Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by direct labor hours, with 150,000 hours for the Standard and 50,000 hours for the Extreme.After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $200,000 of overhead, with 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product.

It was also estimated that the setup cost pool would have $100,000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme.

A. What is the overhead rate per product under Traditional costing?

What is the overhead rate under Absorption Costing for:

B. The machine pool overhead rate

C. The setup pool overhead rate

Answers

Answer 1
Answer:

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Estimated costs and direct labor hours:

The total overhead= $300,000

Standard= 150,000 hours

Extreme= 50,000 hours

1) Under traditional costing, overhead gets allocated using a single plantwide manufacturing overhead rate.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

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

Estimated manufacturing overhead rate= 300,000/200,000= $1.5 per direct labor hour

Now, we can allocate overhead to each product:

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

Standard= 1.5*150,000= $225,000

Extreme= 1.5*50,000= $75,000

2) Machine:

Overhead= $200,000

Hours= 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product.

Estimated manufacturing overhead rate= 200,000/5,000= $40 per hour

3)Set up:

Overhead= $100,000

Hours= 1,000 hours for the Standard and 1,500 hours for the Extreme.

Estimated manufacturing overhead rate= 100,000/2,500= $40


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Transfer Pricing Aulman Inc. has a number of divisions including a Furniture Division and a Motel Division. The Motel Division owns and operates a line of budget motels located along major highways. Each year, the Motel Division purchases furniture for the motel rooms. Currently, it purchases a basic dresser from an outside supplier for $60. The manager of the Furniture Division has approached the manager of the Motel Division about selling dressers to the Motel Division. The full product cost of a dresser is $29. While the Furniture Division has been operating at capacity (50,000 dressers per year) and selling them for $60 each, it expects to produce and sell only 40,000 dressers for $60 each next year. The Furniture Division incurs variable costs of $15 per dresser. The Motel Division needs 10,000 dressers per year; the Furniture Division can make up to 50,000 dressers per year. The company policy is that all transfer prices are negotiated by the divisions involved. Required: 1. What is the maximum transfer price? $ Which division sets it? 2. What is the minimum transfer price? $ Which division sets it? 3. Suppose that the two divisions agree on a transfer price of $31. What is the benefit for the Furniture Division? For the Motel Division? For Aulman Inc. as a whole? Benefit to Furniture Division $ Benefit to Motel Division $ Benefit to company $ Check My Work3 more Check My Work uses remaining. Previous

The relevant production range for Challenger Trailers, Inc. is between 120,000 units and 190,000 units per month. If the company produces beyond 190,000 units per month:__________. A. the fixed costs and the variable cost per unit will not change B. the fixed costs may change, but the variable cost per unit will remain the same C. the fixed costs will remain the same, but the variable cost per unit may change D. both the fixed costs and the variable cost per unit may change

Answers

Answer:  D. both the fixed costs and the variable cost per unit may change

Explanation:

It is said that Fixed costs do not change regardless of production level but this is not entirely true. Fixed costs usually do not change for a production range but if the range is passed, the fixed costs might then increase and a new fixed cost for the new relevant range will be charged.

Variable costs are variable because they change with production so if the company is producing more units, they will be incurring more variable costs.

In conclusion therefore, if the company produces more units than its relevant production range, it risks both fixed and variable costs changing.

Delivered five rebuilt pianos to customers who paid $14,500 in cash. record the transaction.

Answers

Recording the sales transaction:

It is given that the company delivered five rebuilt pianos to customers who paid $14,500 in cash. It means the company had made cash sales to the customer. To record the cash sales, Cash account is debited and Sales Revenue account is credited. Hence, the journal entry for the sales shall be as follows:


Cash Debit $14,500

Sales Revenue Credit $14,500

(Being goods sold for cash)


Shamrock Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 161,900
Purchases (gross) 697,000
Freight-in 31,400
Sales revenue 924,000
Sales returns 73,200
Purchase discounts 12,100

Compute the estimated inventory at May 31, assuming that the gross profit is 40% of net sales

Answers

Answer:

The estimated inventory at May 31 is $240,100

Explanation:

The gross profit is the difference between the sales revenue and the cost of good sold.

The gross profit percentage is the ratio of gross profit to net sales expressed as a percentage.

Net sales is the sales less returns and allowances. Similar to net sales is net purchases which is the gross purchase net the allowances and returns.

Net purchases = $697,000 - $12,100

= $684,900

Net sales = $924,000 - $73,200

= $850,800

Gross profit margin percent = gross profit/net sales

gross profit = 0.4 * $850,800

= $212,700

cost of goods sold = $850,800  - $212,700

= $638,100

The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as

Opening balance + purchases + freight inward - cost of goods sold = closing balance

$161,900 + $684,900  + $31,400 - $638,100  = Estimated ending inventory

Estimated ending inventory = $240,100

In the case below, the original source material is given along with a sample of student work. Determine the type of plagiarism by clicking the appropriate radio button. Original Source Material

Student Version

To summarize, the elaboration model of instruction starts by presenting knowledge at a very general or simplified level in the form of a special kind of overview. Then it proceeds to add detail or complexity in "layers" across the entire breadth of the content of the course (or curriculum), one layer at a time, until the desired level of detail or complexity is reached.

References:
Reigeluth, C. M. (1999). The elaboration theory: Guidance for scope and sequence decisions. In C. M. Reigeluth (Ed.), Instructional design theories and models: A new paradigm of instructional theory (Vol. II, pp. 425-453). Hillsdale, NJ: Lawrence Erlbaum.

They soon switched to a model based on the elaboration theory (Reigeluth, 1999). Using this approach, the game would begin with a level that offered the simplest version of the whole task (the epitome); subsequent levels would become increasingly more complex--an approach common to videogames--with opportunities for review and synthesis.

References:
Reigeluth, C. M. (1999). The elaboration theory: Guidance for scope and sequence decisions. In C. M. Reigeluth (Ed.), Instructional design theories and models: A new paradigm of instructional theory (Vol. II, pp. 425-453). Hillsdale, NJ: Lawrence Erlbaum.

Which of the following is true for the Student Version above?

a)Word-for-Word plagiarism

b)Paraphrasing plagiarism

c)This is not plagiarism

Answers

Answer:

The correct answer is letter "C": This is not plagiarism.

Explanation:

Plagiarism is the act of taking someone else's work and make it appear as if it belongs to another party. It also implies paraphrasing words from an article or changing the order of some of the words to give it a genuine look. Plagiarism is considered a misdemeanor but can be penalized.

The student's version in the example is not plagiarism because the source from where the student takes the reference of the elaboration theory is mentioned:  

They soon switched to a model based on the elaboration theory (Reigeluth, 1999).

Thus, the student is recognizing that the conclusion was taken from another resource. The rest of the student's paragraph is related to another field of study - videogames - making a unique version only relating the theory.

Leilani enters into a contract with Metro Taxi Company to work as a cabdriver. Under the plain meaning rule, if the contract’s writing is clear and unequivocal, the meaning of the terms must be determined from a. ​any relevant extrinsic evidence. b. ​only evidence not contained in the document. c. ​the later testimony of the parties. d. ​only the face of the instrument.

Answers

Answer:

The correct option is d) only the face of the instrument

Explanation:

Here when Leilani is entering in to a contract with Metro taxi company to work as a cabdriver, the contract made by the Metro taxi company has clearly stated the terms of condition for the job of cabdriver and it is told in the question that the terms of contract were unequivocal which means all the terms and condition were clearly stated and there was no confusion regarding any of the detail.

So when under the plain meaning rule, the meaning of the terms would be determined only the basis of what is written in the contract not on any extrinsic evidence or something which is not there but only on the face of the instrument.

Here are the U.S. tax rates and their corresponding tax brackets based on filing status for single individuals (i.e. not corporations) If taxable income is: Then income tax equals: Not over $9,875 10% of the taxable income Over $9,875 but not over $40,125 $987.50 plus 12% of the excess over $9,875 Over $40,125 but not over $85,525 $4,617.5 plus 22% of the excess over $40,125 Over $85,525 but not over $163,300 $14,605.5 plus 24% of the excess over $85,525 Over $163,300 but not over $207,350 $33,271.5 plus 32% of the excess over $163,300 Over $207,350 but not over $518,400 $47,367.5 plus 35% of the excess over $207,350 Over $518,400 $156,235 plus 37% of the excess over $518,400 Layla's taxable income for 2019 was $182,431. How much are her federal income taxes to the nearest dollar

Answers

Answer:

Layla's federal income taxes to the nearest dollar are:

= $39,393.

Explanation:

a) Data and Calculations:

Layla's taxable income

 for 2019 =                 $182,431    Income Tax

Income tax on            (163,300) = $33,271.50

Excess of $163,300        19,131 =    $6,121.92 ($19,131 * 32%)

Total income tax payable =       $39,393.42

U.S. Tax Rates and Corresponding Tax Brackets (Single Individuals)

If taxable income is:            Then income tax equals:

Not over $9,875 10% of the taxable income Over $9,875 but not over $40,125 $987.50 plus 12% of the excess over $9,875

Over $40,125 but not over $85,525 $4,617.5 plus 22% of the excess over $40,125

Over $85,525 but not over $163,300 $14,605.5 plus 24% of the excess over $85,525

Over $163,300 but not over $207,350 $33,271.5 plus 32% of the excess over $163,300

Over $207,350 but not over $518,400 $47,367.5 plus 35% of the excess over $207,350

Over $518,400 $156,235 plus 37% of the excess over $518,400 Layla's taxable income for 2019 was $182,431