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Calculation of Material handling costs, predetermined overhead costs and account balance.
Giltronics, Inc. applies materials handling manufacturing overhead on the basis of the number of moves required. The following information is available:
Estimated
Actual
Number of Moves
2,300
2,123
Materials Handling Costs
$87,400
$87,043
1. The predetermined manufacturing overhead rate per move is:
a. $37
b. $38
c. $41
d. $42
2.A company, using the net method, purchased inventory for $3,000 and term 2/10 net 30 but did not pay the bill in time to take advantage of the discount. The cost recorded in the inventory account after this event would be?
a. $3,000
b. $2,940
c. $3,060
d. Not enough data to determine
3.Mary Fagan invested $6,500 in a bank account that pays interest at the rate of 8% compounded annually. If Fagan makes no withdrawals, the account balance after 5 years will be:
a. $9,550.45
b. $9,100.00
c. $4,423.90
d. $9,603.75
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