be recognised at the end of the accounting period.
This gives a total of 7 months interest expense.
Answers
Answer:
a. 2,800,000 shares
b. $49.50
Explanation:
a. Poison is a tactic used by a company threatened with an unwelcome takeover bid to make itself unattractive to the bidder
Shares that the unfriendly outside group must acquire for the poison pill to go into effect is
= 20% of 14,000,000 shares.
= 14,000,000 × 20%
= 2,800,000 shares
b. The new purchase price for the existing stockholders will be
=$66 × (1 - 0.25)
= $49.50
B. the government makes collusion unnecessary with government-imposed barriers to entry because monopolies enhance economic efficiency.
C. the government encourages collusion with subsidies because resulting profits can be used to develop new products.
D. the government promotes collusion with the Federal Trade Commission because perfectly competitive markets enhance economic efficiency.
E. the government makes collusion illegal with antitrust laws because monopolies reduce economic efficiency.
Answers
Answer:
The correct answer is letter "E": the government makes collusion illegal with antitrust laws because monopolies reduce economic efficiency.
Explanation:
Antitrust laws regulate competition between companies. To protect consumers from price manipulation and unfair competition by making sure trade remains unrestrained. When businesses conspire to turn competition to their favor, they violate antitrust laws.
Those regulations prohibit business practices such us monopolies since those types of organizations take control over a certain market, making almost impossible the entry of competitors and consumers have fewer choices and higher prices.
Answers
Answer:
See explanations below.
Explanation:
First , we need to calculate net income
Revenues :
Service revenue $10,800
Less : Expenses:
Salary expense $1,900
Rent expense $550
Total expense. ($2,450)
Net income. $8,350
a. Winfrey Towing Service
Statement of retained earnings
Month ended, June 30 2018
Retained earnings June 1, 2018 $3,900
Add net income for the month $8,350
$12,250
Less: Dividends ($4,000)
Retained earnings June 30, 2018 $8,250
b. Statement of retained earnings report is the change in retained earnings of a firm or business unit during a given period of time.
Answers
Answer:
Clayborn Company
The adjusted cash account balance (debit) should be:
$23,150
Explanation:
a) Data and Calculations:
Cash account balance (debit) $24,525
Bank Statement balance $21,800
Reconciliation issues:
Deposit in transit $ 7,450
Outstanding checks $ 6,100
Bank service fees, not yet recorded by company $ 100
A NSF check from a customer, not yet recorded by the company $ 1,275
b) Adjusted Cash balance:
Cash account balance (debit) $24,525
NSF check (1,275)
Bank service fees (100)
Adjusted cash balance (debit) $23,150
c) Adjusted Bank Statement balance:
Bank Statement balance $21,800
Deposit in transit 7,450
Outstanding checks (6,100)
Adjusted bank statement $23,150
Final answer:
The adjusted cash balance is calculated by adjusting the company's book balance for deposits in transit and outstanding checks, and then subtracting the bank service fees and the amount of the NSF check. The final adjusted cash balance for Clayborn Company on May 31 is $24,500.
Explanation:
To determine the adjusted cash balance for Clayborn Company, we must consider the cash balance according to the company's books, the deposit in transit, the outstanding checks, the bank service fee, and the NSF check. The books report a debit balance of $24,525, but we need to adjust this amount for the deposit in transit and the outstanding checks. Adding the deposit in transit of $7,450 gives us $31,975. Subtracting the outstanding checks of $6,100 results in an adjusted balance of $25,875.
Next, we have to account for the bank service fees and the NSF check from a customer, both of which were not yet recorded by the company. The bank service fees of $100 and the NSF check of $1,275 decrease our balance, so subtracting these from the $25,875 gives us the final adjusted cash balance of $24,500.
Learn more about Adjusted Cash Balance here:
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Debit Credit
Cash $25,900
Prepaid Insurance 10,800
Supplies 8,900
Land 22,000
Buildings 122,000
Equipment 18,000
Accounts Payable $10,800
Unearned Rent Revenue 10,900
Mortgage Payable 62,000
Common Stock 99,300
Retained Earnings 9,000
Dividends 5,000
Rent Revenue 78,200
Salaries and Wages Expense 44,800
Utilities Expenses 9,200
Maintenance and Repairs Expense 3,600
$270,200 $270,200
Other data:
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020.
2. An inventory count on August 31 shows $443 of supplies on hand.
3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost.
4. Unearned Rent Revenue of $3,472 was earned prior to August 31.
5. Salaries of $392 were unpaid at August 31.
6. Rentals of $873 were due from tenants at August 31.
7. The mortgage interest rate is 8% per year.
A. Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31.
No. Date Account Titles and Explanation Debit Credit
1. Aug. 31
2. Aug. 31
3a. Aug. 31
3b. Aug. 31
4. Aug. 31
5. Aug. 31
6. Aug. 31
7. Aug. 31
B. Prepare an adjusted trial balance on August 31.
Answers
Answer:
A. Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31.
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020.
prepaid insurance expense per month = $10,800 / 12 = $900 x 3 months = $2,700
Dr Insurance expense 2,700
Cr Prepaid insurance 2,700
2. An inventory count on August 31 shows $443 of supplies on hand.
supplies expense = $8,900 - $443 = $8,457
Dr Supplies expense 8,457
Cr Supplies 8,457
3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost.
depreciation expense per month:
buildings = ($122,000 x 90%) x 4% x 1/12 = $366 x 3 = $1,098
equipment = ($18,000 x 90%) x 10% x 1/12 = $135 x 3 = $405
Dr Depreciation expense 1,503
Cr Accumulated depreciation building 1,098
Cr Accumulated depreciation equipment 405
4. Unearned Rent Revenue of $3,472 was earned prior to August 31.
Dr Unearned revenue 3,472
Cr Rent revenue 3,472
5. Salaries of $392 were unpaid at August 31.
Dr Wages expense 392
Cr Cash 392
6. Rentals of $873 were due from tenants at August 31.
Dr Accounts receivable 873
Cr Rent revenue 873
7. The mortgage interest rate is 8% per year.
interest expense per month = $62,000 x 8% x 1/12 = $413.33 x 3 = $1,240
Dr Interest expense 1,240
Cr Interest payable 1,240
B. Prepare an adjusted trial balance on August 31.
first we must calculate the quarter's profit:
Rent Revenue $82,545
Salaries and Wages Expense ($45,192)
Utilities Expenses ($9,200)
Maintenance and Repairs Expense ($3,600)
Insurance expense ($2,700)
Supplies expense ($8,457)
Depreciation expense ($1,503)
Interest expense ($1,240)
net income = $10,653
retained earnings = $9,000 - $5,000 + $10,653 = $14,653
Kingbird Resort
Balance Sheet
For the Year Ended August 31, 202x
Assets:
Cash $25,508
Accounts receivable $873
Prepaid Insurance $8,100
Supplies $443
Land $22,000
Buildings $120,902
Equipment $17,595
Total assets: $195,421
Liabilities and Stockholders' Equity:
Accounts Payable $10,800
Unearned Rent Revenue $7,428
Interest payable $1,240
Mortgage Payable $62,000
Common Stock $99,300
Retained Earnings $14,653
Total liabilities and stockholders' equity: $195,421