Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Pelton instruments manufactures a variety of electronic instruments that are used in military and civilian applications. Sales to the military are generally on a cost-plus profit basis with profit equal to 10 percent of cost. Instruments used in military applications require more direct labor time because "fail-safe" devices must be installed. (These devices are generally omitted in civilian applications.) At the start of the year, Pelton estimates that the company will incur $75,000,000 of overhead, $7,500,000 of direct labor, and 750,000 machine hours. Consider the Model KV10 gauge that is produced for both civilian and military uses.
Civilian
Military
Direct Material
$3,000
$3,500
Direct Labor
$900
$1,200
Machine hours
100
REQUIRED
a. Calculate the cost of civilian and military versions of Model KV10 using both direct labor dollars and machine hours as alternative allocation bases.
b. Explain why Pelton instruments may decide to use direct labor as an overhead allocation base.
c. Is it ethical for pelton to select an allocation base that tends to allocate more of overhead costs to government contracts? Explain.
The adjusted trial balance of Karise Repairs on December 31, 2013, follows.
in february one of the processing departments at whisenhunt corporation had beginning work in process inventory of
Prepare the adjusting entry to allocate any over-or underapplied overhead to Cost of Goods Sold.
inlcuded in perrys capital balance is a 20000 partnership loan owed to perry. perry quincy and renquist shared profits
The beginning inventory is 300 units, the number of units set forth in the production budget, representing total production for the currentperiod, is?
Journalize the entries to record the liquidation outlined below,using Assets as the account title for the non cash assets and Liabilities as the account title for all creditors' claims.
Calculate the amount of the final price adjustment because of defective pricing based on the Contractor unintentionally overpriced their material costs by $75,000 and under-priced their direct manufacturing labor costs by $50,000. Overhead rates u..
sams club operates a regional chain of upscale department stores. the company is going to open another store soon in a
A firm must choose from one of two proposed projects presented below. The firm's cost of capital is 11.25%. Using the NPV method, explain which of the two projects the firm should accept, with an initial investment of Initial Investment = $185,000
In 2009, Ray incurs $60,000 of mining exploration expenditures, and deducts the entire amount for regular income tax purposes. Which of the following statements is incorrect?
Which of the following statements regarding fixed costs is incorrect?
as part of the initial investment omar contributes accounts receivable that had a balance of 25000 in the accounts of a
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd