BUSINESS COLLEGE

Bridge Building Company estimates that it will incur $1,200,000 in overhead costs for the year. Additionally, the company estimates 50,000 direct labor hours will be spent building custom walking bridges for the year at a total direct labor cost of $600,000. What is the predetermined overhead rate for Bridge Building Company if direct labor costs are to be used as an allocation base?

Answers

Answer 1
Answer:

Answer:

Predetermined manufacturing overhead rate= $2 per direct labor dollar

Explanation:

Giving the following information:

Estimated overhead cost= $1,200,000

Estimated direct labor cost= $600,000.

To calculate the predetermined overhead rate, we need to use the following formula:

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

Predetermined manufacturing overhead rate= 1,200,000 / 600,000

Predetermined manufacturing overhead rate= $2 per direct labor dollar
Answer 2
Answer:

Final answer:

The predetermined overhead rate of Bridge Building Company is 2, which is calculated by dividing the overhead costs by the direct labor costs. This signifies that for every dollar of direct labor cost, the company allocates two dollars to overhead costs.

Explanation:

The predetermined overhead rate of the Bridge Building Company can be calculated by dividing the total estimated overhead costs by the total estimated direct labor costs as follows:

  1. Overhead costs = $1,200,000
  2. Direct labor costs = $600,000
  3. Predetermined overhead rate = Overhead costs / Direct labor costs
  4. Therefore, the predetermined overhead rate = $1,200,000 / $600,000 = 2

This means that for every dollar of direct labor cost, the Bridge Building Company allocates two dollars to overhead costs. This rate is used as the allocation base for their overhead.

Learn more about Predetermined Overhead Rate here:

brainly.com/question/31012385

#SPJ3

Related Questions

On September 12, Vander Company sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the non-defective merchandise, which is restored to inventory. The selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Vander must make on September 14 is (are):
Equipment was purchased for $300,000. Freight charges amounted to $14,000 and there was a cost of $40,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $60,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be:________. a. $70,800 b. $58,800 c. $49,200 d. $48,000
The balance sheet of Indian River Electronics Corporation as of December 31, 2017, included 13% bonds having a face amount of $90.3 million. The bonds had been issued in 2010 and had a remaining discount of $3.3 million at December 31, 2017. On January 1, 2018, Indian River Electronics called the bonds before their scheduled maturity at the call price of 102. Required: Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
Labor unions and businesses in the heavy equipment industry have asked the u.s. congress to place a tax on imported equipment in order to make it more expensive. they hope that this will allow u.s. producers to be more competitive. the u.s. heavy equipment industry appears to be seeking a(n):
The owners of a chain of​ fast-food restaurants spend $ 25 million installing donut makers in all their restaurants. This is expected to increase cash flows by $ 12 million per year for the next five years. If the discount rate is 6.6​%, were the owners correct in making the decision to install donut​ makers? Round answer to the nearest million.

Suppose a group of investors pooled $750,000 and founded Best National Bank in Rochester, NY. Best National Bank used $$75,000 of this to purchase shares in the New York Federal Reserve Bank. With the remaining $675,000, the bank manager purchased a building, furniture, and equipment for the bank.

Answers

Answer:

I have no idea to wat the answer is

Activity Cost Pool Total Cost Total Activity Activity Rate Machine setups $ 20,000 200 setups $ 100 per setup Special processing $ 150,000 10,000 MHs $ 15 per machine-hour General factory $ 200,000 20,000 direct labour-hours $ 10 per direct labour-hour Total overhead costs $ 370,000 What is the total overhead cost assigned to Product A, if Product A used 100 setups, no special processing and 10,000 direct labor-hours? $10,000 $1,000 $110,000 $100,000

Answers

Answer:

total overhead cost = $110,000

so correct option is c.  $110,000

Explanation:

given data

used = 100 setups

direct labor-hours = 1000

to find out

What is the total overhead cost assigned to Product A

solution

we get total overhead cost that is express as

total overhead cost = [ $100 per machine setup × 100 setups ] + [ $15 per machine-hours × 0 special processing ] + [ 10 per direct labor-hour × 10,000 direct labor-hours ]    

so

total overhead cost = $10,000 + $0 + $100,000

total overhead cost = $110,000

so correct option is c.  $110,000

On December 31, it was estimated that goodwill of $51,500 was impaired. In addition, a patent with an estimated useful economic life of 12 years was acquired for $115,200 on April 1.a. Journalize the adjusting entry on December 31 for the impaired goodwill
b. Journalize the adjusting entry on December 31 for the amortization of the paten

Answers

Answer:

a. The journal entries for the impaired goodwill as at Dec 31 would be:

Debit Impairment expense/charge $51,500

Credit Goodwill/Allowance for impairment $51,500

(To recognize impairment expense on goodwill)

b. Journal entries for the amortization of the patent as at Dec 31 would be:

Debit Amortization expense $9,600 [$115,200/12]

Credit Accumulated amortization $9,600

(To recognize amortization expense on patent)

Explanation:

A goodwill is impaired when its carrying value exceeds its fair value. The impairment test is carried out annually and the difference by which the carrying value of the goodwill exceeds the fair value is charged to the profit or loss account as impairment expense. The impairment reduces the goodwill to its fair value.

Goodwill belongs to a class of intangible asset and it arises essentially as a result of business combination. A business combination occurs when a company acquires another company.

asserine runs a tapestry shop in Rome, weaving historical images for the tourism industry. Lately, her arthritis has gotten worse, so she brings in several young workers and begins to teach them how to weave her images. Which factor of production did Passerine enhance?

Answers

3dd32df34f134ggggggggg333333g

Answer: labor

Explanation:

Inflation is 14 percent. Debt is $4 trillion. The nominal deficit is $360 billion. What is the real deficit or surplus

Answers

Answer:

Real Surplus is $200 billion

Explanation:

Inflation = 14%

Debt = $4 trillion = $4,000 billion

Nominal deficit = $360 billion

Real Deficit = Nominal deficit - (Inflation*Debt)

= $360 - 14% * 4,000

= $360 - 560

= -$200

Hence, the answer is Real Surplus of $200 billion

Which of the following assumptions is likely to be met in the real world? Group of answer choices All labor has zero costs of mobility. Demand for labor is identical in every labor market. All labor is homogeneous. Nonpecuniary factors in each job are not the same.

Answers

Answer:

None of the above

Explanation:

NONE of of the following assumptions is likely to be met in the real world.

Assumptions which include

A) All labor has zero costs of mobility. B) Demand for labor is identical in every labor market. C) All labor is homogeneous. D) Non pecuniary factors in each job are not the same are NOT likely to be met in the real word
Other Questions
A cafeteria buys muffins daily. Demand varies Uniformly between 30 and 50 muffins per day. The cafeteria pays $.20 per muffin and charges $.80 per muffin. Unsold muffins are discarded at the end of the day. A) Find the optimal stocking level and the stock-out risk for that quantity.
Define and explain SMART?
Consider the following abbreviated financial statements for Cabo Wabo, Inc.: CABO WABO, INC. Partial Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners’ Equity Current assets $ 3,151 $ 3,367 Current liabilities $ 1,399 $ 2,078 Net fixed assets 14,060 14,511 Long-term debt 7,377 8,419 CABO WABO, INC. 2019 Income Statement Sales $ 45,000 Costs 22,522 Depreciation 3,885 Interest paid 995 a. What is owners’ equity for 2018 and 2019? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. What is the change in net working capital for 2019? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-1. In 2019, the company purchased $8,038 in new fixed assets. The tax rate is 23 percent. How much in fixed assets did the company sell? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-2. What is the cash flow from assets for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-1. During 2019, the company raised $2,479 in new long-term debt. What is the cash flow to creditors? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-2. How much long-term debt must the company have paid off during the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Mila is helping to set performance targets for her company, Urban Supply. The target of increasing the company's online customer satisfaction rate by 1% in the next quarter is an example of a performance target focused on the customer perspective of the balance scorecard.a. trueb. false