BUSINESS COLLEGE

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $348,400 and direct labor hours would be 47,000. Actual manufacturing overhead costs incurred were $304,000, and actual direct labor hours were 52,400. The journal entry to apply the factory overhead costs for the year would include a

Answers

Answer 1
Answer:

Answer:

Journal Entry

Debit Work-in-Process $388,284

Credit Manufacturing Overhead $388,284

To record the application of factory overhead costs for the year.

Explanation:

a) Data and Calculations:

Estimated factory overhead costs = $348,400

Estimated direct labor hours = 47,000

Predetermined overhead rate = $7.41 ($348,400/47,000)

Actual overhead costs = $304,000

Actual direct labor hours = 52,400

Applied overhead costs = $388,284 (52,400 * $7.41)

b) The overhead applied to the production for the year will be the actual direct labor hours by the predetermined overhead rate.  This yields a cost that is greater than the actual overhead costs, which means that the manufacturing overhead was overapplied.  The cause of this situation is the number of actual direct labor hours worked vis-a-vis the actual overhead costs and the predetermined rate.

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4. You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an increase in inventory of $8700, an increase in accounts payables of $2300, and an increase in property, plant, and equipment of $48,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is ________.

Answers

Answer:

$6400

Explanation:

Working capital is the net of current asset and current liabilities. it is a financial measure that gives insight into how liquid a company is considering that it shows whether or not the current assets can be used to settle the current obligations or liabilities of the company adequately.

The change in property, plant, and equipment of $48,000 is not an element of working capital, Hence change in working capital

= $8700 - $2300

= $6400

TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit information relating to the manufacture and sale of this product. Unit sales price $ 30 Variable cost per unit 6 Fixed costs per year 360,000 a. Determine the contribution margin ratio. b. Determine the sales volume (in dollars) required to break even. c. Determine the sales volume (in dollars) required to earn an annual operating income of $440,000. d. Determine the margin of safety (in dollars) if annual sales total 60,000 units.

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Unit sales price $ 30

Variable cost per unit 6

Fixed costs per year 360,000

To calculate the contribution margin ratio, we need to use the following formula:

Contribution margin ratio= contribution margin / selling price

Contribution margin ratio= (30 - 6) / 30

Contribution margin ratio= 0.8

The break-even point in dollars formula is:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point in units= 360,000 / 0.8

Break-even point in units= $450,000

Now, the desired profit is $440,00:

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

Break-even point (dollars)= (360,000 + 440,000) / 0.8

Break-even point (dollars)= $1,000,000

Finally, the margin of safety:

Sales= 60,000*30= $18,000,000

Margin of safety= (current sales level - break-even point)

Margin of safety= 18,000,000 - 450,000

Margin of safety=  $17,550,000

Why don't consumers tend to get upset about tariffs?

Answers

Answer:

Tariffs are bans or taxes on stuff that gets imported and exported in and out of countries. This doesn't really affect consumers because they buy stuff and don't tend to notice. This does affect producers because they need supply to fill in the demand.

Note:

Hope this helps! Good Luck (^-^)

-kiniwih426

Answer:

Tariffs hurt consumers because it increases the price of imported goods. Because an importer has to pay a tax in the form of tariffs on the goods they are importing, they pass this increased cost onto consumers in the form of higher prices.

Explanation:

i dont know if this helps

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Answers

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Answer and Explanation:

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Answers

Answer and Explanation:

Given:

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Computation:

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Product Cost                         $20                 $90                 $50

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Per Unit Inventory Value      $20                 $90                 $50
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