A company that sells baking equipment

Assignment Help Accounting Basics

Reference no: EM131094913

Innen Outen is a company that sells baking equipment. It makes three different products in a single manufacturing facility. The following budgeted overhead amounts are for 2016: Indirect Labor 20,000 Supplies 15,000 Depreciation 40,000 Supervision 120,000 Insurance 30,000 Miscellaneous 12,000 Total $237,000 Innen Outen applies overhead costs to production based on direct labor hours (DLH). Their estimate for 2016 DLH is 20,000. Required: 1. Calculate the predetermined overhead rate the company will use for 2016. 2. Assume that they actually use 22,000 DLH during the year and incur $240,000 in overhead costs. Calculate the amount of overhead applied to production for the year. 3. Show calculations for the amount of overhead over- or under-applied for 2016. 4. Should Innen Outen consider changing their overhead application method at this time? Their results are fairly consistent with expectations. Explain what might lead them to consider a change.

Reference no: EM131094913

Questions Cloud

What risks do you think the project would face : Once identified, develop a communication and engagement plan for your group of stakeholders. Consider questions such as what communication tools would you use, how often would you communicate, what are the key messages you need to share, have you ..

Eliminated the need for the money markets : Explain why banks, which would seem to have a comparative advantage in gathering information, have not eliminated the need for the money markets.

Contents of the scenario by writing notes : You explain that these issues have been discussed with the entire department staff meetings. The topics of being punctual, and not abusing flexible scheduling in the department, and thought your message was clear. The employee storms out of the pe..

Used different type of hedge : Look at the JAL FX loss scenario in the Additional Text Readings where JAL lost as much or more in FX than the $800 million value of the planes it was purchasing. Then calculate JAL’s cost if it had used a different type of hedge, borrowing US $ to b..

A company that sells baking equipment : Innen Outen is a company that sells baking equipment. It makes three different products in a single manufacturing facility. The following budgeted overhead amounts are for 2016: Indirect Labor 20,000 Supplies 15,000 Depreciation 40,000 Supervision..

Determine the firm profit maximizing output and profit : A company decides to spend $2 million to promote its new line of soft drinks. Given all other things remain the same, how will this impact the level of break-even quantity of the firm? Justify your answer using the equation for breakeven quantity of ..

Concerned about the trade deficit : If we start with the premise that the US economy is a consumer driven (consumption) economy, would consumers saving their money hurt the economy? If there are more investment opportunities in the US vs other countries, doesn't this speak to the healt..

Apply one of the leadership theories : 1. Apply one of the leadership theories from the course text to the organization. Explain how the theory works and include an example. 2. Explain the effect of power and influence that leaders have on followers in the organization. Are the follow..

Calculate and interpret the values of the multiplier : Calculate and interpret the individual and combined effects of changes to X0 and M0 such that X0 = 150 and M0 = 150 and all other variables remain unchanged.

User Account

All Pages