Alberton Electronics makes inexpensive GPS navigation devices and uses a normal cost system that applies overhead based on machine hours. The following current year budgeted data are available:

Variable factory overhead at 100,000 machine hours $2,750,000
Variable factory overhead at 150,000 machine hours 4,125,000

Fixed factory overhead at all levels between 10,000 and 180,000 machine hours 3,168,000
Practical capacity is 180,000 machine hours; expected capacity is two-thirds of practical.

Required:
a. What is Alberton Electronics’ predetermined VOH rate?
b. What is the predetermined FOH rate using practical capacity?
c. What is the predetermined FOH rate using expected capacity?
d. During 2013, the firm records 110,000 machine hours and $2,710,000 of overhead costs. How much variable overhead is applied? How much fixed overhead is applied using the rate found in (b)? How much fixed overhead is applied using the rate found in (c)? Calculate the total under- or overapplied overhead for 2013 using both fixed OH rates.

Answers

Answer 1

Answer:

Alberton Electronics

a. Alberton Electronics' predetermined VOH rate = $27.50 ($1,375,000/50,000)

b. The predetermined FOH rate using practical capacity = $17.60 ($3,168,000/180,000)

c. The predetermined FOH rate using expected capacity = $26.40 ($3,168,000/120,000)

d. Variable overhead applied = $3,025,000 (110,000 * $27.50)

Fixed overhead applied using $17.60 FOH rate = $1,936,000 (110,000 * $17.60)

Fixed overhead applied using $26.40 FOB rate = $2,904,000 (110,000 * $26.40)

The Total under-or applied overhead for 2013:

a) Overapplied overhead = $2,251,000 ($4,961,000 - $2,710,000)

b) Overapplied overhead = $3,219,000

Explanation:

a) Data and Calculations:

Variable factory overhead at 100,000 machine hours $2,750,000

Variable factory overhead at 150,000 machine hours 4,125,000

Difference = 50,000 machine hours and $1,375,000

Variable overhead rate = $1,375,000/50,000 = $27.50

Fixed factory overhead between 10,000 and 180,000 machine hours = $3,168,000

Practical capacity = 180,000

Expected capacity = 120,000 (180,000 * 2/3)

a. Alberton Electronics' predetermined VOH rate = $27.50 ($1,375,000/50,000)

b. The predetermined FOH rate using practical capacity = $17.60 ($3,168,000/180,000)

c. The predetermined FOH rate using expected capacity = $26.40 ($3,168,000/120,000)

d. Variable overhead applied = $3,025,000 (110,000 * $27.50)

Fixed overhead applied using $17.60 FOH rate = $1,936,000 (110,000 * $17.60)

Fixed overhead applied using $26.40 FOB rate = $2,904,000 (110,000 * $26.40)

The Total under-or applied overhead for 2013:

a) Total overhead applied = $4,961,000 ($3,025,000 + $1,936,000)

Overapplied overhead = $2,251,000 ($4,961,000 - $2,710,000)

b) Total overhead applied = $5,929,000 ($3,025,000 + $2,904,000)

Overapplied overhead = $3,219,000 ($5,929,000 - $2,710,000)


Related Questions

An outside supplier has offered to make the part and sell it to the company for $29.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part U16 could be used to make more of one of the company's other products, generating an additional segment margin of $25,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be:

Answers

Answer:

-$79000  

Explanation:

The computation of the annual financial advantage (disadvantage) is shown below;

Particulars                           Per unit               Total 13000 units

                               Make               Buy          Make                Buy

Direct materials    2.90                                  37700  

Direct labor           7.50                                  97500  

Variable manufacturing

overhead               8.00                                  104000  

Supervisor's salary 3.40                                   44200  

Contribution margin                                         25000  

Purchase cost                          29.80                                  387400

Total                                                                   308400 387400

Now the finacial disadvantage is  

= 308400 - 387400

= -$79000  

Larkspur, Inc. reports net income of $89,770 in 2017. However, ending inventory was understated by $7,100. Collapse question part (a) What is the correct net income for 2017

Answers

Answer:

$96,870

Explanation:

The understatement of ending inventory causes the cost of goods sold to be overstated and the gross and net income to be understated by the same amount.

If the 2017 ending inventory was understated by $7,100 then the correct net income figure for 2017 will be $7,1000 more that what was reported.

Therefore, 2017 corrected net income

= $89,770 + $7,100

= $96,870

SegR-7268 Corporation has two divisions, East and West. The following information was taken from last year's income statement segmented by division: East Division West Division Sales $3,700,000 $2,300,000 Contribution margin $1,650,000 $1,000,000 Divisional segment margin $1,100,000 $350,000 Net operating income last year for SegR-7268 Corporation was $600,000. In last year's income statement segmented by division, what were SegR-7268's total common fixed expenses?

a. $2,050,000
b. $850,000
c. $2,300,000
d. $1,200,000

Answers

Answer:

b. $850,000

Explanation:

Divisional Segment Margin = $1,100,000 + $350,000

Divisional Segment Margin = $1,450,000

Net Operating Income = $600,000

Common fixed expenses = Divisional Segment Margin - Net Operating Income

Common fixed expenses = $1,450,000 - $600,000

Common fixed expenses = $850,000

So, SegR-7268's total common fixed expenses will be $850,000.

Imagine you have $30 to spend. You are thinking of buying new soccer shoes because yours
are worn out and a new video game. Which of these do you want, and which of these do you
need? Explain your answer.
Plz no links to answer

Answers

Answer:

video game

Explanation:

because I don't go outside, I'm a gamer

Suppose the required reserve ratio is 15%. A $10 million deposit will, at most, allow an expansion of the money supply to $250 million. $150 million. $147.5 million. $66.7 million.

Answers

Answer:

$66.7 million

Explanation:

Calculation to determine expansion of the money supply

Using this formula

Money supply expansion=Deposit/Required reserve ratio

Let plug in the formula

Money supply expansion=$10 million/.15

Money supply expansion=$66.66 million

Money supply expansion=$66.7 million (Approximately)

Therefore A $10 million deposit will, at most, allow an expansion of the money supply to $66.7 million

Roberto Corporation was organized on January 1, 2021. The firm was authorized to issue 84,000 shares of $5 par common stock. During 2021, Roberto had the following transactions relating to shareholders' equity: Issued 10,800 shares of common stock at $6.00 per share. Issued 20,400 shares of common stock at $8.20 per share. Reported a net income of $108,000. Paid dividends of $59,000. Purchased 3,100 shares of treasury stock at $10.20 (part of the 20,400 shares issued at $8.20). What is total shareholders' equity at the end of 2021

Answers

Answer:

$249,460

Explanation:

Calculation to determine the total shareholders' equity at the end of 2021

Issued of stock $64,800

(10,800 shares * $6.00 per share)

Issued of stock $167,280

(20,400 shares * $8.20 per share)

Net income $108,000

Less dividends ($59,000)

Less Treasury stock $31,620

( 3,100 shares* $10.20)

Total shareholders' equity $249,460

Therefore total shareholders' equity at the end of 2021 is $249,460

For the past year, Kayla, Inc., has sales of $46,382, interest expense of $3,854, cost of goods sold of $16,659, selling and administrative expense of $11,766, and depreciation of $6,415. If the tax rate is 35 percent, what is the operating cash flow

Answers

Answer:

$15,266

Explanation:

Sales                                                          $46,382

Less: Cost of goods sold                          $16,659

Gross profit                                                $29,723

Less: Selling & administrative expense   $11,766

Less: Depreciation                                     $6,415

Earnings before interest and tax (EBIT)    $11,542

Less: Interest expenses                             $3,854

Earnings before tax (EBT)                           $7,688

Less: Tax expenses  (7688*35%)               $2,691

Earnings after tax                                       $4,997

Operating cash flow = EBIT + Depreciation expenses - Tax expenses

Operating cash flow = $11,542 + $6,415 - $2,691

Operating cash flow = $15,266

What is the Net Present Value of the following cash flow streams at an interest rate of 8.25%: at year 0: $0; year 1: $75; year 2: $225; year 3: $0; and year 4: $300. $__.

Answers

Answer:

the net present value is $479.7743

Explanation:

The computation of the net present value is shown below:

= cash flow ÷ (1+interest rate)^number of years

= $75 ÷ (1.0825) + $225 ÷ (1.0825)^2 + $300 ÷ (1.0825)^4

= $479.7743

Hence, the net present value is $479.7743

We simply applied the above formula so that the correct amount could come

Robo Hot Inc., is a company that markets electric heaters to hospitals. Mr. Heatmizer, it's CEO, would ike to reduce its inventory cost by determining the optimal number of electric heaters to obtain per order. The annual demand is 100,000 units and the ordering cost is $10 per order. The carrying cost per unit is $2.00. Using these figures, calculate the expected number of orders per year.

Answers

Answer:

Expected number of orders=31.6 orders per year

Explanation:

The expected number of orders would be the Annual demand divided by the economic order quantity(EOQ).

The Economic Order Quantity (EOQ) is the order quantity that minimizes the balance of holding cost and ordering cost. At the EOQ, the holding cost is exactly the same as the ordering cost.

It is calculated as follows:

EOQ = (2× Co D)/Ch)^(1/2)

Co- ordering cost Ch - holding cost, D- annual demand

EOQ = (2× 10 × 100000/2)^(1/2)= 3162.27 units

Number of orders = Annual Demand/EOQ

                              = 100,000/3,162.27= 31.62 orders

Expected number of orders=31.6 orders per year

Given the following cash flows for a capital project for the Witter Corp., calculate its payback period and discounted payback period. The required rate of return is 8 percent. Cashflows: Year 0 = -50,000; Year 1 = 15,000; Year 2 = 15,000; Year 3 = 20,000; Year 4 = 10,000; and Year 5 = 5,000. The discounted payback period is

Answers

Answer:

4.01 years  

Explanation:

The computation of the discounted payback period is shown below;

Given that

Required rate of return is 8%

Cashflows: Year 0 = -50,000;

Year 1 = 15,000;

Year 2 = 15,000;

Year 3 = 20,000;

Year 4 = 10,000;

and Year 5 = 5,000

As we can see from the attached table that approx in 4 years it could cover $49,975

So

the discounted payback period is

= 4 years  + ($50,000 - $49,975.91) ÷ $3,402.92

= 4.01 years  

Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $179,850. The equipment will have an initial cost of $545,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $34,000, what is the accounting rate of return

Answers

Answer:

So, accounting rate of return = 33 %

Explanation:

given data

net income after tax = $179,850

initial cost = $545,000

time = 7 year

salvage value = $34,000

we will get here  the accounting rate of return

solution

as we know that accounting rate of return is express as

accounting rate of return = Net income ÷ initial investment    .................1

put here value and we get

accounting rate of return = [tex]\frac{179850}{545000}[/tex]  

So, accounting rate of return = 33 %

Terp Corp.'s transactions for the year ended December 31, 2021 included the following: Purchased real estate for $1,250,000 cash which was borrowed from a bank. Sold investment securities for $1,000,000. Paid dividends of $1,200,000. Issued 500 shares of common stock for $500,000. Purchased machinery and equipment for $250,000 cash. Paid $900,000 toward a bank loan. Reduced accounts receivable by $200,000. Increased accounts payable $400,000. The net cash used in financing activities for 2021 was

Answers

Answer:

$1,600,000

Explanation:

Cashflow from financing activities

Dividends                                 ($1,200,000)

Issue of Stocks                            $500,000

Bank Loan Repayment             ($900,000)

Net Cash flow                          ($1,600,000)

thus

The net cash used in financing activities for 2021 was $1,600,000

can you have a sloth as a pet

Answers

Answer:

in most places yes

Explanation:

they are hard to care for tho

Answer:

i mean Ig it depends on if you need a license or have to pay alot for it

have a good day :)

Explanation:

Selena Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: The activity rate under the activity-based costing system for Supporting Customers is closest to: Multiple Choice $18.53 $46.33 $21.67 $65.00

Answers

Answer:

the  activity rate  for Supporting Customers is $21.67

Explanation:

The computation of the activity rate under the activity-based costing system for Supporting Customers is shown below;

= Estimated overhead cost ÷ Total expected activity

= $26,000 ÷ 1,200

= $21.67

hence, the  activity rate  for Supporting Customers is $21.67

Therefore the third option is correct

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