Factory Overhead Rates, Entries, and Account Balance Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $708,050 $1,155,000 Estimated direct labor hours for year 15,400 Estimated machine hours for year 20,230 Actual factory overhead costs for March $56,680 $100,080 Actual direct labor hours for March 1,390 Actual machine hours for March 1,580 a. Determine the factory overhead rate for Factory 1. $ per machine hour b. Determine the factory overhead rate for Factory 2. $ per direct labor hour c. Journalize the entries to apply factory overhead to production in each factory for March. Factory 1 Factory 2 d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. Factory 1 $ Factory 2 $

Answer:

The answer to this question can be defined as follows:

Explanation:  

In point a:

[tex]\text{Factory Overhead Rate 1} = \frac{\text{Expected administrative overhead to factory}}{\text{Estimated period time to machine}}[/tex]

                                        [tex]=\frac{12900000}{ 600000 }\\\\ = \$ \ 21.50[/tex]

In point b:

[tex]\text{Factory overtime rate 1} = \frac{\text{overhead costs estimated expense}}{\text{Specific hours of work estimated for the year}}[/tex]

                                     [tex]= \frac{10,200,000 }{250000} \\\\ = \$ \ 40.80[/tex]

In point c:

Daily paper  

Number      Name of account                                   Debit                     Credit

   1.              Working [tex](610000 \times $21.50)[/tex]                      [tex]\$ \ 13115000[/tex]                

                    Plant Overhead                                                        [tex]\$ \ 13115000[/tex]

   2.             Job under way [tex](245000\times $40.80)[/tex]              [tex]\$ \ 9996000[/tex]

                   Overhead plant                                                            [tex]\$ \ 9996000[/tex]

In point d:

[tex]\text{Factory 1} = 12,990,000 - 13,115,000[/tex]

                [tex]= 125000 \ Overapplied\ credit[/tex]

[tex]\text{Factory 1} = 10,090,000 - 9,996,000[/tex]

                [tex]= $94000 \ Underapplied \ Debit[/tex]

The general ledger of Pipers Plumbing at January 1, 2018, includes the following account balances:
Accounts Debits Credits
Cash $ 4,500
Accounts receivable 9,500
Supplies 3,500
Equipment 36,000
Accumulated depreciation $ 8,000
Accounts payable 6,000
Utilities payable 7,000
Deferred revenue 0
Common stock 23,000
Retained earnings 9,500
Totals $ 53,500 $ 53,500
The following is a summary of the transactions for the year:_______.
1. January 24 Provide plumbing services for cash, $18,000, and on account, $63,000.
2. March 13 Collect on accounts receivable, $51,000.
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
4. June 30 Pay salaries for the current year, $32,600.
5. September 15 Pay utilities of $6,200 from 2020 (prior year).
6. November 24 Receive cash in advance from customers, $9,200.
7. December 30 Pay $2,600 cash dividends to stockholders.
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $7,200.
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Of the $9,200 paid in advance by customers, $6,600 of the work has been completed by the end of the year.
Accrued utilities at year-end amounted to $6,400.

The Wod Chemical Company produces a chemical compound that is used as a lawn fertilizer. The compound can be produced at a rate of 10,000 pounds per day. Annual demand for the compound is 0.6 million pounds per year. The fixed cost of setting up for a production run of the chemical is $1,500, and the variable cost of production is $3.50 per pound. The company uses an interest rate of 22 percent to account for the cost of capital, and the costs of storage and handling of the chemical amount to 12 percent of the value. Assume that there are 250 working days in a year.
A. What is the optimal size of the production run for this particular compound?
B. What proportion of each production cycle consists of uptime and what proportion consists of downtime?
C. What is the average annual cost of holding and setup attributed to this item? If the compound sells for $3.90 per pound, what is the annual profit the company is realizing from this item?

A production department's output for the most recent month consisted of 12,500 units completed and transferred to the next stage of production and 12,500 units in ending Work in Process inventory. The units in ending Work in Process inventory were 65% complete with respect to both direct materials and conversion costs. There were 1,500 units in beginning Work in Process inventory, and they were 85% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

Lear Inc. has $940,000 in current assets, $420,000 of which are considered permanent current assets. In addition, the firm has $740,000 invested in fixed assets.
A. Lear wishes to finance all fixed assets and half of its permanent current assets with long-term financing costing 9%. The balance will be financed with short-term financing, which currently costs 5%. Lear’s earnings before interest and taxes are $340,000. Determine Lear’s earnings after taxes under this financing plan. The tax rate is 30%.
B. As an alternative. Lear might wish to finance all fixed assets and permanent current assets plus half of its temporary current assets with long-term financing and the balance with short-term financing. The same interest rates apply as in part a. Earnings before interest and taxes will be $340,000. What will be Lear's earnings after taxes? The tax rate is 30%.

Which of the following are reasons that the short-run aggregate supply curve slopes upward?

oca, Inc., manufactures and sells two products: Product M6 and Product X7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated MOH Cost Expected Activity Product M6 Product X7 Total Labor related DLH $152,100 3,000 4,800 7,800 Product orders orders $63,035 400 300 700 Order size Machine hours $505,452 3,700 3,600 7,300 The total overhead to be applied to Product X7 using activity-based costing is closest to:

In 2013, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:
Basic research to develop the technology $ 2,000,000
Engineering design work 680,000
Development of a prototype device 300,000
Acquisition of equipment 60,000
Testing and modification of the prototype 200,000
Legal and other fees for patent application on the new
communication system 40,000
Legal fees for successful defense of the new patent 20,000
Total $ 3,300,000
The equipment will be used on this and other research projects. Depreciation on the equipment for 2013 is $10,000.
During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.
Required:
Prepare correcting entries that reflect the appropriate treatment of the expenditures.
1. Record the correcting entry to expense R&D costs incorrectly capitalized
2. Record the correcting entry to capitalize the cost of equipment incorrectly capitalized as a patent.
3. Record the correcting entry to record depreciation on equipment used in R&D projects.

Magic Realm, Inc., has developed a new fantasy board game. The company sold 45,500 games last year at a selling price of $65 per game. Fixed expenses associated with the game total $819,000 per year, and variable expenses are $45 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 57,330 games next year (an increase of 11,830 games, or 26%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year

2. The buyer's prepaid expense is the seller's
Which revenue?

Erics - Automotive Final Exam
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A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.7%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 17 % 37 % Bond fund (B) 8 % 31 % The correlation between the fund returns is .1065. Suppose now that your portfolio must yield an expected return of 15% and be efficient, that is, on the best feasible CAL. a. What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Standard deviation % b-1. What is the proportion invested in the T-bill fund? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Proportion invested in the T-bill fund % b-2. What is the proportion invested in each of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Proportion Invested Stocks % Bonds %

Which people would make up a flight crew? (Select all that apply.)
O captain
flight engineer
O avionic mechanic
O co-pilot

Managers in nonprofit organizations must prioritize the needs of

Which of the following descriptions pertains to a "Cognitive" style of decision-making? Review Later Decisions derived from the needs, desires, preferences, and/or values of the individual making the decision. This type of decision-making is centered on the individual deciding. An integrated feedback system between the individual/organization making a decision, and the broader environment’s reactions to those decisions. This type of decision-making process involves iterative cycles and constant assessment of the reactions and impacts of the decision. In many ways, decision making (particularly in groups, such as within an organization) is about communicative rationality. This is to say that decisions are derived based on the ability to communicate and share logic, using the firm’s premises and conclusions to drive behavior. Two answers in this answer set are correct. None of the answers in this answer set are correct.

Donald owns a two-family home. He rents out the first floor and resides on the second floor. The following expenses attributable to the total building were incurred by Donald for the year ended December 31, 2016. Real estate taxes $1,800 Mortgage interest $1,200 Utilities $1,000 Repairs (first floor) $ 300 Painting (second floor) $ 400 In addition, the depreciation attributable to the entire building would be $2,000. What is the total amount of the expenses that Donald can deduct on Schedule E of Form 1040 (before any limitations)

19. During March, Perpetual Envy Inc. provides $46,000 in consulting services for a customer. The customer paid $24,000; the other $22,000 was on account. Which of the following statements about these transactions is correct? Cash increases by $24,000, Consulting Revenue increases by $22,000, and Accounts Receivable increases by $46,000. Cash increases by $24,000, Accounts Receivable increases by $22,000, and Consulting Revenue increases by $46,000. Accounts Receivable increases by $22,000, Liabilities decrease by $24,000, and Stockholders' Equity increases by $2,000. Revenues increase by $24,000, liabilities decrease by $24,000, and Stockholders' Equity is unchanged.

Why does it make more sense to send an instant message about your lunch break to your manager rather than an email?

Zach attended Champion University during 2014-2018. He lived at home and was claimed by his parents as a deduction during the entire duration of his education. He incurred education expenses of $21,000 during college of which $3,780 was paid for by scholarships. To finance his education, he borrowed $12,500 through a federal student loan program and borrowed another $8,500 from a local lending institution for educational purposes. After graduation, he married and moved with his spouse to a distant city. In 2019, he incurred $1,250 of interest on the federal loans and $850 on the lending institution loan. He filed a joint return with his spouse showing modified AGI of $122,500. What amount of student loan interest can Zach and his spouse deduct in 2019, if any

The following information pertains to Windsor Solar Panels, Inc.
July 1 Sold $128,000 of solar panels to Wildhorse Company with terms 3/15, n/30. Windsor uses the gross method to record cash discounts. Windsor estimates allowances of $1,500 will be honored on this sale.
12 Sold $82,000 of solar panels to Novak Corp. with terms of 4/10, n/60. Windsor expects no allowances related to this sale.
18 Novak Corp. paid Windsor for its July 12 purchase.
20 Wildhorse calls to indicate that the panels purchased on July 1 work well, but the color is not quite right. Windsor grants a credit of $2,100 as compensation.
29 Wildhorse Company paid Windsor for its July 1 purchase.
31 Windsor expects allowances of $5,340 to be grated in the future related to solar panel sales in July.
Prepare the necessary journal entries for Larkspur. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
Date Account Titles and Explanation Credit Debit
July 18

This article (Links to an external site.) suggests, based on significant evidence, that competition in US markets is not only constrained, but is becoming less so, as fewer companies dominate business (Links to an external site.). The high profits and rising stock markets we have seen recently are significantly linked to this, rather than to a more competitive economy. Our model of Supply & Demand is based on a model of perfectly competitive markets. If our markets are not competitive, how does that affect this model? Read the first article and the full Introduction (at least) to the Brookings study. Submit your answer in the box. It should be a few paragraphs long and include a reference to an additional academic-level outside evidence to back up what you are saying.

Foote Company recorded a purchase discount of $200 on merchandise the company had purchased on account a few days ago. Foote uses the perpetual inventory system. Which of the following answers reflects the effects of this event on the financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Revenue − Expense = Net Income A. n/a (200) 200 200 n/a n/a 200 OA B. n/a (200) 200 200 n/a 200 n/a C. (200) (200) n/a n/a n/a n/a (200) OA D. (200) (200) n/a n/a n/a n/a n/a

1. The art of being a good Chemical Engineer lies in being a good mathematician, a good chemist, and a good mechanic – all simultaneously. All three of these are required for determining optimum economics. Generally speaking, we concern ourselves with operating costs (i.e. the chemistry side) and capital costs (i.e. the mechanical side). What can decrease operating expenses will, most likely, increase capital expenses. When designing equipment, we MUST be able to reconcile these two. The sweet spot is usually at the intersection of two curves (i.e. the mathematician side). Suppose that Operating Expenses could be expressed by the equation: y = 0.5x + 0.15, and Capital Expenses could be expressed by y = 1.25x2 + 0.1. To determine the minimal costs, you must find the point of intersection (assuming that only positive roots are applicable). (Solve analytically and graphically.) NOTE: When solving graphically, use graphing paper. 2. As you will learn in your chemistry courses and the reactor design course, the rate at which a chemical reaction proceeds is very much dependent upon the reaction temperature.

Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.)



Project C
Time: 0 1 2 3 4 5
Cash flow: –$1,400 $640 $600 $640 $380 $180






Should the project be accepted or rejected?



accepted
rejected

Mrs. Nunn, who has a 24 percent marginal tax rate on ordinary income, earned $2,690 interest on a debt instrument this year. Required: Compute her federal income tax on this interest assuming that the debt instrument was: (Round your final answers to the nearest whole dollar amount.) An unsecured note from her son, who borrowed money from his mother to finance the construction of his home. A certificate of deposit from a federal bank. A 30-year General Electric corporate bond. A U.S. Treasury note. A City of Memphis municipal bond.

Potter​ & Weasley Company had the following​ activities, estimated indirect activity​ costs, and allocation​ bases: Activities Indirect Activity Costs Allocation Base Account inquiry​ (hours) $86,200 2,900 Account billing​ (lines) $53,000 32,000 Account verification​ (accounts) $36,250 23,500 Correspondence​ (letters) $85,000 11,000 Potter​ & Weasley uses activity based costing. The above activities are used by Departments P and Q as​ follows: Department P Department Q Account inquiry​ (hours) 400 800 Account billing​ (lines) ​10,000 ​4,000 Account verification​ (accounts) ​6,000 ​7,000 Correspondence​ (letters) ​1,000 ​2,000 What is the cost per driver unit for the account inquiry​ activity? (Round all answers to two decimal​ places.) A. $29.72 B. $7.73 C. $7.84 D.

Jing Company was started on January 1, Year 1 when it issued common stock for $36,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $16,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,100. The equipment had a five-year useful life and a $5,800 expected salvage value. Using double-declining-balance depreciation, what the amount of depreciation expense and the amount of accumulated depreciation, respectively, that would appear on the December 31, Year 3 financial statements

Dalinda loves her BMW Z4 car. It handles well around corners and has plenty of kick to make driving a pleasure. She takes the Z4 in regularly to the BMW dealership shop for oil changes, maintenance, and services, and she continues to experience quality service each time. She trusts the brand and recommends purchasing BMW cars to her friends and family. What is the best way to describe what Dalinda’s collective brand experience with BMW?

Suppose it is decided that rent control in New York City will be abolished and that market rents will now prevail. Assume that all rental units are identical and so are offered at the same rent. To address the plight of residents who may be unable to pay the market rent, an income supplement will be paid to all low - income households equal to the difference between the old controlled rent and the new market rent. Are tenants better or worse off as a result of these policies?

The following transactions occurred during July: Received $940 cash for services provided to a customer during July. Received $2,800 cash investment from Bob Johnson, the owner of the business. Received $790 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $415. Borrowed $6,400 from the bank by signing a promissory note. Received $1,290 cash from a customer for services to be performed next year. What was the amount of revenue for July

Joni Metlock Inc. has the following amounts reported in its general ledger at the end of the current year.
Organization costs $22,300
Trademarks 12,700
Discount on bonds payable 35,300
Deposits with advertising
agency for ads to promote
goodwill of company 10,300
Excess of cost over fair
value of net identifiable
assets of acquired subsidiary 75,300
Cost of equipment acquired for
research and development projects;
the equipment has an alternative future use 85,300
Costs of developing a secret formula for a
product that is expected to be marketed for
at least 20 years 79,600
On the basis of this information, compute the total amount to be reported by Metlock for intangible assets on its balance sheet at year-end.