Is the applied overhead over or under absorbed

Assignment Help Accounting Basics

Reference no: EM131880920

Question: 1. Big Company estimated that costs of production for the coming year would be:

Raw Materials $ 95,000

Direct Labor 80,000

Production overhead 125,000

A. Calculate the overhead rate for the next year, assuming that it is based on direct labor dollars.

B. If actual production overhead costs incurred in May were $10,900, calculate the applied overhead for the month. Is the applied overhead over or under absorbed? Explain.

2. Jean Doe is an attorney who has decided to leave her current employment and set up her own law practice. Her estimated monthly cost estimates are: Salary of legal secretary, $3,000; Office rent and utilities, $2,200; Other costs, $1,800. Jean would like to earn $3,500 per month. She will be able to bill 150 hours of her time each month.

A. Assuming that Jean's estimates are correct what fee per hour should she charge her clients?

B. Assume that Jean elects to charge customers $50 per hour. Ignoring Jean's earnings, what is her breakeven point?

3. Sam Student lives in an apartment off campus. On January 1st of the current year, Sam's rent is $225 per month. On March 1st his rent increases to $230 per month. Is the rent a fixed or variable cost? Explain, discuss, and/or illustrate.

4. Horwitz Manufacturing manufactures toasters. At the beginning of the current year, the only depreciable assets Horwitz owned was a machine, which was being depreciated at $12,000 per year. In July of the current year, Horwitz sold the machine, purchasing a new machine on which the annual depreciation is $14,000. For analyses prepared at the end of the current year, is the depreciation a fixed, variable, step, or mixed cost? Explain, discuss, and/or illustrate.

Reference no: EM131880920

Questions Cloud

Do you have any personal issues with these practices : Many organizations have started using behavioral targeting in order to capture your website visitor movements.

Ira invest in portfolio of common stock on nasdaq : You put $2000 at age 20 into an IRA for future retirement. Your IRA invest in a portfolio of common stock on NASDAQ.

Evaluate your implementations using provided training set : Evaluate your implementations using the provided training set and test set (mushroom.training, mushroom.test).

Bond valuation-calculate the value of the bond : Calculate the value of the bond. How does the value change if your required rate of return? (1) increases to 14 percent or? (2) decreases to 8 ?percent?

Is the applied overhead over or under absorbed : If actual production overhead costs incurred in May were $10,900, calculate the applied overhead for the month. Is the applied overhead over or under absorbed?

What major structures are included in taste organ : What major structures are included in taste organ? What are the specialized sensory receptor cells for smell

Discuss algorithms and methods introduced in the paper : What does the paper mainly talk about? Briefly discuss algorithms and methods introduced in the paper and the contribution of the paper to the literature.

Future and present value of annuity due : Future and Present Value of an Annuity Due- what is their future value if the compounding rate is 11.75 percent APR? What is the present value of this annuity?

Create your own function in c that accepts one input number : Prepare your own Function Create your own function in C that accepts one input number and returns a double number.

User Account

All Pages