Reamer company uses a predetermined overhead

Assignment Help Accounting Basics

Reference no: EM13320270

Reamer Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year:

Direct Materials......... $1,000

Direct labor........... 3,000

Sales Commissions......... 4,000

Salary of Production

Supervisor....................2,000

Indirect Materials.............400

Advertising Expense..........800

Rent of Factory Equipment 1,000

Reamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:

$6.80
$6.00
$3.00
$3.40

Reference no: EM13320270

Questions Cloud

Explain penaltyies that can be imposed on manager : Explain the penalty(ies) that can be imposed on a manager by the monitoring and enforcement mechanisms in place to restrict such activity.

Why are viruses difficult to remove from water supply system : Compare the relative contributions of a treated water supply and the collection, treatment and disposal of human wastes towards the control of epidemic diseases in developing countries.

Find the resultant force on the body : A body of mass 2.65 kg moves along the x-axis, and its motion is described by the equation x = 6 sin (13 t + 2), Find the resultant force on the body at t = 0.100 s

Determine the depth of flow if the flow is to be non-erosive : A trapezoidal channel is to be excavated in alluvial material on a bed slope of 1:10000. The side slopes will be 1(vertical) : 2(horizontal). Details of the bed material are as follows: Particle diameter 4 mm

Reamer company uses a predetermined overhead : Reamer Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year

Write factors of quarterly financial reports is misleading : What are two factors about quarterly financial reports that can be misleading if the analyst does not consider them when performing analysis of quarterly reports?

Obtain the tension in the rope : A 6-kg bucket of water is being pulled straight up by a string at a constant speed. What is the tension in the rope

What is the maximum height the pump can be installed : A particular mixed flow pump is operating just below the point of cavitation. The pump is sited with its intake 3 m above the water level in the reservoir and delivers 0.05 m3/s.

Types of cost are relevant to making a financial decision : All of the following types of cost are relevant to making a financial decision except: a) Opportunity Costs b) Direct Costs c) Sunk Costs d) Unavoidable Costs Production Quantity increases proportionate with: a) Sunk Costs b) Recurring Costs c) V..

User Account

All Pages