Answer:
1. Price of bond = $177,399.11
2. Price of bond = $177,060.16
3. Price of bond = $200,000
Explanation:
1) Price of Bond = pv(rate,nper,pmt,fv)
rate =12%
nper = 10
pmt (Coupon Amount) = 10%*200,000 = 20,000
fv = 200,000
Price of Bond = pv(12%, 10, 20,000, 200,000)
Price of Bond = $177,399.11
2) Price of Bond = pv(rate,nper,pmt,fv)
rate =12%*1/2 = 6%
nper = 10 *2 = 20
pmt (Coupon Amount) = 10% * 200,000 * 1/2 = 10,000
fv = 200,000
Price of Bond = pv(6%, 20, 10,000, 200,000)
Price of Bond = $177,060.16
3) Price of Bond = pv(rate,nper,pmt,fv)
rate =12%*1/2 = 6%
nper = 20 *2 = 40
pmt (Coupon Amount) = 12%*200,000*1/2 = 12,000
fv = 200,000
Price of Bond = pv(6%, 40, 12,000, 200,000)
Price of Bond = $200,000
Which of the following is not an example of "fair use?
O teaching
O scholarship
O borrowing someone's illustrations for your children's book
O research
Answer:
C - borrowing someone's illustrations for your children's book
Explanation:
This is because you do not have permission to use the illustrations, and you are claiming the illustrations as your own when you put it in your book.
Plaese give brainliest or at least a thanks!
Answer:
C
Explanation:
O borrowing someone's illustrations for your children's book
Some individuals want work that makes minimal intellectual demands and provides the security of routine; for them, ________ is a source of job satisfaction. low formalization high work specialization free flow of information high decentralization wide span of control
Answer: high work specialization
Explanation:
Job specialization is when workers have education, knowledge, and experience with regards to a particular area of expertise. It brings about efficiency at the workplace.
Some individuals want work that makes minimal intellectual demands and provides the security of routine; for them, high work specialization is a source of job satisfaction.
The following information was taken from the 2017 financial statements of Eiger Corporation, a maker of equipment for mountain and rock climbers:
Net income $ 100,000
Depreciation 30,000
Increase (decrease) in
Accounts receivable 110,000
Inventories (50,000 )
Prepaid expenses 15,000
Accounts payable (150,000 )
Salaries payable 15,000
Other current liabilities (70,000 )
Calculate Eiger’s cash flow from operating activities for 2017. (If the cash flow amount is negative, enter your answer with a minus sign.)
Answer:
Eiger’s cash flow from operating activities for 2017 is - $150,000.
Explanation:
Cash flow from Operating Activities
$
Net income 100,000
Adjustments for non-cash items
Depreciation 30,000
Adjustment fro changes in working capital
Increase in Accounts receivable - 110,000
Decrease in Inventories 50,000
Increase in Prepaid expenses - 15,000
Decrease in Accounts payable - 150,000
Increase in Salaries payable 15,000
Decrease in Other current liabilities - 70,000
Net Cash flow from Operating Activities -150,000
Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales $1,825,000 Expenses: Cost of goods sold $1,060,000 Operating expenses 570,000 Depreciation expense 51,000 Income tax expense 41,000 Total expenses 1,722,000 Net income $ 103,000 PEACH COMPUTER Selected Balance Sheet Data December 31 2018 2017 Increase (I) or Decrease (D) Cash $103,000 $85,500 $17,500 (I) Accounts receivable 45,100 49,500 4,400 (D) Inventory 76,000 55,500 20,500 (I) Prepaid rent 3,100 5,200 2,100 (D) Accounts payable 46,000 37,500 8,500 (I) Income tax payable 5,100 10,500 5,400 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method
Answer:
PEACH COMPUTER
Cash flows from operating activities
For the year ended December 31, 2018
Cash flows from operating activities:
Net income $103,000
Adjustments to net income:
Depreciation expense $51,000Decrease in accounts receivable $4,400Decrease in prepaid rent $2,100Increase in accounts payable $8,500Increase in inventory ($20,500)Decrease in income tax payable ($5,400) $40,100Net cash flows provided by operating activities $143,100
Refer to Mc-King Chicken. Which of the following would not be an advantage of a franchise?
a. He gains fast and well-controlled distribution.
b. He has more capital available to expand.
c. Outlets are maintained and operated according to a set plan.
d. He has the opportunity to start a business with limited capital.
e. Success will cause another outlet to be opened nearby.
Answer: e. Success will cause another outlet to be opened nearby.
Explanation:
Another franchise opening does not depend on the success of Mc-King because this would imply that the funds from the successful outlet will be needed to open a new branch.
Franchises are opened with minimal capital from the side of the franchisor so the success of an outlet is not a factor in franchising. Even if he not making enough to start another outlet using his own funds, franchising will enable him to by using the funds of others.
If a two-stock portfolio is equally invested in stocks with betas of 1.4 and 0.7, then the portfolio beta is:_______.
A. 0.70.
B. 1.05.
C. 1.40.
D. 2.10.
Answer:
Beta= 1.05
Explanation:
Giving the following information:
A two-stock portfolio is equally invested in stocks with betas of 1.4 and 0.7.
To calculate the Beta of the portfolio, we need to use the following formula:
Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)
Beta= (0.5*1.4) + (0.5*0.7)
Beta= 1.05
An individual wants to have $95,000 per year to live on when she retires in 30 years. The individual is planning on living for 20 years after retirement. If the investor can earn 6% during her retirement years and 10% during her working years, how much should she be saving during her working life? (Hint: Treat all calculations as annuities.)
Answer:
annual contribution = $6,624.25
total amount saved in 30 years = $1,089,650
Explanation:
time until retiring = 30 years
interest rate earned until retiring = 10%
she plans to live 20 years after retiring
interest rate earned after retiring = 6%
expected distribution = $95,000 per year
in order for her to be able to have the 20 payments of $95,000, she will need:
= annual payment x PV annuity factor
annual payment = $95,000PV annuity factor (6%, 20 periods) = 11.470total amount needed = $95,000 x 11.47 = $1,089,650
in order to determine the annual contribution we need to use the future value of an annuity formula:
FV = annual payment x FV annuity factor
FV = $1,089,650FV annuity factor (10%, 30 periods) = 164.494annual payment = $1,089,650 / 164.494 = $6,624.25
Identify financial statement by type of information) Butler Tech, Inc., is expanding into India. The company must decide where to locate and how to finance the expansion. Identify the financial statement where these decision makers can find the following information about Butler Tech, Inc. In some cases, more than one statement will report the needed data.
a. Revenue
b. Common stock
c. Current liabilities
d. Long-term debt
e. Dividends
f. Ending cash balance
g. Adjustments to reconcile net income to net cash provided by operations
h. Cash spent to acquire the building
i. Income tax expense
j. Ending balance of retained earnings
k. Selling, general, and administrative expense
l. Total assets
m.Net income
n. Income tax payable
Answer:
a. Revenue - Income Statement
b. Common Stock - Balance Sheet
c. Current liabilities - Balance Sheet
d. Long-term Debt - Balance Sheet
e. Dividends - Statement of Shareholder Equity / Statement of Retained Earnings
f. Ending Cash Balance - Balance Sheet
g. Adjustment to reconcile net income to net cash provided by operations -Statement of Cash Flows
h. Cash spent to acquire the Buildings - Statement of Cash Flows
i. Income tax expense - Income Statement
j. Ending Balance of retained earnings - Statement of Shareholder Equity / Statement of Retained Earnings / Balance Sheet
k. Selling general and administrative expenses - Income Statement
l. Total Assets - Balance Sheet
m. Net Income - Income Statement / Statement of Shareholder Equity / Statement of Retained Earnings
n. Income tax payable - Balance Sheet
Suppose a U.S. Treasury bond will pay $2,500 five years from now. If the prevailing interest rate on 5-year Treasury bonds is 4.25%, compounded semiannually, the value of the bond today is closest to:
Answer:
The value of the bond today is closest to $1648.85
Explanation:
The value of the bond today is closest to:
Present Value = FV / (1+i)^n *m
FV= 2500
I = 4.25 = 0.0425
N= 5
M= 2
The value of the bond today = 2500 / (1+0.0425) ^5*2
The value of the bond today = 2500 / 1.516214468
The value of the bond today = 1648.853256
The value of the bond today = $1648.85
Which of the following is not a condition that must be satisfied before interest capitalization can begin on a qualifying asset?
a) Interest has been paid to the bank
b) Interest cost is being incurred
c) Expenditures for the assets have been made
d) Activities that are necessary to get the asset ready for its intended use are in progress
Answer:
The answer is D.
Explanation:
Cost of an asset includes the purchase price and other cost that are necessary to get the asset ready for its intended use and all these costs must be capitalized. Interest (borrowing cost) according to IAS 23( borrowing cost) states Interest directly involved in acquisition or construction or producing of qualifying assets must be capitalized i.e included in the cost of the asset.
Sidewinder, Inc., has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000, and a tax rate of 21 percent. What is the net income for this firm? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Answer:
$154,050
Explanation:
The computation of the net income for the firm is shown below:
Sales $634,000
Less: costs -$328,000
Less: depreciation -$73,000
EBIT -$233,000
Less: interest -$38,000
EBT 195,000
Less: tax(195,000 × 21%) -$40,950
Net income $154,050
We simply deduct all expenses ,interest and taxes from the sales revenue so that the net income could come and the same is to be considered
Savings Mart is a national retail chain. To entice the company to open a mega store in its jurisdiction, the city of Populationville donated a 20-acre tract of land to be used for construction. The land was originally purchased by the city for $250,000 three years ago. The appraisal value at the time of the donation was $300,000. For what amount should Savings Mart record the donated land
Answer:
$300,000
Explanation:
As per the Internal service revenue (IRS) and Generally accepted accounting principles (GAAP), when the entity who is profit making received any fixed asset as a donation than the same assets should be recorded at the fair value amount
Here the purchase price is $250,000 and the appraisal value i.e. fair value is $300,000
So the amount of donating the land should be recorded at $300,000
Consider a risky portfolio, A, with an expected rate of return of 0.15 and a standard deviation of 0.15, that lies on a given indifference curve. Which one of the following portfolios might lie on the same indifference curve?
A. E(r) = 0.15; Standard deviation = 0.20.
B. E(r) = 0.15; Standard deviation = 0.10.
C. E(r) = 0.10; Standard deviation = 0.10.
D. E(r) = 0.20; Standard deviation = 0.15.
E. E(r) = 0.10; Standard deviation = 0.20.
Answer: C. E(r) = 0.10; Standard deviation = 0.10.
Explanation:
An indifference curve is plotted by graphing the various combinations of portfolios such that the customer in question is indifferent between them as they regard the combinations as giving them equal utility.
For portfolios to be on the same indifference curve they would have to provide the same reward - risk ratio. The reward to risk ratio of the portfolio in question is;
=Expected return/standard deviation'
= 0.15/0.15
= 1.0
Any portfolio with this same reward - risk ratio will be on the same curve.
The Portfolio in Option C has the same reward - risk ratio (0.1 - 0.1) and so will lie on the same indifference curve.
Consider a project with only positive cash flows after year 0. If the company felt that the risk of the project was less than original estimates, which of the following would occur?
Answer: Required Rate of Return Net Present Value Internal Rate of Return
A Higher Higher Lower
B Higher Lower No change
C No Change Higher No change
D Lower Lower Higher
E Lower Higher No Change
Answer:
E
Explanation:
The required rate of return is the rate used to discount cash flows when calculating NPV. the more risky a project is, the higher the required rate of return. So, if it is perceived that the project is less risky, the required rate of return would decrease.
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Because the required rate of return is used to discount cash flows when calculating NPV, a lower rate would increase NPV
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested. The required rate is not needed when calculating IRR. so, there would be no change in IRR if discount rate is lowered.
Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2019, the first year of operations, Jackson produced 4,600 tons of plastic and sold 3,680 tons. In 2020, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,400, variable manufacturing costs were 16% of the sales price of units produced, variable selling expenses were 8% of the selling price of units sold, fixed manufacturing costs were $3,312,000, and fixed administrative expenses were $470,000. (a) Prepare income statements for each year using variable costing.
Answer:
income statements for each year using variable costing
2019 2020
Sales $8,832,000 $11,040,000
Less Cost of Sales :
Opening Stock $0 $353,280
Add Manufacturing Cost $1,766,400 $1,413,120
Less Closing Stock ($353,280) $0
Cost of Sales ($1,413,120) ($1,766,400)
Contribution $7,418,880 $9,273,600
Less Expenses
Fixed manufacturing costs ($3,312,000) ($3,312,000)
Selling Expenses :
Variable ($706,560) ($883,200)
Fixed Administrative Expenses ($470,000) ($470,000)
Net Income / (Loss) $2,921,120 $4,608,400
Explanation:
Reconciliation of Units
2019 2020
Opening Stock 0 920
Add Production 4,600 3,680
Available for Sale 4,600 4,600
Less Sales (3,680) (4,600)
Closing Stock 920 0
Product Cost
Consider only variable manufacturing costs
Product Cost = $2,400 × 16%
= $384
The Day Company and the Knight Company are identical in every respect except that Day is not levered. Financial information for the two firms appears in the following table. All earnings streams are perpetuities, and neither firm pays taxes. Both firms distribute all earnings available to common stockholders immediately. Day Knight Projected operating $750,000 $ 750,000 income Year-end interest on debt $ 77,500 Market value of stock $3,600,000 $2,300,000 Market value of debt - $1,550,000
a-1. What will the annual cash flow be to an investor who purchases 10 percent of Knight's equity? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
a-2. What is the annual net cash flow to the investor if 10 percent of Day's equity is purchased instead? Assume that borrowing occurs so that the net initial investment in each company is equal. The interest rate on debt is 5 percent per year. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
X Answer is not complete.
a-1. Cash flow $ 67,250
a-2. Cash flow
b. Given the two investment strategies in (a), which will investors choose?
Answer:
a) $67,250
b) $68,500
c) Investment in Day Company results in a higher return, so I guess investors would probably go for it.
Explanation:
Knight Company's net income = $750,000 - $77,500 = $672,500
total investment in Knight Company = $2,300,000 / 10% = $230,000
earnings per 1$ invested = $672,500 / $2,300,000 = $0.292391
total cash flow = $230,000 x $0.292391304 = $67,250
Day Company's net income = $750,000
earnings per 1$ invested = $750,000 / $3,600,000 = $0.208333333
total investment in Day Company = $360,000, but I borrowed $130,000 to make this investment. The $130,000 will result in $6,500 annual interest payments
total cash flow = ($360,000 x $0.208333333) - $6,500 = $75,000 - $6,500 = $68,500
Which of the following is true of external recruiting, compared to internal recruiting?
A. It encourages greater employee loyalty.
B. The process is cheaper.
C. The pool of talent is more limited.
D. It creates the need for multiple recruitments.
E. The process takes longer.
Answer:
The answer is E. The process takes longer
Explanation:
External recruitment is the process of announcing vacancies to the people outside ones organization while Internal recruitment is the process of announcing vacancies for the internal staffs only.
The process of external recruitment is usually longer and more expensive than internal recruitment. For example, payment to publish the vacancies in any national newspapers or payment for outsourcing company that specializes in recruitment.
Option A is wrong because external recruitment discourages employee loyalty.
Option B in incorrect because this is so for internal recruitment
The analytics layer of the Big Data stack is experiencing what type of development currently?
Answer:
significant development
Explanation:
the analytics layer of BiG data comprises the different applications, warehouses and pipelines that are applied in solving analytics use cases in organizations. Big data analytics are the various data patterns, information and data stories acquired from Big data through thecimplex process of studying and examining big data.
Big data analytics has seen a lot of development, from complex algorithms that perform deep mining to artificial intelligence. There have been vast improvements to analytics since the days of just hand statistics or excel sheets. Organizations have committed to large investments in data hardware and software such as analytics tools like Hadoop
Rick O'Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of January, his federal income taxes withheld are $180, state income taxes withheld are $37, social security is 6.2% on a maximum wages of $106,800, Medicare tax is 1.45%, State Unemployment Tax is 4.2%, and Federal Unemployment tax is .8%, both on a maximum wages of $7,000 per employee. What is the employer's payroll tax expense from Rick's paycheck
Answer: $316.25
Explanation:
The taxes paid by the employer are the Social Security taxes, Medicare taxes, Federal unemployment taxes (FUTA) and State unemployment taxes (SUTA).
Rick makes $3,000 a year but is paid monthly.
= 30,000/12
= $2,500
= (6.2% * 2,500) + (1.45% * 2,500) + ( 0.8% * 2,500) + ( 4.2% * 2,500)
= 155 + 36.25 + 20 + 105
= $316.25
The market capitalization rate for Admiral Motors Company is 8%. Its expected ROE is 10% and its expected EPS is $5. The firm's plowback ratio is 60%. a. Calculate the growth rate. (Input your answer as a nearest whole percent.) b. What will be its P/E ratio? (Do not round intermediate calculations.)
Answer:
(A) 6%
(B) 20
Explanation:
The market capitalization rate for Admiral motors is 8%
= 8/100
= 0.08
The expected ROE is 10%
= 10/100
= 0.1
The expected EPS is $5
The Plowback ratio is 60%
= 60/100
= 0.6
(A) The growth rate can be calculated as follows
= Plowback ratio × ROE
= 0.6 × 0.1
= 0.06×100
= 6%
Hence the growth rate is 6%
(B) The P/E ratio can be calculated as follows
= 1-0.6/0.08-0.06
= 0.4/0.02
= 20
Hence the P/E ratio is 20
In social science, researchers generally use a _______ confidence level, but in natural science, researchers often use a ______ confidence level.
Answer: 95% ; 90%
Explanation:
Confidence level is used in research and it is the probability that a parameter's value falls within a particular range of values.
In social science, researchers generally use a 95% confidence level, but in natural science, researchers often use a 90% confidence level.
Identify the normal balance (debit or credit) for each of the following accounts.
a. Fees earned (revenues)
b. Office supplies
c. Owner withdrawals
d. Wages expense
e. Account receivable
f. Prepaid rent
g. Wages payable
h. Building
i. Owner Capital
The normal balance (debit or credit) for each of the accounts are:
Assets with debit balances:
b. Office supplies
e. Accounts receivable
f. Prepaid Rent
h. Building
Normal balanceBased on double entry principle of accounting every debit entry must have a corresponding credit entry and every credit entry must have a corresponding debit entry.
Assets with debit balances:
b. Office supplies
e. Accounts receivable
f. Prepaid Rent
h. Building
Expenses or contra-equity accounts with a debit balance:
c. Owner withdrawals and d. Wages expense
Liability, revenue, and equity accounts with credit balances normal:
a. Fees earned
g. Wages payable
i. Owner capital
Inconclusion the normal balance (debit or credit) for each of the accounts are: Assets with debit balances:
b. Office supplies
e. Accounts receivable
f. Prepaid Rent
h. Building
Learn more about normal balance here:https://brainly.com/question/13669524
The Cutting Department has units in process at the end of that are 100% complete for direct materials and % complete for conversion costs. Calculate the equivalent units of production for direct materials and conversion costs.
Answer:
this question is incomplete, so I looked for another question that can be used as an example:
"The Cutting Department has 8,000 units in process at the end of September that are 100% complete for direct materials. The units are 70% complete for direct labor and manufacturing overhead, which is added uniformly. "
the equivalent units of production for direct materials = 8,000 units x 100% = 8,000 equivalent units
the equivalent units of production for conversion costs (direct labor and manufacturing overhead) = 8,000 units x 70% = 5,600 equivalent units
What is task performance leader ship?
The task-relationship model is defined by Forsyth as "a descriptive model of leadership which maintains that most leadership behaviors can be classified as performance maintenance or relationship maintenances." Task-oriented (or task-focused) leadership is a behavioral approach in which the leader focuses
Given the following for the QRS Company: Assume QRS elects the carryback provision in 2017 and that future income is "more likely than not." 12/31/18 Income Tax Payable is:
Complete Question:
Given the following for the QRS Company:
Year Pre-Tax Net Tax Rate
Income (Loss)
2015 $10,000 20%
2016 8,000 20%
2017 (20,000) 20%
2018 12,000 20%
Assume QRS elects the carryback provision in 2017 and that future income is "more likely than not." 12/31/18 Income Tax Payable is:
Select One:
a. $2,400
b. $2,000
c. $11,600
d. $9,600
e. $400
Answer:
QRS
12/31/18 Income Tax Payable is:
b. $2,000
Explanation:
a) Data:
QRS Company:
Year Pre-Tax Net Tax Rate
Income (Loss)
2015 $10,000 20%
2016 8,000 20%
2017 (20,000) 20%
2018 12,000 20%
b) QRS can recover the loss from the 2015 and 2016 net income in the sum of $18,000 ($10,000 + $8,000) and then carry forward $2,000 against 2018 net income. Therefore, the taxable income for 2018 will be $10,000 ($12,000 - $2,000). The income tax payable is $2,000 ($10,000 * 20%).
You are planning to make monthly deposits of $70 into a retirement account that pays 12 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 24 years
Answer:
FV= $115,928.81
Explanation:
Giving the following information:
Monthly deposit= $70
Interest rate= 0.12/12= 0.01
n= 24*12= 288
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {70*[(1.01^288) - 1]} / 0.01
FV= $115,928.81
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20 percent next year and then decreasing the growth rate to a constant 5 percent per year. The company just paid its annual dividend in the amount of $1 per share. What is the current value of a share if the required rate of return is 14 percent?
Answer:
Current value per share is $13.33
Explanation:
The two stage growth model of DDM can be used to calculate the price of the share today. The DDM values a stock based on the present value of the expected future dividends from the stock. The price of this stock under this model can be calculated as follows,
P0 = D0 * (1+g1) / (1+r) + [ (D0 * (1+g1) * (1+g2) / (r - g2)) / (1+r) ]
Where,
g1 is the initial growth rate which is 20% g2 is the constant growth rate which is 5% r is the required rate of return
P0 = 1 * (1+0.2) / (1+0.14) + [ (1 * (1+0.2) * (1+0.05) / (0.14 - 0.05)) / (1+0.14) ]
P0 = $13.33
The Equal Employment Opportunity Act gave the Equal Employment Opportunity Commission the authority to:
Answer:
issue guidelines for employer conduct in administering equal employment opportunity programs.
Explanation:
This act known as the The Equal Employment Opportunity Act was enacted to check discrimination and unfair treatment against minorities such as African Americans. This act has given the right to sue whenever any form of discrimination based on race, skin color, religious affiliation is found in the work place.
Therefore the correct answer is issue guidelines for employer conduct in administering equal employment opportunity programs.
If a firm's forecasted sales are $250,000 and its break-even sales are $190,000, the margin of safety in dollars is:_________.
a) $60,000.
b) $250,000.
c) $190,000.
d) $440,000.
e) $24,000.
Answer:
a. $60000
Explanation:
The forecasted sales of the firm = $250000
Breakeven sales of the firm = $190000
We have to find the margin of safety by using the above given information. Therefore, it can be determined by subtracting the breakeven sales from sales.
The margin of safety = sales – breakeven sales
The margin of safety = 250000 – 190000
The margin of safety = $60000
Thus, option A is correct.
Meenach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 66,000 direct labor-hours, total fixed manufacturing overhead cost of $99,000, and a variable manufacturing overhead rate of $4.50 per direct labor-hour. Recently Job X387 was completed and required 220 direct labor-hours.
Required:
Calculate the amount of overhead applied to Job X387. (Do not round intermediate calculations.)
Answer:
Allocated MOH= $1,320
Explanation:
Giving the following information:
Estimated fixed overhead= $99,000
Estimated variable overhead= $4.5 per unit
Estimated direct labor hour= 66,000
Recently Job X387 was completed and required 220 direct labor-hours.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (99,000/66,000) + 4.5
Predetermined manufacturing overhead rate= $6 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 6*220
Allocated MOH= $1,320