Before prorating the manufacturing overhead costs at the end of 2020, the Cost of Goods Sold and Finished Goods Inventory accounts had applied overhead costs of $59,300 and $38,000 in them, respectively. There was no Work-in-Process at the beginning or end of 2020. During the year, manufacturing overhead costs of $92,000 were actually incurred. The balance in the Applied Manufacturing Overhead was $97,300 at the end of 2020. If the under or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts, how much will be allocated to the Finished Goods Inventory
Answers
Answer:
$2069
Explanation:
Given
Applied overhead costs of Goods sold = $59,300
Applied overhead cost of finished goods = $38,000
Overhead Balance = $97,300
Overhead Cost = $92,000
Overapplied Overhead = Overhead Balance - Overhead Cost
Overapplied Overhead = $97,300 - $92,000
Overapplied Overhead = $5,300
Allocated Amount = (Applied Overhead * Finished Goods /(Overapplied Overhead)
Allocated Amount = ($5,300 * $38,000) ($59,300 + $38,000)
Allocated Amount = ($5,300 * 38,000) (97,300)
Allocated Amount = $2069
Answer:
The over applied overhead which is allocated to finished goods inventory is $ 1,488.54
Explanation:
Determination of over or under applied overhead
Applied Manufacturing overhead $ 97,300
Actual factory overhead incurred $ 92,000
Overapplied manufacturing overhead $ 5,300
Allocation of over applied overhead is on basis of values in Cost of goods sold and Finished goods inventory.
Cost of goods Sold $ 59,300
Finished Goods inventory $ 38,000
Sum of COGS and Inventory $ 97.300
Over applied Overhead $ 5,300
Allocation Finished Goods inventory
$38,000/ $ 97,300 * $ 5,300 = $ 1,488,54
Allocation Cost of Goods sold
$ 59.300/ $ 97,300 * $ 5,300 = $ 3.811.46
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Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $244,200 and 9,200 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $245,000 and actual direct labor-hours were 6,100. The overhead for the year was: (Round your intermediate calculations to 2 decimal places.)
Which of these statements about corporate bonds is correct?
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The buying culture of a place refers to the factors that influence the purchase of goods and services in an environment. The buying culture in my hometown is the value-added culture. This is because the people in my hometown purchase goods and services mainly when they feel that there is a problem it will help them solve.
- The value-added buying culture is that wherein the buyer senses that a product will help them to solve a problem that plagues them.
- For example, most people in my hometown only go to the pharmacy and clinic when they are sick.
- They do not believe in the idea of occasional check-up because they think that it is a waste of money.
- Therefore, goods are purchased only when they are crucially needed.
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Answer:
Explanation:
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Answers
Answer:
486 units
Explanation:
Final answer:
The equivalent units of production for materials is calculated by adding the fully completed units to the proportion of the unfinished units that are complete for materials. Thus, in this case, that would be 450 (completed units) + [60 (ending WIP inventory) * 20% (proportion complete for materials)] = 462.
Explanation:
In the field of cost accounting, equivalent units of production refer to the number of units that could have been completed in a period given the amount of work that was actually done.
In this case, Department 1 transferred out 450 units, and the ending work in progress inventory was 60 units that were 20% complete for materials.
To calculate the equivalent units of production for materials, you need to add the fully completed units to the proportion of the unfinished units that are complete for materials.
Hence, = 450 (completed units) + [60 (ending WIP inventory) * 20% (proportion complete for materials)] = 450 + 12 = 462.
Therefore, the equivalent units of production for materials is 462.
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Answers
Answer: 161.1%
Explanation:
Given that,
Direct labor costs for Chester = $32,680
Labor costs could have been $20,000 higher
Productivity index shows the ratio between the labor costs with improvements and labor costs without improvement in production.
Productivity Index =
=
= 161.1%
Final answer:
The productivity index for Chester, which measures the savings in labor costs due to productivity improvements, is approximately 62.06%. This suggests that, without the investments in training, Chester's labor costs would have been about 38% higher.
Explanation:
In order to calculate the productivity index for Chester, we need to understand that the productivity index essentially measures the savings in labor costs resulting from production improvements, expressed as a percentage. In this particular case, Chester was able to save $20,000 in labor costs due to investments in productivity-enhancing training.
The original direct labor costs for Chester was $32,680. Had Chester not made any productivity improvements, the labor costs would have been $32,680 plus an additional $20,000, for a total of $52,680. Therefore, the productivity index is calculated by dividing the original labor cost by what the labor cost would have been without the productivity improvements, and multiplying by 100, as follows: ($32,680 / $52,680) * 100. This equation gives a productivity index of approximately 62.06%. This means that Chester's labor costs would have been approximately 38% higher without the productivity improvements.
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Answers
Answers
Answer:
The correct answer is letter "B": flextime plan.
Explanation:
A flextime plan consists in linking production hours with the availability of the individuals involved in a project or work. The different timeframes of availability do not affect the operations' peak hours either the total amount of hours those individuals must work in day or week.
The flextime plan aims to provide individuals the flexibility to choose the working schedule that matches better with their personal activities which may increase their commitment to the firm and productivity.
$2,000 unfavorable.
$2,000 favorable.
$8,000 favorable.
$6,000 unfavorable.
Answers
Answer:
The correct answer is B.
Explanation:
Giving the following information:
At the normal capacity of 16,000 units, budgeted manufacturing overhead is $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced.
Variable overhead rate= 64,000/16,000= $4
Overhead variance= real - allocated
Overhead variance= 250,000 - (4*18,000 + 180,000)= 250,000 - 252,000= 2,000 favorable