Ix is a specialized packaging company that packages other

Assignment Help Finance Basics

Reference no: EM13394136

IPX is a specialized packaging company that packages other manufacturers' products. Other manufacturers ship their products to IPX in bulk. IPX then packages the products using high-speed, state-of-the-art packaging machines and ships the packaged products to wholesalers. A typical order involves packaging small toys in see-through plastic and cardboard containers. IPX uses a flexible budget to forecast annual plantwide overhead, which is then allocated to jobs based on machine hours. The annual flexible overhead budget is projected to be $6 million of fixed costs and $120 per machine hour. The budgeted number of machine hours for the year is 20,000. At the end of the year, 21,000 machine hours were used and actual overhead incurred was $9.14 million. A) Calculate the overhead rate set at the beginning of the year. B) Calculate the amount of over/underabsorbed overhead for the year. C) The company's policy is to write off any over/underabsorbed overhead to cost of goods sold. Will net income rise or fall this year when the over/underabsorbed overhead is written off to cost of goods sold?

Reference no: EM13394136

Questions Cloud

Calculate after tax rate of return of alternative using : the plant has accumulated savings of 60000 to acquire a new machine for quality assurance. the new quality control

Wabash bank would like to understand if there is a : 1. costco is able to keep its inventory expenditure relatively low through its management technology and cutting-edge

What can we conclude about existence of economies or : a study of 86 savings and loan associations in six northwestern states yielded thefollowing cost function c 2. 38 2.84

Tinbergen cans expects sales next year to be 50000000 : tinbergen cans expects sales next year to be 50000000. inventory and accounts receivable combined will increase 8000000

Ix is a specialized packaging company that packages other : ipx is a specialized packaging company that packages other manufacturers products. other manufacturers ship their

A proposed engineering control is expected to cut the : a proposed engineering control is expected to cut the accident rate by 40 percent for a given process that was recently

Find the difference in welfare between free trade and : your last assignment brings you to work with the government of sweden on textile markets. sweden is fully integrated

When searching for a supplier which of the following : 1.which group is experiencing the fastest population growth today?2.what is the second stage of the consumer buying

You have a product in which inventory is taken frequently : 1 in cases where demand is difficult to predict which probability models would you use so that the risk associated with

User Account

All Pages