Problem 3-12 Predetermined Overhead Rate; Disposing of Underapplied or Overapplied Overhead [LO3-4]
Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,332,000 of total manufacturing overhead for an estimated activity level of 74,000 machine-hours.
During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:
| Machine-hours | 62,000 | |
| Manufacturing overhead cost | $ | 1,300,000 |
| Inventories at year-end: | ||
| Raw materials | $ | 20,000 |
| Work in process (includes overhead applied of $100,440) | $ | 176,400 |
| Finished goods (includes overhead applied of $223,200) | $ | 392,000 |
| Cost of goods sold (includes overhead applied of $792,360) | $ | 1,391,600 |
Required:
1. Compute the underapplied or overapplied overhead.
2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry.
3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.
4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?
In: Accounting
how would someone find the variable manufacturing overhead per computer-hour?
Here is the actual question.
Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,368,000 of total manufacturing overhead for an estimated activity level of 72,000 machine-hours.
During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:
|
Machine-hours |
61,000 |
|
|
Manufacturing overhead cost |
$ |
1,324,000 |
|
Inventories at year-end: |
||
|
Raw materials |
$ |
16,000 |
|
Work in process (includes overhead applied of $115,900) |
$ |
188,000 |
|
Finished goods (includes overhead applied of $208,620) |
$ |
338,400 |
|
Cost of goods sold (includes overhead applied of $834,480) |
$ |
1,353,600 |
Required:
1. Compute the underapplied or overapplied overhead.
2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry.
3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.
4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?
In: Accounting
Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $900,000 of total manufacturing overhead for an estimated activity level of 75,000 machine-hours.
During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:
| Machine-hours | 60,000 | |
| Manufacturing overhead cost | $ | 850,000 |
| Inventories at year-end: | ||
| Raw materials | $ | 30,000 |
| Work in process (includes overhead applied of $36,000) | $ | 100,000 |
| Finished goods (includes overhead applied of $180,000) | $ | 500,000 |
| Cost of goods sold (includes overhead applied of $504,000) | $ | 1,400,000 |
1. Compute the underapplied or overapplied overhead.
2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry.
3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.
4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?
Must be OVERAPPLIED!! It's not UNDERAPPLIED
Thank you!!! I won't forget to rate!
In: Accounting
On 15 Sep 20XX, the Oct Futures contract for Crude Oil dropped from $18.27 to -$37.63 per barrel. Suppose an European investor closed her 1,000 barrels of long position in the Crude Oil futures contract on 14 Sep at $18.27. With an exchange rate: 0.92 EUR for 1 USD, if the investor closed her positions on 15 Sep, she would:
a) hold the futures contract that has fallen
in value by EUR 51,428
b) have lost EUR 51,428.00
c) have to pay EUR51,428.00 and hold new futures
contract priced at $37.63
d) hold the futures contract that has fallen in value
by EUR 16,800
e) have lost EUR16,800 and hold new futures contract
priced at $19.27
In: Finance
Note: BOOK : The Fund Industry : How Your Money Is Managed
1. What are the main types of service providers to a mutual fund, which has a board of directors but usually no employees?
2. What is the unique procedure available to fund shareholders for challenging a fund adviser’s management fees as excessive? What factors do courts use in determining excessive fees?
3. What are the critical differences between mutual funds and closed-end funds? Why do you think closed-end funds have declined in popularity relative to mutual funds?
4. How are exchange-traded funds (ETFs) and unit investment trusts (UITs) different from index mutual funds, and from each other?
In: Finance
Check whether the indicated application is best represented by an open-loop or closed loop control system model. If you think there is some ambiguity, discuss as necessary.
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APPLICATION (2 Points each) |
OPEN LOOP |
CLOSED LOOP |
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Standard LED flashlight |
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Antilock Braking System (ABS) in a car |
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Distance traveled by fireworks, i.e. bottle rocket |
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DVD player disc rotation speed |
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Cruise control in a car |
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Turning on a faucet in a sink |
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Automatic flash used in your smart phone camera |
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Accelerator pedal in a car |
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Thermostat |
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TESLA Motors almost self-driving car |
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Flushing a toilet cycle of operation |
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Outcomes-based assessment process for this course or an industrial engineering project design review |
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Prosthetic hand senior project |
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In: Electrical Engineering
Looking for the layout.xml and Main_activity.java cide
for the following app:
A card flipping game
1 . When the application is started, it asks user to
:hoose a difficulty level between easy, medium,
or hard and presents the next activity to the user
2. Depending on the user's selection, this activity
shows a 2x3, 3x4 or 4x4 grid of cards to the user.
all cards must initially be closed.
3. The user clicks on a card. The cards face is
shown and if it is the same as the previous card,
these two cards are removed from the grid.
Otherwise, they get closed again.
4. The game continues until all cards are opened.
5. When the game is over, the user sees their score which is the
total number of clicks they performed to open all cards on a new
activity.
In: Computer Science
Given a system with the transfer function
p(S)= (s+1)/(s(2s^2+4s+3)(2s+1))
Each section must specify the way of solution / explanation /
reasoning
A. 8 points (Is the system in an open circle asymptomatic or BIBO
stable or unstable?
B. (8 pts) Closes a control circle with a proportional controller.
What is the range of K values for which
The closed circle is stable?
third. 4 points (what is the constant state error of the system in
the open circle for step entry
Unit?
D. ) 4 points (what is the error of the constant state of the
system in the closed circle with a controller held inside
The domain you found in section b) Select a value as you wish (for
a single entry level?)
In: Electrical Engineering
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During 2016 and 2017, Agatha Corp. completed the following transactions relating to its bond issue. The corporation’s fiscal year is the calendar year. |
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2016 |
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Jan. 1 |
Issued $230,000 of 10-year, 6 percent bonds for $221,000. The annual cash payment for interest is due on December 31. |
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Dec. 31 |
Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. |
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Dec. 31 |
Closed the interest expense account. |
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2017 |
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Dec. 31 |
Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. |
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Dec. 31 |
Closed the interest expense account. |
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b. |
Prepare the general journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
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2016 |
|
|
Jan. 1 |
Issued $230,000 of 10-year, 6 percent bonds for $221,000. The annual cash payment for interest is due on December 31. |
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Dec. 31 |
Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. |
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Dec. 31 |
Closed the interest expense account. |
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2017 |
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Dec. 31 |
Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. |
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Dec. 31 |
Closed the interest expense account. |
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c. . |
Prepare the liabilities section of the balance sheet at December 31, 2016 and 2017. (Amounts to be deducted should be indicated with minus sign.)
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d. |
Determine the amount of interest expense that will be reported on the income statements for 2016 and 2017. |
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e. |
Determine the amount of interest that will be paid in cash to the bondholders in 2016 and 2017. |
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In: Accounting
Presented here are the comparative balance sheets of Hames Inc.
at December 31, 2020 and 2019. Sales for the year ended December
31, 2020, totaled $1,700,000.
| HAMES INC. Balance Sheets December 31, 2020 and 2019 |
||||||||
| 2020 | 2019 | |||||||
| Assets | ||||||||
| Cash | $ | 63,000 | $ | 57,000 | ||||
| Accounts receivable | 285,000 | 266,000 | ||||||
| Merchandise inventory | 261,000 | 247,000 | ||||||
| Total current assets | $ | 609,000 | $ | 570,000 | ||||
| Land | 109,000 | 82,000 | ||||||
| Plant and equipment | 375,000 | 330,000 | ||||||
| Less: Accumulated depreciation | (195,000 | ) | (180,000 | ) | ||||
| Total assets | $ | 898,000 | $ | 802,000 | ||||
| Liabilities | ||||||||
| Short-term debt | $ | 54,000 | $ | 51,000 | ||||
| Accounts payable | 168,000 | 144,000 | ||||||
| Other accrued liabilities | 68,000 | 54,000 | ||||||
| Total current liabilities | $ | 290,000 | $ | 249,000 | ||||
| Long-term debt | 56,000 | 105,000 | ||||||
| Total liabilities | $ | 346,000 | $ | 354,000 | ||||
| Stockholders’ Equity | ||||||||
| Common stock, no par, 200,000 shares authorized, 80,000 and 50,000 shares issued, respectively | $ | 224,000 | $ | 162,000 | ||||
| Retained earnings: | ||||||||
| Beginning balance | $ | 286,000 | $ | 217,000 | ||||
| Net income for the year | 102,000 | 84,000 | ||||||
| Dividends for the year | (60,000 | ) | (15,000 | ) | ||||
| Ending balance | $ | 328,000 | $ | 286,000 | ||||
| Total stockholders’ equity | $ | 552,000 | $ | 448,000 | ||||
| Total liabilities and Stockholders’ equity | $ | 898,000 | $ | 802,000 | ||||
Required:
In: Accounting