While the actual processing of job 2 was not affected by

Assignment Help Finance Basics
Reference no: EM13566718

Hazell Company allocates overhead on the basis of direct labor hours. It allocates overhead costs of $4,000 to two different jobs as follows: Job 1: (10 hours) = $2,000 Job 2: (10 hours) = $2,000 Assume that, then, the production process for Job 1 was automated. Now Job 1 requires only 2 hours of direct labor but four hours of mechanical processing. As a result, total overhead increases to $6,000. Select the incorrect statement from the following.

A) While the actual processing of Job 2 was not affected by automation, it received an increase of $3,000 in its overhead allocation.

B) The increased overhead costs associated with automation should be allocated to all jobs.

C) Automation and the costing system used by the company causes the cost of Job 2 to be significantly overstated.

D) The use of machine hours as the allocation base would significantly improve the overhead cost allocations.

Reference no: EM13566718

Questions Cloud

Stock b has an expected return of 181 what is the expected : you own a portfolio of two stocks a and b. stock a is valued at 8000 and has an expected return of 13.2. stock b has
The following selected information is taken from the : the following selected information is taken from the records of beckstrom corporation.accounts payable 35000accounts
Abc has an roa of 51 percent a net profit margin of 29 : abc has an roa of 5.1 percent a net profit margin of 2.9 percent and an roe of 21.5 percent. what is the companys debt
Beginning work in process inventory on june 1 1000 : use the following data from a company using a process costing system to answer the question below. beginning work in
While the actual processing of job 2 was not affected by : hazell company allocates overhead on the basis of direct labor hours. it allocates overhead costs of 4000 to two
How does the author support his point of view what examples : please answer the following after reading the article the article
Kandris corporation had a balance in accounts receivable of : kandris corporation had a balance in accounts receivable of 600000 and a balance in allowance for doubtful accounts of
Suppose the current exchange rate for the russian ruble is : suppose the current exchange rate for the russian ruble is rub 34.50. the expected exchange rate in three years is rub
Kritzberg company sells a product at 60 per unit that has : kritzberg company sells a product at 60 per unit that has unit variable costs of 40. the companys break-even sales

Reviews

Write a Review

Finance Basics Questions & Answers

  Inflation, investment and costs

Steven & Dawn wanted to know how much it would cost to send their daughter Dawson to a private college. They have saved $20,000 to day for the purpose.

  What is the credit spread on b-rated coporate bonds

What is the price(expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rating?

  El capitan foods has a capital structure of 40 debt and 60

el capitan foods has a capital structure of 40 debt and 60 equity its tax rate is 35 and its beta leveraged is 1.15.

  What is the net income

Their net profit margin for the year was 20 percent, while the operating profit margin was 30 percent. What is the net income, EBIT ROA, ROA, and ROE?

  Describe the general findings from capital market research

describe the general findings from capital market research concerning the information content of accounting numbers and

  Computation of current yield of the bond

Computation of current yield of the bond and they pay interest annually and have a 9% coupon rate

  What is the current share price for the next three years

Janicex Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter.

  Bonn corporations bonds have a 15-year maturity a 7

bonn corporations bonds have a 15-year maturity a 7 semiannual coupon and a par value of 1000. the annual interest is 6

  What is the effective annual interest rate

Maltz Landscaping has an average collection period of 33 days for its accounts receivable. Currently, Maltz factors all of its receivables at a 5 percent discount. What is the effective annual interest rate on the financing from the factor?

  How much value did management add to stockholders

how much value did management add to stockholders' wealth during 2012? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

  Find the value of stock

McCue Mining Corporation's ore reserves are being depleted, so the corporation's sales are falling. Also, its pit is getting deeper each year, so its costs are rising.

  Description of foreign exchange

Examine the impact of the foreign exchange and derivatives markets in General Motors and countries in which General Motors is considering expansion

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd