Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labon hours. Actual manufacturing overhead was $415,000, actual labor hours were 21,000. To dispose of the balance in the manufacturing overhead account, which of the following would be correct?

a. Cost of Goods sold would be credited for $5,000.
b. Cost of Goods Sold would be debited for $5,000.
c. Cost of Goods Sold would be credited for $15,000.
d. Cost of Goods Sold would be debited for $15,000.

Answer:

If overhead was overapplied, then the COGS should be debited overhead.

The correct answer is B.

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 400,000 / 20,000

Predetermined manufacturing overhead rate= $20 per DLH

Now, we allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 20*21,000

Allocated MOH= $420,000

Finally, the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 415,000 - 420,000

Overapplied overhead= $5,000

If overhead was overapplied, then the COGS should be debited overhead.

Because this market is a monopolistically competitive market, the firm's average cost in long-run equilibrium is the long-run average cost it would achieve as a firm operating in a perfectly competitive market. The production level of a monopolistically competitive firm in long-run equilibrium is the production level of a perfectly competitive firm. This difference in output is predicted by the

Consumers' Willingness to Pay Musashi: $25 Jacques: $40 Kyoko: $35 Rina: $10 Firms' Costs Firm A: $15 Firm B: $30 Firm C: $20 Firm D: $10 Each firm has the capacity to produce only one haircut. For efficiency, should be given. Which businesses should cut hair

Assume that Nortel manufactures specialty electronic circuitry through a unique photoelectronic process. One of the primary products, Model ZX40, has a standard labor time of 0.5 hour and a standard labor rate of $12.50 per hour. During February, the following activities pertaining to direct labor for ZX40 were recorded:

Direct labor hours used 2,230
Direct labor cost $34,000
Units of ZX40 manufactured 4,800

Required:
a. Determine the labor rate variance.
b. Determine the labor efficiency variance.
c. Determine the total flexible budget labor cost variance.

Item 12 Firm X is being acquired by Firm Y for $35,000 cash which is being provided by retained earnings. The synergy of the acquisition is $5,000. Firm X has 2,000 shares of stock outstanding at a price of $16 a share. Firm Y has 10,200 shares of stock outstanding at a price of $46 a share. What is the value of Firm Y after the acquisition

Journalize the entries to record the following transactions for Mountain Realty Inc.:
Aug.26 Issued for cash 128,000 shares of no-par common stock The stock outstanding when a corporation has issued only one class of stock. (with a stated value of $5) at $6.
Oct.1 Issued at par value 41,000 shares of preferred 1% stock, $10 par The monetary amount printed on a stock certificate. for cash.
Nov. 30 Issued for cash 17,000 shares of preferred 1% stock, $10 par at $11

The Timberlake Company has the following information for August:

Cost of direct materials used in production $25000
Direct labor 35000
Factory overhead 20000
WIP, August 1 30000
WIP, August 31 25000

Requried:
a. Cost of goods manufactured
b. Cost of goods sold

Culler Construction Company agreed with the City of Orange Key to build a road. The project was to begin on December 1. One week after the work began, a hurricane struck the site, washing away so much land that the construction would be twice as expensive. As a result, Culler refused to continue the job, unless Orange Key paid a large sum in addition to the initial contract price. A promise by Orange Key to pay more than the original price is:_______

Demand is forecast for the next five months as 200, 300, 500, 300, 200. If the production planner decides to adopt a level strategy over the next five months, what quantities of products should be produced?

Journalize the following transactions.a. On December 1, $13,250 was received for a service contract to be performed from December 1 through April 30. b. Assuming the work is performed evenly throughout the contract period, journalize the adjusting entry required on December 31.

Example of Coping StrategiesYou have an employee who copes with stressful problems by burying his head in the sand and pretending the problem does not exist. You are concerned this approach just delays the inevitable and want him to cope in a way that better addresses the problem head on. Which of the following would be a problem-focused coping strategy?A. Join a support group.B. Adopt a "glass is half full not empty" mentality.C. Hit a punching bag to release the frustration.D. Ask a coworker to help lighten the load.

As a manager, Alejandro views his organization primarily as people and believes strongly in treating team members well to help them succeed. Which of the following orientations best describes Alejandro's leader orientation?

a. Symbolic orientation.
b. Human Resource orientation.
c. Structural orientation
d. Political orientation.

Compute the future value of a $105 cash flow for the following combinations of rates and times.

a. r = 8%; t = 10 years
b. r = 8%; t = 20 years
c. r = 4%; t = 10 years
d. r = 4%; t = 20 years

A market Group of answer choices always requires face-to-face contact between buyer and seller. reflects upsloping demand and downsloping supply curves. is an institution that brings together buyers and sellers. entails the exchange of goods, but not services.

Which of the following is true of public goods? Question 9 options: a) The market mechanism helps to signal the quantity that is demanded by the public. b) The public sector is guided to produce the correct quantity by market prices. c) Consumption by one person does not preclude consumption of the same good by another person. d) Payment for consumption is efficiently provided by market prices.

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Brian and Crystal Alden live in Swarthmore, PA. Their son, Edison, owns his own plumbing business.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M).
Check all that apply.
Transaction C I G X M
Crystal gets a new video camera made in the United States.
Brian's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China.
Brian buys a sweater made in Guatemala.
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
Edison buys a new set of tools to use in his plumbing business.

Bell Corporation reports that at an activity level of 8,700 units, its total variable cost is $653,109, and its total fixed cost is $658,416.
Required: For the activity level of 8,800 units, assume this level is within the relevant range. Compute: the total variable cost, the total fixed cost, the total cost, the average variable cost per unit, the average fixed cost per unit, and the average total cost per unit.
There is not a word length requirement for this question; however, you must show your work.

A bond pays annual interest its coupon rate is 9.2% lts value at maturity is $1,000. lt matures in 4 years. Its yield to maturity is currently 6.2%.What is the duration of this bond in years.A. 3.11B. 4.00C. 3.55D. 3.34

Assume the risk-free rate is 4%. You are a financial advisor, and must choose one of the funds below to recommend to each of your clients. Whichever fund you recommend, your clients will then combine it with risk-free borrowing and lending depending on their desired level of risk.

Expected Return Volatility
Fund A 10% 10%
Fund B 15% 22%
Fund C 6% 2%

Required:
a. Which fund would you recommend to a client seeking the highest possible expected return with a maximum volatility of 22%?
b. Which fund would you recommend to a client seeking the highest possible expected return with a maximum volatility of 22%?
c. Which fund would your recommend without knowing your clients risk preference?

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Auto Industries Company reported the following on its income statement:
Income before income taxes $420,000
Income tax expense (120,000)
Net income $300,000
If the income statement also shows interest expense equal to $80,000, what is the company's times interest earned ratio?
a. 5 times.
b. 6.25 times.
c. 5.25 times.
d. 8 times.

During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $229,134 instead of the correct amount of $165,639. The effect on the balance sheet and income statement would be

Identify the following costs as fixed or variable:
Costs related to plane trips between Boston, Massachusetts, and San Diego, California, follow. Pilots are paid on a per-trip basis.
a. Pilots’ salaries relative to the number of trips flown.
b. Depreciation relative to the number of planes in service.
c. Cost of refreshments relative to the number of passengers.
d. Pilots’ salaries relative to the number of passengers on a particular trip.
e. Cost of a maintenance check relative to the number of passengers on a particular trip.
f. Fuel costs relative to the number of trips.

A new coffee machine costs $50,850 and the finance office has quoted you an Annual Percentage Rate (APR) of 5.9%, compounded monthly, for 36 months. What is the Effective Annual Rate (EAR)?

Iron Man Foundry produces multiple products, one of which is casting a hose nozzle. The daily demand for these nozzles is 1,000 units per day. If Iron Man currently operates one shift of eight hours what would be the Takt time

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a. As an adjustment to retained earnings since it is applicable to prior periods.
b. In the year of the defeasance.
c. Over the remaining life of the old bonds or the new bonds whichever is shorter
d. It should not be recognized

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A) Ellen is correct.
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E) Ellen is incorrect.

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Crystal Corporation makes $3,100 payments every month for leasing office equipment. Crystal recorded a lease payment as follows: Lease payable 1,860 Interest expense 1,240 Cash 3,100 Amortization expense 1,860 Right-of-use asset 1,860 Crystal must have a(n):