Answer:
A sales manager is the person responsible for leading and coaching a team of salespeople. A sales manager's tasks often include assigning sales territories, setting quotas, mentoring the members of her sales team, assigning sales training, building a sales plan, and hiring and firing salespeople.
A firm in a perfectly competitive market has an average total cost of $40 for the 100th good it sells. Its fixed costs are $100. The average total cost of the 101th good is $41. If the market price is $50 this firm should g
Answer:
b. Sell only 100 goods because the marginal cost of the 101th exceeds marginal revenue
Explanation:
Options "Sell 101 goods because it adds to profit. Sell only 100 goods because the marginal cost of the 101th exceeds marginal revenue. Sell 101 goods because its fixed costs are so low. Sell 101 because price is greater than average total costs."
When it produces 100 units, total cost = average cost * units = $40 * 100 = $4,000.
When it produces 101 units, total cost = average cost * units = $41 * 101 = $4,141
So, the marginal cost of the 101st unit = $4,141 - $4,000 = $141. However, since the price is $50, the marginal revenue is $50.
So, the marginal cost of the 101st unit is higher than the marginal revenue.
Grab Manufacturing Co. purchased a 10-ton draw press at a cost of $172,000 with terms of 2/15, n/45. Payment was made within the discount period. Shipping costs were $4,600, which included $220 for insurance in transit. Installation costs totaled $11,100, which included $4,900 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the 10-ton draw press is:
Answer:
$184,260
Explanation:
Total cost of draw press is $172,000 and if it paid 15 days, there will be a discount of 2% and it is paid within the discount period
The discount is = $172,000 * 2/100 = $3,440
Total amount that would be capitalized is:
= ($172,000 - $3,440) + $4,600 + $11,100
= $168,560 + $4,600 + $11,100
= $184,260
So, the capitalized cost of the 10-ton draw press is $184,260
Note:
- The shipping costs and installation cost will be capitalized
- The cost of insurance in transit and cost incurred to remove a section of a wall will be capitalized as well as they are included in the cost above already
On January 1, 2019, Woodstock, Inc. purchased a machine costing $30,900. Woodstock also paid $1,700 for transportation and installation. The expected useful life of the machine is 5 years and the residual value is $4,600. How much is the annual depreciation expense, assuming use of the straight-line depreciation method
Answer:
Annual depreciation= $5,600
Explanation:
Giving the following information:
Total Purchase price= 30,900 + 1,700= $32,600
Useful life= 5 years
Residual value= $4,600
To calculate the depreciation expense under the straight-line method, we need to use the following formula:
Annual depreciation= (Total Purchase price - salvage value)/estimated life (years)
Annual depreciation= (32,600 - 4,600) / 5
Annual depreciation= $5,600
After a company chooses the modules they want to implement, they must decide on _______options, which allow the customer to customize the modules to fit their business to some extent
Answer:
The correct option is (b) Configuration
Explanation:
The configuration is an arrangement of the parts to make it as a whole. Also it is used to customize the modules. It could be used so that proper working could be done
As in the question it is given that after selecting the modules for implementation they have to decide the configuration so that it permits the customer to do the customization with related to the modules that fit into their business
Therefore the correct option is (b) Configuration
Given the following production data, calculate the equivalent units of production. (Answers must be entered as numbers only without spaces, dollar signs, commas, decimals, etc. Example: 50000) Production Flow Percent Complete Units Materials Conversion Work in process, beginning inventory 200 55% 30% Units started this period 5,000 Total units: 5,200 Completed and transferred units this period 4,800 100% Work in process, ending inventory 400 40%
Answer:
Weighted Average Equivalent Units Materials 4960 Conversion 5200
Fifo Equivalent Units Materials 4850 Conversion 5140
Explanation:
Normally weighted average method is used when not specified.
Production Flow Percent Complete
Units Materials Conversion
WIP beginning inventory 200 55% 30%
Units started this period 5,000
Total units: 5,200
Completed and transferred 4,800 100%
Work IP, ending inventory 400 40%
Using Weighted Average method for Equivalent Units we add the completed units with the ending inventory
Particulars Units Materials Conversion
Completed 4800 4800 4800
+ WIP Ending 400 160 400
Equivalent Units 4960 5200
Materials EWIP = 400*40%= 160
Conversion EWIP= 400*100 %=400
If we use FIFO method then we deduct the beginning inventory from the weighted average method equivalent unit production
Particulars Units Materials Conversion
Completed 4800 4800 4800
+WIP Ending 400 160 400
- BWIP 200 110 60
Equivalent Units 4850 5140
Materials BWIP = 200*55%= 110
Conversion EWIP= 200*30%= 60
why profit is maximized when MR=MC?
Answer:
Explanation written attached.
Explanation:
please give thanks, hope this helps
A self-insurance activity that is accounted for in an Internal Service Fund pays $365,000 in claims during the year. Because the Internal Service Fund is a proprietary fund, the claims will be reported on the statement of revenues, expenses, and change in net assets as A. An operating expense. B. As a contra-revenue to premiums charged. C. A non-operating expense. D. Another financing use. E. None of these answers is correct.
Answer:
A. An operating expense.
Explanation:
Since in the question it is mentioned that the self insurance activity i.e. accounted for an internal service fund that paid the amount of $365,000. Also as we know that the internal service fund is a proprietary fund so the claim should be reported as an operating expenses in the revenues, expenses and change in net asset statement
Therefore the correct option is a.
Assuming that money is worth 10%, compute the present value of:
a. $15,000 received 15 years from today.
b. The right to inherit $4,250,000 14 years from now.
c. The right to receive $11,000 at the end of each of the next six years.
d. The obligation to pay $10,000 at the end of each of the next 10 years.
e. The right to receive $9,000 at the end of the 7th, 8th, 9th, and 10th years from today.
Answer:
a. ($3,590)
b. ($1,119,158)
c. ($47,908)
d. ($61,446)
e. $17,714
Explanation:
We use the Time Value of Money to compute the Present Value. Present Value is the Worth in Today`s Money of the Cash Flow Streams expected or to be received in the future.
Calculation of the Present Value for each case is shown below :
a.
FV = $15,000
N = 15
P/YR = 1
PMT = $0
I = 10 %
PV = ?
Using a Financial Calculator to Inpute the Values as above, the Present Value will be ($3,590)
b.
FV = $4,250,000
N = 14
P/YR = 1
PMT = $0
I = 10 %
PV = ?
Using a Financial Calculator to Inpute the Values as above, the Present Value will be ($1,119,158)
c.
FV = $ 0
N = 6
P/YR = 1
PMT = $11,000
I = 10 %
PV = ?
Using a Financial Calculator to Inpute the Values as above, the Present Value will be ($47,908)
d.
FV = $ 0
N = 10
P/YR = 1
PMT = - $10,000
I = 10 %
PV = ?
Using a Financial Calculator to Inpute the Values as above, the Present Value will be ($61,446)
e.
$ 0 CFj
$ 0 CFj
$ 0 CFj
$ 0 CFj
$ 0 CFj
$ 0 CFj
$9,000 CFj
$9,000 CFj
$9,000 CFj
$9,000 CFj
Shift NPV $17,714
This part of the question has uneven Cash Flows, so i used the CFj Function on the Financial to calculate the Net Present Value (NPV)
On January 1, 2018, Crane Corporation issued $5400000, 10-year, 9% bonds at 102. Interest is payable annually on January 1. The journal entry to record this transaction on January 1, 2018 is
Answer and Explanation:
The journal entry is as follows;
Cash ($5,400,000 × 102%) $5,508,000
To Bonds Payable $5,400,000
To Premium on Bonds Payable $108,000
(Being issuance of the bond payable is recorded)
Here the cash is debited as it increased the assets and credited the bond payable and premium on bond payable as it increased the liabilities
Beginning balance of capital Rs. 40,000 and liabilities Rs. 10,000. Accounting equation
Answer:
Assets = Rs. 50,000
Explanation:
The accounting equation is expressed as below.
Assets= Liabilities + Owner’s Equity
If capital is Rs, 40,000 and liabilities, RS. 10,000, then assets will be
Assets = Rs. 40,000 + Rs, 10,000
Assets = Rs. 50,000
he Boxwood Company sells blankets for $37 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 3 Purchase 10 $15 10 Sale 4 17 Purchase 15 $17 20 Sale 5 23 Sale 3 30 Purchase 11 $24 Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the LIFO inventory cost method.
Answer:
The correct answer is $85
Explanation:
According to the given scenario, the calculation of the cost of the goods sold using the LIFO method is as follows:
= Sale units as on May 20 × price per unit
= 5 units × $17
= $85
Basically we multiplied the sales units with the price per unit so that the cost of goods sold could come
Hence, the cost of the goods sold using the LIFO method is $85
Tom's family and close friends have both a direct and indirect influence on his attitude and behavior when considering purchases. This is considered Tom's ________________________. Group of answer choices Role
Answer:
Reference group
Explanation:
A reference group is the group where there is a people that compared for ourselves irrespective of the part of the group or not. In this in understand the social norms that can shape our values, ideas, attitudes, behavior, etc
Since in the given question it is mentioned that Tom has both direct and indirect influence with respect to his attitude and behavior while when he considered the purchase so this represent the reference group
hence, the same is to be considered
Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Product Total Cost Total Net Realizable Value 101 $ 154,000 $ 117,000 102 111,000 127,000 103 77,000 67,000 104 47,000 67,000 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.
Answer:
Tatum Company
1. The carrying value of inventory at December 31, 2021 is:
$342,000
2. Adjusting Journal Entry:
Debit Inventory write-downs $47,000
Credit Inventory $47,000
To record the write-down of inventory value to LCNRV.
Explanation:
a) Data and Calculations:
Product Total Cost Total Net Reali- LCNRV Write-downs
zable Value
101 $ 154,000 $ 117,000 $ 117,000 $ 37,000
102 111,000 127,000 111,000 0
103 77,000 67,000 67,000 10,000
104 47,000 67,000 47,000 0
Total $ 389,000 $ 378,000 $ 342,000 $ 47,000
Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1, 2016. Alden financed $39,169,279, and the note agreement will require $10.07 million in annual payments starting on December 31, 2016 and continuing for a total of four more years (final payment December 31, 2020). Kenworthy will charge Alden Trucking Company the market interest rate of 9% compounded annually. After the first payment was made, the note payable liability on December 31, 2016 is closest to:___________
A) $29,099,279.
B) $34,134,279.
C) $40,280,000.
D) $32,624,514.
Answer:
D) $32,624,514.
Explanation:
Installments (A) = $10,070,000
Principal due (B) = $39,169,279
Interest Payment (C) =B x 9% = $39,169,279*9%
Interest Payment (C) = $3,525,235
Principal Payment (D) = A - C
Principal Payment (D) = $10,070,000 - $3,525,235
Principal Payment (D) = $6,544,765
Total Due (E) = B - D
Total Due (E) = $39,169,279 - $6,544,765
Total Due (E) = $32,624,514
So, after the first payment was made, the note payable liability on December 31, 2016 is closest to $32,624,514
A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $11 each or to produce them in-house. Either of two processes could be used for in-house production; Process A would have an annual fixed cost of $200,000 and a variable cost of $7 per unit, and Process B would have an annual fixed cost of $180,000 and a variable cost of $8 per unit. Determine the range of annual volume for which each of the alternatives would be best.
Answer:
If the firm is going to need less than 50,000 motors, they should purchase them from the outside vendor.
If the firm is going to use between 50,000 to 59,999 motors, it should use process A.
If the firm expects to use 60,000 or more motors per year, it should use process B.
Explanation:
Process A:
contribution margin per unit = $11 - $7 = $4
break even number of units = $200,000 / $4 = 50,000 units
Process B:
contribution margin per unit = $11 - $8 = $3
break even number of units = $180,000 / $3 = 60,000 units
A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Assuming a market rate of 3%, the bonds issue for $52,306. Calculate interest expense as of the first semiannual interest payment.
Answer:
interest payment would be $1,046.12
Explanation:
We calculate the Interest expense for the first semiannual interest payment by constructing the Bond amortization schedule.
To construct this amortization schedule we will collect the data as follows :
PV = - $52,306
PMT = ($52,306 × 4%) ÷ 2 = $1,046.12
P/yr = 2
N = 5 × 2 = 10
YTM = 3%
FV = $52,306
Using a Financial Calculator to input the values as above, the schedule can be constructed as
BOND AMORTIZATION SCHEDULE
Period Principle Interest Payment Balance
Start $52,306
1st $261.53 $784.59 $1,046.12 $52,044
Conclusion
Thus, interest payment would be $1,046.12
John decides to take his annual Christmas bonus of $2,000 and invest it each year for the next five years, in stock he believes can earn an 8% annual return. How much will John's investment be worth at the end of the five years
Answer:
FV= $11,733.20
Explanation:
Giving the following information:
Annual deposit= $2,000
Number of periods= 5 years
Interest rate= 8% = 0.08
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,000*[(1.08^5) - 1]} / 0.08
FV= $11,733.20
Straight Industries purchased a large piece of equipment from Curvy Company on January 1, 2019. Straight Industries signed a note, agreeing to pay Curvy Company $480,000 for the equipment on December 31, 2021. The market rate of interest for similar notes was 9%. The present value of $480,000 discounted at 9% for five years was $311,967. On January 1, 2019, Straight Industries recorded the purchase with a debit to equipment for $311,967 and a credit to notes payable for $311,967. How much is the 2020 interest expense, assuming that the December 31, 2019 adjusting entry was made
Answer:
$30,604
Explanation:
The computation of the interest expense for the year 2020 is as follows:
2019 interest expense is
= Equipment amount × rate of interest
= $311,967 × 9%
= $28,077
The Dec 31 2019 liability of book value is
= $311,967 + $28,077
= $340,044
Now the interest expense for the year 2020 is
= $340,044 × 0.09
= $30,604
Ivanhoe Industries collected $104,000 from customers in 2020. Of the amount collected, $24,800 was for services performed in 2019. In addition, Ivanhoe performed services worth $41,600 in 2020, which will not be collected until 2021. Ivanhoe Industries also paid $72,200 for expenses in 2020. Of the amount paid, $30,200 was for expenses incurred on account in 2019. In addition, Ivanhoe incurred $40,800 of expenses in 2020, which will not be paid until 2021.
Answer:
Accrual-basis net income in 2020 = $38,000
Explanation:
Note: This question is not complete as its requirement is omitted. The complete question is therefore provided before answering the question as follows:
Ivanhoe Industries collected $104,000 from customers in 2020. Of the amount collected, $24,800 was for services performed in 2019. In addition, Ivanhoe performed services worth $41,600 in 2020, which will not be collected until 2021. Ivanhoe Industries also paid $72,200 for expenses in 2020. Of the amount paid, $30,200 was for expenses incurred on account in 2019. In addition, Ivanhoe incurred $40,800 of expenses in 2020, which will not be paid until 2021. Compute 2020 accrual-basis net income.
The explanation of the answer is now provided as follows:
In accounting, accrual basis states that revenues should be recorded when they are earned and expenses should be recorded when they are incurred.
Based on this, the 2020 accrual-basis net income of Ivanhoe Industries can be computed as follows:
Total revenue in 2020 = (Amount collected in 2020 - Amount for Services performed in 2019) + Worth of services performed in 2020 but to be collected in 2021 = ($104,000 - $24,800) + $41,600 = $120,800
Total expenses in 2020 = (Amount paid for expenses in 2020 - Amount of expenses incurred in 2019) + (Amount of expenses incurred in 2020 but to be paid in 2021) = ($72,200 - $30,200) + $40,800 = $82,800
Accrual-basis net income in 2020 = Total revenue in 2020 - Total expenses in 2020 = $120,800 - $82,800 = $38,000
jefferson recently paid an annual dividend of $2 per share. the dividend is expecte to decrease by 1% each year. how much should you pay for this stock today if your required
Answer: $11.65
Explanation:
You did not include the required return so I will assume a required return of 16% and you can use that as reference.
Using the Gordon Growth model, the intrinsic value is;
= Next dividend / ( required return - growth rate)
Growth rate = -1%
Next dividend = 2 * ( 1 + growth)
= 2 * (1 - 1%)
= $1.98
Value of stock = 1.98 / (16% + 1%)
= $11.65
Chapel Hill Company had common stock of $350,000 and retained earnings of $490,000. Blue Town Inc. had common stock of $700,000 and retained earnings of $980,000. On January 1, 2011, Blue Town issued 34,000 shares of common stock with a $12 par value and a $35 fair value for all of Chapel Hill Company's outstanding common stock. This combination is accounted for as an acquisition. Immediately after the combination, what was the consolidated net assets
Answer: $2,870,000
Explanation:
Based on the information given in the question, the consolidated net assets will be calculated as:
= ($34,000 × 35) + $700,000 + $980,000
= $1,190,000 + $700,000 + $980,000
= $2,870,000
Therefore, the the consolidated net assets is $2,870,000.
If the marginal rate of technical substitution for a cost minimizing firm is -10, and the wage rate for labor is $5, what is the rental rate for capital in dollars
Answer:
$ -0.5
Explanation:
From the information given:
The marginal rate of technical submission MRTS = -10
Wages W = $5
The marginal rate of technical submission MRTS = Wages/ Rental rate of capital
∴
Rental rate of capital = Wages/marginal rate of technical submission MRTS
Rental rate of capital = 5/-10
Rental rate of capital = $ -0.5
Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 728,000 units of basic, 524,000 units of classic, and 250,000 units of deluxe. Bricktan has a limited production capacity of 142,000 hours. It can produce 10 units of basic, 8 units of classic, and 4 units of deluxe per hour. Contribution margin per unit is $15 for the basic, $25 for the classic, and $55 for the deluxe. What is the most profitable sales mix for Bricktan Inc.?
a) 72,800 basic, 524,000 classic and 500,000 deluxe.
b) 280,000 basic, 250,000 classic and 500,000 deluxe.
c) 274,000 basic, 500,000 classic and 250,000 deluxe.
d) 1,120,000 basic, 0 classic and 250,000 deluxe.
e) 140,000 basic, 524,000 classic and 250,000 deluxe.
Answer:
For most profitable sales mix Basic Classic Deluxe
Units produced for
most profitable sales mix 72,800 524,000 250,000
Explanation:
The computation is shown below;
Particulars Basic Classic Deluxe
Contribution margin per unit $15 $25 $55
Production units per hour 10 8 4
Contribution margin per
production hour $150 $200 $220
Order III II I
Particulars Basic Classic Deluxe Total
Maximum number of units
to be sold 728,000 524,000 250,000 1,502,000
Hours needed to generate
the maximum units 72,800 65,500 62,500 200,800
For most profitable sales mix Basic Classic Deluxe Total
Hours dedicated
to the production
of each product 7,280 65,500 62,500 135,280
(728,000 × 1 ÷ 10) (524,000 × 1 ÷ 8) (250,000 × 1 ÷ 4)
Units produced for
most profitable sales mix 72,800 524,000 250,000
This is the correct answer but the same is not provided in the given options
Accounts receivable arising from sales to customers amounted to $84,000 and $74,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $320,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
Answer:
$330,000
Explanation:
Change in WC = Opening receivables - Closing receivables
Change in WC = $84,000 - $74,000
Change in WC = $10,000
The decrease in working capital is $10,000
Cash from operating activities = Net income + Decrease in Working Capital
Cash from operating activities = $320,000 + $10,000
Cash from operating activities = $330,000
Thus, the cash from operating activities is $330,000
The Jordan Company is considering purchasing a new machine which will have fixed costs of $100,000 per year. The operating cash flow at a production level of 10,000 units is $400,000. If units sold increase from 10,000 to 15,000 units, what will the operating cash flow be at the 15,000 unit level
Answer:
$650,000
Explanation:
Operating cash flow = Total sales - Total variable cost - Fixed cost
Operating cash flow = Contribution - Fixed cost
Contribution = Total sales - Total variable cost. Let x be the contribution per unit
For 10,000 units
400,000 = 10,000x - 100,000
x = 500,000/10,000
x = 50
Contribution per unit = $50
Fore 15,000 units
Operating cash flow = 15,000(x) - 100,000
Operating cash flow = 15,000(50) - 100,000
Operating cash flow = 750,000 - 100,000
Operating cash flow = $650,000
On December 30, 2018, Varsity Corporation sold available for sale marketable securities costing $800,000 for $860,000 cash. The securities were purchased on January 2, 2016 and the market value of the securities on December 31, 2016 and December 31, 2017 was $820,000 and $780,000, respectively. How much gain or loss will Varsity report in its income statement for the year ending December 31, 2018
Answer:
The gain reported is $60,000
Explanation:
The computation of the gain or loss reported is as follows;
Book value as on December 31 2017 $780,000
Add: balance of unrealized loss ($40,000 loss - $20,000 gain) $20,000
Total $800,000
Gain (sale value - total) ($860,000 - $800,000) $60,000
hence, the gain reported is $60,000
Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected to generate free cash flows of $1.5 million per year, growing at a rate of 2.5% per year. Goodyear has an equity cost of capital of 8.5%, a debt cost of capital of 7%, a marginal corporate tax rate of 35%, and a debt-equity ratio of 2.6. If the plant has average risk and Goodyear plans to maintain a constant debt-equity ratio, what after-tax amount must it receive for the plant for the divestiture to be profitable
Answer:
$47.77 million
Explanation:
We can calculate levered value of the plant using Weighted Average Cost of Capital
rWACC = E/E+D*rE + D/E+D*rd(1-rc)
Equity cost of capital (rE) = 8.5%, Debt cost of capital (rc) = 7%, Marginal corporate tax rate (tc) = 35%, Debt equity ratio = 2.6
Goodyear's WACC = 1/1+2.6*8.5% + 2.6/1+2.6 * 7% *(1-35%)
= 0.0236 + 0.0328
= 0.0564
= 5.64%
The free cash flow of $1.5 million growing at a rate of 25% per year for the plant can be valued as a growing perpetuity.
Divestiture(Vl) calculation is as follows
Vl = Cash flow / rWACC - G
Vl = 1.5 million / 5.64% - 2.5%
Vl = 1.5 million / 3.14%
Vl = $47.77 million
So, Goodyear Tire and Rubber Company must receive $47.77 million for the divestiture to be profitable.
QUESTION 1 Buchanan Corp. forecasts the following payoffs from a project: Outcome Probability of Outcome Assumptions $ 1,100 25 % pessimistic 2,300 55 % moderately successful 5,800 20 % optimistic What is the expected value of the outcomes?
Answer:
$2,700
Explanation:
Calculation for the expected value of the outcomes
Using this formula
Expected value=respective outcome*Respective probability
Let plug in the formula
Expected value=(0.25*1100)+(0.55*2300)+(0.20*5800)
Expected value=$275+$1,265+$1,160
Expected value=$2,700
Therefore the expected value of the outcomes will be $2,700
is considering permanently shiutting down a department that has an annual contribution margin of $25,000 and $75,000 in annual fixed costs. Of the fixed costs, $19,500 cannot be avoided. What would the annual financial advantage (disadvantage) for corp. if the company shuts down the department
Answer:
Avoidable fixed costs = $75,000 - $19,500 = $55,500
Segment margin = Contribution margin - Avoidable fixed costs
Segment margin = $25,000 - $55,500
Segment margin = -$30,500
If the department were eliminated, the company would eliminate the department's negative segment margin of $30,500
The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,050. A total of 39 direct labor-hours and 261 machine-hours were worked on the job. The direct labor wage rate is $20 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $22 per machine-hour. The total cost for the job on its job cost sheet would be:
Answer:
Total cost= $8,572
Explanation:
First, we need to calculate the direct labor and allocated overhead:
Direct labor cost= 39*20= $780
Allocated overhead= 22*261= $5,742
Now, we can determine the total cost:
Total cost= direct material + direct labor + allocated overhead
Total cost= 2,050 + 780 + 5,742
Total cost= $8,572